01/10/2024

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TUESDAY | OCT 1, 2024

Malaysia moves up 3 spots in Global Innovation Index

Implementing global standards key to enhancing country’s competitiveness: IIAM KUALA LUMPUR: The implementation of global internal auditing standards will help enhance Malaysia’s competitiveness, said Institute of Internal Auditors Malaysia (IIAM) president Mohd Khaidzir Shahari. He emphasised that Malaysia has the potential to rise from fifth place among 12 Asia-Pacific markets in the Corporate Governance Monitoring Report 2023, due to companies’ commitment to adopting the Global Internal Audit Standards, which will come into effect on Jan 9, 2025. “The global standards, which are based on 15 guiding principles, enable boards of directors, management, and other functions to collaborate with internal auditors to address challenges and seize opportunities. “These standards provide guidance for regulatory bodies to align with international best practices and enhance governance in areas such as environmental, social and governance (ESG), as well as cybersecurity,” he said in a media session at the IIAM National Conference 2024 yesterday. He said that with increasing complexity and sensitivity, SMEs need to strengthen their integrity, transparency, and trust. “This is a crucial step in building quality and sustainable businesses.” Mohd Khaidzir said internal auditors play a key role in ensuring organisations are sustainable and ethical. “They are vital in the long term by establishing a competitive governance framework and adapting to the complexities of the digital age, cybersecurity threats, and sustainability challenges. “The new global standards set minimum requirements for internal audits to be implemented, regardless of whether they are in the commercial or public sector, or whether they are from large or small organisations. “Consistently implementing these standards will enhance the profession and foster trust, reliability, and confidence in the work of internal auditors worldwide,” said Mohd Khaidzir. - by AIMIE SHAZRIE Department to audit 2,000 GLCs next year KUALA LUMPUR: The National Audit Department (NAD) is set to conduct audits on 2,000 government linked companies next year as part of its efforts to usher in a new era of enhanced governance in Malaysia. The initiative follows the recent approval of amendments to the Audit Act 1957 in July. After 33 years, the amendments significantly expand the powers of the Auditor General. This allows for a clearer and more transparent overview of public expenditure in Malaysia. Auditor General Datuk Wan Suraya Mohd Radzi said that the full implementation of this initiative is expected to commence early next year with a more innovative approach. She added that NAD will undergo full digitisation next year, particularly in regard to audit execution and data analysis. “Therefore, we are collaborating with various stakeholders to gain insights into these new technologies,” she said during a discussion at the 2024 National Conference of the International Institute of Auditors Malaysia yesterday. - by AIMIE SHAZRIE

maintained performance in several key areas. The country remains second in the most innovative countries category for upper middle-income countries and continues to rank first in three critical sub-indicators: graduates in science and engineering, high-tech exports, and creative goods exports. In addition, Kuala Lumpur broke into the list of the Top 100 Science and Technology Clusters in the world for the first time, ranking 93rd. However, Chang said that despite this achievement, Malaysia must continue to increase investment in research and development (R&D). According to the latest data, he said Malaysia’s gross domestic expenditure on research and development (GERD) is at 1%, far behind developed countries such as South Korea (4.93%) and Japan (3.41%). “These are the percentages of developed countries where they

invest heavily in R&D. We need to improve in this area.” To reach the goal of being in the top 30 countries by 2025, Chang said, Malaysia needs to boost R&D investment, with the government expected to invest around RM26 billion annually and the private sector about RM60 billion to achieve a GERD target of 3.5% by 2030. Looking ahead, Mosti will launch the Malaysia Innovation Index (MII) in 2025, a platform that will measure innovation levels in each state, allowing for targeted interventions to strengthen innovation eco systems nationwide. “This achievement is an important step towards becoming a world-class innovative nation. However, our efforts cannot stop here. We must continue to explore and invest in innovations that can translate into sustainable and continuous progress to achieve the goals of the Madani Economy,“ said the minister.

“This is also the result of the coordinated efforts of all ministries, agencies, and other stakeholders through the Inter-Agency GII Competitiveness Monitoring Com mittee, established in 2021 under Mosti,” Chang said at a media conference yesterday. This is an encouraging improvement as Malaysia had remained stagnant at number 36 for three years (2021 to 2023), he added. “Now, in 2024, we’ve risen to 33rd, and our goal under the 12th Malaysia Plan is to break into the top 30. We are hopeful that by next year, in 2025, we will secure a place in the top 30,” said Chang. He added that the GII, issued by World Intellectual Property Organization, is an important index used by countries and multinational companies to assess innovation ecosystems and aid in policy making and investment decisions. Malaysia managed to strengthen its overall position but also

o Ranking of 33rd for 2024 is highest since 2016

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

PUTRAJAYA: Malaysia ranked 33rd out of 133 countries in the 2024 Global Innovation Index (GII) – the highest achievement since 2016. Science, Technology, and Innovation Minister Chang Lih Kang said the improved ranking is a testament to the Malaysia Madani government’s commitment to building a strong and synergistic innovation ecosystem. “Our improved international ranking demonstrates our ability to compete globally, particularly in the fields of science and technology.

Flexible, adaptable governance framework crucial in tech-driven era: Deputy minister

Ű BY AIMIE SHAZRIE sunbiz@thesundaily.com

KUALA LUMPUR: A flexible and forward-looking governance framework is crucial in an era driven by technological advancements, said Deputy Finance Minister Lim Hui Ying. She said the world is navigating an era of profound transformation where it is fuelled by rapid environmental challenges and evolving societal expectations “In such a world, good governance is no longer a luxury, but it is an absolute necessity,” she said at the launch of the Institute of Internal Auditors Malaysia (IIAM) National Conference 2024 yesterday. Lim highlighted the shifting role of internal auditors, urging them to go beyond their traditional function as watchdogs and instead embrace their position as strategic partners in shaping the future of institutions. “It is imperative for internal auditors to explore new avenues to contribute to an environment where trust, accountability and transparency are the cornerstones of every decision we make,” she said. Lim lauded IIAM for its leadership in integrating environmental, social and governance standards and cybersecurity measures into audit frameworks, noting the importance of these pillars for the future of governance.

Institute of Internal

Auditors Malaysia

president Mohd Khaidzir Shahari (right) presenting a souvenir to Lim as Auditor General Datuk Wan Suraya Wan Mohd Radzi looks on.

and prepared for future challenges. “By integrating sustainability principles, leveraging technology, and fostering transparency, we can create a governance framework that serves not only our current needs but those of generations to come,” she said. Meanwhile, the conference is aimed at generating discussions on the evolving role of internal auditors, particularly in the context of sustainability, technology and ethical governance.

to the Audit Act 1957 as a “historic moment” for enhancing the auditor general’s oversight capabilities. “This move allows the Auditor General’s Office to expand its reach and authority, providing deeper insights into public spending and ensuring that public trust in government institutions remains strong.” Lim emphasised the need for collaboration among government bodies, private organisations and audit professionals to build a governance model that is adaptable

“IIAM continues to build a community of auditors who are ready to lead the way in integrating resilience into every aspect of organisational performance,” she said. She shared insights into the government’s ongoing efforts to raise governance standards, citing the National Audit Department’s transformative projects, which emphasise digitalisation and risk based auditing. Lim pointed to the amendment