Datuk Seri Mohamed Khaled Nordin stated that the Defense Ministry is making strides towards the implementation of a thorough Environmental, Social, and Governance (ESG) framework. The ministry's minister expressed an intention to learn valuable insights from the private sector's impressive reputation for transparency, sustainability, and responsible leadership to enhance public confidence and institutional integrity.
"We acknowledge that there remains a wide gap between governance practices in the public sector and those in private companies, many of which have demonstrated impressive achievements in areas such as digitalization, transparent procurement, sustainable business practices and the protection of workers’ rights.
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“These efforts have helped companies become more resilient and competitive, while also boosting confidence among stakeholders and the public”, he says.
“Mohamed Khaled asserted that ESG standards are not merely followed in the private sector, but are also successfully put into practice thanks to robust leadership”.
“The time has come for the ministry to adopt ESG principles in a more structured, holistic and disciplined manner. There is a need to learn from more advanced, proven and effective systems, even if it requires a fundamental reset in thinking and practices”, he adds.
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He emphasized the need to move beyond using national security concerns as a broad excuse to resist embracing greater openness, dynamism, transparency, and sustainability. He highlighted the importance of shedding outdated mentalities, reducing excessive bureaucratic processes, and improving governance efficiency.
“I call for the formation of a special task force to guide the development of an ESG framework tailored to the needs of national defence, with the aim of elevating the institution’s standing to a level that is more respected and credible”, he says.
Mohamed Khaled anticipates that the year 2026 will signify a shift towards a more positive period characterized by honesty, reliability, and a collective commitment to prioritizing the nation's well-being as the utmost responsibility. He emphasized the importance of integrity being deeply ingrained as a fundamental principle and serving as a strong defense mechanism in ensuring trust.
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Additionally, there should be a thorough and unwavering effort to combat corruption and unethical behavior across all levels of the national defense framework.