KUALA LUMPUR, Dec 13 — The Securities Commission Malaysia (SC) is encouraged by the recognition of Malaysia’s initiatives to improve corporate governance, which was a result of the collective effort by various stakeholders.

In a statement, the capital market regulator welcomed the findings of the Corporate Governance Watch 2018 report, where Malaysia emerged as the biggest gainer moving from seventh place in 2016 to fourth this year, after Australia, Hong Kong and Singapore. 

“Corporate governance would remain a central theme and priority of the SC’s regulatory agenda, to ensure that Malaysia’s capital market continues to be recognised for standards of integrity and good conduct,” said its Chairman, Datuk Syed Zaid Albar. 

The biennial report comprises a market-ranking survey by the Asian Corporate Governance Association (ACGA) in 11 Asian countries and Australia, and a separate survey by CLSA analysts around the region on corporate governance practices among more than 1,000 firms in Asia-Pacific.

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Malaysia scored above the regional average in several areas, including the strength of its rules for corporate disclosure and governance, as well as enforcement.

It said Malaysia’s score was also the highest (tied with Australia) for quality of auditors and audit regulators.

The SC said the report recognised that regulators had taken consistent efforts in promoting company and corporate governance reforms.

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“It acknowledged the use of innovative approaches to improve corporate governance, such as the introduction of the two-tier vote for the reappointment of independent directors who have served for 12 years or more through the Malaysian Code on Corporate Governance (MCCG).

“The report also highlighted a ‘stronger enforcement culture’ seen in the rising number of charges by the SC, especially those relating to insider trading,” the regulator said.

The SC’s Audit Oversight Board was also commended as one of the region’s most effective audit regulator.

“The use of technology to enhance monitoring of corporate governance practices, which refers to the SC’s use of data analytics to monitor adoption of the MCCG by public-listed companies was also highlighted,” the commission said.

The SC planned to share its findings through the publication of a thematic report in early 2019, it added. — Bernama