The defence ministry is prioritised for ESG adoption to enhance governance and transparency in its large-scale procurement activities, with digitalisation support planned.
PUTRAJAYA: The Ministry of Defence has been prioritised to adopt the Environmental, Social and Governance framework.
This is due to the scale of its procurement activities and the need for more sustainable and transparent governance.
Communications Minister Fahmi Fadzil said the decision followed a briefing by Defence Minister Mohamed Khaled Nordin to the Cabinet.
He stated that MINDEF is moving towards implementing ESG to strengthen governance, particularly in procurement.
“The Defence Minister informed the Cabinet that given the large volume of procurement undertaken each year, it is appropriate and necessary for priority to be given to MINDEF,” Fahmi told reporters.
Follow-up actions will involve the Digital Ministry and the National Digital Department.
Their role is to support the digitalisation of several procurement procedures.
The move aims to ensure procurement processes are more transparent, accountable and responsible.
It also seeks to reduce the risk of leakages.
Fahmi added that Mohamed Khaled briefed the Cabinet on the latest developments regarding current issues within the Malaysian Armed Forces.
Prime Minister Anwar Ibrahim took note of the views and explanations provided.
“Several matters raised today will be followed up on. For further details, reference can be made to the Defence Minister,” Fahmi said.
He added that the Cabinet had generally received the explanations positively.
In his New Year 2026 Message, Mohamed Khaled said MINDEF is taking proactive steps to bridge the gap between public sector governance and private sector efficiency.
He stated integrity and sustainability are at the core of its reforms.
He said the time has come for MINDEF to implement the ESG framework in a more structured and comprehensive manner.
Efforts to strengthen governance have gained significance amid recent public scrutiny involving the Armed Forces.
This scrutiny includes issues related to personnel welfare, procurement processes and internal management.
