20/08/2025

ESG WEDNESDAY | AUG 20, 2025

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Shift in industrial asset disposal mindset

machinery. By facilitating resale, reallocation, and responsible decommissioning, platforms like BidMyAsset are helping to democratise access to capital assets while reducing unnecessary waste. Technology as enabler From blockchain-enabled traceability to integrated reporting dashboards, digital technology is revolutionising how businesses handle end-of-life assets. Online auction systems, real time asset tracking, and automated documentation are making the disposal process more accountable and efficient. These advancements allow businesses to align operations with ESG benchmarks while minimising the cost and effort typically associated with compliance. It also opens up a data trail that investors, regulators, and internal stakeholders can trust. Conclusion Sustainability in industrial operations no longer starts and ends with energy savings or emissions targets. It encompasses the full lifecycle of assets, from acquisition to responsible retirement. As ESG expectations rise and circular economy principles take root, businesses in Malaysia must treat asset disposal as a strategic priority. With platforms like BidMyAsset and clear regulatory roadmaps from Bursa Malaysia, the tools and guidance are now in place. The next step lies with companies – to act, to adapt, and to lead responsibly. Responsible asset disposal is no longer a compliance task; it’s a competitive advantage. Across the Asia-Pacific region, 18 out of 24 cities tracked by Knight Frank recorded stable or rising prime office rents year-on-year in Q2 2025. New supply added over 1.4 million sqm, but overall vacancy rates remained steady due to strong take up in India and parts of Southeast Asia. New completions are expected to add 6.8% to total office stock in Kuala Lumpur this year, sustaining a tenant favoured environment in the near term. However, the city’s cost advantage – estimated at just US$ 26.70 per sq ft annually – and continued infrastructure upgrades are expected to support its appeal to regional occupiers. While rental growth may remain moderate due to supply pressures, the market is seeing a clear shift toward quality-driven leasing, where well-designed, ESG-ready offices in integrated hubs continue to outperform. This article is contributed by BidMyAsset co-founder Jeevan Muniandy

AS environmental and social governance (ESG) becomes a key consideration for businesses in Malaysia and worldwide, many companies are re-examining how their day-to-day operations align with long-term sustainability goals. One area often overlooked in this process is industrial asset disposal, which is the management of equipment, machinery, and other capital goods once they reach the end of their productive life. Today, the way companies dispose of their industrial assets is becoming a new frontier in ESG performance, and those leading the shift are discovering unexpected economic and environmental returns. Traditionally seen as a backend administrative function, asset dis posal is now emerging as a vital piece of the ESG puzzle. As Malaysia progresses towards its national goal of carbon neutrality by 2050, supported by frameworks such as the National Energy Tran sition Roadmap (NETR) and Green Technology Master Plan, businesses are expected to contribute meaning fully, not just through emission reduction, but also through resource efficiency, waste minimisation, and circular economy practices. Reframing disposal as ESG lever The conventional approach to asset disposal – where decommissioned or surplus equipment is left to deteriorate in storage or sent to landfills – is rapidly losing ground. Businesses today are rethinking the o It is now strategic imperative for ESG and business resilience

offering. This enables businesses to not only track disposal outcomes but also to align with Bursa’s sustainability disclosure requirements and future proof their operations. Recent community-level efforts further reflect this shift: Ipoh City Council collected 25 tonnes of e waste in just five months (Jan–May 2024), while Sarikei District saw a 52% increase in recycling rates driven by its 3R and e-waste campaigns. The movement is growing from board rooms to municipal councils. Empowering SMEs, local industry Circular practices in asset disposal are not just a big-business concern. SMEs, which account for over 97% of business establishments in Malaysia, stand to gain significant economic value from access to pre-owned industrial equipment. These access allow smaller firms to upgrade or expand without the heavy capital outlay typically associated with new

solutions can address complex disposal needs while advancing national sustainability goals. These developments reflect a broader awareness that responsible decommissioning isn’t just an operational necessity – it’s a strategic lever for ESG-driven transformation. Transparency is now non-negotiable Transparency and traceability have become non-negotiables in ESG. Bursa Malaysia’s 2024 S ustainability Reporting Guide strongly encourages outcome-based reporting, where companies must back up their ESG narratives with quantifiable results, including emissions reductions, waste minimisation, and measurable resource efficiency. For example, BidMyAsset, a Malaysian industrial asset disposal platform, has begun embedding carbon savings metrics, asset lifecycle tracking, and audit-compliant disposal reports into its digital

end-of-life phase of their equipment, recognising it as a critical opportunity to advance ESG commitments, recover economic value, and reduce environmental impact. This mindset shift is closely aligned with the global momentum behind circular economy principles, now gaining traction across Malaysia’s key industrial sectors such as oil & gas, construction, and manufacturing. Locally, e-waste recovery initiatives have demonstrated how cross-sector collaboration can lead to impactful results. For example, public-private re cycling campaigns have successfully collected tens of thousands of electronic devices and diverted tonnes of hazardous materials from landfills through accessible collection models, including door-to-door pickup and postal return systems. On a larger scale, integrated waste management facilities in the country are proving how infrastructure-led

Sustainability an increasing influence in leasing decisions: Knight Frank KUALA LUMPUR: Kuala Lumpur’s prime office market held steady in Q2 2025, supported by demand for premium, transit-connected and ESG compliant buildings, according to Knight Frank’s latest Asia-Pacific Office Highlights report. newer assets in terms of tenant preference. Demand continues to concentrate in premium, well connected developments.

Prime office rents in the city centre averaged RM6.02 per sq ft per month, up 2.6% year-on-year and 0.2% quarter-on-quarter, reflecting resi lience in a selective leasing environ ment. The market continues to favour occupiers, with landlords focused on retaining tenants and enhancing offerings to meet evolving workspace expectations. “Demand continues to gravitate towards Grade A buildings with modern specifications and within integrated developments,” said Knight Frank Malaysia senior executive director of office strategy Teh Young Khean. “The market continues on a slow and steady trajectory, with a 1.2% improvement in vacancy rates and a 0.2% increase in rental compared to 1Q 2025.” In line with trends across Southeast

positioned to meet those needs – at a fraction of the price of markets like Singapore or Hong Kong.” Vacancy levels, while currently elevated at 23.4%, are showing signs of stabilisation. This reflects both the volume of legacy stock and the widening gap between older and

“Kuala Lumpur offers a compelling alternative for multinational firms re evaluating their footprint,” said Knight Frank Malaysi group managing director Keith Ooi. “As companies seek to optimise costs without sacrificing quality or ESG alignment, the city is well

Banking & Finance Kuala Lumpur stands out for offering best-in-class office speci fications at significantly lower occupancy costs than regional peers. Asia, leasing decisions are in creasingly influenced by sustain ability targets and portfolio conso lidation strategies.

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