TA Research said the NSRF would mark a critical shift towards global best practices in sustainability reporting.
PETALING JAYA: The National Sustainability Reporting Framework (NSRF) is expected to improve transparency, accountability, and the availability of key sustainability data, making it easier for investors to assess corporate sustainability performances in Malaysia.
This level of disclosure will further strengthen the trust and confidence of investors, policymakers and civil society, according to TA Research.
“Malaysia’s adherence to global standards positions it as a competitive player in international markets, with the new standards supporting better decision-making related to sustainability challenges across the economy and environment,” the research house wrote in a report yesterday.
Malaysia launched the National Sustainability Reporting Framework (NSRF) on Tuesday.
Developed by the Advisory Committee on Sustainability Reporting (ACSR), an inter-agency committee comprising representatives from the Securities Commission (SC), Audit Oversight Board of the SC and Bank Negara, the NSRF is designed to elevate corporate sustainability reporting to globally recognised standards set by the International Sustainability Standards Board (ISSB).
“The adoption of ISSB standards presents an opportunity for Malaysian companies to ensure their sustainability disclosures are globally consistent and comparable. With over 20 jurisdictions, collectively representing 55% of the global economy and moving toward ISSB standards, Malaysia’s commitment to these benchmarks enhances its appeal as an investment destination,” TA Research said.
Overall, the research house said, the NSRF would mark a critical shift towards global best practices in sustainability reporting, offering a robust platform for companies to enhance their environmental, social and governance credentials.
“With the phased implementation, Malaysia is creating a conducive environment for businesses to adapt while maintaining competitiveness, ensuring that the country is well-positioned to meet its sustainability goals,” TA Research said.
“The framework not only strengthens the corporate landscape but also reinforces Malaysia’s commitment to becoming a leading sustainable economy in the region,” it added.
However, TA Research pointed out, while Malaysia’s NSRF offers tremendous potential to elevate corporate sustainability practices to global standards, challenges, especially for smaller firms, must be addressed to ensure widespread adoption.
“We believe that proactive measures, including support for micro, small and medium enterprises; streamlined Scope 3 reporting; and cross-sector collaboration will be key to unlocking the full benefits of the framework,” the research house said.
Under the NSRF’s phased and developmental implementation approach, Main Market-listed issuers on Bursa Malaysia with capitalisations exceeding RM2bil will begin adopting the standards in 2025, with full compliance expected by 2027.
Smaller listed issuers will follow in 2026, with full compliance by 2028, while ACE Market issuers and non-listed entities with annual revenues exceeding RM2bil will be expected to adopt the framework by 2027, achieving full compliance by 2030.
“This staggered timeline is reasonable and provides companies with ample time to adopt the new standards. It also ensures that companies across different sectors and scales are aligned with global best-practices without disrupting business operations,” TA Research said.
