This study compares the efficient use of Environmental, Social, and Governance (ESG) practices in small and medium-sized enterprises (SMEs) in Malaysia and Taiwan. While these economies mainly depend on SMEs for economic resilience, they differ in terms of ESG development and policy support. Illustrating the Triple Bottom Line (TBL) and Institutional Theory, this research analyzes data of 78 Taiwanese and 507 Malaysian SMEs through regression and correlation analysis in considering business performance in relation to ESG. The outcomes show Taiwanese SMEs having stronger governance systems and environmental observance due to rigorous regulatory environments as well as technology-based governance tools. In comparison, Malaysian SMEs enjoy more social strengths in gender equality and inclusive policy with government-backed interventions. However, there still exist infrastructure shortages, limited ESG awareness, and compliance costs. The study emphasizes context-based development of ESG practices and makes policy recommendations for enhanced SME sustainability and resilience in both countries. The results are essential to policymakers, development institutions, and ESG-driven investors looking to synergize SME growth with national sustainability policy and the UN SDGs.