ASEAN CORPORATE GOVERNANCE SCORECAR

ASEAN CORPORATE GOVERNANCE SCORECARD



A. BACKGROUND


ASEAN Capital Markets Forum (ACMF) Implementation Plan

In 2009, the ASEAN Finance Ministers endorsed the ACMF Implementation Plan to promote the development of an integrated capital market. This initiative is undertaken in parallel with the efforts to achieve convergence in ASEAN countries by 2015 as an economic community. Broadly the ACMF Implementation Plan seeks to achieve the objectives of the ASEAN Economic Community aspirations through the following areas:

• Creating an enabling environment for regional integration

• Creating the market infrastructure and regionally focused products and intermediaries

• Strengthening the implementation process

• Enhancing the visibility, integrity and branding of ASEAN as an asset class


The ACMF Corporate Governance Initiative

The ASEAN corporate governance initiative comprising the ASEAN Corporate Governance Scorecard (Scorecard) and the ranking of corporate governance of ASEAN public-listed companies (PLCs) are among several regional initiatives under the ACMF. It started in early 2011 and is supported by the Asian

Development Bank (ADB) through the “Promoting an Interlinked ASEAN Capital Market” regional technical assistance.


The objectives of the Scorecard and the ranking exercise are to:

• Raise corporate governance standards and practices of ASEAN PLCs

• Showcase and enhance the visibility as well as investability of well-governed ASEAN PLCs internationally

• Complement the other ACMF initiatives and promote ASEAN as an asset class


The ACMF Working Group D is responsible for this initiative. Members of Working Group D include capital market regulators and corporate governance proponents from the region.

Working Group D has been working towards enhancing a corporate governance ranking methodology, leveraging off methodologies already implemented in ASEAN countries, as well as those applied by multilateral agencies such as the Organisation for Economic Co-operation and Development (OECD).



1

ACMF ASEAN CORPORATE GOVERNANCE SCORECARD



Based on components and methodologies gathered, an assessment criteria and a corporate governance template in the form of a Scorecard has been developed.