Letters

Environment, labour advancement in futuristic Malaysia

LETTERS: The Association for Community and Dialogue (ACID) welcomes the statement by Prime Minister Tan Sri Muhyiddin Yassin, that the transformation of cities into low-carbon cities will help develop the local green economy, create jobs and attract domestic and international investment.

In his speech at the launch of the virtual 2021 Malaysia low-carbon cities conference, Muhyiddin said among the sectors that will benefit from the effort are the sustainable energy sector, low-carbon mobility, waste management and recycling and water efficiency.

The low-carbon masterplan was launched to provide complete guidelines for state governments and local authorities in developing low-carbon cities in their areas.

ACID is of the view that low-carbon cities would also complement the environmental, social, and governance (ESG) criteria which are a set of standards for a company's operations that socially conscious investors use to screen potential investments.

Environmental criteria consider how a company performs as a steward of nature. Social criteria examines how it manages relationships with employees, suppliers, customers, and the communities where it operates.

As ESG compliance becomes more mainstream, even acting as a benchmark for investors today, it is vital for corporate entities in Malaysia especially the small and medium industries to prepare for a transition to a sustainable Malaysia as it wiggles out of the Covid -19 pandemic.

According to a report by the financial times, demand among investors for ESG related products continue to rise, with US$54 billion (RM229 billion) pouring into ESG bond funds in the first five months of 2021, compared with US$68 billion (RM228 billion) for the entire 2020.

These clearly reveal there is a futuristic post-pandemic international vision of sustainable development which would be the criteria for investment.

It is obvious there are essential areas that Malaysia would need to focus on, which is about preserving the environment and building an economy around it, by working for a transition towards a circular economy, and to adhere to fundamental ILO social conventions on labour rights.

This would require a whole society and decentralized approach with visionary leaders of cities, who would help in Malaysia's transition towards a green economy, and a human capital development that adheres to the social criteria of respecting fundamental labour conventions.

RONALD BENJAMIN

Secretary, Association for Community and Dialogue


The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times

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