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Executive Chairman of Kuala Lumpur Stock Exchange Berhad (KLSE Bhd) Dato' Mohd Azlan Hashim said Malaysian public listed companies have certainly progressed to be more aware of, and have adopted to a large extent corporate governance principles.
"For those that have, they can already see that better governance brings value to the company and in turn the national economy and the country.
"On another note, we are delighted that despite the difficulty and challenges of the past four years, our markets continued to function and fullfill its responsibilities, both as infrastructure provider and market regulator. There has been continued interest by companies to list and by investors to invest.
"We must commend the contribution of Malaysian public listed companies in broadening and deepening the stockmarket," he said.
Mohd Azlan added even within the short period of time since the inception of the KLSE Corporate Awards in the year 2000, there were 795 listed companies - today, there are 914 listed companies. In 2000, total market capitalisation was RM444 billion, today it is over RM 660 billion whilst the KLSE Composite Index index closed the year 2000 at 680 points - today, the index is over 800 points.
Mohd Azlan was speaking at the KLSE Corporate Awards 2003, an annual event held to honour excellent corporate conduct amongst Malaysian public listed companies. The ceremony was officiated by YB Tan Sri Nor Mohamed Yakcop, Minister of Finance II on behalf of YAB Dato' Seri Abdullah Ahmad Badawi, Prime Minister of Malaysia and Minister of Finance.
The KLSE Corporate Awards 2003 has been expanded from the original three categories - the KLSE Corporate Excellence Awards, the KLSE Sectoral Awards and the Merit Awards.
The KLSE Corporate Excellence Award will honour the top two companies from the Main Board and the top two companies from the Second Board. The KLSE Corporate Sectoral Award honours the top company from each of the eleven Main Board sectors and the five Second Board sectors.
The KLSE Corporate Merit Awards are given to the first and second runner-up companies in each sector, after the determination of the KLSE Corporate Sectoral Award winners, provided these companies have met the minimum adjudication criteria.
Commencing with the KLSE Corporate Awards 2003, two new awards have been introduced - the Best Disclosure in Annual Reports Awards and the KLSE Corporate Awards for MESDAQ Market.
The Best Disclosure in Annual Reports Awards recognises the level of corporate disclosure in annual reports by public listed companies whilst the KLSE Corporate Award for MESDAQ Market is for the MESDAQ market company which has met the minimum adjudication criteria.
Mohd Azlan said the KLSE Corporate Awards recognise the sought after character traits of a company, premised on transparency, sound management, corporate disclosure and market best practice.
"These awards pay tribute to outstanding companies that have demonstrated exemplary conduct in complying not only to the letter but the spirit of requirements and regulations.
"Clear and structured rules alone cannot promise sustainable standards of corporate governance. Regulators, such as the Securities Commission and KLSE Bhd can only guide this effort, whilst the practitioners themselves need to apply the principles, on a without fear or favour basis.
"What is important is the creation and maintenance of a strong culture of ethics, integrity and good sense. These attributes, for the most part, are voluntary behaviour," he said.
At the KLSE Corporate Awards 2003, KLSE Bhd also launched its new logo following the successful demutualization of the exchange and its conversion to a public listed company on 5 January 2004. The new logo will come into effect immediately, whilst the interim names announced on 5 January 2004 - KLSE Bhd for the exchange holding company and Malaysia Securities Exchange Berhad - for the operating stock exchange will still be used until further notice.
Mohd Azlan said notwithstanding the transformation and changes, the demutualised KLSE Bhd will continue to align its business strategies with the country's economic policies.
"In respect of its regulatory responsibilities, going forward, KLSE Bhd will continue to assess itself to ensure regulations and services provided meet the needs of market participants.
"Market infrastructure too will be subject to constant review to assess its capabilities and capacities to fullfill market requirements.
"With the aim of striking a balance between regulatory, public interest and commercial objectives, KLSE as a public company will enhance its role in the development of Malaysia as an attractive fund raising and investment centre - efficient, cost effective and internationally competitive," he said.
