The ongoing review of the framework is to ensure it remains relevant, effective and up to international standards
by RAHIMI YUNUS & SHAZNI ONG / pic by BLOOMBERG
BURSA Malaysia Bhd is expected to consult the industry again on the proposed interim reporting framework as part of its move to potentially axe the quarterly reporting requirements, similar to what has been done by Singapore Exchange Ltd (SGX).
The local bourse is in the middle of analysing the input received from the industry before deciding on finalising the proposal.
“The exchange will be engaging the industry again on the proposed interim reporting framework for Malaysian-listed issuers via public consultation,” the exchange holding company said in an email reply to The Malaysian Reserve recently.
According to Bursa, the current review of the interim financial reporting framework is part of the company’s ongoing review of the framework to ensure it remains relevant, effective and up to international standards, while safeguarding investor protection.
“We are always mindful that our rules remain balanced, not overly burdensome, and promote ease of doing businesses and growth of our listed issuers,” it said.
The quarterly reporting framework was first introduced by the exchange in 1999 to provide a more regular update relating to the financial condition of listed companies.
The rule was also aimed at restoring investors’ confidence after the Asian financial crisis.
It was later reviewed and decided in 2013, that quarterly reporting was still relevant and required by investors, and it promotes better corporate governance and transparency in the marketplace.
The topic on quarterly reporting goes on and Bursa issued a public consultation paper in September 2018 to gauge stakeholders’ preference on the interim financial reporting framework in Malaysia.
The paper sought feedback on various issues, including whether quarterly reporting is still relevant in the Malaysian context and if the market is ready to move towards a less frequent reporting regime.
Last week, the SGX announced that quarterly reporting will no longer be required for companies unless they are associated with higher risks while strengthening continuous disclosure requirements on all listed companies.
The SGX will adopt a risk-based approach to quarterly reporting starting Feb 7.