Malaysia rises in rank for corporate governance
PUTRAJAYA: A regional survey on corporate governance has placed Malaysia fourth out of 12 countries, up from its seventh position two years ago.
Malaysia recorded the biggest improvement among regional rivals compared to the previous biennial survey in 2016 done by CG Watch, said Finance Minister Lim Guan Eng.
“The rise further proves that the government’s continuous efforts to instil the principles of competency, accountability and transparency in its administration is bearing fruit,” he said.
CG Watch, which is a regional report comprising two surveys, is published every two years by the Asian Corporate Governance Association and CLSA Limited.
This year’s report showed Australia, Hong Kong and Singapore being ranked ahead of Malaysia.
In a statement yesterday, Lim said the ACGA had acknowledged that the 2018 improvement reflected Malaysia’s concrete moves to tackle endemic corruption issues fostered by the previous regime.
“The report also stated that the jump in Malaysia’s ranking is based on optimism over the political change in Malaysia which led to tangible improvements to enforcement and reporting.”
Aside from strong anti-corruption measures being taken, Lim said the government had adopted open tenders in its procurement process more widely.
“This has not only increased the level of transparency in the public sector, but also influenced the private sector positively.”
Lim said that Malaysia’s improved ranking in the report was just one example of how the government’s institutional reform agenda was raising Malaysia’s governance quality and contributing to fiscal sustainability.
“These institutional reforms undertaken by the government have convinced the top three rating agencies to maintain Malaysia’s sovereign credit ratings at A- or A3,” he said.
Lim said that the dramatic surge in approved foreign direct investment in manufacturing since May 2018 as reported by Malaysian Investment Development Authority was the biggest proof that the government’s plan was working.
“The government will press on with its institutional reforms to prevent widespread abuses that happened under the previous administration from repeating and to improve the economic well-being of all Malaysians,” he said.