Malaysia to Develop ESG Framework for Manufacturing Sector
It will have four major components: ESG guidelines, financial support and incentives, capacity building, and market mechanisms such as carbon trading and pricing.
Malaysia's Ministry of International Trade and Industry (MITI) will create a national environmental, social, and governance (ESG) framework for the manufacturing sector to achieve the country's goal of net zero greenhouse gas emissions by 2050.
According to YB Dato' Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry, the framework will mainstream ESG elements in the sector's development and will include four main components: ESG standards, financial support and incentives, capacity building, and market mechanisms such as carbon trading and carbon pricing.
According to MITI, the framework will be developed through consultation and involvement with local and international players from the manufacturing, regulatory, and financial sectors. Its progress will then be determined by the level of participation and collaboration with stakeholders.
The above was announced last week during the MITI 2022 Dialogue Sessions, hosted by Senior Minister Azmin. Another topic discussed during the sessions was the issue of foreign workers, with the Senior Minister emphasising the importance of a long-term solution for the domestic industry to reduce and eventually remove its reliance on low-skilled labour.
He also urged the industrial sector, particularly SMEs, to continue to invest in and adopt new manufacturing technology to enhance productivity and lower operating costs.
Source: Human Resources Online.net