The SME Governance Working Group, under the chairmanship of the Securities Commission Malaysia (SC), has released the draft Governance Code for Malaysian Micro, Small, and Medium Enterprises (MSMEs) for public consultation today.
This initiative aligns with the objectives outlined in the 12th Malaysia Plan and the National Entrepreneurship Policy 2030, which aim to enhance transparency, integrity, and competitiveness within the business landscape.
Datuk Seri Dr. Awang Adek Hussin, the Chairman of SC, emphasised the significance of instilling good governance practices within MSMEs, which constitute a substantial portion of Malaysia’s economy, accounting for 97.4% of the country’s business establishments.
“Strengthening the resilience of MSMEs through robust governance principles is crucial to thrive in today’s dynamic market,” Awang Adek said.
The adoption of the Governance Code by MSMEs will be voluntary, complementing existing guidance available to them, such as the Simplified ESG Disclosure Guide and the ESG Quick Guide.
The Code places a specific focus on governance practices, ensuring clear accountability for decision-making regarding the management of sustainability risks and opportunities within a company.
These governance practices are tailored based on the size and maturity spectrum of MSMEs.
Furthermore, the Code is in alignment with the principles set forth in the Malaysian Code on Corporate Governance (MCCG), primarily aimed at listed companies.
The implementation of the Code will be overseen by the Malaysian Institute of Corporate Governance (MICG), in collaboration with SME Corp. Malaysia and other pertinent agencies.
