KUALA LUMPUR: The Institute of Corporate Directors Malaysia (ICDM) wants company directors and boards to be more than mere corporate figureheads ahead of the introduction of a formalised director certification framework to advance the professionalisation of boards.
The institute encourages corporate directors to discard outdated mindsets, relearn what the future demands and embrace innovation with courage and a relentless commitment to board excellence and their continuous development.
It also emphasises the importance of the coming launch of a national Professional Directors Certification Framework (PDCF) this year, a new benchmark for board directors.
The PDCF is a structured, competency-based pathway for directors and the industry, globally aligned with a benchmarked baseline qualification. This aligns with the roadmap set out by the Securities Commission Malaysia to achieve a resilient and high-performing capital market.
ICDM president and CEO Michele Kythe Lim stated that, at present, anyone can be selected as a board member, and there are no specific qualifications required.
“We want to raise the standard and improve governance while supporting the Securities Commission’s priority in the capital market to increase returns. If you’re a better governing board with a better-run company, you’d have better profits and returns in the capital market.
“That’s our intention, and we are supporting this as well,“ she said after the institute’s 8th annual general meeting held recently.
ICDM is Malaysia’s national institute of directors dedicated to strengthening corporate governance and board effectiveness through world-class director development and advisory services.
Lim said the new national set of standards aims to significantly accelerate the growth of a diverse and qualified talent pool of directors across both the public and private sectors, as well as government-linked boards, to help companies achieve optimal board composition from the outset.
She added that it is important to ensure board members of companies are chosen fairly based on a qualified and fixed standard that allows them to contribute to the company well.
Lim said ICDM has grown considerably over the past year, with its overall revenue increasing 53%, its Leading for Impact Programme’s revenue rising by 172%, and Aspiring Directors Immersion Programme’s revenue increasing by 211%.
“Our directors’ registry also features 1,264 prescreened, board-ready candidates who can take up the role of board member,“ she added.
Lim emphasised that the future of an organisation depends on the precise and integral leadership of boards and directors.
“Therefore, they must champion governance, accountability, and performance standards with the same rigour they demand from the companies they oversee. As the national institute of directors, we are committed to these standards, a commitment proven by an independent Board and Director Effectiveness Evaluation of our own board, which reaffirmed our strengths,“ she said.
ICDM executive vice-president and succeeding president and CEO Jackie Mah said it is rewarding to see members appreciate the projects and initiatives that they have taken on, particularly to engage members more holistically.
“We’ve grown our member base from a small base to up to 1,500 last year,“ she said. “Members were satisfied and happy with development training that we do as well as our advisory support and they really felt that we have set up an ecosystem to help directors progress to the next level.”
Mah said ICDM has delivered over 500 programmes and trained more than 30,000 directors.
“Just as we hold employees of organisations to certain standards and evaluate them with clear key performance indicators, boards and directors should also have mechanisms in place to evaluate their performance and development.”
“The PCDF is not just a certification – it is a commitment to ensuring exemplary standards and quality of leadership among directors across the public and private sectors to meet rigorous, clearly defined benchmarks,“ Mah said.
