MGB Bhd won two gold awards at The Edge Malaysia ESG Awards 2025, for being the best performer in the construction sector and in the outstanding ESG performance and dividend return categories.
MGB group executive chairman Tan Sri Dr Lim Hock San attributes the win to the successful implementation of sustainable construction practices within the company. This is through the adoption of the Industrialised Building System (IBS) precast technology and Building Information Modelling (BIM), which have optimised the company’s construction processes, reduced overall energy use and lowered its carbon footprint, he says.
According to the company’s sustainability report in 2024, the adoption of the IBS precast technology led to a 33% reduction in construction time and a 31% decrease in reliance on manual labour, enabling faster project delivery while mitigating labour shortages.
For MGB, ESG principles are an integral part of its operations. Lim says the company has strived to enhance its governance structure, and adopted the latest technologies and digitalisation to reduce waste and energy consumption.
Although the company has made significant progress, Lim acknowledges challenges in managing expenses tied to its sustainability efforts. That is because investing in technologies that are more environmentally friendly could mean a higher cost of doing business.
“We must reduce our carbon footprint and deliver faster. Through our Value Driven Technology (VaDTech), we are conducting deep research on how we can optimise our costs while decarbonising our operations through implementation of the latest technology and best engineering practices,” he says.
VaDTech is a set of innovative tools that allow the company to enhance time management, value, quality, resources and operational processes throughout all activities.
Lim says one of the company’s biggest achievements is obtaining a FTSE4Good ESG rating of 3.7. Public listed companies (PLCs) with a rating of 3.7 or higher are given four stars in Bursa Malaysia’s ESG grading band.
“As at June 2025, only three construction companies in Malaysia were listed as 4-star achievers. This did not happen overnight,” he adds.
“To accelerate ESG adoption nationwide and among more PLCs, we welcome government incentives such as tax relief for renewable energy integration and green building technology.”
Moving forward, the company plans to advance climate-resilient technologies by increasing renewable energy use at its manufacturing sites and further expanding IBS and BIM deployment to reduce carbon intensity and shorten construction timelines.
“We will continue to do what we do best, which is to deliver more affordable and quality housing that improves people’s lives. Our focus is to strengthen our governance structure and risk management through the implementation of ESG key performance indicators and enhancement of existing company policies,” says Lim.
This article first appeared in The Edge Malaysia Weekly on October 20, 2025 – October 26, 2025
