MALAYSIA Trends and Developments Contributed by: Dato’ Tan Yee Boon, Stephanie Chan Pik Jia and Joaana Keng Li Xin, David Lai & Tan
ing of the SC introduced the PACE initiative, designed to help companies successfully adopt the NSRF. PACE offers policy guidance, assump - tions, calculators and educational resources to assist companies, including those listed on the main and ACE markets, in complying with the NSRF and IFRS Standards. Bursa Malaysia, on 24 September 2024, issued a public consultation paper regarding the conse - quential amendments to the MMLR and AMLR (collectively known as the “Listing Require- ments” ). The public consultation closed on 25 October 2024. To ensure that the Listing Requirements fit with the ongoing developments in the capital marker landscape, the following key amendments to the Listing Requirements have been proposed. Adviser/sponsor disclosure requirement One of the key amendments proposed to the MMLR and AMLR is the greater accountability of the advisers during the listing process. Specifi - cally, companies listed on the main market are now required to disclose the name of the recog - nised principal adviser responsible for its listing, in all announcements to Bursa Malaysia and in documents issued to securities holders (public documents), for two full financial years from the date of listing. Similarly, companies listed on the ACE market must state the name of their listing sponsor in all public documents for at least three full financial years after its admission to the ACE market, or for at least one full financial year after the applicant has generated operating revenue, whichever is the later, under the AMLR. These disclosures must be prominently dis - played on the front page of the relevant docu - ments, in print no smaller than the main text and positioned on the front page of the public documents. This initiative aims to strengthen the
accountability of advisers and sponsors, ensur - ing greater transparency and trust in the listing process. Physical general meeting An amendment was made to the MMLR and AMLR to require all listed issuers to hold their general meeting as a hybrid or physical meeting, effective from 1 March 2025. A trend towards vir - tual general meetings emerged after the imple - mentation of the movement control order (MCO) implemented under the Prevention and Control of Infectious Diseases Act 1988. Completely virtual general meetings became popular among listed issuers, but some held that such meetings had been abused to censor shareholders’ right to speak at a general meet - ing. Now, a general meeting must be held at a physical venue in Malaysia. Governance Code for Malaysian Micro, Small and Medium Enterprises (MSMEs) MSMEs are a cornerstone of the Malaysian econ - omy, driving growth, innovation and employ - ment across various sectors. In view of their critical role and the growing global emphasis on ESG principles, it is increasingly important for MSMEs to adopt strong governance practices to enhance transparency, uphold integrity and remain competitive in today’s evolving market landscape. The SME Governance Working Group, chaired by the SC and participated in by the Ministry of Entrepreneur and Cooperative Development (MECD), SME Corporation Malaysia and the Malaysian Institute of Corporate Governance, issued the draft Governance Code for MSMEs (the “Code” ) for public consultation. The Code focuses specifically on governance practices, including those required to ensure there is clear
556 CHAMBERS.COM
Powered by FlippingBook