KUALA LUMPUR: It is imperative for the defence industry to embrace environmental, social and governance (ESG) pillars, particularly on good governance, says Datuk Seri Mohamed Khaled Nordin.
The Defence Minister said adopting the pillars were crucial in enhancing the rakyat's trust and stakeholders, nurturing strong international partnerships and the optimisation of resources.
He said Malaysia would refer to the benchmarks set by esteemed international institutions to underscore its commitment to good governance and best practices.
"It is fundamental for the defence industry to embrace ESG and its key pillars, particularly good governance. I have three justifications.
"Firstly, in any interactions, trust is key. To put it simply, good governance breeds trust and confidence. When we cultivate mutual trust as a societal norm, the spillover effect is enormous.
"A profound transformation can be found in the people and their awareness of efficient policy, thereby fostering a cohesive and cooperative society.
"Such unity will help create not only a more peaceful society but also healthy relationships and goodwill among all. This will be reflected in a better national budget, a stellar performance by our military, as well as growing interest among the best talents to join the defence sectors," he said in his speech at the National Security International Seminar, here, today.
Khaled said transparency, accountability, and the rule of law were the cornerstones of thriving good governance and having these principles would allow Malaysia to enhance its global reputation.
This, he said, would position Malaysia as a reliable and credible partner, adding that robust international partnerships would help extend the nation's reach and capabilities, allowing for shared information, joint exercises, and security cooperation to address mutual threats.
"Our active role in Asean, the Trilateral Cooperative Arrangement (TCA), the Malacca Straits Patrol (MSP), and the Five Power Defence Arrangements (FPDA), testify to our commitment towards regional security.
"To me, credible partnerships allow us to pool resources and capabilities crucial in confronting the emerging challenges of cybersecurity and climate change.
"It is imperative to remember that no country is too big to collaborate, nor too small to be heard," he added.
Khaled sais despite Malaysia's ability to weather the current global headwinds, being complacent with resources was not an option.
The optimisation of resources should focus on the annual budget allocation, future procurement trajectory, adoption of cutting-edge technology, and increased participation in the Reserve Units.
"This effort will develop a better defence ecosystem, underpinned by good governance principles. And these will only come into play when we have a robust governance framework, trusted by all," he said.
Khaled did not deny that achieving and maintaining high governance standards was not without its challenges.
"Corruption, inefficiency, and a lack of transparency can significantly undermine the foundation of trust and stability.
"These issues will erode public confidence and weaken the effectiveness of security frameworks.
"Our nation will be more vulnerable to internal and external threats. Addressing these challenges is imperative; it requires more than just incremental improvements," he said.
Khaled said the Malaysia Madani aspiration by the unity government, strived to ensure two things including immersing its administration in good governance practices and continue highlighting Malaysia as a country that is pro-trade, pro-stability, and pro-partnerships.
"I assure each and every one of you that our dedication and commitment are absolute, and nothing will hinder us.
