FAQs
FAQs
Overview
- What is this PLCT programme?
- The PLC (public listed companies) Transformation programme is an initiative undertaken by Bursa Malaysia and supported by the Ministry of Finance to improve Corporate Malaysia’s performance across various levers and aspects.
- The programme anchors on five pillars in order for our PLCs to:
- Be Performance Driven;
- Grow as Sustainable, Socially Responsible and Ethical organisations;
- Strengthen Stakeholder Management & Investor Relations;
- Be Digitally Enabled; and
- Support Nation-Building efforts to advance the Malaysian society and economy.
- Each pillar will be covered through a digital guidebook that will be released in stages throughout 2022.
- The overall approach of this PLCT entails the principles of Information Sharing (Publications), Engagement, and Transparency. The PLCT programme serves to provide a combination of both guidelines and engagements.
- Why are we embarking on this PLCT Programme?
- To elevate the corporate performance of the PLCs listed on Bursa Malaysia.
- To strengthen the growth prospects of PLCs on Bursa Malaysia, thereby creating a more attractive marketplace for domestic and foreign investors alike.
- How long is the PLCT programme?
- It was launched on 2 March 2022 with the release of the first guidebook. Adoption of best practices and information sharing programmes will continue until 2025.
- The PLCT Programme is in line with the timeline and some of the themes under the Twelfth Malaysia Plan 2021-2025.
- What are the targeted outcomes and benefits of the PLCT programme?
- On average, we expect to see:
- An overall improvement or growth in profitability indicators among participating PLCs
- A greater engagement and transparency with shareholders as well as other key stakeholders
- An improved stakeholder management and investor relation
- An enhanced business resilience and a more sustainable business performance
- An improved attractiveness and attention by investors
- However, it is worth to note that performance of participating PLCs during and after PLCT programme is subject to various internal and external factors in their respective business contexts.
- On average, we expect to see:
- Who initiated the effort to launch this Programme?
- Bursa Malaysia mooted the idea, following analyses of our corporate landscape and engagement with stakeholders (comprising invitees from corporations, institutional investors, management consulting and auditing firms, capital market associations, etc.)
- This programme is endorsed by the Ministry of Finance.
- Who is involved in rolling out this PLCT Programme?
- Bursa Malaysia is spearheading this program.
- However, we will be engaging corporate leaders, fund managers, pension funds, investors as well as PLCs themselves in the development of the books and in promoting its adoption throughout the programme.
- The success of this programme will require cohesive efforts by both industry champions and corporate leaders.
PLC Related Questions
- Is the programme mandatory for all PLCs to participate?
- The programme is not mandatory. However, we strongly encourage all our PLCs to take this opportunity to improve their business performance over the duration of the programme and beyond. This is important not only for the company but also for the overall capital market.
- Does this programme cover both PLCs and GLCs?
- This programme is available for all Public Listed Companies, regardless of size, industry or shareholding.
- What type of support is provided by the programme to achieve the desired outcomes?
- Several key tools will be developed to facilitate PLCs’ transformation journey, which among others, will include the issuance of 5 digital guidebooks, each corresponding to the 5 pillars. The books will provide guidance, best practices and benchmarks to galvanise transformation. However, these guidelines will be non-prescriptive.
- There will be wide engagement with relevant stakeholders to ensure the digital guidebooks are effective and inclusive, and to facilitate the onboarding of PLCs.
- To promote transparency, encourage information sharing, and to drive some of the intended outcomes. Towards the 4th quarter of 2022, Bursa will require the participating PLCs to provide some basic, periodic information, to be shared on a digital dashboard.
- During the life of the programme, participating PLCs will also receive some benchmarking data from Bursa Malaysia.
- What is the cost to PLCs for participating in this programme?
- There is no charge to participate.
- The guidebooks will be made available through Bursa Malaysia website.
- Participation is not prescriptive in nature.
- However, any costs arising from PLCs’ decision to undertake initiatives, aspiring from participation in this programme – such as self-chosen paid training or advisory, investments as part of own corporate strategies or process improvements – will be borne by the participating PLCs themselves.
- What can participating PLCs expect to achieve at the end of the programme?
- Bursa Malaysia will not be dictating any targets, as these will be decided by the Board of Directors and management of the participating companies. We would, however, encourage PLCs to work towards achieving their stated headline KPIs for the benefit of their company and its shareholders.
- The PLCT programme serves to provide a combination of guidance and stakeholder engagement or tools, to help shape the desired transformation or facilitate improvements. However, it is not a magic bullet that guarantees improved performance.
- The achievement of desired outcomes will be dependent on the targets and achievements set by the individual participating PLCs, as well as the improvements in best practices that they adopt. The performance of the participating PLCs during and after the PLCT programme would also of course be subject to various internal and external factors in their respective business contexts.
- As a PLC, what does it mean to participate in the PLCT programme as well as be a PLC Champion?
- By becoming a PLCT Champion, your organisation commits to do something that can help other corporate leaders or organisations transform or improve. You can choose to be a Champion in just one specific area (e.g., investor relations) or multiple areas.
- Champions could for example provide insights by having a corporate leader engage with other corporate leaders via webinar(s) / workshop on the company’s specific area of expertise (e.g., digitalisation for improved customer experience, beginning to develop an investor relations team in a smaller PLC, understanding climate change demands etc). These workshop(s) serve as a tool for peer-group engagement, or to encourage adoption of certain best practices.
- We are very open to discuss with a particular Champion who might have their own idea on how to direct or indirectly contribute towards better corporate performance.
- Will there be any consequences if participating PLCs fail to meet their targets set out in the programme?
- No, there would be no repercussions from a regulatory perspective.
- PLCs are encouraged to disclose performance against the targets set, in the spirit of increasing transparency with shareholders as well as other key stakeholders.
- In line with the programme’s overall objective, the initiative is aimed at encouraging and assisting the PLCs to achieve better performance. It is not meant to penalise if for whatever reasons, the intended outcome is not achieved.
- Will there be any changes to the current listing obligations and other regulatory requirements for PLCs, resulting from this programme?
- No, there are no plans to revise the existing listing obligations and other regulatory requirements because of this programme.
- Nonetheless, separate from the programme, Bursa Malaysia Regulation will continue to conduct public consultation and refine relevant Listing Requirements or existing guides as and when deemed appropriate.
- We will ensure that the guidebooks published under the PLCT Programme are user-friendly and consistent with other guidance issued by Bursa Malaysia.
- What are the benefits to PLCs who join the programme?
- By participating in the programme, PLCs can:
- Join various sharing or engagement initiatives – such as online webinars or workshops by fellow corporate leaders or Champions.
- Take advantage of several benefits such as access to some data insights & information services as well as profiling avenues and opportunities to engage investors.
- By participating in the programme, PLCs can:
- Will there be any index or scoring for companies based on the framework identified in the guidelines?
- There are no plans to index/score companies that participate. Nonetheless, later in the year, we will be developing an online dashboard to broadly track and report the progress of the participating PLCs.
- The PLCT programme includes pillars or guidelines on sustainability. Does this mean the current guidelines are inadequate?
- The capital market regulators have provided various guidelines on sustainability over the years (see https://bursasustain.bursamalaysia.com/pillar-details/resources for some of them). As the expectations of investors and stakeholders on these vital areas evolve – for instance in light of the growing attention on climate change impact - the Exchange will continue to refine these guides. For instance, Bursa Malaysia released the 4th edition of the CG Guide at end 2021 and the 2nd edition of the Sustainability Reporting Guide at the end of 2018.
- The guideline books developed under PLCT programme is envisioned to focus on specific areas/aspects of sustainability, rather than the more extensive full guides. Our goal is to highlight areas/aspects requiring added attention, to drive further action and adoption by PLCs of all sizes.
Investors and Analysts Related Questions
- How can investors and analysts gain visibility to the progress and outcome of the programme?
- The 5 publications will be made available to the public via our website, book by book (once published) in 2022.
- In subsequent years, we envision having a dashboard to share high level progress on participating PLCs or the improvements/outcomes achieved from the PLCT programme.
- However, considering that the programme is not mandatory, and the transformation journey will take time, the digital dashboard will not be available at the very start of the programme.
- In the development of the guidelines, will Bursa Malaysia consider any inputs from investors and analysts?
- Certainly. As the programme is targeting to increase the overall attractiveness of our PLCs, inputs from investors are highly valued.
- We have, and will continue to seek inputs from various investor groups such as the Institutional Investors Council (IIC) Malaysia and Minority Shareholder Watchdog Group (MSWG), among others.
- Will participating PLCs continue in the development trajectory of the programme beyond 2025?
- The guidelines developed in the programme are intended to influence Board talent, corporate governance, and longer-term strategies or direction-setting of participating PLCs. Hence, we expect the efforts and outcomes driven during the programme to continue beyond 2025.
Other Questions
- Why is PLCT programme being launched now, or for the chosen time horizon?
- COVID-19 pandemic has affected many economies and businesses. As global economies begin to recover and businesses pivot and adapt from the experience during the pandemic, it is a timely call to action for our PLCs to focus on improving their performance and attractiveness.
- As PLCs are key drivers to Malaysia’s economic recovery, 2021-2025 is also the most appropriate period, coinciding with the themes and policy enablers in the Twelfth Malaysia Plan 2021-2025.
- Nonetheless, this PLCT programme will incorporate best practices that are envisaged to result in medium-to-longer term growth of companies, regardless of size or the current context of the nation’s economy.
- How is PLCT programme different from the previous GLC Transformation Programme?
- The GLC Transformation (GLCT) Programme successfully transformed the then 20 participating GLCs into stronger and more resilient companies in 2015, compared to their initial state when the programme commenced in 2004. Key highlights of the overall outcomes:
- Net profit growth of 10.2% per annum
- Market cap growth of 2.9 times
- Return on equity (ROE) growth of 11% per annum
- Total shareholder return growth of 11.1% per annum
- This PLC Transformation Programme will adopt the leading practices from the successful delivery of the GLCT programme. However, it is not prescriptive, simplified, and broadened; It will cover all public listed companies, including GLCs.
- The GLC Transformation (GLCT) Programme successfully transformed the then 20 participating GLCs into stronger and more resilient companies in 2015, compared to their initial state when the programme commenced in 2004. Key highlights of the overall outcomes:
- How is this PLCT Programme related to the PERKUKUH programme?
- Although they are different programmes, PERKUKUH and the PLCT programme are highly complementary in nature as they share a common objective of driving reform and strengthened ESG and governance.
- Whilst PERKUKUH is focused on enhancement of GLICs, a knock-on positive impact is also expected on the GLCs. For example, stimulation of new growth sectors will create enhanced business opportunities for GLCs. In addition, GLCs which represent key portfolio companies of GLICs, will also benefit from enhanced performance orientation and competitiveness as GLICs strengthen their portfolio management capabilities with improved governance and strategies.
- PERKUKUH consists of 20 key initiatives, which have been developed based on a fundamental review of the GLIC setup. This includes redefining the role of government in business; sharpening the purpose, mandate and objectives of the GLICs; as well as enhancing governance and coordination mechanisms across GLICs to drive priorities linked to the national sustainable growth agenda. The PLCT Programme is an opt-in program designed for the over 900 public listed companies on Bursa Malaysia. On the other hands, PERKUKUH is for 6 government linked investment companies (GLICs) , none of which are public listed.
- Both programmes will ultimately benefit corporate Malaysia, the investment community and the wider economy.
- Both programmes are endorsed by the Ministry of Finance.
- How much stake does the GLICs have on Bursa Malaysia?
- GLICs hold 25.7% of total market capitalisation (as at end January 2022), representing RM 445 bil in Assets Under Management (AUM) on Bursa Malaysia.
- Where can we get further information about the programme?
- All information will be made available on Bursa Malaysia’s website.
- For any other inquiry, the programme management office can be reached via [email protected].