Securities Commission Malaysia (SC) has launched a public consultation to review the country’s corporate governance framework, aiming to strengthen board effectiveness, audit oversight, and corporate reporting standards.
Public Consultation on Corporate Governance in Malaysia
The consultation seeks feedback on whether Malaysia’s existing governance standards remain effective in today’s evolving market environment. As expectations around board accountability, risk oversight, and technology adoption increase, the SC aims to ensure corporate governance practices continue to support long-term value creation.
The review focuses on how boards and management can enhance board performance, improve decision-making, and drive sustainable growth.
Key Areas Under Review
The discussion paper identifies several critical areas for feedback:
- Board Behaviour and Effectiveness – Enhancing behavioural expectations at board level and improving agility in managing emerging risks.
- Board Composition and Independence – Evaluating strategies to strengthen board diversity, independence, and overall governance quality.
- Stakeholder Trust and Engagement – Promoting transparency through timely engagement and better access to information for shareholders and stakeholders.
- Technology Governance – Addressing emerging issues related to artificial intelligence, cybersecurity, data management, and digital ethics.
- Audit and Risk Management – Strengthening disclosure around external auditor appointments, reappointments, and audit firm tendering processes.
- Corporate Reporting Integrity – Improving shareholder engagement, the conduct of annual general meetings, and resolutions related to director appointments.
Alignment with Capital Market Masterplan 4
The consultation aligns with the upcoming Capital Market Masterplan 4, which positions corporate governance as a core driver of a resilient, inclusive, and sustainable capital market. Feedback will inform updates to the Malaysian Code on Corporate Governance (MCCG) and related frameworks, ensuring alignment with global best practices.
How to Participate
The discussion paper has been open for feedback since 12 December 2025, with comments due by 6 February 2026. Listed companies, investors, industry associations, and other market participants are encouraged to submit their views.
The full discussion paper is available on the Securities Commission Malaysia website, and inquiries can be directed to mccg@seccom.com.my.