KUALA LUMPUR: The Securities Commission Malaysia (SC) has published a consultation paper seeking public feedback on proposals to further strengthen Malaysia's corporate governance ecosystem.
The regulator said the proposals include a follow-up on areas identified in the "Discussion Paper on the Corporate Governance Framework" issued in December last year, taking into account feedback and comments received.
"The consultation paper covers four key proposals aimed at strengthening accountability among key governance gatekeepers, improving governance practices and transparency by public listed companies (PLCs) and promoting market discipline through greater shareholder empowerment," it said.
It said that among the proposals was to enhance oversight of company secretaries by introducing new requirements to strengthen the quality, professionalism, and effectiveness of company secretaries in supporting boards and advising on governance matters.
SC also proposed establishing a shareholder litigation fund to provide shareholders with financial resources and legal support to pursue meritorious legal claims that are in the broader interests of shareholders and the market.
In addition, the regulator also proposed enhancing governance practices in companies with concentrated ownership, such as family-owned companies.
"The SC proposes to introduce greater guidance on governance expectations for PLCs with concentrated ownership structures, given their prominence in Malaysia's corporate landscape," it said.
It is also inviting public input on proposed expectations for board oversight of technology, including disclosures on the use and governance of technology and artificial intelligence.
SC said that the review and proposed enhancements are aligned with the Capital Market Masterplan 2026-2030, which positions market discipline as a key enabler of a strong and effective corporate governance ecosystem.
The consultation paper, available at https://www.sc.com.my/regulation/consultationpapers, is open to public feedback from today until July 31, 2026, and the SC welcomes views from PLCs, investors and industry associations. - Bernama
