KUALA LUMPUR, 15 August 2024 – Funding Societies, Southeast Asia's largest unified digital finance platform for small and medium enterprises (“SMEs”), in collaboration with STACS ESGpedia, Asia’s leading ESG data and technology company, successfully hosted an ESG Gathering titled “Fostering Sustainable Growth: Empowering SMEs within Supply Chains Through ESG Reporting.” The event aimed to equip SMEs with the necessary tools and guidance to navigate the complex landscape of ESG reporting, thereby advancing their sustainability practices and enhancing business resilience. 

Mr Rizal Dato’ Nainy, CEO of SME Corp. Malaysia delivered the keynote speech, focusing on the critical role of ESG for SMEs and highlighted the government’s ongoing support for sustainability initiatives. He noted that integrating ESG principles into business operations is now essential for SMEs to remain competitive and resilient.  Besides Funding Societies and STACS ESGpedia, the event also features speakers from Capital Markets Malaysia (“CMM”) and Thoughts in Gear (“TIG”), underscoring the importance of collective action in driving sustainable growth. Speakers from CMM and TIG also contributed valuable insights into how SMEs can adopt and benefit from ESG practices. 

The importance of ESG reporting was further underscored by discussions on how it can drive innovation, enhance brand reputation, and attract investment opportunities. In an increasingly competitive market, SMEs that integrate ESG practices stand to benefit from stronger business resilience and improved access to capital. The gathering highlighted that the growing demand for transparent ESG disclosures from financial institutions, consumers, and regulatory bodies is not just a trend but a fundamental shift in how businesses operate in future.

Chai Kien Poon, Country Head, Funding Societies Malaysia, remarked,” 97% of businesses in Malaysia are SMEs. A common misconception persists that ESG is only relevant to large corporations and multinational companies (“MNCs”). However, SMEs within the corporate supply chain must also deal with more complex regulations, meet higher quality standards and adjust to specific demands of the corporate partners. SMEs often overlook the impact of ESG to their businesses. It is clear that SMEs must choose new and innovative strategies that allow their businesses to stay agile and collaborative. Especially, in the midst of increased regulatory and investor requirements for listed companies and MNCs to act on climate change and other environmental issues.”

“Funding Societies is committed to provide Malaysian SMEs with access to financing and support their journey towards adopting sustainable business practices. We are excited to extend our partnership with STACS ESGpedia in Malaysia to advance our mission. We hope this event will help to empower Malaysian SMEs to become more mindful of their activities and equip them with the resources needed to start their ESG journey.

Benjamin Soh, Founder and Managing Director at STACS ESGpedia, said: “As an ESG reporting platform in the Capital Markets Malaysia’s Simplified ESG Disclosure Guide (“SEDG”) Adopter Programme, we are delighted to be furthering our partnership with Funding Societies to facilitate ESG reporting amongst Malaysian SMEs. This will help SMEs in the country better position themselves and manage the increasing ESG regulatory requirements today. With SMEs contributing largely to Asia’s supply chains, digital enablement will be a key factor affecting the region’s supply chain competitiveness, especially for carbon-intensive markets.”

The ESG Gathering served as a significant step towards closing the ESG data gap among Malaysian SMEs, highlighting the importance of sustainable practices and providing the necessary tools to help SMEs thrive in an increasingly ESG-focused world.