ESG

Vietnam is accelerating its liquefied natural gas (LNG) development to meet surging electricity demand amid strong economic growth. State utility Electricity of Vietnam (EVN) has awarded a $974 million construction contract to a consortium led by PowerChina and Lilama to build the Quang Trach II LNG power plant in central Quang Tri province. Once completed, the facility will provide 1,612 megawatts of capacity, making it one of the country’s largest new power generation assets. The move comes as Vietnam’s economy expanded 8% last year, driving industrial growth and putting pressure on the national grid. EVN described Quang Trach II as both an energy security measure and a transitional climate investment, noting that it will enhance grid reliability while supporting the country’s greenhouse gas reduction commitments. Vietnam’s energy mix remains heavily coal-dependent, with coal generating over 40% of electricity. The new LNG plant reflects a pragmatic shift toward lower-carbon fuels as the country ramps up renewable energy deployment. LNG offers faster deployment compared with large-scale renewables and adds flexibility to the grid during the transition. The project will use General Electric Vernova turbines, highlighting the growing involvement of international technology providers in Southeast Asia’s energy buildout. Analysts see Quang Trach II as part of a broader strategy to diversify the energy mix, reduce reliance on coal imports, and balance investor expectations on emissions and governance. The partnership between PowerChina and Lilama underscores Vietnam’s reliance on foreign engineering expertise for major energy projects, even amid geopolitical competition and increasing scrutiny of environmental, social, and governance (ESG) factors. Set to be fully operational by 2030, the plant aligns with Vietnam’s medium-term power development roadmap. As electrification expands across manufacturing hubs and urban centres, reliable supply will be critical to sustaining economic momentum and attracting foreign investment. For executives and investors, Quang Trach II highlights the challenge for emerging markets to balance energy security, economic growth, and climate commitments. While LNG reduces emissions compared with coal, it still extends fossil fuel reliance, raising questions about long-term sustainability. Policy updates and financing structures for similar projects will be closely watched by ESG investors and multinational stakeholders. Quang Trach II reflects a wider regional trend: governments are increasingly investing in transitional fuels to maintain economic stability while building the infrastructure needed for a low-carbon future.

SJK (C) Cheah Fah has begun the second phase of its expansion, backed by a RM23 million investment from Sunway Group, to accommodate rising student enrolment as Johor’s southern corridor continues to grow. The primary school, which opened in 2022 with RM18 million in funding from Sunway Group and the Jeffrey Cheah Foundation, was the first of 10 Chinese national-type schools approved under the Johor state government’s allocation. Sunway City Iskandar Puteri chief executive officer Gerard Soosay said the expansion reflects the increasing demand for quality education as the township evolves into a family-oriented community. “Education remains one of the most powerful pathways out of poverty and a key driver of social mobility. This expansion ensures that public schooling capacity grows alongside the increasing population in the area,” he said in a statement. Currently, the school has more than 820 students and is approaching its existing capacity of 1,000 pupils. The new expansion will add 12 classrooms, increasing the school’s capacity to about 1,500 students. The canteen will also be upgraded to accommodate all students at the same time. The design of the new facilities also takes into account possible future policy changes, including the government’s proposal to allow six-year-olds to enrol directly into Standard One. To date, Sunway has contributed RM23 million to the school, including an additional RM5 million pledged following a fundraising dinner held in 2025, which raised RM1 million from more than 900 donors. According to Sunway, construction will proceed without disrupting ongoing classes and is expected to be completed by the end of the year. The expansion comes amid renewed economic momentum in Johor, driven by rising industrial investments, increased cross-border activity and growing residential demand. Once completed, the expanded campus is expected to further strengthen Sunway City Iskandar Puteri’s position as a family-focused township centred on education, while reflecting Sunway’s continued support for national-type schools. SJK (C) Cheah Fah is one of eight schools nationwide adopted by Sunway Group and the Jeffrey Cheah Foundation, Malaysia’s largest education-focused social enterprise. To date, the foundation and Sunway have contributed more than RM62 million to these schools and awarded over RM967 million in scholarships and grants to thousands of students across the country.

Micro, small, and medium enterprise (MSME) entrepreneurs are being urged to change their mindset and accelerate the adoption of technology and sustainable governance practices to remain competitive in today’s economy. Rizal Datuk Nainy, Chief Executive Officer of SME Corp Malaysia, said digital transformation has become a key factor in business survival. “Entrepreneurs must view digitalisation as a core necessity in business operations, not just an option. Without it, businesses risk falling behind — not only in profitability but also in efficient and systematic business management,” he said during the PuTERA35 programme. He also highlighted the growing importance of Environmental, Social, and Governance (ESG) practices, which are increasingly valued in the global business ecosystem. “Multinational corporations and high-performing companies now require ESG reporting as a condition for participation in their supply chains. Major buyers today expect SMEs to provide disclosure reports as part of business collaboration requirements,” he explained. Meanwhile, Nadira Yusoff, CEO of Kiddocare, noted that technology adoption also enables companies to create broader social impact. “Every service provided by our childcare platform supports not only families in need but also creates employment opportunities for caregivers. Each service impacts two lives — the family receiving care and the caregiver earning an income,” she said. She added that business expansion is not just about increasing the number of clients but also about ensuring that the community of caregivers grows alongside the platform.

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.