KUALA LUMPUR (June 6): The Securities Commission Malaysia (SC) and Bursa Malaysia today announced the rollout of a new mandatory onboarding programme on sustainability for directors of public listed companies (PLCs) on Bursa Malaysia.

Mandatory Accreditation Programme (MAP) Part II: Leading for Impact (LIP), is an extension to the existing MAP Part I under the Bursa Malaysia Main Market and ACE Market Listing Requirements, collectively, the Listing Requirement (LR).

“MAP’s main focus is on corporate governance, including director’s roles, duties and liabilities, as well as other obligations under the LR,” SC and Bursa said in a joint statement on Tuesday (June 6).

It noted that the development of LIP is in line with the SC’s Corporate Governance Strategic Priorities 2021-2023, which is aimed at strengthening the ability of boards to address sustainability considerations effectively.

SC chairman Datuk Seri Dr Awang Adek Hussin said it is important for boards to stay on top of sustainability-related developments to effectively manage sustainability risks while capitalising on new opportunities.

“This is especially important where stakeholders are becoming increasingly concerned about environmental, social and governance (ESG) issues,” said Awang.

He said that LIP further underpins the SC’s focus on supporting sustainability-conscious and effective leadership of PLCs.

Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said the introduction of LIP for PLC directors is timely as it is a significant step towards strengthening commitment towards ESG practices among boards.

“Bursa Malaysia will provide the necessary support and resources to assist our PLC directors in fostering sustainable growth within their organisations to ensure long-term value creation for their stakeholders,” Muhamad Umar said.

Note that the LR has been amended to require all first-time directors of PLCs on the Main and ACE Market of Bursa Malaysia as well as directors of listing or transfer applicants to attend LIP. The requirement will come into effect on Aug 1.

First-time directors and directors of listing and transfer applicants must complete the programme within 18 months from the date of appointment or admission, respectively.

Meanwhile, existing directors of PLCs on the Main and ACE Market must complete LIP within 24 months from the effective date.

The Institute of Corporate Directors Malaysia (ICDM), which is the knowledge partner for MAP Part I, has also been appointed as the knowledge partner to conduct LIP, in line with its mandate to enhance the overall effectiveness of boards and to promote excellence in sustainability-driven governance.

"LIP has been carefully curated to focus on the baseline knowledge and key considerations surrounding sustainability, including questions which boards should direct towards management in the effort to ensure a more robust and effective oversight of sustainability risks and opportunities of the company," it said.

Additionally, the LIP will also provide directors with a platform to engage and learn from their peers.