KUALA LUMPUR: Environmental, social and governance (ESG) principles must become a way of life rather than be treated as a mere corporate reporting requirement if Malaysia is to remain competitive and achieve sustainable development, says Deputy Prime Minister Datuk Seri Fadillah Yusof.
Fadillah, who is also the Energy Transition and Water Transformation Minister, said ESG has evolved into a strategic framework that determines a country’s ability to attract quality investments, strengthen businesses, and improve the people’s well-being.
“ESG should not be seen merely as a compliance burden or a requirement to satisfy investors.
“It is a development framework that strengthens national competitiveness, builds business resilience and ensures today’s progress does not come at the expense of future generations,” he said when opening the Mapan ESG Summit here yesterday.
Fadillah warned that countries failing to adapt to the global shift towards sustainability risk losing investments, weakening industrial competitiveness and facing greater challenges in safeguarding public welfare.
He said the government had introduced several complementary policies, including the National Energy Transition Roadmap (NETR), the New Industrial Master Plan (NIMP) 2030, the National Entrepreneurship Policy 2030, and the Madani Economy framework to drive Malaysia’s transition towards a low-carbon, high-value economy.
Fadillah said the country’s sustainability agenda must benefit businesses of all sizes, particularly micro, small and medium enterprises, which constitute about 97% of businesses nationwide.
“ESG should be viewed as a strategic instrument to strengthen MSME competitiveness, improve access to financing and new markets, and ensure the transition to a low-carbon economy is fair and inclusive.”
Fadillah also said sustainability should create opportunities instead of becoming an added burden, noting that businesses embracing ESG would be better positioned to expand into international markets and attract strategic partners.
He reaffirmed Malaysia’s commitment to achieving net-zero greenhouse gas emissions by 2050, adding that the transition would be carried out in a practical and orderly manner while balancing economic growth, environmental protection and affordability.
“Our focus is on energy and water security, sustainability and, most importantly, affordability.
“There is no point producing energy if people cannot afford to pay for it.”
Fadillah also urged stronger collaboration among the government, industries, financial institutions, universities and civil society, saying sustainability challenges such as climate change, water security and global supply chain disruptions required a whole-of-nation approach.
“ESG should ultimately be measured by its impact on people’s lives rather than the number of policies introduced.
“The real success of ESG is when it improves living standards, strengthens family security and creates a better future for our children.”
