‘ESG High On MITI’s Priorities For A More Sustainable Future For All Malaysians,’ Says Tengku Zafrul

The Government will continue to provide incentives for local assembly or manufacturing of Energy Efficient Vehicles, or EEV, including EVs, as well as component makers or OEMs, in order to stimulate investment and accelerate the development of the EV ecosystem.

Clearly, Budget 2022 includes incentives package to encourage EV adoption, including tax exemptions for EV importation and assembly, road tax exemptions, and tax rebates for EV charger installation.

This move is seen as critical in increasing demand for EVs as well as making EVs more inclusive and affordable for all, as it encourages investment not only in vehicle and component manufacturing, but also in the EV support infrastructure.

Speaking at the launching of the Byd Brand and Model Byd Atto 3 today, the Minister of International Trade and Industry Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz said this strategic alliance bodes well for the development of the EV ecosystem through new dealerships and aftermarket services for this relatively new domestic segment with reference to Sime Darby’s initiative to be able to import BYD’s impressive range of electric vehicles, or EV, beginning with the BYD Atto 3, into the Malaysian market.

“This strategic alliance bodes well for the development of the EV ecosystem through new dealerships and aftermarket services for this relatively new domestic segment,” he said.

MITI hopes that such collaboration will spur development beyond the distribution of EVs, and into the manufacturing of critical components such as EV batteries, for which BYD is well-known.

“The Government strongly supports the Green agenda to ensure a better and more sustainable future for all Malaysians. The National Automotive Policy, or NAP 2020 and the Low Carbon Mobility Blueprint outline the Government’s direction in the development of the nation’s EV industry.

We are currently committed to driving efforts to attract EV investments and meeting the national target of 15% total industry volume, or TIV for EV and hybrid by 2030, and 38% of TIV by 2040. In terms of charging infrastructure, the goal is to have 10,000 public charging stations by 2025, Zafrul said in hi address at the launch event today (Dec 8)

He explained to achieve these goals, the National EV Taskforce, or NEVT, led by MITI and comprising relevant Government ministries and agencies, was formed to carry out the implementation of EV development strategies.

To ensure that these strategies remain relevant, NEVT reviews them and implement new ones to promote a healthy EV industry in Malaysia. The NEVT platform coordinates and implements the Government’s initiatives from various policy documents and strategies related to EV in a more holistic manner.

The NEVT discussions are dynamic, with continuous engagement with all relevant stakeholders. BYD and Sime Darby are also welcomed to provide inputs to the Government in this regard.

The primary objective of NEVT is to address the barriers to greater EV market adoption, improve EV charging infrastructure, and encourage investments in the ecosystem. Notable on-going initiatives include:

a. loosening AP procedures to encourage EV importation;

b. developing standards and improving procedures to facilitate the establishment of EV charging infrastructure; and

c. attracting investors to the EV ecosystem, which includes EVassembly, critical components, and after market services.

“We hope to see these initiatives implemented as soon as next year,” he said.

The need to adapt to an ever-changing world means that sustainability or ESG is no longer an option, but rather a requirement for businesses to remain relevant. In line with global recognition and emphasis on green growth, the Government is committed to driving sustainability and inclusivity as outlined in the Twelfth Malaysia Plan, with the goal of achieving net zero carbon emissions by 2050. As such, “I’d like to encourage everyone here to keep up their concerted efforts to invest in and expand ESG opportunities in the country, with businesses, Government, and civil society all working together to achieve this goal.

Under the National Investment Policy, MITI identified ESG principles as a key theme with the goal of minimising downside risk from non-compliance with ESG practices while maximizing the capture of ESG-related opportunities. MITI has begun developing the National Framework on Industry Environmental, Social, and Governance, or iESG, for the manufacturing sector as the next step in assisting Malaysian companies, particularly SMEs, to comply with ESG principles.

The Framework’s main objective is to build and strengthen a system to encourage the expansion of ESG practices in the manufacturing sector.

The iESG Framework will be built around four (4) pillars:

a. standards;

b. financing;

c. capacity building; and

d. market mechanism such as carbon trading.

Various stakeholders will be involved to ensure that the Framework’s inputs are inclusive.

Source: BUSINESSTODAY

Let us facilitate your growth in the region.

CONTACT US

Reach out to our team

SUBSCRIBE

Receive updates from us

Ooops!
Generic Popup