ESG

KUALA LUMPUR, Malaysia aims to make its steel industry fully green by 2050 with the launch of the Steel Industry Roadmap 2035 (SIR2035), a strategic plan addressing overcapacity, import reliance, and carbon emissions. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said SIR2035 provides a clear pathway to stabilise, restructure, and transform the sector in line with the New Industrial Master Plan 2030, the National Energy Transition Roadmap, and the nation’s Net Zero goals. Future guide: Tengku Zafrul (second from left) taking a look at the Steel Industry Roadmap 2035. With him are (from left) Miti secretary-general Datuk Hairil Yahri Yaacob, Liew and Miti deputy secretary-general Datuk Hanafi Sakri. The roadmap outlines 15 strategies across three phases: stabilisation, transformation, and full transition. In the next two years, the focus will be on managing overcapacity, restructuring licensing frameworks, cracking down on illegal operators, securing domestic raw materials, and laying the groundwork for decarbonisation. From 2027 to 2035, efforts will shift to accelerating carbon reduction initiatives, developing low-carbon production infrastructure, establishing standards, and investing in new technologies. Beyond 2035, the aim is a fully green steel sector by 2050, with talent and capital mobilised to maintain competitiveness, resilience, and alignment with Net Zero commitments. Tengku Zafrul described SIR2035 as “not only a policy document, but also a national contract for a sustainable future and the socio-economic wellbeing of future generations.” He highlighted challenges facing Asean, including overproduction of long steel products, heavy reliance on imported flat steel, unfair trade practices, and regulatory pressures such as decarbonisation requirements and tariffs like the US Section 232 steel and aluminium duties. At the launch of SIR2035 during the Asean Policymakers Conference on Steel and the 2025 Asean Iron and Steel Forum, Tengku Zafrul shared that Asean-6 steel consumption reached 74 million tonnes in 2023, approaching the pre-pandemic peak of 80 million tonnes, with demand projected to hit 80 million tonnes by 2025. Globally, over 600 million tonnes of excess steelmaking capacity is seeking markets in Asean. For Malaysia, upstream steel capacity could reach 40.8 million tonnes by 2030, while domestic demand stands at only 14.7 million tonnes, reflecting overcapacity, underutilised assets, and weakening competitiveness. As one of the country’s most carbon-intensive sectors, the steel industry faces regulatory and market challenges, making decarbonisation essential. Tengku Zafrul also proposed a regional cooperation framework, including an Asean-wide database on capacity and utilisation, a shared decarbonisation pathway with full monitoring, reporting, and verification (MRV), environmental product declarations (EPD), and harmonised green steel standards. The event was organised in collaboration with the South-East Asian Iron and Steel Institute (Seaisi), with Deputy Minister Liew Chin Tong and Seaisi chairman Datuk Lim Hong Thye also in attendance.

KUALA LUMPUR, DIBIZ Global, a sustainability commodities traceability platform, has partnered with the Malaysian Sustainable Palm Oil (MSPO) to roll out eMSPO, a pilot project offering full end-to-end traceability to support compliance with the European Union Deforestation Regulation (EUDR). DIBIZ co-founder and CEO Unnikrishnan R. Unnithan said the collaboration represents a milestone for MSPO as the world’s first national certification system to adopt blockchain-powered real-time traceability and deforestation metrics. “This initiative ensures all stakeholders, especially smallholders, are part of an EUDR-compliant supply chain. It also reinforces Malaysia’s global leadership in agri-commodities while embracing blockchain technology for EUDR and beyond,” he said. The eMSPO platform will track each delivery order and production step, applying product transformation standards to prevent non-compliant items from entering the supply chain while protecting commercial data. Every transaction will be verified in real-time against deforestation risks through DIBIZ’s GIS partner, EarthDaily, and authenticated by Control Union. DIBIZ said this positions Malaysia’s palm oil industry to meet EUDR requirements well ahead of the December 30, 2025, deadline. The Ministry of Plantation and Commodities recently announced that the EU officially recognised MSPO certification as a credible sustainability standard with advanced digital traceability, affirming Malaysia’s leadership in sustainable palm oil and ensuring over half a million smallholders are part of the agenda.

KUALA LUMPUR, Straits Energy Resources Bhd, through its subsidiary Benua Hijau Sdn Bhd, has set a new entry in the Malaysia Book of Records by planting 12,275 Melaleuca cajuputi (Pokok Gelam) saplings in a single day — the largest tree-planting event of its kind in the country. The effort is part of Benua Hijau’s long-term reforestation programme to restore degraded areas in the Setiu Wetlands State Park, one of Peninsular Malaysia’s largest natural wetlands. The project aims to plant 100,000 Pokok Gelam trees over five years, rehabilitating about 200 acres of forest with this native species. From left: Yayasan DiRaja Sultan Mizan board of trustees member Datuk Dr. Che Ab Rahim Nik, Majlis Pengurusan Taman Negeri Terengganu director Datuk Tengku Mohd Arifin Tengku A. Rahman, The Malaysia Book of Records official representative Megat Faris Hussein Megat Muzaffar Shah, Terengganu State Committee on Tourism, Culture, Environment and Climate Change chairman Datuk Razali Idris, Straits Energy Resources Bhd chairman Datuk’ Seri Tengku Baharuddin Ibni Almarhum Sultan Mahmud and Benua Hijau Sdn Bhd project director Dr. Paul Yap Poh Onn. The record-breaking initiative took place during the Festival Setiu Wetlands 2025, organised by the Terengganu State Parks Management Council with support from Straits Energy and its NYSE American-listed unit, TMD Energy Ltd. The event was designed to raise awareness about the importance of conserving wetlands. Close to 500 volunteers — including local residents, students, NGOs and government agencies — joined the planting activities, covering 20 acres of degraded wetland, an area roughly the size of 11 football fields. Since the launch of the Gelam Research Centre & Nursery in October 2024, more than 7,800 trees have been planted with help from students and community groups. “With today’s achievement of 12,275 saplings planted, Benua Hijau is on track to meet its goal of 20,000 Gelam trees annually,” said chairman Datuk Seri Tengku Baharuddin Ibni Sultan Mahmud Al-Muktafi Billah Shah. He added that the milestone marks an important step forward in the company’s large-scale reforestation vision, demonstrating how collaboration between government agencies, corporations and communities can deliver lasting environmental and social benefits.

HANOI, In recent years, more companies in Vietnam have ventured into the green economy, producing sustainable goods such as biodegradable packaging, organic foods, and eco-friendly fashion. While growing environmental awareness has boosted consumer interest, green businesses face persistent challenges — especially high production costs — which make it difficult to compete on price or scale up in the domestic market. Inside a factory of Faslink, a firm committed to sustainable fashion for over 15 years. Experts say that despite positive momentum, eco-friendly products often remain significantly more expensive than conventional alternatives, leaving many Vietnamese consumers unwilling or unable to make the switch. One example is the Song Hong agricultural cooperative in Hanoi, which produces vegetable-based drinking straws. Despite their environmental benefits and health-friendly design, most of these products are exported to developed markets including Germany, the UK, Japan, and South Korea, as local demand is limited by price sensitivity. Vietnam consumes an estimated 5.3 billion plastic straws annually — about 50 times its population. Even if only 1–2% are improperly disposed of, the environmental impact is severe. Yet, eco-friendly options remain beyond the reach of most domestic consumers. The challenge extends beyond straws. Fuwa Biotech, a Thanh Hoa-based company producing enzyme-based dishwashing liquid from pineapple peels, also struggles with affordability. A 3.8-litre bottle of its chemical-free product retails for VNĐ335,000 (US$13) — two to three times higher than standard alternatives. “High prices are the biggest barrier to reaching more customers,” said Vo Van Luat of Fuwa Biotech, who stressed the need for more forums and awareness campaigns to encourage sustainable consumption. In the fashion industry, long-established players such as HCM City’s Faslink face similar struggles. Deputy general director Nguyen Bech Dien noted that while the company has pioneered fabrics made from recycled and natural fibres, such as pineapple leaves, the high cost of research and production keeps prices elevated. “Consumers remain hesitant to pay more for eco-friendly fabrics when conventional options like polyester or cotton are much cheaper,” she said. A Deloitte Vietnam survey cited by sustainability director Pham Minh Huong found that while up to 50% of consumers express interest in green products, fewer than 30% are willing to pay a premium. “This highlights the gap between awareness and actual behaviour,” Huong said. Industry players argue that lowering production costs is key to making green goods more accessible. But the hurdles are considerable: substantial upfront investments, strict environmental standards, and the need for clean raw materials make scaling up risky and expensive. National Assembly vice chairman Ta Dinh Thi echoed these concerns, noting that many companies are reluctant to expand beyond small-scale experiments because of doubts over profitability and competitive pressure, despite existing government support. Meanwhile, Faslink’s Dien highlighted the difficulty of commercialising new recycled materials. Promising ideas — such as fabrics from banana stems or composting mushrooms — often stall at the lab stage due to technology and supply chain gaps. Recycling plastics remains particularly costly. At Duy Tan Recycling, recycled plastic costs 20–30% more than virgin plastic, driven by expensive collection, sorting, and processing. “Encouraging waste segregation at source could reduce costs and help lower prices,” said the company’s sustainable development head, Le Viet Dong Hieu. Experts agree that innovation and affordable technology will be critical to driving down costs. But small and medium-sized enterprises — which form the backbone of Vietnam’s green sector — face difficulties accessing financial support and resources. Many are now calling for targeted incentives, funding schemes, and public education campaigns to help them transition towards sustainable production at scale.

KUALA LUMPUR, Bank Islam Malaysia Bhd has rolled out financial assistance measures to support micro, small and medium enterprises (MSMEs) and individual customers impacted by floods across the country. In a statement, the bank said it is offering a disaster relief financing facility for businesses located in districts identified by the National Disaster Management Agency (NADMA) as flood disaster areas. “Through this facility, eligible MSMEs can secure financing to repair or replace damaged business assets, including plants, machinery, and to meet essential working capital needs. “In addition, existing MSME customers in NADMA-designated flood areas may apply for a moratorium of up to six months, covering all credit facilities such as term financing, revolving credit, cash lines, and trade facilities,” it said. For individual customers, Bank Islam has introduced the Prihatin Programme for Flood, which allows house, personal, and vehicle financing-i customers affected by floods to defer monthly instalments for up to six months, subject to applicable terms. The bank is also offering free replacements for damaged or lost credit cards-i, debit cards-i, and cheque books. Bank Islam group chief operating officer and group chief sustainability officer Mohamed Iran Moriff Mohd Shariff said the bank is committed to easing the burden of affected customers. “Recognising the challenges faced by our customers, we are implementing proactive measures with simplified documentation and approval processes,” he said. Applications for assistance can be submitted at any operating Bank Islam branch within three months of the incident.

From the ridgelines of southern Lao PDR, 133 wind turbines are now delivering clean electricity directly into Vietnam, marking a historic milestone for the region. The Monsoon Wind Power Project, which reached commercial operation on 22 August 2025, is the first wind farm in Laos and the first renewable energy project in Asia to export power internationally. At 600 MW, it also ranks as Southeast Asia’s largest onshore wind installation. Completed four months ahead of schedule after 27 months of construction, the project represents a breakthrough in both national energy planning and regional cooperation. It diversifies Laos’ energy mix beyond hydropower while providing Vietnam with a reliable source of clean electricity amid surging demand. Regional Integration Through Infrastructure The wind farm spans the Dak Cheung and Sanxay districts in southern Laos. Power generated at the site is routed through four substations, stepped up to 500 kV, and transmitted via a 27-kilometre line to the Lao–Vietnam border. From there, it connects to Vietnam’s 500 kV network and continues to EVN’s Thanh My substation, feeding directly into the national grid. By demonstrating that cross-border renewable projects can be technically and commercially viable, Monsoon Wind reinforces ambitions for the ASEAN Power Grid, a long-standing vision for shared regional energy security. Consortium Collaboration and Financing Monsoon Wind is developed and operated by Monsoon Wind Power Company Limited, a Lao-incorporated entity backed by a multinational consortium. Partners include Impact Electrons Siam, ACEN (Philippines), BCPG and STP&I (Thailand), Mitsubishi Corporation and Diamond Generating Asia, and Lao-based SMP Consultation. The project was financed by a mix of regional and international lenders, including the Asian Development Bank (lead arranger), Asian Infrastructure Investment Bank, Japan International Cooperation Agency, Export–Import Bank of Thailand, Hong Kong Mortgage Corporation, Sumitomo Mitsui Banking Corporation, Kasikornbank, and Siam Commercial Bank. PowerChina led construction, while Envision Energy supplied the turbines. This collaboration highlights growing confidence in cross-border renewable infrastructure as a source of stable returns while advancing climate goals. Perspectives from Project Leaders “This is a proud and historic moment for our company, our partners, and the region,” said Nat Hutanuwatr, Managing Director of Monsoon Wind Power. He highlighted the project’s decade-long journey from feasibility studies to full-scale delivery and thanked governments, financiers, and local communities for their support. Chairwoman Paradai Suebma noted the project was “14 years in the making,” calling it both a testament to long-term vision and a practical example of ASEAN nations collaborating on climate-aligned growth. Community Development and ESG Commitment Construction was completed without resettlement, in line with international environmental and social safeguard standards. Developers have committed $1.1 million annually for community programs, including scholarships, mobile healthcare services, and coffee-based livelihood initiatives. By combining local development with regional power generation, Monsoon Wind demonstrates that utility-scale infrastructure can deliver both energy security and tangible social benefits. Implications for Investors and Policymakers For investors, Monsoon Wind’s ahead-of-schedule completion and stable long-term offtake into Vietnam strengthen the case for cross-border renewables as bankable assets. For policymakers, the project exemplifies how infrastructure can provide dual benefits: diversifying domestic energy sources while enhancing regional integration. The project is expected to avoid 1.3 million tonnes of CO₂ emissions annually, supporting commitments under the Paris Agreement and offering a replicable model for future ASEAN energy initiatives. Regional and Global Significance Monsoon Wind is reshaping expectations for Southeast Asia’s power sector. By moving beyond single-country, single-technology projects, it broadens options for grid balancing, investment attraction, and decarbonization acceleration. For global ESG and climate finance stakeholders, the project shows that the combination of governance support, blended finance, and multinational partnerships can unlock frontier renewable projects at scale. What began as a speculative concept in 2011 now serves as evidence that shared infrastructure can anchor the energy transition in Asia’s rapidly growing economies.

The Monetary Authority of Singapore (MAS) has successfully secured $510 million in committed capital for a new fund aimed at financing green infrastructure projects across Southeast and South Asia. The initiative, called the Green Investments Partnership, forms part of the broader Financing Asia’s Transition Partnership (FAST-P) and will focus on supporting renewable energy, energy storage, and sustainable transport initiatives. The fund has attracted commitments from a mix of regional and global investors, including HSBC, Singapore’s sovereign wealth investor Temasek, and the Australian government. Its design blends public and private capital to mitigate risk while accelerating the deployment of climate-related projects. Pentagreen Capital to Oversee Fund Management Management of the fund will be handled by Pentagreen Capital, a sustainable infrastructure debt platform jointly established by HSBC and Temasek. Pentagreen specializes in financing projects that are often overlooked by traditional investors but carry high potential for climate and social impact. Gillian Tan, Assistant Managing Director (Development & International) and Chief Sustainability Officer at MAS. “Pentagreen has brought together a diverse group of partners, participating across both commercial and concessional layers of the capital structure to de-risk and fund marginally bankable green infrastructure projects,” said Gillian Tan, MAS Assistant Managing Director (Development & International) and Chief Sustainability Officer. This layered approach allows concessional capital to attract commercial investors who might otherwise shy away from projects in markets with higher financial or political risk—a core principle of FAST-P’s strategy. Addressing Regional Transition Needs Southeast and South Asia face some of the world’s fastest-growing energy demand, while many economies remain heavily reliant on coal. Expanding access to affordable capital for renewable energy and low-carbon infrastructure is critical for aligning the region with global climate goals. The Green Investments Partnership will prioritize utility-scale renewable energy projects, battery storage, clean mobility solutions, and supporting infrastructure. MAS has emphasized that investments will be evaluated not only on their emissions-reduction potential but also on broader social benefits, such as job creation and community development. Global Significance and Policy Alignment Singapore’s fund aligns with international efforts to close the climate finance gap in emerging markets. According to the International Energy Agency, developing economies must triple annual investment in clean energy to meet global net-zero targets. By positioning itself as a hub for blended finance, Singapore reinforces its regional capital market role while advancing its own climate agenda. The initiative also complements Australia’s economic and diplomatic engagement in Asia, reflecting Canberra’s increasing focus on climate finance. Investor Implications For investors and business leaders, the Green Investments Partnership offers a model for channeling capital into markets with substantial infrastructure needs but higher risk profiles. The initiative demonstrates how public-private collaboration can be scaled effectively to mobilize resources quickly, while balancing financial returns with measurable environmental and social impact. The fund’s success will depend on effective execution: navigating diverse regulatory landscapes, ensuring capital deployment translates into tangible decarbonization outcomes, and balancing investor expectations with climate goals. If successful, it could serve as a blueprint for other regions seeking to unlock private investment for the energy transition. A Regional Initiative with Global Impact With $510 million already committed and additional fundraising anticipated, the Green Investments Partnership signals Asia’s central role in global climate action. MAS is leveraging its convening power to align governments, financial institutions, and investors, positioning Singapore not only as a financial hub but also as a key driver of the region’s transition to sustainable, low-carbon infrastructure.

KUALA LUMPUR, Malaysia has secured over RM1.5 billion in trade and investment prospects during Week 22 of Expo 2025 Osaka, held from Sept 8-14, 2025, according to the Ministry of Natural Resources and Environmental Sustainability (NRES). In a statement today, the ministry said the initiative was co-led by the Ministry of Energy Transition and Water Transformation (PETRA) and NRES, with the Malaysian Green Technology and Climate Change Corporation (MGTC) as the implementing agency. The trade and investment value was derived from 68 business meetings between Malaysian companies and international organisations across the energy, water, and green technology sectors. Of the total, RM38.74 million came from the signing of memoranda of cooperation, understanding, and agreement. The ministry noted that the figure is likely to rise further, as several companies have yet to confirm or disclose the outcomes of ongoing discussions. Malaysia’s participation in Week 22 highlighted its commitment to sustainability, biodiversity protection, renewable energy adoption, and water resource management, while also advancing the Malaysia MADANI vision. Through the Malaysia Pavilion, the country showcased its ambitions for a low-carbon and climate-resilient future via exhibits, pocket talks, business forums, and technology showcases. Company representatives and ministry officials also delivered presentations on Malaysia’s leadership in energy transition and green innovation. The NRES said the programme helped reinforce Malaysia’s position as a reliable global partner in driving sustainability and innovation, while strengthening ties with international stakeholders, industry leaders, and civil society groups. The week-long programme concluded with a closing ceremony and the screening of Footprints in the Forest, an environmental film calling for the protection of forests, wildlife, and ecosystems, serving as a symbolic reminder of the collective responsibility towards environmental conservation.

LANGKAWI, In a landmark moment for youth climate leadership, children and youth from all 10 ASEAN Member States formally presented the ASEAN Children & Youth Climate Declaration, known as the Langkawi Declaration to environment ministers during the 18th ASEAN Ministerial Meeting on the Environment (AMME). This marks a historic shift from youth participation to youth influence in regional climate governance. Ten child and youth delegates (one from each ASEAN Member State) deliver a joint intervention calling for a safe, clean, healthy and sustainable environment for every child. “Standing in the AMME hall, I felt our voices and our generation’s hopes and fears were heard. The Langkawi Declaration is more than words, it’s a call to action. We are ready to work alongside our leaders to turn promises into action for every child, today and for the future,” said Celeste Chung, youth delegate from Sabah, Malaysia. Detail of the Declaration featuring youth-led recommendations on adaptation, education, participation and just transition, prepared at ACYCS 2025. “Each word in this Declaration carries the voices of vulnerable communities living at the frontlines of the climate crisis, from coastal villages to urban neighbourhoods,” said Alexandra Nicole Eclarinal from Bicol, Philippines. “It reflects not only what we ask of our leaders, but what we, young people are prepared to contribute through action, collaboration, and accountability.” The Declaration calls for urgent action in seven key areas, including meaningful youth participation in policymaking, climate justice, integrated climate education, accelerated just energy transition, climate-resilient social services, sustainable agriculture rooted in indigenous knowledge, and strengthened climate financing. Its acknowledgement at AMME marks the youth voices are formally embedded in regional climate decision-making, setting a precedent for future ASEAN policies. ASEAN youth delegates hand over the Langkawi Declaration to COP30 President, André Corrêa do Lago during AMME 2025. Speaking at the AMME, the ASEAN youth representatives pledged to raising awareness, driving community-based solutions, and holding themselves accountable as partners in climate action. Their closing message was one of confidence and conviction: they stand ready to lead with courage, collaborate across generations, and co-create a future where climate resilience and justice are shared responsibilities, not just aspirations. YB Datuk Seri Johari Abdul Ghani, Chair of the 18th AMME and Acting Minister of Natural Resources and Environmental Sustainability, accepted the Langkawi Declaration during the ministerial session. He acknowledged the clarity, urgency and commitment shown by ASEAN’s youth, thanked them for their leadership, and reaffirmed the region’s dedication to integrating youth perspectives into ASEAN’s ongoing environmental strategies and actions. He also recognised the role of partners such as UNICEF and youth-led organisations in ensuring that youth perspectives continue to shape the region’s path toward a climate-resilient future. “The Langkawi Declaration at AMME is a moment of optimism and we thank the Government of Malaysia and ASEAN ministers for recognising climate action is, at its core, about children’s rights. With the support of Malaysia’s Ministry of Natural Resources and Environmental Sustainability (NRES), the declaration will shape how youth priorities are reflected in ASEAN’s climate agenda, demonstrating that youth are not just participants, they are influencing policy,” said Robert Gass, UNICEF Representative to Malaysia, Special Representative to Brunei Darussalam, and UN Resident Coordinator a.i to Malaysia, Singapore and Brunei Darussalam. For over three days in Langkawi, youth delegates worked together through dialogues, skills labs, and strategy sessions to craft a shared vision for the region’s climate future. The result is the Langkawi Declaration, a historic, youth-led blueprint that puts children’s rights at the heart of ASEAN’s climate agenda. This milestone is part of the ASEAN Children & Youth Climate Summit (ACYCS) 2025, co-organised by UNICEF and Malaysia’s Ministry of Natural Resources and Environmental Sustainability (NRES) and supported by the Ministry of Youth and Sports (KBS). The summit brought together 100 youth delegates aged 15 to 25 for a three-day youth-led leadership programme. The Langkawi Declaration aims to inform on-going national youth efforts and contribute to the region’s collective positioning ahead of COP30.

KUALA LUMPUR, PBA Holdings Bhd’s subsidiary, Perbadanan Bekalan Air Pulau Pinang Sdn Bhd (PBAPP), has successfully raised RM300 million through its inaugural sustainability sukuk wakalah issuance under its sukuk wakalah programme. In a filing with Bursa Malaysia, PBAPP said the issuance was divided into two equal tranches of RM150 million each. Tranche 1 carries a periodic distribution rate of 3.57% per annum, payable semi-annually, with a 10-year tenure maturing on Sept 4, 2035, while Tranche 2 offers a 3.75% rate per annum with a 15-year tenure maturing on Sept 4, 2040. Proceeds from the sukuk will be channelled towards financing projects under the Water Contingency Plan 2030, alongside other capital and operating expenditures. These initiatives fall under PBAPP’s sustainability framework, classified as eligible green projects in sustainable water and wastewater management, as well as eligible social projects in affordable basic infrastructure. The sukuk wakalah programme has received a top-tier AAA credit rating from RAM Rating Services Bhd.