CREATING OPPORTUNITIES, GROWING VALUE Creating Opportunities, Growing Value
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CREATING OPPORTUNITIES, GROWING VALUE Creating Opportunities, Growing Value The cover for our Integrated Annual Report reflects the focus that we place on our key roles and purpose in the Malaysian capital market. The deliberately minimalistic approach allows our mission statement to stand out from any distractions, while the figurative bull and bear reflect the symbols long associated with the stock market. Overall, the cover reflects our continuing value creation efforts regardless of the market conditions. TABLE OF CONTENTS SECTION ABOUT POSITIONED FOR THIS REPORT VALUE CREATION 2 Continuing Our Integrated Reporting Journey 5 Who We Are 2 Scope and Boundaries 7 Our Performance 2 Material Matters 8 Our Value Creation Model 2 Reporting Principles and Framework 12 Overall Market Performance 2 Navigation Icons 14 Market Highlights 3 Forward-Looking Statement and Disclaimer 16 Corporate Events and News 3 Board of Directors’ Approval 20 Peer Comparison 22 Upcoming Financial Calendar Events SECTION SECTION OUR GOVERNANCE ADDITIONAL INFORMATION 81 Who Governs Us 129 List of Properties Owned by Bursa Malaysia Group 92 Who Leads Us 130 Statistics of Shareholdings 94 Key Senior Management 143 Additional Compliance Information Disclosures 95 Corporate Structure 96 Other Corporate Information 97 Corporate Governance Overview 107 Marketplace Report: Fair and Orderly Markets 114 Statement on Internal Control and Risk Management 123 Audit Committee Report VISION MISSION To be ASEAN’s leading, Creating Opportunities, sustainable and Growing Value globally-connected marketplace OUR CORE VALUES Building United to Responsibility Simplicity Agility relationships achieve We work together with We work hand-in-hand as We are accountable, We simplify processes and We adapt to evolving partners in the industry a team to become a High- as an organisation structures and encourage market and operating and community to deliver Performance Organisation and individuals, for the innovation to deliver timely conditions to achieve our mutually beneficial focused on achieving our outcomes of our conduct and transformative results targets outcomes goals and actions SECTION SECTION CREATING VALUE DELIVERING VALUE IN A SUSTAINABLE MANNER TO STAKEHOLDERS 24 Chairman’s Statement Management Discussion and Analysis 28 Chief Executive Officer’s Review 58 Financial Review 34 Our Strategic Focus 60 Securities Market 36 Our Operating Context 67 Derivatives Market 40 Our Stakeholders 70 Business Analytics and Information Services 41 Our Approach to Sustainability and Material Matters 72 Islamic Markets 50 Key Risks and Opportunities 76 Towards Operational Excellence 79 Outlook SECTION SECTION FINANCIALS APPENDICES 145 Directors’ Responsibility Statement 245 Notice of 44th Annual General Meeting 146 Financial Statements 251 Statement Accompanying Notice of 44th Annual General Meeting 255 Link to Information Stated in This Report 256 Abbreviation 257 Glossary About This Positioned for Creating Value in a Delivering Value Report Value Creation Sustainable Manner to Stakeholders 2 BURSA MALAYSIA BERHAD About This Report Continuing Our Integrated These Material Matters collectively form the basis that support the development and delivery of our activities and will be cross- Reporting Journey referenced throughout this report. Additionally, we have developed multiple content indexes in our SR in line with best practice to Bursa Malaysia strives to be help improve the accessibility of ESG information for stakeholders. an exemplary role model to our The discussions of our Material Matters have also been amended to facilitate greater readability and understanding in relation to stakeholders. We continuously strive reporting requirements. to improve our corporate reporting For more information about our Material Matters as well as our Materiality Assessment Process, please turn to pages 41 to 49 of this report and page 68 in our SR 2020. to ensure that it is aligned with best- Reporting Principles and Framework in-class disclosure standards and Our IAR complies with the Bursa Malaysia Securities Berhad Main Market Listing Requirements (MMLR) and takes guidance from that it gives our stakeholders a clear, the International Integrated Reporting Council (IIRC) Integrated accurate and complete picture of who Reporting (<IR>) Framework. we are. We also implement initiatives Our SR, meanwhile, was prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option, MMLR, that drive greater disclosure quality the FTSE4Good Bursa Malaysia (F4GBM) Index criteria, World and transparency in our marketplace. Federation of Exchanges (WFE) Sustainability Principles and the Ten Principles of the United Nations Global Compact (UNGC). This is the fourth consecutive year in which we have incorporated the Scope and Boundaries United Nations Sustainable Development Goals in our approach to Our Integrated Annual Report (IAR) discloses the trade-offs that sustainability. we make between the resources we use in our value creation activities as well as the types and quantum of value that we create for our stakeholders. This IAR also highlights the links between our past, present and future initiatives to give our stakeholders a clear view of our financial and non-financial performance, risks and prospects going forward. This report provides insight into our strategy as well as our performance and outcomes from our value creation process. It also provides an integrated view of the environmental, social and governance (ESG) impact of our activities and the way these ESG matters influence our decisions. Detailed ESG disclosures can be found in our standalone Sustainability Report (SR), which is Navigation Icons available on our website. Six Capitals Five Focus Areas This report covers the period beginning 1 January 2020 to Financial Capital Strengthening the Core 31 December 2020 unless otherwise stated. All information contained within this report has been verified to be accurate as at Capitalising on Technology the time of publication. Human Capital and Information Material Matters Regional and Global Bursa Malaysia conducted a comprehensive materiality Intellectual Capital Connectivity assessment in 2020 to refine our list of Material Matters to 13 from 17, as part of our continuing effort to better align our activities Fostering a High-Performance Manufactured Capital with our stakeholders’ expectations and manage our economic, Organisation environmental and social impacts. Material Matters are defined as those issues that affect Bursa Malaysia’s ability to create value for Making Sustainability Social Capital our stakeholders over the short-, medium- and long-term. Taken a Way of Life together, these material issues can substantively influence the assessments and decisions made by our key stakeholders. We Natural Capital have also reassessed the Priority Areas that group these Material Matters and have redefined them to better represent our areas of material concern. Our Additional Financials Appendices Governance Information INTEGRATED ANNUAL REPORT 2020 3 About This Report Our complete suite of reports for 2020, disclosures and reporting frameworks comprise Forward-Looking Statement the following: and Disclaimer This IAR contains forward-looking Integrated Annual Report 2020 statements that are subject to risks and uncertainties that could cause some Disclosure Reporting Framework and variance between actual results and • Management Discussion and Guidance expectations. These statements should not Analysis • Malaysian Code on Corporate • Financial Review Governance be construed as guarantees or predictions • Our Approach to Sustainability • MMLR of Bursa Malaysia’s future performance. and Material Matters • IIRC <IR> Framework Readers of this IAR are advised not to place • Corporate Governance • Companies Act 2016 Overview • Malaysian Financial Reporting undue reliance on them. • Audit Committee Report Standards • Statement on Internal Control • International Financial Reporting Board of Directors’ (Board) Approval and Risk Management Standards • Directors’ Report The Board has applied its collective mind to • Independent Auditors’ Report present Bursa Malaysia’s integrated report, • Financial Statements as guided by the <IR> Framework issued by the IIRC. The Board acknowledges its Sustainability Report 2020 responsibility in ensuring the integrity of this IAR, through good governance practices Disclosure Reporting Framework and and internal reporting procedures. • Governance Guidance • Reporting Scope and • MMLR Boundaries • GRI Standards • Assessment of Material • F4GBM Index criteria Matters and Stakeholder • WFE Sustainability Principles Engagement • The Ten Principles of the UNGC • Management Approach of Material Matters Tan Sri Abdul Wahid Omar Chairman, Bursa Malaysia Berhad Navigation Icons Stakeholders Material Matters Economic Environmental Public Listed Companies Performance Footprint Investors Market Integrity Anti-Fraud, Bribery Datuk Muhamad Umar Swift and Stability and Corruption Chief Executive Officer, Intermediaries Bursa Malaysia Berhad Education and Workplace Regulators and Capacity Building Environment Government Agencies Cyber Security Employee and Customer Engagement Employees Privacy Bursa Malaysia’s Sustainable Learning and Shareholders and Analysts Finance Development Industry Associations, Professional Innovation and Community Bodies and Industry Experts Technology Investment Excellence Community Groups Climate Risks This report is available online