Page 47 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

InTRoducTIon

Maintaining public trust and investor confidence remains a priority of the SC, as
they are important to the functioning of the capital market and the pursuit of

sustainable and inclusive growth. Key components in maintaining trust and
confidence in the capital market are the preservation of market integrity and
continuous efforts to reinforce proper standards of market conduct. In this
regard, the SC continues to take measures to maintain market integrity and

shape market conduct by (1) advocating the internalisation of corporate
governance; (2) promoting a fair and orderly market through surveillance; (3)
reinforcing good conduct through supervision; and (4) achieving credible
deterrence through enforcement actions. These are complemented by efforts to

empower investors to make informed investment decisions.

Diagram 1
IncuLcATInG Good GoVERnAncE Adoption of the MccG (as at 31 december 2018)
cuLTuRE

Promoting the internalisation of
corporate governance
153 227

Over the years, the SC has implemented several PLCs adopted the 2-tier voting PLCs adopted tenure limit
measures to strengthen the corporate governance approach to decide on the of 9 years for independent
directors with annual
framework and advocate the adoption of corporate reappointment of independent shareholders’ approval for
directors who have served
governance best practices as an integral component >12 years extension
of maintaining trust and confidence in the capital
market. The SC’s Corporate Governance Strategic
Priorities (2017-2020) aims to raise the standards
of corporate governance in the capital market;
moving beyond mere compliance. One of the key 25 24%
deliverables of the Corporate Governance Priorities PLCs adopted tenure limit of 9 of board positions are held by
(CG Priorities) was the enhanced Malaysian Code years for independent directors women (Top 100 PLCs)
without further extension
on Corporate Governance (MCCG) released in April
2017.

$
The SC has observed a deeper appreciation of
corporate governance among listed companies 131 25
including small and mid-sized companies reflected in PLCs disclosed senior PLCs disclosed detailed
their adoption of best practices recommended in the management remuneration in remuneration of senior
MCCG. bands of RM50,000 management on a named basis

PART 2 »» SHAPING MARKET CONDUCT | 37

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