ESG gains prominence in light of NIMP 2030

The New Industrial Manufacturing Plan (NIMP) 2030, revealed on September 1, lays out six overarching objectives, with a central focus on elevating environmental, social, and governance (ESG) practices within Malaysia’s manufacturing sector. This strategic move aims to fortify the nation’s economic resilience against ESG-related challenges, enhance its allure as an investment haven, and ensure ongoing market accessibility for Malaysian exporters in ESG-sensitive regions.

Additionally, by propelling the adoption of sustainable manufacturing techniques and advancing towards a net-zero emissions future, Malaysia envisions positioning itself as a trailblazer in sustainable solutions and cultivating emerging industry sectors. Within the NIMP 2030 framework, a comprehensive blueprint has been sketched, comprising ten strategic action plans and three mission-driven projects to realize this objective.

These action plans encompass expediting the transition towards sustainability, particularly in sectors grappling with emissions reduction difficulties, such as cement, metal, chemical, and petroleum industries. Collaborative efforts with industry stakeholders will underpin the formulation of decarbonization strategies, alongside an exploration of sector-specific emissions levies for those industries where emissions reduction poses a challenge.

A dedicated carbon policy will be introduced, incorporating mandates and guidelines for a standardized carbon accounting model, simplifying carbon emissions reporting for industry players. Moreover, this policy will pave the way for instituting a carbon pricing mechanism, including potential measures like carbon taxes.

Simultaneously, the NIMP 2030 anticipates the roll-out of an Integrated ESG (iESG) framework, tailored to aid manufacturing firms in embracing ESG best practices. This framework will align with established global reporting standards, supported by resources like the Simplified ESG Disclosure Guide for Small and Medium-sized Enterprises (SMEs) offered by the Securities Commission Malaysia and Capital Markets Malaysia.

YAB Perdana Menteri, Dato’ Seri Anwar Ibrahim meluncurkan New Industrial Master Plan 2030 di MITI, Kuala Lumpur, 1 September, 2023. – SADIQ ASYRAF/Pejabat Perdana Menteri NO SALES; NO ARCHIVE; RESTRICTED TO EDITORIAL USE ONLY. NOTE TO EDITORS: This photos may only be used for editorial reporting purposes for the contemporaneous illustration of events, things or the people in the image or facts mentioned in the caption. Reuse of the pictures may require further permission. MANDATORY CREDIT – SADIQ ASYRAF/

To incentivize energy efficiency and the integration of renewable energy sources, various programs will be introduced. The global surge in ESG awareness and practices is regarded as a growth opportunity, a perspective that NIMP 2030 actively embraces.

The document spotlights three specific action plans: the development of the electric vehicle (EV) ecosystem, initiatives related to carbon capture, utilization, and storage (CCUS), and the establishment of a circular economy framework within the industry. These initiatives encompass projects such as the domestic production of EVs and the deployment of large-scale CCUS solutions.

The circular economy framework seeks to pivot away from the conventional “take-make-dispose” model, characterized by resource depletion and waste generation. Instead, it champions a circular approach where waste is repurposed and recycled, ultimately curbing the demand for raw materials.

Lastly, as part of the transition to greener infrastructure, NIMP 2030 envisions the transformation of industrial estates into eco-industrial parks. These environmentally conscious parks aim to curtail greenhouse gas emissions, minimize resource consumption, and firmly embed the principles of the circular economy.

Picture from PM Anwar Ibrahim social media

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