WEEK 6

7.11.2021 - 13.11.2021

SUSTAINABLE FINANCING

Lead Ministry :

Ministry of International Trade & Industry Malaysia (MITI)​

Lead Agency :

The Securities Commission Malaysia (SC)

ABSTRACT

The financial sector has an integral role to unlock banking and investments to meet the UN Sustainable Development Goals (SDGs) by promoting the development of sustainable finance that integrates Environment, Social and Governance (ESG) in financial decisions.

There is affinity between Islamic finance and sustainable finance as Islamic finance has witnessed rapid growth with the total Shariah-compliant assets, estimated at more than US$2 trillion. Islamic finance offers tremendous potential in supporting the climate change agenda which could prove critical in financing and investments to address climate change, often involving innovative activities and technologies. 

The theme for the Islamic Finance Week is Sustainable Financing, supported by the following focus areas:

  • Facilitating Inclusive and Sustainable Finance
  • Sustainable Finance to achieve the UN SDGs
  • Transforming Finance through Digitisation 

 

WHAT TO EXPECT :

This week’s programme is led by the Ministry of International Trade and Industry Malaysia with Malaysia’s Securities Commission (SC) as lead agency while Bank Negara (Central Bank of Malaysia) and Bursa Malaysia (Malaysia’s stock exchange) are the supporting agencies.

Generally, Sustainable Financing week will showcase two significant trends that have emerged across the global financial landscape in recent years, namely sustainability and financial technology. For Sustainability, there is a significant opportunity arising from strong global interest in green financing where innovative fund raising instruments like green and Sustainable Responsible Investment (SRI) sukuk are a viable solution to address global needs for green and other forms of sustainable and responsible financing.

Furthermore, the pace of change in financial markets is rapidly accelerating via the use of new technology, allowing for the emergence of innovative market-based financing models such as Equity Crowdfunding (ECF) and Peer-to-Peer financing (P2P) to raise the necessary funding, facilitated by a diverse range of FinTech players including digital investment managers, digital asset exchanges and property crowdfunding operators.

In line with the selected themes, some of the products and services to be showcased include:

  • Green Sukuk
  • ESG & SRI financing and investments
  • Value-based Intermediation products and services
  • Digital Investment Stockbroking
  • Equity Crowdfunding and Peer-to-Peer financing