To meet energy transition goals, Malaysia needs RM1.3 trillion by 2050, including investments in renewable energy, energy efficiency, and green mobility, said SC chairman Faiz Azmi. (Bernama pic)
PETALING JAYA: Malaysia’s capital market must be ready to facilitate fundraising and investments to support the government’s priorities in achieving its sustainability and climate goals, considering the huge financing requirement, said the Securities Commission Malaysia (SC).
Chairman 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 rising sea levels,” he said in his opening address at the Securities Industry Development Corporation (SIDC) Sustainable and Responsible Investment (SRI) Conference 2024 today.
He said 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,” he said.
Following these, he said SC has already observed 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.
“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, Faiz said SC has participated in local and international events as part of knowledge sharing while enhancing 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 of SRI.
“Currently, SIDC has 47 titles of programmes on sustainability and SRI, catering to the different needs of organisations in the capital market,” he said.
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