July-August. 2026 | @ green • MAPAN ESG SUMMIT 2026 19

� Green financing in Malaysia demands real sustainable actions and credible data, not just polished ESG reports, to build trust and meet investor expectations.

�Strong ESG data management and aligned national investment incentives under the New Industrial Master Plan 2030 are crucial for attracting sustainable investments.

� Significant ESG awareness gaps remain among SMEs; government grants help, but businesses must proactively embed ESG to stay competitive.

The focus is shifting from simply having an ESG report to showing that sustainability is truly embedded in business operations.

At the MAPAN ESG Industry & Academic Summit 2026, panellists noted that while ESG ambition is important, trust is built through credible data, strong governance, and measurable action, not just good intentions.

Dr Shana Yong, Founder and CEO of ESGSolv Sdn Bhd, highlighted a key misconception in green financing: the belief that a strong sustainability report is sufficient.

“ Financial institutions are not financing the report,” she emphasised, underscoring that lenders want evidence of real sustainable practices, not just polished documents.

Lenders and investors now prioritise a business’ s sustainability performance, governance, and ability to transition to a low-carbon economy. Many companies struggle to meet these

SHAPING SUSTAINABLE FINANCE: Insights from industry experts. Left, Dr Hamim Syahrum; centre, Dr Shana Yong; right, Dr Syed Kamal Muzaffa. expectations due to unclear strategies, fragmented ESG data, or weak governance.

Sustainability reports lose credibility when they do not reflect real actions within an organisation. A polished report means little if decarbonisation, climate risk management, or stakeholder engagement are weak.

“ High-quality ESG reporting cannot compensate for weak operational sustainability,” added Shana.

TURNING ACTION INTO EVIDENCE

The answer, she suggested, is to treat reporting as the result of good sustainability practices rather than the starting point.

To progress, businesses should assess their governance, operations, risks, emissions, and data.

Identifying gaps enables them to create a focused sustainability roadmap with practical steps like decarbonisation, resource efficiency, circularity, responsible supply chains, and climate resilience.

Equally important is robust data management. Companies need to know who owns and oversees their ESG data, and ensure it can withstand investor scrutiny.

When sustainability outcomes are clear and measurable, reporting becomes a powerful tool to build confidence, reduce risk, and demonstrate readiness for a changing market. MAKING INVESTMENT WORK

Dr Syed Kamal Muzaffa, Director of Sustainability at MIDA, explains that the challenge extends beyond individual companies. Malaysia aims to attract investment that advances both its economic and sustainability goals.

To achieve this, investment incentives are now aligned with national priorities under the New Industrial Master Plan 2030 and National Investment Aspirations.

This strategy considers economic complexity, high-value jobs, local supply chains, industrial clusters, and inclusivity, while also prioritising sustainable practices like water and energy management and human-capacity development. Ultimately, the goal is to attract investments that strengthen Malaysia’ s ecosystem and build lasting domestic capabilities.

THE SME GAP

Achieving these ambitions depends on SME readiness, but MIDA’ s survey shows most still lack ESG awareness.

To help, MIDA launched the Domestic Investment Accelerator Fund for ESG, offering grants of up to RM500,000 for capacity building and sustainability systems. Yet financial support alone is not enough.

The discussion made it clear Malaysian businesses must treat ESG as essential for competitiveness, not just an obligation. Syed stressed the need for a proactive, government-supported approach.

Syed added:“ Under the ESG landscape, it is survival of the fittest.”

Green financing is about proving a business can deliver on its sustainability claims and is prepared for the future. The panel urged businesses to prioritise real outcomes over compliance and act now. – @ green