Proposed amendments to the Companies Act 2016 to mandate sustainability disclosures for non-listed companies are expected to be tabled in Parliament by early next year, says the Companies Commission of Malaysia (SSM).
In response to queries from StarESG, SSM said in a statement that the tabling of the amendments will be subject to review and approval by relevant authorities.
Earlier in April, the SSM invited public feedback on the proposed amendments through a consultative document, which outlined a phased implementation timeline for sustainability reporting starting from 2028, based on revenue and employee thresholds.
Under the proposal, the reporting requirement would apply to non-listed companies with annual revenue exceeding RM15mil.
“SSM also takes into consideration the fact that there will be relevant legislations which shall be amended in accordance with the National Sustainability Reporting Framework (NSRF). The proposed amendments to the Companies Act 2016 will be harmonised with the respective legislation,” it said.
Launched in 2024, the NSRF requires non-listed companies with annual revenue of RM2bil and above to report in accordance with the IFRS Sustainability Disclosure Standards from 2027.
SSM’s proposed amendments would broaden the scope by extending the requirement to non-listed companies with revenue exceeding RM15mil, under a phased implementation beginning in 2028.
Non-listed companies with annual revenue below RM15mil or fewer than 100 employees are not subject to sustainability reporting requirements, but they can opt in voluntarily.
SSM said it had received feedback from a diverse range of stakeholders, including industry players, non-governmental organisations, government agencies and professional bodies.
The commission is currently reviewing the feedback, following the extended submission deadline on June 16.
“A detailed report will be prepared and discussed within SSM and with the relevant stakeholders.
“Further stakeholder engagements will be conducted to ensure the policies and proposed amendments to the Companies Act 2016 align
with Malaysia’s sustainability agenda, particularly the NSRF,”
it added.
SSM said it will introduce awareness and outreach programmes such as training sessions, workshops and engagement sessions to support non-listed companies, particularly small and medium enterprises, in adopting sustainability practices and advancing their sustainability reporting journey.
It will also develop guidance materials and practical tools, and continue collaborating with relevant agencies, industry associations and professional bodies to ensure a cohesive and supportive ecosystem.
