ICDM sees growing interest and emphasis on Corporate Governance matters amongst local boards
KUALA LUMPUR, 28 JUNE 2019: The Institute of Corporate Directors Malaysia (ICDM) today shared its results and performance for its financial year ended 31 December 2018 (FY2018). This is ICDM’s second (2nd) Annual General Meeting, and the first since its official launch on 1 October 2018.
The inception of ICDM under the Securities Commission Malaysia (SC) is to strengthen the Corporate Governance (CG) ecosystem in the country. It is also to fulfil the role of an Institute of Directors (IoD) with the intention of contributing to elevating the standards of professionalism amongst directors. ICDM will also function as a two-way communication platform through which it will represent the voice of directors via its representation as a key member of the Corporate Governance (CG) Council under the SC.
Yang Berbahagia Tan Sri Zarinah Anwar, Chairman of ICDM said, “Since our official launch last year, ICDM has been focused on enhancing Malaysia’s board effectiveness and promoting excellence in governance. These two (2) factors are key to achieving the bigger goal of corporate and economic success in the country. And, to ensure this state is sustainable over the long-term, we need to drive the right tone from the top via strengthening directors’ professionalism and to move Corporate Malaysia from a state of regulatory discipline, to market discipline, to the final state of self-discipline.”
Michele Kythe Lim, President and Chief Executive Officer of ICDM also said, “We have continued to see growing interest from Boards and Directors, from both listed and unlisted companies, in ICDM and our programmes. This is an indication the Boards and Directors are seeing the importance of a continuous elevation of skills and knowledge as imperative to remain competitive and relevant in the market. In 2018, we have recruited a total number of 125 individuals and 11 corporate members as well as reached out to 180 participants through our two (2) public programmes, Power Talk.
In terms of corporate membership, 64% of ICDM’s members comprise of listed companies, 27% unlisted public companies, and 9% private companies. Financial services dominate the sectorial representation at 45%, followed by 18% from the industrial products and services sectors as well as 9% for property, construction, government investment linked companies and energy, respectively.
ICDM is also developing the pipeline for the next generation of directors and working to bring on board more Small and Medium Enterprises (SMEs) as part of the overall plan to enhance the CG culture in Malaysian companies. SMEs make up 98.5% of the total business community in Malaysia and contribute more than one-third of our economy1, and are therefore significant.
From a diversity perspective, the majority of their members, or 38% are within the 50-59 years age range, followed by 40-49 years at 28%, 60-69 years at 22%, under 40 at 10% and over 70 years of age a 1%. Gender diversity as at 2018 stands at 34% female directors and 66% male.
International outreach and strategic partnerships such as ICDM’s recent tie-up with the national stock exchange, Bursa Malaysia, on the Bursa Breakfast Talk and Thought Leadership Series programmes as well as their recent announcement of hosting the Malaysian Chapter of the Climate Governance Initiative (CGIM) is a step towards raising the bar and emphasis on CG and Sustainability matters. Bringing national and international perspectives to the fore will be in line with ICDM’s plans to strengthen the local board leadership.
Michele concluded, “Moving forward, ICDM is seeing strong momentum in terms of our membership growth and participation rates in our programme. To date, individual membership growth is at 58% whilst corporate membership has more than doubled in the first six (6) months of 2019. The overall corporate community has been very positive and receptive towards our approach and conversations that we are pursuing. ICDM is positive that this is a conducive environment for growth.”
To bring about the correct understanding and action, ICDM drives their objective and messages through four (4) areas namely, programmes, membership recruitment, new partnerships, and international outreach. Some of the highlights to date are the successful rollout of ICDM’s own branded platform namely the quarterly PowerTalk, bespoke, and public programmes, board evaluation and directors’ placement services, as well as a strong membership drive – both corporate and individual.
ICDM is recognised and supported by Securities Commission Malaysia, Bank Negara Malaysia and Bursa Malaysia. As part of Securities Commission of Malaysia’s initiatives under the Corporate Governance Strategic Priorities 2017 – 2020, ICDM is established as the agency to promote self-discipline amongst Boards and Directors, to strengthen the corporate governance ecosystem in Malaysia. Ultimately, it is ICDM’s goal to become the one-stop centre for all Board and Director needs in Malaysia and the region.
1Source: SME Corp Annual Report 2017/2019
About the Institute of Corporate Directors Malaysia (ICDM): ICDM is a newly established one-stop professional institution for Directors by Directors to enhance board effectiveness. It is recognised and supported by the Securities Commission Malaysia, Bank Negara Malaysia, Bursa Malaysia and Capital Market Development Fund. For more information on ICDM, please visit our website at https://icdm.com.my/
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|Dau Ming Seling
|Lok Ru Jun