Case study: How Bursa Malaysia creates economic value for its stakeholders
Bursa Malaysia or the Exchange, incorporated in 1976, is an exchange holding company that has been publicly listed on the Malaysian bourse since 2005, and one of the most vibrant and diverse marketplaces in ASEAN (Association of Southeast Asian Nations). As the market operator, Bursa Malaysia is cognisant of the value that it generates for its stakeholders in the form of jobs, dividends, and taxes. Tweet This!
This case study is based on the 2020 Sustainability Report by Bursa Malaysia, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
Bursa Malaysia’s economic performance is defined by its ability to generate and preserve value over time. As it deals with a wide range of stakeholders, Bursa Malaysia employs various approaches to make sure economic value is distributed proportionately. In order to create economic value for its stakeholders Bursa Malaysia took action to:
- create economic value for employees
- create economic value for the government
- create economic value for shareholders
- create economic value for the wider society
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With this case study you will see:
- Which are the most important impacts (material issues) Bursa Malaysia has identified;
- How Bursa Malaysia proceeded with stakeholder engagement, and
- What actions were taken by Bursa Malaysia to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020 Sustainability Report Bursa Malaysia identified a range of material issues, such as anti-fraud, bribery and corruption, cyber security and customer privacy, market integrity and stability, innovation and technology excellence. Among these, creating economic value for its stakeholders stands out as a key material issue for Bursa Malaysia.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Bursa Malaysia engages with:
| Stakeholder Group | Method of engagement |
| PLCs or potential PLCs
| · Meetings · Public/industry consultations · Focus group sessions/ dialogues · Engagement through emails, phone calls, surveys or other means · Circulars/directives · Communication notes · Advocacy programmes and workshops · Promotional roadshows and seminars · Enquiries via Listing Advisory Portal · BursaLINK · Site visits · Bursa Malaysia websites |
| Investors
| · Meetings · Public consultations · Focus group sessions/ dialogues · Engagement through emails, phone calls, surveys or other means · Local and overseas conferences (e.g. Invest Malaysia), advocacy programmes and workshops · Promotional roadshows, seminars, workshops and webinars · Bursa Malaysia’s various digital touchpoints (websites, mobile applications) · Social media platforms (e.g. Twitter, Facebook, Instagram) |
| Intermediaries
| · Meetings/visits · Public/industry consultations · Focus group sessions/ dialogues · Securities Market Operations Committee (SMOC) and Technical Working Group (TWG) comprising members from the stockbroking industry/broking community/custodian banks · Engagement through emails, phone calls, surveys · Circulars/directives · Communication notes · Advocacy programmes and workshops · Promotional roadshows and seminars · Bursa Malaysia websites · Bursa Malaysia Computer Emergency Response Team (BM-CERT) |
| Regulators and Government Agencies
| · Briefings, engagements and consultative sessions · Meetings/discussions · Jointly organised events/working groups · Active participation in industry working group such as BRIDGe · Reports regarding capital market developments or compliance with statutory obligations (e.g. Annual Regulatory Report) · Participation in various government related committees or working groups (e.g. Securities Commission Malaysia (SC) CG Council, Joint Committee on Climate Change (JC3), Corporate Integrity System Malaysia (CISM) Roundtable, National Special Committee on CG and Economic Action Council) |
| Employees
| · Meetings and several town hall sessions (virtual options) with feedback sessions · Training and engagement sessions on various topics (e.g. cyber security and social engineering test) · Employee Portal and Staff Zone · Bursa@Work emails · Other employee engagements · Activities (e.g. festive celebrations) |
| Shareholders and Analysts
| · Annual Reports · Annual General Meetings · Half-yearly analyst and media briefings · Meetings · Circulars · Bursa Malaysia websites |
| Industry associations, professional bodies and industry experts
| · Meetings · Public consultations · Focus group sessions/ dialogues · Engagements through emails, phone calls · Joint committees/task force with the industry (e.g. SMOC, TWG) · Collaborations to promote IPO through seminars and promotional events |
| Vendors and Suppliers | · Meetings/ presentations · Engagement through emails/ phone calls · Communication through tender notice/RFP/RFQ · Site visits · Bursa Malaysia websites · Tender briefings |
| Community groups
| · Meetings · Engagements via phone calls, emails/ letters · Bursa Malaysia websites |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Bursa Malaysia engaged with its stakeholders through an online survey and focus group sessions.
What actions were taken by Bursa Malaysia to create economic value for its stakeholders?
In its 2020 Sustainability Report Bursa Malaysia reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- Bursa Malaysia continues to invest in the professional development of its employees, as well as to create a conducive and engaging workplace. In 2020, Bursa Malaysia spent 6 million in staff costs.
- Creating economic value for the government
- Bursa Malaysia is committed to fulfilling its legal obligations and statutory duties by continuing its mandatory contributions to the government. In 2020, Bursa Malaysia paid 9 million in taxes.
- Creating economic value for shareholders
- Bursa Malaysia has a dividend policy where it commits to pay its shareholders an annual dividend of not less than 75% of its Profit After Tax and Minority Interest (PATAMI). In 2020, Bursa Malaysia paid 9 million in dividends.
- Creating economic value for the wider society
- Bursa Malaysia seeks to create lasting impacts on the wider society by undertaking community investment activities. Accordingly, Bursa Malaysia pledged to devote 1% of its Profit After Tax for 2020 to corporate social responsibility (CSR) activities, to be channelled through its foundation, Yayasan Bursa Malaysia (YBM). In 2020, Bursa Malaysia spent 2 million in community investment.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed
Disclosure 201-1 Direct economic value generated and distributed corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.1, 8.2
- Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
- Targets: 9.1, 9.4, 9.5
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References:
This case study is based on published information by Bursa Malaysia, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
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