Kuala Lumpur, 12 January 2007

World Bank gives Malaysia full marks for disclosure and transparency of accounting standards-Minister of Finance II launches World Bank Report on the Observance of Standards and Codes (ROSC) on Corporate Governance

Malaysia scored top marks for disclosure and transparency of accounting standards in the World Bank report on the country’s observance of standards and codes in respect of corporate governance, which was launched by the Minister of Finance II, Tan Sri Nor Mohamed Yakcop in Kuala Lumpur today. The launch was co-hosted by the Securities Commission (SC) and the World Bank.

The World Bank Report on the Observance of Standards and Codes (ROSC) for Corporate Governance recognises the strategic steps taken by Malaysia since 1998 to enhance and strengthen its corporate governance framework. The report concludes that Malaysia is at a commendable stage in terms of corporate governance practices with room for continuous improvement. Malaysia also fared well in areas such as stakeholder disclosure and whistleblower protection.

The Minister of Finance II stressed that good corporate governance remains a vital ingredient in building a strong and reputable capital market, especially in today’s global economy where companies are continuously scrutinised on accountability, transparency and integrity.

“To keep up in this global race, companies must abide by global rules, and good corporate governance, benchmarked against internationally accepted practices is one such critical rule,” said Tan Sri Nor Mohamed Yakcop.

During the launch, speakers highlighted Malaysia’s achievements and challenges benchmarked against other countries within this region and the OECD Principles of Corporate Governance. The progress thus far provides a strong foundation for the next steps in the corporate governance reform agenda in Malaysia.

“The launch of the ROSC today will once again galvanise efforts and create yet another wave of momentum to embed best standards of corporate governance in Malaysia,” said Dato’ Zarinah Anwar.

Participants who attended the launch included CEOs of companies on the Kuala Lumpur Composite Index (KLCI), representatives from government agencies, leading corporate governance proponents and commentators and the diplomatic community.