Embedding Economic Excellence: A Transformational Definition Of “Corporate Governance” For Malaysia
by Prof. Dr. Zulkifflee Mohamed, Prof. Dr. Garry James Clayton, Assoc. Prof. Dr. Mohd Yaziz Mohd Isa
Journal of Modern Accounting and Auditing, (2015),Vol. 11, No. 2, Pages 124-129
The Malaysian government has carefully crafted policies to ensure that the nation achieves its aspirational goal to become a developed nation by 2020. Crucial for which is the success of the Securities Commission’s “Corporate Governance Blueprint 2011” and “Capital Market Master Plan 2” designed to provide a business environment which attracts investment and talent.
Somewhat overlooked in these otherwise robust policy shifts has been a critical critique of the definition, nature, and purpose of corporate governance itself. Recognizing this oversight, Tan Sri Muhyiddin Yassin, Malaysia’s Deputy Prime Minister, has directed that the definition of corporate governance be rejuvenated for the 21st century.
This paper looks to answer that challenge by recommending the following transformational definition for corporate governance: “the proactive implementation of accountable ethical processes, procedures, and policies that inspires innovative aspirational economic activity to produce sustainable wealth and prosperity for shareholders, stakeholders, and society”.