According to the Securities Commission of Malaysia (SC), Malaysia received strong ratings from the World Bank in its Corporate Governance Report on Observance of Standards and Codes 2012. The SC said the bank also reported that Malaysia has been recognised as a regional leader in corporate governance and has made substantial progress in improving the legal and regulatory framework in terms of corporate governance. The report stated that Malaysia’s overall scores are higher than the average scores of countries within the Asian region. The World Bank acknowledges the large capital market in Malaysia, along with strong institutions, sophisticated participants and high quality accounting practices. The report is an independent assessment carried out by the World Bank. It examines the country’s report corporate governance framework benchmarked against the Organisation for Economic Cooperation and Development (OECD) Principles for Corporate Governance. This is the third time that Malaysia has participated in the assessment, with the first being in 2001 and the second in 2006. Malaysia scored the highest in terms of equitable treatment of stakeholders, enforcement and institutional framework as well as disclosure and transparency.