PETALING JAYA: Securities Commission Malaysia (SC) has published a consultation paper to seek public feedback on proposals to strengthen Malaysia’s corporate governance ecosystem.
The proposals include a follow-up on areas discussed in the discussion paper on the corporate governance framework issued in December last year, incorporating the feedback and comments received.
The consultation paper covers four key proposals aimed at strengthening accountability among key governance gatekeepers, improving governance practices and transparency by public-listed companies and promoting market discipline through greater shareholder empowerment.
First, to enhance oversight of company secretaries, the SC proposes introducing new requirements to strengthen the quality, professionalism and effectiveness of company secretaries in supporting boards and advising on governance matters.
Second, to enhance shareholder activism by providing shareholders with access to financial resources and legal support to pursue meritorious legal claims that serve the broader interests of shareholders and the market.
Third, to enhance governance practices in companies with concentrated ownership, such as family-owned companies, the SC proposes introducing greater guidance on governance expectations for public-listed companies with concentrated ownership structures, given their prominence in Malaysia’s corporate landscape.
The SC also seeks feedback on proposed expectations for board oversight of technology, including disclosures on the use and governance of technology and artificial intelligence.
The SC, in a statement, said the review and proposed enhancements align with the Capital Market Masterplan 2026-2030, which continues to position market discipline as a key enabler of a strong and effective corporate governance ecosystem.
The SC welcomes views from a wide range of stakeholders, including public listed companies, investors and industry associations.
The consultation paper is open for feedback until July 31.
