Based on an analysis conducted between August and December 2023, the report reviewed the ESG disclosures of 90 companies listed on Bursa Malaysia and several large asset owners.
It found that while Malaysian companies generally display strong corporate disclosures and governance practices, there is room for improvement in environmental reporting, particularly in addressing climate change and biodiversity.
Larger companies tended to have better ESG disclosure rates compared to smaller firms.
Regulatory compliance was identified as the main driver for corporate ESG reporting in Malaysia.
However, the report noted that four major asset owners had relatively low levels of public ESG disclosure, though interviews suggested they are working to improve their internal ESG practices.
The report offers several recommendations, including continuous monitoring and consultations to ensure the effective implementation of ESG disclosures in line with the National Sustainability Reporting Framework (NSRF).
It also emphasizes further support for Bursa Malaysia’s sustainability reporting guidelines and encourages domestic investors to strengthen their ESG practices.
The SC-World Bank Conference, where the report was launched, is now in its fifth year and focuses on improving access to capital for micro, small, and medium enterprises (MSMEs) and mid-tier companies (MTCs).
This year’s event attracted over 200 participants, including entrepreneurs, government agencies, financial institutions, and venture capital firms.
Sharifatul Hanizah Said Ali
SC Executive Director of Islamic Capital Market Sharifatul Hanizah Said Ali shared,
“This joint report reflects our ongoing commitment to fostering a more sustainable capital market.
Improved ESG disclosure practices are expected to strengthen investor confidence and ensure that our market remains competitive and future-ready.”
Dr. Zafer Mustafaoğlu
Dr. Zafer Mustafaoğlu, World Bank Country Director for the Philippines, Malaysia, and Brunei Darussalam, said,
“Through our knowledge-based collaboration, we aim to support effective policy design and implementation to address the MSME and climate financing gaps, and I look forward to further leveraging the World Bank’s global expertise to support the Malaysian government, financial regulators, and the private sector in developing a more robust and resilient financing ecosystem for MSMEs.”
