By Ashley Sim
KUCHING, May 13: A total of 66 per cent of small and medium-sized enterprises (SMEs) in Sarawak have already begun integrating Environmental, Social and Governance (ESG) practices into their operations, according to a newly launched report.
The inaugural Sarawak SME ESG Report, titled ‘Navigating ESG in Sarawak: Insights From SMEs’, was launched by Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg during the Hydrogen Economy Forum (H2EF) at a prominent hotel here today.
The report, developed by Alliance Bank Malaysia Berhad (Alliance Bank) in collaboration with the Sarawak government, InvestSarawak, Monash University Malaysia, and the United Nations Global Compact Network Malaysia & Brunei (UNGCMYB), provides insights into ESG awareness, adoption levels, and key challenges faced by SMEs in Sarawak, along with practical recommendations to support their sustainability journey.
Based on the report, 62 per cent of SMEs in Sarawak are aware of ESG principles, while 98 per cent of non-adopters expressed intent to adopt them, with 59 per cent planning to act within the next two years.
“The leading motivators for SMEs to adopt ESG practices include meeting the evolving expectations of consumers, suppliers, and investors.
“Despite these positive trends, challenges such as limited resources, staffing constraints, and navigating various ESG frameworks were cited as key barriers to wider adoption,” Alliance Bank said in a press release.
In the report’s foreword, Abang Johari reaffirmed Sarawak’s commitment to embedding sustainability at the heart of its economic development, in line with the Post Covid-19 Development Strategy 2030 (PCDS 2030).
“This comprehensive report not only underscores the progress made by Sarawakian businesses but also highlights areas where support and intervention are necessary.
“By aligning their practices with ESG principles, SMEs can bolster their resilience, competitiveness, and contribute significantly to Sarawak’s sustainable future,” he said.
Meanwhile, Deputy Premier Datuk Amar Awang Tengah Ali Hasan, in the foreword, noted, “Our companies are becoming increasingly aware of the importance of ESG principles and are actively seeking pathways to implement them,” emphasising the strategic role of ESG practices in strengthening Sarawak’s economic competitiveness and resilience.
Alliance Bank Group Group chief executive officer (CEO) Kellee Kam said the findings illustrate real challenges faced by SMEs, such as limited resources, staffing constraints, lack of clarity due to fragmented ESG frameworks, and difficulties accessing financing.
He expressed hope that the report will serve as a critical guide to help SMEs build capacity and enhance competitiveness.
InvestSarawak CEO Timothy Ong and Monash University Malaysia president Professor Dato Adeeba Kamarulzaman also underscored the importance of cross-sector collaboration and evidence-based policymaking to support ESG adoption and enhance business resilience in the State. — DayakDaily
