SC, agencies create governance toolkit for SMEs to reduce supply chain risks

KUALA LUMPUR: The Securities Commission Malaysia (SC) is teaming up with relevant agencies to create a governance toolkit for small and medium-sized enterprises while Capital Markets Malaysia will issue a Simplified ESG Disclosure Guide for them.

SC chairman Datuk Seri Dr Awang Adek Hussin (pix) stated that the SC is promoting governance throughout the supply chain, with a focus on SMEs to reduce risks from supply chain vulnerabilities and disruptions.

“Support and guidance for SMEs is crucial. The SC is working closely with the relevant agencies to develop a governance toolkit for SMEs and at the end of this month, our affiliate Capital Markets Malaysia will also be issuing a Simplified ESG Disclosure Guide for SMEs,” he said in his keynote address during the 2023 OECD-Asia Roundtable on Corporate Governance, jointly organised by the SC and the Organisation for Economic Co-operation and Development (OECD).

He said this effort reflects a broader commitment to strengthening corporate governance, which, in the context of environmental, social, and governance (ESG) concerns, plays a pivotal role in identifying, managing, and holding accountable the various risks and opportunities presented to firms.

“The Revised G20/OECD Principles is a key milestone, encapsulating renewed global consensus on governance expectations, including the role of governance in supporting sustainability and resilience,” he added.

Among the priorities for the SC in the coming months is the continued promotion of board governance, emphasising board and management diversity.

“On that note, effective June this year, listed companies on Bursa Malaysia must have at least one-woman on the board – thereafter, there should be no more room for all-male boards. Companies must also work to meet the 30% target and to date, 40% have met this goal,” said Awang.

Furthermore, the SC has established a dedicated board sustainability committee to enhance internal governance and oversight of sustainability-related issues.