Advisory Committee on Sustainability Reporting sets out approach for non-compliance to sustainability reporting requirements

19 January 2026

On 8 December 2025, Malaysia’s Advisory Committee on Sustainability Reporting (ACSR), chaired by the Securities Commission Malaysia (“SC”), announced its approach to addressing non-compliance with regulatory sustainability reporting requirements developed in alignment with the National Sustainability Reporting Framework (“NSRF”).

The SC, together with Bank Negara Malaysia, Bursa Malaysia, the Companies Commission of Malaysia, and the Audit Oversight Board, will focus on a phased and practical approach in reviewing disclosures, acknowledging the transition period for reporting entities to adopt the International Financial Reporting Standards Sustainability Disclosure Standards. The NSRF is applicable to listed issuers on Bursa Malaysia’s Main and ACE Markets, as well as large non-listed companies with an annual revenue of RM2 billion and above.

Emphasis will be placed on capacity building and skills enhancement during the review process to ensure reasonable and meaningful progress by reporting entities in disclosing consistent, comparable, and reliable sustainability information. In cases of non-compliance, this may be addressed through active engagement and corrective action, among other things.

If reporting entities fail to take corrective action to address the deficiencies, appropriate enforcement action may be taken by the relevant authorities. Enforcement action remains essential in upholding standards and protecting the public interest, especially in cases of wilful or serious non-compliance/breaches.