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TITLE: Speech by Encik Ahmad Zahirudin Abdul Rahim, NACRA 2018 Adjudication Committee Chairman at National Annual Corporate Report Awards (NACRA) 2018 Awards Presentation Dinner

DATE: 06/12/2018

SPEECH BY

ENCIK AHMAD ZAHIRUDIN ABDUL RAHIM

NACRA 2018 ADJUDICATION COMMITTEE CHAIRMAN

AT

NATIONAL ANNUAL CORPORATE REPORT AWARDS (NACRA) 2018
AWARDS PRESENTATION DINNER
THEME: TOWARDS ACCOUNTABILITY & EXCELLENCE

6 DECEMBER 2018 (THURSDAY), 9.10 p.m. – 9.20 p.m., GRAND BALLROOM, HILTON HOTEL, KUALA LUMPUR

Salutations:

  • Yang Berhormat Tuan Lim Guan Eng, Finance Minister, Ministry of Finance Malaysia
  • Yang Berusaha Encik Eugene Wong Weng Soon, Managing Director, Corporate Finance & Investments of Securities Commission Malaysia
  • Yang Berusaha Puan Yew Yee Tee, Chief Regulatory Officer of Bursa Malaysia Berhad
  • Yang Berusaha Encik Salihin Abang President of Malaysian Institute of Accountants
  • Yang Berusaha Dr Veerinderjeet Singh, Vice President of the Malaysian Institute of Certified Public Accountants,
  • Yang Berusaha Dr Nurmazilah Dato’ Mahzan, Chief Executive Officer of Malaysian Institute of Accountants
  • Yang Berusaha Encik Novie Tajuddin, Chief Executive Officer of the Malaysian Institute of Certified Public Accountants
  • Yang Berusaha Stanley Teo Swee Chua, NACRA 2018 Organising Committee Chairman
  • Distinguished Guests, Members of the Media, Ladies & Gentlemen

Good evening.

  • In a short while, we will move on to the most awaited moment of tonight’s event – the Awards Presentation Ceremony.
  • Tonight, a total of 26 awards will be presented for the following categories:
    • The Overall Excellence Awards for Most Outstanding Annual Report of the Year;
    • Industry Excellence Awards for Companies Listed on the Main Board;
    • Presentation Awards, comprising the Best Annual Reports in Bahasa Malaysia and Best Designed Annual Reports;
    • Sustainability Reporting Awards;
    • Inclusiveness and Diversity Reporting Awards now in its fourth year;
    • Our Integrated Reporting <IR> Awards – now in the second year;
    • And not forgetting the Special Award for Non-Listed Organisations.
    We will also be presenting Certificates of Merit to the finalists in recognition of the excellent quality of their annual reports.

Ladies and gentlemen,

  • Over the years, the corporate reporting landscape has evolved significantly. Today, the industry is leaning more towards corporate reporting above and beyond financial compliance, in order to provide more information to meet growing demand from investors and decision-makers who want the “big picture” of business entities – qualitative and quantitative information.
  • As such, stakeholders are pushing for more voluntary reporting by companies on their sustainability and their value creation efforts over time. Hence, companies are encouraged to report information that goes beyond traditional and historical financial information to encompass their impacts on society and environment.
  • This has led to manifest changes in corporate reporting requirements, which include various local regulatory and listing requirements for corporate reporting pertaining to financial, business, corporate governance, sustainability, inclusivity and diversity disclosures as well as the introduction of the Integrated Reporting framework.
  • To stay abreast of these changes in the corporate reporting landscape, it is timely for NACRA to revise our criteria/ framework. Hence, NACRA 2019 will be the last year that entries will be assessed using the existing framework. Beginning from 2020, a new framework will be introduced for NACRA 2020.
  • I am sure that you are all eager to learn more about the new framework and the pertinent changes. These will be revealed in the future NACRA launch.

Ladies and gentlemen,

Before we move on to the announcement of the results, allow me to share a few observations in respect of this year’s NACRA entries, on behalf of my esteemed colleagues on the Adjudication Committee.:

  • Firstly, with regards to inclusivity and diversity reporting, organisations continued to disclose their board and workforce diversity policies – driven by regulatory requirements such as the Malaysian Code of Corporate Governance and the Listing Requirements. However, most organisations have yet to go beyond compliance and elevate their D&I disclosure to be in line with global frameworks such as the Global Reporting Initiatives Standards.
  • Similar to last year, in assessing the disclosures we focused strongly on how the organisations disclosed and improved on their diversity and inclusiveness practices at workplace level. The majority of the submissions had sufficient disclosures on board composition. However, many still lacked detailed disclosures on their diversity and inclusiveness practices at workforce level.
  • In future, organisations should consider providing more details on such as workforce composition, flexible work arrangements (FWA) and their take up rate as well as the percentage of new hires. Such disclosures would certainly enhance the readers’ understanding of the organisations’s D&I practices and will be taken into consideration in the scoring for the D&I awards.
  • Winners in the D&I category were outstanding because they displayed attention to detail in disclosing their inclusiveness and diversity practices in the workforce, such as disclosing their measures to support and empower women in the workforce, identify and groom talented women in senior management positions and instituting women friendly workforce policies.
  • With regards to <IR>, we saw improvement of the adoption of best practices in some of the companies. The winners of <IR> have clear and good articulation of value creation to various stakeholders, their strategies and future outlook. All these are the key elements of <IR> and were featured strongly in the winners’ report.
  • Being in the second year since NACRA introduced <IR> award, we noted that only approximately 40% of the participating companies presented <IR>. However, the companies in Malaysia are in the early stage of adoption of <IR>. We look forward to receiving more entries adopting <IR> and overall improvement in the quality of <IR> in the coming years.
  • Before we move on to the winners’ announcement, I would like to take this opportunity to thank the NACRA Committee members and all the adjudicators for their time, support and continuous dedication towards NACRA. Let us give them a big round of applause.

To all the winners, Congratulations & well done!