• ESG Tax DedESG Tax Deduction Rules 2025: Malaysian-resident companies, including financial institutions, listed companies, and MSMEs, can claim tax deductions of up to RM50,000 per year for ESG-related expenditures. Eligible costs include ESG verification, certification, GHG emissions monitoring, ESG software subscriptions, staff training, and consultant engagements. This incentive is effective from the 2024 to 2027 assessment years.

• Domestic Investment Accelerator Fund (DIAF) – ESG Adoption: This is a matching grant supporting Malaysian-owned SMEs and mid-tier companies to adopt ESG practices. It reimburses up to RM500,000 for activities such as ESG validation, certification, disclosures, and acquisition of ESG tracking technologies. The grant can cover up to 70% of costs on a case-by-case basis.

• Green Technology Financing Scheme (GTFS): Provides subsidized loans up to RM100 million through partnering banks for companies adopting sustainable technologies in sectors like energy, manufacturing, transport, and water, indirectly supporting ESG progress.

• These financial support mechanisms help Malaysian companies offset the costs of ESG reporting and certification, ensuring compliance with Bursa Malaysia’s evolving disclosure requirements and enhancing their competitiveness in the global market.uction Rules 2025: Malaysian-resident companies, including financial institutions, listed companies, and MSMEs, can claim tax deductions of up to RM50,000 per year for ESG-related expenditures. Eligible costs include ESG verification, certification, GHG emissions monitoring, ESG software subscriptions, staff training, and consultant engagements. This incentive is effective from the 2024 to 2027 assessment years.

• Domestic Investment Accelerator Fund (DIAF) – ESG Adoption: This is a matching grant supporting Malaysian-owned SMEs and mid-tier companies to adopt ESG practices. It reimburses up to RM500,000 for activities such as ESG validation, certification, disclosures, and acquisition of ESG tracking technologies. The grant can cover up to 70% of costs on a case-by-case basis.

• Green Technology Financing Scheme (GTFS): Provides subsidized loans up to RM100 million through partnering banks for companies adopting sustainable technologies in sectors like energy, manufacturing, transport, and water, indirectly supporting ESG progress.

These financial support mechanisms help Malaysian companies offset the costs of ESG reporting and certification, ensuring compliance with Bursa Malaysia’s evolving disclosure requirements and enhancing their competitiveness in the global market.