Accelerating the ESG Adoption with MIDA DIAF-ESG Grant – In terms of ESG practices around the world, new issuance revolves around and is renewed every day to support a greener earth and, thus, wider social welfare. Southeast Asia has been very adaptive in following the direction of where ESG is heading, including supporting sustainable practices and adoption through grants and funding. Malaysia is one of the more progressive countries in providing funding support for sustainable stewardship, administered under the Malaysian Investment Development Authority (MIDA) through the Domestic Investment Accelerator Fund (DIAF) for ESG adoption.
If you want to go deeper into the process and benefits of green grants for ESG projects—and see how Malaysian SMEs are already leveraging MIDA incentives—explore Maximising the MIDA DIAF Grant to Kickstart ESG Adoption for Malaysia SMEs. This article breaks down application tips and success strategies.
Soft launched in the MIDA Sentral, Kuala Lumpur, on April 24th 2024, the MIDA DIAF-ESG grant covers up to RM500,000 per company for Malaysian-owned Small and Medium Enterprises (SMEs) and Mid-tier companies (MTCs) who are transitioning into ESG-conscious business. The eligible expenditures covered by the grant are: 1) costs related to validation and verification, and/or certification for ESG adoption and/or tracking of carbon emissions and ESG disclosures, and 2) the first year’s subscription to the system and/or software for data collection and tracking of ESG adoption and/or GHG emissions.
For a practical guide to ESG certification requirements, expenditures covered, and reporting steps under Malaysia’s support programmes, see Malaysia’s ESG Certification Landscape: Standards and Certification Processes.
Currently, the businesses under the following sectors with at least 3 years of operations are eligible to apply:
- Manufacturing activities where the company must possess a valid Manufacturing Licence (ML) from MITI or the Confirmation Letter for Exemption from ML from MIDA in compliance with the Industrial Coordination Act, 1975; or
- Services activities that are governed/ supervised by relevant ministries/ agencies in the following areas: –
a) Hotel and Tourism;
b) Private Healthcare;
c) Private Education;
d) Oil & Gas Services;
e) Global Establishment – Principal Hub/Global Services Hub;
f) R&D Activities;
g) Logistics Services; or
h) Other Services:
- Ship Building Ship Repair;
- Green Technology Project – Business Purpose;
- Sterilisation Services;
- Digital Infrastructure; and
- Maintenance, Repair & Overhaul for Aerospace.
Convincing top management or the board to invest in ESG? Our article, How to Convince Your Boss to Invest in ESG Training—and Get It Funded, shares proven communication strategies—plus how to secure financial support for training.
AsiaESG Participated in the MIDA DIAF-ESG Grant Soft Launching
AsiaESG delegated the Malaysian team to join as exhibitors in the soft launch of MIDA DIAF-ESG. During the event, we shared with invited participants the three phases of ESG adoption strategy: Learn the Game, Comply and Build your ESG Brand. The primary concerns shared by the participants include the practical and cost-effective ways of embedding ESG practices for smaller businesses, how to convince and gather support from the Boards on ESG practices adoption, and the steps in starting the first ESG report.
Laying out an actionable ESG roadmap for your business is critical. Get sector-specific tips and see benchmarks in How Malaysian Manufacturers Can Achieve Sustainability Maturity, which details strategy from entry-level to advanced integration.
Participation in the MIDA DIAF-ESG grant is one of AsiaESG’s efforts to enhance our consultancy services for all our clients. Not only do we aspire to aid companies in creating verifiable and contextual ESG and climate-related reports, but we also offer long-term consultancy in terms of scenario analysis workshops, ESG training for Boards and staff, stakeholder engagement, ESG rating and award assistance, ESG marketing, and last but not least, securing ESG implementation and targets with or without the support of a grant is also in our services plan. This is due to our understanding of how new and constantly adapting ESG direction can overwhelm a start-up or an already-established corporation to adopt. Therefore, we aim to make your ESG journey as amicable and impeccable as possible.
For guidance on creating ESG and carbon reports that meet both regulatory and award criteria, visit Malaysia’s Evolving ESG Report Creation.
Please contact us for a full experience of amiable ESG adoption, a free benchmark analysis, a three-year ESG practices plan, and our quotation.
To understand how ESG performance links to better investment, grants, and incentives, check out Rising ESG Investing Trends and Opportunities in Malaysia.
For any enquiries or quotations about ESG Solutions, get in touch with our ESG Solutions department below:
