KUALA LUMPUR, October 16, 2024 – The ASEAN Business Advisory Council (ASEAN-BAC) Malaysia has taken a significant step toward encouraging more inclusive business practices across Southeast Asia with the soft launch of its first-ever Diversity, Equity, and Inclusion (DEI) Collective. Unveiled at the APAC DEI Summit 2024 hosted by LeadWomen, this initiative aims to galvanize private sector companies throughout the ASEAN region to adopt robust DEI policies that align with global standards and enhance their competitiveness on the world stage.

The DEI Collective is an integral part of Malaysia’s priorities as it prepares to assume the ASEAN Chairmanship in 2025. The initiative reflects a broader commitment by ASEAN-BAC to integrate economic growth with social progress by promoting diverse, equitable, and inclusive workplaces. It is also aligned with Prime Minister Dato’ Seri Anwar Ibrahim’s MADANI vision, which emphasizes building a just, inclusive, and progressive society.

What the ASEAN DEI Collective Aims to Achieve

The DEI Collective sets clear, actionable goals to guide companies across the region in implementing diversity and inclusion strategies. These include:

1. Transparency in Workplace Demographics: Companies are encouraged to report and make public their workforce demographics, ensuring that their employee base reflects the diversity of the ASEAN region.
2. Gender Parity in Leadership: The initiative aims to increase the representation of women in senior management and board roles, ensuring gender-balanced leadership across businesses in ASEAN.
3. Anti-Discrimination Policies: Members are required to enforce comprehensive policies that prevent discrimination on the basis of gender, race, religion, or other personal characteristics.
4. Pay Equity: Ensuring that employees receive fair and equal pay for equal work is a core pillar of the DEI Collective, with particular attention to closing the gender pay gap.
5. Support for Caregivers: The initiative advocates for more support mechanisms for employees who are also caregivers, promoting family-friendly policies in the workplace.
6. Zero-Tolerance for Violence and Harassment: Companies are expected to adopt stringent policies against violence, harassment, and abuse in the workplace, ensuring safe and supportive environments for all employees.

The DEI Collective has already attracted significant interest from leading businesses, with 12 companies joining as pioneer members. These include well-known names such as AirAsia, CIMB, Maybank, Khazanah Nasional Berhad, HSBC, and Standard Chartered. The participation of these major corporations signals a growing recognition that DEI is not only a social responsibility but also a business imperative that can enhance organizational competitiveness and attract global investment.

Building a Competitive Advantage Through DEI

The launch of the DEI Collective comes at a critical juncture as more businesses across Southeast Asia recognize the importance of integrating DEI into their corporate strategies. DEI is increasingly being seen as a core component of a company’s Environmental, Social, and Governance (ESG) framework, particularly under the ‘social’ pillar, which focuses on the welfare and inclusivity of employees and communities.

Jukhee Hong, Executive Director of ASEAN-BAC Malaysia, highlighted the growing pressure on businesses to release comprehensive ESG disclosures as investors, consumers, and suppliers demand greater transparency. “A growing number of companies across the globe are now required to disclose their ESG practices, and DEI forms an essential part of this reporting. While environmental issues often dominate ESG discussions, the social pillar, including DEI, is equally important in assessing a company’s long-term resilience and its societal impact,” she said.

Hong also noted that DEI has become a competitive advantage for businesses, particularly those looking to attract capital or expand their operations internationally. “This initiative is designed to partner with private sector companies across ASEAN to ensure that they remain competitive in the global marketplace, where investors are increasingly factoring in DEI when making decisions,” she added.

Support from Regional Leaders and Businesses

Anne Abraham, Founder and Chairperson of LeadWomen, underscored the business benefits of adopting DEI practices. “Not only do diverse and inclusive companies report higher levels of innovation, collaboration, and employee engagement, but DEI is also being acknowledged as a critical element of corporate governance. Companies that prioritize DEI are better positioned to build sustainable business models, attract talent, and secure the confidence of investors,” she said.

The DEI Collective is being spearheaded by ASEAN-BAC Malaysia with support from several ASEAN member states, including Singapore, Indonesia, the Philippines, and Lao PDR, among others. It is also backed by taskforce members from leading companies such as Ambank, CIMB, Maybank, and YTL Corporation, in collaboration with knowledge partner LeadWomen.

Tan Sri Nazir Razak, Chairman of ASEAN-BAC Malaysia, emphasized the need for DEI as part of the broader economic integration efforts within ASEAN. “As Malaysia takes on the ASEAN Chairmanship in 2025, the ASEAN-BAC is committed to assisting member states in deepening economic integration. However, economic progress must be accompanied by diverse perspectives, equitable opportunities, and a culture of inclusion that enhances both business competitiveness and community well-being,” Razak said.

He also urged businesses across the region to join the DEI Collective, stressing that inclusive practices are not just good for society, but also for business. “Together, we can build a region where opportunities are open to all, and where businesses thrive by being truly inclusive,” he concluded.

A Commitment to Continuous Improvement

As DEI is an ongoing journey, members of the Collective will continuously refine their strategies and programs based on feedback and evolving business needs. This collaborative approach ensures that the DEI Collective remains dynamic and responsive to the challenges and opportunities facing companies in the region.

The launch of the DEI Collective marks a pivotal moment for businesses in ASEAN, as they seek to align with global best practices and create workplaces that reflect the diversity and values of their communities. By embedding DEI into their operations, companies are not only fostering better workplaces but also positioning themselves as leaders in the competitive global economy.