Fundamental for defence industry to embrace ESG principles – Defence Minister

KUALA LUMPUR: It is fundamental for the defence industry to embrace the environmental, social, and governance (ESG) principles and its key pillars, particularly, good governance, said Defence Minister Datuk Seri Mohamed Khaled Nordin.

He said that society, corporations, and governments have widely adopted the principles as a means to assess risks and opportunities.

“The principles have transcended beyond profit-oriented entities and more key sectors having a crucial transition, including higher education and health,” he said in his keynote address at the National Security Seminar, today.

The forum is held in conjunction with the Defence Services Asia (DSA) and National Security (NATSEC) Asia 2024 at the Malaysia International Trade and Exhibition Centre.

Noting that strong international partnerships can be nurtured easily upon the bedrock of good governance, Mohamed Khaled said transparency, accountability, and the rule of law are the cornerstones of thriving good governance.

“Having the principles will allow us to enhance our global reputation. This will position Malaysia as a reliable and credible partner at international fora. In return, a variety of robust international partnerships will help extend our reach and capabilities, allowing for shared information, joint exercises, and security cooperation to address mutual threats.

“Our active role in ASEAN, the Trilateral Cooperative Arrangement (TCA), the Melaka Straits Patrol (MSP), and the Five Power Defence Arrangements (FPDA), testify to our commitment towards regional security,” he said.

Admitting to achieve and and maintaining high governance standards is not without its challenges, Mohamed Khaled said corruption, inefficiency, and a lack of transparency can significantly undermine the foundation of trust and stability.

These issues, he said, will erode public confidence and weaken the effectiveness of security frameworks.

“Addressing these challenges is imperative, it requires more than just incremental improvements. Under the Malaysia MADANI aspiration by the Unity Government, we strive to ensure two things. Firstly, we will immerse our administration in good governance practices.

“Secondly, we will continue to highlight Malaysia as a country that is pro-trade, pro-stability, and pro-partnerships,” he said.