Malaysia's ESG manufacturing plan to fulfil growing demand

As consumers call for positive change, sustainable manufacturing in Malaysia is taking off with the new i-ESG Framework that will build awareness

Malaysia’s Ministry of Investment, Trade & Industry has set in motion a National Industry ESG structure, the i-ESG Framework. This is designed to support Malaysia’s manufacturing industry as it integrates ESG principles.


Sustainable manufacturing practices with ESG target outcomes

The i-ESG Framework is geared towards micro, small, and medium enterprises (MSMEs).

Its goal is to support transition towards sustainable practices among manufacturing companies in four pillars:

  • Standards
  • Financing
  • Capacity building
  • Market mechanism

Under these pillars, the i-ESG Framework will build awareness, provide training and deliver financial support for MSMEs on their ESG journey.

Tengku Zafrul Aziz, Minister of Investment, Trade & Industry, reminded manufacturers that there was no Planet B. 

"The phased, progressive approach represents the 'Just Transition' that Malaysian companies and MSMEs need to fulfil the growing demand for sustainable products, and the requirements for ESG reporting in export markets,” he said. “Through the i-ESG Framework, we also have an opportunity to get our ESG target outcomes right via our manufacturing sector.

"For the sake of our children and Planet Earth, let us get this right the first time, as we may not have the luxury of considering Plan B, because there is no Planet B."

Manufacturing in Malaysia from 5G to batteries 

Malaysia is fast becoming a manufacturing powerhouse, especially in electronics. 

Samsung SDI, which builds batteries and other electronics, recently announced it would open its second battery production facility in Malaysia. The electronics manufacturer will invest US$1.3bn to build The Samsung SDI Energy Malaysia (SDIEM) factory, due to open in 2025, in Seremban. Its main production will be for PRiMX 21700 cylindrical batteries.

“Today will serve as a starting point for realising our vision to become a Global Top Tier Company by 2030,” said Yoonho Choi, Samsung SDI president and CEO. “With successful completion and early stabilisation of Plant II, we will make SDIEM the centre of the global battery industry.”

Ericsson has been working in Malaysia since 1965. In August, its 5G network was rolled out across the country, for faster data transfer rates. 

“The production of Ericsson’s global 5G radio equipment in Malaysia is our additional socio economic contribution to Malaysia and marks the latest in a broad range of initiatives to bring our global experiences, expertise and insights to Malaysia in support of the government’s ambition to be a digital leader,” said David Hägerbro, Head of Ericsson Malaysia, Sri Lanka and Bangladesh. “Malaysia is an important market for Ericsson and domestic manufacturing in Malaysia will contribute to the local economy through employment and the transfer of technical knowledge to the local workforce in areas such as manufacturing, product engineering and equipment testing.”



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