Chief Executive Officer, Malaysian Institute of Accountants
Our heartfelt congratulations go out to the IIRC on its tenth anniversary.
As the regulator and developer of the accountancy profession in Malaysia, the Malaysian Institute of Accountants (MIA) has had the privilege of collaborating closely with the IIRC since 2014 to drive the adoption of integrated reporting in Malaysia. One of the focus areas is to strengthen corporate reporting and enhance its role in driving orderly and transparent markets. MIA is confident that integrated reporting is the way forward to improve Malaysian corporate reporting, as integrated reporting and the underlying approach of integrated thinking will help organizations make efficient resource allocation and strategic decisions connected to their purpose and articulate their own unique value creation narratives.
Throughout our integrated reporting journey, MIA has been working together with the IIRC, our co-regulators the Securities Commission and stock exchange Bursa Malaysia, and our stakeholders in the corporate reporting ecosystem, for the advocacy of integrated reporting. We have charted several milestones that have supported integrated reporting in gaining traction, relating to facilitation and incentivization of adoption, as well as education and training for preparers and users.
Importantly, the incorporation of integrated reporting into the Malaysian Code of Corporate Governance 2017, as exemplary best practice for public listed companies created significant awareness, momentum and buy-in. Our MIA-ACCA Integrated Reporting Survey in September 2016 indicated that stakeholders understood the benefits of integrated reporting adoption: 97% of investors and 85% of report preparers believed that integrated reporting adoption improved transparency; 81% of investors and 81% of preparers felt that it would improve communication with external stakeholders; and 74% of investors and 57% of preparers thought integrated reporting would enhance integrated thinking and demolish organizational silos.
This was followed by the launch of the Integrated Reporting Awards as a standalone category in March 2017 in the National Annual Corporate Report Awards (NACRA), which recognise reporting excellence. Our regular integrated reporting outreach events for investors, directors, audit committee members, public sector employees and the public, inclusion of integrated reporting into our CFO Circle events to reach CFOs and finance leaders, as well as our IIRC-certified training workshops, have also built up awareness and competency.
Currently, MIA is going through the momentum phase of building consensus and adoption of integrated reporting, which includes advancing integrated thinking as part of corporate governance reform, facilitating alignment of the corporate reporting system and accelerating adoption in Malaysia. We continue to gain ground in integrated reporting adoption: for NACRA 2020, we launched a new NACRA framework that is aligned with the International <IR> Framework’s principles of value creation and this has received an excellent response, despite the COVID-19 crisis. I am also honoured to participate as a member of the <IR> Framework Panel for revisions to the <IR> Framework, which enables MIA to articulate perspectives on integrated reporting in the interest of Malaysia and ASEAN, and boosts MIA as the local and regional voice of the integrated reporting profession. Despite the limitations caused by the Covid-19 crisis, we compiled and provided feedback for the revised framework and hosted a virtual regional focus group roundtable on the Consultation Draft of the revised <IR> Framework on 2 June 2020.
Moving ahead, we will continue to build consensus and competency in integrated reporting amongst Malaysian adopters. Growing interest in and adoption of integrated reporting will help instil the accountancy profession’s core values of integrity, accountability and transparency in corporate reporting to support resilient markets and sustainable value creation.
Once again, we wish the IIRC heartiest congratulations on its tenth anniversary. We look forward to further collaboration with the IIRC to advance integrated reporting implementation for laudable corporate reporting in the public interest and for nation building.