Launch of The Edotco Sustainability Blueprint and Report 2021

KEYNOTE ADDRES

YB SENATOR TENGKU DATUK SERI UTAMA ZAFRUL AZIZ
MINISTER OF FINANCE MALAYSIA

LAUNCH OF THE EDOTCO SUSTAINABILITY BLUEPRINT AND REPORT 2021

7 JULY 2022 | BAYSWATER @ KLCC

SALUTATIONS

Bismillahhirahmannirrahim

Yang Berusaha Tuan Mohamed Adlan Ahmad Tajudi
Chief Executive Officer of edotco Group

Yang Berbahagia Tan Sri Shahril Ridza Ridzuan,
Chairman of Axiata Group

Yang Berbahagia Tan Sri Salim Fateh Din,
Interim Chairman of the Malaysian Communications and Multimedia Commission

Madam Karima El Korri,
UN Resident Coordinator Malaysia, Brunei and Singapore

Board members and senior representatives of edotco Group,

Members of the media,

Distinguished guests,

Ladies and gentlemen

Assalammualaikum Warahmatullahi Wabarakatuh and a very good morning.

INTRODUCTION

1. Firstly, I’d like to thank edotco Group for inviting me to this momentous event. I’m thrilled to see edotco – the Malaysia-born, region-leading telecommunications infrastructure services company energising its efforts towards better ESG practices.
   
   
2. Together, with the pledges made by the Government and supported by Axiata Group, Khazanah Nasional and KWAP, our nation remains united in our sustainability commitment, as we accelerate Malaysia’s transition towards an advanced economy – and one that promises shared prosperity for all.

TELECOMMUNICATIONS – LEADING THE SUSTAINABILITY CHARGE

Ladies and gentlemen,

3. The time for strong action towards sustainability is now. In handing over the reins of the future to our children and grandchildren one day, we must make bold, innovative decisions today.
   
   
4. Make no mistake. This is our responsibility as stewards of future generations. And, the responsibility has become no less heavy as we navigate uncharted territories, beset in a post-pandemic new normal, with extreme weather events and technological disruption. Today, we must grow responsibly and sustainably.
   
   
5. Technology is – and has always been – the great enabler. We are heading into a new socio-economic frontier that is, more than ever before, dependent on technology. Critical to delivering the innovation needed to enable, grow and sustain this vision of the future is the telecommunications sector, and its infrastructure will serve as the nodes to deliver transformation.
   
   
6. Recent events have shown just how important connectivity really is. It kept societies connected during the COVID-19 pandemic and – more recently – allowed emergency responders to communicate with each other and communities during the recent floods across the country. As we redouble our efforts to mitigate and manage crises, as well as tap into new opportunities, connecting the nation remains paramount for us to keep up with our regional peers in sectors such as education, manufacturing, modern farming and public health.
   
   
7. To that end, Malaysia has been accelerating its connectivity agenda by, among others, ensuring there will be 5G coverage in 80% of populated areas by end 2024. Nonetheless, like our regional neighbours, we must also be cognisant of the more adverse environmental effects of unchecked digital development.
   
   
8. The ICT sector is responsible for about three to four percent of global CO2 emissions – that’s twice the size of even the aviation sector. Much of this was influenced by the recent pandemic, due to the increase in data to power digital applications, and will only increase moving forward.
   
   
9. Concurrently, we also recognise that there is a pressing need to bridge digital divides across nations, and rural-urban societies. Innovation must continue to flourish for all to reap its benefits – and connectivity is the blood that gives it life. Therefore, we must look at how we can work together to realise shared benefits, without adversely impacting the environment.
   
   

COMPANIES CAN ACCELERATE GOVERNMENT’S ESG COMMITMENTS

Ladies and gentlemen,

10. The Government is steadfast in its commitment to nurturing development projects and programmes that prioritise environmental, social and governance (ESG) principles or are aligned to the UN’s Sustainable Development Goals (SDGs).
    
    
11. This focus underscores the 12th Malaysia Plan’s goal of revitalising the country’s socioeconomic development, with long term sustainability and prosperity serving as the foundation for improving the nation’s wellbeing.
    
    
12. Key priorities under the 12th Malaysia Plan include reducing greenhouse gas emissions intensity to 45% of GDP by 2030 and for Malaysia to be carbon-neutral by 2050. To complement this, a comprehensive National Energy Policy will provide the blueprint on achieving Malaysia’s carbon neutrality goals.
    
    
13. On the social front, the 12th Malaysia Plan envisions average monthly household income to reach 10,064 ringgit and the economic gap between central and east Malaysia region to narrow by 2025.
    
    
14. These represent a few of many ambitious goals and initiatives that demonstrate Malaysia’s commitment to ESG principles and the SDGs, with the overarching objective of ensuring the nation’s environmental sustainability and socio-economic resilience.
    
    
15. To further strengthen the ESG effort, the Government has placed various sustainability strategies and measures under Budget 2022 that will support our longer-term ESG-based aspirations, which include:
    
    
1. Firstly, strengthening sustainability related financing and investments, which complements the UN Sustainable Development Goals (SDGs) by coordinating initiatives and programmes that incorporate ESG elements. This is carried out in a three-pronged approach:
   
   
• Firstly, tagging all programmes and projects under the Government’s development expenditure to the SDGs in our annual budgets.
• Secondly, boosting and attracting low carbon investments via the development of a Voluntary Carbon Market (VCM) before transitioning to an Emissions Trading Scheme (MyETS). This is further complemented by efforts to establish the National GHG Centre to improve transparency in climate change and data reporting.
• Thirdly, improving monitoring and disclosure measures, including issuance of a Task Force on Climate-related Financial Disclosures (TCFD) Application Guide for Malaysian Financial Institutions early this year. Following TCFD’s recommendations, Bursa Malaysia has proposed changes to its Listing Requirements aimed at improving sustainability disclosures for listed companies across all sectors.
  
  
2. MoF’s second main strategy in achieving this ESG agenda is to empower SMEs through targeted financing measures so SMEs can, for example, embrace sustainable and low-carbon practices. Through the GLIC/GLC ecosystem, we can see how SMEs can be a key building block in achieving many ESG aspirations quickly, and our net zero goal by 2050. In complementing this effort, we recently launched the Principles of Good Governance which will ensure that GLICs and SMEs are prepared to meet the growing demands of the global market.
   
   
3. Our third strategy is to institutionalise ESG measures. The establishment of Malaysia Sustainable Development Goals Trust Fund (MySDG Fund) earlier this year in collaboration with United Nations is one such example of our commitment to incorporate SDG principles into Malaysia’s national development plans and policies.
   
   
4. Finally, as part of MoF’s strategy to encourage the development of green and social financing, the Government will issue up to 10 billion in ringgit denominated Sustainability Sukuk with proceeds channelled to eligible social or environmental projects.
   
   
16. We need to ramp up the implementation of all these strategies because we can no longer afford to ignore the key structural issues that were exacerbated by the pandemic, and the many climate change-related national disasters that have beset our nation and causing unnecessary loss of lives and property, year-in, year-out. On the latter, we have been issued sufficient grim reminders in the form of epic floods hitting many parts of the country last December, and then most recently in Baling, Kedah.
    
    
17. These are a few of the reasons why the Government has reiterated its commitment to prioritise ESG-focused development programmes and projects in the 2023 Pre-Budget Statement. These ESG-focused priorities are also key enablers for Malaysia to transition from the current recovery phase to longer-term reforms as outlined in the 12th Malaysia Plan.
    
    
18. To that end, Budget 2023 features a sharper focus on holistic development and well-being, facilitated by improved income opportunities for all. This is central to achieving a more inclusive and sustainable development for Keluarga Malaysia.
    
    
19. In our effort to lay strong foundations in ESG, we remain cognisant that transformation cannot be done through isolated initiatives. Lasting and sustainable progress can only be achieved when the whole nation – comprising both the public and private sector - rallies behind a common sustainability vision.
    
    
20. In that regard, it is heartening to see Malaysian companies not only embracing the sustainability agenda but incorporating ESG into their core strategies, operations and CSR initiatives. Specifically, I am thrilled that today’s launch complements the sustainability principles and efforts of the wider GLC ecosystem, including Khazanah Nasional’s and KWAP’s Sustainability Frameworks, as well as EPF’s Sustainable Investment policy.
    
    
21. As a Board Member of Khazanah Nasional – which is also a shareholder of edotco – I am very proud to see the lofty heights that edotco has reached today, including its recent expansion into the Philippines and Indonesia. I am thrilled to see its growth over the last ten (10) years, and I am sure the nation is equally proud to witness how edotco has helped fly the Malaysian flag high in Asia.
    
    
22. Growth and lasting change always begin at the top. Therein, I am glad that edotco’s management has been collaborating with various stakeholders throughout its sustainability journey. This includes strong support from the Board which has allowed edotco to halve its carbon footprint by as much as 58% on average per site, while also becoming one of Asia’s standout Unicorns.
    
    
23. To the Board and management of edotco, congratulations on your ESG/sustainability leadership for tower companies in Asia. It cannot come at a more pressing time, and may such leadership and your sustainability journey inspire others to embark on their own similar efforts.

CLOSING REMARKS

Ladies and gentlemen,

24. Last but not least, I would also like to congratulate edotco on the establishment of its Sustainability Blueprint and Report. On behalf of our nation, I would like to express full support for its goal of accelerating digital transformation across Malaysia and the wider region, and doing so equitably, responsibly and sustainably.
    
    
25. As a homegrown Asian organisation, which employs thousands of people in Malaysia and beyond, your leadership will positively impact millions of people in the region. As we race towards sustainable development and growth, a just transition is needed to ensure all stakeholder interests are met, and to mitigate any unintended consequences.
    
    
26. Therein, I am pleased that edotco’s goals align fully with Malaysia’s objectives and global ESG benchmarks.
    
    
27. Finally, I am confident that edotco will continue to champion both innovative transformation and sustainability as we work to achieve a Net Zero future.
    
    
28. With that, dan dengan lafaz Bismillahirrahmanirrahim, I hereby launch edotco’s Sustainability Blueprint and Report.

Wabillahi taufiq wal hidayah Wassalamualaikum warahmatullahi wabarakatuh.