The SME Governance Working Group1 , chaired by the Securities Commission Malaysia (SC), today issued the draft Governance Code for Malaysian MSMEs for public consultation.
The development of the Code is aligned with the 12th Malaysia Plan and the National Entrepreneurship Policy 2030, which aims to improve transparency and integrity, and ensure a competitive business environment.
The SC Chairman Dato’ Seri Dr Awang Adek Hussin stressed the importance of promoting good governance practices among MSMEs, which are an integral part of the Malaysian economy. MSMEs account for 97.4% of the country’s business establishments.
“Strengthening the resilience of MSMEs through a stronger governance foundation is critical to thrive in today’s dynamic market.” he said.
Adoption of the Code by MSMEs will be voluntary, with the Code complementing other existing guidance available for MSMEs including the Simplified ESG Disclosure Guide and the ESG Quick Guide for MSMEs.
The Code focuses specifically on governance practices, including those required to ensure clear accountability for decision making in relation to the management of sustainability risks and opportunities of a company. The governance practices in the Code are recommended based on the size and business maturity spectrum of MSMEs.
The Code also aligns with the principles of the Malaysian Code on Corporate Governance (MCCG), which is aimed at listed companies.
The implementation of the Code will be led by the Malaysian Institute of Corporate Governance (MICG) together with SME Corp. Malaysia and other relevant agencies.
Interested parties and the public are invited to submit their comments on the draft Code at www.micg.org.my/msmecode before 30 April 2024. For any queries related to this consultation paper, please contact info@micg.org.my.
1 The SME Governance Working Group was formed with the support of the Ministry of Entrepreneur and Cooperative Development (MEDC) and comprises representatives from MEDC, SME Corporation Malaysia (SME Corp.) and the Malaysian Institute of Corporate Governance (MICG).
