Kuala Lumpur/Geneva, 11 November 2020
Today the UN-convened international Network of Financial Centres for Sustainability (FC4S) welcomed its 33rd member with Capital Markets Malaysia (CMM) based in Kuala Lumpur officially joining the network. As the sixth largest economy in South East Asia and the 39th largest in the world, Malaysia stands at the crossroads of mainstreaming the sustainable finance revolution.
Capital Markets Malaysia (CMM) was set up by the Securities Commission Malaysia (SC) in 2014, to spearhead both the local and international positioning and profiling of the Malaysian capital market. CMM profiles the competitiveness and attractiveness of the various segments of the capital market to increase participation and enhance opportunities for Malaysian capital market intermediaries.
“CMM’s membership of the Financial Centres for Sustainability reinforces Malaysia’s resolve to develop a holistic, sustainable and responsible financing and investment ecosystem. The Securities Commission Malaysia will continue to encourage innovation and promote the principles of sustainable development in the capital markets, to advance the nation’s sustainability agenda,” said Syed Zaid Albar, Chairman of the SC.
A key priority for CMM over the next three years is to facilitate the development of Malaysia’s sustainable finance and investing ecosystem. In an effort to streamline its sustainable finance work CMM formed the Malaysian Sustainable Finance Initiative (MSFI). The purpose of the Centre of Excellence is to support the Malaysian financial sector in further embracing the tenets of sustainable finance. MSFI is led by a Steering Committee which is chaired by SC and includes members representing stakeholder groups within the financial sector involved with financing green or sustainable projects. Its objective is to provide impetus for industry stakeholders to facilitate capacity building, upskilling, awareness and thought leadership on sustainable finance.
By joining FC4S, Malaysia is laying out it’s sustainable finance ambitions for the world to see. As part of our network they will be able to liaise and learn from our membership of over 30 financial centres about everything from taxonomies to green bonds. In just a few years Malaysia has taken huge steps towards mainstreaming sustainable finance and we here at FC4S look forward to assisting them in every way possible,” said FC4S co-chair Lamia Merzouki.
“Malaysia is at an important stage of its sustainable finance roadmap and we believe that FC4S could play a crucial role in its future. They have already started working on the creation of a green taxonomy and it is essential for it to be aligned with international best practices to avoid Malaysian financial institutions, issuers and asset managers from being left behind. With our network of financial centres around the world Malaysia will now have access to a suite of knowledge and data that outlines what’s worked and what hasn’t in jurisdictions from Rio de Janeiro to Nur-Sultan. Thus, giving it insight to best practices around the world.” said Stephen Nolan, FC4S, Managing Director.
As one of the Islamic finance capitals of the world, Malaysia has also been a pioneer in the field of Sukuk, and more recently green Sukuk. A Sukuk is an Islamic version of the conventional bond—and it can be leveraged to enable inclusive growth, moderate inequality, and support poverty reduction. Malaysia as one of the largest issuers of Sukuk with 41.5% market share of global issuances, has proved that it’s diversified sustainable financial products and services, will play a major role in the international stage as they continue to innovate.
As part of its developmental mandate, the SC set up CMM in 2013 to spearhead both the local and international positioning and profiling of the Malaysian capital market with its wide range of conventional and Islamic products, supported by a strong governance infrastructure. CMM profiles the competitiveness and attractiveness of the various segments of the capital market to increase participation and enhance opportunities for capital market intermediaries, issuers and investors.
For media queries, please contact:
Head of Stakeholder Engagement and Business Development
Capital Markets Malaysia
UN Environment Programme (New York)