KUALA LUMPUR, Oct 28 — Malaysia has marked another milestone in Islamic finance with the launch of the world’s first 200 million yuan (RM118 million) Climate Sukuk, integrating Shariah principles with green finance, digital tokenisation and carbon credit monetisation.

The sukuk, jointly issued by Hong Kong-listed Unity Group Holdings International Ltd and Tek Securities Ltd under the Labuan IBFC framework, was announced at the Global Islamic Finance Forum (GIFF) 2025. It aims to strengthen Labuan’s role as a global hub for digital Islamic finance.

Backed by 40,400 tonnes of verified carbon credits from the Selangor government’s Energy Efficiency Initiative, the issuance will fund green infrastructure and low-carbon projects led by Synergy ESCO, including ESG lighting upgrades for strata properties across the state.

Unity Group chairman and chief executive Mansfield Wong said the sukuk sets a benchmark for sustainable Islamic investment. 

“It sets a new standard for Islamic finance to drive climate action and this marks Unity Group’s shift from energy services to sustainable fintech provider, delivering both financial returns and measurable environmental value,” he said.

Prime Minister Datuk Seri Anwar Ibrahim officiated the initiative at GIFF 2025, underscoring the government’s commitment to climate-aligned and transparent financial instruments under Budget 2026.

Unity Group said it plans to expand into renewable energy and smart farming ventures as part of Malaysia’s net-zero transition strategy.

The issuance highlights Malaysia’s continued leadership in Islamic and sustainable finance, leveraging Labuan IBFC’s regulatory framework to attract investment and drive low-carbon growth.