@ green | November-December . 2024

Budget 2025 has set the carbon tax for Malaysia to commence in 2026

In 2022 , micro , small , and medium enterprises ( MSMEs ) accounted for 97.4 per cent ( 1,173,601 firms ) of the total establishments in Malaysia , contributed 38.4 per cent of Malaysian GDP with 7.59 million workers employed , and RM144.5 billion of goods and services exported ( DOSM , 2023 ).

MSMEs are primarily in the supply chain that spawns scope three carbon emissions required to be reported by companies disclosing their sustainability statement applying any of the global ESG standards such as ISSB , GRI , SASB , TCFD , etc .

Therefore , the adoption of ESG standards by MSMEs , though currently voluntary , is effectively compulsory so long as they service public-listed companies , banks , government-linked companies , multinational corporations , large unlisted companies , or export to the European markets .

The recent Budget 2025 has set the carbon tax for Malaysia to commence in 2026 to retain the tax payable for CBAM within the country to undertake domestic R & D and sustainable investment to achieve net zero by 2050 .

Equally important to note is the possibility that MSMEs may no longer be insured ( due to higher risk exposures without ESG ) or entitled to privileged interest rate bank financing . The worst case can be the inability to access funding for business expansion when ESG adoption emerges as a lending compulsion .

As a national ESG NGO registered with Malaysian Registrar of Societies , MAPAN took the initiative to offer a two-day HRDF claimable ESG course . MAPAN ’ s 120 expert members ( 30 per cent female ) of 13 nationalities ( graduates of 26 local and foreign universities ), with 50 per cent each coming from industry and academia , will conduct the workshop structured with the following features :

1 . Architecture of the two-day workshop The workshop is crafted by Founding Member of MAPAN ( FmM ) Dr Owen Chan on a workshop format emphasising group discussion and case study with a workshop poster subsequently designed by FmM Dr Khabir Rahmat . FmM Publisher Kay Mathy tastefully produces the workshop brochure to connect to the sustainability fraternity . Our outstation and overseas FmMs may contribute their insights through video clips to be screened in class or online

BY BEN ONG

Founder & Chairman Malaysian Association of Public Advocacy for Nature ( MAPAN )

The recent Budget 2025 has set the carbon tax for Malaysia to commence in 2026 to retain the tax payable for CBAM within the country to undertake domestic R & D and sustainable investment to achieve net zero by 2050 .”

dial-in during the two-day workshop .

2 . Key focuses of the workshop The workshop focuses on the physical measurable decarbonisation of Scope 3 supply chain carbon emissions because although ESG acceptance is top-down , day-to-day carbon reduction is bottom-up since more staff are on the ground working than the executives in management positions . The stress is on minimising carbon footprints to reduce operating costs , which is expected to result in productivity increments to enhance profitability and the profit centre mentality of ESG adoption . The learning progresses from macro to micro , targeting theory to practice .

3 . Incentives for carbon reduction The workshop will cover Bank Negara Malaysia ’ s Low Carbon Transition facility ( LCTF ) in supporting low-interest green finance ( through commercial banks ) for SMEs to transform to low carbon operations , carbon offset of BCX ( Bursa Carbon Exchange ) carbon credit as a decarbonisation strategy for unabatable sectors . Matching grants from SME Corp ( BAP 3.0 for ESG ) and MIDA ’ s DIAF-ESG also form part of the workshop coverage .

4 . ESG course materials The workshop will explain materiality in the context of reconciliation with annual audited accounts using ESG Quick Guide for MSMEs ( by SME Corp ) as the primary course reference together with Simplified ESG Disclosure Guide ( SEDG ) by Capital Markets Malaysia and A-Z MAPAN ESG Kickoff e-Book supplementing and facilitating further class discussions .

5 . ESG workshop takeaways The workshop will highlight the provisions in NSRF ( National Sustainability Reporting Framework ) regarding global ESG standards , internal assurance , and impending audit requirements of the Companies Act 2016 . The use of MAPAN 30-point ESG elements and MAPAN 30-point ESG Sustainability Scanning Matrix will also be guided by the team of coaches .

6 . ESG lifelong learning On full completion of the two-day course , participants of the workshop will be eligible to apply to be an Alumni member of MAPAN ( AmM ), qualifying themselves for MAPAN ’ s Annual Decarbonisation Award ( MADA ) and personally accessible to all MAPAN ESG resources , including all its socmed publications contained in the QR code of https :// linktr . ee / esgmapan . – @ green