KUALA LUMPUR: The Malaysian capital market is urged to facilitate fundraising and investments to support the federal government’s priorities in attaining its sustainability and climate goals.
Securities Commission Malaysia (SC) chairman Datuk Mohammad Faiz Azmi, mentioned the SC is devoted to regulating and creating the Malaysian capital market. It goals to obtain this by selling and sustaining a good, environment friendly, safe, and clear market setting. Additionally, the SC is dedicated to encouraging the event of an progressive and aggressive market.
“The SC has paved the best way for sustainability since 2011, when Sustainable and Responsible Investment (SRI) was embedded within the Capital Market Masterplan CMP2 as a key development technique.
“Under CMP3 and the SRI Roadmap, the SC continues to develop a sturdy SRI ecosystem in Malaysia. This consists of introducing progressive capital market merchandise to meet the various wants of companies and traders, he mentioned in his keynote deal with on the SIDC Sustainable and Responsible Investment Conference 2024: Investing in Human Wellbeing and the Planet at this time.
According to Mohammad Faiz, Malaysia has witnessed a big surge in sustainable investments.
“As of December 2023, there have been 68 SRI funds with a internet asset worth of RM7.7 billion, a big enhance from simply seven SRI funds in 2020 at RM1.46 billion.
“We stay in a linked world, and whereas our investments have environmental and climate impacts, they’re additionally linked to the well-being of the individuals. Societal points are essential to attaining a steadiness in transition in direction of our sustainability goals.
“The most weak in our communities, together with micro and small and medium enterprises will want to be included within the race in direction of net-zero goals.
“Clear insurance policies and tips will assist MSMEs transition to a low carbon financial system,” he mentioned.
He talked about that final month, the SC launched a five-year plan for MSMEs and mid-tier corporations to improve their entry to financing from the capital market and support their entry into the general public market.
“Once the framework is in place, it is going to hopefully act as a ladder for smaller corporations to use to develop. This is in step with the Madani Economic Framework to be extra inclusive and useful to the smaller gamers. The five-year roadmap is the most recent in a sequence of measures we have now launched over time to support the MSME and MTC sectors which in 2022, contributed about 74% to our GDP and employed some 64% of the Malaysian workforce,” he identified.
Mohammad Faiz, who was lately appointed SC chaiman to substitute Datuk Seri Awang Adek Hussin who retired, mentioned corporations are more and more adopting sustainability practices, with some extra superior than others, and extra traders have or are incorporating sustainability into their funding methods. “There is an important connection between the selection of our funding and its impression on societal resilience and environmental sustainability.”
He mentioned the most recent report from the International Energy Agency’s World Energy Investment 2024 revealed this month acknowledged that almost all international locations in Southeast Asia now have bold long-term clear power goals, however investments will not be but on observe. He nevertheless harassed that there have been vital gaps between funding tendencies and the area’s long-term goals.
“The annual common power funding during the last three years, in accordance to the report, was US$72 billion, however would want to enhance to over US$130 billion (RM612 billion) to align with the Announced Pledges Scenario (APS) of nations within the area by the tip of the last decade.
“Malaysia is without doubt one of the eight out of 10 international locations in Southeast Asia which have introduced goal dates to obtain internet zero carbon emissions in 2050 as outlined within the twelfth Malaysia Plan. In 2021, Malaysia revised its Nationally Determined Contribution dedication to the Paris Agreement, aiming to scale back 45% of carbon depth in opposition to GDP by 2030.,” he mentioned.
To obtain its power transition goals, he acknowledged, Malaysia wants RM1.3 trillion between now and 2050.
“It consists of investments in renewable power, power effectivity, and inexperienced mobility. More have to be completed to make sure that funding reaches the fitting locations with the utmost impression on sustainability.
“We additionally want to plan on how to fund climate adaptation wants to address elevated temperatures and sea degree rises,” he mentioned.
