Port Klang Scandal
1.0 Introduction
Port Klang Free Zone or PKFZ is an integrated 1,000-acre Free Commercial and Industrial Zone providing facilities for international cargo distribution and consolidation centre. PKFZ is situated in Port Klang, adjacent to port, the world’s 15th ranked port in 2009 in terms of throughput volume. However, problems occur when few Malaysia’s politician has been charged in persuading the government to spend an additional RM227m on acquiring additional land for the Free Zone development.
This paper starts with the definition of corporate governance and discussion about the Port Klang Free Zone scandal. The discussion included the review of Port Klang scandal, reasons and impact of the scandal to Malaysian.
2.0 Definition of Corporate Governance
Corporate Governance refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and societal goals, as well as, economic and social goals.
Corporate Governance is the interaction between various participants (shareholders, board of directors, and company’s management) in shaping corporation’s performance and the way it is proceeding towards. The relationship between the owners and the managers in an organization must be healthy and there should be no conflict between the two. The owners must see that individual’s actual performance is according to the standard performance. These dimensions of corporate governance should not be overlooked.
A definition by the Finance Committee on Corporate Governance in Malaysia in the Report on Corporate Governance (2002) stated that: “Corporate governance is the process and structure used to direct and manage the business and affairs of the company towards enhancing business prosperity and corporate
Port Klang Free Zone or PKFZ is an integrated 1,000-acre Free Commercial and Industrial Zone providing facilities for international cargo distribution and consolidation centre. PKFZ is situated in Port Klang, adjacent to port, the world’s 15th ranked port in 2009 in terms of throughput volume. However, problems occur when few Malaysia’s politician has been charged in persuading the government to spend an additional RM227m on acquiring additional land for the Free Zone development.
This paper starts with the definition of corporate governance and discussion about the Port Klang Free Zone scandal. The discussion included the review of Port Klang scandal, reasons and impact of the scandal to Malaysian.
2.0 Definition of Corporate Governance
Corporate Governance refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and societal goals, as well as, economic and social goals.
Corporate Governance is the interaction between various participants (shareholders, board of directors, and company’s management) in shaping corporation’s performance and the way it is proceeding towards. The relationship between the owners and the managers in an organization must be healthy and there should be no conflict between the two. The owners must see that individual’s actual performance is according to the standard performance. These dimensions of corporate governance should not be overlooked.
A definition by the Finance Committee on Corporate Governance in Malaysia in the Report on Corporate Governance (2002) stated that: “Corporate governance is the process and structure used to direct and manage the business and affairs of the company towards enhancing business prosperity and corporate
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