Image credit: Catalyst
THE Institutional Investors Council (IIC) Malaysia has revised its Malaysian Code for Institutional Investors 2022 as it wants its investee companies to comprise at least 30% women representation on their boards within a reasonable timeframe of not more than three years.
IIC said the target is an effort to support the diversity, equity and inclusion (DEI) agenda, which is aligned with the approach adopted by the Malaysian Code for Corporate Governance.
IIC advisor and council member Lya Rahman (picture, right) said IIC’s investee companies are expected to put in greater efforts to reach the target as the participation of women is less than 30%.
“Under this revised Code (to be published on Sept 23), investee companies of IIC members, which includes seven government-linked investment companies (GLiCs), must have clear policies to support the participation of at least 30% women on the board and in senior management, and the board must demonstrate commitment to take concrete action to implement these policies,” Lya said at the 30% Club’s Board Mentoring Scheme Celebration of Cohort 7th last Friday.
The 30% Club Malaysia chairman Datuk Ami Moris said 30% of women’s participation in board management is a pivotal milestone in achieving meaningful DEI.
“Global institutional investors are scrutinising investee boards and senior leadership for DEI outcomes, likewise environmental, social and governance (ESG) rating providers such as Sustainalytics and MSCI Inc,” she said.
Ami, who also Maybank Investment Banking Bhd CEO, views the importance of the agenda as it will add to the vibrancy of Malaysia’s economy and capital markets.
“Leadership must evolve to reflect the realities of the business environment or risk being left behind,” she added.
Also present at the event was Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz who said the agenda will help the country’s ambition to become a high-income nation by 2025 in the 12th Malaysia Plan.
“Organisations need to create an enabling environment that promotes equitable access to high-quality jobs and top leadership positions for all talent, regardless of gender and socio-economic background,” Tengku Zafrul said.
He noted that since 2020, the Finance Ministry has encouraged GLiCs to show leadership in DEI initiatives, given their pre-eminent roles in nation-building and socio-economic development.
“Representing about RM445 billion or 25% of Bursa Malaysia’s market capitalisation, directly employing 500,000 people and with RM1.7 trillion of assets under management, GLiCs will pave the way in realising the government’s objective of having 30% women representation on boards,” he added.
Source: https://themalaysianreserve.com/2022/09/05/iic-urges-glics-to-have-at-least-30-women-on-top-management/