ESGAM President and Experts Lead Urgent Call for SMEs to Prioritize ESG at Malaysian SME National Conference
The Malaysian SME National Conference, organized by KSI Strategic Institute for Asia Pacific, featured an essential session titled “SMEs and ESGs – Advancing Sustainability”. This session, moderated by Mr. Eddie Hu,, brought together distinguished speakers, including ESGAM President Adj. Practice Professor Cheah Kok Hoong, Ms. Oy Cheng Phang Cheng, Ms. Sarah Ee Lyn Yeoh, Ms. Tiffany Yong, and Dr Mazlan Ahmad. They discussed the growing importance of ESG goals for SMEs, emphasizing the need for these enterprises to transition towards ESG adoption and compliance to remain competitive in both sustainable financing and international markets.
Prof. Cheah underscored the criticality of ESG adoption for the survival and competitiveness of SMEs. He pointed out that although SMEs contribute significantly to Malaysia’s GDP, particularly in exports, only a small fraction have utilized the Malaysian government fund allocated for supporting ESG initiatives. He advised SMEs to ask their buyers about specific ESG compliance requirements and to look internally to identify areas for improvement. Prof. Cheah emphasized that ESG adoption would soon become mandatory, especially for export-oriented businesses, and called on SMEs to incorporate ESG into their business strategies proactively.
Ms. Phang emphasized the inherent resilience of SMEs and the importance of ESG for business survival amidst external pressures such as EU regulations and human rights issues. Phang advised SMEs to understand their materiality issues, and leverage data effectively to set realistic goals and KPIs. Data, she stressed, is king and must make sense to drive meaningful ESG strategies. Ms. Sarah echoed these sentiments, urging SMEs to engage in ESG training and seminars to fully grasp ESG concepts and ensure rigorous data collection and reporting. She pointed out that banks are increasingly willing to provide low-interest loans for ESG-compliant projects but emphasized the need for SMEs to present comprehensive sustainability plans. Ms. Tiffany addressed the confusion many SMEs face regarding ESG strategies and reporting, urging them to engage with stakeholders, understand carbon credits, and build ESG frameworks into their management systems. Dr. Mazlan Ahmad stressed that ESG compliance is no longer voluntary and that many companies are caught off guard by new legislation. He highlighted the need for SMEs to rebrand and monetize their ESG efforts, integrating ESG principles to influence customers and ensure business sustainability.
The panel concluded with a unanimous call to action for SMEs to prioritize ESG, emphasizing that it is crucial not only for securing financing but also for sustainable growth and competitiveness in the global market. By placing adequate priority on ESG, SMEs can navigate the evolving regulatory landscape, meet international standards, and leverage new opportunities for economic growth.