Ewon urges MSMEs to integrate ESG practices to access global market

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GEORGE TOWN: Micro, small and medium enterprises (MSME) have been urged to integrate environmental, social and governance (ESG) practices into their b...

: Micro, small and medium enterprises have been urged to integrate environmental, social and governance practices into their business operations to gain more opportunities in the global market.said currently, more and more large companies, government-linked companies and multinational companies are using ESG practices as one of the criteria for risk assessment when making investment-related decisions and procurement of supplies or services.

“The National SME Development Council, chaired by Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi, will convene this November to deliberate on the guidelines before it is announced and launched. He said apart from meeting the increasing demand for ESG elements from stakeholders, MSME needs to take the same steps to obtain continuous market access, remain in the existing supply chain, expand its market through participation in a new supply chain or attract new investment for business expansion.

SME Corp chief executive officer Rizal Nainy said as many as 60 MSMEs and approximately 20 large enterprises consisting of GLCs and MNCs will participate in the session, which will likely generate transactions amounting to RM10 million.

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