THE Association for Welfare, Community and Dialogue (Acid) welcomes Malaysia and Singapore’s intention to sign a memorandum of co-operation for green economy.

The Singapore government has shown commitment by involving various stakeholders, which can be observed on CNA.

Malaysia could learn a bit from Singapore on how to get its citizens involved.

“Green economy” is described as that in which economic growth and environmental responsibility work together in a mutually reinforcing fashion, while supporting progress on social development.

Business and industry have a crucial role in delivering the economically viable products, processes, services, and solutions required for the transition.

According to research, a green economy requires the three pillars (economic, social, and environmental) of sustainable development to work in a mutually reinforcing fashion.

All efforts should reconcile the need for short and medium-term profit with longer-term systemic change.

Economic growth is and will be essential to provide the resources and social equity necessary to build capacity and finance needed to transition towards a green economy.

What is clear is this cannot be divorced from social-economic equity since it is tied to sustainable development goals, in complete contrast to neo-liberal economics that favour a trickle-down approach to wealth.

In Malaysia today, greening seems to take on a gradual approach in the policy stage, or among a few big corporations, with absence of real incentives for small- and medium-size industries to undertake the transition.

The citizens, considered an important stakeholder in future transition, seem unprepared since the real focus is on bread-and-butter issues related to inflation, corruption and the rise of right-wing politics detrimental to the common good.

In a nutshell, over the years the government, business entities and other stakeholders have not been able to provide clarity of vision on what constitutes a transition towards a green economy, when they have been weakened by ethno-religious politics and corporate corruption.

The greatest folly would be to perceive the green economy as another mere capitalist endeavour, which would end up narrowing it down to business opportunities and job creation, while ignoring its value in long term systemic change that not only reduces carbon imprint, but also the involvement of all stakeholders – from citizens to local government – in adhering to sustainable development goals. 

This would require systemic structural change to how institutions work.

For example, there would be a need for decentralisation in decision making on greening and social-economic well-being of the people.

In order to navigate the challenges, the unity government should provide clarity of vision and information on how it intends to move into a green and sustainable economy.

Currently much of the green economy literature points to the potential economic and climate action benefits, but all countries have different socio-economic realities that need to be carefully examined to understand what type of policy can bring benefit to Malaysia. 

To do this, we need to use hard data to show how climate action and shifting to a green economy, will have overwhelming benefits, both for the environment and by promoting economic growth that generates more jobs.

We need to measure the environmental, social, and economic implications of climate policies and investments. This involves looking at the data, but also asking questions, such as: will everyone benefit equally?

What would investment in hydropower plants or green infrastructure mean?

Would this create jobs only for skilled urban workers or would it also benefit women working in informal economies?

Are the skills, labour and technology to build and run such projects domestically available?

By identifying the synergies and trade-offs between climate action, and broader development priorities and needs, policymakers can enhance the positive impacts of recovery packages and drive systemic changes. This work has already taken place in many developing countries.

We could learn from countries like Costa Rica and Colombia, which have embarked on tropical carbon tax strategy and how it has created an impact on their economies.

Therefore, it is vital for the government to take on these questions, learn from references and provide clarity to stakeholders with greater vigour as it co-operates with Singapore. – January 22, 2023.

* Ronald Benjamin is secretary for the Association for Welfare, Community and Dialogue.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.