THE government will launch a framework on environmental, social and corporate governance (ESG) standards by year-end to help local companies transition to using renewable energy, said International Trade and Industry Minister Tengku Zafrul Abdul Aziz today.

He said the plan will focus on small and medium enterprises (SMEs) to help them in terms of funding and capacity building for export.

“A lot of our export markets are asking exporters to be ESG-compliant, so we need to prepare our companies, especially our SMEs, to be more ESG-compliant,” he told reporters after the launch of Malaysia’s first battery energy storage system (Bess) for renewable energy in Bangi today.

The system was developed by Citaglobal Genetec Sdn Bhd, a special-purpose vehicle formed by Citaglobal Bhd and Genetec Technology Bhd.

The launch showcased the fully operational one-megawatt Bess prototype (MyBess) that was developed and piloted in December 2022 and currently supports the Genetec Technology plant’s energy needs. 

Tengku Zafrul said one of Malaysia’s competitive advantages is renewable energy, and local innovation such as MyBess will attract more investments into Malaysia. 

“The framework involves consultations with the industry. We want to be fair because we do not want to come out with a policy that is not in line with what the industry is ready for,” he said.

Earlier in his speech, Tengku Zafrul said MyBess can serve as a main initiative under the National Automotive Policy 2020 to support the development of the Electric Vehicle Interoperability Centre. 

“This will further enhance the smart grid integration between electric vehicles and infrastructure in Malaysia. This development will support both upstream (and) downstream industries and complete the demand-supply of battery-repurposing, power-generation and carbon-reduction initiatives,” he said.

Tengku Zafrul said at one megawatt per unit, MyBess is industry ready while also being viable for home use; retail services such as electric vehicle charging stations; micro-industries, businesses, and markets; and rural electrification.

“Over time, all efforts contribute to Malaysia’s efforts to achieve our net zero carbon commitment by 2050, while improving the overall quality of lives and access to key enabling facilities and amenities for the people,” he said. 

“We must capitalise on this first-to-market advantage to embed this Malaysian-grown MyBess solution in the global renewable energy supply chain. 

“By doing so, we can pave the way for Citaglobal Genetec’s Bess and many more Malaysian companies to develop this early mover advantage in the renewable energy space, which is rapidly unfolding, but looks to have a long runway ahead of it,” he said. – Bernama, April 11, 2023.