PETALING JAYA: Malaysia must strike a careful balance between embracing data centre investments and ensuring its green transition goals are met, said member of parliament for Setiawangsa and former natural resources and environmental sustainability minister Nik Nazmi Nik Ahmad.

Speaking at the Renewable Power, Digital Growth: Malaysia’s Sustainable Edge conference, organised by the Malaysian Institute of Management (MIM) in collaboration with the Konrad-Adenauer-Stiftung (KAS) Malaysia, Nik Nazmi said the country must adopt a pragmatic approach towards the rapidly growing digital economy.

“When people question Malaysia’s decision to embrace data centre investments, my answer has always been that we have to be practical.

“We should not simply welcome every data centre, but ensure they align with our net zero targets and pay fair tariffs for the high energy and water they consume,” he said.

Nik Nazmi noted that the government’s recent move to shift from blanket to targeted subsidies was crucial in ensuring fairness and efficiency.

“If you are high consumers of energy, you should pay higher rates, while subsidies should go to SMEs, households and the B40 and M40 groups,” he said, adding that a just transition is vital to maintain public support for sustainability policies.

He stressed that sustainability must be communicated in simpler terms to prevent backlash against environmental, social, and governance (ESG) initiatives.

“If we don’t tell the story right, the public may see ESG as making life more difficult or more expensive,” he said.

Nik Nazmi also revealed that Malaysia’s climate change policy is expected to be tabled in Parliament in October.

“We have already passed the Energy Efficiency and Conservation Act, and next year we will launch a national adaptation policy, because climate change is already happening before our eyes,” he added.

Despite contributing only 0.7% of global emissions, Nik Nazmi said Malaysia remains committed to achieving net-zero by 2050.

He emphasised the role of youth in shaping policies.

“Young people are more aware than the older generation. What we need is to harness their energy to drive more ambitious policies,” he said.

The forum gathered over 250 delegates from government, industry and civil society to discuss synergies between renewable energy and digital innovation.

In her opening address, MIM president Datuk Yeoh Soo Min said Malaysia’s sustainable edge lies not only in technology but also in leadership.

“Renewable power expands our possibilities, and digital growth opens new frontiers. But Malaysia’s sustainable edge will not come from technology alone.

“It will come from people, from leaders who can bridge climate and commerce, balance profit with purpose and turn vision into action,” she said.

Yeoh emphasised the importance of inclusive and courageous leadership.

“Because programmes without leadership are just meaningless. Leadership is what gives them direction and impact,” she added.

“Every session today is not just about listening, but deciding how you, your organisation and your community will contribute to Malaysia’s green and digital future.”

The event also saw the launch of the “Speak ESG” glossary by the UN Global Compact Network Malaysia & Brunei executive director Faroze Nadar.

The resource aims to simplify complex ESG terminology and make it more practical for businesses.

“Too many acronyms make sustainability confusing, sometimes even inaccessible. That is why we built this glossary, to make ESG terms more understandable, relatable and applicable,” Faroze said.

Developed in collaboration with Universiti Malaya, Bursa Malaysia and several industry partners, the glossary includes 80 essential ESG terms with real-world examples.

It is available in English, Bahasa Malaysia and Chinese, aligning with both local and global standards.

The conference featured plenary sessions and specialised tracks with experts from YTL Data Centre, Climate Governance Malaysia, the Embassy of Japan and the UN Global Compact Network, covering low-carbon energy systems, regional collaboration and skills development for a just transition.