Alliance Bank Malaysia Berhad (Alliance Bank) and SME Corporation Malaysia (SME Corp) signed a Memorandum of Understanding (MoU) today (Oct 18), as a joint effort in assisting MSMEs to adopt environment, social and governance (ESG) practices.
The MoU marks the commitment by both parties to continue working together to develop and provide sectoral-focused ESG guides, practical tools, as well as corresponding green financing to assist MSMEs in the ESG adoption journey.
The partnership kicked off with a roundtable discussion jointly organised by Alliance Bank and SME Corp. Malaysia in Penang where 19 representatives from various stakeholders came together to share their views on the ESG landscape in Malaysia and how it is affecting businesses locally.
The insights from the roundtable will also form valuable input to the upcoming ESG Symposium co-organised by Alliance Bank, UN Global Compact Network Malaysia and Brunei (UNGCMYB) and Monash University later this month.
This will then lead to the creation of ESG sectoral playbooks that will enable faster learning and adoption of ESG practices by SMEs.
SME Corp chief executive officer Rizal Nainy said implementation of PKSlestari aims to encourage and accelerate the adoption of ESG practices among MSMEs by developing an SME sustainability ecosystem.
“Understandably, it will take some time for SMEs to acquire the relevant knowledge and expertise to drive sustainability in their operations.
“Nevertheless, SMEs should start their efforts in this direction by taking small but sure steps to help chart their journey towards a sustainable industry, to foster long-term value creation for the companies and their stakeholders,” said Rizal.
Alliance Bank group chief executive officer Kellee Kam said that the bank have always championed the needs of SMEs and see an urgent need for them to start transitioning to become more ESG-oriented in order to build business resilience as well as capture growth opportunities.
“Alliance Bank is honoured to be working alongside partners who share our values and together, help advance sustainability particularly among the SMEs who are the backbone of our nation,” said Kellee.
Both organisations will also advocate for sustainable practices through market surveys, industry focus groups and panel discussions in order to garner grassroots input and feedback from MSMEs themselves.
Earlier this year, Alliance Bank and SME Corp, along with UNGCMYB had also jointly commissioned the ESG survey report, which found three out of five SMEs here believe adopting ESG practices in their businesses helps create a long-term value, stronger workforce and increased business opportunities.
