2024 Forecast more ESG growth for Malaysia.

The Deputy Minister of Investment, Trade, and Industry, Liew Chin Tong, highlighted in his keynote address that Malaysia has become a focal point for foreign investors. The World Economic Forum identified Malaysia as one of six countries attracting the most greenfield Foreign Direct Investment (FDI) between January and August of the current year. Malaysia received a significant amount of greenfield FDI, approximately US$28 billion (RM131 billion) during this period.

NIMP 2030 aims to enhance the manufacturing sector's value added to RM587.5 billion. Liew emphasized paradigm shifts for Malaysia, including maximizing its position in the global supply chain, shifting to tech-based capital, valuing and paying for skills, and transitioning to a resilient middle-class society with a focus on climate considerations.

 NIMP 2030 focuses on six engines of growth: reindustrialization, green transition, tech up, good life, services, and empowering regions.

WTW Group Managing Director Tan Ka Leong discussed the impact of NIMP 2030, NETR, and ESG. Companies are increasingly focusing on ESG considerations, and tenants are expecting more flexibility in terms of space layout, size, and lease terms. The retail sector is expected to see purpose-built spaces embracing ESG, while retailers adapt to omnichannel shopping experiences. In the office sector, there's a rising demand for green-certified prime building office spaces, reflecting a broader global trend toward sustainability. Tan predicts an increase in office supply and vacancy rates, driven by a flight-to-green process.

Rehda Malaysia Vice-President Datuk Azmir Merican, touched on the increasing importance of ESG in the real estate sector. Tan and Tay noted that while many companies have embraced ESG, there is still a lack of understanding about what it means to be ESG-compliant. ESG considerations are becoming more relevant, particularly for commercial buildings, as multinational companies require landlords to transform their buildings into ESG-compliant structures.

(From left) Far Capital’s Faizal, Knight Frank Singapore’s Tay, Rehda Malaysia’s Azmir and

CBRE| WTW’s Tan during the panel discussion (Photo by Shahrill Basri/The Edge)

(Source : https://theedgemalaysia.com)