Exchanges of 3 ASEAN Countries Open the Way to Sustainable Development Through the ESG Ecosystem

The stock exchanges of three ASEAN countries, namely Bursa Malaysia, the Indonesia Stock Exchange (BEI), and the Stock Exchange of Thailand (SET), have signed a Memorandum of Understanding (MoU) to explore the creation of an ecosystem related to Environmental, Social, and Governance (ESG) matters across the region. This initiative aims to promote business value creation and sustainable development throughout ASEAN.

This MoU marks a significant milestone in enhancing regional cooperation and advancing sustainability in ASEAN. It also underscores the commitment to greening the supply chain while recognizing the potential to optimize the interconnection and comparability of ESG data in the region.

By combining their expertise and resources, Bursa Malaysia, BEI, and SET intend to collaboratively drive the adoption of good ESG practices and encourage responsible growth in their respective markets. Through this MoU, they are also opening up cross-border investment opportunities within these three markets.

The collaborations goal is to identify commonalities within the ASEAN ESG ecosystem, facilitating cross-border trade, expanding business opportunities, and advancing sustainable financing for companies of all sizes and their supply chains in the region.

Datuk Muhamad Umar Swift, CEO of Bursa Malaysia, expressed his delight in formalizing this partnership with SET and BEI. This partnership aims to enhance cross-border cooperation and leverage opportunities to align ESG initiatives and ESG infrastructure that promote sustainable business practices in ASEAN.

"This MoU serves as a foundation for similar collaborations with other relevant exchanges in Asia. It can also be a strong basis for engaging partners from Northern countries," he stated in BEIs official statement.

Iman Rachman of BEI expressed enthusiasm for this partnership, emphasizing that the MoU reflects their shared vision of creating a sustainable future for the capital markets. He believes that collaboration is key to driving positive change in the region.

"We hope to work with Bursa Malaysia and SET in developing innovative solutions that benefit stakeholders and contribute to the development of resilient and responsible companies," he said.

Pakorn Peetathawatchai stated that SET is committed to promoting ESG practices in Thailands capital markets. Collaborating with Bursa Malaysia and BEI allows them to jointly create an integrated ESG ecosystem.

"This MoU supports the integration of ASEAN markets as an asset class to attract international investors, providing opportunities for knowledge sharing and enabling us to leverage each others strengths in creating a more sustainable future for our markets," he added.

As part of the collaboration outlined in the MoU, the three stock exchanges will explore various initiatives, including but not limited to identifying crucial ESG infrastructure components to support companies in pursuing decarbonization and sustainability across their supply chains.

They will also establish a "sandbox" environment designed to facilitate trading and create new business opportunities for companies and their supply chains, including small and medium-sized enterprises. Additionally, the three stock exchanges will leverage their expertise in ESG practices through workshops, training sessions, and knowledge-sharing programs to support the enhancement of the ESG ecosystem in the ASEAN region.

This partnership holds promise that ASEAN will lead in promoting sustainable business practices and make a positive contribution to global sustainability goals.