The Securities Commission (SC) said the NSRF addresses the use of the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB) as the baseline for companies in Malaysia.

The SC said the new requirements would be introduced in a phased approach, with the first phase to see large listed issuers on the Main Market with market capitalisation of RM2 billion and above begin using the ISSB’s standards in 2025.

“This will extend to other Main Market-listed issuers in 2026, followed by listed issuers on the ACE Market as well as large NLCs in 2027,” it said.

Speaking at the launch of the NSRF today, SC chairman Faiz Azmi said adoption of these requirements makes companies more likely to meet purchaser requirements in the global supply chain, given the increasing focus on sustainability information.

“Rather than resist it, we should embrace it and use it strategically to make our markets more attractive,” he said.

According to the framework document, the NSRF is meant to ensure companies in Malaysia provide “consistent, comparable and reliable sustainability information to enhance Malaysia’s competitiveness and attractiveness to investors”.

In his keynote speech at the framework’s launch, finance minister II Amir Hamzah Azizan also said the Advisory Committee on Sustainability Reporting had designed training and tools to support the framework, including those focused on addressing the needs of medium-sized and smaller companies.

“This is expected to reduce complexity and costs associated with sustainability reporting, allowing businesses to focus on what they do best: driving innovation, creating jobs and contributing to economic growth,” he said.