KUCHING — The Securities Commission Malaysia (SC) is proposing a two-year initiative to strengthen the competencies and accountability of company secretaries serving public-listed companies (PLCs), including the development of an industry-driven competency framework.
SC chairman Datuk Mohammad Faiz Azmi said the initiative would involve collaboration with regulators and professional bodies to enhance corporate governance standards while avoiding unnecessary regulatory duplication.
He said the proposals comprised two measures: developing a competency framework for the wider company secretarial profession and exploring minimum expectations and accountability requirements specifically for company secretaries serving PLCs.
“The first proposal is the development of an industry-driven competency framework for company secretaries,” he said in his welcoming remarks at a regulatory roundtable on strengthening the governance role of company secretaries serving PLCs here today.
Faiz said the framework would establish clearer expectations for governance knowledge, experience and professional capabilities, while supporting continuing professional development and promoting greater consistency across the profession.
To advance the initiative, the SC is proposing the establishment of a multi-stakeholder task force comprising regulators and relevant professional bodies to provide strategic direction and oversee the framework’s development over the next two years.
He said the task force had held its first meeting the previous week and would begin by studying the current situation. Detailed proposals would subsequently be shared with affected stakeholders for feedback before implementation.
The second measure would see the SC and Bursa Malaysia explore ways to establish minimum expectations and accountability requirements for company secretaries serving PLCs, potentially through Bursa Malaysia’s Listing Requirements.
Faiz stressed that the proposals were intended to complement, rather than replace, the existing regulatory framework administered by the Companies Commission of Malaysia (SSM), which remains responsible for the registration and licensing of company secretaries.
He said the SC would also work with SSM on disciplinary matters, where necessary, as part of efforts to improve accountability and governance standards.
The proposals follow a public consultation paper issued by the SC this year on strengthening Malaysia’s corporate governance ecosystem. Feedback generally supported the need to enhance company secretaries’ competencies, capabilities and professionalism, while cautioning against disproportionate measures and regulatory overlap.
Faiz said the SC would work closely with SSM, Bursa Malaysia, Bank Negara Malaysia and relevant professional bodies to develop a practical and proportionate approach.
He added that the SC was also facilitating the establishment of two professional associations — the Association of Chief Financial Officers (ACFO) and the Association of Sustainability Professionals (ASP) — to support professionals overseeing finance and sustainability functions.
The roundtable, held in conjunction with the SC’s National Sustainability Reporting Framework Kembara Borneo programme, was part of a series of engagements with regulators and professional bodies across Malaysia.
Faiz said the SC would also meet stakeholders in Sabah following the SSM Annual Dialogue in Kota Kinabalu on Oct 14, with similar engagements planned in other states.
He said strengthening company secretaries’ capabilities would contribute to stronger boards, better governance outcomes, more resilient listed companies and greater confidence in Malaysia’s capital market.
