The awards continue to be a force for spurring continuing excellence and improvement in corporate reporting in Malaysia

by S BIRRUNTHA / Pic by MUHD AMIN NAHARUL

PETROLIAM Nasional Bhd (Petronas) and Sunway Bhd have emerged as winners of the Excellence Awards in their respective categories for the National Annual Corporate Report Awards (NACRA) 2021.

In a statement yesterday, NACRA said Petronas has won gold under the category of Best Designed Annual Report.

Sunway has won platinum under the category of Companies with RM2 Billion to RM10 Billion in Market Capitalisation and silver under the category of Best Sustainability Reporting.

CIMB Group Holdings Bhd, Kumpulan Perangsang Selangor Bhd, Fraser & Neave Holdings Bhd, RHB Bank Bhd and Malayan Banking Bhd have also bagged the NACRA 2021 Excellence Awards yesterday.

NACRA guidelines are continuously reviewed and enhanced to ensure that the assessment standards for annual reports are in line with current requirements and the latest global developments.

In its 31st year, NACRA was jointly organised by Bursa Malaysia Bhd, Malaysian Institute of Accountants (MIA) and the Malaysian Institute of Certified Public Accountants (MICPA), and continues to be a force for spurring continuing excellence and improvement in corporate reporting in Malaysia, in line with its theme Towards Accountability and Excellence.

Bursa Malaysia chairman Tan Sri Abdul Wahid Omar said the need for better corporate reporting resulting from Covid-19.

He also added that it is crucial that our corporate reporting narrative recognises the need to evolve.

“Companies must now examine how to bring certain underlying company fundamentals to the forefront, rather than focusing solely on earnings highlights.

“They should also be prepared to discuss how to position the company to thrive once the social and economic sectors have recovered from the pandemic,” he said in a congratulatory message delivered at the virtual awards presentation ceremony held yesterday.

Abdul Wahid also expects greater environmental, social and governance (ESG) adoption post-pandemic.

He noted that as we move into 2022, this global movement towards sustainability will gain even more traction.

He said apart from the need to comply with the updated Malaysian Code on Corporate Governance 2021, the case for companies to embrace ESG is clear.

“It is not a case of ‘nice to have’ but a case for survival.

“In light of these developments, finance professionals must realise that their role now is no longer limited to just reporting financial metrics, but to play a key role in embedding a clear and well-defined ESG strategy within their organisations,” he noted.

MIA and MICPA president Dr Veerinderjeet Singh (picture) stated in his speech that organisations should integrate sustainability-related considerations into all aspects of their business and they must consider ESG in their strategies and reporting framework.

He added that stakeholders are now more aware of the impact that businesses have on the economy, environment and society, and sustainability-related issues can significantly affect an organisation’s risk profile, potential liabilities and its value.

He also noted that one recent development is the need for tax governance to also be considered in the context of ESG as tax transparency is also a global issue.

Meanwhile, NACRA 2021 Adjudication Committee chairman Stanley Teo commended the participating organisations for the high quality of corporate reporting observed.

He advised that more attention needs to be paid to non-financial information disclosures as traditionally, more emphasis is placed on financial information.

“Many countries have seen dramatic shifts in the reporting on sustainability, driven not only by regulations but also by a growing understanding in ESG issues.

“Whilst it is true that there are some costs involved when it comes to implementing sustainability reporting, the benefits far outweigh them.

“In the long term, your enterprise value is likely to increase. Hence, it’s time to place greater effort in sustainability reporting,” he said.

Aligned with NACRA’s goals of being forward-looking and anticipating the trends and requirements of corporate reporting of the future, NACRA 2021 Organising Committee chairman Ahmad Zahirudin Abdul Rahim shared that a new logo for NACRA was launched this year, carrying a modern, clean and futuristic design.

Winners can also look forward to a new trophy design this year.

NACRA is open to all companies incorporated or registered in Malaysia as well as the public sector and other organisations established in Malaysia.