Negeri Sembilan State Election
2026
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KUALA LUMPUR: The Companies Commission of Malaysia (SSM) is strengthening Malaysia’s corporate regulatory framework by introducing amendments to the Companies Act 2016 to enhance sustainability reporting requirements.
SSM CEO Datuk Nor Azimah Abd Aziz said the proposed revision adopts a phased and proportionate approach for large, non-listed companies, as well as a voluntary approach for all SMEs. This recognises that businesses have different capabilities while providing sufficient time to prepare for future reporting requirements.
Azimah noted that the proposed amendments will complement the National Sustainability Reporting Framework (NSRF) and reinforce directors’ accountability for sustainability-related and non-financial information disclosure that promotes greater corporate transparency.
“As a regulatory body, the agency plays a fundamental role in fostering a corporate ecosystem founded on good governance and accountability.
“At SSM, we now regulate more than 720,000 active companies, 1.7 million micro-businesses comprised of sole proprietorships and partnerships, as well as 40,000 active limited liability partnerships across Malaysia.
“Given the scale and diversity of Malaysia’s corporate ecosystem, strengthening transparency, accountability and sustainable business practices is essential to enhancing the country’s long-term economic resilience.
“This commitment is reflected in SSM’s Fourth Strategic Direction Plan (SDP4) for 2026–2030, which identifies sustainability as one of its key strategic priorities, including the development of an environmental, social and governance policy.
“While SSM is not a climate policy regulator but rather the country’s corporate registry, it plays an important role in strengthening the corporate governance framework that enables businesses to respond responsibly to climate-related risks and opportunities,“ Azimah told delegates at the National Climate Governance Summit 2026 today.
As part of this initiative, Azimah said, SSM issued a consultative document on April 30, outlining proposed amendments to the Companies Act 2016 relating to sustainability reporting, with the aim of gathering feedback from stakeholders on the proposed policy direction and legislative changes.
The consultative approach reflects SSM’s commitment to develop a legal framework that is practical, balanced and responsive to the needs of Malaysian businesses, while encouraging meaningful stakeholder participation.
SSM will develop the sustainability reporting framework collaboratively with businesses, industry professionals and other stakeholders to ensure it is practical, effective and fit for purpose.
“Organisations that integrate sustainability into their governance, strategy and risk management processes will be better positioned to anticipate change, respond to emerging risks and seize new opportunities in an increasingly competitive global economy.
“Achieving this requires forward-looking, accountable leadership that is committed to creating long-term value.
“Malaysia has also made significant progress in advancing its sustainability agenda, driven by the collective efforts of regulators, businesses, investors and professionals,“ Azimah said.
She said all organisations share a responsibility to build on this momentum.
“Our collective success will be measured not only by the commitments we make, but by our ability to translate those commitments into credible action.
“I encourage everyone to make full use of the National Climate Governance Summit 2026 platform to exchange ideas, challenge conventional thinking and explore practical solutions to strengthen climate governance across our organisations.
“It is my hope that this summit will not only deepen our understanding of the challenges ahead but also inspire meaningful partnerships and concrete actions that will help build a more resilient future for Malaysia,“ Azimah said.
