9 Jan 2020
MALAYSIA: Mandatory Anti-Corruption Measures Introduced for Publicly-Listed Companies
As of 1 June 2020, all companies listed on the Main Market and the ACE Market of Bursa Malaysia, the country’s stock exchange, as well as their subsidiaries, are to be obliged to establish the anti-corruption measures detailed in Section 17A of the Malaysian Anti-Corruption Commission Act 2009.
In addition, listed companies are to be required to establish clear procedures for the reporting of corruption or other corporate transgressions, which also need to be detailed on their websites alongside information on their overall anti-corruption regime. Companies are also required to review the effectiveness of such policies and procedures at least once every three years, while also including details of any corruption risks in their annual risk assessment reviews.
The measures form part of Bursa Malaysia’s ongoing efforts to promote better corporate governance and to establish a culture of ethical behaviour within listed companies and their group entities, while also providing greater accountability and transparency for investors. The measures are also believed to be aimed at providing protection for listed companies from any corporate liability claims relating to corruption.
The new listing requirements are also in alignment with the country’s ongoing clampdown on corporate and state corruption as detailed in its National Anti-Corruption Plan 2019-2023.