KUALA LUMPUR, Oct 13 (Bernama) — Companies must have sustainability strategies if they aim to stay around longer and continue to benefit the stakeholders and community, said Securities Commission’s Executive Director, Strategic and Development, Goh Ching Yin.
He said the strategies included dealing with the material factors and addressing different stakeholders.
“The approaches might be costly but they were certainly the costs that they have to recognise,” he said.
Goh was one of the speakers who gave a presentation on ‘Branding Sustainability in Capital Markets’ at the Sustainable Brands Conference here today.
He said Bursa Malaysia’s recent launch of its sustainability guide was to bring various companies, which had a market capitalisation of RM2 billion, to come out with sustainability reports next year.
“This kind of initiative will enable listed companies to handle the development as they have the resources and the financial muscle,” he said.
Earlier, during his slide-show presentation, Goh said, Malaysia has registered a strong growth in the sustainable and responsible investment framework in Asia (after Indonesia, Singapore and Hong Kong), with an increase of 23 per cent in compound annual growth rate to US$15.09 million (US$1= RM4.13) in 2013 from US$9.96 million in 2011.
“In the Islamic finance segment, Malaysia remains strong with its Islamic capital market worth RM1.6 trillion. It has also maintained its position as the world’s largest sukuk market.
“Malaysia holds 34 per cent of the SRI market in Asia, driven by Islamic funds. However, the financial centres such as Hong Kong and Singapore are catching up,” he said.
The commission has introduced the SRI instruments (on Sukuk) into the market in October 2013. It was first announced in the 2014 Budget.
Originally published on www.bernama.com