The government has announced the launch of ESG standards to help companies transition to renewable energy.

By Paul A. Davies, Farhana Sharmeen, Michael D. Green, and James Bee

On 11 April 2023, the Malaysian government announced that it will introduce a framework on environmental, social, and corporate governance (ESG) standards by the end of 2023. The framework will aim to assist small and medium sized enterprises (SMEs) in relation to funding and capacity building, and to support the transition to renewable energy.

The Malaysian government recognised that a number of export markets require ESG compliance from exporters, and that SMEs in particular need further assistance in this regard. The framework will involve consultations to consider the current position of the Malaysian export industry.