Firms still lack trans­parency, says MICG

New Straits Times - - Business - Ay­isy Yu­sof

KUALA LUMPUR: The Malaysian In­sti­tute of Cor­po­rate Gov­er­nance (MICG) said the dis­clo­sure prac­tices and lev­els of trans­parency among cor­po­rates still fall short of ex­pected stan­dards.

MICG pres­i­dent Datuk Yusli Mo­hamed Yu­soff said cor­po­rate gov­er­nance stan­dards play a piv­otal role in pro­mot­ing greater trust and ac­count­abil­ity in the cap­i­tal mar­ket.

“These stan­dards raise the ex­pec­ta­tions of public-listed com­pa­nies with re­gard to trans­par­ent and com­pre­hen­sive public re­port­ing. For trust and ac­count­abil­ity to ex­ist, there must be trans­parency,” he said af­ter launch­ing the in­au­gu­ral as­sess­ment on “Trans­parency in Cor­po­rate Re­port­ing — As­sess­ing Malaysia’s Top 100 Public Listed Com­pa­nies”, here, yes­ter­day.

The scope of the re­port cov­ered the as­sess­ment of Bursa Malaysia’s top 100 public-listed com­pa­nies by mar­ket cap­i­tal­i­sa­tion as of De­cem­ber 30 last year.

“Public sources of in­for­ma­tion in­cludes cor­po­rate web­sites, an­nual re­ports and me­dia re­port­ing among oth­ers,” said Yusli, adding that the ob­jec­tive of the re­port was to raise the bar of cor­po­rate gov­er­nance in Malaysia.

He said MICG un­der­took the study with the sup­port of the Min­is­ter in the Prime Min­is­ter’s Depart­ment re­spon­si­ble for gov­er­nance, in­tegrity and hu­man rights, to ac­cess on a larger scale the dis­clo­sure prac­tices of large Malaysian com­pa­nies.

The study re­vealed that 15 com­pa­nies scored more than 50 per cent on all three di­men­sions, 11 com­pa­nies scored full points in at least one of the three di­men­sions and 64 com­pa­nies scored less than 50 per cent over­all.

The re­port stated that on an over­all ba­sis, gov­ern­ment-linked com­pa­nies scored bet­ter, com­pared with multi­na­tional cor­po­ra­tions and fam­ily-run public-listed com­pa­nies with an av­er­age score of 5.8,5.5 and 4.1, re­spec­tively.

The Min­is­ter re­spon­si­ble for gov­er­nance, in­tegrity and hu­man rights in the Prime Min­is­ter’s Depart­ment Sen­a­tor Datuk Paul Low Seng Kuan said good gov­er­nance, in­sti­tu­tions and pro­cesses are im­por­tant for the coun­try’s eco­nomic re­silient.

“Malaysia needs to be pro­gres­sive with strong sup­port in ar­eas of po­lit­i­cal sta­bil­ity, eco­nomic growth and so­cial en­gage­ment.”

The na­tional drive to im­prove gov­er­nance and re­duce cor­rup­tion must be tack­led at the public and pri­vate sec­tors,” he said.

PIC BY ROSELA IS­MAIL

Min­is­ter in Prime Min­is­ter’s Depart­ment Datuk Paul Low Seng Kuan (sec­ond from right) with (from left) Malaysian In­sti­tute In­tegrity pres­i­dent and chief ex­ec­u­tive of­fi­cer Datuk Dr Anis Yusal Yu­soff, Malaysian In­sti­tute Cor­po­rate Gov­er­nance (MICG) deputy pres­i­dent David Berry, its pres­i­dent Datuk Yusli Mo­hamed Yu­soff and Min­is­ter in the Sarawak Chief Min­is­ter Depart­ment Datuk Talib Zulpilip at the launch of ‘Trans­parency in Cor­po­rate Re­port­ing — As­sess­ing Malaysia’s Top 100 Public-Listed Com­pa­nies’ in Kuala Lumpur yes­ter­day.

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