Corporate Governance Statement

The purpose of this statement is to provide investors with an insight into the CG practices of the Company under the leadership of the Board. This statement serves as a testament of the Board's conviction that CG is the "way of life" for Bursa Malaysia. It demonstrates the Board's continuous effort to strive for the highest standard of practice throughout the organisation, and also provides compliance with paragraph 15.26 of the LR.

THE BOARD OF DIRECTORS

1. Principal Responsibilities of the Board

The Board has six specific responsibilities, as described below, which have been discharged in the best interests of the Company, with a proper balance between the Company's regulatory and commercial objectives:

a. Reviewing and adopting a strategic plan for the Company

The Board plays an active role in the development of the strategy. It has in place a strategy planning process whereby at the end of each year, the Management presents to the Board the strategy for the ensuing year for its approval. This process also includes the Board's review and approval of the annual budget as well as the corporate KPIs and the corresponding targets which are used by the Board for tracking the Company's performance against the targets it has set.

In 2007, the Board engaged external consultants, Mercer Oliver Wyman (MOW), to undertake a detailed review of the capital markets and assist Bursa Malaysia in formulating and mapping its strategies. MOW's findings were used by Management to develop the 2008 Business and Regulatory Plans which were first presented to the Board for review and "challenge" at an offsite meeting in October, and were subsequently, approved in December 2007. A mid-year review of the 2008 Plans was conducted by the Board in July 2008, where the Management presented the status of key initiatives undertaken in the first half of the year as part of the Company's three-year strategic plan.

A similar process was adopted for the development of the 2009 Business and Regulatory Plans.

b. Overseeing the conduct of the Company's business to evaluate whether the business is being properly managed

The Board has established a Governance Model for the Group which is supported by the Authority Limits Document (ALD). The ALD sets out clearly the relevant matters which are reserved for the Board's approval, as well as those matters which the Board may delegate to the Board Committees¹, the CEO and Management. The Governance Model and the ALD are reviewed as and when required to ensure an optimum structure and efficient decision-making in the organisation.

¹ The Board Committees comprise four Governance Committees and four Regulatory Committees as set out in the Governance Model of Bursa Malaysia on page 80 of the Annual Report. The TOR and composition of each Board Committee is available at www.bursamalaysia.com.