Initiative to spur growth of Malaysia’s Sustainable Financing Ecosystem

Capital Markets Malaysia (CMM), an affiliate of the Securities Commission Malaysia (SC), recently 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.

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.