PETALING JAYA: Malaysia is proactive in adapting to global sustainability regulations, said ESG financial technology solutions provider STACS (Hashstacs Pte Ltd.
STACS managing director and founder Benjamin Soh said Malaysia has been actively adapting to the increasing global focus on sustainability and green manufacturing in recent years.
“Besides ensuring that it is complying with global sustainability regulations, its proactive approach ensures that Malaysian businesses can navigate the complexities of the global market while contributing to the local economy sustainability,” he told SunBiz.
Soh highlighted Malaysia’s measures to meet regulatory requirements such as the Carbon Border Adjustment Mechanism (CBAM) and the International Sustainability Standards Board (ISSB) standards.
“Malaysia is taking significant steps to align with international carbon regulations, such as the European Union’s CBAM,” he noted.
CBAM imposes tariffs on carbon-intensive goods imported into the European Union, which Soh said makes it crucial for Malaysian exporters to reduce their carbon footprints.
“Regulators and industries are focusing on improving carbon efficiency and transparency to ensure competitiveness in the global market,” he added.
Soh said Malaysia is also integrating the ISSB standards, beginning from January, into its regulatory framework, which requires detailed sustainability disclosures.
“The country is integrating these standards into its regulatory framework to enhance the quality and consistency of ESG reporting. This includes the adoption of frameworks like the Simplified ESG Disclosure Guide (SEDG) to help SMEs in supply chains comply with these stringent requirements,” he said.
Moreover, Soh said, Malaysia’s National Energy Transition Roadmap (NETR) outlines strategies for adopting renewable energy, improving energy efficiency, and implementing green technologies in manufacturing.
The initiatives in Malaysia through NETR and SEDG provide businesses with the right guidance and structure needed to adopt corporate sustainability efforts that can benefit them in the long run, he said. “Especially as the country is gearing up to hit its carbon net-zero targets by 2050, these initiatives allow all businesses to ramp up their ESG efforts without hindering operational efficiency.”
He added that there is support for companies to adopt sustainable practices, enhancing their transparency, and ensuring they remain competitive globally.
“Grants to support corporates and SMEs to adopt digital tools and solutions to prepare their first sustainability report would help further lower the barriers to sustainability and accelerate the ESG compliance journey for Malaysian businesses,” said Soh.
