Corporate Governance Developments in the Middle East and Southeast Asia

Abstract:

In the past few years, there has an increasing concern regarding the standards of the corporate governance amongst the developed and the developing countries, which would enable them to be competitive. In 2017, Saudi Arabia and Malaysia altered their codes regarding corporate governance, in order to promote ethical behaviour, transparency, accountability and stewardship about the investors’ capital. In this study, the researchers have analysed the important features of these new codes implemented by Saudi Arabia and Malaysia. They used a comparative approach for identifying the advantages and limitations and also determined the areas that have to be improved. This study stated that several transformations were established in both jurisdictions. However, there are many areas that require continuous development, especially those related to the independence of the board, gender diversity problems, and impartiality included in the decision-making process. The researchers have suggested many recommendations regarding the manner in which the two countries can address all the loopholes and thereafter, improve their corporate governance codes, such that they can compete at the international level.