KUALA LUMPUR (March 11): Securities Commission Malaysia (SC) is seeking public feedback on its draft of Governance Code for Malaysian micro, small and medium enterprises (MSMEs).

SC chairman Datuk Seri Dr Awang Adek Hussin said good governance practices among MSMEs are an integral part of the Malaysian economy, as this segment accounts for 97.4% of the country’s business establishments.

“Strengthening the resilience of MSMEs through a stronger governance foundation is critical to thrive in today’s dynamic market,” he said in a statement on Monday (March 11).

Interested parties and the public are invited to submit their comments on the draft code at www.micg.org.my/msmecode before April 30, 2024.

The SC said MSMEs’ adoption of the code will be voluntary, with the code complementing other existing guidance available for MSMEs including the Simplified ESG Disclosure Guide and the ESG Quick Guide for MSMEs.

The SC said the new code focuses specifically on governance practices, including those required to ensure clear accountability for decision making in relation to the management of sustainability risks and opportunities of a company. 

The governance practices in the code are recommended based on the size and business maturity spectrum of MSMEs, said the SC.

The country’s capital market regulator also said the code aligns with the principles of the Malaysian Code on Corporate Governance (MCCG), which is aimed at listed companies.

Implementation of the code will be led by the Malaysian Institute of Corporate Governance (MICG) together with SME Corp, said the SC. 

It said development of the code is aligned with the 12th Malaysia Plan and the National Entrepreneurship Policy 2030, which aims to improve transparency and integrity, and ensure a competitive business environment.