This paper outlines recent milestones in Malaysia's efforts to raise the standards of corporate governance and directors' duties. Much has been achieved concerning the regulation of listed companies. This can be attributed in lager part to the overhaul of the Listing Requirements of the Burs Malaysia Securities Bhd, which occurred in 2001 as a response to recommendations of the High Level Finance Committee. The next challenge involves the reformulation of core provisions of the Companies Act 1965 regulating directors' duties and related party transactions. This reform task is currently in the hands of the newly constituted Corporate Law Reform Committee.