Governance Briefing — March 22, 2024
Malaysia refreshed its Corporate Governance Code, tightening director tenure limits, sustainability assurance, and stakeholder engagement expectations for listed issuers and large companies.
Executive briefing: The Securities Commission Malaysia issued the Malaysian Code on Corporate Governance (MCCG) 2024 on 22 March 2024. The update raises board independence standards, strengthens sustainability governance, and codifies stakeholder engagement disclosures for Main and ACE Market issuers.
Key governance signals
- Director tenure caps. The Code recommends a 12-year cumulative limit for independent directors with mandatory two-tier votes to retain longer-tenured members.
- Sustainability oversight. Boards must integrate climate and biodiversity considerations into risk management, designate qualified sustainability leads, and describe assurance scopes.
- Stakeholder disclosure. Issuers should publish board-approved engagement plans covering investors, employees, supply chains, and affected communities.
Action checklist
- Conduct a board skills and tenure review to identify independent directors approaching the 12-year limit and plan succession or two-tier voting.
- Embed sustainability metrics and assurance coverage into audit committee charters, ensuring alignment with Bursa Malaysia Listing Requirements.
- Draft stakeholder engagement policy summaries and evidence board oversight of consultations, feedback loops, and grievance channels.
Sources
Zeph Tech advises Malaysian issuers on independence rotations, sustainability assurance programs, and stakeholder reporting workflows demanded by MCCG 2024.