The hot issue surrounding forced labour in Malaysia has put the environmental, social and governance (ESG) initiatives in the spotlight. This came to the fore after some Malaysian companies of the likes of Top Glove and FGV Holdings were alleged to have embarked on forced labour practices involving some of their foreign workers. Economists and analysts agree that with the current headwinds, exacerbated by the Covid-19, more concerted efforts are needed to ensure further adoption of ESG initiatives at all levels. They expect such initiatives to leapfrog post-Covid-19 as more companies take cognisance of the importance of sustainable investments among socially conscious investors. AmBank Group chief economist Anthony Dass, who is also a member of the Economic Action Council secretariat, said ESG investing has started creeping into mainstream investment. But unfortunately, he said, Covid-19 has exacerbated inequities and underscored the importance of companies expanding the strategy and risk management processes to include key stakeholders beyond shareholders. “ESG investing would be big in the post-Covid-19 era. The pandemic is a wake-up call for all businesses which has revealed that our markets and supply chains are fragile and easily disrupted,” he added.

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