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SSM Annual Report 2007

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SSM Annual Report 2007 SSM at a Glance The Companies Commission of Malaysia • to encourage and promote proper conduct (SSM), under the purview of the Ministry of amongst directors, secretaries, managers Domestic Trade and Consumer Affairs, is and other offi cers of a corporation, and a statutory body that regulates companies self-regulation by corporations, companies, and businesses in Malaysia pursuant to the businesses, industry groups and professional Companies Commission of Malaysia Act 2001 bodies in the corporate sector in order (CCM Act 2001). SSM, which was established to ensure that all corporate and business on 16 April 2002, was formed as a result activities are conducted in accordance of a consolidation between the Registrar with established norms of good corporate of Companies (ROC) and the Registrar of governance; Businesses (ROB) in Malaysia. It is the sole regulatory authority responsible for the • to enhance and promote the supply of incorporation of local companies, registration corporate information under the relevant of foreign companies, registration of businesses, laws, and to create and develop a facility and serves as the custodian as well as the whereby any corporate information provider of both corporate and business received by, or fi led or lodged with the information. Commission may be analysed and supplied to the public; Historically, SSM has a rich heritage. It has its roots in 1898 and 1939 respectively when • to carry out, research and commission the ROC and the ROB were fi rst established. studies on any matter relating to corporate Today it brings a wealth of expertise of over and business activities; and a hundred years in the management of the business environment in Malaysia. SSM is • to advise the Minister generally on matters a self-funding organisation which sustains relating to corporations, companies itself from the revenue earned from the and businesses in relation to the laws incorporation of companies, registration and administered by SSM. renewal of businesses, lodgement of statutory documents, and the provision of products and SSM is responsible for administering and services (i.e. corporate and business data). enforcing the following legislations and the regulations made pursuant thereto: Functions • Companies Act 1965 (Act 125); SSM’s functions are spelt out in Section 17 of the CCM Act 2001 as follows: • Registration of Businesses Act 1956 (Act 197); • to ensure that provisions of the relevant laws are administered, enforced, given • Trust Companies Act 1949 (Act 100); and effect to, carried out and complied with; • Kootu Funds (Prohibition) Act 1971 • to act as agent of the Government and to (Act 28). provide services in administering, collecting and enforcing payment of prescribed fees; SSM shares the government’s aspirations towards nation building and creating a • to regulate matters relating to corporations, conducive environment for both corporate and companies and businesses in relation to the businesses advancement in the country. relevant laws; 2 Minister’sMMinister’sinister’s ForewordForewordForeword Datuk Hj Mohd Shafi e Hj Apdal Minister of Domestic Trade and Consumer Affairs 3 Minister’s Foreword (cont’d.) FY2007 was a year in which many of SSM’s key objectives “ were achieved and I am proud of the invaluable contributions SSM has made to the business community. The efforts by SSM have ensured Malaysia will continue to be one of the preferred business destinations among international investors, analysts and the commercial fraternity ” Last year proved to be an important year the economy up the value chain. SSM, under for Malaysia as the country began the the purview of the Ministry of Domestic Trade implementation phase of the Ninth Malaysia and Consumer Affairs, has contributed to this Plan (2006-2010). This has already signifi cantly success and will continue to play its role with strengthened the core aspects of the nation’s ever expanding capability and commitment. economic structure and created a platform for the delivery of the national economic and FY2007 also marked the tenth anniversary social agendas. A mark of Malaysia’s economic of the start of the Asian fi nancial turmoil. The confi dence can be witnessed by the fact that events that began with the collapse of the Thai the rates of inward investments remain healthy baht in July 1997 eventually cost the region despite the threat of rising fuel prices and the tens of billions of US dollars and generated consequential downturn in world economic speculations about a ‘lost decade’ in Asia, says growth. Whilst Malaysia cannot wholly insulate a McKinsey report. Now Asia’s fi nancial system itself from international economic problems, is better structured and stronger than it was we can be confi dent that our economic in 1997 and the region appears set to play an fundamentals are now stronger than ever and increasingly important role in the years ahead. suffi cient to weather the global uncertainties. The Government’s commitment to prudent Any change in the business climate can fi nancial management and careful economic affect all sectors and levels of society. In the planning means that unlike some nations we 21st century, the task of reducing risk and shall continue to be able to sustain growth levels vulnerability to the vagaries of business change and prosperity. has become a crucial matter particularly for the world’s developing countries. The processes of The Government of Malaysia under the able economic adaptation are not new. Throughout leadership of the Prime Minister YAB Datuk history, people have been adapting to changing Seri Abdullah Haji Ahmad Badawi has and will conditions, brought on by fi erce competition, continue to focus on strategies that will lever technological advances, evolving fi nancial 4 Minister’s Foreword (cont’d.) landscapes, new legal frameworks, Government some areas we have even exceeded global policy initiatives and global economic trends. standards putting us ahead of some of the In some cases, economic changes have been world’s leading economies. accompanied by violent social upheavals. This has not been the case in Malaysia where the The momentum for growth and expansion Government has taken positive steps to mitigate continues to look bright for Malaysia. The economic hardships and systematically reduce Government will continue to ensure that the poverty. business infrastructure meets the needs of an expanding economy and provides appropriate Change, it is said, is as inevitable as the investment incentives. As one of the authorities laws of physics. What is innovative is the for the improvement of corporate governance idea of incorporating risk management and best business practices, SSM will continue strategies into policy making in order to be to ensure compliance with business registration proactively responsive to change. Although and corporate legislation through effective our understanding of change and its potential enforcement and monitoring. In this way, impact has become clearer, the Government we will be able to nurture and sustain an will continue developing practical coping ethical business environment, and confi dently strategies without losing sight of the big anticipate other positive developments in the picture. corporate and business sectors. SSM has formulated, planned and installed I am confi dent that all in the business several initiatives to support the government’s community will continue to work together with agenda in making the country as one of SSM and the Government to ensure Malaysia’s the most business supportive nations in continued prosperity and social well-being. this region. Part of this work has involved developing the legal framework to make it more relevant. In addition, SSM has spearheaded Datuk Hj Mohd Shafi e Hj Apdal corporate governance framework, educational Minister of Domestic Trade and programmes and enforcement activities, Consumer Affairs expedited business and corporate registrations and upgraded operations and processes. All 28 January 2008 these initiatives have enhanced the effi ciency and effectiveness of SSM’s customer service standards. The KPIs in the Client Charter have been met and in some cases surpassed, for example, investors and businessmen can now set up companies and businesses within a day and an hour respectively. In fact, in 5 Chairman’sCChairman’shairman’s MessageMessageMessage Dato’ Mohd Zain Mohd Dom Chairman Companies Commission of Malaysia 6 Chairman’s Message (cont’d.) “ SSM also demonstrated the difference in a more efficient quality service delivery for an organisation that caters to more than 800,000 companies and 3.5 million businesses nationwide ” Once again, our commitment to running a more meaningful, competencies enhanced, responsive and responsible organisation has compliance and enforcement pursued, operating provided a fi rm foundation for success - making methodologies re-engineered, marketing FY2007 another good year for the Companies innovated and SSM employees retrained. As Commission of Malaysia (SSM). The year under a result, our world ranking for conducting review saw us building on our strong reputation business in Malaysia improved to 24 in 2007, for customer focus, ethical principles, innovative up three notches from 27 in 2006. product development, quality service delivery, information and communication technology Good governance, compliance and ‘Balanced (ICT) savviness, and enforcement in line with Enforcement’, and best business practices were the legislative requirements. These priorities also key imperatives.
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