ASEAN-BAC Malaysia, ACCA and ASRAC Partners Release Regional Policy Statement
Private sector and professional bodies call for aligning with a global baseline for sustainability reporting standards across ASEAN
Singapore, 3 July 2025 – The ASEAN Business Advisory Council (ASEAN-BAC) Malaysia together with our partners in the ASEAN Sustainability Reporting Advocacy Collaborative (ASRAC) have unveiled a regional policy statement. This statement calls for a unified path forward for sustainability reporting across ASEAN, with alignment to international standards as a key priority. It aims to reduce duplication and make reporting more practical for businesses of all sizes throughout the region.
Released on 2 July 2025 at the ASEAN Night hosted by the Singapore Business Federation, the ASRAC Statement is the first output of this collaborative initiative between ACCA, ASEAN-BAC Malaysia, the Sustainable Finance Institute Asia (SFIA), and the Asia-Pacific Economic Cooperation Business Advisory Council (APEC-BAC) Malaysia. It is one of twelve business priorities launched in January 2025 and being
advanced by ASEAN-BAC Malaysia as part of Malaysia’s ASEAN Chairmanship in 2025. Last night, ASEAN BAC Singapore and ISCA have also become the signatories of the statement.
Building on a report prepared by ACCA and to be released at the end of July, the Statement translates business insights into concrete practical recommendations.
The ASRAC Statement calls for the adoption of the International Sustainability Standards Board (ISSB) standards as a global baseline, implemented through a building-blocks approach that enables jurisdictions to add other requirements beyond climate related financial disclosures. It also advocates for transition relief for businesses to minimise the reporting burden required by other regulators such as European Sustainability Reporting Standards (ESRS) and emphasises the importance of proportionality — ensuring that reporting frameworks remain practical and scalable for businesses of all sizes, especially
small and medium-sized enterprises (SMEs).
Speaking at the launch, Jukhee Hong, Executive Director, ASEAN-BAC Malaysia and Chair of ASRAC, said “The ASRAC statement reflects the collective position of the private sector on how standard setters and regulators can help address the challenges faced in meeting the climate reporting requirements By confronting the 3Cs challenges in, compliance, cost, and capacity; and advocating for scalable, proportionate disclosure requirements, we are urging a shift from reporting complexity to clarity. This is ASEAN-led collaboration in action, pragmatic, inclusive, and aligned with the needs of all businesses, especially SMEs.”
Tan Sri Nazir Razak, Chairman of ASEAN-BAC Malaysia, said, “We now have a unique opportunity to advocate how the future of sustainability reporting in our region should be shaped. ASRAC is precisely the kind of forward-looking advocacy initiative that ASEAN-BAC is proud to lead. It reflects the collective voice of the private sector and professional bodies on how reporting standards should evolve.”
Pulkit Abrol, Director – Asia Pacific, ACCA also said: “Today’s finance leaders are stewards of people, planet and prosperity. ACCA is proud to support this important initiative, which reflects ASEAN’s shared commitment to practical, high-quality sustainability reporting. The ASRAC Statement offers a timely call for alignment around ISSB standards, grounded in proportionality and global relevance. As a knowledge
partner to ASEAN-BAC, we are pleased to contribute to a path that safeguards regional competitiveness while ensuring ASEAN’s voice is heard in shaping the future of global disclosure frameworks“.
The Statement also outlines practical implementation pathways, including engagement with finance ministries, capital market regulators, and international standard-setters; support for a unified platform for ESG data; and capacity-building through regional partners such as ACCA.
The full Statement is now available through ASEAN-BAC’s official channels : https://aseanbac.com.my/asean-sustainability-reporting-advocacy-collaborative-asrac/
