Companies listed on the Main Market and the ACE Market of Bursa Malaysia Securities (‘the Exchange’) will be required to introduce anti-corruption measures from 1 June 2020.
On 18 December 2019, the Exchange introduced a new paragraph 15.29 to the Main Market Listing Requirements and a new Rule 15.28 to the ACE Market Listing Requirements, which are to take effect from 1 June 2020. These provisions require –
- a listed company and its board of directors to ensure that–
- the following are established and maintained for the listed company and its subsidiaries (’group’) –
- policies and procedures on anti-corruption that are, at a minimum, guided by the Guidelines on Adequate Procedures issued by the Malaysian Anti-Corruption Commission pursuant to section 17A(5) of the Malaysian Anti-Corruption Commission Act 2009; and
- policies and procedures for whistle-blowing;
- the policies and procedures referred to in (a) above are reviewed periodically to assess their effectiveness, at least once in every three years; and
- corruption risk is included in the annual risk assessment of the group.
- a listed company publishes on its website –
- its policy on anti-corruption; and
- its policy and procedures on whistle-blowing.
According to the Exchange the introduction of anti-corruption measures will –
- promote better corporate governance culture and ethical behaviour within a listed company’s group; and
- provide listed companies with a defence against corporate liability under section 17A of the Malaysian Anti-Corruption Commission Act 2009 by ensuring that listed companies implement adequate procedures to prevent the occurrence of corrupt practices.
The Exchange also introduced a set of Questions and Answers in relation to the amendments to each of the said listing requirements.