• Malaysia is implementing a new minimum wage rate of RM1,500 per month from 1 May 2022 for the entire country.
  • The United States has banned imports of palm oil from Malaysian producer Sime Darby Plantation over allegations of forced labor during production.
  • The U.S. Customs and Border Protection (CBP) had banned gloves made by Top Glove in July 2020, saying it had found abuses of migrant workers.
  • Forced labor in the production of electronic goods in Malaysia has led to a sharp plunge in the share price of EMS companies such as VS Industry, SKP Resources, and ATA IMS.

    All this news has created a high level of awareness on material ESG issues affecting their businesses, especially for stock investors.

    ESG stands for Environmental, Social, and Governance. Investors are increasingly applying these non-financial factors as part of their analysis process to identify material risks and growth opportunities.

    Even if we do not agree with the Western standards, we could not deny that the rules of the modern capitalist world are set by the Western countries and if we would like to avoid these risks, we should start focusing on the ESG standard of Bursa Malaysia listed companies.

    You can check out the ESG rating of each Bursa company here.