Malaysia's Corporate Ranking Shows Reforms Gaining Recognition

By Rosemarie Khoo Mohd Sani KUALA LUMPUR, Dec 12 (Bernama) -- The recently released 2018 CG Watch Report, which put Malaysia fourth out of 12 Asia-Pacific economies in terms of market accountability and transparency, shows that the country is being acknowledged for its institutional reforms, says an economist. Sunway University Business School Economics Professor Dr Yeah Kim Leng said the rise in the CG Watch Report ranking has added to the list of global indicators that the country will show a sharp improvement in competency, accountability and transparency. “It is very encouraging that Malaysia’s institutional reforms and focus on strengthening governance, integrity and transparency are gaining recognition following actions taken to stamp out corruption and abuse of power and to restore fiscal discipline and trust,” Yeah told Bernama. The report, jointly published by the Asian Corporate Governance Association (ACGA) and CLSA in December, noted a significant improvement for Malaysia from seventh place in 2016 when the report was previously published. This means Malaysia had the biggest market movements in 2018 among regional rivals that include Australia, Hong Kong and Singapore. The CLSA Company Survey Findings also disclosed that aggregate company scores moved most significantly for Malaysia, with improvements in the enforcement sub-category and optimism about political change driving scores up seven per cent from 2016. CLSA said the market ranking methodology structure for the ninth version was reorganised from five thematic categories to seven categories based mainly around key stakeholder groups. A new and more rigorous six-point scoring system has replaced the earlier five-point system. ACGA is an independent, non-profit membership organisation dedicated to promoting long-term and substantive improvements in corporate governance in Asia through research, advocacy and education. CLSA is Asia’s leading capital markets and investment group, providing global investors with insights, liquidity and capital to drive their investment strategies. -- BERNAMA