PRESS RELEASE
ESG ADOPTION THROUGH PUBLIC-PRIVATE PARTNERSHIPS GIVES MALAYSIAN MANUFACTURER COMPETITIVE EDGE IN GLOBAL MARKETS
By integrating advanced digital tools with industry best practices, the foundation for a resilient, sustainable, and prosperous ‘Smart Manufacturing’ sector in Malaysia will be laid.
SUBANG JAYA, February 19, 2025 – Public-private partnerships, involving Government agencies, industry leaders and technology providers, among others, are able to accelerate the adoption of cutting-edge digital solutions while strengthening Malaysia’s position as a competitive and forward-thinking hub for investment and manufacturing.
Minister of Digital Gobind Singh Deo said that by actively working with industries to address the intersection of Environmental, social and governance (ESG) principles, and the adoption of digital technology, the Government aims to create a robust, sustainable and globally competitive digital economy that benefits businesses and the rakyat.
“ESG adoption is not just necessary but critical for Malaysian manufacturers, and there are good reasons for this. Embracing ESG practices helps future-proof businesses. By adopting sustainable practices, companies can better manage risks, optimise resources and build resilience against environmental and social challenges,” said Gobind.
“The integration of ESG principles encourages innovation and operational efficiency. By leveraging artificial intelligence (AI) and advanced digital tools, manufacturers can automate ESG reporting, track emissions in real time and optimise energy usage.
“Also, many of Malaysia’s key trading partners have implemented stringent ESG regulations. Manufacturers that embrace ESG principles will find it easier to access and expand into these markets, as compliance with international sustainability standards becomes a key competitive differentiator. ESG-aligned operations open doors to global supply chains that prioritise responsible and transparent practices.”
Manufacturing remains a cornerstone of Malaysia's economy, contributing approximately 23% to the nation's Gross Domestic Product (GDP). “This makes it one of the largest contributors to the Malaysian economy, with key sub-sectors including chemicals, automotive and electrical and electronics with Selangor, Johor, Penang and Sarawak being key contributors to the manufacturing sector.”
Gobind said this at the launch of the ESG Public-Private Partnership - an initiative spearheaded by Glocomp Systems, Microsoft Malaysia and the Malaysia Digital Economy Corporation (MDEC) in collaboration with the Federation of Malaysian Manufacturers (FMM) and the Malaysia Investment Development Authority (MIDA) at Sunway Resort Hotel this morning.
He also highlighted that one of Malaysia’s growth engines is the digital economy which is projected to contribute 25.5% to the nation’s GDP by the end of 2025. This is a testament to the growing importance of technology across all sectors, including manufacturing.
“When combined, technology and manufacturing form a powerful combination that elevates Malaysia’s competitiveness on the global stage. By integrating advanced digital tools with industry best practices, we are laying the foundation for a resilient, sustainable and prosperous ‘Smart Manufacturing’ sector that will drive Malaysia's growth well into the future.
“Taking both these sectors into account, the ESG factor becomes even more critical. ESG principles ensure that, as Smart Manufacturing advances even further, they do so with a balanced consideration of environmental impact, social responsibility and governance standards,” he added.
Speaking about public-private partnerships, Gobind said Microsoft Cloud for Sustainability Pilot serves as an enabler that would provide manufacturers – particularly members of FMM – with access to AI-driven analytics and real-time emissions tracking capabilities. This technology will both simplify ESG reporting and support data-driven decision-making for more effective sustainability strategies.
“In addition, the MIDA Domestic Investment Accelerator Fund launched last year serves to help reduce subscription costs for FMM members, making the pilot more accessible to manufacturers. This is another Malaysia MADANI initiative to help manufacturers modernise and stay competitive in an evolving global market,” he added.
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Issued by:
Office of the Minister
Ministry of Digital, Malaysia
