Page 9 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

Driving long-term value creation Preserving trust and confidence

Moving forward, the SC aims to foster growth While the SC emphasises the need for an enabling
which is premised on long-term value creation, market environment, we are cognisant that these
with due consideration for social and measures bring both opportunities and risks. Hence,
environmental as well as financial returns. This we will heighten efforts to monitor, mitigate and
pursuit should be aligned with principles of manage risks within the capital market.
stewardship, shareholder activism and
responsible intermediation. We will continue to strengthen our proactive
approach to supervision and surveillance, which will
Given the congruence of such ideals with the see us engaging more closely and frequently with
principles of Islamic finance, where Malaysia market participants guided by forward-looking
retains global competitive advantage, the SC judgements on risks associated with their business
will intensify efforts to further expand the Islamic models, strategies and governance structures. This
capital market as well as the closely-linked will entail forming a view not just on where market
sustainable finance segment. Among others, participants are currently placed, but also where
we will continue to broaden the SRI sukuk they may be in the future given prevailing business
framework and introduce Islamic SRI positive and market trends.
screening for equity offerings. Another area
of focus will be the development of social At the same time, we will further refine our
enterprises via the waqf model, where enforcement strategy to ensure that our powers are
sustainable returns can be generated from holistically deployed against a broad range of
endowments and channelled towards financing capital market offences, thus achieving credible
socially-beneficial endeavours. deterrence. This requires our enforcement resources
to be effectively utilised with due regard for the
Given directors’ fiduciary responsibilities to drive impact of each case on a wide range of factors
corporate value creation and preservation, the SC including market integrity as well as the confidence
will collaborate with stakeholders to strengthen of market participants.
board diversity and performance. Quality of
corporate disclosure is also paramount, as issuers
should articulate how they deliver value for all Strengthening regulatory capability
their stakeholders, not just the financial market. and efficiency
In tandem, we will promote greater demand for
sustainable, long-term growth through Executing these strategies require a highly-skilled
channelled voices and shareholder activism. and motivated workforce, and the SC will continue
to invest in attracting and retaining the best talent.
We will also emphasise a culture of responsible As a statutory body, economy and efficiency govern
intermediation, where firms pursue growth that our approach to resources, and the SC continuously
is both financially profitable and instilled with a reviews its internal processes to ensure that the
sense of shared responsibility to current and organisation is efficient, effective and future-ready.
future generations. Ultimately, we want market
participants to take greater responsibility - The SC also expects no less from ourselves than we
individually and collectively - for their own do from our stakeholders, and will continue to meet
contributions to a sustainable and fair capital the same standards of integrity, professionalism,
market. transparency and accountability that we expect
from market participants.

CHAIRMAN’S MESSAGE | vii

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