Sabah-Japan ESG Forum calls for Japanese investment to promote innovation and sustainability
(Malaysia, Japan) From Kuala Lumpur
On June 21, the Sabah-Japan Environmental, Social and Corporate Governance (ESG) Forum was held in Kota Kinabalu, the capital of Sabah in East Malaysia. Organized by Mitsusho, a Malaysian company that provides consulting on decarbonization and ESG management, and supported by the Sabah state government, the forum was attended by approximately 60 people. Approximately 20 Japanese companies also participated, mainly from the Malaysia Peninsula.
The organizer introduced that there is a deep history between Sabah and Japan that goes back more than 100 years, such as the fact that there are roads with Japanese names in the southern city of Sabah, Tawau. Sabah is also a region that is taking cutting-edge initiatives in the ESG field, such as forest conservation and educational support, and from this perspective, the forum was held to create business opportunities with Japan based on Sabah's ESG potential.
Photo: Event board designed with Mount Fuji and Mount Kinabalu, both World Heritage sites (photo by JETRO)
Sabah Minister of Industrial Development and Entrepreneurship, YB Datuk Phoong Jin Zhe, pointed out that Japan accounts for just under 10% of Sabah's total trade, and that the two regions have a strong economic relationship. As the world shifts to a green economy, he said, "Japan, which is geographically close to Sabah, can play an important role in improving the state's sustainability," and "cooperation between the two regions is key to promoting innovation and sustainability by utilizing Japan's expertise and technology," and stressed the importance of cooperation with Japan, saying the state can provide a competitive environment for Japanese companies.
Abundant resources and locational characteristics are strengths, and expectations are high for Japanese companies to expand their business.
Asuene, a sponsor of this forum and which signed a memorandum of understanding with organizer Mitsusho in April 2024 (see JETRO's research report "Products and services catalogue of Japanese companies contributing to decarbonization in Malaysia"), mentioned that Sabah has set the renewable energy ratio in its power supply at 80% by 2050, exceeding the federal government's target, and introduced the company's efforts to visualize carbon emissions.
Invest Sabah, an investment promotion agency, emphasized the high potential of Sabah, including its strategic location, including its proximity to Japan, abundant natural resources, the state's investment support functions, and the presence of excellent human resources (see also JETRO's "Investment Environment in East Malaysia PDF File (1.5MB)"). In particular, it expressed expectations for investment in manufacturing, infrastructure, the blue economy (See Note), and agriculture. In addition, SabahNet, a government-affiliated company under the Ministry of Science, Technology and Innovation, explained the state's focus areas in the digital field, such as drone tech, the Energy Commission of Sabah (ECoS) explained the Sabah Energy Roadmap and Master Plan 2040 PDF file (link to external site, opens in new window), and the Ministry of Industrial Development and Entrepreneurship Sabah (MIDE) explained palm oil biomass industry policy.
Participating Japanese companies commented that "Sabah has unique policies and systems that differ from those of the federal government," and "information about Sabah is limited. It was good to learn about specific efforts in various fields, including energy."
Participants listening to a lecture by Invest Sabah (provided by organizers)
(Note) Blue Economy is a concept that aims to achieve both marine environmental conservation and economic development through the sustainable use of marine resources.
Itsuko Ago
(Malaysia, Japan)
News Link as Below