STRONGER professional competencies, clearer accountability and tighter coordination among regulators are central to a Securities Commission Malaysia (SC) initiative to improve corporate governance at public-listed companies over the next two years.
SC chairman Datuk Mohammad Faiz Azmi said the regulator was exploring measures to raise standards for company secretaries, whose role in advising boards and supporting sound decision-making has become increasingly important amid growing business complexity and stakeholder scrutiny.
The proposals comprise an industry-driven competency framework for the wider company secretarial profession and an examination of minimum expectations and accountability requirements specifically for those serving public-listed companies (PLCs).
“Stronger boards require strong governance professionals,” he said at the recent SC’s Regulatory Roundtable on Strengthening the Governance Role of Company Secretaries Serving Public Listed Companies in Kuching.
Faiz said the SC’s public consultation on strengthening Malaysia’s corporate governance ecosystem had received general support for improving company secretaries’ competencies, capabilities and professionalism.
However, he said reforms must be proportionate and avoid duplicating existing regulatory requirements.
“The proposed competency framework would set clearer expectations for governance knowledge, professional experience and capabilities, while promoting continuing professional development and greater consistency across the profession.”
To guide its development, the SC is proposing a task force involving regulators and professional bodies, with work expected to span two years. The task force held its first meeting last week and will begin by assessing the profession’s current position before detailed proposals are presented for consultation.
The SC and Bursa Malaysia are also exploring whether minimum standards and accountability requirements for company secretaries serving PLCs should be incorporated into Bursa’s Listing Requirements.
Faiz stressed that the proposals remained under consideration and would be subject to stakeholder engagement before any implementation.
Regulatory coordination is another key element of the initiative. The SC intends to work with the Companies Commission of Malaysia (SSM), Bursa Malaysia, Bank Negara Malaysia and relevant professional bodies to strengthen governance without creating overlapping rules.
“The registration and licensing of company secretaries remains under SSM’s purview. Our proposals are intended to complement that framework by addressing the specific governance expectations placed on company secretaries,” Faiz said.
The SC would also work with SSM on disciplinary matters where necessary.
Faiz added corporate governance depended on the combined contribution of boards, regulators and professionals across areas including auditing, accounting, sustainability, human resources and information technology.
The SC is also facilitating the establishment of the Association of Chief Financial Officers and the Association of Sustainability Professionals to strengthen expertise in finance and sustainability functions.
He said improving the capabilities of governance professionals would help boards respond to emerging risks, including artificial intelligence, geopolitical uncertainty and evolving sustainability expectations, while strengthening corporate resilience and confidence in Malaysia’s capital market.
The roundtable was held in conjunction with the SC’s National Sustainability Reporting Framework Kembara Borneo programme. The SC plans further engagements with stakeholders in Sabah and other states. - October 13, 2026
