Kota Kinabalu: Micro, small and medium enterprises (MSMEs) in Malaysia must adopt environmental, social and governance (ESG) practices or risk being excluded from global supply chains, said Entrepreneur Development and Cooperatives Minister Datuk Ewon Benedick.
He said large corporations, including government-linked companies and multinationals, are increasingly making ESG compliance a key criterion in procurement and investment decisions.
“ESG is not just a trend, it is the future. It’s not solely about protecting the environment, but also about responsible business conduct towards workers and society, along with transparent and ethical governance.
“Although ESG compliance is not yet mandatory, it is becoming increasingly urgent, particularly across both domestic and international supply chains,” he said.
Ewon was speaking at the opening of the ESG Awareness Seminar for MSMEs in Kota Kinabalu, Saturday.
Also in attendance were Universiti Malaysia Sabah vice-chancellor Professor Datuk Dr Kasim Mansor, SME Corp Malaysia Chairman Tan Sri Bernard Giluk Dompok, and SME Corp Malaysia chief executive officer Rizal Nainy.
Ewon said the seminar was timely in strengthening MSMEs’ understanding of ESG and their readiness to implement it in day-to-day operations.
He said the initiative also reflects the ministry’s ongoing commitment, through its agencies, to foster ESG awareness and adoption among MSMEs.
“This is particularly important to enable MSMEs to integrate into the supply chains of GLCs and multinational firms, as well as to access international markets where ESG practices are increasingly a basic requirement,” he said.
Ewon added that SME Corp Malaysia introduced ESG Guidelines for MSMEs early last year as part of efforts to raise awareness and build capacity among local entrepreneurs.
