MSMEs Gain Better Understanding On ESG Practices, E-invoice Through SME Corp Programme
SME Corp Malaysia chief executive officer Rizal Nainy said that programmes such as the two-day 2025 MSME Sustainabilty Series programme, which concluded yesterday, provide exposure and practical guidance to MSMEs on how to implement ESG practices in their business operations.
'Also the use of e-Invoices is in line with ESG practices, which supports the governance element by improving transparency and compliance in a firm's financial reporting.
'This will support Malaysia towards more efficient financial adminstration and the introduction of the e-Invoice is a good step and MSMEs need to take this small step but with confidence to ensure their businesses are susintable in the future,' he said during his welcoming address at the 2025 MSME Sustainable Series programme, held at the Islamic Civilisation Park Convention Centre, Terengganu from July 16 to 17.
The two-day programme held for MSME participants in Terengganu and other East Coast regions, contained several main activities, including the 2025 ESG Workshop: From Theory to Practice, the e-Invoice Seminar and the MSME Open Day.
He also pointed out that incorporating ESG principles by MSMEs would not only ensure the continuity of existing supply chains, but also creates opportunities to new markets and boosts access to green finance.
The second day of the programme was dedicated to the e-Invoice for MSMEs seminar, which provided participants with a deeper understanding on the implementation of e-Invoices, he said.
'Through this session, participants were exposed to the concept and basics of e-Invoicing, in line with the guidelines set by the Inland Revenue Board (LHDN),' he stressed, adding that the interactive seminar provided step-by-step practical guidance on implementing e-Invoices, especially in using the MyInvois portal.
-- BERNAMA
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
a day ago
- The Sun
Ewon praises cooperative spirit at HKN 2025 in Melaka
MELAKA: Entrepreneur Development and Cooperatives Minister Datuk Ewon Benedick has praised the strong participation of cooperatives and entrepreneurs at the National Cooperative Day (HKN) 2025, calling it a testament to the sector's growing dynamism. Ewon visited exhibition booths at the Melaka International Trade Centre (MITC) in Ayer Keroh during the first two days of the event, expressing his support for their initiatives and encouraging public attendance. 'I extend my gratitude to all participating cooperatives and hope their enterprises continue to grow and serve as inspiration to others,' he said in a statement today. The exhibition features 242 booths, including 147 managed by cooperatives, with 22 focusing on the tourism sector. Various programmes by agencies under the ministry are also on display. The event concludes tomorrow with a closing ceremony officiated by Melaka Chief Minister Datuk Seri Ab Rauf Yusoh. Ewon also invited the public to explore the exhibitions, which include cooperative service consultations, Happy Hour MADANI sales, food stalls, a 'Battle of the Band' competition, military asset displays, career fairs, and higher education outreach programmes. 'I hope to meet more cooperative leaders and micro, small and medium enterprise (MSME) entrepreneurs throughout the event. Together, let us strengthen and support the cooperative movement,' he said. HKN 2025 began yesterday and will run for three days. - Bernama
Daily Express
2 days ago
- Daily Express
Tackling key themes in modern dispute resolution
Published on: Saturday, July 26, 2025 Published on: Sat, Jul 26, 2025 By: Larry Ralon Text Size: Kota Kinabalu: This year's conference tackled key themes in modern dispute resolution, including an ESG (Environmental, Social and Governance) Roundtable, the launch of the Expert Determination Rules and a session exploring the role of Generative AI in arbitration. Another highlight is a discussion on Court-Annexed Mediation and its practical applications for enforcing settlement agreements, an issue gaining traction under the Singapore Convention on Mediation. Wong also praised Harbans Singh, a well-respected mediator and Bicam Council member, for leading recent training sessions for the judiciary, Housing Ministry and Justice of the Peace Associations in Penang and Selangor. 'Harbans does this for free and even donates his own well-regarded book on mediation to participants. His dedication is a reflection of the spirit we aim to cultivate at Bicam,' he said. As Bicam positions itself at the forefront of institutional arbitration and mediation in the region, Wong emphasised that continued growth will come through education, engagement and public trust. 'Every effort has reaffirmed one principle: ADR, when accessible and well-administered, is a powerful tool to resolve conflict and promote progress,' he said. 'This conference is yet another step in our journey, to build a lasting, inclusive and innovative dispute resolution ecosystem for Sabah and beyond.' * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Malay Mail
2 days ago
- Malay Mail
ESG reforms key to restoring trust in sustainable finance — Nahrizul Adib Kadri
JULY 26 — The global sustainable finance market has reached an inflection point. With the United Nations estimating that $4 trillion annually is required to achieve the Sustainable Development Goals, ESG (Environmental, Social, and Governance) investing has moved from the periphery to the centre of financial decision-making. Yet fundamental challenges threaten to undermine its credibility and effectiveness. The evolution from socially responsible investing in the 1990s through Corporate Social Responsibility in the 2000s to today's ESG framework reflects a growing recognition that non-financial factors materially affect long-term returns. However, this progression has exposed critical structural weaknesses in how we measure and verify sustainability claims. The most pressing issue facing sustainable finance is the absence of standardised ESG metrics. Different rating agencies routinely assign contradictory scores to the same company, creating confusion for investors and opportunities for manipulation. While quantifiable factors like carbon emissions can be measured with reasonable accuracy, subjective elements such as governance quality remain poorly defined. This inconsistency enables 'rating shopping', where companies selectively engage with agencies likely to provide favourable assessments. The reliance on self-reported data compounds these problems. Without mandatory third-party verification, companies face few barriers to exaggerating their sustainability credentials. This has given rise to various forms of misrepresentation: greenwashing (inflated environmental claims), brownwashing (concealing harmful practices), and greenhushing (deliberately understating sustainability efforts to avoid litigation). Each undermines market integrity and investor confidence. As an example of the perverse incentives created by ESG frameworks, consider Malaysia's used cooking oil (UCO) market. European regulations favour sustainable aviation fuel made from waste products like UCO over virgin palm oil, creating a premium for supposedly 'used' oil. The result: fresh cooking oil in Malaysia sells for approximately $0.60 per kilogram while UCO commands $1.00. This price differential has spawned an entire fraudulent ecosystem where fresh oil is passed off as used, defeating the environmental purpose while enriching intermediaries. Criminal syndicates have emerged to exploit this arbitrage, mixing subsidised fresh oil with UCO shipments. The environmental impact is precisely opposite to what regulators intended — instead of reducing waste, the system creates additional demand for palm oil production and associated deforestation. This cooking oil fraud exemplifies a broader pattern in sustainable finance: well-intentioned regulations creating unintended consequences. When the market values the appearance of sustainability more than actual environmental impact, rational actors will supply that appearance. The UCO case demonstrates how ESG metrics, divorced from rigorous verification, become vehicles for fraud rather than instruments of change. Current regulatory frameworks remain inadequate to address such systemic failures. The UN-backed Principles for Responsible Investment, while well-intentioned, lack enforcement mechanisms. Signatories can claim adherence without meaningful implementation, reducing these principles to symbolic gestures. The European Union's binding regulations offer a more promising model, yet as the UCO example shows, even mandatory frameworks can be subverted without proper verification systems. Recent empirical evidence raises additional troubling questions about ESG implementation. Research on board diversity reveals that companies with female directors experience greater IPO underpricing — approximately $13 million more left unclaimed. This suggests that markets may value the appearance of ESG compliance over substantive impact, indicating that much ESG adoption remains performative rather than transformative. The tension between fiduciary duty and sustainability goals has become increasingly apparent. BlackRock's legal challenges exemplify this conflict, with the asset manager facing lawsuits from both ESG advocates and critics. This highlights the fundamental question: can investment strategies prioritise sustainability while maintaining competitive returns? The financial sector's response to this question will shape the future of sustainable investing. These challenges occur against a backdrop of declining public trust in financial institutions. Survey data indicates that confidence in finance professionals has deteriorated more rapidly than in other sectors since the mid-1990s. This erosion of trust creates additional obstacles for ESG adoption, as sceptical stakeholders question whether financial institutions can credibly champion sustainability. Proposed technological solutions present their own paradoxes. Blockchain technology could enhance transparency in ESG reporting, but its significant energy consumption contradicts environmental objectives. Such contradictions illustrate the complexity of implementing sustainable finance solutions. For Malaysian financial markets, these global trends carry important implications. The UCO fraud case demonstrates how local markets can be distorted by international ESG requirements. As international investors increasingly integrate ESG factors into allocation decisions, local companies and financial institutions must navigate between genuine sustainability commitments and performative compliance. The choice of regulatory approach — voluntary guidelines versus mandatory standards with robust verification — will significantly influence market development. The path forward requires addressing fundamental weaknesses in the ESG ecosystem. Standardised metrics must replace the current patchwork of rating methodologies. Independent verification should become mandatory, not optional. Regulatory frameworks need enforcement mechanisms that ensure accountability. Companies must move beyond symbolic gestures to substantive changes in business practices. Financial institutions face a credibility test. After decades of prioritising short-term profits, they must demonstrate that their commitment to sustainability extends beyond marketing rhetoric. This requires acknowledging trade-offs between immediate returns and long-term sustainability, rather than perpetuating the fiction that all ESG investments automatically enhance profits. The sustainable finance sector stands at a critical juncture. The gap between its promise and current practice threatens to undermine legitimate efforts to align financial markets with environmental and social objectives. As the Malaysian UCO case illustrates, without rigorous verification and enforcement, ESG frameworks can create perverse incentives that worsen the very problems they aim to solve. Closing this gap demands rigorous standards, authentic leadership, and regulatory frameworks that distinguish genuine sustainability from performative compliance. The $4 trillion question is not whether sustainable finance can work, but whether market participants will implement the reforms necessary to make it work. For emerging markets like Malaysia, the decisions made today will determine whether sustainable finance becomes a driver of meaningful change or another chapter in the long history of financial sector disappointments.
