Corporate Governance in Malaysia

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TASK 1 (Due on 04 September 2012)
You are required to answer the following questions
A. Discuss the evolution of Corporate Governance in Malaysia before the year 2000(Not more than 500 words) B. Challenges and changes in Corporate Governance since 2000(Not more than 700 words) C. Give an overview of Malaysian Corporate Governance Code 2012(CG Code 2012) (Not more than 300 words) D. Discuss in detail, the salient features of Principle 1,2, 6 and 7 of the Malaysian CG Code 2012(Not more than 1,000 words)

1. Discuss the evolution of Corporate Governance in Malaysia before the year 2000.
In order to accomplish as a developed country and achieve the Vision 2020, most of the public listed companies in Malaysia were formed and transformed from family-owned based. There are about 1000 listed companies on the board of Malaysia stock exchange. Therefore it increased the importance of corporate governance developing in Malaysia. Further, the globalization of the business increased the competition around the companies also was one of the reasons to establish the corporate governance.

From 1995 onwards, Malaysia had taken several steps on improving its corporate governance system. For instance, the establishment of Financial Committee in 1998 and the release of corporate governance report on March 1999. The issues of corporate governance gained greater awareness and importance because of the financial crisis happened in 1997.

In 1997 of Asian financial crisis, the economists claimed that the failure of large corporations due to the lack of well-structured corporate governance. It motivated the financial committee to set up the Malaysian code on corporate governance. In 1998, the Malaysian Code on corporate governance (Code) was developed by the Working Group on Best Practices in Corporate Governance (JPK 1) and after approved by the High Level Finance Committee on Corporate Governance. (Commission, 2000)

After the Asian financial crisis...
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