Executive Chairman of Kuala Lumpur Stock Exchange Dato' Mohd Azlan Hashim said in analysing the development and achievement of listed companies on the KLSE, it is clear that the effort must be reviewed within the expectations of what investors look for.
"Among others, investors look for sustainable profitability, growth and expansion, and sizeable market capitalisation.
"In its diversity of operations and businesses, listed companies already provide a wide range of selection for investors. In achieving sustainable corporate performance, listed companies provide value for investors.
"However, in achieving sustainable profit levels, it is equally important for listed companies to continue to plan for growth and expansion and enhancing shareholding spread, thus contributing to market liquidity and maintaining investment interest, " he said.
Mohd Azlan added corporate conduct has become a key investment criteria with investors willing to pay a premium for capital issues of companies with quality track record of excellent corporate conduct.
Mohd Azlan was speaking at the KLSE Corporate Awards 2002, which honour excellence in corporate conduct for companies listed on KLSE. The occasion was graced by Prime Minister and Minister of Finance YAB Dato Seri Dr. Mahathir Mohamad. Over 600 senior representatives of listed companies and over 200 representatives of industry standards bodies and professional organisations attended the event.
Prime Minister Dato' Seri Dr. Mahathir Mohamad in his message said since its inaugural event in the year 2000, the KLSE Corporate Awards have provided a benchmark to improve the standards and quality of companies in Malaysia.
The Prime Minister said the awarding of such awards is commendable for it encourages high standards in corporate conduct, boosting investors' confidence and interest in Malaysia. This will also ensure that the Malaysian economy and corporate sector will continue to experience sustainable growth and investments.
The need for excellent standards in corporate conduct among Malaysian public listed companies is more relevant now than ever, the Prime Minister said in his message.
Mohd Azlan said just as regulators, listed companies and industry participants continue to keep the market attractive, together, they must keep the market well-regulated, together.
"In fact, change must come from within listed companies themselves.
"Listed companies must view regulations not as impediments to raising capital, but as surety to ensure capital raising is properly and appropriatetly conducted - so that investor confidence and interest can be sustained, so that further capital raisings can also succeed.
"Therefore, compliance to regulations will bring benefits all around, with investors' and shareholders' continued endorsement of capital raisings. Listed companies can then continue to raise capital efficiently and cost effectively.
"Let us all work together to make our markets more attractive, more efficient, more cost effective and secure as it can only benefit us in the longer term," he said.
On the KLSE Corporate Awards, Mohd Azlan said the awards take into account the ability of public listed companies to successfully practice high standards of corporate conduct as a mechanism of self regulation.
The awards also seek to recognise public listed companies which establish and practice a greater degree of accountability and responsibility to shareholders and investors.
