CAPITAL MARKET MUST BE READY TO FACILITATE FUND RAISING, INVESTMENTS TO SUPPORT SUSTAINABILITY, CLIMATE GOALS

KUALA LUMPUR, June 20 (Bernama) -- Malaysia’s capital market must be ready to facilitate fund raising and investments to support the government’s priorities in achieving its sustainability and climate goals, considering the huge financing requirement, says the Securities Commission Malaysia (SC).

Chairman Datuk Mohammad Faiz Azmi said that to achieve its energy transition goals, Malaysia needs RM1.3 trillion between now and 2050, which includes investments in renewable energy, energy efficiency and green mobility. 

"More must be done to ensure that investment reaches the right places with the maximum impact on sustainability. We also need to plan on how to fund climate adaptation needs to cope with increased temperatures and sea level rises," he said in his opening address at the Securities Industry Development Corporation (SIDC) Sustainable and Responsible Investment (SRI) Conference 2024 here today.

bootstrap slideshow

He said the SC is committed to regulating and developing the Malaysian capital market towards this goal by promoting and maintaining a fair, efficient, secure and transparent market environment, and at the same time encouraging the development of an innovative and competitive market.

He added that the SC has paved the way for sustainability since 2011 when SRI was embedded in the Capital Market Masterplan 2 (CMP2) as a key growth strategy.

"Under CMP3 and the SRI Roadmap, the SC continues to develop a robust SRI ecosystem in Malaysia. This includes introducing innovative capital market products to meet the diverse needs of businesses and investors.

bootstrap slideshow

"Following these, we are already observing early successes including financing Malaysia’s sustainable development goals and climate ambition. Since the release of the SRI sukuk framework, RM27.61 billion of SRI sukuk have been issued in Malaysia, including the issuance of the world’s first green sukuk for the financing of renewable projects," he said. 

Mohammad Faiz said that over the years, a wide range of projects including renewable energy, sustainable agriculture, waste management, water management, affordable housing, green buildings, education and many more, have been funded through SRI sukuk.

In addition, he said the Maqasid al-Shariah Guidance Islamic Capital Market was introduced last November, envisioned as the shariah plus standards to avoid harm and to fortify its impact and positive contributions to society and humanity. 

"Malaysia has also witnessed a significant surge in sustainable investments. As of December 2023, there were 68 SRI funds with a net asset value of RM7.7 billion, a significant increase from just seven SRI funds in 2020 at RM1.46 billion," he said.

To enhance understanding and knowledge in sustainability, Mohammad Faiz said the SC has participated in local and international events as part of knowledge sharing and to further enhance the profiling of SRI. 

He said these initiatives are crucial to accelerate the growth and development of a facilitative SRI ecosystem in Malaysia.

"SIDC, the capacity building arm of the SC, is at the forefront in the capital market to support the growth in sustainable and responsible investment with learning and development solutions, professional certification and qualifications, continuous education and capacity building programmes.

"Currently, SIDC has 47 titles of programmes on sustainability and SRI, catering to the different needs of organisations in the capital market," he said.

-- BERNAMA