KUALA LUMPUR: The ESG Association of Malaysia (ESGAM), in collaboration with RHB Bank, hosted the SustainAbility Connect: Financing the Future of SMEs event at the Tropicana Golf & Country Club. The event highlighted the growing importance of Environmental, Social, and Governance (ESG) practices for Malaysian SMEs and how they can leverage sustainable financing to drive growth, innovation, and global competitiveness.
Prof Cheah Kok Hoong, in his opening remarks, stressed the urgency of ESG adoption, urging businesses to move from discussions to concrete actions. “While many are talking about ESG, the real challenge is in taking steps to integrate it into business models,” he said. “The opportunity is here, but businesses must make the commitment now to incorporate sustainability into their operations.”
The event also featured Damian Santosh Samson, Deputy Director at MATRADE, who discussed how Malaysia’s export landscape is evolving, particularly in sectors like electronics, where sustainability is becoming a key market driver. “Sustainability is now a driving force in international markets, especially in the electrical and electronics sectors. Almost 40% of Malaysia’s exports in this space are linked to sustainable electronics,” he explained. He also spoke about MATRADE’s role in facilitating market access for SMEs, particularly in Europe, where demand for sustainable products is on the rise.
Kelvin Chen, Head of SME Business Development at RHB Bank, highlighted the pivotal role of RHB Bank in supporting SMEs through their ESG transformation. “Sustainability is no longer a trend; it’s a strategic imperative for businesses. As a bank, we see our role not only in financing but in enabling our clients to transition towards a sustainable future,” said Mr Chen. “The businesses that will thrive in the coming years are those that embrace ESG principles and take proactive steps to integrate them into their business models.”
The event also featured a panel discussion titled “ESG in Action: Navigating Policy Shifts, Risks and Opportunities for SMEs”, moderated by Dr Wong Lai Yong, Founder, Principal Trainer & Consultant of First Penguin Sdn Bhd. Panellists included Damian Santosh Samson (MATRADE); Dr Shana Yong, CEO, Founder and Director of Regenapitol Net Positive Bank and ESGSolv Sdn Bhd; Sim Ee Chiew, Head of SME Engagement at RHB Bank; and Alex Pang, Senior Manager of ESG at AEON CO. (M) BHD. The panel shared practical insights on the evolving ESG policy landscape, financing options, and strategies for SMEs to future-proof their operations while managing risks and capitalising on emerging opportunities. 
RHB Bank’s efforts align with Malaysia’s national agenda to achieve net zero by 2050. The bank offers tailored solutions for SMEs, from renewable energy financing to green property loans, helping businesses reduce their environmental impact while ensuring long-term growth and profitability.
As part of the ongoing efforts to support SMEs, ESGAM and RHB Bank announced the upcoming launch of a new ESG platform for SMEs, designed to provide the tools, resources, and connections needed to integrate sustainability practices more effectively. The platform will be launched on 30th June 2025.
RHB Bank’s Commitment to Sustainable SME Transformation
RHB Bank has been a key player in helping SMEs transition toward a more sustainable future. The bank’s commitment to ESG practices is reflected in its comprehensive support for SMEs, from financing renewable energy projects to helping businesses secure green certifications.
Mr Chen emphasised that sustainability is no longer optional, but essential for businesses looking to stay competitive. “As the regulatory landscape tightens and market expectations evolve, businesses that fail to adapt may face risks, including financial penalties and lost opportunities. However, those who embrace ESG practices will not only mitigate these risks but also unlock new growth prospects and improve long-term profitability.”
The event showcased ESGAM’s ongoing role in empowering SMEs to adopt sustainable strategies, with both ESGAM and RHB working together to create an environment where sustainability leads to profitability and positive societal impact.
For more information about the upcoming ESG platform or RHB’s SME financing solutions, please visit www.esgmalaysia.org.
