KUALA LUMPUR, March 16 — A total of RM420 million or 21 per cent of the total value of the RM2 billion low carbon transition facility (LCTF) fund has been utilised by small-and-medium enterprises (SMEs) so far, said Deputy Economy Minister Datuk Hanifah Hajar Taib.
She said the LCTF, led by Bank Negara Malaysia, is one of the initiatives implemented by the government to encourage and support SMEs in an effort to apply sustainability practices to increase business resilience.
“Efforts are being intensified to increase the adoption of ESG among SMEs considering the level of awareness among SMEs is at 42 per cent, based on a public survey report by SME Corporation Malaysia in 2023,” Hanifah Hajar said during the question-and answer-session in Parliament today.
She was responding to a query from Kubang Pasu MP Datuk Ku Abd Rahman Ku Ismail, regarding the government’s initiative to empower environmental, social and governance (ESG) sustainability in Malaysia.
Hanifah Hajar said the government also issued sukuk and a Bond Grant Scheme under the Sukuk Framework for Sustainable and Responsible Investment (SRI) by the Securities Commission Malaysia to encourage more companies to finance green, social and sustainable projects.
“Currently, all publicly listed companies (PLCs) on Bursa Malaysia are encouraged to report on business practices that comply with ESG principles.
“This business reporting is expected to be enforced by Bursa Malaysia to all PLCs in 2024,” she said.
The Government’s Green Procurement (GGP) policy led by the Finance Ministry was also implemented to encourage and cultivate the purchase of green products and services in the public sector.
— Bernama
