Corporate Governance in Asian Perspective: Indonesia, Republic of Korea, Malaysia, and Thailand
Asian Development Bank Institute recently releases a new report about Corporate Governance Practice in Asia. The sample taken including Indonesia, Korea, Malaysia and Thailand. The report concluded that:
1. The Corporate governance rangkings are Malaysia, Thailand, Korea and Indonesia
2. Highest priority is the effectiveness of the boards of directors
3. Need more improvement in increasing of role from such stakeholders as employees and banks
Reading last two recommendations, we can see that the basic problem of corporate governance in Asia is refers to cultural problem. Which most of Asian company will face it within decade.
The Mckinsey firm also already state in its report that Asia's most pressing need is to improve the foundations of corporate governance, such as financial reporting, the independence of auditors, regulatory enforcement, and legal systems