Page 49 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

governance excellence, the SC spearheaded the discussed were the impact of technology and
establishment of the Institute of Corporate Directors innovation on corporate governance, board practices
Malaysia (ICDM), which was officially launched by the in relation to climate-related risks and disclosures as
Minister of Finance, Lim Guan Eng on 1 October 2018. well as the use of flexibility and proportionality in
corporate governance frameworks. The Roundtable
ICDM offers an array of services including also saw the launch of the second edition of the
programmes to meet the professional development OECD Asian Equity Market Review 2018 and the
needs of directors, board effectiveness evaluations OECD Report on Flexibility and Proportionality in
and housing a registry of profiles for companies to Corporate Governance.
source for board candidates.
The SC also participated in the biennial Corporate
ICDM has also established linkages with other Governance Watch (CG Watch) regional survey
institutes of directors within the ASEAN region undertaken by the Asian Corporate Governance
and globally to facilitate greater collaboration and Association (ACGA) in collaboration with CLSA. The
knowledge sharing as well as to stay abreast of survey reviews 12 Asian markets on their standards
business and governance developments. of corporate governance in relation to seven areas
including the strength of rules and regulations,
efforts made by regulators to improve corporate
Greater involvement in international governance standards, corporate governance
efforts on corporate governance practices of listed companies and effectiveness of
audit regulation. In CG Watch 2018, Malaysia was
The SC continues to participate and contribute the biggest gainer moving from sixth (2016) to fourth
towards international efforts to advocate the position. Malaysia’s best performing category was in
adoption of corporate governance practices through relation to the role of regulators, where the consistent
its participation at the Organisation for Economic effort of regulators in promoting corporate
Co-operation and Development (OECD) Corporate governance reforms was recognised. This includes
Governance Committee (CGC). The CGC co- the use of innovative approaches to address
ordinates and guides the OECD’s work on corporate corporate governance concerns including the
governance and is responsible for the formulation two-tier voting process for the reappointment of
and implementation of the G20/OECD Principles independent directors and the use of technology to
on Corporate Governance – a globally accepted review the adoption of the MCCG. The SC’s Audit
reference point for corporate governance standards. Oversight Board was also commended as one of the
region’s most effective audit regulator.
In 2018, the SC’s participation status in the
CGC was upgraded from Invitee to Participant
in recognition of its commitment and efforts to cuLTIVATInG Good conducT
advance corporate governance standards and THRouGH SuRVEILLAncE And
Companies with at least one woman director involvement in various OECD initiatives since 2013. SuPERVISIon
Overall: 571 PLCs (70%) On 7 and 8 November 2018, the SC hosted the
– Large* PLCs: 105
– Non–large PLCs: 466 OECD Asian Roundtable on Corporate Governance Promoting fair and orderly market
(Roundtable) meeting in Kuala Lumpur, which was through surveillance
attended by over 100 regulators, investors, listed
companies and corporate governance advocates A robust and effective corporate surveillance
from across Asia to discuss the latest corporate framework is needed to promote and maintain a
governance developments. Among the issues fair, efficient, and transparent capital market.

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