Bursa Malaysia (Malaysian Exchange)

Exchange entity Bursa Malaysia
Conducts business in Malaysia
Number of listed companies (dec./16) 903
Domestic market capitalization (in Millions USD, dec./16) 363,150
Has signed the SSE Commitment Letter? Yes
Has prepared SSE Communication to Stakeholders? No
Requires ESG reporting as a listing rule? Yes;In October 2015, Bursa Malaysia issued amendments to the Main Market Listing Requirements (“Main LR”) and ACE Market  Listing Requirements (“ACE LR”) (collectively referred to as the “LR”) relating to sustainability statements in annual reports (“Sustainability Amendments”).Under the Sustainability Amendments, listed issuers are required to disclose a narrative statement of the management of material economic, environmental and social (“EES”) risks and opportunities (“Sustainability Statement”) in their annual reports. This replaces the existing statement on the corporate social responsibility (“CSR”) activities or practices required to be disclosed by listed issuers.For the Main Market listed issuers, they are also required to include in their Sustainability Statement, the prescribed information as set out in Practice Note 9 of the Main LR such as the governance structure, the scope of the Sustainability Statement and the management of material EES risks and opportunities (“material sustainability matters”). The prescribed disclosure is not applicable to ACE Market listed corporations given the type and size of the listed corporations.In addition to the above, the LR also encourages all listed issuers to refer to the Sustainability Reporting Guide (described below) as a best practice when preparing the Sustainability Statement and in identifying material sustainability matters. The Sustainability Amendments take effect on a staggered basis over a period of 3 years, starting from 31 December 2016 to 31 December 2018.
  • Main Market listed issuers with a market capitalisation of RM2 billion and above as at 31 December 2015 or the date of its admission to the Exchange in 2016, are required to disclose their Sustainability Statements in annual reports issued for the financial year ending (“FYE”) on or after 31 December 2016.
  • All other Main Market listed issuers are required to disclose their Sustainability Statements in annual reports issued for the FYE on or after 31 December 2017.
  • ACE Market listed corporations are required to disclose their Sustainability Statements in annual reports issued for the FYE on or after 31 December 2018.
  • Sources: For the full text click here: Main Market, Ace Market
  • Sources: For the circular, click here: Main Market, Ace Market
Offers written guidance on ESG reporting? Yes;
  • In tandem with the Sustainability Amendments issued in October 2015, Bursa Malaysia also issued a Sustainability Reporting Guide ("Guide") to aid listed issuers in embedding sustainability in their organisations and reporting on it.  Compliance with the Guide is voluntary.
  • Listed issuers are strongly encouraged to follow the Guide as a best practice. The guide is further supplemented by 6 Sustainability Toolkits on Governance, Materiality Assessment, Materiality Matrix, Stakeholder Engagement, Stakeholder Prioritisation Matrix and Themes & Indicators ("Toolkits"). The Toolkits provide step-by-step guidance on, among others, how to establish governance process for sustainability, perform a materiality assessment, identify and engage with stakeholders. The Guide and Toolkits replace the "Powering Business Sustainability - A Guide for Directors" published in 2010.
Offers ESG related training? Yes;
  • Following the launch of the new sustainability framework in 2015, Bursa Malaysia embarked on an extensive awareness building initiative amongst listed issuers and institutional investors, which includes organising a series of sustainability programmes for listed issuers. In this regards, Bursa Malaysia developed a Sustainability Engagement Series for 2016, with programmes customised for mainly 2 groups of participants: listed issuers' directors, CEOs/CFOs, and Chief Sustainability Officers/practitioners. The series is intended to enhance participants' understanding of the signficance of embedding sustainability into corporate strategy and implementing sustainability throughout the organisation (including preparing them in their sustainability disclosures pursuant to the amended Listing Requirements).
  • Bursa Malaysia's Education and Awareness Programmes Calendar 2016 (which includes training relating to corporate governance and sustainability) is available here.
Provides sustainability-related indices? Yes; FTSE4Good Bursa Malaysia (F4GBM) Index
Has green bond listings? No
Additional Information Bursa Malaysia’s own sustainability initiatives include the following:
  • Bursa Malaysia’s Sustainability Knowledge Portal
  • In addition to the disclosure of Bursa Malaysia’s CSR statements in its annual reports, Bursa Malaysia also issues standalone sustainability reports since 2011. Source
  • Bursa Malaysia is a supporting partner of MYCarbon-National Corporate GHG Reporting Programme for Malaysia. MYCarbon is a 2-year programme initiated by Ministry of Natural Resources and Environment (NRE) in collaboration with United Nations Development Programme (UNDP) Malaysia. The programme’s objectives include setting up a globally recognized standard corporate GHG accounting and reporting programme in Malaysia; encouraging corporate level carbon level carbon accounting and emissions reductions; providing standards, guidance and support measures (training, fiscal and other incentives) and acting as a data source for analysis and development of local emissions factors in Malaysia. Source
  • Bursa Malaysia is a member of the CSR Asia Strategic Partner Programme. The CSR Asia Strategic Partner Programme connects leading companies across Asia who share best practices and challenges in CSR. Partners collaborate on areas of interest and build a network of peers in their industry and beyond. Source
  • Bursa Malaysia supports various industry initiatives such as The Edge Billion Ringgit Club’s Award, the ACCA Sustainability Reporting (MaSRA) Award and National Annual Corporate Report (NACRA) Award. Source pg. 32 NACRA is Malaysia’s most esteemed award in recognition of excellence in annual corporate reporting. Source, and is jointly organized by Bursa Malaysia, Malaysian Institute of Accountants (MIA) and the Malaysian Institute of Certified Public Accountants (MICPA). In 2000, the National Annual Corporate Report Awards (NACRA) began including a specific category for Environmental Reporting, which was renamed as the Corporate Social Responsibility Award in 2008, and subsequently as the Corporate Social Responsibility Reporting Award in 2013. Source
Organizational model of stock exchange
  • Listed company for profit; demutualized in 2004
Regulatory bodies
Regulatory model
  • Strong Exchange Self-Regulatory Organization (SRO) Model Bursa Malaysia is an exchange holding company approved under section 15 of the Capital Markets and Services Act 2007 by the Securities Commission (“SC”) being the primary regulator of the capital market. Bursa Malaysia is the frontline regulator and has the duty to maintain a fair and orderly market in the securities and derivatives that are traded through its facilities. In this regard, Bursa Malaysia has put in place a comprehensive and effective regulatory and supervisory framework to regulate the market, its participants and listed issuers.In this respect, Bursa Malaysia has issued various sets of rules to stipulate the requirements that need to be met by the regulated entities either upon admission and/or on a continuing basis. It administers and monitors compliance with these rules and takes strict, prompt and objective enforcement action for breaches of these rules. Bursa Malaysia actively supervises the listed issuers and the participants. It also undertakes surveillance over the trading activities in the marketplace.The SC supervises and monitors Bursa Malaysia to ensure that Bursa Malaysia performs its regulatory duties and obligations in an effective manner. Under the law, the SC's approval is required for changes to Bursa Malaysia’s rules.
About the stock exchange
  • Location: Kuala Lumpur, Malaysia Bursa Malaysia is an exchange holding company established in 1973 and listed in 2005. Today, it is one of the largest bourses in Asia, hosting just under 1,000 diversified companies. We operate and regulate a fully integrated exchange offering a comprehensive range of exchange-related facilities including listing, trading, clearing, settlement and depository services. We offer a diverse spread of products covering equities, derivatives, offshore listings and services and bonds and Islamic offerings. In assisting the development of the Malaysian capital market, Bursa Malaysia is committed to provide the infrastructure needed to create a globally competitive and vibrant marketplace. Source

Further details of the Sustainability Amendments are available at the following links:

 

MAIN MARKET

 

·            Circular in relation to the Main LR

         http://www.bursamalaysia.com/misc/system/assets/15709/Main%20Circular_Issuance%20(Sustainability)_fair.pdf

 

·            Full text of the sustainability amendments for the Main LR

         http://www.bursamalaysia.com/misc/system/assets/15713/Appendix%201_MainLR_Sustainability_final%20(7Oct2015).pdf

 

ACE MARKET

 

·      Circular in relation to the ACE LR

http://www.bursamalaysia.com/misc/system/assets/15757/ACE%20Circular_Issuance%20(Sustainability)_fair.pdf

 

·      Full text of the sustainability amendments for the ACE LR

http://www.bursamalaysia.com/misc/system/assets/15761/Appendix%201_ACELR_Sustainability_final%20(7Oct2015).pdf

Ownership of Exchange (Shares >4% only) Share
Kumpulan Wang Persaraan 19.80%
Capital Market Development Fund 18.74%
Employees Provident Fund 7.30%
Amanah Saham Bumiputera 4.13%