Sustainable and Responsible Investments

Recent interest in SRI – the concept of making investment decisions that take into account not only financial returns, but also the social and environmental impacts brought about by the investment – has also cast the net wider for fixed income issuances, and in particular, Islamic fixed income financing in Malaysia.

In Malaysia, Shariah-compliant investing represents the largest part of the country’s SRI strategy (99.33% of total sustainable investment assets in Malaysia in 2013), due to sustainability being a key common factor between Islamic finance and SRI. There are thus ample growth opportunities for fixed income fundraising within the SRI framework.

chapter6_malaysianplanSource: 11th Malaysia Plan

sri_sukukSource: Securities Commission Malaysia, 2014

ftse4goodSource: Bursa Malaysia as at November 2015