Malaysia Securities Commission sets phased approach to addressing non-compliance with NSRF-aligned sustainability reporting

The Advisory Committee on Sustainability Reporting, chaired by the Malaysia Securities Commission (SC), has published how it will address non-compliance with regulatory sustainability reporting requirements aligned with Malaysia’s National Sustainability Reporting Framework (NSRF). Reviews of sustainability disclosures will follow a phased, practical approach that recognises the transition period for reporting entities adopting the IFRS Sustainability Disclosure Standards (ISSB Standards). The SC will work with Bank Negara Malaysia, Bursa Malaysia, the Companies Commission of Malaysia and the Audit Oversight Board to emphasise capacity building and skills enhancement as part of the review process, with the aim of driving reasonable and meaningful progress towards consistent, comparable and reliable sustainability information. Non-compliance will generally be handled through active engagement and corrective action, but a failure to remediate identified deficiencies may result in enforcement action by the relevant authorities. Willful or serious breaches, including fraudulent and/or misleading material disclosures or omissions, remain subject to enforcement as a safeguard to uphold standards and protect the public interest. The NSRF applies to listed issuers on Bursa Malaysia’s Main and ACE Markets and to large non-listed companies with annual revenue of at least MYR 2 billion.