Corporate governance in Malaysia : issues and challenges Isu dan Cabaran Tadbir urus Korporat di Malaysia

Abstract EN

Corporate governance is a set of structural process that includes the actions of directing and controlling by the authorized board of directors.

In Malaysia, corporate governance is directly under the involvement of the Ministry of Finance, Bursa Malaysia, and Securities Commissions (SC) and Registrar of Company.

A good reform of corporate governance in Malaysia is essential to enhance the quality of corporate governance practices after the Asian Financial Crisis 1997.

The statistic shows that the low number of Malaysian companies adhered to good corporate governance practices.

This poses a question of the extent to what issues and challenges faced by the Malaysian companies reluctantly to adopt a good practice of corporate governance.

Hence, the Malaysian government has initiatively introduced Malaysia Code of Corporate Governance (MCCG) as a new code and rules for solving the problems of corporate governance.

This study is important to ensure better management of corporate governance of companies in Malaysia, accountability, integrity, and transparency, thereby ensuring the survival of Malaysian corporate governance institutions around the world.

The paper uses a qualitative approach.

The findings from this study highlight that the introduction of MCCG is tantamount to solve the underpinning problems of the corporate governance system.