The Institute of Corporate Directors Malaysia (ICDM) has welcomed the government’s emphasis on strengthening public sector governance, transparency and accountability under Budget 2027, saying stronger institutions and effective leadership are essential to restoring public trust and ensuring Malaysia’s long-term economic resilience.
ICDM President and Chief Executive Officer Jackie Mah said the government’s commitment to enhancing institutional effectiveness sends a strong signal to both public and private organisations on the importance of integrity, responsible leadership and sound corporate governance.
“The government’s emphasis in Budget 2027 on strengthening public sector governance, transparency, accountability and institutional effectiveness sets the right tone from the top. When public institutions demonstrate high standards of integrity and stewardship, they set the benchmark for the broader business ecosystem,” she said.
Mah noted that the budget’s focus on strengthening oversight of government-owned entities, improving transparency in public procurement and reinforcing accountability in the management of public funds reflects the government’s seriousness in positioning governance as a key driver of national development.
She said these measures are particularly important in rebuilding public confidence amid ongoing concerns surrounding fraud, institutional weaknesses and corporate governance shortcomings.
However, Mah cautioned that translating the government’s governance aspirations into meaningful outcomes would require strong execution, capable leadership and effective oversight mechanisms across both the public and private sectors.
As organisations face increasingly complex challenges, including artificial intelligence (AI), cybersecurity threats, climate-related risks and the energy transition, she stressed that competent and appropriately qualified boards would be crucial in navigating emerging risks and opportunities.
“The quality of decision-making, oversight and accountability at the leadership level will determine whether Malaysia achieves its long-term aspirations,” Mah said.
She added that organisations must be supported by future-ready governance frameworks and leaders capable of balancing strategic growth ambitions with their responsibilities to shareholders, employees and the wider public.
Government-Linked Entities Bill A Significant Step Forward
Mah described the proposed Government-Linked Entities Bill as an important initiative to strengthen governance standards and oversight of organisations entrusted with managing public funds and resources.
She said the legislation could help reinforce accountability among government-linked entities while ensuring greater transparency in the management of public assets.
ICDM also welcomed the RM1.1 billion allocation for enforcement agencies under Budget 2027, noting that effective enforcement and adherence to the rule of law are fundamental to maintaining institutional credibility.
Mah stressed that accountability must extend beyond regulatory compliance to include the quality of leadership and boardroom decisions.
“Whether it is safeguarding public assets, taking a company to listing or overseeing AI, the quality of directors will decide whether these ambitions deliver for the rakyat,” she said.
She explained that ICDM’s engagement with the public sector focuses on strengthening stewardship and equipping boards to manage increasingly complex responsibilities.
This includes helping directors strike an appropriate balance between public interest and commercial discipline, government priorities and organisational realities, as well as transformation ambitions and effective execution.
Boards must also navigate the often competing expectations of shareholders, citizens and other stakeholders while ensuring clarity of responsibilities, sound judgement and accountability for organisational outcomes.
Strengthening Governance Among Bumiputera Enterprises
Beyond public sector reform, Mah highlighted the importance of strengthening governance and leadership capabilities among Bumiputera enterprises seeking to expand their operations, attract investment and achieve sustainable growth.
She said ICDM is extending its collaboration with the Sarawak Centre of Performance Excellence (SCOPE) through a tripartite Memorandum of Understanding (MoU) involving SCOPE and TERAJU.
The initiative builds on ICDM’s existing work with SCOPE in preparing Sarawak Civil Service leaders for boardroom responsibilities, including positions within Sarawak government-linked companies.
According to Mah, the expanded collaboration will focus on strengthening corporate governance practices and developing leadership capabilities among Bumiputera enterprises as they prepare for their next phase of growth.
She said stronger governance structures would enable these businesses to improve their institutional readiness, enhance investor confidence and develop the organisational resilience needed to compete in an increasingly demanding business environment.
The initiative also underscores the growing importance of board effectiveness and professional development in supporting enterprise expansion and ensuring that growth is accompanied by responsible corporate stewardship.
Governance Must Translate Into Long-Term Institutional Strength
Looking ahead, Mah emphasised that governance reforms must be embedded within organisational culture rather than treated merely as compliance requirements.
She said principled leadership, effective oversight and a sustained commitment to accountability would be essential to building resilient institutions capable of delivering lasting economic and social value.
For Malaysia, this would require continuous improvements in board competency, governance processes and institutional accountability across government agencies, government-linked entities and private corporations.
“Resilient economies and high-performing institutions are built on the foundation of principled leadership, effective oversight and a commitment to accountability,” Mah said.
She added that strengthening governance across both the public and private sectors would position Malaysia to better achieve its development aspirations, reinforce public confidence and generate sustainable value for future generations.
“As we look towards the future, governance must remain anchored in the values that define the nation we seek to build,” she said.
