75% of Malaysia's exports to EU impacted by carbon border adjustment mechanism - SC


SC: There is an increasing proliferation of disclosure standards and ESG requirements being imposed at an international and domestic level, all of which require compliance and attention from corporates

KUALA LUMPUR: 75 per cent of Malaysia’s exports to the European Union (EU) will be impacted by the EU’s Carbon Border Adjustment Mechanism (CBAM), albeit collectively accounting for only about eight per cent of Malaysia’s total exports in 2021 to 2023.

The Securities Commission Malaysia (SC) said in its Capital Market Stability Review 2023, released today, that more climate and environmental, social, and governance (ESG)-related policies, like CBAM, particularly from entities like the EU and advanced economies, have the potential to affect Malaysian firms through multiple channels.

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