KUALA LUMPUR (July 22): The Securities Commission Malaysia (SC) will be implementing an action plan with the main objectives of supporting the National Anti-Corruption Plan (2019-2023) (NACP) and with the view to improve Malaysia's ranking in the biennial Corporate Governance Watch survey by the Asian Corporate Governance Association.

In a statement today, the SC said it presented its action plan to the Cabinet Special Committee on Anti-Corruption (JKKMAR) chaired by the Prime Minister Tun Dr Mahathir Mohamad on July 18, with recommendations to strengthen the standards of corporate governance to prevent corruption, misconduct and fraud.

SC said JKKMAR approved its recommendations to require listed companies to put in place anti-corruption measures, and for the SC to develop a framework to promote the effective discharge of directors' responsibilities.

It said JKKMAR also agreed that several other measures proposed by the SC are to be discussed further with the Debt Management Office.

"In view of the coming into force of the corporate liability provision in the Malaysian Anti-Corruption Commission Act 2009 in June 2020, the SC urges listed companies to prepare themselves and take the necessary measures to establish an effective anti-corruption framework in line with the Guidelines on Adequate Procedures," it said.

The SC said based on its review as at May 31, 2019, only 59% of listed companies have an anti-corruption policy, and the majority of these policies contain gaps when compared to the Guidelines on Adequate Procedures.