THE Securities Commission Malaysia (SC) today unveiled its approach to managing instances of non-compliance with sustainability reporting requirements, emphasising a pragmatic and supportive method as companies transition to the IFRS® Sustainability Disclosure Standards (ISSB Standards).
The Advisory Committee on Sustainability Reporting (ACSR), chaired by the SC, will work alongside Bank Negara Malaysia, Bursa Malaysia, the Companies Commission of Malaysia, and the Audit Oversight Board to review disclosures in a phased and practical manner.
The strategy acknowledges that companies are at different stages of readiness and face challenges including limited resources, access to quality external data, and the technical expertise needed for robust reporting.
Dato’ Mohammad Faiz Azmi, Chairman of the SC, said, “We recognise the challenges companies face in meeting the new sustainability reporting standards due to, among others, a lack of resources, the quality of external data or the difficulty in obtaining necessary expertise.
“Our approach is to balance the need for compliance with the varied levels of readiness across reporting entities.”
The National Sustainability Reporting Framework (NSRF), launched in September 2024, is applicable to listed issuers on Bursa Malaysia’s Main and ACE Markets as well as large non-listed companies with annual revenues of RM2 billion or more. It represents a significant step in advancing Malaysia’s corporate sustainability agenda.
Under the SC’s approach, emphasis will be placed on capacity building and skills enhancement during the review process to ensure meaningful and consistent disclosure of sustainable information.
Non-compliance will generally be addressed through active engagement and corrective measures. Entities that fail to take corrective action may face enforcement action by the relevant authorities.
For serious or willful breaches, including fraudulent or misleading disclosures, enforcement measures will remain essential to maintain standards and protect the public interest.
For further inquiries, reporting entities and stakeholders may contact the ACSR Secretariat at [[email protected]](mailto:[email protected]).
The ACSR comprises representatives from the Securities Commission, Audit Oversight Board, Bank Negara Malaysia, Companies Commission of Malaysia, Bursa Malaysia, and the Financial Reporting Foundation, tasked with supporting the implementation of IFRS Sustainability Disclosure Standards in Malaysia and overseeing the sustainability assurance framework. - December 8, 2025
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