What key corporate governance changes are in the proposed Mara Bill 2026?

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Key Corporate Governance Changes in the Proposed Mara Bill 2026

The proposed Majlis Amanah Rakyat (Mara) Bill 2026, slated for tabling in Parliament this year, introduces significant reforms primarily focused on enhancing corporate governance, with approximately 80% of its provisions dedicated to strengthening the institution's structure and management. These changes aim to preemptively address issues such as abuse of power, governance weaknesses, misappropriation, irregularities, financial leakages, waste, and overall risks to Mara.
Separation of Powers and Chairman's Role

A central element of the proposed Bill involves a reallocation of power, notably by reducing the Mara chairman's authority to primarily chairing the Board or Council and making decisions on policy matters. This directly contributes to a broader objective of establishing a clear separation of powers between the Mara Board and its management. This structural adjustment is designed to prevent the concentration of authority and promote a more balanced decision-making process within the organisation.
Enhanced Board Member Criteria and Oversight

The Bill introduces stringent 'fit and proper' criteria for individuals appointed to the Board, ensuring that members possess the necessary qualifications and integrity. Furthermore, it imposes limitations on the terms of service for Board members, a measure intended to foster fresh perspectives and mitigate the risks associated with prolonged tenures. To bolster oversight and accountability, the legislation mandates the establishment of several key Board committees, including dedicated Audit, Investment, Finance and Governance, and Risk committees.
Tightened Financial Governance and Syariah Compliance

Financial governance and procurement practices are set to be significantly tightened under the proposed Bill, with the aim of aligning them with both national and international standards. This includes measures to ensure greater transparency and efficiency in financial dealings. Uniquely, the Bill also provides for the establishment of a Syariah Committee for the first time, underscoring a commitment to ensuring that all Mara's operations are conducted in adherence to Syariah principles, thereby integrating religious and ethical considerations into its corporate framework.

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What key corporate governance changes are in the proposed Mara Bill 2026?

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