On 9 November 2025, the meeting of the ASOSAI Working Group on the Audit of State-Owned Enterprises (SOEs) was held under the chairmanship of SAI Malaysia.

In her opening remarks, Ms. Dato' Seri Wan Suraya Wan Mohd Radzi, Auditor-General of Malaysia, emphasized that the Group’s primary mission is to enhance transparency, accountability, and the quality of SOE governance across the ASOSAI community through professional cooperation, knowledge-sharing, and innovation.

More than 230 representatives from 24 SAIs participated in the event. The participants discussed ongoing projects and future work directions, including the development of the ASOSAI SOE Audit Guidelines. The document to be based on leading audit practices and INTOSAI and OECD standards is designed to harmonize approaches to evaluating the performance of state-owned enterprises. The Guidelines will provide a structured five-stage audit process: planning, analysis of financial indicators and risks, preparation of audit conclusions and recommendations, follow-up on recommendation implementation, and assessment of audit quality. In addition to evaluating financial statements and legal compliance, special attention will be paid to environmental, social, and governance (ESG) aspects of SOE operations. This approach will enable a comprehensive assessment of SOE performance and long-term resilience. The final document is expected to be completed by June 2026.

Representatives of the SAIs of Brunei, Maldives, Pakistan and Vietnam shared their national practices in SOE audit, noting common structural challenges related to corporate governance, financial sustainability, and operational transparency. Among the issues highlighted were high debt burdens and dependence on state subsidies, weak internal controls, and the absence of unified reporting standards and long-term planning. Participants agreed on the need to adopt a risk-based approach to SOE audits, promote digitalization, and further develop methodologies for performance auditing.

The Head of the OECD Corporate Governance Unit, Ms. Sara Sultan, presented innovative approaches to SOE governance and outlined the recent updates to the OECD Guidelines on Corporate Governance of State-Owned Enterprises, the only internationally recognized global standard in this field. The 2024 revision introduced strengthened requirements for board independence, enhanced operational accountability, and integration of ESG considerations. According to Ms. Sultan, a key challenge is maintaining an appropriate balance between commercial objectives and the fulfilment of public obligations. Excessive state interference or blurred governance functions can lead to declining efficiency and increased financial risks. She also presented preliminary findings of the upcoming SOE Performance Report, to be published in 2026. The report will provide cross-country comparative analysis of SOE performance, current global trends, and governance challenges.