Malaysia to launch ESG framework by year-end - Tengku Zafrul


BANGI: The government will launch a framework on environmental, social and corporate governance (ESG) standards by year-end to help local companies transition into renewable energy, said International Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz today.

He said the framework will focus on small and medium enterprises (SMEs) to help them in terms of funding and capacity building for export.

"A lot of our export markets are asking exporters to be ESG-compliant, so we need to prepare our companies, especially our SMEs to transition to be more ESG-compliant," he told reporters after the launch of Malaysia's first battery energy storage system (BESS) for renewable energy here today.

The system was developed by Citaglobal Genetec Sdn Bhd, a special-purpose vehicle formed by Citaglobal Bhd and Genetec Technology Bhd.

The launch showcased the fully operational one-megawatt BESS prototype (MYBESS) that was developed and piloted in December 2022 and currently supports Genetec Technology EPIC plant’s energy needs.

Tengku Zafrul said one of Malaysia’s competitive advantages was renewable energy and local innovation such as MYBESS would attract more investment into Malaysia.

"The framework involves consultations with the industry as well. We want to be fair because we do not want to come out with a policy that is not in line with what the industry is ready for,” he added.

Earlier in his speech, Tengku Zafrul said the presence of MYBESS can serve as one of the main initiatives under the National Automotive Policy 2020 to support the development of the Electric Vehicle Interoperability Centre (EVIC).

"This will further enhance the smart grid integration between electric vehicles and infrastructure in Malaysia. This development will support both upstream-downstream industries and complete the demand-supply of battery’s repurposing, power generation and carbon reduction initiatives,” he added.

Tengku Zafrul said that at one megawatt per unit, MYBESS is industrial capacity ready, while also being viable for homes, retail services such as electric vehicles charging stations, micro industries, businesses, markets and rural electrification.

"Over time, all efforts contribute to Malaysia’s efforts to achieve our Net Zero Carbon commitment by 2050, while improving the overall quality of lives and access to key enabling facilities and amenities for the rakyat, he added.

"And we must capitalise on this first-to-market advantage to embed this Malaysian-grown MYBESS solution in the global renewable energy supply chain.

"By doing so, we can pave the way for Citaglobal Genetec BESS and many more Malaysian companies to develop this early mover advantage in the renewable energy space that is rapidly unfolding, but looks set to have a long runway ahead of it,” he added. - Bernama

Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Business News

Foreign investors turn net sellers of local equities valued at RM503.1mil
FBM KLCI to trend sideways
Trading ideas: KUB, Sapura Energy, Jetson, Pekat and Orgabio
PetChem set for gradual recovery
Genting, subsidiary in for a better 2024
FGV expects productivity improvement for FY24
Encouraging loan growth of 4%-5.8% likely
Maybank Islamic allocates almost RM36mil for CSR this year
Beyond just a Swift lift to economy in first quarter
Alibaba price cut heats up cloud services market

Others Also Read