Friday 29 Mar 2024
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KUALA LUMPUR (April 26): To continue strengthening the Malaysian corporate governance system, the Securities Commission Malaysia (SC) says it will focus on advancing corporate governance priority areas over the next three years.

Strengthening corporate governance was central to the theme at this morning's launch of the newly enhanced Malaysian Code on Corporate Governance (MCCG) released by the SC.

The code is a set of best practices to strengthen corporate culture anchored on accountability and transparency, said SC chairman Tan Sri Ranjit Ajit Singh.

This is meant to encourage listed companies to put in more thought and consideration when adopting and reporting on their corporate governance practices, said Ranjit.

He added that to complement the code, further efforts will be made to support various stakeholders in order to strengthen the corporate governance ecosystem.

"The SC will establish the Institute of Corporate Directors Malaysia, to develop a pathway for professionalising directors and advocate good governance values among members.

"We will also initiate the development of a corporate governance toolkit to ease small and medium enterprises (SMEs) into embracing good governance practice," he said.

To complete the corporate governance architecture for the capital market, a corporate governance framework for licensed and registered intermediaries will be introduced to help enhance their competitiveness and enable them to access affordable external financing, lower their cost of capital and improve performance.

Gender diversity also remains a priority, said Ranjit, and the SC will collaborate with industry groups and stakeholders to increase women's participation on boards, with a target to achieve 30% women participation on boards (for top 100 companies on Bursa Malaysia).

Additionally, big data and artificial intelligence capabilities will also be deployed to strengthen corporate surveillance and enforcement of corporate governance breaches.

Furthermore, in order to support the development of future corporate leaders with high ethical standards, the SC will collaborate with tertiary institutions to introduce corporate governance in their curriculum.

 

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