KUALA LUMPUR — Corporate governance must go beyond compliance and serve as a driver of better decision-making, resilience and long-term value creation, Securities Commission Malaysia (SC) chairman Datuk Mohammad Faiz Azmi said today.
He said while Malaysia had more laws, regulations, disclosures, oversight and board scrutiny than ever before, governance failures and misconduct continued to occur, highlighting the importance of values, integrity and sound judgement.
“Ultimately, governance is not just about structures, rules, policies or disclosures alone. These are indispensable but they are only enablers.
“Fundamentally, it is about having the values that you hold and the courage to make the right decisions,” he said in his opening keynote address at the CGI Global Governance Summit 2026 here.
Themed “Governance, Sustainability & Value Creation”, the summit brings together governance professionals, board leaders and policymakers.
Datuk Mohammad Faiz said boards today operate in an increasingly complex environment shaped by technological disruption, artificial intelligence, evolving sustainability expectations, geopolitical uncertainty and more demanding stakeholders.
He said issues once regarded as peripheral to corporate strategy were increasingly becoming central to boardroom discussions, requiring companies to anticipate future risks and opportunities while continuing to create sustainable value.
“Governance must go further than building strong systems and effective controls. For many years, governance discussions have understandably focused on preventing corporate failure, and rightly so.
“Moving forward, it must also enable organisations to make better decisions amid uncertain and evolving circumstances and ultimately be able to deliver long-term value,” he said.
He said investors and stakeholders increasingly expected boards not only to safeguard value but also to demonstrate how governance contributed to resilience, competitiveness and sustainable outcomes.
Datuk Mohammad Faiz said this approach was reflected in the forthcoming Malaysian Code on Corporate Governance (MCCG) 2026, which had been guided by the need for governance frameworks to evolve alongside changes in business models, technology and stakeholder expectations.
He said the revised MCCG would continue to be underpinned by the principles of accountability, integrity, transparency and effective oversight, while encouraging boards and organisations to take a more forward-looking approach to issues affecting long-term value creation.
He said the SC had issued a Discussion Paper last year and a follow-up Consultation Paper in July this year containing proposals to strengthen Malaysia’s corporate governance ecosystem.
The MCCG 2026 also complements the MYValue Up programme launched in April this year for larger listed companies, he said.
“While value creation is ultimately driven by business strategy and execution, good governance provides the foundation for better decisions, trust and resilience,” he said.
On the role of governance professionals, Datuk Mohammad Faiz said company secretaries were increasingly expected to play a broader role beyond ensuring legal compliance and maintaining corporate records.
He said they were increasingly serving as trusted advisers, facilitating effective board decision-making and providing a critical and constructive internal voice.
“There may be occasions where the most convenient course of action for a board is not necessarily the best. There may even be times when asking the right question matters more than having the correct answer,” he said.
He said the SC was exploring the establishment of a multi-stakeholder task force involving regulators and professional bodies to develop a standardised competency framework for company secretaries of Malaysian-listed companies.
The SC was also working with Bursa Malaysia on the regulatory framework for company secretaries of listed companies, including matters relating to fit and proper requirements and accountability, he added.
Datuk Mohammad Faiz said the true measure of governance was not the number of policies adopted, disclosures produced or committees established, but whether it helped organisations make better decisions, strengthen resilience, build trust and support sustainable long-term value creation.
“As we look ahead, the challenge is to ensure that governance remains relevant, effective and responsive to the realities confronting boards today,” he said.
The CGI Global Governance Summit 2026 was held at the KLGCC Convention Centre here today.
