Institutional investors encouraged to adopt 2014 M'sian code

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KUALA LUMPUR (June 27): Institutional investors are encouraged to be signatories and adopt the principles of the Malaysian Code for Institutional Investors 2014, for better governance and long-term sustainability of their investee companies.

Minority Shareholder Watchdog Group (MSWG) chief executive officer, Rita Benoy Bushon, said being signatories would enable the investors to have a cohesive voice in engaging companies on issues such as board governance and accountability, as well as transparency and sustainability.

"There are about six principles in the code and most of them are universal. I think it will not be difficult for them (institutional investors) to adhere to those principles," she said.

She was speaking to reporters, after the launch of the code at the Securities Commission Malaysia, here today.

Bushon said that it was not compulsory to be signatories.

Securities Commission Malaysia chairman, Datuk Ranjit Ajit Singh, said the formulation of a new industry-driven code would strengthen the accountability of institutional investors to their own members and investors.

"The new code will require institutional investors to explain how corporate governance has been adopted as an investment criteria and the measures they have taken to influence, guide and monitor investee companies.

"It is also important for institutional investors to include governance analyses in their investment appraisals, to help identify better-governed companies," he said.

The code was jointly launched by the SC and MSWG today.