EUROCHAM Malaysia CEO, Mr. Sven Schneider, and the team attended a discussion on the adoption of Environmental, Social, and Governance (ESG) for the manufacturing sector organised and chaired by YBhg Dato' Sri Norazman Ayob, Deputy Secretary General (Industry), Ministry of International Trade and Industry (MITI) on 6 September 2022.

In accordance with the aspirations put forth during the MITI Dialogue last month, the Malaysian government has set a target to become a nation with net-zero carbon emissions by 2015 under the 12th Malaysian Plan. The Malaysian government is committed to coming up with a framework to mainstream the adoption of ESG in accordance with the New Industrial Masterplan (4th edition) and New Investment Policy framework based on the National Investment Aspiration along the following tangents:

1.     Standards

a.     Carbon emission;

b.     Adherence to human rights per 11 indicators put forth by International Labour Organisation (ILO);

c.      ESG standards per financial institutions (Securities Commission, Bursa Malaysia, Bank Negara)

2.     Financing & Tax Incentives 

3.     Capacity Building

4.     Market Mechanism

Tax incentives are being looked into, particularly those facilitated by the Malaysian Investment Development Authority (MIDA). Companies may be distinguished between ESG-compliant and ESG non-compliant, whereby the latter may result in failure of obtaining grants from the government. As for those with grants, a suspension may be inevitable or additional conditions may be imposed.

The creation of a Centre of Excellence is underway to showcase best ESG practices by multinational corporations and mid-tier companies and the membership will be opened to both public and private sectors.

#MITI #ESG #manufacturing #sector #dialogue #netzero #emission #12MP #NewIndustrialMasterplan #NewInvestmentPolicy #ILO #MIDA #EUMYstrongertogether #eurochamy