Malaysian firms 'need to prepare for new business laws'

Companies operating in Malaysia have been reminded of the need to implement revised business practices to account for the forthcoming introduction of new governance laws.

Lee Min On, executive director of KPMG Business Advisory Sdn Bhd, has observed that the implementation of the Malaysian Code on Corporate Governance early next year will have repercussions for secretaries, directors and auditors alike.

He told attendees of a recent Malaysian Institute of Corporate Governance seminar that authorities in the nation are likely to become more proactive in monitoring issues following this, which could result in hefty fines for convicted parties, reports Bernama.

As such, Mr Lee advised that companies put a structured framework in place to make sure they are meeting their regulatory responsibilities and offering the necessary transparency.

"Public listed companies directors need to apply corporate governance in substance rather than just merely following rules and procedures," he added.

This comes after the nation's securities commission chairman Tan Sri Zarinah Anwar said Malaysia requires more proactive measures to tackle issues such as boardroom diversity last month.