by SHAFIQQUL ALIFF / Pic by TMR
THE Malaysian Investment Development Authority (Mida) is expecting an increase in investment in environmental, social and governance (ESG) this year.
CEO Datuk Arham Abdul Rahman (picture) said the investment that has been set for 2022 is also expected to achieve, particularly not just in the foreign direct investment (FDI) and domestic direct investment but in overall investment.
He said that ESG is a global agenda and all industries need to comply and ensure that they also apply this element in business and Mida remains focused on attracting high-quality investments from foreign and domestic companies into Malaysia through various investment strategies and policy initiatives.
“We want to implement all facilitation policies and support facilities to ensure Malaysia is ready not only to facilitate existing companies but also to host new green investments in the next few years as the country currently pursues the global goal of addressing climate challenges and building a more sustainable future. I am expecting more investment to come in the country, in line with the ESG agenda,” he said after the Malaysian ESG Agenda Forum today.
Arham added that Mida expects the total investment this year to remain competitive based on the high demand and global supply chain disruption due to the pandemic.
“The government, through Mida, successfully approved 212 green technology projects and services activities amounting to RM433 million from January to March 2022 while from 2001 to March 2022, Mida approved investments related to green projects and green services amounting to RM35.5 billion, with 3,186 projects in total,” he said.
Arham further said that ESG investment could encourage the private sector to tackle ESG challenges, as well as boost corporate profits and economic growth as adopting the ESG measures is now more essential than ever for businesses and consumers to thrive.
“Progressive sustainability agenda can give countries an advantage in attracting FDI and international companies.
“Going forward, we will have a situation whereby companies will decide where to locate their business based on the access to industry ecosystems and supply chains that are adopting ESG measures,” Arham added.