Malaysian corporate governance 'improved by whistleblowing'

Measures brought in to protect whistleblowers have strengthened corporate governance standards in Malaysia, according to the nation's prime minister.

Datuk Seri Najib Tun Razak said the Securities Commission has received a number of tip-offs from auditors and accountants since the whistle-blowing provisions were made, news agency Bernama reports.

"Some of these reports have led to enforcement action being taken against the perpetrators, directors and senior management of the company," the prime minister commented.

He added that a "stronger culture of public accountability and integrity" can now be observed.

In an attempt to clamp down on corporate fraud, unethical behaviour and financial mismanagement, Malaysia moved to give whistleblowers additional protection under the Capital Markets and Services Act.

The legislation also states that auditors are required to report regulatory breaches to the Securities Commission as a mandatory duty.

Head of Deloitte Malaysia's forensic practice David Lehmann has advocated the creation of an "anonymous whistleblowing mechanism", such as a hotline, for companies in Malaysia.