Initiative to spur growth of Malaysia’s Sustainable and Responsible Financing Ecosystem

Capital Markets Malaysia (CMM), an affiliate of the Securities Commission Malaysia (SC), today launched the Malaysian Sustainable Finance Initiative (MSFI) to facilitate capacity building, knowledge and thought leadership on sustainable financing in Malaysia.

The MSFI will support capacity development through workshops and training courses to foster greater understanding of financing solutions through the lens of environmental, social and governance factors, which take into account not only financial considerations but also impact on the environment and society.

The Initiative will also provide a digital platform for collaboration and the sharing of knowledge and expertise on new financing trends, products and services that prioritise sustainability, and societal wellbeing whilst ensuring good governance practices.

The MSFI is funded by the Capital Market Development Fund and the UK Government’s Prosperity Fund ASEAN Low Carbon Energy Programme.    

Speaking at the launch of the MSFI, Datuk Zainal Izlan Zainal Abidin, chairman of CMM said,

“The reality of the effects of climate change has made it imperative for us globally to shift towards more sustainable and responsible practices. The MSFI aims to support efforts of Malaysia’s financial sector to further develop multiple financing avenues to fund businesses and projects that are aligned to the sustainability agenda such as the UN SDGs.”

H.E. Charles Hay, British High Commissioner to Malaysia said, “As the host of the United Nations Climate Change Conference of Parties (COP26) in partnership with Italy next year, the UK is galvanising global efforts to tackle climate change by collaborating with partner countries like Malaysia. The capital market plays an important role in building a green and sustainable financial eco-system in Malaysia, and I am delighted that we are supporting this through the UK Government’s Prosperity Fund ASEAN Low Carbon Energy Programme.”

In 2019, the SC led the Malaysian Green Financing Taskforce to identify practicable solutions for the development of green financing in Malaysia. The Taskforce comprised representatives from regulators, institutional investors, investment banks, Islamic banks, asset managers and government agencies. A key recommendation of the Taskforce was the formation of a Centre of Excellence that would provide resources for capacity building and awareness. This recommendation became the catalyst for the formation of the MSFI.

The Initiative will be led by a Steering Committee chaired by the SC and includes members representing stakeholder groups within the financial sector involved with financing green or sustainable projects as well as the British High Commission Kuala Lumpur.

About Capital Markets Malaysia

As part of its developmental mandate, the SC set up CMM in 2013 to spearhead both the local and international positioning and profiling of the Malaysian capital market with its wide range of conventional and Islamic products, supported by a strong governance infrastructure. CMM profiles the competitiveness and attractiveness of the various segments of the capital market to increase participation and enhance opportunities for capital market intermediaries, issuers and investors. 

About the ASEAN Low Carbon Energy Programme

The ASEAN Low Carbon Energy Programme(LCEP) is an overseas development assistance programme of the UK Government’s Prosperity Fund. In close collaboration with local and international entities from both the public and private sectors, the programme will help ASEAN harness the benefits from the deployment of low carbon energy by leveraging the UK’s extensive and proven expertise in green finance and energy efficiency.

For media queries, please contact:

Capital Markets Malaysia

Farina Farid

Head of Communications

Mobile: +6012 6810463

Office: +603 6204861

E-mail: FarinaF@seccom.com.my

British High Commission

Raymond Chua

Head of Communications

Mobile: +6012 3088043

Office: +603 21702200

Email: Raymond.Chua@fco.gov.uk