24-07-2025
- Business
- New Straits Times
SC to review corporate governance code under masterplan reassessment
KUALA LUMPUR: The Securities Commission (SC) will review the Malaysian Code on Corporate Governance (MCCG) this year as part of a broader reassessment under the capital market masterplan.
Conducted approximately every five years, the review aims to enhance corporate governance practices and promote sustainable financing in the capital market.
SC chairman Datuk Mohammad Faiz Azmi said the regulator will engage stakeholders through targeted consultations later this year to evaluate the current state of corporate governance and identify areas for improvement.
"This consultative approach ensures any revisions to the code remain relevant and impactful," he said, signalling a stronger stance on compliance moving forward.
"That said, I am prepared to make some of what matters in the upcoming MCCG mandatory, if we believe it will help corporates to demonstrate better governance and better results."
He said MCCG 2026 would focus on improving board quality and effectiveness and strengthening the board's role in driving long-term value creation.
Mohammad Faiz was speaking at the Asean Corporate Governance Conference 2025 here today.
He added that Malaysia is not alone in this effort, with several Asean neighbours also undertaking similar reviews.
"I understand that my peers from Asean countries, including Singapore, are embarking on similar exercises this year. This highlights a shared recognition that regulatory frameworks must continue to evolve to meet new challenges."
While alignment with global standards remains important, Mohammad Faiz stressed that there is no one-size-fits-all model for governance.
"Local relevance ensures the principles we adopt are effective, practical and transformative. Each Asean jurisdiction is unique, and codes must be tailored to reflect each country's context, market maturity and strategic priorities."
The MCCG was first introduced in the year 2000 and has been a significant tool for corporate governance reform and has influenced corporate governance practices of companies positively.
The current iteration is MCCG 2021 which had for the first time included best practices for board diversity and ESG. The next one will be issued in 2026.
