Ahmad Saiful Azlin Puteh SalinSiti Marlia ShamsudinNorliana OmarSuryani Abdul Raman2024-05-302024-05-302023Puteh Salin, A. S. A. ., Shamsudin, S. M., Omar, N., & Abdul Raman, S. (2023). ESG Compliance – Challenges For MSMEs in Malaysia. I-IECONS E-Proceedings, 10(1), 114–122. https://doi.org/10.33102/iiecons.v10i1.1292805-474110.33102/iiecons.v10i1.129https://epiiecons.usim.edu.my/index.php/eproceeding/article/view/129https://oarep.usim.edu.my/handle/123456789/1716010th INTERNATIONAL ISLAMIC ECONOMIC SYSTEM CONFERENCE 2023 (I-iECONS 2023) : “Sustainable Development through Innovative Economic Transformation” /Editors : Amalina Mursidi, Agoos Munalis Tahir, Suhaida Herni Suffarruddin, Norfhadzilawati Rahim, Murad Ali Ahmad Al-Zaqeba, Muhammad Iqmal Hisham Kamaruddin Conference Dates: August 14 2023 | Conference Location: Millennium Makkah Al Naseem Hotel Mecca Saudi Arabia Organized by Faculty of Economics and MuamalatAs Malaysia now facing many problems like high living cost, unemployment, natural disaster, corruption and high crime rate, adopting Environment, Social and Governance (ESG) standards and practices is a must by every business entity. For large company like public listed companies (PLCs), complying with ESG not a huge problem due to their size and nature of business that directly impact the ESG elements. However, Micro, Small and Medium Enterprises (MSMEs) find difficulties to meet ESG rigorous standards due to lack of fund, expertise, and knowledge. Besides, it is not feasible for them to meet all the requirements due to their small size and narrow nature of business. Thus, the objective of this paper is to discuss the problems and challenges faced by MSMEs to adopt ESG at every level of their business operations.en-USESG; sustainability; environment; small and medium enterprises; SMEsArticle114122