Corporate Governance
Bursa Malaysia, as a front-line regulator is committed to maintaining high standards of corporate governance (CG) so as to maintain market integrity. Bursa Malaysia is continuously championing initiatives to promulgate the importance of embracing the best practices of CG with their listed issuers.
CG Initiatives
The following are key initiatives which Bursa Malaysia has undertaken to raise the standard of CG practices amongst listed issuers and to improve our international CG ratings:
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Monitoring of adherence to CG standards by:
- Performing compliance reviews of CG disclosures in annual reports Bursa Malaysia reviews the listed issuers' annual reports on CG disclosures as part of Bursa Malaysia's monitoring process. We also engage with the listed issuers on their disclosure shortcomings to ensure adequate and accurate information on their CG practices.
- Carrying out on-site examinations on selected issuers to determine substance over form issues Bursa Malaysia ascertains conformance of CG practices as disclosed or announced by listed issuers, through on-site examinations of the listed issuers which are selected based on defined indicators. Bursa Malaysia will engage with the listed issuers after the examination to ensure improvement measures and other remedial actions are undertaken.
A CG Guide to encourage boards to raise the level of CG through the structuring and implementation of sound practices and processes.
Bursa Malaysia has developed a practical guide to be used as a basic guide in familiarising the members of the board, managers and shareholders in relation to embracement of CG practices in substance. This is to assist the members to inculcate thoughtful governance practice as opposed to tick-the-box mentality in relation to embracement of CG practices.Collaboration with other organisations to enhance standards of CG amongst listed issuers
Bursa Malaysia is collaborating with other professional bodies and industry players who are instrumental in fostering best practices towards improving CG and integrity in the business community and to explore ways to enhance the standards of CG practices of our listed issuers.Efforts to raise Malaysia's CG Ratings
Bursa Malaysia's commitment to raise the CG rating on Malaysia is visible through our unceasing engagement and communication with international CG rating agencies.Engagements with institutional shareholders
Bursa Malaysia also engages on a continuous basis with local institutional investors to draw awareness on how shareholders rights can influence company behaviour. Bursa Malaysia believes that corporate Malaysia will benefit greatly when all stakeholders play their part to raise the standards of CG.