• Register
Return to: Home > News > Standards > Securities Commission Malaysia releases new code on corporate governance

Securities Commission Malaysia releases new code on corporate governance

The Malaysian Securities Commission has released the new Malaysian Code on Corporate Governance (MCCG) to strengthen corporate culture by placing greater emphasis on the internalisation of corporate governance culture, not just among listed companies, but also encouraging non-listed entities including state-owned enterprises, small and medium enterprises (SMEs) and licensed intermediaries to embrace the code.

The code is effective immediately and applies for companies reporting at year end 31 December 2017.

A key feature of the new code is the introduction of the Comprehend, Apply and Report (CARE) approach, and the shift from “comply or explain” to “apply or explain an alternative”. This is meant to encourage companies to put more thought and consideration when adopting and reporting on their corporate governance practices. 

Unlike its predecessor the new code identifies different practices and reporting expectations applying either to companies in the FTSE Bursa Malaysia Top 100 Index, or those with a market capitalisation of RM 2bn or more.

Another requirement introduced by the code is for audit committees to be made of independent directors only and the establishment of a Risk Management Committee.

“This new code is an important milestone in Malaysia’s continued journey in promoting good governance to ensure the sustainability and resilience of the capital market. It serves as a compass for boards to steer their companies forward and deepen understanding on the importance of corporate governance,” Tan Sri Ranjit Ajit Singh, Securities Commission Malaysia chairman, said.

 

Top Content

    ARGA team, assemble!

    The new top team has been named that will see in root-and-branch reform at the Financial Reporting Council (FRC) as it transforms into the Audit, Reporting and Governance Authority (ARGA). Will the new duo be as dynamic as some are hoping? Robin Amlôt reports.

    read more

    FASB: a quest for simpler standards

    FASB chair Russell Golden addressed the IMA 2019 Annual Conference and Expo at the Sheraton San Diego Hotel and Marina, California, on 18 June. IMA immediate former chair-emeritus Alex Eng acted as moderator. Joe Pickard reports.

    read more

    The future of audit, and how to get there

    Two recent reports peer into the future of the audit profession. One analyses what an audit should offer, while the other looks at how the audit process will be carried out. Robin Amlôt takes a closer look at both.

    read more

    EFAA elects new president, focuses on digital future

    EFAA’s new president, Salvador Marin, outlined his key priorities for the next two years at the organisation’s 2019 annual general meeting, while outgoing president Bodo Richardt offered advice. Robin Amlôt reports.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.