Speech delivered by Dato' Mohammad Faiz Azmi, Chair of Securities Commission Malaysia, at the event titled "Unlocking capital for sustainability: Malaysia 2025"
The "Unlocking Capital for Sustainability: Malaysia 2025" conference, jointly organized by Eco-Business and the United Nations Environment Programme (UNEP) Finance Initiative, brought together leaders and experts to discuss strategies for a greener future. Held at the Securities Commission Malaysia (SC), the conference was attended by YAB Dato' Sri Haji Fadillah, the Deputy Prime Minister of Malaysia.
The conference was centred around the importance of sustainability, a shared goal and responsibility often referred to as a Whole-of-Society issue. The Deputy Prime Minister emphasized that sustainability matters should be embedded within Malaysia's capital market and in the actions, products, and services of market players.
The conference discussions aimed to facilitate sustainable financing where it is most urgent and provides the greatest impact. The event was associated with ASEAN, international cooperation, investment, UNEP, sustainable development, inclusion, and Indigenous peoples. It was also related to regions like Malaysia and Southeast Asia.
One of the key initiatives highlighted at the conference was closing the financing gap and policy innovation. ASEAN faces a colossal financing gap of about US$1.5 trillion to meet net zero goals by 2030. Addressing this requires innovative policies and scalable financial structures to attract sustainable investments.
Strengthening financial and regulatory ecosystems was another critical focus. Malaysia’s Deputy Prime Minister underscored the importance of reinforcing the financial ecosystem and regulatory frameworks to unlock private capital and expand access to green energy, thereby facilitating market-driven climate action and inclusive economic transformation.
Regional cooperation and integration were also emphasized as a core strategy. Enhanced ASEAN cooperation is vital to advance regional energy integration, mobilize capital for clean energy investments, and harmonize policies that support a just, inclusive, and resilient energy transition.
Standardizing Environmental, Social, and Governance (ESG) disclosures and reporting was seen as crucial to unlocking institutional and global capital flows toward sustainable projects. Quality ESG disclosure and standardized reporting frameworks are essential for transparency and accountability in sustainable investments.
The conference also touched upon the importance of nature-based solutions and carbon markets. There is a focus on ensuring the integrity of nature-based climate solutions and carbon markets via strong partnerships and effective oversight mechanisms.
Incorporating resilience and adaptation in planning was another key point. Rather than treating climate adaptation reactively, integrating resilience-building measures into regional economic planning is crucial for sustainable growth in the face of climate impacts.
The conference also discussed the development of the Mitigation, Adaptation, Resilience and Sustainable Finance (MARS) Framework by ASEAN. This framework aims to improve the usefulness of sustainable finance taxonomies and support adaptation efforts amid accelerating climate change.
In the spirit of fostering multilateral cooperation, Malaysia aims to leverage its ASEAN chairmanship to address global uncertainties. Recognizing it as essential for closing the sustainability finance gap, Malaysia aims to foster multilateral cooperation amid rising geopolitical tensions and economic divisions.
The National Sustainability Reporting Framework (NSRF), launched in September 2024, aims to increase the amount of green investments to support energy transition and prepare for a hotter future. Sustainability is one of the central pillars of the SC's upcoming Capital Market Masterplan 4 (CMP4), which will align with current national priorities.
Indigenous populations like the Orang Asli and Mah Mari in Selangor believe in maintaining a harmonious relationship with their surroundings and not being wasteful of resources. A proverb was shared: "We do not inherit the earth from our ancestors, we borrow it from our children" emphasizing the importance of future generations in sustainability.
The conference provided a platform for leaders and experts to discuss and share strategies for a greener future. The strategies discussed reflect a comprehensive approach combining policy innovation, regional collaboration, regulatory strengthening, and market mechanisms to unlock capital at scale for sustainable development in Malaysia and the ASEAN region.
- The conference, Unlocking Capital for Sustainability, emphasized the importance of embedding sustainability within Malaysia's capital market and the actions, products, and services of market players.
- One key initiative highlighted at the conference was closing the financing gap and promoting policy innovation to help ASEAN meet net zero goals by 2030.
- Strengthening financial and regulatory ecosystems was critical to unlock private capital and expand access to green energy, facilitating market-driven climate action and inclusive economic transformation.
- Regional cooperation and integration were seen as core strategies to advance regional energy integration, mobilize capital for clean energy investments, and harmonize policies supporting a just, inclusive, and resilient energy transition.
- Standardizing Environmental, Social, and Governance (ESG) disclosures and reporting was considered essential to unlock institutional and global capital flows toward sustainable projects, ensuring transparency and accountability in sustainable investments.
- Incorporating resilience and adaptation in planning is crucial for sustainable growth in the face of climate impacts, rather than treating climate adaptation reactively.
- The conference discussed the development of the Mitigation, Adaptation, Resilience and Sustainable Finance (MARS) Framework by ASEAN, aiming to improve the usefulness of sustainable finance taxonomies and support adaptation efforts amid accelerating climate change.
