From left: Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia; Pakorn Peetathawatchai, President of SET; and Iman Rachman, President Director of IDX sign the MoU for their respective exchanges
KUALA LUMPUR: Bursa Malaysia Bhd
has inked a memorandum of understanding with the stock exchanges of Indonesia and Thailand to explore the establishment of an inter-regional environmental, social and governance (ESG)-linked ecosystem that drives business value creation and fosters sustainable development in Asean.
In a statement, Malaysia's stock exchange operator said the MoU marks a significant milestone in enhancing regional cooperation and advancing sustainability in Asean.
"It also signifies a commitment to greening supply chains, while recognising the potential to optimise the interconnectedness and comparability of ESG data within the region," it said.
The collaboration with the Indonesia Stock Exchange (IDX) and the Stock Exchange of Thailand (SET) aims to spur the adoption of good ESG practices and drive responsible growth in their respective markets, while offering cross-border opportunities related to ESG investments across the three markets.
According to the statements, the three exchanges will explore initaitives including identifying critical components of the ESG infrastructure to support companies in pursuing decarbonisation and sustainability across their supply chains.
The partnership will also establish a “sandbox” environment designed to facilitate trade and create new business opportunities for corporations and their supply chains, including small and medium enterprises.
In addition, it will leverage expertise in ESG practices through workshops, training sessions and knowledge-sharing programmes to support enhancement of the ESG ecosystem.
"Through this partnership, we aim to enhance cross-border cooperation and seize opportunities to harmonise ESG measures and ESG infrastructure that promotes sustainable business practices in Asean.
"This MoU establishes the groundwork for similar collaborations with other interested exchanges in Asia and lays a solid foundation for engaging partners from the Global North as well,” said Bursa Malaysia CEO Datuk Muhamad Umar Swift.
