04/08/2026

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TUESDAY | AUG 4, 2026

Step up and help M’sia meet climate goals, businesses told

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

KUALA LUMPUR: The Companies Commission of Malaysia (SSM) is strengthening Malaysia’s corporate regulatory framework by introducing amendments to the Companies Act 2016 to enhance sustainability re porting requirements. SSM CEO Datuk Nor Azimah Abd Aziz ( pic ) said the proposed revision adopts a phased and proportionate approach for large, non-listed companies, as well as a voluntary approach for all SMEs. This recognises that businesses have different capabilities while providing sufficient time to prepare for future reporting requirements. Azimah noted that the proposed amendments will complement the National Sustainability Reporting Framework and reinforce directors’ accountability for sustainability-related and non-financial information disclosure that promotes greater corporate PETALING JAYA: Malaysia cannot meet its climate commitments without businesses stepping up, as the country’s transition to a low carbon economy requires collective action from industry, businesses and communities alongside government policies, Deputy Natural Resources and Environmental Sustainability Minister Syed Ibrahim Syed Noh said. Speaking at Nestle Malaysia Bhd’s net zero milestone event yesterday, Syed Ibrahim said while the govern ment could provide the policy framework, incentives and an enabling environment for decarbonisation, achieving the country’s climate goals ultimately depends on action across the private sector and society. “The government can set the direction, we can introduce the right policies and create an enabling environment, but the transition ultimately has to happen on the ground. It has to happen across our industries, businesses and, of course, communities,” he added. Syed Ibrahim said Malaysia’s Third Nationally Determined Contribution (NDC 3.0), submitted to the United Nations Framework Convention on Climate Change in October 2025, commits the country to an absolute reduction of between 15 million and 30 million tonnes of greenhouse gas emissions by 2035 from its projected peak emissions level. “Malaysia was also among the first five Asean countries to submit its third NDC,” he added. The transition to a low-carbon economy was not only an environ mental necessity but also an economic opportunity that would enhance Malaysia’s competitiveness and strengthen the position of Malaysian companies in meeting the evolving expectations of consumers, investors and global markets, Syed Ibrahim said. “We need more companies like Nestle willing to invest for the long term, collaborate across sectors and be transparent about both their

o Becoming a low carbon economy requires collective action from private sector and society alongside govt policies: Deputy minister Congratulating Nestle Malaysia on reducing its greenhouse gas emissions by 31% in 2025 against its 2018 baseline, surpassing its initial target of 20%, Syed Ibrahim said, the achievement demonstrated that effective climate action could be pursued alongside business growth and long-term value creation. “This achievement not only reflects the company’s continued com mitment and investment in advancing its sustainability agenda, but also demonstrates that effective climate action can be pursued alongside business growth and the creation of long-term value,” he added. The achievement, the deputy minister said, showed sustainability and business growth need not be competing priorities and expressed hope that the milestone would encourage the company to continue advancing its decarbonisation efforts. Syed Ibrahim said Nestle Malaysia’s transition to renewable electricity across its operations aligns with the National Energy Transition Roadmap, achievements and the work that remains ahead,” he added.

Syed Ibrahim (centre) and Nestle Malaysia CEO Juan Aranols (right) at the showcase highlighting the company’s sustainability journey and progress towards net zero.

“Whether reducing emissions, improving recycling or restoring nature, these efforts are interconnected and contribute to the wider transformation towards a more sustainable future,” he said. Sustainability is ultimately a shared responsibility and urged all stakeholders to build on the momentum of corporate climate action, Syed Ibrahim said. “The transition we speak about is not something waiting for through

framework that is practical, balanced and responsive to the needs of Malaysian businesses, while en couraging meaningful stakeholder participation. SSM will develop the sustainability reporting framework collaboratively with businesses, industry pro fessionals and other stakeholders to ensure it is practical, effective and fit for purpose. “Organisations that integrate sustainability into their governance, strategy and risk management processes will be better positioned to anticipate change, respond to emerging risks and seize new opportunities in an increasingly competitive global economy. “Achieving this requires forward looking, accountable leadership that is committed to creating long-term value. “Malaysia has also made significant progress in advancing its sustain ability agenda, driven by the col circular economy requires not only recycling infrastructure but also sustained public education and behavioural change. “We can talk about emissions, we can talk about circular economy, climate targets, but ultimately these efforts must translate into actions that people can understand and practise.” Syed Ibrahim also highlighted the importance of protecting and restoring natural ecosystems, saying such efforts strengthen biodiversity and climate resilience while reflecting the Islamic principle of Mizan, or balance, between economic development and environ mental stewardship.

under which Malaysia is working towards renewable energy accounting for 70% of installed electricity gen eration capacity by 2050. However, he stressed that cor porate sustainability must extend beyond reducing emissions within manufacturing facilities. “But sustainability cannot stop at the factory gate, right? As such, I am also pleased to see the wider scope of efforts showcased today, from reducing packaging impact and strengthening community recycling, to restoring our natural ecosystems and encouraging environmental awareness among young Malay sians,” Syed Ibrahim said. He emphasised that building a

us in the future. It is already happening, and all of us have a role in deciding how far and how fast we want to move.”

See also page 14

transparency. Ű BY JOHN GILBERT sunbiz@thesundaily.com SSM to enhance framework for sustainability reporting by companies

lective efforts of regulators, busi nesses, investors and professionals,“ Azimah said. She said all organisations share a responsibility to build on this mo mentum. “Our collective success will be measured not only by the commit ments we make, but by our ability to translate those commitments into credible action. “I encourage everyone to make full use of the National Climate Gover-nance Summit 2026 platform to exchange ideas, challenge conventional thinking and explore practical solutions to strengthen climate governance across our organisations. “It is my hope that this summit will not only deepen our under standing of the challenges ahead but also inspire meaningful part nerships and concrete actions that will help build a more resilient future for Malaysia,“ Azimah said.

of an environmental, social and governance policy. “While SSM is not a climate policy regulator but rather the country’s cor porate registry, it plays an important role in streng thening the corporate gover nance framework that enables businesses to res pond responsibly to climate related risks and oppor

“As a regulatory body, the agency plays a fundamental role in fostering a corporate ecosystem founded on good governance and accountability. “At SSM, we now re

gulate more than 720,000 active companies, 1.7 mil lion micro-businesses com prised of sole proprietor ships and partnerships, as well as 40,000 active limited liability partnerships across Malaysia. “Given the scale and diversity of Malaysia’s corporate ecosystem, strengthening transparency, ac countability and sustainable business practices is essential to enhancing the country’s long-term economic resi lience. “This commitment is reflected in SSM’s Fourth Strategic Direction Plan for 2026–2030, which identifies sus tainability as one of its key strategic priorities, including the development

tunities,“ Azimah told delegates at the National Climate Governance Summit 2026 yesterday. As part of this initiative, Azimah said, SSM issued a consultative document on April 30, outlining pro posed amendments to the Com panies Act 2016 relating to sus tainability reporting, with the aim of gathering feedback from stake holders on the proposed policy direction and legislative changes. The consultative approach reflects SSM’s commitment to develop a legal