Transforming Malaysia into a Dynamic and Future-Ready Economy
High-quality corporate reporting plays a crucial role in Malaysia’s MADANI Economy framework, which aims to expand the economic pie, foster broader participation, and increase the complexity of the economy. Finance Minister II Datuk Seri Amir Hamzah Azizan emphasized the importance of transparent and robust disclosures in building trust, attracting high-quality investments, and strengthening linkages across industries.
The Role of Corporate Reporting
Amir Hamzah stressed that corporate reporting is not just about compliance, but about creating value and demonstrating resilience in an ever-evolving global landscape. He added that as Malaysia advances under the National Energy Transition Roadmap (NETR), sustainability reporting will be pivotal in aligning businesses with the country’s decarbonisation and green energy goals.
National Sustainability Reporting Framework (NSRF)
The NSRF, introduced by the Advisory Committee on Sustainability Reporting (ACSR), is a critical initiative in supporting businesses in their transition to sustainability. Starting in 2025, large-cap listed companies on Bursa Malaysia will be required to adopt the NSRF, followed by ACE Market issuers and large non-listed companies by 2027.
Supporting Businesses in the Transition
To support businesses in this transition, the ACSR has introduced the PACE initiative – Policy, Assumptions, Calculators, and Education. This initiative will provide resources and capacity-building programs to help companies, including small and medium enterprises (SMEs), adapt to the new reporting requirements.
Sustainability Targets
Malaysia is projected to require RM1.3 trillion by 2050 to meet its sustainability targets, covering renewable energy, energy efficiency, and green mobility. The government’s commitment to sustainable development and Malaysia’s aspiration to lead in green growth are reflected in the NSRF, combined with NETR and other national strategies.
NACRA 2024 Awards
At the 34th National Annual Corporate Report Awards (NACRA) 2024 presentation dinner, a total of 33 winners were celebrated amidst stiff competition from 49 participating organizations. NACRA 2024 is co-organized by Bursa Malaysia, Malaysian Institute of Accountants (MIA), and The Malaysian Institute of Certified Public Accountants (MICPA).
Conclusion
High-quality corporate reporting is essential in transforming Malaysia into a dynamic and future-ready economy. The government’s commitment to sustainability and the introduction of initiatives such as the NSRF and PACE will support businesses in their transition to sustainability. As Malaysia advances under the NETR, sustainability reporting will play a pivotal role in aligning businesses with the country’s decarbonisation and green energy goals.
FAQs
Q: What is the MADANI Economy framework?
A: The MADANI Economy framework aims to expand the economic pie, foster broader participation, and increase the complexity of the economy.
Q: What is the role of corporate reporting in the MADANI Economy framework?
A: Corporate reporting plays a crucial role in building trust, attracting high-quality investments, and strengthening linkages across industries.
Q: What is the National Sustainability Reporting Framework (NSRF)?
A: The NSRF is a critical initiative introduced by the Advisory Committee on Sustainability Reporting (ACSR) to support businesses in their transition to sustainability.
Q: When will large-cap listed companies on Bursa Malaysia be required to adopt the NSRF?
A: Large-cap listed companies on Bursa Malaysia will be required to adopt the NSRF starting in 2025.