KUALA LUMPUR: The Malaysian Investment Development Authority (MIDA) and Perusahaan Otomobil Kedua Sdn Bhd (Perodua) today organised an Environmental, Social and Governance (ESG) Awareness Session for local automotive vendors.
In a joint statement today, the two organisations said the session, held at Perodua's headquarters in Sungai Choh, Rawang, brought together about 50 Perodua vendors to enhance their understanding of ESG practices and support their efforts to meet rising global sustainability requirements.
MIDA chief executive officer (CEO) Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said as ESG becomes an increasingly important factor in investment and sourcing decisions, Malaysian companies, particularly small and medium enterprises (SMEs), must strengthen their sustainability capabilities to remain globally competitive.
"Through our collaboration with Perodua, MIDA is equipping local vendors with the knowledge, facilitation and financial support they need to accelerate their ESG journey through initiatives such as the Domestic Investment Accelerator Fund (DIAF) - ESG Adoption.
"By strengthening domestic capabilities today, we are helping Malaysian companies seize future opportunities while supporting the nation's transition towards a more sustainable and resilient industrial economy,” he said.
The DIAF - ESG Adoption is a matching grant introduced by MIDA to support Malaysian-owned SMEs and mid-tier companies in the manufacturing and selected services sectors as they transition towards ESG practices.
Perodua president and CEO Datuk Seri Zainal Abidin Ahmad said stronger sustainability capabilities would enable more local vendors to participate meaningfully in the automotive supply chain.
"We appreciate MIDA’s continued support in advancing ESG adoption, particularly among SMEs, as stronger sustainability capabilities will enable more local vendors to participate meaningfully in the automotive supply chain.
"Perodua remains committed to supporting ESG initiatives across the automotive ecosystem and will continue to lead by example by integrating ESG principles and the Sustainable Development Goals (SDGs) into our business operations and supply chain development,” he said.
The organisations said the programme builds on the MIDA-Perodua Digital Transformation Ecosystem (DTE) Programme by expanding the collaboration beyond digitalisation to strengthen ESG capabilities and promote sustainable business practices among local vendors.
"As global supply chains evolve, sustainability has become an increasingly important requirement for
manufacturers seeking to remain competitive and meet international market expectations,” they said.
The programme also featured an industry sharing session by Emerging EPC Sdn Bhd CEO Dr John Loh, who shared the company's ESG transformation journey and the benefits of ESG adoption, including support received under MIDA's DIAF - ESG Adoption.
Participants also attended a presentation by Genashtim Sdn Bhd head of ESG services Ee Beng, who shared practical approaches to integrating ESG practices into business operations and introduced the B Impact Assessment (BIA) framework to help companies assess, measure and improve their ESG performance.
The session concluded with a briefing by MIDA on the DIAF - ESG Adoption, outlining the financial assistance available to Malaysian companies, as well as the eligibility criteria and application process. - Bernama
