MITI to develop national ESG framework for Malaysia's manufacturing sector

It will include four main components – ESG standards, financial support and incentives, capacity building, and market mechanisms including carbon trading and carbon pricing.

Malaysia's Ministry of International Trade and Industry (MITI) will be drawing up a national environmental, social, and governance (ESG) framework for the manufacturing sector, in line with the nation's target of net zero greenhouse gas emissions by 2050.

As announced by Senior Minister and Minister of International Trade and Industry, YB Dato' Seri Mohamed Azmin Ali, the framework will mainstream ESG elements in the development of the sector, which will include four main components – ESG standards, financial support and incentives, capacity building, and market mechanisms including carbon trading and carbon pricing.

The framework, MITI said, will be formulated based on consultation and engagement with local and international stakeholders, involved in the manufacturing, regulatory and financial sectors. Its progress will then be dependent on the level of achievement in engagement and collaboration with stakeholders.

The above was announced  during an engagement session at the MITI 2022 Dialogue Sessions chaired by Senior Minister Azmin last week. Another key topic brought up during the sessions was on foreign workers, whereby the Senior Minister underscored the imperative for a long-term solution in order for the domestic industry to reduce and eventually eliminate its dependence on low-skilled labour.

He also urged the manufacturing sector, especially SMEs, to continue to invest and adopt advanced manufacturing technology to increase productivity and reduce the costs of doing business.

Photo / MITI's Facebook

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