M’sian PLC’s ACGS improves 5.4 pct to 83.58 points
KUALA LUMPUR,. The Minority Shareholders Watch Group’s (MSWG) latest corporate governance (CG) 2021 assessment showed that Malaysian public-listed companies (PLCs) have improved in the Asean CG Scorecard (ACGS), rising 5.4 per cent to 83.58 points in 2021 from 79.28 points in 2020 out of a maximum attainable score of 130 points.
The assessment is based on disclosures in the latest annual report, CG report and sustainability report for the financial year ended 30 April 2020 to 31 March 2021 of 864 companies.
Chief executive officer Devanesan Evanson said this is a commendable increase, especially when considering that PLCs encountered numerous business challenges presented by the Covid-19 pandemic.
“We are very much encouraged by the 2021 assessment results, which showed an improvement in overall CG score compared to 2020, no small feat considering the tumultuous times faced by PLCs amid Covid-19 pandemic,” he said in a statement.
Evanson said over the past five years, the PLCs have shown consistent and steady improvements in the CG Score from 62.20 points in 2017 to 83.58 points in 2021.
“The upward trend is also observed in the Top 100 PLCs and ACE Market PLCs. This steady improvement is indeed encouraging and is a testament that the ACGS is an effective tool for corporate governance reform,” he said.
He added that the consistent improvement in the average CG scores over the last five years suggested that more companies are aligning their CG best practices with international and regional best practices, beyond the requirements of national legislation as measured by the scorecard.
For 2021, 44 trophies were awarded to 34 PLCs under the Excellence Award for CG Disclosure and Industry Excellence Award for CG Disclosure.