Alliance Bank Malaysia Berhad launched the second edition of its annual ESG survey report, titled The Path to Sustainable Impact - Sectoral Insights of Malaysian SMEs. The report highlights a remarkable sixfold increase in ESG awareness among Malaysian SMEs, from 14% in 2023 to 80% in 2025, signalling a heightened recognition of sustainability's importance in a competitive business landscape.

The report was unveiled at the SME ESG START Symposium 2025, held at Monash University Malaysia, officiated by YB Nik Nazmi Nik Ahmad, Minister of Natural Resources and Environmental Sustainability.

Building on the success of its inaugural 2023 report, the ESG 2.0 Report was developed in collaboration with Monash University Malaysia and Zurich Malaysia as knowledge partners, and supported by the UN Global Compact Network Malaysia & Brunei, SME Corporation Malaysia, and INCEIF University. The study, based on extensive surveys and research, sheds light on SMEs’ sustainability progress and readiness to meet evolving regulatory, market, and financial demands while unlocking new opportunities.

YB Nik Nazmi Nik Ahmad said "I am pleased to commend Alliance Bank, in partnership with its knowledge partners and supporting partners, for spearheading this latest Environmental, Social, and Governance (ESG) research report. This effort plays a crucial role in strengthening Malaysia’s ESG ambitions, fostering resilience, and preparing businesses for both local and global opportunities."

"As we continue to champion ESG adoption, we are committed to empowering Malaysian SMEs through our 3As approach—Advocacy, Advice, and Answers—helping them integrate ESG practices as key drivers of long-term resilience and success." said Mr Kellee Kam, Group Chief Executive Officer of Alliance Bank.

The ESG 2.0 Report reveals that cost savings, market demand, and innovation are the primary motivators for SMEs adopting sustainable practices. Among those embracing ESG, 38% reported revenue increases of more than 50%. Additionally, SMEs in the manufacturing and construction sectors led the way in ESG adoption, with 69% and 60% uptake respectively.

Professor Emeritus Dato’ Dr Adeeba Kamarulzaman, President and Pro Vice-Chancellor of Monash University Malaysia, stated "Monash University Malaysia is proud to collaborate with Alliance Bank on this ESG report. It provides valuable insights into sustainability adoption among SMEs and underscores the importance of sector-specific approaches to enhancing ESG practices."

"Zurich is proud to empower SMEs with tools to thrive in an ESG-driven world. This report is a testament to our shared vision of sustainable growth and resilience." added Zurich Malaysia's Country CEO, Junior Cho.

Looking ahead, Alliance Bank plans to release sectoral playbooks in 2025–2026 to guide SMEs across industries like services, manufacturing, construction, and agriculture. The Bank also aims to achieve RM15 billion in sustainable banking business by FY2027, with RM13.6 billion already recorded since FY2022.

The ESG 2.0 Report is available at www.alliancebank.com.my/esg-sme-survey-2025.

Twitter