Corporate Governance
East Asia and the Pacific
WHAT WE DO
IFC promotes good Corporate Governance in East Asia and the Pacific (EAP) by: (a)
working with firms to improve their governance; and (b) strengthening investment
climates in markets around the region.
HOW WE DO IT
IFC and the World Bank deliver corporate governance services at various levels of a
given market, including:

assessing a firm’s corporate governance practices and providing advice on how
to improve them;

providing specialized advisory services on board effectiveness, the control
environment and family business governance;

building capacity of local partners, institutes of directors, media, and educational
institutions on corporate governance services, training and reporting;

working with regulatory institutions and governments to improve corporate
governance laws, regulations, codes and listing requirements; and

raising awareness of corporate governance through conferences, workshops
and publication.
PROMOTING CORPORATE GOVERNANCE PRACTICES IN INVESTEE
COMPANIES
IFC’s Corporate Governance Methodology is a system of evaluating the corporate
governance risks and opportunities of client companies, applying the relevant set of
tools in the areas of commitment to good corporate governance practices, shareholder
rights, accountability and the board of directors, the control environment, and
disclosure and transparency.
IFC is the first development finance institution to undertake corporate governance
analysis of every investment transaction as part of its standard due diligence process.
This focused approach has been implemented for many years but it was formalized as
of July 1, 2011. This has helped IFC identify relevant corporate governance risks in our
clients and suggest appropriate solutions to address the risks and take advantage of
improvement opportunities. IFC now leverages this expertise and offers firm-level
services to other companies in the region on a selective basis in order to help build a
strong demonstration effect in the market.
EAST ASIA AND THE PACIFIC CORPORATE GOVERNANCE PROGRAM
The East Asia and the Pacific Corporate Governance Program, generously supported
by the Switzerland State Secretariat for Economic Affairs (SECO), promotes corporate
governance best practices and standards in various EAP markets. The program helps
improve investment climates, attract investment across markets, and enhance firm
performance to boost economic growth.
BACKGROUND
Corporate governance is defined as
the structures and processes by which
companies are directed and
controlled. Good corporate
governance helps companies operate
more efficiently, improve access to
capital, mitigate risk and safeguard
against mismanagement. It makes
companies more accountable and
transparent to investors and gives
them the tools to respond to
stakeholder concerns. Corporate
governance also contributes to
development. Increased access to
capital encourages new investments,
boosts economic growth, and provides
employment opportunities.
IFC CORPORATE
GOVERNANCE GROUP
The Group brings together staff from
investment support and advisory
operations into a single, global team.
This unified team advises on all
aspects of corporate governance and
offers targeted client services in areas
such as increasing board
effectiveness, improving the control
environment, and family business
governance. The Group also helps
support corporate governance
improvements and reform efforts in
emerging markets and developing
countries, while leveraging and
integrating knowledge tools, expertise,
and networks at the global and
regional levels.
OUR WORK SPANS MANY MARKETS AND MULTIPLE LEVELS
SELECTED REGIONAL
The IFC EAP Corporate Governance Program works in markets across the region,
RESULTS AND IMPACT AS OF
including China, Indonesia, Mongolia, and Vietnam. Our reach is continually
JUNE 2015:
expanding, with plans underway for additional activities in Cambodia, Lao People’s
Democratic Republic, Myanmar, the Philippines, and parts of the Pacific. These

More than 500 entities received
corporate governance advisory
services.

Direct firm engagements
facilitated more than $1.4 billion in
financing due in part to corporate
governance improvements.

More than 100 public-awareness
events attracted over 8,500
participants and 2,000 firms.

Over 350 trainers in countries
throughout the region received
training.

Partner-conducted workshops—
enabled through train-the-trainer
workshops—reached more than
7,000 executives.

14 laws, regulations, codes, and
policies in countries throughout
the region were improved.

More than 6,000 women at the
board and senior management
levels were trained and/or
attended corporate governance
events.
efforts come at a pivotal moment for the region, as market integration among the
Association of Southeast Asian Nations (ASEAN) moves forward. As goods, services,
and investments flow more freely across borders, companies will have to adopt
stronger corporate governance standards if they want to attract investors and remain
competitive.
Firm-level corporate governance initiatives alone will not help to address the range of
economic development challenges that nations in the region face. IFC is working at
multiple levels to improve the broader investment climate throughout the region.
Among IFC’s efforts in this arena are support for Indonesia’s newly created regulatory
agency as it created a corporate governance roadmap to strengthen the nation’s
governance regulatory framework and—in partnership with our World Bank
colleagues—technical advice for Vietnam’s lawmakers as they drafted the country’s
Law on Enterprises, which will take effect on July 1, 2015.
We also provide assistance to regulators in various markets as they revise their
corporate governance codes and regulations in support of investment climate
improvements. IFC’s governance advocacy includes partnering with institutes of
directors, the media, universities, associations, and other intermediaries on activities
such as awareness-raising and educational events and train-the-trainer workshops to
broaden the governance expertise base across the region.
HELPING INDIVIDUAL COMPANIES IMPROVE CORPORATE GOVERNANCE
Good corporate governance can help companies improve performance, increase
access to financing, and strengthen long-term sustainability. A fundamental aspect of
IFC’s EAP governance program involves direct work with firms to strengthen their
CONTACTS
governance frameworks. Typically, such efforts entail an initial assessment of the
company’s governance framework, identification of improvement opportunities, and a
Chris Razook | +852 9195 0991
tailored roadmap for the company to improve its practices over time. The
East Asia & the Pacific, Hong Kong
engagements follow the same methodology used for IFC’s own investments,
[email protected]
leveraging expertise that has been accumulated over the years and bringing an
investor’s perspective for the benefit of clients. The engagements examine overall
Leyal Savas | +84-8-3823-5266
board functioning and effectiveness, aspects of the company’s risk management and
East Asia & the Pacific,
control environment, shareholder and stakeholder practices, disclosure and
Ho Chi Minh City, Vietnam
transparency issues, and family governance for family-owned firms. IFC also
[email protected]
conducts training workshops and helps develop or modify governance-related
policies and procedures.
IFC brings a unique perspective to companies, stemming from our specific
investment activity as well as our regulatory and awareness-raising efforts aimed at
ifc.org/corporategovernance
June 2015
building strong investment climates across different markets. Our team includes
professionals who possess deep governance experience across all types of
companies, making use of internationally recognized tools and methods.
Oliver Orton | +20 (2) 2461-4220
Cairo, Egypt | [email protected]