Kuala Lumpur, 27 September 2012

Malaysian Corporate Governance ranking improves further in regional Corporate Governance report

Malaysia has improved its ranking in terms of corporate governance (CG) in the Asia-Pacific region by advancing to the fourth spot, two notches up from the sixth position it held in 2010, according to a regional survey on corporate governance.

The survey undertaken by the Asian Corporate Governance Association in collaboration with CLSA Asia-Pacific Markets (ACGA-CLSA) culminated in the Corporate Governance Watch 2012 Report (CG Watch). The biennial CG Watch reports on the corporate governance landscape of 11 Asian nations since 2000.

The ACGA-CLSA assessed 864 companies in this year’s survey across the Asia-Pacific region. Malaysia is among the few countries to have shown consistent increase in scores from one survey to the next. Malaysia’s assessment improved in a majority of the areas under the CG Watch 2012. The most notable area of positive progress is `CG Culture’.

“The further improvements in Malaysia’s corporate governance ranking are attributable to the collective efforts of the industry and the regulators as well as increasing awareness among companies of the importance of good CG practices. It is certainly an encouraging recognition and shows that we are moving towards the right direction in shaping a better corporate governance landscape for the country,” said Datuk Ranjit Ajit Singh, Chairman of the Securities Commission Malaysia.

The report attributed Malaysia’s improvement in CG ranking to the publication of the 5-year Corporate Governance Blueprint and recognised Malaysia as one of the few markets in Asia that undertook a major overhaul of its code of corporate governance, bringing the standards expected of boards of directors in line with international standards.