SC to set up institute for corporate directors
KUALA LUMPUR: The Securities Commission (SC) will introduce the Institute of Corporate Directors Malaysia later this year, a benchmark effort to strengthen board effectiveness in listed companies.
SC chairman Tan Sri Ranjit Ajit Singh, in his keynote address on the second day of the International Corporate Governance Network’s (ICGN) principles Annual Conference 2017 here yesterday, urged businesses to prioritise value creation over short-term gains, and the latest initiative to set up such an institute would point towards this direction.
In line with the ICGN principles, he said boards of directors should consider going beyond typical business concerns in their decision-making.
“It has always been the case that businesses, large and small, bear within them the innate ability to exercise impact over a wide variety of stakeholders beyond that of shareholders,” said Ranjit.
It is high time to stress on good corporate governance as there is a trust and confidence crisis from the public arising from disparaging income inequality and surging costs of climate change, which gives way to economic nationalism and populist movements across the world.
“Against this backdrop, protectionist policies, heightened macro-policy uncertainties, geo- political conflicts, coupled with other market developments impose considerable stress on the gl o b a l ec o n o m y, in c l u d i n g emerging markets,” said Ranjit.
However, he said policymakers should recognise the nature and context in which businesses operate to bring about a better understanding in sensible corporate strategy.
Ranjit said the SC would continue with its carefully-calibrated and non-reactive approach to encourage and enforce corporate governance.
He said the SC recognised the importance of incubating good governance practices among small and medium enterprises, while continuing to leverage technology to enhance internal governance compliance and practices.
The three-day conference, hosted by Retirement Fund Inc and the Minority Shareholder Watchdog Group, gathers institutional investors from around the world to examine best practices in corporate governance obligations, policies, and processes to enhance overall financial market stability and economic growth.
It features speakers from renowned corporate governance champions, including Khazanah Nasional Bhd, Employees Provident Fund, the SC, CIMB Group and institutional investors from the United States, South Korea, Japan and Australia. Ooi Tee Ching