Defence Ministry to embrace ESG framework for enhanced transparency, sustainability


KUALA LUMPUR: The Defence Ministry is moving towards adopting a comprehensive Environmental, Social and Governance (ESG) framework, says Datuk Seri Mohamed Khaled Nordin.

Its minister said his ministry would draw lessons from the private sector’s strong track record in transparency, sustainability and responsible management to strengthen public trust and institutional credibility.

"We acknowledge that there remains a wide gap between governance practices in the public sector and those in private companies, many of which have demonstrated impressive achievements in areas such as digitalisation, transparent procurement, sustainable business practices and the protection of workers’ rights.

"These efforts have helped companies become more resilient and competitive, while also boosting confidence among stakeholders and the public," he said.

Mohamed Khaled stated that ESG is not only being complied with in the private sector but is also being effectively implemented through strong leadership.

"The time has come for the ministry to adopt ESG principles in a more structured, holistic and disciplined manner.

"There is a need to learn from more advanced, proven and effective systems, even if it requires a fundamental reset in thinking and practices," he added.

He said national security considerations should no longer be used as a blanket justification to avoid becoming more open, dynamic, transparent and sustainable, noting that outdated mindsets, excessive bureaucracy and ineffective governance must be left behind.

"I call for the formation of a special task force to guide the development of an ESG framework tailored to the needs of national defence, with the aim of elevating the institution’s standing to a level that is more respected and credible," he said.

Looking ahead, Mohamed Khaled expressed hope that 2026 would mark a turning point toward a better era—one anchored in integrity, trust, and a shared belief that serving the nation is the highest duty.

Integrity, he said, must be firmly entrenched as a core value and act as a true bulwark of a trusted defence system, alongside a comprehensive and uncompromising fight against corruption and misconduct at every level of the national defence ecosystem.

 

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