Bursa top 20 donations in 2023 triple to RM382m
November 14, 2024
Tenaga Nasional, Sime Darby Plantation and Telekom Malaysia ranked among the top cash givers based on giving-to-profit ratio.
The newly released Bursa Top 20: Who’s the most charitable? report by Wiki Impact unveils the top 20 publicly listed Malaysian companies making significant strides in corporate philanthropy.
The 2023 analysis reveals substantial growth in corporate contributions, particularly cash donations, with these companies collectively donating RM381.81 million in 2023—nearly tripling the 2022’s total of RM129.25 million. This rise signals a strengthened commitment on social responsibility by the corporate sector aiming to uplift communities, support environmental causes, and enhance the country’s philanthropic landscape. Key findings: A record year in corporate giving The philanthropic efforts are divided into three major trends: Cash giving champions
Other significant contributors include Maybank at RM42.54 million, CIMB Bank with RM32.90 million, and IHH Healthcare at RM35.64 million. Companies like Public Bank and MISC added RM1.20 million and RM29.60 million respectively to social initiatives. Meanwhile, firms such as RHB Bank (RM4.99 million), Time dotCom (RM0.19 million), YTL Power International (RM7.40 million), and Celcom Digi (RM2 million) also demonstrated their commitment to corporate giving. Despite varying profit scales, other notable donors include Petronas Chemical (RM3 million), Sime Darby (RM25 million), and PPB Group, which contributed RM2.41 million. The top 20 Bursa companies donated RM381.81 million in cash in 2023, a sharp increase from RM129.25 million the previous year. This reflects growth in corporate philanthropy and reporting transparency. The average cash-giving-to-net-profit ratio rose to 0.82%, up from last year’s figure of 0.35%. For global context, top U.S. corporate donors like Gilead Sciences contributed $388 million in 2019 (2.90% of pre-tax profit), while Goldman Sachs Group donated 2.50% of its pre-tax profits, totaling $280 million. Meanwhile, India stands out as the first country in Asia to mandate corporate social responsibility (CSR). Under the Companies Act 2013, qualifying companies must allocate 2% of their average net profit over the past three years to local social and environmental causes. In-kind giving leader Beyond cash donations, companies made substantial in-kind contributions, such as food, products, and volunteer services through CSR programs. However, some reported total community investments without detailing the value of in-kind contributions.
"True transparency in corporate giving goes beyond cash donations to include in-kind contributions. Without detailed data, companies risk oversimplifying their community investment, blending cash and in-kind giving and masking their full impact,” said Terence Ooi, Co-Founder of Wiki Impact. Focus on education and environmental causes In 2023, education remained the top priority for corporate giving among the leading 20 companies, with 38.3% of their contributions directed toward educational initiatives. These funds supported various programs, including skills development, training, and the improvement of educational facilities. Environmental causes also attracted significant attention, receiving 17.2% of corporate donations, with companies investing in sustainability initiatives like reforestation and conservation projects. Additional contributions were allocated across diverse causes: 11.5% supported welfare initiatives, 10.2% went to sponsorships, 9.1% aided community development, and 7.5% was dedicated to health-related projects. Meanwhile, smaller portions were directed towards relief aid (4.0%), arts and culture (1.6%), and sports (0.5%), reflecting a broad commitment to addressing a range of social and community needs. Transparency challenges and need for standardized reporting Despite these gains, the report identifies an ongoing challenge with consistency in reporting and transparency. Only eight companies incorporated the Bursa ESG reporting performance data table template in their 2023 annual reports, leading to significant variations in how donations—particularly in-kind contributions—are reported. This lack of standardization complicates comparative analysis, emphasizing the need for clearer guidelines to foster transparency and accountability in Malaysia’s corporate philanthropy. Bridging corporate success with philanthropic impact The Bursa Top 20: Who’s the most charitable? report stands as both a benchmark and a rallying call. As corporate philanthropy grows, companies are encouraged to weave giving into their sustainability strategy, driving impact that reaches beyond profits. “Profit-making companies must recognize corporate philanthropy not just as an obligation, but as an investment in the future and a responsibility for those who have the means. While this report highlights that corporate philanthropy is gaining momentum and emerging as a powerful driver of societal and environmental change, we hope it will inspire more companies to strengthen their commitment to responsible giving and transparency. It is essential in tackling Malaysia’s pressing issues such as educational gaps, youth unemployment, and environmental challenges where government and non-profit resources often fall short,” said Ooi. |
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