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       PETALING JAYA: The 30% Club Malaysia is putting in motion various initiatives to have more women on the boards of local public listed companies (PLCs).

       It is striving to achieve the target of a 30% representation of women on the boards of PLCs over the next few years.

       The move to have at least one woman director for all PLCs under Budget 2022 is timely and a shot in the arm for a more representation of the gender at the board level.

       The government has made it mandatory for all PLCs to comply with the ruling to have at least one woman director in all large cap companies by September next year and in all other listed companies by January 2023.

       The 30% Club Malaysia is part of a global campaign led by chairs and CEOs taking action to increase diversity, equity and inclusion (DEI) at board and senior management levels.

       The 30% Club new chair, who is also the CEO of Maybank Kim Eng Group, Ami Moris told StarBiz that she is confident the target would be met over the next few years.

       Highlighting on the data, she added that as at July 1, 2021, women representation on the boards of the top 100 Malaysian PLCs stood at 25.5%, 4.5 percentage points away from reaching the 30% pivotal point.

       In addition, she noted that women occupied 17% of total board seats of companies listed on Bursa Malaysia, an increase of 6.3 percentage points from 2015. Currently, there are four all-male boards in the Top 100 PLCs.

       Global data shows that companies with at least 30% women on their board deliver better results, Ami added.

       Boards with at least one-third women representation correlates with 38% higher median return on equity than boards with no women representation, according to The Malaysia Board Diversity Study & Index 2021.

       Based on the study, companies that have directors from more than three different ethnic backgrounds show stronger correlation with higher valuations.

       A research by McKinsey in 2020 noted that companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability than companies in the fourth quartile.

       The Malaysia chapter of the 30% Club, she said along with some guided directions from the Securities Commission (SC) and Bursa Malaysia, has done a remarkable job at working with the top 100 PLCs in the country.

       “Our mission over the next 12 months will be to continue mobilising the collective of chairs and CEOs to achieve the 30% pivotal point among the top 100 PLCs while starting to engage the next 100 PLCs and also the fast movers on Bursa Malaysia.

       “Secondly, we will create awareness amongst startups and Leap market listed companies, so they get started on the right foot by leveraging the “30% business case” to ensure they set the best foundation for future success,” she said.

       Supporting the 30% Club missions, regulators and investors are also helping to shape corporate behaviours.

       With both the Malaysian Code on Corporate Governance (MCCG) 2021 from the SC and Ministry of Finance’s recently announced PLC Transformation Programme driven by Bursa Malaysia, Ami said much support could be counted on as they bring structure to DEI.

       “We hope the announcement under Budget 2022 encourages companies to recognise the business value of a diverse boardroom, starting with gender diversity, and compel them to action before the deadlines, especially since MCCG does require all PLC boards to comprise at least 30% women directors or otherwise disclose its plans to achieve this target within three years or less.

       “One of the successful initiatives that the 30% Club has carried out is the Board Mentoring Scheme, which was established in collaboration with PwC Malaysia in 2017.

       “The board mentoring scheme accelerates the appointment of more women into board positions as well as enhances diversity and inclusion in public listed companies. To date, 68 women have successfully undertaken this nine-month mentoring scheme with 33% already appointed to company boards,” she added.

       As to the challenges of having more women representation at board levels, Ami said the board and senior management of a lot of companies have been a man’s world for many years. But this is set to change, she noted.

       “There are two reasons for this change. Firstly, I believe a diverse board is more likely to bring differing points of view to the table and to break away from group-think, increasing chances of being more inclusive of stakeholder interests.

       “Secondly, in order to harness diversity in points of views, lone voices are likely to be less effective. One woman amongst a board of men, can be challenging. The 30% pivot is designed to challenge the bias of group-think,” Ami said.