MALAYSIA Trends and Developments Contributed by: Stephanie Phua, Wong & Partners
acquired after 1 January 2024, the CGT rate is 10% of the chargeable income from the disposal of the capital asset or 2% of the gross on the disposal price of the capital asset. ESG considerations ESG considerations are becoming more prevalent in Malaysian deals, especially private equity-backed deals. This is driven by limited partners imposing heightened requirements on PE funds in this area (such as pension and sovereign wealth funds, which are increasingly concerned about the system-level effects of climate change and inequality). This is altering the manner in which due diligence needs to be conducted for PE deals and poses a challenge in Malaysia for deals involving privately held companies (such as SMEs), as meaningful ESG due diligence by PE investors often cannot be conducted easily in Malaysia due to limitations on data collection by the target. This issue will only continue to com - pound as substantive ESG and ESG reporting require - ments imposed by investors become more stringent and sophisticated.
In response to growing demand by investors, Bur - sa Malaysia in collaboration with the London Stock Exchange has taken the first steps to creating a Cen - tralised Sustainability Intelligence Platform (CSI Plat - form), which is a centralised repository for ESG disclo - sures to enable Malaysian companies to consolidate and disclose ESG data in a standardised manner. The CSI Platform is aimed at listed companies but will be open to all Malaysian companies (including private companies), and Bursa Malaysia is encouraging both public and private companies to participate by lever - aging ESG digital tools.
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