PETALING JAYA: Listed companies will be required to put in place anti-corruption measures, among other recommendations made by the Securities Commission Malaysia (SC) as part of its action plan in support of the National Anti-Corruption Plan (2019-2023) (NACP).
In a statement today, the SC said it had, on July 18, presented its action plan to the Cabinet Special Committee on Anti Corruption (JKKMAR) with recommendations to strengthen the standards of corporate governance to prevent corruption, misconduct and fraud.
“JKKMAR approved the SC’s recommendations to require listed companies to put in place anti-corruption measures, and for the SC to develop a framework to promote the effective discharge of directors’ responsibilities,” it said.
JKKMAR, which is chaired by the Prime Minister Tun Dr Mahathir Mohamad, also agreed that several other measures proposed by the SC are to be discussed further with the Debt Management Office.
“In view of the coming into force of the corporate liability provision in the Malaysian Anti-Corruption Commission Act 2009 in June 2020, the SC urges listed companies to prepare themselves and take the necessary measures to establish an effective anti-corruption framework in line with the Guidelines on Adequate Procedures,” the SC said.
Based on the SC’s review as at May 31, 2019, only 59% of listed companies have an anti-corruption policy, and majority of these policies contain gaps when compared with the Guidelines on Adequate Procedures.
The SC is implementing an action plan in support of the NACP and to improve Malaysia’s ranking in the biennial Corporate Governance Watch survey by the Asian Corporate Governance Association.
