Malaysia’s leadership in green financing key to attract investment
KUALA LUMPUR: Malaysia’s leadership in green infrastructure finance will be a key element in attracting investment capital to fund sustainable development in the region, said Securities Commission (SC) Malaysia chairman, Tan Sri Ranjit Ajit Singh.
He said Malaysia had been playing an important role in the convergence of Islamic and green financing, following the country’s issuance of the world’s first green sukuk last year.
“We are expecting more during the year, especially after five green sukuk issuances under the SC’s Sustainable and Responsible Investment (SRI) sukuk framework, worth a total of RM2.4 billion,” he said in his keynote address at the SC-World Bank-International Organisation of Securities Commissions (IOSCO) Conference yesterday.
Themed, “Harnessing Islamic Finance for a Green Future”, the two-day conference attracted more than 200 industry practitioners, policymakers and Islamic finance experts.
According to a study by the United Nations Environment Programme and DBS Bank Ltd, the demand for additional Asean green investment from 2016 to 2030 is estimated at US$3 trillion (US$1=RM3.98).
“The Asean region sees development in this area, with the introduction of the Asean Green Bond Standards (GBS) last year via the Asean Capital Markets Forum, which standardised rules for green bonds across Asean.
“Asean stands to see significant growth in the adoption of GBS, and Malaysia leads the way in the adoption, with PNB Merdeka Ventures Sdn Bhd raising RM690 million to-date from its 15-year secured green sukuk programme worth up to RM2 billion to fund an 83-storey building,” he said. — Bernama
Source: Borneo Post Online