PETALING JAYA: Businesses in Asean countries need to change to capture the investors who favour sustainability practices.

       Maybank Kim Eng Group chief executive officer Datin Ami Moris (pic) said that according to Bloomberg data, one-third of all global assets under management amounting to US$53 trillion (RM220.55 trillion) will be invested in environmental, social and governance (ESG) assets by 2025.

       “The listed companies will naturally be trying to seek some of that US$53 trillion (RM220.55 trillion) in sustainability-first investment and no doubt the exchanges of Asean will be working hard to ensure they attract global funds back into Asean, ” she said.

       She noted that there is a rise in Millennials in the emerging affluent segment who are less weathered to the traditional principle of investment management and increasingly less reliant on conventional courses of investment advice.

       “They will soon be choosing ESG investment and will rely on social media and social media influencers who are not analysts or research experts, ” Ami said.

       She was speaking at the virtual conference on “Beyond The Pandemicrisis”, jointly organised by Maybank Kim Eng and Asean Exchanges yesterday.

       Bursa Malaysia Bhd chief executive officer Datuk Muhamad Umar Swift, in his opening remarks at the virtual conference, concurred that this new generation of investors is driving changes in the market.

       “Last year, 65% of the new accounts opened in Malaysia were from the Millennial group, aged 25 to 40.

       “Millennials and Generation Z are showing greater concern to sustainability and the changing expectations of the business role in improving society and protecting the environment, ” he said.

       While there are key developments within Asean to foster greater transparency and consistency across regions that will reduce the due diligence cost for investors, there is also the development of climate change and principle-based taxonomy by Bank Negara and the Sustainable and Responsible Investment Roadmap for the Malaysian Capital Market by the Securities Commission.

       “The Sustainability Disclosure Framework launched by Bursa Malaysia in 2015 has also contributed to Malaysia’s sustainability ecosystem, as more than 900 public-listed companies (PLCs) are disclosing their annual sustainability status report, ” he said.

       He added that some PLCs are also reporting using international standards such as the GRI (Global Reporting Initiative).

       Later in a panel discussion on “The Asean Investor: Where Are The Next Opportunities?”, Umar said to pursue the businesses to be on board with sustainable development, the message needs to be communicated as an opportunity to gain new customers.

       “Make yourself have a path to sustainability, so you can get new customers, new people purchasing your products.

       “Be an early adopter rather than being a loser while the multinational companies that are buying your products decide to go green and move away, ” he said.