FOR years, the sustainability conversation has swung between hype and hesitation, championed by some as a moral revolution and dismissed by others as a passing trend. As we close 2025, one thing is clear: ESG is no longer an aspirational slogan. It is becoming a financial discipline, a regulatory expectation and a test of leadership credibility.
Across Asean, the evidence is undeniable. Investors, regulators and corporations are converging on a shared goal to make sustainability measurable, comparable and investable.
From moral choice to market standard
Despite global political noise, investor confidence in sustainability has not only held steady but strengthened. According to recent sentiment data, more than 85% of institutional investors globally have maintained or increased their ESG allocations, even amid economic uncertainty and political backlash in the United States.
In Europe and Asia, this conviction runs even deeper. Sustainable funds in these regions continue to record net inflows, signalling a fundamental shift as investors now reward companies that demonstrate integrity, accountability and measurable transition progress.
In Asean, this trend has matured faster than many expected. Over the last few years, Singapore and Malaysia have pushed ahead with regulatory mandates for corporate reporting, supported by clearer disclosure frameworks and guidance. This consistency has reduced investor ambiguity and improved comparability across investee companies.
However, this is not only about compliance. It is about competitiveness. Sustainability has become a lens through which investors assess a company’s management quality, governance structure and future resilience. It is now the new language of credibility.
