KUALA LUMPUR – A national environmental, social and governance (ESG) framework for Malaysia’s manufacturing industry is underway, according to Senior Minister and Minister of International Trade and Industry (MITI), Datuk Seri Mohamed Azmin Ali.
Speaking at the recent MITI Dialogue Session, the minister said that this ESG framework will be formulated in line with the country’s target of achieving net-zero greenhouse gas emissions by the year 2050.
He stated that the ESG framework will be developed through consultation and engagement with local and international manufacturing, regulatory, and financial sector partners.
At the same time, he said that MITI will also offer a framework to mainstream ESG elements in the manufacturing industry that would include the four main components: financial support and incentives, capacity building, ESG standards, and market mechanisms including carbon trading and carbon pricing.
Additionally, Mohamed Azmin said that the framework’s advancement would depend on the level of achievement in stakeholder involvement and collaboration.
“In addition to the National Investment Aspirations (NIA) objectives, MITI will increase its attention on areas such as the digital economy, electrical and electronic, pharmaceuticals, chemicals, and aerospace, which have great economic potential and sustainable long-term advantages,” he stated.
The MITI Dialogue Session is an annual series organised by MITI based on a consultative approach with stakeholders towards the holistic formulation and review of policies in order to ensure Malaysia’s economy will grow through increasing international trade, sustainable industrial development and quality investment.
The recent session, held on Aug 25, saw participation from 12 ministries and 151 organisations.
Also at the event, the senior minister said that the ministry had received over 96 memorandums that covers 24 categories out of 396 of the issues that were presented to the government for consideration.
With regards to the challenges that the current geo-political and global economy are causing, he said that the government is still resolved to ensure Malaysia progresses in productivity and competitiveness despite the global inflationary pressures that are outside anyone’s control.
Meanwhile, he also emphasised on the need to come up with a long-term solution for the issue of foreign workers. This would be to reduce and eventually abolish the domestic industry’s reliance on low-skilled labour.
Some of the proposals noted in the MITI Dialogue will be forwarded to the Ministry of Finance for consideration in the development of Budget 2023
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