PETALING JAYA: The Federation of Malaysian Manufacturers (FMM) remains steadfast in its commitment to environmental, social and governance (ESG) adoption despite growing concerns over the potential impact of Donald Trump’s return to power in the United States.
FMM vice-president Jacob Lee Chor Kok said FMM has actively encouraged ESG compliance among its members by organising capacity-building programmes, annual conferences and seminars.
“We have also collaborated closely with the Investment, Trade, and Industry Ministry, the Science, Technology and Innovation Ministry and the Malaysian Investment Development Authority (Mida) to assist companies in developing ESG roadmaps and conducting self-assessments on compliance readiness,” he told reporters at the launch of Public-Private ESG Partnership today.
Lee emphasised the importance of sustainability, stating that the federation is committed to building a resilient, energy-efficient, and sustainable manufacturing sector.
“However, with Trump back in office, there are concerns that ESG adoption may be affected over the next four years.
“Well, there would definitely be some effect. However, other regions, like the European Union, are expected to proceed with their climate policies, such as the Carbon Border Adjustment Mechanism,” he said.
On financial support, Lee said FMM has about RM2 million in bank loans available for industry players to apply for, although exact figures remain unconfirmed.
“Discussions also touched on labour policies, with FMM backing the implementation of the new minimum wage and the 2% increase in the Employees Provident Fund contribution.
Beyond trade concerns, Lee noted that climate change remains a pressing issue, impacting human survival.
“In Malaysia, the effects of extreme weather, including frequent floods, highlight the urgency of sustainable practices. FMM reaffirmed its stance, stating that it will continue championing ESG adoption and promoting a greener industrial sector,” he said.
Additionally, Lee expressed support for the progressive wage policy, emphasising the need for more awareness and collaboration with ministries to ensure successful adoption.
Despite challenges, he said, Malaysia’s economic outlook remains cautiously optimistic.
“The country has assumed Asean leadership this year, and reports indicate an increase in foreign direct investment (FDI).
“Notably, data centres, China Plus One and Taiwan Plus One investments are on the rise, contributing to economic development and export growth. Even though Trump has stepped in, there are still many factors to monitor. However, with the inflow of FDI into Malaysia and Asean, we are optimistic about future improvements,” he added.
As uncertainties surrounding Trump’s policies continue, Lee said, FMM remains committed to its ESG and economic sustainability agenda, ensuring that Malaysian industries are prepared to navigate global shifts while maintaining progress in sustainability and economic resilience.
Meanwhile, Glocomp Systems (M) Sdn Bhd information and communications technology solutions provider in Malaysia, launched a strategic collaboration with key industry stakeholders to drive sustainability adoption in the manufacturing sector.
The partnership includes FMM, Mida, Malaysia Digital Economy Corporation and Microsoft Malaysia, with support from the Digital Ministry. All parties share a common goal of empowering manufacturers with digital solutions to enhance ESG practices.
