Kuala Lumpur, 21 January 2018
Positive Progress Made on Gender Diversity
In the Malaysian Code on Corporate Governance (MCCG) released on 26 April 2017, companies are required to disclose their gender diversity policy, targets and measures. In addition, Large Companies as defined in the MCCG are also expected to have at least 30% women directors on their board. In this regard, promoting gender diversity on boards of listed companies remains a priority of the Securities Commission Malaysia (SC). This dovetails with the launching of Women Empowerment Year 2018 by the Malaysian government recently.
As at 31 December 2017, 19.2% of board seats on the top 100 listed companies on Bursa Malaysia (top 100 companies) were occupied by women; up from 16.6% as at 31 December 2016.
During the launch of the MCCG in April last year, the SC also set a target to have no all-male boards on the top 100 companies by the end of 2018. As at 17 January 2018 there are only seven companies with all-male boards, a 65% improvement from 20 companies as at 31 December 2016.
The seven remaining companies are Affin Holdings Bhd, Alliance Bank Bhd, Batu Kawan Bhd, Fraser & Neave Holdings Bhd, Genting Plantations Bhd, Genting Malaysia Bhd, and UOA Development Bhd. The SC and the 30% Club Malaysia have actively engaged these companies. The SC understands that some of these companies are taking steps to identify suitable candidates to secure women participation on their boards. Fraser & Neave will be nominating two women candidates to be appointed as board members in their upcoming annual general meeting.
Moving forward, SC will review and analyse corporate governance disclosures to monitor the level of implementation of CG practices including gender diversity. These observations will be published by the SC through periodic corporate governance thematic reports.
SECURITIES COMMISSION MALAYSIA