Esther Yap of Forvis Mazars: ESG reporting now fundamental to business credibility

She examines the role of auditors in strengthening investor confidence, ESG developments, and Malaysia’s future business environment.

Malaysia’s business landscape continues to be one of Southeast Asia’s most dynamic, amidst a diversified economy and active participation in regional and global trade, which have made it an attractive destination for investment and business expansion.

Offering her sharp insights is Esther Yap, Forvis Mazars Partner for Audit, who holds over 30 years of experience in chartered accounting within Malaysia. She brings deep expertise that closely mirrors the evolution of the country’s business environment.

Her work leading assurance engagements for public interest entities and serving as a reporting accountant for sectors such as construction, property development, and highway concessions reflects key industries driving Malaysia’s economic growth. In addition to statutory audits, she has been actively involved in a range of special engagements, including profit-sharing contract audits, due diligence exercises, share valuations, and forensic audits, amongst others.

Complementing this technical depth, Yap’s active participation in professional committees and sustainability initiatives highlights her commitment to strengthening governance, transparency, and ESG practices, all of which have now become an increasingly important focus for businesses across Malaysia.

Speaking as one of the esteemed judges for the Malaysia International Business Awards and Malaysia National Business Awards 2026, she highlights key challenges and developments in the accounting profession whilst also seeking perspectives on the role of auditors in building investor confidence, the growing impact of ESG expectations, and the outlook for Malaysia’s business and governance landscape.

With over 30 years of experience in chartered accounting firms, what key professional experiences have most shaped your approach to audit and assurance today?

Over more than three decades in chartered accounting firms, I have had the privilege of witnessing — and adapting to — several major shifts in our profession. These include significant changes in accounting frameworks and key standards, the computerisation of business processes, the millennium bug, and now the introduction of artificial intelligence into our daily work.

Each of these transitions reinforced an important lesson for me: change is constant, but our professional values must remain steady. I learned to embrace innovation whilst remaining firmly anchored in ethical standards, which are non-negotiable in our profession.

Our role as auditors is ultimately to protect public trust, not merely ticking the boxes — although, admittedly, we do tick increasingly more boxes these days. What truly matters is the quality of judgement behind those boxes.

This perspective strongly influences my leadership style today. I place emphasis on ethical standards, professional scepticism, and developing teams with strong technical excellence who understand that high-quality audit is not just about process or compliance, but about responsibility, independence, integrity, and the confidence we help sustain in the markets.

As a member of MICPA’s Accounting & Auditing Technical Committee and Public Practice Committee, what emerging industry or ethical issues are currently top of mind for the profession?

From my perspective on MICPA’s technical and public practice committees, several emerging industry and ethical issues are very much top of mind for the profession.

First is the pace of change in reporting and assurance requirements, sometimes so rapid that by the time we finish discussing one standard, another exposure draft appears.

Second is the use of technology and AI in audits. Whilst these tools are powerful and efficient, there is a real risk of over-reliance — taking outputs without sufficient understanding or challenge. In my view, technology should enhance professional judgement, not replace it.

The ethical responsibility for judgement and conclusions always remains with the auditors. Independence and professional scepticism under commercial and time pressures also remain critical concerns. Balancing efficiency with objectivity is increasingly difficult but essential to maintaining public trust.

Finally, talent sustainability and audit quality. We need more professionals than ever before, and developing people who can exercise sound judgement whilst meeting deadlines is a growing challenge.

How important is the role of auditors and reporting accountants in strengthening investor confidence in Malaysia’s markets?

The role of auditors and reporting accountants is absolutely central to strengthening investor confidence in Malaysia’s capital markets. At its core, a well-functioning market depends on trust — and trust depends on the credibility of financial information.

Auditors serve as independent gatekeepers. We do not create value in the way businesses do, but we play a critical role in validating it. By providing independent assurance over financial reporting, auditors help investors, lenders, and other stakeholders make informed decisions with confidence.

Reliable financial reporting forms the foundation of any capital market. From experience, investor confidence is not built by one strong audit, but it can be severely damaged by one high-profile failure. Audit quality is therefore not just a professional obligation — it is a market imperative.

Strong audit and reporting practices signal that our governance frameworks are robust and aligned with global expectations. Ultimately, auditors and reporting accountants act in the public interest. By upholding independence, professional scepticism, and high standards of quality, we contribute directly to market confidence, economic resilience, and long-term investor trust.

Being actively involved in sustainability initiatives, how do you see ESG expectations reshaping the responsibilities of auditors and assurance providers in Malaysia?

ESG expectations are fundamentally reshaping the responsibilities of auditors and assurance providers in Malaysia because sustainability information has become increasingly decision-critical. Investors, regulators, and other stakeholders are no longer viewing ESG disclosures as supplementary narratives — they are using them to assess risk, resilience, and long-term value creation.

In Malaysia, this shift is clearly reflected in regulatory developments. The launch of the National Sustainability Reporting Framework by the Securities Commission Malaysia has set a structured, phased pathway for sustainability reporting, aligned with the IFRS Sustainability Disclosure Standards — IFRS S1 and IFRS S2. Listed issuers on Bursa Malaysia are now required to incorporate sustainability statements into their annual reports, moving ESG firmly from voluntary disclosure to a more standardised and comparable reporting regime. As ESG information becomes more structured and integrated into mainstream reporting, independent assurance over non-financial data is also required. However, unlike financial data, ESG data rarely comes neatly packaged in a trial balance.

Malaysia also has the International Standard on Sustainability Assurance 5000 and the International Ethics Standards for Sustainability Assurance. For auditors and assurance providers, this represents both a responsibility and an opportunity. We must build capability in new subject areas, develop appropriate methodologies, and apply professional scepticism to data that is often forward-looking and judgement-based. At the same time, this evolution reinforces our core public-interest role — enhancing the reliability of information that markets rely on.

As an assurance leader and sustainability advocate, what gives you confidence about the future of Malaysia’s business and governance landscape?

What gives me confidence about the future of Malaysia’s business and governance landscape is that we are clearly moving in the right direction, very much forward.

Governance expectations evolve from being largely principle-based and voluntary to becoming far more structured and disciplined. Today, ESG reporting is no longer viewed as “nice to have" but as fundamental to business credibility.

Having observed this evolution over many years, I am encouraged by how governance and sustainability conversations have matured. ESG discussions are no longer brief updates at the end of meetings — they now last long enough for the coffee to be refilled, which usually means the questions are getting more serious.

From an assurance perspective, this is a very positive development. Stronger ESG expectations drive better data, clearer accountability, and more robust decision-making. Auditors and assurance providers play an important role here — not as compliance gatekeepers, but as contributors to credibility and trust.

I am also optimistic about the growing alignment between sustainability and business strategy. More organisations recognise that ESG directly influences access to capital, reputation, and long-term resilience — precisely what these business awards are recognising.

Finally, I draw confidence from the people shaping this future. There is a new generation of professionals who are values-driven, comfortable with complexity, and willing to challenge established thinking. Our responsibility is to ensure they develop professional judgement and ethical courage to match their technical skills.

As long as integrity, independence, and professional judgement remain central, I am optimistic about Malaysia’s ability to build a resilient, trusted, and sustainable business landscape — one that ESG-focused awards are rightly beginning to celebrate.

As a judge for the Malaysia International Business Awards and Malaysia National Business Awards 2026, what specific qualities are you going to look for in the exceptional entries?

As a judge for the Malaysia International Business Awards and Malaysia National Business Awards 2026, I will be looking for organisations that demonstrate sustainable business performance, not just strong results in a single year. Exceptional entries are those that show resilience, consistency, and the ability to perform across different economic cycles.

Strong governance and leadership are fundamental. I am interested in how decisions are made, how risks are managed, and how accountability is embedded across the organisation. Anyone can look impressive in a glossy submission, but good governance usually shows itself when things do not go exactly according to plan.

Innovation is also important, whether it solves real problems, supports sustainability objectives, and creates long-term value.

Ethical practices and stakeholder impact matter greatly. Exceptional organisations understand that success is not achieved in isolation and that ESG leadership is reflected in behaviours and outcomes, not just policies.

Above all, I will be looking for long-term value creation, not short-term wins. Sustainable value is rarely the fastest route, but it is usually the one that lasts.

In short, the entries that stand out will be those that combine strong performance with strong values — demonstrating that ESG excellence and business success are increasingly the same thing.