On July 23rd, the Accounting and Financial Reporting Council of Hong Kong and the Securities Commission of Malaysia formalized a strategic partnership by signing a Memorandum of Understanding in Kuala Lumpur. This agreement aims to enhance cross-border regulatory cooperation between Hong Kong and Malaysia concerning audit oversight and financial reporting compliance.

The MOU establishes a framework for mutual consultation, information exchange, and assistance on matters related to auditor oversight and issuer financial reporting compliance. This encompasses areas such as auditor registration or recognition, inspections, investigations, inquiries, enforcement actions, monitoring, and case referrals.

Mr. Sun Tak-kei, Chairman of the AFRC, stated that this MOU reflects the shared priorities of the AFRC and the Malaysian Securities Commission in strengthening regulatory collaboration, upholding market integrity, and supporting the healthy development of their respective capital markets. He noted that closer future cooperation will further elevate the quality of financial reporting and auditing, thereby boosting confidence among investors and other stakeholders.

Dato' Seri Dr. Awang Adek Hussin, Chairman of the Securities Commission Malaysia, remarked that the Malaysia Capital Market Blueprint 2026-2030 aims to achieve stronger regional connectivity and cross-border investment. He emphasized that the MOU signed with the AFRC will foster robust cross-border cooperation, which is vital for maintaining trust and resilience in the capital markets.