KUALA LUMPUR (April 29): The board of directors at Bursa Malaysia today said the reputation and integrity of Bursa as the market operator of the local stock exchange has always been its utmost priority.
Hence, the board is always mindful to ensure that the group's governance structure remains effective and efficient in the best interest of the Malaysian capital market and its stakeholders, it said in a stock exchange filing today.
"Towards this end, Bursa Malaysia has always engaged with its relevant stakeholders, including the Securities Commission Malaysia, to provide feedback or updates on governance practices and other relevant matters relating to the capital market and will continue to do so on a regular basis.
"The board would like to reaffirm our common objectives with our stakeholders in ensuring the orderly functioning, good governance and stability of Malaysia’s capital markets, particularly at a time of unprecedented pressures to markets, both in Malaysia and globally," it said.
The announcement, it said, was made in relation to the various articles that had been published in the media recently about governance issues at Bursa and its board of directors.
On April 16, The Edge Financial Daily reported that Datuk Shireen Ann Zaharah Muhiudeen had been asked to vacate her post as chairman of Bursa Malaysia over governance issues. Quoting the Securities Commission Malaysia, the publication wrote that Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz had decided to revoke Shireen's appointment after consulting with the SC.
Shireen was appointed to her current post on March 1 last year, replacing Tan Sri Amirsham A Aziz, who held the position for nearly four years since 2015.
Subsequently, on April 20, Starbiz reported, citing an email to SC's board members by chairman Datuk Syed Zaid Albar, that the SC had observed some governance lapses in Bursa Malaysia towards the end of last year and the first quarter of this year. In particular, the report noted that both the SC and the Ministry of Finance had received a letter from Bursa attaching political approval for the appointment of new directors to its board, and how Syed Zaid said such conduct was viewed as a serious breach of good corporate governance.
Tan Sri Abdul Wahid Omar has since been appointed to succeed Shireen.
Abdul Wahid, who previously chaired Malaysia's largest fund management company Permodalan Nasional Bhd from August 2016 to June 2018, has extensive corporate experience from leading major organisations like Malayan Banking Bhd, Telekom Malaysia Bhd and UEM Group. His appointment will take effect this Friday (May 1).