Securities Commission launches SRI roadmap for Malaysian capital market

KUALA LUMPUR, Nov 26 — The Securities Commission Malaysia (SC) has released the Sustainable and Responsible Investment (SRI) Roadmap for the Malaysian Capital Market (SRI Roadmap) — a guideline which charts the strategic direction to position Malaysia as a regional SRI centre.

Under the five-year roadmap, the SC would be guided by five overarching strategies (5 i-Strategy) to holistically develop a facilitative SRI ecosystem in the Malaysian capital market.

The five strategies are widening the range of SRI instruments; increasing SRI investor base; building a strong SRI issuer base; instilling strong internal governance culture; and designing information architecture in the SRI ecosystem.

Under the 5 i-Strategy, 20 recommendations were identified to drive the development of a facilitative and vibrant SRI ecosystem for Malaysia.

Speaking at the launch here today, Finance Minister Lim Guan Eng said the roadmap would provide clarity for the capital market industry in mobilising private investments to fund Malaysia’s development and environmental commitments.

He urged more institutional investors to allocate their investments for SRI.

“The issuance of the SC’s SRI Sukuk Framework back in 2014 has been essential in facilitating funding for green, social and sustainable projects that will eventually benefit the environment and broader society.

“The government would like to see more issuance of SRI sukuk to finance these projects,” he said.

Meanwhile, SC Chairman Datuk Syed Zaid Albar believed that the SRI Roadmap’s strategies and recommendations would be pivotal in accelerating SRI’s growth domestically and regionally.

He said currently, the bulk of SRI project financing revolves around renewable energy projects.

“We would certainly encourage more variety and innovative structures leveraging on the abundant resources Malaysia and the region have to offer,” he said.

Syed Zaid added that the SC was looking forward to working closely with industry and public-listed companies to improve corporate sustainability practices, including green practices and sustainability disclosures. — Bernama