Malaysian companies are being called on to adopt Integrated Reporting, as part of the Malaysian Corporate Governance Code launched today by the Securities Commission Malaysia. The International Integrated Reporting Council (IIRC) has welcomed this launch, which is an important development in a country which is using corporate reporting and governance reform to accelerate its ambition to achieve developed economy status by 2020.
Malaysia is an important member of the ASEAN economic block of ten economies in South East Asia and is increasingly viewed as a gateway to China and other leading Asian economies. Increasing numbers of Malaysian businesses are moving towards Integrated Reporting as a means of attracting capital and enhancing their communication with key stakeholders.
The Malaysian Institute of Accountants has established an Integrated Reporting Steering Committee and has developed a plan for 100 Malaysian companies to have moved towards Integrated Reporting by 2019. Already, 30 leading businesses have pledged to adopt Integrated Reporting, with Bursa Malaysia the latest to publish an integrated report in March 2017.
Integrated Reporting is increasingly becoming a principle of 21st century corporate governance, often referenced in codes as regulators seek to encourage a meaningful dialogue between businesses and investors focused on the strategic drivers of long term value creation. This endorsement of Integrated Reporting by the Securities Commission Malaysia is a further evidence of this trend.
Commenting on the release of this code Richard Howitt, CEO, IIRC said, “I am delighted that Malaysia is joining the long list of countries that recognize the very real value of businesses adopting Integrated Reporting. Developing countries around the world look to Malaysia as a prime example of how to accelerate towards becoming a fully developed economy and I urge them to follow Malaysia’s lead in using corporate governance and reporting reform to unlock new potential in the market.”
Howitt was in Malaysia in March 2017 where he met with leading Malaysian businesses, investors and regulators.