SC hopes more non-PLCs will adopt governance practices

When contacted, Advancecon group chief executive officer Datuk Phum Ang Kia said it was unable to give a new date for the prospectus launch at this juncture, pending queries from the SC.

JOHOR BARU: The Securities Commission (SC) wants to engage with more non-public listed companies including state-owned enterprises to encourage them to adopt the Malaysian Code on Corporate Governance (MCCG) practices.

According to Securities Industry Development Corp (SIDC) director Salleh Hassan, by applying the practices, these companies could enhance their accountability, transparency and sustainability.

Apart from state-owned enterprises, SIDC also encourages small and medium enterprises (SMEs), mid-tier companies and licensed intermediaries to embrace the code of corporate governance.

SIDC is the training and education arm of SC for the capital market industry.

“While the MCCG is targeted at public-listed companies (PLCs), we want to work closely with the non-public listed entities,” said Hassan after holding the last leg of the roadshow on the new MCCG for some 20 directors from various PLCs in Johor.

The objective was to provide these directors with information and insights on the new code of corporate governance.

Some 100 directors from various PLCs in Kuala Lumpur, Penang, Sabah, Sarawak and Johor have attended the roadshow since the latest revision of the code of corporate governance was released on April 26.

“It will be good for non-public listed enterprises including the SMEs and mid-tiered companies to embrace the practices in their organisations, especially for those planning to go public in the future,’’ said Hassan.

MCCG, which was introduced in 2000, is a significant tool for corporate governance reform and had a positive influence on the corporate governance practices of companies.

“It was reviewed in 2007 and 2012 to ensure it remained relevant and aligned with globally recognised best practices and standards.

“There are plans to introduce corporate governance in the tertiary curriculum of both local public and private universities within the next three years,’’ he added.

Hassan noted that corporate governance course could be introduced in local universities as an elective subject for undergraduates, apart from universities that offered business management studies.

He said SIDC would approach directly the universities on the corporate governance courses and would cooperate with the Education Ministry. “It is a probably good move to start the course at university level as a way to inculcate corporate governance early among our youths,’’ said Hassan.

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