ESG

Jemaluang Dairy Valley (JDV), a joint initiative between the Johor government and the East Coast Economic Region Development Council, has obtained RM95.8 million in financing from MBSB Bank Bhd to expand its milk production capacity to 14 million litres per year by 2027. The funding will be used to acquire high-tech equipment, additional A2 Jersey Friesian cattle from Australia, and a state-of-the-art milk processing facility capable of producing 14 million litres annually. Once operational, JDV is expected to supply roughly 16% of Malaysia’s fresh milk, reducing the country’s reliance on imports and enhancing national food security. From left: Arizan Arifin (ECERDC), Abdul Hakim Abd Manap (Mersing District Office), Raven Kumar Krishnasamy (Johor Unity, Heritage & Culture), Datuk Zahari Sarip (Johor Agriculture & Rural Development), Johor Menteri Besar Datuk Onn Hafiz Ghazi, Datuk Syed Mohamed Syed Ibrahim (JCorp), Dr Lim Ban Keong (Rhone Ma Holdings), and Qasem Alhasan (JDV CEO). The new processing plant will produce fresh pasteurised milk as well as flavoured variants such as strawberry, chocolate, and kurma. The facility, part of JDV’s integrated dairy ecosystem, is planned to begin operations in early 2027 with the potential to scale up to 30 million litres. JDV is owned by Jemaluang Dairy Valley Sdn Bhd (JDVSB), a joint venture between Kulim (Malaysia) Bhd, a subsidiary of Johor Corporation (JCorp), and A2 Fresh Holdings Sdn Bhd. Kulim holds a 65% controlling stake — including a 30% interest held in trust for the Johor state government — while A2 Fresh Holdings, part of Rhone Ma Holdings Bhd, holds 35%. The farm will also serve as an agro-tourism destination. The first phase, opening mid-2027, will welcome school visits with activities such as ATV rides, camping, and a mini zoo. The second phase will open to the general public in 2028. MBSB group CEO Rafe Haneef highlighted that food security is a national priority requiring substantial investment. He noted that the RM95.8 million facility supports Johor’s first fully integrated, tech-enabled, and ESG-compliant dairy ecosystem. JDVSB CEO Qasem Alhasan said the project is designed as a comprehensive dairy ecosystem, combining modern farming technology, sustainable practices, and local talent development. The initiative aims to deliver high-quality, locally produced milk at scale while contributing to Malaysia’s long-term food security goals.

Tropicana Corporation Bhd has formed a strategic partnership with Signature Distribution Sdn Bhd and EDCA Sdn Bhd (EDCA Energy) to promote sustainable living and improve the home ownership experience at Avisa Residences. Ixora Ang, Tropicana’s managing director of marketing, sales, and business development, said the tie-up with Signature offers Avisa homeowners seven curated home-enhancement packages tailored to different lifestyle needs. These packages can be paid progressively over six, 12, or 18 months before renovation work begins, starting from as low as RM20,800. The instalment-based prepayment plan makes renovation costs more manageable, easing financial commitments for new homeowners. Through the partnership with EDCA Energy, homeowners at Avisa Residences can also access competitively priced solar panel systems under the Solar Accelerated Transition Action Programme (Solar ATAP), limited to the first 50 units. This initiative encourages energy-efficient, future-ready living at Tropicana Alam. Ang said the collaboration demonstrates Tropicana’s commitment to sustainable practices, green building excellence, and a seamless, enhanced home ownership experience. Signature group CEO Lau Kock Sang added that the partnership allows homeowners to begin financial and design planning early through structured prepayments, making the moving process more structured, transparent, and stress-free.

Yayasan Peneraju has introduced a membership fee rebate to encourage its talents and alumni to register as Chartered Accountants with the Malaysian Institute of Accountants (MIA). Launched in conjunction with its 14th anniversary, the initiative offers eligible alumni a rebate of up to RM850 for the 2026 MIA membership year. The rebate will be deducted from their outstanding financing balance with Yayasan Peneraju. Chief executive officer Ibrahim Sani said the move is aimed at helping Bumiputera accounting talents obtain the Chartered Accountant (Malaysia), or CA (Malaysia), designation, while easing financial burdens at a key stage in their careers. The initiative also promotes responsible repayment, enabling the foundation to recycle funds to support more beneficiaries. To qualify, applicants must meet MIA’s requirements for the CA (Malaysia) designation and fulfil Yayasan Peneraju’s repayment conditions, either by repaying at least 30% of their financing or making a minimum payment of RM2,000. The rebate is limited to one application per person for 2026. Since its establishment, Yayasan Peneraju has supported over 90,000 Bumiputera individuals across high-impact sectors. In 2025, it processed more than 19,000 applications, with around 2,000 in accounting — the highest intake for the field to date. For 2026, the agency aims to train 2,000 additional professionally qualified accountants as part of its goal to produce 5,000 such professionals annually by 2030.

Allianz Malaysia Bhd has been named to the 2025 ESG Select List by the United Nations Global Compact Network Malaysia and Brunei (UNGCMYB), recognising its progress in integrating environmental, social, and governance (ESG) practices across its operations. The insurer received a 3-Star rating, with accolades in areas such as ESG Breakthrough Innovation, Purposeful Partnership, and ESG Target Setting, highlighting its structured, long-term approach to sustainability. CEO Sean Wang said the recognition reflects Allianz Malaysia’s commitment to responsible business practices and creating lasting value, while also motivating the company to continue advancing sustainability efforts. Key ESG initiatives include climate action, inclusive insurance solutions, responsible operations, employee well-being, and community support. UNGCMYB’s ESG Select List aims to highlight organisations making measurable progress in sustainability, promoting transparency and continuous improvement.

SIRIM Bhd has launched its ESG Readiness Roadshow, Personnel Certification Programme, and Sustainability Report Advisory Services under the MADANI Sustainability Roadmap to boost Environmental, Social, and Governance (ESG) adoption in Malaysian industries. The initiative, aligned with the New Industrial Master Plan (NIMP) 2030 and the government’s MADANI agenda, aims to promote sustainable industrial development and improve the competitiveness of Mid-Tier Companies (MTCs) and SMEs, especially in manufacturing and international supply chains. SIRIM said the programme provides technical guidance, training, and certification to help companies integrate ESG practices into their core operations. “This initiative is designed to transform ESG from a compliance requirement into a driver of sustainable, efficient, and profitable growth, helping Malaysian companies achieve global competitiveness,” the statement said. The programme also addresses common challenges, such as limited in-house ESG expertise and high consultancy costs. Companies will receive practical, cost-effective support, including guidance on sustainability reports based on Global Reporting Initiative (GRI) standards, which can enhance investor confidence and strengthen supply chain partnerships. Eligible organisations can also apply for the ESG-NIMP Grant Programme, which offers 80% government funding with a 20% company co-contribution. The grant targets SMEs and MTCs, including exporters and high-emission sector companies, to implement ESG practices. Participants will gain specialised training, certification for ESG personnel, and advisory support to achieve formal “ESG-Ready” status. The launch was officiated by Dr Mohd Bakri Jali, Covering CEO of SIRIM Academy, representing SIRIM Group CEO Nik Sazali Nik Hussin. Wholly owned by the Minister of Finance Incorporated and operating under MITI, SIRIM has been supporting Malaysia’s industrial development for over 50 years, serving as a trusted partner in quality, innovation, and technology advancement.

The Malaysian Association for the Blind (MAB) has submitted a 34-point memorandum to the government, outlining proposals aimed at strengthening support for the visually impaired community. The recommendations span key areas such as access to information, education, employment opportunities and the use of technology to improve inclusivity. The proposals were presented during a dialogue session with Communications Minister Datuk Fahmi Fadzil on Tuesday. In a Facebook post, Fahmi described the session as open and constructive, noting that participants shared valuable perspectives and real-life experiences that reflected MAB’s strong commitment to advancing accessibility and inclusiveness for the visually impaired in Malaysia. He said one of the key issues raised was the need for media organisations to deliver information in a more inclusive manner, particularly by enhancing and standardising audio elements to better serve visually impaired audiences. The discussion also highlighted the untapped potential of the visually impaired community in the creative industry, with calls for targeted policies, specialised training and fair access to opportunities to support their participation. “This engagement serves as an important reminder that meaningful national progress must be inclusive and ensure no one is left behind,” Fahmi said.

Global outstanding environmental, social, and governance (ESG) sukuk is projected to exceed US$70 billion by the end of 2026, driven largely by strong momentum in emerging markets, according to a new report by Fitch Ratings. Fitch noted that ESG sukuk accounted for roughly 40% of emerging market ESG debt issuance in 2025, up sharply from 18% in 2024, highlighting the increasing role of Islamic finance instruments in sustainable funding. Issuance remains concentrated in Saudi Arabia, the UAE, Malaysia, and Indonesia. However, greater alignment with International Capital Market Association principles and increased US dollar-denominated issuance are expected to expand the investor base. “We expect ESG sukuk to maintain solid momentum into 2026, supported by sustainability mandates, net-zero targets, new frameworks, robust demand, and the upcoming COP31 in Turkiye,” said Bashar Al Natoor, Fitch’s Global Head of Islamic Finance. He added that while evolving sharia and ESG requirements, geopolitical risks, and potential greenwashing are concerns, the credit profile of the segment remains strong, with 92% of rated ESG sukuk at investment grade and no recorded defaults. Global ESG sukuk issuance rose over 60% to US$18.5 billion in 2025, led by Saudi Arabia, Malaysia, the UAE, and Indonesia. Outstanding ESG sukuk reached US$58 billion at the end of 2025, up about 30% from a year earlier, with roughly two-thirds denominated in US dollars. Fitch highlighted that sustainability and green sukuk remain dominant, while social, sustainability-linked, and climate-linked sukuk structures are emerging. Regulatory and policy support has also expanded, including tax exemptions for Sustainable and Responsible Investment sukuk in Malaysia and new sustainable finance frameworks across the Gulf region.

The National Climate Change Bill is set to undergo at least a first reading in the current parliamentary session, marking a significant step toward strengthening climate governance and supporting Malaysia’s carbon reduction commitments, Deputy Minister of Natural Resources and Environment Syed Ibrahim Syed Noh said. Speaking in the Dewan Rakyat, Syed Ibrahim highlighted that the ministry is finalising the National Carbon Market Policy, which will complement the bill by establishing a legal framework to regulate greenhouse gas emissions and oversee carbon trading activities, including Internationally Transferred Mitigation Outcomes (ITMO), in line with Malaysia’s commitments under the Paris Agreement. Both the bill and the policy are designed to improve transparency and accountability through rigorous carbon emission measurement and reporting, directly supporting the country’s Nationally Determined Contributions (NDC). Syed Ibrahim also pointed to Malaysia’s potential to become a regional carbon trading hub, which could drive sustainable green economic growth across the region. The ministry conducted at least 13 engagement sessions with state governments and held public consultations between October and December last year. Further dialogues with industry players and non-governmental organisations are planned to ensure the bill and policy are effectively implemented.

CIMB Group Holdings Bhd has been upgraded to the highest MSCI ESG Rating of AAA, recognising the bank’s strong performance in environmental, social, and governance (ESG) practices compared to global peers. According to CIMB, the upgrade from AA reflects enhanced disclosures, stronger consumer protection, improved workforce management, and a solid environmental score of 9.2. MSCI ESG Ratings assess how well companies manage industry-specific ESG risks that could affect financial performance. Companies are ranked from AAA to CCC based on their resilience relative to peers, using a rules-based methodology and data from corporate disclosures and alternative sources. Group CEO Novan Amirudin said the rating underscores CIMB’s success in integrating sustainability into both operational and strategic decisions. “Sustainability is a core part of our Forward30 strategy, driving growth and impact rather than being treated as a separate agenda,” he said. The MSCI upgrade follows other recent recognitions, including CIMB being ranked #1 globally among financial institutions in the 2025 Financial System Benchmark by the World Benchmarking Alliance and #2 globally for Inclusive Finance. These accolades highlight the bank’s transparency in governance and efforts to expand financial access while supporting a fair socio-economic transition. Novan added that external recognition is only part of the journey. CIMB is prioritising support for customers navigating the sustainability transition and aims to mobilise RM300 billion in sustainable finance by 2030. Initiatives include expanding sustainability advisory, carbon and nature finance solutions, and helping SMEs through workshops, transition risk guidance, and sustainability-linked financing tied to measurable outcomes. “What sets CIMB apart is our ability to turn ambition into action, helping clients through the transition and delivering meaningful real-economy impact across ASEAN,” he said.

Housing and Local Government Minister Nga Kor Ming has announced a RM3 million allocation for six Taman Rekreasi Madani projects in Penang. He said three parks will be built on the island, while the remaining three will be located on the mainland — two in Permatang Pauh and one in Jawi, Nibong Tebal. Each project, costing RM500,000, must be completed by Christmas this year, with no delays allowed, Nga said at the ESG certification presentation ceremony for the Penang Island City Council (MBPP) at the Royale Chulan Hotel. MBPP became the first city council in Malaysia to receive two ESG certifications from Sirim QAS International Sdn Bhd, covering ESG systems and social accountability management systems. Nga congratulated MBPP and expressed hope that its achievement would inspire the other 155 local councils nationwide. He also said MBPP will be nominated to represent Malaysia in the Dubai International Best Practices for Sustainable Development Award 2026.