KUALA LUMPUR – The government has no plans to implement law enforcement actions on environmental, social, and governance (ESG) compliance by micro, small, and medium enterprises (MSMEs).
Economy Minister Rafizi Ramli said the implementation and reporting of ESG practices by companies is currently voluntary and is encouraged for all companies listed 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 the country 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, June 26, 2023
