KUALA LUMPUR – Government-linked investment companies (GLICs) should reach at least 30% women representation on their boards by 2023, said Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz.
“The government has envisaged Malaysia as a high-income nation by 2025 in the 12th Malaysia Plan. To that end, organisations need to create an enabling environment that promotes equitable access to high-quality jobs and top leadership positions for all talent, regardless of gender and socio-economic background,” said Tengku Zafrul at a dialogue held by the 30% Club at the Asia School of Business here yesterday.
“Research has shown that adopting diversity policies, as well as promoting equity and inclusion will not only drive better decision-making, but also result in improved stakeholder management, which reduces key risks, and develops an entity’s resilience while also contributing to nation-building.”
The minister added that since 2020, the Finance Ministry has encouraged GLICs to show leadership on diversity, equity and inclusion (DEI) initiatives, given their pre-eminent roles in nation-building and socio-economic development.
“Representing about RM445 billion or 25% of Bursa Malaysia’s market capitalisation; directly employing 500,000 people; and with RM1.7 trillion of assets under management, GLICs will pave the way in realising the government’s objective of having 30% women representation on boards.”
Meanwhile, the Institutional Investors Council (IIC) in supporting the DEI agenda also announced that its revised Malaysian Code for Institutional Investors 2022, to be published on September 23, shall state its expectations for investee companies to comprise at least 30% women representation on their boards within a reasonable time frame of not more than three years.
IIC adviser and council member Lya Rahman said that under this revised code, investee companies of IIC members, which includes seven GLICs, must have clear policies to support the participation of at least 30% women on their boards and in senior management, and the boards must demonstrate commitment to take concrete action to implement these policies.
“Where participation of women is less than 30%, investee companies are expected to put in greater efforts to reach the target.
“Of course, the ultimate aim is to have 30% women on all public listed company boards.”
Chair of the 30% Club Malaysia and Maybank Investment Banking Group chief executive, Datuk Ami Moris, said that 30% is seen to be a pivotal milestone in achieving meaningful DEI.
She said global institutional investors are scrutinising investee boards and senior leadership for DEI outcomes, likewise ESG (environmental, social and social governance) rating providers such as Sustainalytics and MSCI.
“This is an important agenda because DEI is about winning the battle for talent to build globally competitive and highly investable companies that will add to the vibrancy of our economy and capital markets. Leadership must evolve to reflect the realities of the business environment or risk being left behind.” – The Vibes, September 3, 2022
.JPG)
