Learning Outcomes

LO$4.$ Explain current developments at IASB and MASB and the implications of changes in accounting regulation of financial statements. $($Relating to issues discussed in the course$).$

Section A $(\backslash (10\backslash \%\backslash ))$

Carbon neutrality

A key theme of the $12$ th Malaysia Plan is "advancing sustainability" which outlines its aspirations to become a carbon$-$neutral country by $2050$ and puts Malaysia as among the earliest in ASEAN to support this climate action.

Malaysia is the only Asian country to introduce a voluntary carbon market in its Budget $2022,$ setting a platform for carbon credit trading between green asset owners and other entities transitioning towards low$-$carbon practices.

The national policy on climate change, initiated in January $2022,$ covers three strategic thrusts to align collective action to deliver Malaysia's nationally determined contributions towards achieving the aims of the Paris Agreement $-$ an international treaty on climate change that aims to limit global warming.

Sustainable sukuk

In terms of green financing, Malaysia issued the world's first sovereign US$-$denominated sustainability sukuk in $2021,$ through US $\backslash (\backslash$$ $800\backslash )$ mil $10-$year trust certificates.

As of November $2021,$ Malaysia accounts for US$\backslash$$$3\mathrm{.}9$bil of issuance value or $\backslash (56\backslash \%\backslash )$ of the total ASEAN sustainable and responsible investing $($SRI$)$ Sukuk issuance.

In Budget $2022,$ the government proposed the issuance of up to RM$10$ billion of sustainable sukuk for eligible social or environment$-$friendly projects.

Excerpt from "How Malaysia Score in ESG",

The Star, $2$ August $2022.$