KUALA LUMPUR: The Securities Commission Malaysia (SC) will be implementing an action plan to support the National Anti-Corruption Plan (2019-2023) and to improve Malaysia’s ranking in the biennial Corporate Governance Watch survey by the Asian Corporate Governance Association.

In a statement today, the SC said the action plan was presented to the Cabinet Special Committee on Anti-Corruption (JKKMAR) chaired by Prime Minister Tun Dr Mahathir Mohamad on July 18, 2019, with several recommendations to strengthen the standards of corporate governance to prevent corruption, misconduct and fraud.

It said the committee had approved SC’s recommendations which include requiring listed companies to implement anti-corruption measures, and for the SC to develop a framework to promote the effective discharge of directors’ responsibilities.

“JKKMAR also agreed that several other measures proposed by the SC are to be discussed further with the Debt Management Office,” it added.

In view of the upcoming enforcement of the corporate liability provision under the Malaysian Anti-Corruption Commission Act 2009 in June 2020, the SC has urged listed companies to take the necessary measures to establish an effective anti-corruption framework, in line with the Guidelines on Adequate Procedures.

Based on the SC’s review as at May 31, 2019, only 59 per cent of the listed companies have an anti-corruption policy, and a majority of these policies contained gaps when compared to the Guidelines on Adequate Procedures.