Green, Sustainable and Responsible Investment Sukuk in Malaysia Expected to Gather Momentum in the Long-Term

According to industry experts, green financing is anticipated to witness growth as investors seek financial instruments which could lead to positive social outcomes in Malaysia. According to Gladys Chua, Head of Sustainability at RAM Sustainability, the green bond/Sukuk market in Malaysia started its expansion from 2017, with the first green Sukuk issuance by Tadau Energy for the financing of its solar power plant.

Since then, Chua confirmed that the green finance sector had witnessed gradual growth with three new green securities issued in both 2017 and 2018, and four issuances in 2019, bringing the total value of issuances to around MYR 5 billion to date. Chua added that Malaysia’s supportive regulatory environme...