Bursa Malaysia – IDX – SET Ink MOU To Drive Stronger Cross-Border Tie-Up Towards Inter-Regional ESG-linked Ecosystem

Bursa Malaysia Berhad (Bursa Malaysia) signed a Memorandum of Understanding (MoU) with Indonesia Stock Exchange (IDX) and the  Stock Exchange of Thailand (SET) on the sidelines of the 36th ASEAN Exchanges CEOs  Meeting. This MoU signifies the collective commitment of the three Exchanges to explore  the establishment of an inter-regional Environmental, Social, and Governance (ESG) linked  ecosystem that drives business value creation whilst fostering sustainable development  across ASEAN.

The MoU marks a significant milestone in enhancing regional cooperation and advancing  sustainability in ASEAN. It also signifies a commitment to greening supply chains, while recognising the potential to optimise the interconnectedness and comparability of ESG data within the region. 

By combining expertise and resources, Bursa Malaysia, IDX, and SET aim to collaboratively  spur the adoption of good ESG practices and drive responsible growth in their respective  markets, while offering cross-border opportunities related to ESG investments across the  three markets. 

The collaboration aims to identify commonalities within the ASEAN ESG ecosystem to facilitate cross-border trade, broaden business opportunities, and advance sustainable financing for corporations of all sizes and their supply chains in the region.  As part of the scope of collaboration outlined in the MoU, the three Exchanges will explore  a range of initiatives, including but not limited to:

• Identifying critical components of the ESG infrastructure to support companies in  pursuing decarbonisation and sustainability across their supply chains. • Establishing a “sandbox” environment designed to facilitate trade and create new  business opportunities for corporations and their supply chains, including small and  medium enterprises.

• Leveraging expertise in ESG practices through workshops, training sessions, and  knowledge-sharing programmes to support enhancement of the ESG ecosystem.

The MoU was signed by Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa  Malaysia; Iman Rachman, President Director of IDX; and Pakorn Peetathawatchai, President  of SET. The signing ceremony was witnessed by Wong Chiun Chiek, Director of Bursa  Intelligence for Bursa Malaysia; Jeffrey Hendrik, Director of Business Development for IDX;  and Soraphol Tulayasathien, Head of Corporate Strategy and Sustainable Market  Development for SET.

Datuk Muhamad Umar Swift of Bursa Malaysia stated, “We are pleased to formalise this  collaboration with SET and IDX. Through this partnership, we aim to enhance cross-border  cooperation and seize opportunities to harmonise ESG measures and ESG infrastructure that  promotes sustainable business practices in ASEAN. This MoU establishes the groundwork for  similar collaborations with other interested exchanges in Asia and lays a solid foundation  for engaging partners from the Global North as well.”

Iman Rachman of IDX expressed his enthusiasm for the partnership, stating, “This MoU  reflects our shared vision of creating a sustainable future for our capital markets. We believe  that collaboration is a key in driving positive change in the region. We look forward to work  closely with Bursa Malaysia and SET in developing innovative solutions that benefit our  stakeholders, and contribute to the development of resilient and responsible companies.”

Pakorn Peetathawatchai of SET commented, “SET is committed to promoting ESG practices  in the Thai capital market. This collaboration with Bursa Malaysia and IDX allows us to co create an interconnected ESG ecosystem, supports an integration of ASEAN markets as an asset class to attract international investors, as well as provides opportunities for  knowledge-sharing, enabling us to leverage each other’s strengths to create a more  sustainable future for our markets.”

The signing of this MoU builds on the recent commitment among ASEAN Exchanges to  standardise 10 Governance metrics for each ASEAN stock exchange to apply as guiding  disclosure principles among respective listed companies.

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