Minister of Finance, Tengku Zafrul Aziz spoke briefly on sustainability at the InvestKL conference today on the recent flooding in Sabah and landslides in Kemensah Heights that serve as reminders that we too, are vulnerable to climate change. Dealing with the climate emergency is no longer an option or one that is limited to only the Government.
In order to address climate-related issues, the Government first introduced the National Policy on Climate Change in 2010, five years prior to the signing of the Paris Agreement. Since then, they have made significant progress in reinforcing their commitment to the environment at the global and domestic stage.
“Moving forward, the next few years will be critical. In this regard, the National Renewable Energy Policy remains committed to achieving a 20% renewable energy capacity mix by 2025. Similarly, we have also pledged to reduce our greenhouse gas emissions intensity to 45% of GDP by 2030. We remain committed to the Helsinki Principles by promoting national climate action through fiscal policy and the use of public finance. In the long run, these will help us reach our goal of becoming carbon-neutral by 2050.
“As I previously stated, sustainability will continue to be a major focus in Budget 2022, as how it is in the Twelfth Malaysia Plan. Ultimately, climate change necessitates that we all do our part to reduce carbon emissions, drive change, and protect our natural capital.
“I have spoken at length on Malaysia’s developmental path ahead, guided by the Twelfth Malaysia Plan but also wider and ongoing efforts by the Government, from promoting quality investment to the upcoming Budget 2022 However, I recognise that the future remains fraught with challenges. And, more than ever, Malaysia’s resilience is put to the test. How will we fare? And can we emerge from this crisis more resilient? In looking forward, I lean into our nation’s history.
Looking back, Malaysia’s real GDP grew 5.2% per annum from 1991 to 2020. No small feat, given it had to overcome the Asian Financial Crisis, a global electronics downturn, a Global Financial Crisis, and a global pandemic in that period. In fact, it was after the Asian Financial Crisis that the Malaysian economy reformed, producing over two decades of current account surpluses since, including its largest-ever trade surplus in 2020 of 184.8 billion ringgit, an achievement made all the more remarkable given the context of the pandemic.
“Despite adopting a floating exchange rate regime more than half a decade ago, Malaysia’s international reserves remain robust, registering 115.2 billion dollars as at end of September. Additionally, despite changes and challenges in the political arena, Malaysia’s policy delivery and institutions have remained resilient.
“Despite the ebbs and flows of globalisation in recent years, Malaysia remains more open to trade than nearly 90% of countries in the world today while remaining a steadfast participant in major trade pacts like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
“And, despite the rise of our regional neighbours, we continue to be competitive, registering 25th on the 2021 IMD World Competitiveness Yearbook.
Ranking 12th on the World Bank’s Doing Business 2020 report, Malaysia remains as open to business as it ever was.
In view of a Malaysia that has remained open, trade-oriented, and competitive; of a Malaysia that grows ever more resilient with each challenge it faces, I look to the future with confidence.
“To that end, I call upon the investment community to be the catalyst for reform, to drive sustainability, and to contribute to our collective goal of shared prosperity.
“On that note, allow me to thank and congratulate Bursa Malaysia and Maybank Investment Bank for successfully organising Invest Malaysia 2021.”
