How does Malaysia position itself as an Asian hub for green financing?

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Malaysia Leverages Islamic Finance Leadership to Position as Asian Green Financing Hub

Malaysia is strategically positioning itself as a leading Asian hub for green financing and sustainable investment by leveraging its established leadership in the Islamic capital market. This approach centres on utilising Islamic finance principles, particularly through the issuance of green sukuk, as an innovative mechanism to fund initiatives aligned with the United Nations' Sustainable Development Goals.
Championing Green Sukuk for Sustainable Development Goals

Malaysia has actively promoted the use of Islamic finance instruments, specifically green sukuk, as a novel method for financing projects that support the UN's Sustainable Development Goals. This has been a cornerstone of the nation's strategy to integrate sustainability into its financial sector.
Issuance of Green Sukuk for Environmental Projects

As of March 2019, Malaysia had successfully issued six green sukuk. These instruments were specifically designated to finance environmentally beneficial projects, including solar and small hydropower installations, as well as the development of green buildings.
Pioneering the Sustainable Development Goals Sukuk

Further solidifying its pioneering role, Malaysia was the issuer of the world's first Sustainable Development Goals Sukuk in 2018. This landmark issuance demonstrated the country's commitment and capability in developing innovative financial products for sustainable development.
Promoting Malaysia's Value Proposition Internationally

To enhance its standing as an Asian centre for sustainable and responsible investment and green financing, Capital Markets Malaysia (CMM), an affiliate of the Securities Commission Malaysia, recently organised the Sustainable Capitalism in South East Asia Forum in London. This initiative aimed to showcase Malaysia's unique advantages, stemming from its Islamic finance leadership, to a global audience.

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How does Malaysia position itself as an Asian hub for green financing?

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