SC and World Bank Collaborate to Elevate ESG Reporting Standards in Malaysia Moving Forward.
Kuala Lumpur, October 15, 2024 – The Securities Commission Malaysia (SC) and the World Bank unveiled the “ESG Disclosure Assessment of Malaysia’s Listed Companies and Recommendations for Policy Development” at the SC-World Bank Conference 2024. This report provides a baseline for ESG reporting practices, aiming to align Malaysia’s corporate disclosures with global standards and foster sustainable investments.
The joint assessment focuses on the state of Environmental, Social, and Governance (ESG) disclosures among 90 Bursa Malaysia-listed companies and some of the country’s largest asset owners. The findings are intended to help companies and investors adopt better practices and remain competitive in the evolving global market.
“Improved ESG disclosures will bolster investor confidence and ensure that Malaysia’s capital market remains resilient and future-ready,” said Sharifatul Hanizah Said Ali, Executive Director of the SC’s Islamic Capital Market, at the event.
The assessment, conducted from August to December 2023, highlights the following:
– Larger companies have better ESG reporting practices than smaller ones.
– Regulatory compliance remains the key driver of ESG disclosure in Malaysia.
– While corporate governance and social issues are well managed, environmental indicators, particularly related to climate change and biodiversity, require further attention.
– ESG reporting by Malaysian asset owners remains limited, but interviews indicate a growing commitment to strengthening these practices.
The report also offers several recommendations to enhance Malaysia’s ESG landscape:
1. Support broader adoption of Bursa Malaysia’s sustainability reporting guidelines.
2. Encourage local investors to develop stronger ESG practices, improving the appeal of corporate disclosures.
3. Ensure continuous monitoring and consultation to align with the recently launched National Sustainability Reporting Framework (NSRF).
The conference, officiated by YB Liew Chin Tong, Deputy Minister of Investment, Trade, and Industry, brought together over 200 participants, including entrepreneurs, government agencies, financial institutions, and venture capital firms. Discussions explored ways to bridge funding gaps for micro, small, and medium enterprises (MSMEs) and mid-tier companies, in line with the SC’s five-year roadmap (2024-2028) aimed at improving capital market access.
Dr. Zafer Mustafaoğlu, World Bank Country Director, emphasised the importance of knowledge-sharing between Malaysia and the World Bank to develop a sustainable financing ecosystem:
“By leveraging global expertise, we aim to address both MSME funding and climate financing gaps, supporting Malaysia’s financial sector development.”
The full ESG disclosure report is available at: (https://www.sc.com.my/resources/publications-and-research/esg-disclosure-assessment).
