AMENDMENTS TO BURSA MALAYSIASECURITIES BERHAD ACE MARKET LISTING REQUIREMENTS
- AscendServ
- Dec 23, 2024
- 3 min read
Announced on 23rd December 2024
Purpose:
in line with ongoing developments in the capital market landscape;
to improve quality of disclosures in the marketplace; and
safeguard shareholders' rights
Focused on:
aligning the sustainability reporting framework with the National Sustainability Reporting Framework ("NSRF")("Sustainability Reporting Requirements");
promoting shareholder participation in general meetings of listed issuers by requiring physical or hybrid meetings ("General Meeting Requirements"); and
updating the requirements relating to publication of a listing Sponsor's name in public documents for greater clarity ("Related Sponsor Requirements").
National Sustainability Reporting Framework (NSRF)
Launch Date
Officially introduced by the Advisory Committee of Sustainability Reporting (ACSR) on 24 September 2024, marking a significant milestone in Malaysia's sustainability journey.
ACSR Composition
A powerful collaboration of Malaysia's key financial regulators and authorities, bringing together expertise from Securities Commission Malaysia, Audit Oversight Board, Bank Negara Malaysia, Companies Commission of Malaysia, Bursa Malaysia, and the Financial Reporting Foundation.
Access to NSRF Details
For comprehensive information and guidelines, visit the official NSRF portal at https://www.sc.com.my/nsrf
PACE Initiative
Purpose
An initiative established by the Advisory Committee of Sustainability Reporting to support listed issuers in using the IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures.
Comprehensive Resources PACE offers a wide range of resources, including policy guidance, emissions calculators, and capacity building programs, to ensure companies of all sizes can meet the sustainability reporting requirements.
Resource Access
The resources and guidance materials can be found on PACE's website at:
General Meeting Requirements
Physical Venue Requirement
Starting March 1, 2025, listed issuers must conduct general meetings at a designated physical venue in Malaysia serving as the Main Venue.
Virtual Participation Options
Companies may offer concurrent physical venues or virtual meeting capabilities, equipped with comprehensive broadcast and interactive participation infrastructure.
Equal Shareholder Rights
All shareholders must be granted equivalent rights to speak and vote during general meetings, regardless of participation method.
Enhanced Engagement
Meeting formats should be designed to maximize shareholder participation and engagement, effective from March 1, 2025.
Listed issuers should aim to promote wider shareholder engagement and encourage participation at meetings when deciding the mode of conducting general meetings.
Sustainability Reporting Requirements
Effective Date
Mandatory compliance required for Sustainability Statements in annual reports for financial year ending (FYE) on or after 31 December 2027, giving organizations sufficient time to adapt their reporting processes.
Sustainability Statement Preparation
Listed companies must prepare comprehensive sustainability statements in accordance with IFRS Sustainability Disclosure Standards. This includes full compliance with IFRS S1 for general sustainability-related financial disclosures and IFRS S2 for specific climate-related assessments and impacts.
Additional Disclosures
Organizations must continue providing detailed Quantitative Information on sustainability metrics and obtain a Statement of Assurance from qualified third-party validators, ensuring transparency and accountability in sustainability reporting.
Sustainability Statement Prior to Effective Dates
Immediate Effect
The disclosure requirements for basic low carbon transition plans and common sustainability matters (introduced September 2022) will be disapplied with immediate effect.
FYE on or after 31 December 2024
Listed corporations must maintain narrative statements covering management of material economic, environmental and social risks and opportunities.
FYE on or after 31 December 2025 and 2026
Companies must comply with deferred 2022 SRF requirements, including narrative statements, 3-year data targets, and Statement of Assurance disclosure.
Transitional Arrangements
During the 3-year transitional period from respective Effective Dates, listed issuers may apply the following simplified reporting approach:
Step 1: Focus on Climate-related Disclosures
Organizations may initially limit their reporting scope to climate-related risks and opportunities, while building capacity for broader sustainability reporting.
Step 2: Principal Business Segments Only
Climate-related risk and opportunities disclosure requirements will apply only to principal business segments during the transition period.
Step 3: Limited Emissions Reporting
Scope 3 greenhouse gas emissions disclosure is not required unless specifically mandated by other regulators.
These transitional arrangements apply for 3 full financial years commencing from the respective Effective Dates. Listed issuers are encouraged to use IFRS S1 for non-climate SROs disclosures during this period.
Related Sponsor Requirements
Applicability
These requirements are applicable to a listed issuer which is admitted to the ACE Market on or after 2 January 2025 onwards.
Key Changes
Clarifying naming requirements for Recognised Approved
Adviser and Sponsor in Public Documents
Extending naming requirements for 2 full financial years
from listing, even when exempted from continued
compliance with Sponsor requirements
Ensuring prominent display of Sponsor and Recognised
Approved Adviser names without implying responsibility for
the entire document content
ILLUSTRATION A: OVERVIEW OF THE DISCLOSURE REQUIREMENTS FOR SUSTAINABILITY STATEMENTS UNDER ACE LR
