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GOVERNANCE
70
Bursa Malaysia •
Annual Report 2015
CORPORATE GOVERNANCE
STATEMENT
e. Boardroom diversity
16
Based on the review of the Board composition in 2015,
the Board concurred with the NRC’s recommendation
to maintain the optimum Board size at 12. The optimal
size would enable effective oversight, delegation of
responsibilities and productive discussions among
members of the Board, considering Bursa Malaysia’s unique
composition comprising PIDs as required under Section
10(1)(a) of the CMSA, taking into account the governance
and regulatory functions of an EHC, in pursuance of its
integrated regulatory and commercial objective.
The Board strongly views that diversity of the Board’s
composition is important to facilitate optimal decision-
making by harnessing different insights and perspectives. In
2015, the NRC had been considering the appointment of an
additional woman Independent NED in pursuit of its target
of three women directors by 2016, taking into account the
combination of skill, experience and strength in the qualities
necessary to strengthen the composition of the Board.
Pending this appointment in 2016, the Board shall retain its
size at 10.
The diversity criteria reviewed by the NRC in 2015 include
gender, ethnicity and age. The current diversity in the race/
ethnicity and nationality of the existing Board is as follows:
RACE/ETHNICITY
NATIONALITY
MALAY CHINESE INDIAN OTHERS MALAYSIAN FOREIGN
Number of
Directors
7
1
1
1
9
1
The NRC also had regard to the existing Directors’ age
distribution which appeared to be balanced at an average of
59, falling within the respective age groups as follows:
Age Group
51-55 56-60 61-65 66-70
Number of
Directors
3
2
4
1
In November 2015, the Board considered the overall Board
Diversity Policy for Bursa Malaysia as recommended by the
NRC, and subsequently approved the following:
BOARD DIVERSITY POLICY
Bursa Malaysia’s diversity policy is to ensure that the
mix and profiles of our Board members, in terms of
age, ethnicity and gender, provide the necessary range
of perspectives, experience and expertise required to
achieve effective stewardship and management. We
believe that a truly diverse and inclusive Board will
leverage differences in thought, perspective, knowledge,
skill, regional and industry experience, cultural and
geographical background, age, ethnicity and gender,
which will ensure that Bursa Malaysia retains its
competitive advantage.
In this regard, the NRC is responsible for reviewing and
assessing the composition and performance of the Board,
as well as identifying appropriately qualified persons to
occupy Board positions. In reviewing the composition of
the Board, the NRC will consider the benefits of diversity
in order to maintain an optimum mix of skills, knowledge
and experience on the Board. Diversity and its benefits
underpinned by meritocracy will continue to be the focus
of the NRC when identifying and recommending new
candidates for Board memberships, as well as evaluating
the performance of the Board and its individual members.
In connection with its efforts to create and maintain a
diverse Board, the NRC will:
• Assess the appropriate mix of diversity (including
gender, ethnicity and age), skills, experience and
expertise required on the Board and address gaps
if any;
• Adhere to the recruitment protocol that seeks to
include diverse candidates in any director search;
• Make recommendations to the Board in relation to
appointments, and maintain an appropriate mix of
diversity, skills, experience, and expertise on the
Board, etc;
• Periodically review and report to the Board on
requirements in relation to diversity on the Board,
if any.
16 Paragraph 15.08A(3)(a) of the MMLR