Securities Commission Malaysia has published a consultation paper proposing further changes to Malaysia’s corporate governance framework. The package follows areas raised in its December discussion paper and is aimed at strengthening accountability among governance gatekeepers, improving governance practices and transparency at public listed companies, and increasing market discipline through stronger shareholder empowerment. The proposals cover four main areas. First, the commission would introduce new requirements for company secretaries to strengthen their quality, professionalism and effectiveness in supporting boards and advising on governance matters. Second, it proposes a shareholder litigation fund to give shareholders financial resources and legal support to pursue meritorious claims that are in the broader interests of shareholders and the market. Third, it would provide greater guidance on governance expectations for public listed companies with concentrated ownership structures, including family-owned companies. Fourth, it is seeking feedback on board oversight of technology, including disclosures on the use and governance of technology and artificial intelligence. The review and proposed enhancements are aligned with the Capital Market Masterplan 2026-2030. The consultation is open for feedback until 31 July 2026.
Malaysia Securities Commission2026-07-03
Securities Commission Malaysia launches consultation on corporate governance reforms including shareholder litigation fund and technology oversight
Securities Commission Malaysia has launched a consultation on reforms to strengthen Malaysia’s corporate governance framework. The proposals would tighten requirements for company secretaries, create a shareholder litigation fund, set clearer governance expectations for companies with concentrated ownership, and clarify board oversight and disclosure expectations for technology and artificial intelligence. Feedback is open until 31 July 2026.