Malaysia Stock Exchange Signs MoU with Indonesia Stock Exchange to set up ESG Ecosystem

The Malaysian stock exchange has signed an MoU with the Indonesia Stock Exchange (IDX) and the Stock Exchange of Thailand (SET) to establish an ASEAN environmental, social, and governance (ESG) ecosystem.

The trio stated in a statement on September 19 that this MoU represents the three exchanges' collective commitment to investigate the establishment of an inter-regional ESG-linked ecosystem that drives business value creation while fostering sustainable development across ASEAN.

The MoU represents a significant step forward in ASEAN's regional cooperation and sustainability.

It also represents a commitment to greening supply chains, as well as recognizing the opportunity to improve the interconnectedness and comparability of ESG data across the region.

Bursa Malaysia, IDX, and SET aim to collaboratively spur the adoption of good ESG practices and drive responsible growth in their respective markets by combining expertise and resources while also offering cross-border opportunities related to ESG investments across the three markets.

The collaboration aims to identify commonalities within the ASEAN ESG ecosystem to facilitate cross-border trade, broaden business opportunities, and advance sustainable financing for corporations of all sizes and their supply chains in the region, according to the statement.