Kuala lumpur: Entrepreneurs and businesses in Selangor already have a solid foundation in driving an economy aligned with the Environmental, Social and Governance (ESG) principles, despite compliance challenges that are not unique to Malaysia, said State Investment, Trade and Mobility Committee chairman Ng Sze Han.
According to BERNAMA News Agency, Sidec Sdn Bhd is spearheading efforts to help small and medium enterprise (SME) entrepreneurs transition towards more sustainable, ESG-compliant operations. Ng Sze Han stated that incentives are in place to support this ecosystem, even as the European Union Parliament has repealed much of the regulations under the Corporate Sustainability Reporting and Due Diligence Directive, making those rules more flexible. This change affects over 90 percent of companies that were previously required to comply with ESG regulations.
Ng addressed a query from Mu’izzuddeen Mahyuddin (PN-Hulu Bernam) regarding the number of entrepreneurs and businesses in Selangor that have already shifted to ESG-aligned sustainable operations. He acknowledged the challenges and compliance issues faced by SMEs, including limited ESG awareness, cash flow constraints, and a lack of internal expertise and capacity to measure ESG performance.
The state government, through Sidec Sdn Bhd and relevant agencies, is actively promoting ESG initiatives among SME entrepreneurs and businesses. This includes organizing the SME ESG Summit to raise awareness of the importance and benefits of adopting ESG practices. Initiatives like the Selangor Accelerator Programme (SAP) and E-Commerce Xccelerator (ECX) incorporate ESG elements in their training and mentorship initiatives. The state’s development blueprint, First Selangor Plan (RS-1), emphasizes Sustainability and Effective Governance as core strategic themes.
Ng highlighted that several high-impact projects under the Southern Selangor Integrated Regional Development (IDRISS) are ESG-driven. Notably, the NCT Smart Industrial Park has been announced as the first smart industrial park guided by ESG principles. He mentioned ongoing engagements with Bursa Malaysia to finalize and implement the ecosystem incentives by 2027.