SC Releases Corporate Governance Monitor, Highlights Progress By PLCs

KUALA LUMPUR, Nov 14 (Bernama) -- The Securities Commission Malaysia (SC) today released the Corporate Governance Monitor 2025 (CG Monitor) report, highlighting continued progress in the adoption of the Malaysian Code on Corporate Governance (MCCG) by public-listed companies (PLCs).

In a statement today, it said the CG Monitor provides data-driven insights to guide targeted interventions and inform policy enhancements ahead of the upcoming MCCG revision.

“The SC will revise the MCCG, which was last updated in 2021, as planned next year,” it said.

The SC said that among the key findings from the CG Monitor are strong adoption levels, which remained positive with 33 out of the 48 best practices recording adoption levels of at least 90 per cent (2024: 30 practices).

“Board governance showed notable improvements, including a declining trend of board chairmen serving on board committees.

“Currently, 73 per cent of PLCs no longer have their board chairmen sitting on board committees (2024: 63 per cent), reflecting stronger checks and balances and efforts to mitigate self-review risk,” it said. 

Among others, the CG Monitor shows progress on board diversity, with women now making up 34.1 per cent of directors among the top 100 PLCs and 28.7 per cent across all PLCs.

“However, only 45 per cent of total PLCs have achieved at least 30 per cent women representation on their boards.

“On executive remuneration disclosure, only five per cent of PLCs disclose the detailed remuneration of their senior management,” it said.

SC chairman Datuk Mohammad Faiz Azmi said value creation remains the ultimate objective of good corporate governance.

“As companies advance to new frontiers, boards are increasingly expected to embed future-oriented priorities such as digital transformation, artificial intelligence governance and cybersecurity into their oversight.

“Crucially, technology choices today carry strategic, ethical and accountability implications, requiring boards’ attention that extends well beyond a traditional information technology lens,” he said.

The SC said that insights from the CG Monitor 2025 will also guide the proposed revisions to the MCCG. 

“The revisions are aimed at strengthening key areas such as board leadership and effectiveness, technology governance, risk oversight and stakeholder engagement,” it added.

-- BERNAMA