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CORPORATE governance is about leadership, integrity, and long-term resilience, not merely compliance, Dato’ Mohammad Faiz Azmi, Chairman of the Securities Commission Malaysia (SC), told attendees at the National Corporate Governance and Sustainability Awards (NACGSA) 2025 at the Mandarin Oriental Hotel on Tuesday evening.
Opening his speech with a quote from governance expert Professor Mervyn E. King, Dato’ Faiz said:
“Governance is about leadership. A board should be a thought partner to management, not just a compliance officer.”
He stressed that effective governance begins at the top, with the board setting the tone and culture for the entire organisation.
“The first force of effective governance is self-discipline, where boards and management build culture based on values, purpose, and mission,” he said. “These awards celebrate leadership and integrity, amplifying self-discipline by recognising companies that choose to do the right thing.”
Market discipline forms the second pillar, Dato’ Faiz noted, with investors, stakeholders, and the wider ecosystem reinforcing good behaviour through scrutiny, expectations, and trust.
Highlighting the role of the Minority Shareholders Watch Group (MSWG), he said, “These NACGSA Awards matter as they strengthen market discipline by recognising boards and companies that choose good governance, not because they are compelled to but because they believe in it.”
The third force is regulatory discipline, a safety net enforcing minimum standards and accountability where serious misconduct occurs. “If the first two forces work well, visits from Bursa Malaysia or the SC become the exception rather than the norm,” he added.
Faiz linked governance with sustainability, underscoring that a long-term perspective is essential for corporate resilience. He welcomed the upcoming reporting on ISSB disclosures, noting that companies are now preparing to demonstrate their sustainability practices to stakeholders.
He also highlighted the rigorous assessment framework of NACGSA, which incorporates the ASEAN Corporate Governance Scorecard, the Malaysian Code on Corporate Governance (MCCG), and Bursa Malaysia’s sustainability reporting framework.
“Governance and sustainability are not separate checklists but central to creating durable corporate value,” he said.
The SC has been reviewing the MCCG, drawing on insights from its Corporate Governance Monitor and consultations with market participants.
“We aim to ensure governance expectations remain fit-for-purpose to support investability, board effectiveness, and confidence in Corporate Malaysia,” Dato’ Faiz explained, encouraging feedback during the consultation period ending on 13 February 2026.
Congratulating the award-winning companies, he said their achievements go beyond processes: “It is a clear commitment to boards that ask the right questions, a culture that upholds integrity, transparency that builds trust, and disclosures that are credible and decision-useful.”
He encouraged firms to use NACGSA as a reference to identify gaps, strengthen corporate behaviour, and build shareholder and stakeholder confidence.
Looking ahead, Dato’ Faiz outlined the SC’s Capital Market Masterplan (CMP) 2026-2030, which will drive corporate long-term value, integrate AI and cybersecurity considerations, and empower market entities such as MSWG to play a proactive role.
“All these efforts will deliver benefits that extend beyond individual firms to the wider capital market,” he said.
Closing his address, Dato’ Faiz emphasised that governance should not be viewed as a dry, compliance-only exercise.
“It is fundamentally about leadership, ethics, balanced decision-making, and ensuring the long-term health and legitimacy of the corporation in society,” he said, reaffirming the SC’s commitment to supporting and strengthening governance in Corporate Malaysia through regulation and collaboration with stakeholders.
He concluded by expressing appreciation to MSWG and the organisers of NACGSA 2025, wishing attendees a wonderful evening ahead. - January 21, 2026
