More listed companies adopted best practices as outlined in the Malaysian Code on Corporate Governance (MCCG) in 2019, compared to the year before. When releasing its annual Corporate Governance Monitor (CG Monitor 2020), the Securities Commission Malaysia (SC) noted that the areas which show an increase in adoption are the Step Up practices, the two-tier voting process and board practices to determine remuneration of directors and senior management. While the adoption of the two-tier voting process for retention of long serving independent directors has increased, there remains a high number of independent directors whose tenure spans between 20 - 40 years. As at 31 August 2020, gender diversity on boards of listed companies shows slight improvement at 24.82% (2018: 23.68%) on the top 100 listed companies and 16.96% (2018: 15.69%) across all listed companies. The SC is also encouraged to note that smaller companies have adopted a more transparent approach with regards to disclosure of remuneration of senior management on a named basis.

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