Frankie Liew receiving a souvenir from Marina Abd Ghanie after the courtesy call.

KOTA KINABALU (April 14): The Sabah Economic Development and Investment Authority (Sedia) has continued engaging with businesses on Environmental, Social and Governance (ESG) practices.

On April 13, the agency met with the Sabah China Chamber of Commerce (SCCC) to discuss and gather feedback on the implementation of ESG frameworks among small and medium-sized enterprises (SMEs) in Sabah.

SCCC President Datuk Frankie Liew welcomed the Sedia delegation and expressed appreciation for the agency’s courtesy call, noting that such engagements are important in strengthening collaboration between the public and private sectors.

Sedia Chief Technology and Talent Development Officer Marina Abd Ghanie said that although the government has not made ESG practices mandatory for businesses in Sabah, it encourages adoption to align with the United Nations Sustainable Development Goals (SDGs).

She noted that businesses in Peninsular Malaysia and Sarawak have been quicker in adopting ESG practices, while the adoption rate in Sabah remains relatively low.

“ESG has been around for about two years. We want to gather feedback from businesses in Sabah,” she said.

“We are not here to tell businesses that ESG is mandatory, but to help bridge the gap so they can adopt ESG practices.

“We aim to work with local consultants and conduct training courses to help businesses comply with ESG requirements.

“We also plan to develop programmes to guide them towards ESG reporting,” she added.

ESG is used by investors and stakeholders to measure a company’s sustainability, ethical impact, and operational risks.

It goes beyond financial metrics by evaluating how companies manage environmental impact, human relationships, and corporate governance to ensure long-term, responsible growth.

SCCC Deputy President Brett Chua said the chamber is ready to collaborate with Sedia on ESG implementation and enquired about incentives and training programmes to encourage wider adoption.

“We have organised several dialogues and conferences on ESG, but many companies here are either not ready or not fully aware of it.

“ESG is especially important for export-oriented businesses, particularly those dealing with markets like Europe.

“While we are aware of ESG, we have yet to fully implement it. Some practices comply, while others do not,” he said.

SCCC Vice President Ir. Ts. Tan KJ, JP described Sedia’s visit as timely in raising awareness of ESG among members.

He added that collaboration between Sedia and SCCC has strengthened efforts to promote economic development and investment opportunities in Sabah.

Tan, an engineering consultant, highlighted cost as a major barrier to ESG adoption among SMEs, noting that uptake would depend on government support and incentives.

“Without government assistance, it will be difficult to encourage SMEs to comply with ESG. Like e-invoicing, ESG represents an additional cost,” he said.

SCCC Women Entrepreneurs Chairperson Tan Siew Ling suggested that SMEs and manufacturers, as taxpayers, should not be charged for ESG-related courses and seminars.

Marina responded that similar concerns had been raised by other business chambers and associations.

She said Sedia would compile feedback and submit a policy proposal to the government, including potential incentives.

“Entrepreneurs should not view ESG as a cost, but as a value and an opportunity for transformation,” she said, adding that ESG-related conferences would be organised.

SCCC Vice President Datuk Jonathan Koh JP noted that Sabah has established an ESG Chapter, which conducts training and assessments for private sector companies.

Working in collaboration with organisations such as Invest Sabah Berhad and Universiti Malaysia Sabah, the Sabah ESG Chapter plays a key role in organising forums and awareness programmes to promote sustainable practices among businesses and the public sector.

Koh added that banks are also playing an important role by organising seminars and providing ESG self-assessment tools.

“Most banks have established ESG platforms to help companies assess their level of compliance,” he said.

During the dialogue, SCCC also briefed Sedia on its participation in events in China to promote investment and Sabah products, and invited the agency to take part in upcoming expos.

Accompanying Marina during the visit were Sedia Senior Executive Justin Janim, Senior Manager Audrey Lin and Administrative Officer Meurel Davlen.

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