Bursa to engage the industry again on proposed interim reporting framework

KUALA LUMPUR: Bursa Malaysia will engage the industry again on the proposed quarterly reporting (QR) framework for Malaysian listed issuers via a public consultation.

On September 28, 2018, it had issued a public consultation paper to gauge stakeholders’ preference on the interim financial reporting framework in the country.

“The sought feedback on various issues which include the QR is still relevant in the Malaysian context and Malaysia’s market is ready to move towards a less frequent reporting regime.

“The exchange received many written responses from the industry, including the listed issuers. Presently, we are analysing the industry feedback before finalising our proposals,” the exchange said in a statement.

Bursa Malaysia said the current review of the interim financial reporting framework is part of the exchange’s continuing review of its rule framework to ensure that its rules remain relevant, effective and benchmarked with international standards while safeguarding investor protection.

“We are always mindful that our rules remain balanced, not overly burdensome and promote ease of doing businesses and growth of our listed issuers”.

The QR framework was first introduced by the exchange in 1999, aimed at providing a more regular update relating to the financial condition of listed issuers and restoring investors’ confidence in the aftermath of the Asian financial crisis.

It was subsequently reviewed in 2013, pursuant to an industry task force set up under the recommendation of the Corporate Governance Blueprint on July 8, 2011.

Following that, the exchange issued a Consultation Paper No. 1/2013 entitled “Proposed Review of Timeframe for Issuance of Financial Statements and Annual Reports by Listed Issuers” on May 31, 2013, which discussed, amongst others, the merits of and criticisms against QRs.

It was decided then that QRs were still relevant and required by investors and that frequent periodic financial reporting would promote better corporate governance and transparency in the market place.

Since then, the topic on QR continues to generate interest and debate globally, particularly in terms of its merits.

Bursa Malaysia has 790 companies listed on the Main Market and 129 on the ACE Market, as well as 30 companies on the LEAP (Leading Entrepreneur Accelerator Platform) Market.

Last week, Singapore Exchange announced that it is going to drop the QR and move to half-year and full-year reporting in line with other major markets like London and Hong Kong, as the procedure could help save time and cut compliance costs. - BERNAMA