Sunday 01 Oct 2023
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KUALA LUMPUR (June 10): The Institute of Corporate Directors Malaysia (ICDM) observed that companies have become more aware of building a culture of sustainability for greater performance.

ICDM president & chief executive officer Michele Kythe Lim said over the past two years, the institute has seen a marked change in board priorities and dynamics.

"Board attention and priorities on performance are underpinned by the understanding of the need to move the needle on culture and sustainability. The drive to elevate board performance is evident in the continued growth in our corporate and individual membership numbers, as well as the rapid rise in requests for external director sourcing and board evaluation.

"This willingness, or change in attitudes, perception and acceptance, signals a concerted effort to improve professionalism and diversity. This is in line with the paradigm shift of board leadership in Malaysia, which is to develop an agile and future-focused leadership model to ensure sustainability on three fronts: business, community and the planet," she said in a statement.

According to ICDM, 15 Malaysian companies had commissioned ICDM to conduct an external board and directors evaluation as of April 2022, doubling the number from the last reporting period (January 2020—April 2021).

ICDM also observed that more companies are incorporating independent searches in their board appointment process. During the same period, the institute received 87 independent directors sourcing requests, compared with 42 in the preceding reporting period.

The institute added that its membership community grew to 933 individual and 66 corporate members, representing increases of 39% and 32% respectively from April 2021.

These finding were revealed by ICDM through its annual report, titled "Sustainable & collaborative value creation".

ICDM is the one-stop centre for all board and director needs, dedicated to empowering boards and directors with the right skills, knowledge and mindset as well as digital competencies to enhance their professionalism and effectiveness.

Spearheaded by the Securities Commission Malaysia and supported by Bank Negara Malaysia, Bursa Malaysia and the Capital Market Development Fund, ICDM serves as the national institute of directors and aims to be a leading influence of excellence in governance.

Edited ByLee Weng Khuen
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