GLCS, GLICS Play Pivotal Role In Shaping Value Creation And Societal Progress: Minister

Institutional investors play a pivotal role in shaping the trajectory of sustainable development. It is imperative that Malaysia recognise the symbiotic relationship between corporate governance and sustainable development. It is through the lens of good governance that Malaysia can foster the conditions necessary for the long-term value creation and societal progress.

Delivering the keynote address at the IIC Corporate Governance Conference 2024 in Kuala Lumpur today (Mac 5), Minister of Finance II Datuk Seri Amir Hamzah Azizan said corporate governance and sustainable development hold profound implications for Malaysia’s economic resilience and global competitiveness. IIC’s collaborative efforts with the Capital Markets Malaysia such as the Sustainable Investment Platform (SIP) supporting institutional investors and fund managers to develop sustainable and responsible investments are commendable.

He added the theme of the conference namely ‘Countdown to 2030: Investing Towards Sustainable Development’ signifies the critical role of institutional investors in shaping an economically robust future with environmental and social sustainability.

In framing the discourse today, it is essential to underscore Malaysia’s commitment to sustainability from the MADANI Economy framework perspective — a vision anchored on the principles of sustainability with good corporate governance. Government’s initiatives, such as the National Energy Transition Roadmap (NETR) and the New Industrial Master Plan (NIMP) 2030, underscore the nation’s commitment to fostering a conducive environment for sustainable investment.

These initiatives, coupled with ambitious targets for carbon intensity reduction, renewable energy capacity, and green procurement, signal our unwavering resolve to mitigate climate change and promote sustainable development.

“The success of MADANI Economy framework hinges upon the synergy of the public, private sectors and the people; an All-of-Malaysia approach. The government strives to rebuild trust and confidence, for a more resilient and equitable future for the country. Malaysia has not only made significant strides domestically. Our engagement with the Sustainable Development Goals (SDGs) and the development of accelerator initiatives underscore the commitment to fostering partnerships for the goals,” Amir Hamzah adding, Government linked investment companies (GLIC) which collectively manages almost RM2 trillion worth of assets and Government linked companies (GLC) should be optimised to support Malaysia’s economic growth and domestic direct investment (DDI).

GLIC and GLCs can no longer focus solely on profit without taking greater corporate responsibility in nation building.

Certainly, with Malaysia achieving record high approved investments in 2023 of RM329.5 billion, there will be greater demand for financing for new direct domestic investments. A good example of GLICs supporting direct domestic investments, was the recent RM2 billion sale and leaseback facility for Osram’s new facility financed by EPF, PNB and KWAP. The Government, therefore, calls on institutional shareholders to be increasingly open to domestic direct investment opportunities, especially in new growth areas / like energy transition and support investments raising the economic complexity of core sectors, he added.

The Institutional Investors Council Malaysia (IIC)  organised the IIC Corporate Governance Conference 2024 with the theme ‘Countdown to  2030: Investing Towards Sustainable Development in Malaysia.

IIC Chairman Datuk Hajah Nik Amlizan Mohamed, said, “The theme for this year aims  to establish a connection between corporate governance and the realisation of Malaysia’s  ambitions for sustainability. The chosen theme signifies a deliberate effort to position corporate  governance as a guiding principle, a measure of integrity and responsibility that will play a  pivotal role in steering Malaysia towards its envisioned sustainable future by the year 2030. 

In this context, the IIC staunchly asserts that corporate governance stands as the cornerstone  for sustainable practices. It establishes a framework that nurtures transparency,  accountability, and ethical conduct,” she added. 

A total of five sessions covered different topics, including the role of institutional investors in  promoting sustainability and performance through good corporate governance, the role of  corporate boards in managing sustainability, building market resilience through digital  disruptions, as well as investing for social impact. 

The event was well supported by the members of the IIC and was attended by more than 360  local and international participants from the industry and investment community. 

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