Launch of the project “Environmental-economic accounting for evidence-based policy” in Malaysia

YBhg Dato' Sri Dr. Mohd Uzir Mahidin. Chief Statistician, Department of Statistics Malaysia (DOSM)

Ms. Rikke Munk Hansen, Officer-in-charge, UN ESCAP Statistics Division

Representatives from the Government of Malaysia, UN colleagues,

Ladies and Gentlemen, a very good morning to you all.

It is both a privilege and a pleasure to offer opening remarks on behalf of the United Nations in Malaysia at the launch of this project – Environmental economic accounting for evidence-based policy, which is being undertaken in concert with the Department of Statistics.  And while this project includes several countries in the Asia-Pacific region, I want at the outset to recognize Malaysia - as a leader in the development of environmental economic accounting within its System of National Accounts.

This progressive approach has also been reflected in the wider policy space, and environmental issues remain politically salient in Malaysia.  As an upper middle-income country rapidly approaching high income status, the Government has come to prioritize stewardship of the land and oceans, has committed to bold actions on climate change. 

But we also must recognize that the COVID-19 pandemic has changed the landscape the world over.  And inevitably environmental concerns have become somewhat sidelined in the news, and within public policy discussions.

Climate change, biodiversity loss and general derogation, however, remain significant challenges for a country like Malaysia.  It is increasingly being recognized, particularly in the run-up to the COP 26 meetings, that building back better during the recovery from COVID-19, must include an explicit focus on environmental sustainability. Moreover, it is important to recognize that the pandemic additionally, provides an opportunity for bold change. This is first because it has freed up the necessary policy space, and second because stimulus spending and recovery finance provides the resource pool that can be used to for transformative green investment. 

The System of Environmental-Economic Accounting (SEEA) offers an integrated  framework for identifying the impact of climate change, and the true economic costs of human activity through consumption, production, and the use of natural capital.  It allows for the estimation of economic performance after accounting for environmental impacts. Crucially, the framework also allows for distribution analysis.  And it is all too often forgotten that environmental impacts disproportionately affect the poor and vulnerable, especially those who live and work in risk prone areas, and those who depend on natural resources for their livelihoods.

Effective decision making depends on sound and internationally comparable statistics and data- This is vital in identifying trade-offs, complementary policy choices and accelerator actions. The SEEA framework can therefore provide countries like Malaysia with the mechanisms and tools to plan and deliver the SDGs, the wider 2030 agenda, and Paris Agreement commitments.

I now come to the project at hand.  We will hear more later this morning, but foremost this intervention  will seek to build on Malaysia’s existing approach enabling compilation of further national accounting tools, notably land resource accounts, and better linking of these to Malaysia’s policy priorities, for example those set out in the forthcoming 12th Malaysia Plan.  In addition, as Malaysia emerges from COVID-19 pandemic, the project is highly relevant to national recovery planning, and it can play a pivotal role in development of Phase 2  of the SDG Roadmap which is currently being led by the Economic Planning Unit. 

Specifically, the project will strengthen institutional and technical capacity; update implementation to meet the latest best practices; and help produce the requisite accounts on a regular basis and in a more disaggregated manner.  The project is very much a collaborative effort between the Department of Statistics Malaysia (DOSM), the UN Statistics Division and the Economic and Social Commission for Asia and the Pacific. Additionally, the project will actively reach out to agencies within UN Country Team, especially with those working in relevant areas with the Government.

In turn, project delivery will emphasize the importance of multi-stakeholder work at national and international levels. Clearly, to ensure that best use is made of these innovative tools, policymakers, data providers and statisticians must communicate and collaborate.  This requires reaching out to all government ministries and agencies, and to academia and civil society. And I am encouraged to see the participation of so many stakeholders in this launch today. 

Finally, at the international level, as a regional intervention, the project offers much scope to engage with neighboring countries in the development of SEEA tools.  This will  bring prestige to Malaysia, as a leading country in this field and allows for its greater participation in global reporting and knowledge sharing. 

Ladies, and gentlemen, I will close there. I wish DOSM and all Government partners well in implementing this project.  We within the UN Resident Coordinator’s Office, under the leadership of the newly arrived Resident Coordinator Ms Karima El Korri, look forward to engaging with, and supporting this work in any way we can.

Thank you and best wishes.