06 • Local News
06 • Local News
@ green | May-June . 2024
Committed to sustainable palm oil
Malaysia ’ s palm oil industry is a prime example of ESG adaptation
DEVELOPING countries face unique challenges in implementing Environmental , Social , and Governance ( ESG ) compliance .
Investment , Trade , and Industry Minister Tengku Zafrul Abdul Aziz recently highlighted the proactive efforts of the Malaysian palm oil industry , which continually adapts under international pressure to be environmentally sustainable .
Malaysia ’ s palm oil industry is not just committed to ESG adaptation , it is a pioneer in this field . It diligently follows the Malaysian Sustainable Palm Oil ( MSPO ) certification and Roundtable on Sustainable Palm Oil ( RSPO ) guidelines , setting a high standard for the global palm oil industry .
These standards enforce stringent “ No Deforestation , No Peat , No Exploitation ” ( NDPE ) policies and zero-burning protocols , reflecting the industry ’ s commitment to sustainable practices .
Despite the regulatory hurdles , the Malaysian palm oil sector remains steadfast and proactive . It continuously improves labour standards , ensures fair employment practices , and enhances
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sustainability initiatives , demonstrating its unwavering commitment to sustainability .
The oil palm tree ’ s efficient land use exemplifies sustainable agriculture . It produces the highest yield per hectare among oil crops .
Despite occupying only 5.5 per cent of cultivated land for oils and fats globally , oil palm contributes up to 32 per cent of total output , showcasing its unparalleled productivity .
Malaysia has ratified the International Labour Organisation ’ s Forced Labour Convention on labour standards . This is a significant step that demonstrates Malaysia ’ s commitment to upholding workers ’ rights and eliminating labour abuses . The comprehensive national policies implemented to support this commitment are enforced by the Malaysian courts , ensuring their effectiveness .
Significant advancements in ESG compliance are not just a possibility , they are a reality . Large plantation companies are maintaining high sustainability ratings and making substantial progress in reducing greenhouse gas emissions , paving the way for a more sustainable
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Mohamad Ezri Abdul Wahab
future in Malaysia .
This demonstrates the industry ’ s resolve to align with global sustainability benchmarks and address regulatory challenges , especially those from the EU .
The Malaysian Bar supports the national policy of improving sustainability and reducing emissions .
President Mohamad Ezri Abdul Wahab advocated for formal emissionsrelated national laws , which would create a clear , enforceable framework for ESG compliance .
Such legislation could improve corporate and industry practices by setting minimum standards , requiring regular reporting , mandating transparency and accountability , and enforcing compliance .
This is particularly crucial for industries like palm oil , which face intense
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scrutiny and ESG demands from international markets .
Countries with stringent climate laws often see improved ESG ratings , as these laws drive systemic changes contributing to sustainable development goals .
By aligning more closely with global standards , Malaysia could enhance its attractiveness to foreign investors , prioritising ESG compliance and positioning its industries as leaders in sustainability .
The Malaysian Bar plays a pivotal role in this green narrative . It enhances its members ’ legal expertise in ESG practices and actively advocates for sustainable policies . Through strategic capacity-building and education , the Bar equips a new generation of lawyers to advocate and implement practices that balance economic growth and environmental protection .
As Malaysia advances its ESG agenda , the synergy between legal frameworks and sustainable practices creates a beacon of hope .
This commitment demonstrates that the right to life and the right to a sustainable environment can go hand in hand , setting a global standard for sustainability and social responsibility .
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Pahang ’ s first wind farm boosts renewable energy
IN A significant move towards renewable energy , Pahang has partnered with a United Arab Emirates-based company to establish Malaysia ’ s first wind farm .
This pioneering project , announced by State Investment , Industries , Science , Technology , and Innovation Committee Chairman Datuk Mohamad Nizar Najib , marks a significant step forward in the State ’ s green energy initiatives .
The Pahang Wind Farm project , estimated to cost RM800 million , aims to develop two-gigawatt ( GW ) wind farms across four districts : Pekan , Rompin , Kuantan , and Lipis .
This ambitious project will set a precedent as Malaysia ’ s first wind energy plant , enhancing the State ’ s renewable energy portfolio and reducing reliance on traditional energy sources .
The State is also advancing in solar energy , with the Pahang State Development Corporation taking the lead . Five solar energy projects are underway , each with an investment of RM200 million . This demonstrates the government ’ s commitment to renewable energy and its support for sustainable development in the State .
Invest Pahang is exploring further proposals to bolster the State ’ s green infrastructure , including establishing floating solar farms and electric vehicle charging stations .
To attract more investments , Pahang will host the inaugural Malaysia East Coast Convention later this year . This event aims to highlight Pahang as a prime investment destination within Malaysia .
Additionally , an investment convention is planned for the third quarter in Singapore , targeting Southeast Asian investors and showcasing the lucrative opportunities in Pahang .
On the tourism front , Pahang continues to enhance its attractions . The State Unity , Tourism , and Culture Committee , led by Leong Yu Man , has introduced new exciting features to boost ecotourism . Pulau Tioman now boasts the highest via ferrata climbing route in Peninsular Malaysia . The Gunung Nenek Semukut via ferrata , standing 610 meters above sea level , offers climbers stunning views of the island and surrounding sea .
Additionally , nature enthusiasts can explore the 660-meter-long
Taman Negara Sungai Relau Tree Top Walk in Lipis . This canopy walkway gives visitors a unique perspective of the forest , adding to the region ’ s natural allure .
Masdar to work closely with Sarawak Energy
ABU Dhabi Future Energy Company PJSC ( Masdar ) is poised to forge a robust alliance with Sarawak Energy Bhd ( Sarawak Energy ) in renewable energy .
This partnership holds the promise of not just sustainable energy solutions but also a brighter , greener future for Malaysia and other Asian countries .
Masdar Chief Executive Officer ( CEO ) Mohamed Jameel Al Ramahi stated this recently during a courtesy call to the Premier of Sarawak , Datuk Patinggi Abang Johari Openg .
The meeting was arranged to follow up on the signing of a memorandum of understanding ( MoU ) between Sarawak Energy and Masdar , which took place during the 28th Conference of Parties ( COP28 ) to the United Nations Framework Convention on Climate Change ( UNFCC ) in Dubai last year .
“ The MoU signifies our joint commitment to invest in and explore opportunities for developing renewable energy projects , with a particular focus on floating solar , a promising avenue for sustainable energy ,” said Jameel .
“ With unwavering commitment , Masdar eagerly anticipates a close collaboration with our esteemed local partner , Sarawak Energy . This endeavour is under the steadfast guidance and support of the Sarawak Premier and the government of Sarawak , ensuring
Abang Johari , flanked by Julaihi ( third right ) and Mohamed Jameel , joins ( from right ) Janin , Sharbini and others .
PHOTO BY UKAS
a solid foundation for our shared vision of sustainable energy .
“ Our shared ambition is nothing short of awe-inspiring . We aim to develop gigawatts of energy capacity in Malaysia and other Asian countries , setting a new benchmark for the renewable energy industry .”
The courtesy call at the Premier ’ s Office in Wisma Bapa Malaysia here was also attended by Minister for Utility and Telecommunication Sarawak Dato Sri Julaihi Narawi , Sarawak Energy Group CEO Datuk Sharbini Suhaili , and Petroleum Sarawak Bhd ( Petros ) chief executive Dato Janin Girie .
Jameel reiterated Masdar ’ s unwavering commitment to the partnership , emphasising that as one of the largest renewable energy companies , they are dedicated to investing in and developing largescale renewable energy projects in collaboration with the government and their local partners .