KUALA LUMPUR, Sept 28 (Bernama) -- Bursa Malaysia ended marginally lower on Monday amid selling activity as the market lacked fresh catalysts to spur investors’ buying interest, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.60 points, or 0.09 per cent, to 1,670.02, from Friday’s close of 1,671.62. The benchmark index, which opened 0.93 of-a-point higher at 1,672.55, moved between 1,668.61 and 1,674.11 throughout the trading session. Market breadth was negative as losers surpassed gainers 748 to 388, while 517 counters were unchanged, 1,271 untraded and 91 suspended. Turnover slipped to 3.11 billion units worth RM2.40 billion from 4.07 billion units valued at RM2.69 billion on Friday.
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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