KUALA LUMPUR, June 26 — The government has no plans to implement law enforcement actions on environmental, social and governance (ESG) compliance by micro, small and medium enterprises (MSMEs) in this country.
Economy Minister Rafizi Ramli said the implementation and reporting of ESG practices by companies in Malaysia is currently voluntary and is encouraged for all listed public companies (PLCs) on Bursa Malaysia.
“Among MSMEs in general, the performance of ESG practices is still at a low level due to the lack of understanding on the importance of ESG,” he said during a question and answer session at the Dewan Negara today.
According to Rafizi, the Economy Ministry as the ministry that monitors the implementation of ESG in Malaysia will continue to intensify efforts to encourage the adoption of ESG among industry players.
He said the government’s focus today is to develop an ecosystem that is conducive to ensuring compliance and the introduction of ESG elements among MSMEs can be accelerated and not be burdensome.
“We need to encourage and provide appropriate incentives so that MSMEs can implement (ESG compliance) voluntarily.
“This ecosystem will cover aspects related to clear policies and guidelines, appropriate standards, sufficient funding and incentive elements as well as increased awareness and understanding,” he added. — Bernama
