This article first appeared in The Edge Financial Daily on October 2, 2018

KUALA LUMPUR: The Securities Commission Malaysia (SC) yesterday introduced the Institute of Corporate Directors Malaysia (ICDM), a dedicated body established to enhance the professionalism and effectiveness of corporate directors in the country.

The main objective of the new institute, launched by Finance Minister Lim Guan Eng, is to promote excellence, integrity and the highest level of skills and professional competence among Malaysian corporate directors, the SC said in a statement.

Formed by directors for the benefit of directors, it also aims to advocate the adoption and application of corporate governance practices, besides representing the interest of its members, said the SC.

“Recognising that better boards will create better values, the establishment of ICDM will add to the already rich and diverse corporate governance ecosystem to enhance director effectiveness and board leadership in Malaysia,” said SC chairman Tan Sri Ranjit Ajit Singh.

ICDM’s establishment was spearheaded by the SC as part of its corporate governance strategic priorities (2017 to 2020), and is supported by Bank Negara Malaysia (BNM) and Bursa Malaysia.

ICDM’s inaugural board will be led by Tan Sri Zarinah Anwar as chairman, with the help of a professional management team.

Its focus, said the SC, will be on building a sustainable pipeline of directors through education programmes equipping directors with essential skills to serve on listed boards. The new institute will also maintain a directors’ registry to provide director-sourcing services to companies so that succession planning is competency-based.

“ICDM is a one-stop centre that caters for all boards and directors’ needs, offering services designed to enhance board and director effectiveness,” said Zarinah.