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TITLE: Welcome Remarks by Dr Nurmazilah Dato’ Mahzan, Chief Executive Officer, Malaysian Institute of Accountants at A Session on Integrated Reporting <IR> with Stakeholders

DATE: 07/04/2017

WELCOME REMARKS BY

DR NURMAZILAH DATO’ MAHZAN

CHIEF EXECUTIVE OFFICER

MALAYSIAN INSTITUTE OF ACCOUNTANTS

AT

A SESSION ON INTEGRATED REPORTING <IR> WITH STAKEHOLDERS

7 APRIL 2017, FRIDAY, 9.30AM, KUALA LUMPUR

Salutations:

  • International Integrated Reporting Council (IIRC), Chief Executive Officer, Richard Howitt
  • International Integrated Reporting Council (IIRC), Chief Strategy Officer, Jonathan Labrey
  • Ladies and Gentlemen

Good Morning!

I am pleased to be here at this Integrated Reporting <IR> session with various stakeholders ranging from IIA Malaysia, MSWG, MICG, MACD, MINDA, NACRA, MASRA and Institutional Investor Council (“IIC”) Malaysia. Thank you for attending this session. Your presence speaks volume as it shows your interest and commitment towards <IR>.

The main objective of this session is to create awareness of <IR> and provide an overview of the adoption of <IR> in Malaysia.

Ladies and Gentlemen,

<IR> is a new approach to corporate reporting.

<IR> is beyond conventional financial reporting and regulatory compliance. It addresses how companies use financial and non-financial capitals to create greater value over the short, medium and long term. Here, non-financial capitals refer to human, intellectual, social, intangibles, environmental and among others.

By adopting <IR>, investors would be able to make informed decisions and companies would be able to attract sustainable capital and financing.

However, the challenge lies in ensuring smooth adoption and relevancy to the mainstream business and investor communities. Businesses also need to figure out the key risks and opportunities of <IR> and how <IR> can be incorporated as part of existing reporting requirements.

These are some of the pressing issues that need to be addressed in order to ensure smooth adoption of <IR>.

Ladies and Gentlemen,

South Africa has made it mandatory for listed companies to prepare an integrated report. Closer to home, Japan, has become the biggest success story outside of South Africa. With the support of regulators, more than 200 listed companies in Japan are producing integrated reports and it is purely market led, which is an extraordinary achievement.

Companies in Sri Lanka are also very receptive in adopting <IR> because the Prime Minister of Sri Lanka has endorsed <IR>. He said adopting <IR> will make Sri Lanka more attractive for foreign investment and local private investment.

In both countries, the messages and initiatives outlined from the top (in this case the prime minister of the respective countries) are loud and clear. And, these tones from the top have helped in the takeoff of <IR>.

In Malaysia, however <IR> is still very much at an infancy stage as it is purely on voluntary basis. Currently, there are only a handful of local companies that have adopted <IR> in their annual reports.

Ladies and gentlemen, we believe that it is better for <IR> to be market driven, but it should have the support of the regulators.

To increase the awareness of <IR> in Malaysia, the Integrated Reporting Steering Committee (IRSC) was established within the Malaysian Institute of Accountants (MIA) less than three years ago.

In this aspect, the IRSC has and will continue to have a series of dialogues with stakeholders and investors on educating them on the need for <IR> in the organisations.

We are confident that with our continuous efforts and on-going engagements with all of you, more companies would adopt <IR>.

Ladies and Gentlemen,

We are very fortunate to have with us Richard Howitt and Jonathan Labrey to share their knowledge and experiences on <IR> with all of us.

Do take the opportunity to clear any of your doubts during this session.

On that note, I wish you all a productive day ahead.

Thank you.