Budget 2024: NCCIM calls on govt to establish ESG fund to assist SMEs

KUALA LUMPUR: The National Chamber of Commerce and Industry of Malaysia (NCCIM) calls on the government to establish a RM2 billion environment, social and governance (ESG) fund to assist small and medium enterprises (SMEs) in initiating ESG commitments.

Its president Tan Sri Soh Thian Lai (pix) recommended the government to include this initiative in the upcoming Budget 2024 in line with the increasing global emphasis on ESG practices.

“Among our key suggestions were to centralise the national ESG strategy under a primary ministry; introduce an ESG assessment tool to guide SMEs in evaluating their ESG practices; and prioritise companies with strong ESG adherence for government contracts and provide financial support for eco-friendly initiatives,” he said in a statement today.

Additionally, he said NCCIM suggests measures to bolster SMEs’ global outreach, given the pivotal role of SMEs in the Malaysian economy and their low engagement with key trade agreements like the Regional Comprehensive Economic Partnership and Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

“Recommendations include enhanced collaborations with industry associations, development of a real-time tariff finder for micro, small and medium enterprises and the establishment of a central agency to address non-tariff barriers,” he pointed out.

Addressing wage disparities, he said NCCIM proposes a dedicated fund of RM200 million for the targeted implementation of the Progressive Wage Model across sectors that require urgent wage enhancements.

“This not only ensures that industries are supported as they make the transition but also guarantees that employees are compensated fairly for their contributions,” he said.

He noted an allocation of RM150 million is recommended to facilitate skills development and vocational training initiatives to enhance the synergy between wage increments and skills advancement.

On boosting the property sector, Soh said an allocation of RM150 million for equalising stamp duty exemptions across different property price bands should be considered to ensure a more balanced property market.

“An additional RM100 million is recommended to refine and promote the Malaysia My Second Home Programme, with the aim to attract more international residents,” he added. -Bernama