STRATEGIC FRAMEWORK ON A NATIONAL ACTION PLAN ON BUSINESS AND HUMAN RIGHTS FOR MALAYSIA Sustainable development requires the fulfillment by the private sector of their corporate responsibility to respect human rights, and the State’s provision of an appropriate regulatory and policy environment for the private sector to do so. 95. Also of regional relevance are MDBs that have operations in ASEAN. Malaysia is a member State of the World Bank Group (WBG) and the Asian Development Bank (ADB), and has recently signed on to join the newly established Asian Infrastructure Investment Bank (AIIB). The WBG and ADB are providing, and the AIIB will likely provide, financing and support for development and investment projects and other business-related activities in ASEAN. 96. MDBs may be linked to adverse business-related human rights impacts through their support for economic development projects. Accordingly, MDBs such as the WBG, the ADB, the European Bank for Reconstruction and Development, the African Development Bank and the Inter-American Development Bank have binding environmental and social safeguard policies and an independent accountability mechanism to address environmental and social risks and harm caused by the projects they fund. Member States of MDBs, given their role as shareholders of these MDBs, have a duty to ensure that MDBs exercise due diligence to prevent and remedy adverse human rights impacts connected to the projects they support. 97. Recommendations. The Commission therefore recommends that: i. The Government take steps to implement Guiding Principle 10 through its membership in multilateral institutions that deal with business-related issues ii. The Government, especially in its role as Chair of ASEAN in 2015, demonstrate leadership in integrating business and human rights into the ASEAN agenda, including by (i) endorsing the Guiding Principles and encouraging other ASEAN Member States to do likewise, (ii) developing an NAP that implements the Guiding Principles on business and human rights and encouraging other ASEAN Member States to do likewise, (iii) including action points based on the Guiding Principles in the ASEAN Community’s Post-2015 Vision, and (iv) developing regional mechanisms to address business and human rights issues with regional implications. iii. The Government commit to ensuring respect for human rights in the activities of the MDBs it is a member of, and take effective steps to do so. Importantly, the Government should ensure that the AIIB has adequate environmental and social safeguards and an accountability mechanism, in line with the best practices of other MDBs, especially in view of concerns that the AIIB will have diluted environmental and social safeguards. 97 Relevant Government bodies include: MOFA, MITI 30