30 Jan, 2024

MAS Sets New Standard with Digital Platform for ESG Data Collection

The Monetary Authority of Singapore launched a new digital platform called Gprnt (pronounced as Greenprint), which aims to simplify how the financial sector collects, access, and acts upon environmental, social, and governance (ESG) data.ESG refers to a set of corporate governance standards that reflect a company’s impact on environmental, social, and governance externalities. ESG indicators are used by both consumers and investors seeking to make sustainable and socially conscious decisions. Investors of all stripes are increasingly using them as a means of assessing a company’s risk exposure and growth opportunities.Gprnt will be fully implemented in the first quarter of 2024.Focus on ESG factors for businesses in Southeast Asia remains at a relatively early stage compared to global markets. However, there has been increasing awareness and adoption of ESG-related policies across regional governments. As such, Singapore stands at the forefront in Asia’s sustainable transition. The government is developing a sustainable financial system that can aid businesses in achieving their ESG targets.What are the key functionalities of Gprnt?Gprnt aims to help businesses automate their ESG reporting.Gprnt will integrate the digital systems employed by businesses in their daily activities such as bookkeeping, payment gateways, and networks for artificial intelligence. These integrations will allow businesses to consent to the release of data via application programing interfaces (API) and enable Gprnt to compute their sustainability metrics.Gprnt will compute source data into ESG-related outputs for business reports and corporate references. The platform will use intelligent document processing to extract the data from files uploaded by users. As such, the platform will cater to the mapping of sustainability metrics across key global reporting standards automatically generate basic sustainability reports for businesses, and reduce their corporate costs.This will reduce duplicate reporting for businesses that adhere to different sustainability reporting standards if their activities span multiple markets. Moreover, businesses can share their ESG reports with financial institutions, government bodies, and industry partners, among others.Importantly, Gprnt can fully support the ESG reporting needs of small and medium enterprises (SMEs). The platform’s reporting solutions and integration with government bodies such as the Accounting and Corporate Regulatory Authority (ACRA), the Enterprise Singapore, and the Infocomm Media Development Authority (IMDA) are vital in assisting SMEs in commencing their sustainability reporting journeys.Expanding climate reporting to more industriesThe Singapore Exchange (SGX) will begin mandating more industries to submit environmental, social, and governance (ESG) reports for the 2024 financial year. For 2023, climate reporting was made mandatory for businesses engaging in the financial, agriculture, energy, food, and forest products industries. This has now been extended to the materials buildings, and transportation industries for 2024.What is included in the sustainability report?The sustainability report must include the following components:Material ESG factors;Climate-related disclosures;Policies and targets;Sustainability reporting framework;Board statement and governance structure for sustainability practices.ConclusionIn conclusion, the launch of the Gprnt platform by the Monetary Authority of Singapore marks a significant step towards streamlining and enhancing ESG reporting processes for businesses in Southeast Asia. By providing a digital solution that automates data collection, computation, and reporting, Gprnt not only simplifies the complex task of ESG reporting but also enables businesses to align with global sustainability standards more efficiently.Singapore’s proactive approach to promoting sustainable practices and its commitment to developing a robust financial ecosystem underscores its leadership role in Asia’s sustainable transition. With the expansion of climate reporting mandates to additional industries by the Singapore Exchange, there is a clear signal of the growing importance placed on ESG considerations across sectors.

25 Jan, 2024

Singapore and Malaysia Plan Joint Special Economic Zone in Johor State

Singapore and Malaysia are partnering to create a special economic zone (SEZ) in Malaysia’s Johor state (JS-SEZ), adjacent to the Singaporean border. The joint effort is designed to foster stronger business connections and improved connectivity between the two countries, as the region combats a global economic slowdown. An MOU was signed between the leaders of the two countries on January 11 with a full-fledged agreement expected to be signed at the end of 2024.The JS-SEZ is expected to attract more multinational firms into Johor as part of their risk-management strategy caused by U.S.-China trade tensions.BackgroundIn late October, the Malaysian Prime Minister, Anwar Ibrahim, conducted a two-day leaders’ retreat with Singaporean Prime Minister Lee Hsien Loong in Singapore. The 10th Singapore-Malaysia Leaders’ Retreat marked a significant milestone in their bilateral relations, which the two prime ministers aimed to leverage for mutual economic benefits. The occasion was also their first such bilateral interaction after the pandemic.Key goalsThe planned SEZ seeks to enhance the movement of goods and people across the Johor-Singapore Causeway, while also bolstering the overall ecosystem of Iskandar Malaysia and Singapore. Established in 2006, Iskandar Malaysia is the main southern development corridor in Johor. The Johor-Singapore Special Economic Zone will tap into the complementary strengths of both countries to foster economic connectivity by improving cross-border flows of goods, investments, and people. – Joint Statement, 10th Singapore-Malaysia Leaders’ RetreatLocation advantageThe Johor-Singapore Special Economic Zone is set to be established within Malaysia’s Iskandar region (formerly the Iskandar Development Region and South Johor Economic Region), with the government actively promoting it as an attractive investment destination aimed at bolstering the electronics, healthcare, and financial industries as well as business-related services.Malaysia currently has five investment corridors (a new type of SEZ): the East Coast Economic Region (ECER), Iskandar Regional Development Authority (IRDA) for Iskandar Malaysia in Southern Johor, and the North Corridor Implementation Authority (NCIA) for the North Corridor Economic Region (NCER).Meanwhile, the sectors of focus in Malaysia’s existing development corridors are:East Coast Economic Region: Tourism, oil and gas, manufacturing, agriculture, and educationSabah Development Corridor: Agro-based industry, tourism, logistics, and manufacturingSarawak Corridor of Renewable Energy: Resource-based industry, energy, tourismNorther Corridor Economic Region: Modern agriculture, manufacturing and design, tourism, logistics, education, and healthImproving transport linkagesSingapore and Malaysia have started construction on a light-rail link connecting Singapore and Johor Baru. The rail is expected to reach a capacity of 10,000 passengers per hour and significantly reduce the congestion on the current Johor-Singapore causeway – one of the world’s busiest land crossings. The US$2.2 billion project is expected to be completed in 2026.Major trade and business partnersIn 2022, Singapore and Malaysia ranked as each other’s second-largest trading partners, as their bilateral trade volume reached US$83.53 billion.Additionally, during the same year, Singapore stood out as one of Malaysia’s primary sources of foreign direct investment (FDI), contributing 8.3 percent to Malaysia’s total investments for that period.The right incentives will be key to the success of the JS-SEZThe success of the JS-SEZ will depend on the type of incentives issued by the economic zone and how these policies are implemented. Often, special economic zones issue incentives that are not aligned with the requirements of businesses.The leaders of both countries have mentioned that there will be special tax incentives as well as bonded warehouses. Further, both governments are exploring passport-free travel for travel between the two countries under the JS-SEZ. This will be facilitated through a QR-based clearance system qt land checkpoints on both borders.