Corporate governance more than just following rules, says RHB founder

Corporate governance in Malaysia is evolving beyond merely following regulatory guidelines, according to RHB Group founder Abdul Rashid Hussain. In his address at the inaugural Financial Lines Forum 2026 organized by Chan Ban Eng & Co and Universiti Malaya, Rashid stressed that directors and business leaders must accept personal accountability for the outcomes of their decisions.

Compliance with laws and regulations is insufficient to ensure responsible corporate governance, especially when those decisions could significantly impact shareholders, employees, and the public at large. "Governance is not just about following rules. It is about taking responsibility for the consequences of the decisions you make," Rashid emphasized.

Rashid, who serves as chairman of Tabung Haji, emphasized that corporate leaders should employ sound judgment and consider the broader implications of their actions rather than merely assessing whether a decision is technically permissible. He argued that the focus should not only be on legal compliance but on whether the decision is morally right and socially responsible.

The founder of RHB Group pointed out that the evolution of corporate governance has often been triggered by crises. Major corporate failures have historically led to the introduction of new rules and safeguards. However, Rashid cautioned against turning governance into a mere compliance exercise. Directors must go beyond meeting minimal regulatory requirements and engage in principled decision-making.

He stressed that corporate boards should foster an environment where challenging questions can be raised and decisions scrutinized before issues become unmanageable. "Ultimately, governance depends on people. Rules can guide behavior, but they cannot replace judgment, integrity, and personal responsibility," Rashid concluded. The forum convened legal, medical, insurance, and corporate leaders to discuss liability, governance, and the emerging risks confronting organizations.