SME to receive support in ESG transition: Tengku Zafrul
11 Apr 2023
The National Environmental, Social and Governance (ESG) Industry Framework, which is currently in development, will include help for small and medium enterprises (SME) to transit to ESG compliance, the International Trade and Industry (Miti) Minister Tengku Datuk Seri Zafrul Abdul Aziz said.
He said the framework is expected to be completed by year-end, slightly earlier than previously announced by Miti.
“The framework aims to guide companies in transitioning to ESG standards, particularly for SME. These companies not only need funding but also capacity building as you know a lot of our export markets are asking exporters to be ESG-compliant, so we need to prepare our companies in transition to be more ESG-compliant,” Tengku Zafrul told reporters after the launch of Malaysia’s first battery energy storage system (BESS) for renewable energy today. The system was developed by Citaglobal Genetec Sdn Bhd, a special-purpose vehicle formed by Citaglobal Bhd and Genetec Technology Bhd.
Miti said the framework, which would be designed in collaboration with its agencies, would encourage the manufacturing sector to adapt to ESG, comprising four key components namely standards, financial support and incentives, capacity building, and market mechanisms, including carbon trading and carbon pricing.
Earlier when delivering his speech at the event, Tengku Zafrul said, “In 2022, global renewable energy capacity rose by 10%, while investment in the green energy transition amounted to a record US$1.1 trillion (RM4.8 trillion) worldwide. All these reflect the world’s firm shift towards a future increasingly powered by renewable energy.
For Miti, one priority under the New Investment Policy involves strengthening Malaysia’s ESG adoption, in support of Malaysia’s net zero target by 2050, and a key component of this is to rethink how the country generate, distribute, store, supply and consume energy.
“To this end, the development of Malaysia’s homegrown MYBESS, by Citaglobal Genetec BESS, is not only a step in the right direction in support of Malaysia’s future (renewable) energy security, but also an important opportunity to begin positioning Malaysia in high-technology industries and higher in the global value chain,” said Tengku Zafrul.
He added, “The time to act is now, and through the New Industrial Master Plan 2030 which will be launched later in the year, Miti is taking bold steps to enhance our industrial ecosystem, underscored by key considerations such as ESG compliance and future industrial energy sufficiency.”
Source: The Sun Daily