The International Financial Reporting Standards (IFRS) Foundation has recognised Malaysia’s commitment to sustainability reporting in its recently issued Jurisdictional Profile. Malaysia is acknowledged as adopting the ISSB Standards with limited transition, representing the only jurisdiction in the ASEAN region.
This recognition in the Jurisdictional Profile underscores the global standing of Malaysia’s National Sustainability Reporting Framework (NSRF).
Launched in September 2024 and developed by the Advisory Committee on Sustainability Reporting (ACSR), the NSRF is a significant step in advancing Malaysia’s corporate sustainability agenda.
The NSRF phases in the adoption of ISSB Standards, specifically IFRS S1 and IFRS S2. Starting with a ’limited transition’ approach, Malaysia extends certain transitional standard reliefs, including ‘climate-first’ reporting and deferred Scope 3 GHG emissions disclosures.
This approach facilitates a smooth transition to full adoption of the ISSB Standards, while recognising the varying levels and maturity in sustainability practices and reporting across companies.
The SC Chairman Dato’ Mohammad Faiz Azmi said that the ACSR welcomes the ISSB’s endorsement, which represents an important recognition of our efforts in using the ISSB Standards as the baseline for sustainability disclosures in Malaysia.
“The ACSR is cognisant of the high standards the ISSB Standards has set for sustainability reporting, and the challenges this may pose to entities. We remain committed to equipping reporting entities to meet these requirements,” he said.
To ensure the readiness of applicable entities, the NSRF introduced the PACE (Policy, Assumptions, Calculators, Education) initiative, providing training, tools and resources. This includes training on interoperability between the Global Reporting Initiative (GRI) Standards and ISSB Standards conducted in March this year.
Other upcoming PACE initiatives include the development of Illustrative Sustainability Reports to guide company disclosures and an NSRF Preparers’ Programme to strengthen capacity.
The ACSR will also continue engaging with the industry to understand sector-specific challenges in adopting the ISSB Standards.
The first cohort of Jurisdictional Profiles was published by the IFRS Foundation on 12 June 2025. The publication provides transparency to capital markets on the adoption approaches of different jurisdictions.
The IFRS Jurisdictional Profile on Malaysia is available at https://www.ifrs.org/content/dam/ifrs/publications/sustainability-jurisdictions/pdfprofiles/malaysia-ifrs-profile.pdf. Further NSRF resources are available at www.sc.com.my/nsrf.
For more information or inquiries, please contact the ACSR Secretariat at nsrf@seccom.com.my.
