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KPMG's Study Reveals Increasing Acceptance Among Companies In Malaysia For Board Effectiveness Evaluations

KPMG's Study Reveals Increasing Acceptance

Bernama, Focus Malaysia & Utusan Online


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The practice of board effectiveness evaluation in Malaysia has evolved with a growing recognition that the business case for it is clear and compelling. According to a study conducted by KPMG in Malaysia, entitled, ‘Board Evaluation – Mutual Admiration or Thoughtful Reflection?’, over 80% of Large Companies in Malaysia have conducted externally facilitated board evaluations or have put in place crystallized plans to undertake one in the forthcoming years.

The report explores the thinking, approaches and practices associated with the board evaluation exercise in Malaysia. It was put together using disclosures from 581 listed companies in Malaysia 1 as well as anecdotes and first-hand insights gathered from the marketplace.

Datuk Johan Idris, Managing Partner of KPMG in Malaysia, said: “The board evaluation process has been revitalized over the recent years, which is reinforced by the introduction of regulatory enumerations which calls for periodic externally facilitated evaluations.” He added: “Many directors have shared anecdotes with us that after they concluded board evaluations, frictions during meetings were reduced, their boardroom information architecture improved, and they have diffused ambiguities between their jobs and that of management, as well as paid more attention to long term corporate strategy.”

Kasturi Nathan, KPMG’s Head of Governance & Sustainability in Malaysia, said: “In an age where directors are constantly challenged to raise their game, many enlightened companies have come to realize that the board evaluation is an opportunity to understand the pathology of the board and board committees, while assessing if individual directors are able to discharge their duties. The evaluation process not only opens a window of opportunity for self-reflection, it can also serve as a catalyst for driving positive change in companies.”

For full article:
Focus Malaysia
Utusan Online 


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