FEATURE STORY April 18, 2019

Connecting Malaysia’s Islamic and Sustainable Finance to the World

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The Malaysia Hub since its establishment has partnered with Malaysian counterparts in cementing the country’s global leadership in Islamic finance. The inaugural issuance of the World’s first green sukuk in Malaysia has expanded the narrative for the synergy between Islamic finance which values socially responsible investment and the global trends of incorporating the Environmental, Social and Governance (ESG) principles in financing Sustainable Development Goals (SDGs). 

 

FEATURED WORK:

[REPORT] Islamic Green Finance : Development, Ecosystem and Prospects
This report by the Securities Commission Malaysia (SC) and the World Bank Group is based on the presentations and discussions from a Conference organized by the SC, World Bank Group and the IOSCO Asia Pacific Hub on Harnessing Islamic Finance for a Green Future held from 14 to 15 May 2018 in Kuala Lumpur

[REPORT] Green Bond Proceeds Management and Reporting
This publication Green Bond Proceeds Management and Reporting: A World Bank Guide for Green Bond Issuers was produced jointly by the World Bank Treasury and Finance, Competitiveness & Innovation Global Practice. The objective of this Guide is to clarify the processes issuers in the public sector can follow to meet two of the four elements of the Green Bond Principles (GBP): proceeds management and reporting.

[REPORT] Islamic Finance And Public-Private Partnership: Viability, Opportunities and Recommendations
This report by the Securities Commission Malaysia (SC) and the World Bank Group is based on the presentations and discussions from a Conference organized by the SC and the World Bank Group on Islamic Finance and Public-Private Partnership for Infrastructure Development  held from 8 to 9 May 2017 in Kuala Lumpur

[BLOGS] Regular Reflections from the Kuala Lumpur team on Islamic Finance

  1. How Malaysia created a conducive ecosystem for Islamic sustainable finance
  2. How Islamic Finance is Helping Fuel Malaysia’s Green Growth
  3. Malaysia Launches the World’s First Green Islamic Bond
  4. Can Islamic social finance be the key to end poverty and hunger?
  5. Sustainable Development Goals and the role of Islamic finance
  6. Islamic finance in Malaysia: Filling the gaps in financial inclusion

""We have an ambition not only to make Malaysia a very Green Country, but also to make this an ASEAN hub, for companies who want to invest in ASEAN to make this their place to be headquartered in. To be a place where they actually plan and operate in this ASEAN region""
Yeo Bee Yin
Minister of Energy, Science, Technology, Environment and Climate Change, Malaysia

MULTIMEDIA

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World Bank Group


Green Sukuk

Bank Negara Malaysia, Securities Commission Malaysia, and the World Bank Malaysia Hub formed a Technical Working Group in January 2017 to address the challenge of creating a long-term Islamic financing instrument to serve the country's green agenda. The group decided to create the Green Sukuk, an Islamic bond that would raise capital for use in projects with specific climate or environmental sustainability objectives.

 

[INFOGRAPHIC]: Green Sukuk 101
In 2017, Malaysia launched its first green Islamic bond to finance sustainable, climate-resilient growth in countries. Sukuk is an Islamic bond that can generate returns to investors without contravening Islamic Shariah law, which prohibits interest. A sukuk sells a certificate, with proceeds used to purchase an asset that is mutually owned by both buyer and seller. 

[BLOGS] Perspectives from the Kuala Lumpur team on Green Sukuk

  1. How Islamic Finance is Helping Fuel Malaysia’s Green Growth
  2. Malaysia Launches the World’s First Green Islamic Bond