ESG Deals Creation and Impact Investing in Malaysia

Southeast Asia’s rapid economic growth and urbanisation have given rise to significant environmental challenges in recent years. Malaysia in particular has made encouraging progress in its sustainability commitments, spurred by initiatives outlined in the 12th Malaysia Plan to promote the development of a green economy. In response to growing market concerns on sustainability challenges and risks, there has been a rising interest amongst foreign and domestic investors to participate in Malaysia's green economy through ESG investments in order to address major environmental issues and generate sustainable returns.

The publication "ESG Deals Creation and Impact Investing in Malaysia" explores the emerging status of Malaysia as a potential destination for ESG investments, driven by the growing appetite of investors, increasing corporate initiatives and a supportive regulatory environment conducive to sustainable business practices. According to a recent PwC research, companies listed in FTSE4Good Bursa Malaysia (F4GBM) Index which have demonstrated strong ESG business practices, have been able to deliver higher valuation multiples and investment returns. We also discuss how ESG integration into businesses will bring about additional opportunities for value creation through sustainable transformation.