KUALA LUMPUR: Deputy Finance Minister 1 Datuk Seri Ahmad Maslan unveiled the revised G20/OECD Corporate Governance Principles – a global benchmark for legal, regulatory and institutional frameworks for corporate governance in Asia.
The revised principles aimed to address the emerging changes and challenges faced by corporations globally such as those surrounding climate change and digitalisation.
The launch took place at the Securities Commission Malaysia (SC) during the 2023 OECD-Asia Roundtable on Corporate Governance, jointly organised by the SC and the Organisation for Economic Co-operation and Development (OECD).
Ahmad Maslan said that good corporate governance, and a global agreement on the standards is critical.
“A single global standard will establish a common understanding of corporate governance and facilitate global capital flows. It provides a credible framework of rights and responsibilities supported by the rule of law and effective enforcement,” he said in his keynote speech.
Additionally, Ahmad Maslan highlighted the need for Malaysia to enhance and maintain trust among its citizens, investors, and businesses through good governance.
“Good governance is not to be trifled with. The reforms we have made, and will implement such as transparency in procurement awards and quality execution of any government business – are now the rule, rather than the exception,” he said.
He also mentioned that the Fiscal Responsibility Act, which is set to be tabled in Parliament this month, outlines fiscal management principles and standards to enhance accountability, governance, and transparency.
Other fiscal frameworks such as the Medium-Term Fiscal Framework and the Medium-Term Revenue Strategy will complement these efforts, he added.
Furthermore, the minister announced that Parliament will consider the establishment and operationalisation of Bursa Malaysia’s regulatory subsidiary (RegSub) to improve the existing corporate governance structure and address the risk pertaining to conflicts of interest.
“Establishment of the RegSub aligns with the revised G20/OECD principles, which stresses the need for a clear division of responsibilities among various authorities and for safeguards to manage potential conflicts of interest,” he said.
The SC welcomes the renewed international consensus on governance expectations as captured in the revised principles.
“It is an important instrument guiding the shape of regulatory and institutional frameworks, including Malaysia, which is already broadly aligned with the new guidance in the principles,” the SC chairman Datuk Seri Dr Awang Adek Hussin said.
In his speech at the roundtable, he emphasised that good corporate governance remains central to the SC’s regulatory priorities and is crucial for achieving sustainability goals and targets.
He also announced that as part of the SC’s sustainability efforts, a dedicated sustainability committee at the SC Board has been formed to strengthen its internal governance and oversight of sustainability-related issues.
