By Dr Ahmad Rais Mohamad Mokhtar

The National Energy Transition Roadmap (NETR) is a recent ground-breaking initiative that presents substantial investment opportunities for Malaysia. This forward-looking plan, announced by the Government on July 27, not only promises economic growth but also plays a pivotal role in addressing environmental and social concerns.

The recent energy roadmap and agenda have been unveiled, heralding a new era of transformative policies by the Economy Ministry and the Natural Resources, Environment, and Climate Change Ministry (NRECC).

Dynamic shift

With the introduction of 10 far-reaching catalytic initiatives, NETR sets in motion a dynamic shift in Malaysia’s energy landscape.

Overall, the comprehensive approach of the NETR is expected to lead to the creation of 23,000 job opportunities, while significantly reducing greenhouse gas (GHG) emissions. This demonstrates the roadmap’s commitment to both sustainable social development and the preservation of our environment.

By implementing the NETR, the nation is poised to benefit from a resurgence of domestic investments and broader economic development.

Industries such as oil and gas, manufacturing, and agriculture will experience renewed interest, as the roadmap aligns with global efforts towards cleaner and more sustainable practices.

Through strategic planning and innovative policies, the NETR aims to attract investors (particularly the multinational corporations (MNCs)) and stakeholders to actively participate in shaping a greener, more prosperous future for the country.

Significant role

MNCs can play a significant part in realising the implementation of the NETR. As major players in the global economy, MNCs have the resources, expertise, and reach to contribute to the transition towards cleaner and more sustainable practices.

This aligns seamlessly with the current Malaysia MADANI agenda and the 12th Malaysia Plan.

By fostering sustainability in the supply chains and empowering immediate partners (such as suppliers or contractors), MNCs are poised to accelerate and foster Malaysia’s sustainable future.

Furthermore, the NETR envisions a society where economic growth is intricately linked with social inclusivity and environmental stewardship. At the heart of this roadmap lies the drive to embrace sustainable practices across all sectors of the economy.

Recognising the vital role of immediate partners in the supply chain ecosystems, MNCs should drive sustainability within their operations and supply chains.

Supply chain leadership

The urgency to cultivate supply chain leadership among MNCs can be explained in threefold.

First, MNCs operating in Malaysia must be able to adopt collaborative styles, recognising the varying capacities of partners (especially local suppliers) and providing support to seamlessly integrate environment and social sustainability practices.

MNCs, as leading firms, can serve as role models by actively demonstrating their commitment to environmental and social sustainability. By initiating sustainability agenda and actively engaging with immediate suppliers, MNCs can inspire these partners to align their operations with NETR's vision.

Second, MNCs’ global presence provides an excellent opportunity to facilitate knowledge exchange in sustainable practices. Sharing insights from their global operations and transferring environmentally friendly technologies can create a ripple effect of positive change throughout the supply chain ecosystems.

Third, this supply chain leadership concept reinforces the interconnectedness of leading firms and their suppliers across multiple tiers. MNCs can extend their leadership influence beyond dyadic supply chain relationships, actively fostering sustainable practices in multi-tier relationships (beyond tier-1).

By cascading sustainable practices down the supply chain, MNCs contribute to the resilience and sustainability of the entire supply chain networks.

In a nutshell, by adopting inclusive and collaborative leadership styles, showcasing visible commitment to sustainability, and aligning their efforts with national development frameworks, MNCs can pave the way for a sustainable future, facilitating nation’s economic, environmental and social growth.

MNCs have a great potential to forge a path towards a greener and more prosperous Malaysia, reflecting NETR's vision for a sustainable and resilient energy future.

-- BERNAMA

Dr Ahmad Rais Mohamad Mokhtar is Senior Lecturer at the Faculty of Business and Management, Universiti Teknologi MARA. He is also a Permanent Member of the Sustainable Supply Chain & Logistics Research Initiative Group, Universiti Teknologi MARA.