S’GOR ENTREPRENEURS, BUSINESSES HAVE STRONG FOUNDATION TO DRIVE ESG ECONOMY - EXCO

SHAH ALAM, Nov 21 (Bernama) -- 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.

He said Sidec Sdn Bhd is spearheading efforts to help small and medium enterprise (SME) entrepreneurs transition towards more sustainable, ESG-compliant operations.

“We already have a strong foundation to roll out incentives that support this ecosystem…even though the European Union (EU) Parliament has voted to repeal much of the regulations under the Corporate Sustainability Reporting and Due Diligence Directive (CSRDD), making those rules more flexible.

“This means that more than 90 per cent of companies that were previously required to comply with ESG regulations will no longer need to do so. The change was driven by pressure from business associations in the United States,” he said during the Selangor State Legislative Assembly sitting here today.

He was replying to a question from Mu’izzuddeen Mahyuddin (PN-Hulu Bernam), who enquired about the number of entrepreneurs and businesses in Selangor that have already shifted to ESG-aligned sustainable operations.

Ng said the government is aware of the challenges and compliance issues faced by SMEs, including limited ESG awareness, cash flow constraints and the lack of internal expertise and capacity to measure ESG performance.

To this end, he said the state government, through Sidec Sdn Bhd and relevant agencies, is actively promoting ESG initiatives among SME entrepreneurs and businesses, including organising the SME ESG Summit to raise awareness of the importance and benefits of adopting ESC practices.

He said that the Selangor Accelerator Programme (SAP) and E-Commerce Xccelerator (ECX) incorporate ESG elements in their training and mentorship initiatives, adding that the state’s development blueprint, First Selangor Plan (RS-1), highlights Sustainability and Effective Governance as core strategic themes, reinforcing the role of ESG in driving Selangor’s economic growth.

Ng added that several high-impact projects under the Southern Selangor Integrated Regional Development (IDRISS) are ESG-driven, including the NCT Smart Industrial Park, which has been announced as the first smart industrial park guided by ESG principles.

“We already have a strong foundation to implement incentives for this ecosystem, which will be finalised in early 2026 and implemented the following year. Engagements with Bursa Malaysia are also underway to realise this initiative,” he added.

-- BERNAMA