Stop creative accounting, says Finance Minister

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KUALA LUMPUR (Dec 6): The corporate sector has been urged to practise the highest standard of corporate reporting and embrace transparency in order to rebuild good governance, international reputation and global goodwill, which would eventually gain investors’ confidence to invest in Malaysia.

Finance Minister Lim Guan Eng said transparency in corporate reporting promotes confidence and public trust in the capital market, which in turn drives dynamism and competitiveness of the country's capital markets.

“In promoting corporate governance in the private sector, the Government also needs to ‘walk the talk’ by promoting public governance as we want to restore Malaysia’s good reputation abroad to facilitate business and investments for our economy,” he said in his speech at the National Annual Corporate Report Awards (NACRA) 2018.

Lim described corporate reporting as having been “under stress” in Malaysia previously. “It is very important for us (the public and private sectors) to stop creative accounting,” he said.

NACRA 2018, co-organised by Bursa Malaysia Bhd, the Malaysian Institute of Accountants (MIA) and the Malaysian Institute of Certified Public Accountants (MICPA), aimed at promoting excellence in corporate reporting that advocated transparency.

“We are also committed towards fully implementing accrual accounting by 2021, and we have also begun to provide full disclosure of our Government finances, contrary to the previous Government’s approach of only highlighting those that it wanted the public to see and not revealing the true state of affairs,” he explained.

Lim also stressed that all parties, namely the Government, corporate sector, professional bodies like MIA and MICPA, and the people should work together to rebuild the nation.

“Only by working together can we assure a future for Malaysia that is better governed and more equitable, inclusive and sustainable,” he said.

Meanwhile, a total of 26 awards were given out at NACRA 2018, with the Most Outstanding Annual Report of the Year winners being CIMB Group Holdings Bhd (platinum), Petronas Gas Bhd (gold) and Telekom Malaysia Bhd (silver).

CIMB Group, which clinched the platinum for Most Outstanding Annual Report for the second year in a row, was also the biggest winner of the night with four awards.