KUALA LUMPUR (November 24): The Securities Fee Malaysia (SC) has launched the Company Governance (CG) Strategic Priorities 2021–2023 to chart the expansion path for the capital market within the subsequent 5 years and steer the capital market within the course post-Covid-19.
Govt chairman Datuk Syed Zaid Albar mentioned as the worldwide and Malaysian economies recuperate from the pandemic, it’s important to “construct again higher” capital markets and be certain that long-term financial scarring is minimised whereas present inequities and structural challenges within the financial system don’t worsen.
“These fault traces should be addressed to allow communities and social techniques to get again on their toes and companies should play their function in society, nearly as good company residents with a objective,” he mentioned when launching the CG Strategic Priorities 2021-2023 yesterday.
Syed Zaid emphasised that CG is vital within the much-needed post-pandemic atmosphere and that it may be helpful in defining the function of stakeholders inside a enterprise and making certain that when choices are made, one of the best pursuits of all stakeholders are thought-about.
Elaborating on the framework, Syed Zaid mentioned the SC’s CG Strategic Priorities 2021-2023 comprise 11 initiatives that purpose to advertise agile and accountable boards, environmental, social and company governance (ESG) and governance health at boards, investor activism and stewardship; deepening engagements with youth on CG; and widening entry to CG knowledge.
The CG Strategic Priorities construct on the SC’s earlier plan for 2017 to 2020, the place a 90 per cent implementation rating was achieved and it is a vital part of the Capital Market Masterplan 3 that was launched in September 2021.
Syed Zaid asserted that capital market readiness when it comes to ESG is now not a selection for corporations, as stakeholders have come to count on extra accountable, sustainable, and climate-conscious behaviour.
“This expectation goes to extend over time and thus, boards should be ESG-ready and recognising the necessity for them to be agile and efficient as they navigate difficult and unsure instances, the SC will implement measures to enhance board range, together with accelerating the participation of ladies on boards and in senior administration.
“Listed corporations are reminded that whereas it will likely be obligatory for boards to comprise at the least one lady director, boards ought to put in efforts to attain the goal of getting 30 per cent ladies administrators so as to additional harness the advantages of getting a various board,” he added.
At the moment, solely 162 listed corporations have at the least 30 per cent ladies on their board.
In the meantime, alongside the CG Strategic Priorities, the SC additionally launched the Company Governance Monitor 2021 report to spotlight progress made within the adoption of the 2017 version of the Malaysian Code on Company Governance.
Adoption ranges throughout the vast majority of the practices remained optimistic, with 24 out of the 36 greatest practices recording adoption ranges of at the least 90 per cent versus 23 practices in 2019.
The bottom adoption degree was for practices referring to the disclosure of senior administration remuneration the place solely 5.0 per cent of listed corporations disclose the detailed remuneration of their senior administration.
“Transparency on pay is important to advertise alignment between pay and efficiency and for shareholders to judge if the motivation construction is driving the suitable behaviour,” mentioned Syed Zaid.
The CG Monitor 2021 options three thematic essays, together with SC’s Audit Oversight Board report on the demographics of audit committees when it comes to independence, range and competence. – Bernama