SUSTAINABLE FINANCE INCENTIVES

Incentives

The Malaysian sustainable finance ecosystem is supported by comprehensive sets of guidelines and frameworks conceptualised and implemented by its financial regulators, together with various incentives for stakeholders. In efforts to create a conducive ecosystem and promote sustainable financing, several incentives are in place to attract issuers.

Policy / Measure owner Summary Amount Objectives Eligibility Application
Securities Commission Malaysia
(administered by Capital Markets Malaysia)
Covers costs incurred by issuers on independent expert reviews of sustainable sukuk issuances, as well as tax incentives for the recipient over 5 years, up to YA 2025. 90% of costs up to a maximum of RM300,000
  • To incentivise and encourage eligible issuers by defraying the external review costs of sukuk issuance under the SC's SRI Sukuk Framework, ASEAN Bonds under the ASEAN Standards and SRI-linked Sukuk under the SRI-linked Sukuk Framework.
  • To facilitate the transition of companies to low carbon and better sustainability practices through sukuk issued above.
Policy / Measure owner Summary Amount Objectives Eligibility Application
Securities Commission Malaysia A list of available tax deductions and stamp duty exemptions on Islamic capital market sectors of products and services. Differs
  • To encourage and incentivise sustainable Islamic finance and investments.
Differs
Policy / Measure owner Summary Amount Objectives Eligibility Application
Bank Negara Malaysia The RM2 billion fund helps SMEs with capital expenditure or working capital to initiate or facilitate the transition to low carbon and sustainable operations such as improving energy efficiency, increasing use of sustainable materials, or obtaining sustainability certification, among others.
  • Financing of max RM10 million per SME.
  • Max financing rate of 5% per annum.
  • To encourage and support SMEs with adopting sustainable practices and low carbon operations.
  • SMEs in all sectors

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