Digital Solutions Are Key to Combating Climate Change

I believe that there is increasing evidence that climate change could pose a significant risk to Malaysia. We are not immune from what is happening in the rest of the world. A report by Swiss Re has indicated that Malaysia could experience economic growth 20% below expectations by 2050, even if the global temperature increase is limited to 2°C.

Certainly, efforts to combat the effects of climate change are not new to Malaysia.

Digital action equals climate action

Through the new national strategic initiative, Malaysia Digital, MDEC will play a pivotal role in positioning the digital economy at the heart of the nation's shift to more sustainable economic practices. The role of the private sector in championing sustainable practices is crucial to achieving this in two main ways.

Firstly, the World Economic Forum recognises the important role the digital economy must play in addressing climate change. Digital tech solutions have the potential to reduce GHG emissions by up to 15% by 2030, including through solutions in energy, manufacturing, agriculture, buildings, services, transportation, and traffic management.

This corresponds to more than the current carbon footprints of the European Union and the US combined.

Undoubtedly, digitalisation is already transforming the global economy and unleashing powerful forces in every industry. But I believe that the digital sector can take the pace of change to the next level through the Fourth Industrial Revolution – including technological advances such as 5G, the Internet of Things (IoT) and artificial intelligence (AI). 

Secondly, although the digital sector is already working to reduce its emissions, tech businesses must make even greater efforts. Although digital solutions are often cleaner than the alternatives, tech companies are still responsible for significant carbon emissions and need to do more to mitigate these. 

Local companies adopting renewable energy:

• YTL Green Data Center Park in Johor 
• Telekom Malaysia secures a Green Electricity Tariff (GET) from TNB for three data centres

Market drivers
Every digital economy company should play its part as sustainability is, on every level, in the best interests of business.

I am fully committed to encouraging the adoption of sustainable practices across the ecosystem and am determined to walk the talk by building ESG into our DNA. 

Externally, I recognise that businesses, particularly SMEs, may find it challenging to relate to climate change and wider sustainability issues. I am determined to enable digital companies to learn more about this critical topic quickly and take further action. I have already written to several companies on this topic and will announce a new initiative during Malaysia Digital Week in September.

MDEC cannot do this alone. Hence, I would like to urge businesses of all sizes to start raising awareness in their journey toward fighting climate change. The future we work for today will benefit the Malaysians of tomorrow. 

Environmental sustainability and digital technology are frequently mutually reinforcing and directly influencing