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Business trends

Japan and Malaysia trade places in corporate governance rankings

Anti-corruption efforts lift Kuala Lumpur while Tokyo scored poorly on board independence

The arrest of former Nissan Motor chairman Carlos Ghosn has raised questions about the company's corporate governance. (Photo by Mamoru Yago)

HONG KONG -- Japan is falling behind its regional peers in corporate governance while Malaysia is making marked improvements, according to a new report by the Asian Corporate Governance Association.

In the survey, conducted every two years, the association this time ranked Japan 7th, its lowest showing by far over the past decade and down from 4th in the 2016 edition. The country was weighed down by poor scores for the independence and diversity of its corporate boards of directors, due in part to the application of a stricter interpretation of survey criteria.

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