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Chief Executive Officer, Yusli Mohamed Yusoff said that the current Malaysian Corporate Governance Framework reinforces Bursa Malaysia’s commitment to continually upgrade its corporate regulatory environment in line with global best practices.
“In light of the fact that investors are willing to place significant premiums on companies with excellent corporate governance practices, Public Listed Companies should strive to improve their corporate governance practices to meet world class standards in corporate reporting, disclosure and communications.
A key foundation of governance is corporate reporting. Outside the traditional reporting model, there are positive changes occurring in corporate reporting across the globe.
“The challenge for Malaysian Public Listed Companies is to present a cohesive picture of not just their financial performance but also strategy, an overview of the market they operate in and their value creating activities.
Continued market demand for transparent communications means that Public Listed Companies need to strive for effective communication not only through annual reports but also through other channels such as investors’ briefings/forums and establishing an investors’ relations desk, in addition to their corporate announcements posted on Bursa Malaysia website and their own corporate websites.
“Above all, the challenge for corporate Malaysia is to build on the existing sound foundations of corporate governance and continue to inculcate a spirit of transparency and a culture of accountability and to develop people of integrity to ensure that Malaysia continues to have an attractive business and investment environment,” he said.
Yusli was a speaker at the ACCA Malaysia Centenary Conference – ‘Regulatory Bodies Taking the Lead’’ in Kuala Lumpur today.
“Bursa Malaysia recognizes that rules are not sufficient to instill the necessary discipline in the market place. In this respect, there is a need for strict and objective enforcement of the requirements to ensure that listed issuers stay vigilant and fulfill their obligations.
While Bursa Malaysia was only in a position to take enforcement action against the listed issuer before, now it is empowered to take enforcement action against a director who has caused, aided or abetted the breach by the listed issuer. Similarly, where an adviser breaches an obligation placed under the Listing Requirement, action can be taken against the adviser
Bursa Malaysia will continue to balance regulations with market requirements. One of the key efforts in balancing regulations with market requirements is the on-going review and enhancement of regulations in consultation with industry and market participants.
It is to be noted that in the CLSA Survey published in April 2003, it was revealed that the corporate governance environment in Malaysia improved in 2002. The Survey also stated that there were overall improvements in transparency, independence and accountability in Malaysia.
Yusli stressed that clear and structured rules alone cannot promise sustainable standards of corporate governance. What is important is the creation and maintenance of a strong culture of ethics, honesty and good sense. These attributes, for the most part, is voluntary behaviour.
