Breaking new ground: Sustainability in Malaysia

Expertise is central to the nation’s sustainability agenda. Malaysia’s industrial hub, Kuala Lumpur, has rolled out a smart city plan, which incorporates accelerating digital transformation by specializing in training and selling cloud applied sciences and synthetic intelligence (AI), amongst different areas. The Malaysian authorities has additionally emphasised expertise funding in its Budget 2022, with as much as MYR 100 million (US$ 23.7 million) in grants for areas equivalent to good automation and no less than MYR 30 billion (US$ 7 billion) for government-linked corporations investing in renewable vitality, supply-chain modernization, and 5G infrastructure.

Lately, Kuala Lumpur has additionally seen an growing variety of “greening” alternatives. For example, the town governance has employed a wise “City Brain”, which makes use of Alibaba Cloud’s computing programs to optimize providers like visitors management and even calculate the perfect routes for emergency providers. Worldwide expertise and mobility corporations equivalent to Microsoft and Korea-based Socar, that are eyeing inexperienced innovation and enterprise alternatives, have additionally invested and expanded their operations in Kuala Lumpur. On the identical time, conventional industries, specifically vitality and electronics, have been attempting to reinvent themselves.

In gentle of this shifting surroundings, this report explores what international corporations in Higher Kuala Lumpur are doing to attain their ESG targets, the alternatives the situation has to supply, and the way their native experiences might be utilized globally.

The important thing findings of this report are:

Malaysia is dedicated to turning into a regional decarbonization chief. The nation’s present grasp plan that charts its financial improvement by 2025 consists of quite a few applications aimed toward advancing sustainability by growing renewable energy-generation capabilities, growing inexperienced mobility options, and constructing sustainable and resilient cities. This sustainability dedication comes even because the nation continues to derive financial progress from historically carbon-intensive industries, equivalent to oil and gasoline improvement, vitality manufacturing, and agriculture. But, whereas some nations’ reliance on fossil fuels and different conventional industries weighs on their decarbonization commitments, Malaysia makes use of its deep, globally built-in trade clusters and provide chains to develop new, greener enterprise processes and fewer carbon-intensive manufacturing and logistics processes.

Higher Kuala Lumpur has seen an growing variety of “greening” alternatives for a number of the nation’s conventional innovation clusters, specifically vitality, electronics manufacturing, IT outsourcing, and different digital financial system sectors. Asia’s fast-growing digital economies have additionally created distinctive synergies for digitally “native” companies that want to use Kuala Lumpur as a hub from which they will faucet inexperienced enterprise alternatives within the area. These embody Korean inexperienced mobility agency Socar, which is increasing its “people-to-people” ridesharing mannequin throughout Southeast Asia from its Kuala Lumpur base. And Schlumberger, which has one in all seven international “Innovation Factori” facilities in Kuala Lumpur. The middle works to speed up the adoption of its AI for reinforcing vitality transition efforts in East Asia.

Malaysia’s maturing sustainability stance is making a tradition of monitoring, measurement and, in the end, accountability. This may function a framework for ESG-minded companies to chart their very own journeys. Such efforts are removed from beauty, they’re important to a market’s financial prospects. International, sustainability-oriented companies can each obtain their ESG targets by their Higher Kuala Lumpur operations and use their Malaysian expertise as a template for sustainable innovation of their international operations. Malaysia’s position as a world sustainability hub is crucial, as its financial system uniquely straddles many trade sectors, together with excessive expertise and vitality manufacturing, that are pivotal in shifting the world’s improvement towards a low-carbon future. Collaboration and communication are important to those efforts.

Download the full report.

This content material was produced by Insights, the customized content material arm of MIT Expertise Evaluation. It was not written by MIT Expertise Evaluation’s editorial workers.

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