KUALA LUMPUR, July 31 (Bernama) -- Bursa Malaysia ended higher on Friday as investors continued to accumulate blue-chip stocks in line with stronger performances across most regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.50 points to 1,724.90 from yesterday’s close of 1,720.40. The benchmark index opened 0.83 of a point higher at 1,721.23, and moved between 1,715.67 and 1,730.12 throughout the day. The broader market was positive with gainers outpacing losers 707 to 402, while 547 counters were unchanged, 1,085 untraded and 56 suspended. Turnover expanded to 3.03 billion units valued at RM3.56 billion from 2.49 billion units valued at RM2.25 billion on Thursday.
Sweeping Deregulation to Ease Corporate Burdens
- The European Commission plans to reduce corporate reporting requirements by 25%, potentially saving €40 billion (US$42.06 billion) for businesses.
- The "Simplification Omnibus" package aims to loosen rules on sustainability reporting (CSRD) and supply chain due diligence (CSDDD) to help European companies compete with the U.S. and China.
Key Changes in the Proposal
1. Looser Environmental & Supply Chain Rules
- The CSRD (Corporate Sustainability Reporting Directive) will now apply only to companies with over 1,000 employees and €450 million in turnover, excluding 85% of previously covered firms.
- This reduces reporting obligations from over 50,000 companies to fewer than 7,000.
- The CSDDD (Corporate Sustainability Due Diligence Directive) will now apply only to direct suppliers, easing supply chain transparency requirements.
2. Clean Industrial Deal & Energy Plan
- New incentives for energy-intensive industries and clean tech investments.
- Faster permits for renewables to support EU's net-zero goals without excessive bureaucracy.
- Plan to lower energy costs for businesses and consumers.
Business vs. Environmental Concerns
- France & Germany support the relaxation of green rules, citing concerns over corporate competitiveness.
- Industry lobbies argue that current ESG (Environmental, Social, Governance) policies stifle business growth.
- Environmentalists and some EU lawmakers strongly oppose the deregulation, warning it could slow down climate progress and green investments.
What’s Next?
- The proposal must be approved by the European Parliament and a majority of the 27 EU member statesbefore becoming law.
- Final details could change before publication.
Summary:
- EU proposes major cuts in corporate red tape to boost competitiveness.
- Sustainability & supply chain reporting will be significantly eased, exempting thousands of companies.
- New industrial and energy plans aim to lower costs while maintaining net-zero goals.
- Environmentalists and some lawmakers oppose the move, warning of reduced climate ambition.
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