Momentum building up in Malaysia
•
12 April 2011 – Capital Market
Masterplan 2 (CMP2), the blueprint for
the development of the Malaysian
capital market over a ten-year period,
was launched.
•
To ensure the success of the plans for
the development of the Malaysian
capital market, CMP2 also
emphasised on the importance of
investor protection and governance
Momentum building up in Malaysia
Source: www.sc.com.my
Momentum building up in Malaysia
•
11 June 2011, the SC followed up with
the launch of its five-year Corporate
Governance Blueprint
•
Contains SC’s action plan to raise the
standards of corporate governance
by strengthening self and market
discipline, and promoting greater
internalisation of the culture of good
governance.
•
One of the themes covered in the
blueprint is ‘Disclosure and
Transparency’, => promote a more
effective disclosure of non-financial
information
Effective disclosure of non-financial
information – towards integrated
reporting
•
Source: www.sc.com.my
Momentum building up in Malaysia
ASEAN EXCHANGES
•
6 countries
•
7 exchanges
•
3,613 companies
•
538 million people
•
Combined GDP of USD1.8 trillion
•
Market capitalisation of > USD2 trillion
•
•
A Malaysian company can list on any ASEAN Exchange
In 2012, a Malaysian company will be more easily traded by an
ASEAN investor regardless of where it is listed
Momentum building up in Malaysia
Bursa Malaysia’s aims to:
• Galvanise to ensure Malaysia is at the centre for trade flow in the
ASEAN CAPITAL MARKET
•
a)
b)
-
DRIVE ASEAN EXCHANGE LEADERSHIP
Malaysia Exchange Leadership
National Strength; Regulatory Framework; Market Tenacity
ASEAN Connectivity
ASEANLink with minimal investment by brokers; platform expected
to go ‘live’ shortly
c) MALAYSIA AS YOUR CENTRE – especially for Malaysian firms
Developments in other Stock Exchanges
• Countries such as Australia, Canada, South Africa, Norway and
Denmark have started to move from CSR reporting towards
integrated reporting
• In February 2010, the JSE, through its listings requirements, made it
compulsory for all listed companies to comply with King III, including
the requirement for a company to produce an integrated report
for its financial year starting on and after 1 March 2010, or to explain
why it was not doing so
XBRL Format of Reporting
For Financial Statements
• XBRL seen as an alternative format to ensure that the information
lodged with SSM is accurate and correct.
• SSM also promotes the adoption of XBRL as a nation wide format
to be used by key agencies such as Central Bank, Inland Revenue
Board, Securities Commission and Bursa Malaysia and building of
extension taxonomies by such agencies
• SSM’S XBRL project implementation commenced in 2010 and the
1st phase (operationalisation) is expected to be completed in 2013
with lodgement of financial statement in XBRL format on voluntary
basis and will eventually be mandatory reporting
ANNOUNCEMENTS BY MASB
• MASB issued internationally compliant
accounting framework and new FRSs (19
November 2011)
• New MASB approved accounting framework, the
Malaysian Financial Reporting Standards
(MFRS Framework).
ANNOUNCEMENTS BY MASB
• MFRS Framework comprises Standards as
issued by the International Accounting
Standards Board (IASB) that are effective on 1
January 2012. It also comprises new/revised
Standards recently issued by the IASB effective
after 1 January 2012 such as Standards on
financial instruments, consolidation, joint
arrangements, fair value measurement and
employee benefits, etc.
ANNOUNCEMENTS BY MASB
• Issued new/revised FRSs:
a) FRS 9 Financial Instruments,
b) FRS 10 Consolidated Financial Statements,
c) FRS 11 Joint Arrangements,
d) FRS 12 Disclosure of Interests in Other Entities,
e) FRS 13 Fair Value Measurement,
f) FRS 119 Employee Benefits,
g) FRS 127 Separate Financial Statements, and
h) FRS 128 Investments in Associates and Joint Ventures,
i) four limited amendments to FRSs and a new
Interpretation (IC 20).
ANNOUNCEMENTS BY MASB
• MASB seeks views (RFV) on financial reporting by
private entities
• Previous exposure drafts (ED):
a) ED 52 Private Entity Reporting Standards (2006),
b) ED 72 Financial Reporting Standards for Small and
Medium-sized Entities (2010) and
c) ED 74 Amendments to Financial Reporting Standards
arising from Reduced Disclosure Requirements (2010).
ANNOUNCEMENTS BY MASB
• MASB seeks views (RFV) on financial reporting by
private entities
• Questions to be addressed:
a) Whether the existing Private Entity Reporting Standards
(PERS) should be replaced by ED 52, ED 72 or ED 74?
b) Whether there are any immediate changes that the PERS
framework requires if private entities continue applying
it until the new standards are in place
c) Whether the proposed timeframe is sufficient to enable a
private entity to properly transition to the new financial
reporting requirements?
WORKPLAN OF IASB @ 13 March 2012
WORKPLAN OF IASB @ 13 March 2012
WORKPLAN OF IASB @ 13 March 2012
SUMMARY
• Besides all the future technical updates
• Given the future goals to make Malaysia a regional
financial centre
• Good corporate governance => important
• Investors and every other stakeholder have become
more sophisticated
• Businesses more complex
• Expectations continue to rise
• Sustainability Reporting and Integrated Reporting –
compulsory or voluntary?
• ED on Integrated Reporting Framework expected in
2012
• XBRL
SUMMARY
• In the words of Karim Raslan:
“ …….. we live in an ERA OF FULL DISCLOSURE.”
The Star, 20 March 2012