KLSE and PwC conducted a benchmark survey in 1998 to assess the level of corporate governance in Malaysia. In part, the Corporate Governance Survey 2002 is a follow-up to the 1998 benchmark survey on the level of corporate governance in Malaysia in view of recent developments.
KLSE Executive Chairman Dato' Mohd Azlan Hashim said conducting the survey is both timely and significant given the impact of present corporate governance issues on the capital market and securities industry, internationally and nationwide.
"A significant finding of the benchmark survey in 1998 was that improved corporate governance will enhance investor confidence, whilst contributing to the competitiveness and attractiveness of our home markets.
"Whilst it is true that government, industry and market participants have worked closely together to implement good corporate governance policies and practices - it has become increasingly important to be more prepared and more vigilant in expanding the areas to improve corporate governance," he said.
Mohd Azlan said there has been no let up in the effort to continue improving the level of corporate governance by various parties in Malaysia.
"Malaysia's effort and commitment in implementing and practising good corporate governance has been recognised internationally, specifically by the Organisation of Economic Co-operation & Development Countries (OECD) and the Commonwealth Countries," he said.
Representatives from KLSE have actively participated on an on-going basis at several forums on Corporate Governance organised by OECD. Given KLSE's extensive involvement in enhancing corporate governance, Mohd Azlan has also been elected as President of the Commonwealth Association for Corporate Governance (CACG) for a one-year term 2001-2002.
CACG's mission is to promote excellence in corporate governance in Commonwealth Countries. CACG has conducted workshops in 27 commonwealth countries with programmes involving working with directors on the ground in the respective countries to create and enhance the understanding and practice of better corporate governance. PwC Executive Chairman Raja Datuk Arshad Uda said with the ever increasing focus by stakeholders of capital markets on greater transparency and accountability, corporate governance has become a more pronounced investment criterion.
"The challenges in instilling good corporate governance are not local but global.
"With today's capital markets at the leading edge of complex information technology, the effectiveness of the world's capital markets including Malaysia depends on public trust and trust depends on transparency, particularly with respect to corporate reporting aside from corporate conduct.
The ultimate responsibility for ensuring that shareholders and stakeholders receive the information they require lies with corporate executives and their Boards.
We trust the survey results will further corporate Malaysia's progress in Corporate Governance practices, " he said.
For a comprehensive overview of industry and market findings, the KLSE-PwC Corporate Governance Survey 2002 has expanded its coverage to include senior executives of public listed companies, institutional investors, industry analysts as well as independent non-executive directors. Respondent feedback to the survey is expected to be completed at the end of August. Findings from the survey are expected to be published in October 2002.
For further details on the KLSE-PwC Survey, please contact Haniza Taufik of PricewaterhouseCoopers at 603 - 2693 1077 or email: haniza.taufik@my.pwcglobal.com
