MYBURSA CORPORATE GOVERNANCE RATINGS : SOFT ACCOUNTABILITY, HARD LEGAL RISKS

The introduction of Corporate Governance (CG) ratings on Malaysia's MyBursa platform represents a shift from narrative-based disclosures to quantifiable governance benchmarking. This article examines the legal and regulatory implications of this market-driven accountability mechanism within Malaysia's corporate governance landscape. While the CG ratings system enhances transparency and market discipline, it introduces potential legal risks for directors, including evidentiary use in litigation and heightened fiduciary scrutiny. Drawing on recent empirical evidence from Malaysian listed companies, this article identifies critical challenges including superficial compliance, methodological opacity, and regulatory overlap. The article concludes with recommendations for enhancing the ratings system's legitimacy and ensuring it serves as a genuine catalyst for governance improvement rather than mere cosmetic compliance.