@Green April/May 2025 | Page 30

ASEAN guide for SMEs
30 LOCAL NEWS
@ green | April-May, 2025

ESG and tech converge

MANUFACTURING makes up nearly a quarter of Malaysia’ s economy- approximately 23 per cent of Gross Domestic Product( GDP)- with major industrial centres in Selangor, Johor, Penang and Sarawak specialising in chemicals, automotive and electronics.

Against this backdrop, a coalition of government agencies, industry leaders and technology providers seized the opportunity to announce a major sustainability push: the launch of the ESG Public-Private Partnership, hosted by Glocomp Systems, Microsoft Malaysia and the Malaysia Digital Economy Corporation( MDEC), with support from the Federation of Malaysian Manufacturers( FMM) and the Malaysia Investment Development Authority( MIDA).
At the gathering, Minister of Digital Gobind Singh Deo underscored how integrating Environmental, Social and Governance
( ESG) principles with digital innovation can future-proof Malaysia’ s manufacturing base.
“ ESG adoption is not just necessary but critical for Malaysian manufacturers, and there are good reasons for this. Embracing ESG practices helps future-proof businesses.
“ By adopting sustainable practices, companies can better manage risks, optimise resources and build resilience against environmental and social challenges,” he said.
A key feature of the partnership is the Microsoft Cloud for Sustainability Pilot, which promises AI-driven analytics, real-time emissions tracking and automated ESG reporting.
Gobind explained:“ The integration of ESG principles encourages innovation and operational efficiency. By leveraging artificial intelligence( AI) and advanced digital tools, manufacturers can automate ESG reporting, track emissions in real-time, and optimise
� ESG REVOLUTION: Gobind Singh Deo( third from right) and industry partners at the launch of the ESG Public-Private Partnership in Subang Jaya.
It is revolutionising essential business functions, enhancing decision-making, and streamlining operations
energy usage.”
He also pointed out that meeting rigorous ESG standards is increasingly a prerequisite for accessing high-value export markets.
“ Manufacturers that embrace ESG principles will find it easier to access and expand into these markets, as compliance with international sustainability standards becomes a key competitive differentiator.
“ ESG-aligned operations open doors to global supply chains that prioritise responsible and transparent practices.”
Looking ahead, the initiative will be bolstered by the MIDA Domestic Investment Accelerator Fund, which reduces subscription costs for FMM members and ensures smaller firms can tap into these technologies.
Together, these efforts aim to lay the groundwork for a resilient, sustainable and prosperous“ Smart Manufacturing” ecosystem— powering Malaysia’ s competitiveness well into the future.

Bridging futures

MALAYSIA is set to host the Future-Ready ESG 2025 Conference on June 21 2025, at MAB Academy, KLIA, under the banner‘ Local Implementation, Regional Integration, Global Transformation’. The gathering will bring together regional and international stakeholders to advance environmental, social and governance( ESG) practices.
Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz will officially open the conference and deliver the keynote address titled‘ Malaysia and Asean: ESG Leadership in a Shared Regional Future’. His presence underscores the government’ s commitment to fostering sustainable investment, trade and industrial growth in line with global ESG standards.
Ireland’ s Ambassador to Malaysia, Orla Tunney, is also slated to speak, highlighting Ireland’ s inclusive approach to ESG and the deepening diplomatic ties between both nations.
The event is co-hosted by Asia e University’ s School of Professional and Executive Education Development, Universiti Teknologi Malaysia’ s Centre for Environmental Sustainability and Water Security, Intuition and MAB Academy. Delegates will include representatives from Malaysia Aviation Group, the UN Global Compact Network Malaysia & Brunei, the Malaysian Carbon Market Association and the ESG Association of Malaysia.
A key objective of the conference is to bridge the gap between ESG vision and practice, equipping local and regional actors with practical, scalable strategies for sustainable development.

ASEAN guide for SMEs

ON April 11 2025, the ASEAN Capital Markets Forum( ACMF) unveiled the inaugural ASEAN Simplified ESG Disclosure Guide for SMEs in Supply Chains( ASEDG) during the ASEAN Finance Ministers and Central Bank Governors Meeting.
The guide distilled complex global and national frameworks- including the IFRS Sustainability Disclosure Standards and the Global Reporting Initiative- into 38 essential disclosures.
It was structured into Basic, Intermediate and Advanced tiers to match
SMEs’ varying levels of ESG maturity. This means that an emerging food producer, for instance, could concentrate on fundamental environmental metrics, while a seasoned regional exporter might prioritise more sophisticated social or governance measures.
ACMF representatives explained that the tiered approach“ offered a practical way for SMEs to start or advance their ESG journey without getting overwhelmed.” By aligning priorities with each industry’ s
unique context, the guide enabled businesses to select metrics most relevant to their operations and stakeholders.
Securities Commission Malaysia Chairman and ACMF’ s 2025 Chair Mohammed Faiz Azmi, emphasised Malaysia’ s leadership role, stating:“ SC Malaysia, as the Chair of the ASEAN Capital Markets Forum( ACMF), is pleased to initiate the development of this guide as a valuable contribution to our ASEAN counterparts.
“ The ACMF remains committed to fostering sustainable and inclusive growth across the region. We encourage SMEs, investors, and all stakeholders to leverage this guide as a catalyst for meaningful ESG adoption.”
Designated as one of Malaysia’ s Priority Economic Deliverables under its ASEAN Chairmanship, the ASEDG was set to undergo further consultations and updates over the following six months to ensure it remained relevant in a rapidly evolving ESG landscape. @ green