MIDA Highlights Emphasis on Technology Adoption and ESG Practices for Sustainable Investment Ecosystem
KUALA LUMPUR, December 11 (ANT) — The Malaysian Investment Development Authority (MIDA) is dedicated to discovering cost-effective mechanisms to expedite investments in sustainable projects, particularly in sectors such as renewable energy, hydrogen, and green growth. This commitment aligns with the government’s goal of achieving net-zero emissions by 2050.
Tan Sri Dr Sulaiman Mahbob, Chairman of MIDA, underscored the focus on promoting research and development (R&D) activities and staying abreast of the latest technology trends and emerging technologies. Collaborative efforts with local and foreign R&D institutions and technology providers are actively pursued, he informed Bernama.
The strategic emphasis is on nurturing local expertise in the evolving innovation landscape, ensuring Malaysia’s leadership in technological advancements related to sustainability and Environmental, Social, and Corporate Governance (ESG) practices.
This aligns with the New Industrial Master Plan (NIMP) 2030, a blueprint for resilient industrial transformation and sustainable growth, along with the ESG Framework. Sulaiman expressed concerns about stand-alone and non-exporting Small and Medium Enterprises (SMEs) that may not fully recognize the significance of integrating ESG into their business operations.
MIDA will take a proactive role in leading deals and negotiations for investment projects, particularly in manufacturing and selected services sectors. This involves redesigning promotional strategies to underscore the importance of ESG sustainable practices, he explained.
Key areas of focus include talent management for industrial development, comprehensive ESG adoption, and the development and strengthening of the industrial ecosystem in Malaysia. Collaborative efforts with the Ministry of Investment, Trade Industry (MITI), R&D institutions, industry, and other government stakeholders will be crucial to streamline ESG efforts.
Sulaiman emphasized that, to remain relevant in the global supply chain, SMEs have no alternative but to adopt ESG practices, given Malaysia’s commitment to net-zero emissions. Companies embracing sustainable business practices gain a competitive advantage, including access to new markets, sustainable supply chain development, and a stronger brand identity.
ESG reporting in earnings reports is becoming a trend, attracting investors and lenders interested in companies that invest in ESG and disclose their sustainability efforts. While acknowledging financial constraints faced by local businesses, especially SMEs, Sulaiman stressed MIDA’s role in providing comprehensive support and facilitation, including initiatives like MIDA’s Project Acceleration and Coordination Unit (TRACK).
In line with the government’s proactive approach to ease of doing business, the Invest Malaysia Facilitation Centre (IMFC) was established at MIDA headquarters from December 1, 2023, according to Sulaiman.
As of September 2023, MIDA has approved 4,073 green projects with a total investment value exceeding RM38.9 billion. Notably, green technology investments experienced a significant 24.6% growth from January to September 2023 compared to the same period last year, totaling RM1.5 billion across 490 projects. These investments encompass various green technology initiatives, including renewable energy, energy efficiency, integrated waste management, and green buildings and services under MIDA’s purview. Additionally, electric vehicle components and assembly attracted RM291.3 million in approved investments during the same period.
Source -BERNAMA / DG
