AP­POINTED DI­REC­TORS ‘MUST BE COM­PE­TENT’

Bid to stop coun­try from fall­ing fur­ther in CGW rank­ings

New Straits Times - - News - MASRIWANIE MUHAMADING KUALA LUMPUR wanie@nst.com.my

THE ap­point­ment of di­rec­tors, par­tic­u­larly in gov­ern­ment-linked com­pa­nies (GLCs) should be based on com­pe­tency un­der­stand­ing and ex­pe­ri­ences on cor­po­rate gov­er­nance.

This was among the sug­ges­tions made dur­ing a round­table dis­cus­sion on the Cor­po­rate Gov­er­nance Watch (CGW) 2016 re­port held by the Malaysian In­sti­tute of In­tegrity yes­ter­day.

Malaysian In­sti­tute of In­tegrity eco­nomic in­sti­tu­tion di­rec­tor Mohd Is­mail Ab­dul Jalil said the round­table dis­cus­sion, which in­volved ex­perts in the re­lated fields, was aimed at iden­ti­fy­ing is­sues that had caused Malaysia to face a sud­den drop in the CGW 2016 re­port, and what could be done to pre­vent the coun­try from fall­ing fur­ther in the rank­ings.

“The re­port is im­por­tant as it dis­cussed the cor­po­rate gov­er­nance prac­tices in the coun­try. Should our rank­ings and scores con­tinue to drop in the CGW re­port, we may lose the con­fi­dence of our in­vestors and this would ef­fect the coun­try’s econ­omy.”

Is­mail said other sug­ges­tions mooted by the ex­perts dur­ing the two-hour dis­cus­sion was that di­rec­tors be re­quired to at­tend cour­ses on cor­po­rate gov­er­nance and that a limit should be placed on the num­ber of di­rec­tor­ship po­si­tions a per­son could be ap­pointed to, par­tic­u­larly in GLCs.

“We will look into the sug­ges­tions which we believe are valid and bring it to the agen­cies, such as the In­tegrity and Gov­er­nance Di­vi­sion, so that ac­tion can be taken.”

The CGW 2016 re­port, which fea­tured 11 Asian coun­tries and Aus­tralia as the bench­mark, was pro­duced by spon­sor CLSA in col­lab­o­ra­tion with the Asian Cor­po­rate Gov­er­nance As­so­ci­a­tion in Septem­ber.

Malaysia’s po­si­tion dropped from fourth place in 2014 to sixth place in the 2016 re­port with a 56 reg­is­tered score. It was the first time Malaysia recorded a drop in its score since 2010.

At first place was Sin­ga­pore with a 67 score, fol­lowed by Hong Kong (65), Ja­pan (63), Tai­wan (60) and Thai­land (58).

Malaysia, to­gether with China, Philip­pines and In­done­sia, had reg­is­tered a fall in rank­ings and scores. Sin­ga­pore, Ja­pan, Tai­wan, In­dia and Korea have recorded an im­prove­ment.

Mohd Is­mail Ab­dul Jalil

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