1 week ago
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KUALA LUMPUR: The corporate reporting has, at its foundation, the need to keep stakeholders well informed about the company, and about the actions of those to whom they have entrusted the responsibility of managing it, said Bursa Malaysia chairman Tan Sri Abdul Wahid Omar (pix).
He said there is a clear relationship between trust, reputation and value, and corporate reporting is the link between a company and its investors.
Highlighting the importance of corporate reporting, he said a company could enhance or damage its reputation not only through the way it behaves but also how it reports.
“So, what should be reported and how it is presented must evolve with the changing landscape. Information that companies should provide must be relevant to what stakeholders need and want,“ he said.
Abdul Wahid said this in his congratulatory remarks at the virtual National Annual Corporate Report Awards (NACRA) 2020 – Announcement of Winners today.
He was commenting on the matter as the future of corporate reporting has been a subject of considerable debate and often criticised for its over-complexity, requiring more disclosures and sparking accusations that corporate and financial reports are no longer relevant, especially for the needs of investors.
On another development, Abdul Wahid said focus on sustainability in the new normal will be accelerated as the pandemic has proven the viability of the environmental, social, and governance (ESG) agenda for both stakeholders and investors.
In the first four months of 2020, investors poured a record US$12 billion (RM48.7 billion) into ESG funds, he said, adding that ESG investments have proven to be remarkably resilient, where 70% of ESG funds for all asset classes are outperforming their competitors.
“As such, we can expect that the ESG consideration will continue to move up the corporate agenda with stakeholders expecting effective management of ESG matters,” he said.
Meanwhile, Malaysian Institute of Accountants (MIA) and Malaysian Institute of Certified Public Accountants (MICPA) president Dr Veerinderjeet Singh said enhancing corporate disclosure and reinforcing its use as a tool for communications, stakeholder engagement and comparison will ensure that corporate and financial reporting remained relevant, despite changes in the business and economic landscape.
“This in turn improves the demand for accountancy as the primary provider of corporate and financial reporting and enhances the long-term demand for accountancy services and the ensuing sustainability and resilience of the profession,” he said.
At the NACRA 2020, which turned 30 this year, 32 winners in different categories were announced out of a field of 48 participating organisations.
The awards, jointly organised by Bursa Malaysia Bhd, MIA and MICPA, saw Public Bank Bhd bagged the Platinum Excellence Award for Companies With More Than RM10 Billion In Market Capitalisation category, while Telekom Malaysia Bhd received the Platinum Excellence Award for Companies With RM2 Billion to RM10 Billion in Market Capitalisation.
For Companies With Less Than RM2 billion in Market Capitalisation category, Sunway Construction Group Bhd lifted the Platinum Award, while for Non-Listed Organisation, the Platinum Award went to Petroliam Nasional Bhd.
NACRA was introduced to promote effective communication by organisations through the publication of timely, informative, transparent and reader-friendly annual reports. – Bernama
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