The recent proposal by PIKOM, Malaysia’s national technology association, to establish a National Digital Council underscores a growing recognition: digital transformation and ESG (environmental, social, governance) imperatives must go hand in hand with investment strategies. (Source: BernamaBiz)

For companies structured as Sdn Bhd, for those who must SSM register their operations, and for the company secretary profession, this presents both challenges and opportunities. The shift towards a more regulated, digitally driven national agenda means private firms must upgrade compliance, strengthen governance, and better align with national goals.

Why the National Digital Council Matters to Sdn Bhd Entities

PIKOM’s proposal envisions the National Digital Council as a cross‑sector coordinating body to set standards, guide policy, and ensure that digital investment and ESG goals are enforced across industries. A council of this nature could influence regulatory frameworks, data standards, green incentives, and investment approval processes.

For a Sdn Bhd company, this means:

• You may see new regulatory requirements tied to ESG reporting, data governance, or sustainability which will become part of compliance obligations.

• Access to investment incentives or government support may favor firms that demonstrate digital readiness and ESG compliance.

• The competitive landscape will shift: companies that adapt earlier will attract better partnerships, funding, and markets.

Thus, Sdn Bhd companies must not stay static—they need proactive compliance, foresight in governance, and readiness for more rigorous standards.

The Importance of SSM Register and Corporate Compliance

Any company in Malaysia must SSM register appropriately through Suruhanjaya Syarikat Malaysia (SSM). This includes initial incorporation of a Sdn Bhd, as well as annual filing, updates, and compliance obligations.

Under a strengthened digital‑ESG regime, the role of SSM register becomes even more central:

• SSM may require enhanced corporate disclosures on ESG metrics, sustainability practices, and data governance.

• The registration and reporting systems may integrate with national digital systems overseen by the National Digital Council or related bodies.

• Firms that fail to properly maintain their SSM registration, or that lag in filings, may be excluded from certain incentives or government contracts.

For every Sdn Bhd, staying in good standing with SSM is no longer just a legal formality—it becomes a strategic necessity.

How the Role of Company Secretary Evolves Under This Proposal

For Sdn Bhd companies, a company secretary is statutorily required. But with rising digital modernization and ESG expectations, the function of company secretary will become more sophisticated and pivotal.

New dimensions for the company secretary will include:

1. Advising on ESG compliance
   Company secretaries may need to guide the board and management on meeting ESG targets, preparing nonfinancial disclosures, and aligning company policies with national digital standards.

2. Managing digital reporting obligations
   As the National Digital Council may push for integrated reporting, data submission, or digital audits, the company secretary will likely interface with new digital systems and oversee data consistency.

3. Governance and risk management
   The company secretary must help ensure that board decisions, risk frameworks, internal controls, and governance practices satisfy evolving requirements—especially around sustainability, digital risk, privacy, and ethics.

4. Liaison with regulators and stakeholders
   The company secretary may interact with the council, ESG bodies, SSM, securities regulators, and external auditors to ensure compliance, reporting, and stakeholder demands are met.

Thus, for firms and secretaries alike, this evolution means raising competency in ESG, digital governance, regulatory domain knowledge, and technology systems.

Steps for Sdn Bhd to Prepare for the New Era

To stay ahead in this changing environment, Sdn Bhd companies should actively take steps now:

1. Assess ESG readiness

Evaluate your current environmental policies, social impact, corporate governance practices, energy usage, waste, diversity, and sustainability metrics. Identify gaps.

2. Strengthen governance frameworks

Ensure that your board structure, audit committees, internal controls, and decision making integrate ESG and digital risk oversight.

3. Upgrade digital infrastructure and data systems

Implement or modernize systems for reporting, analytics, data governance, cybersecurity, and transparency.

4. Engage a forward‑looking company secretary

Ensure your company secretary has, or acquires, competence in ESG disclosures, regulatory trends, data systems, and corporate governance.

5. Stay compliant with SSM register requirements

Maintain up‑to‑date filings, statutory records, disclosures, and readiness to respond to newly mandated disclosures or integration with national systems.

6. Monitor policy developments and align strategies

Track announcements from PIKOM, Ministry of Digital, and related regulatory bodies about how the National Digital Council will operate. Be ready to adapt quickly.

Why the National Digital Council Is a Turning Point

If adopted, the National Digital Council could become a pivotal institution, shaping how Malaysia governs its digital economy, channels investment, and enforces ESG norms. For Sdn Bhd companies, that means governance is no longer just internal—it is part of national strategy.

By aligning early—through compliance, governance, technology, and capable leadership—firms will find opportunities in incentives, public sector contracts, partnerships, investor confidence, and access to new markets.

Company secretaries and corporate officers who position themselves as strategic enablers—not mere administrators—will be highly valued.

If you are forming a Sdn Bhd, ensuring proper SSM register compliance, or seeking a company secretary capable of navigating new digital and ESG demands, we are ready to assist.

source and more info at: https://www.bernamabiz.com/news.php?id=2473842

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