BNM: Malaysia to issue its first sustainability bond for environmental, social initiatives

BNM: Malaysia to issue its first sustainability bond for environmental, social initiatives
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KUALA LUMPUR (Nov 25): The Malaysian government plans to issue its first sustainability bond for environmental and social initiatives next year as the country lays the foundation for an orderly transition to a low carbon economy, Bank Negara Malaysia (BNM) deputy governor Datuk Abdul Rasheed Ghaffour said.

During his keynote speech at the third Singapore-China (Chongqing) Financial Summit 2020 yesterday, Abdul Rasheed said Malaysia is developing a principles-based taxonomy to guide financial institutions to classify economic activities that contribute to climate change objectives. 

"These complement efforts by the Islamic finance industry in driving the sustainability agenda through the value-based intermediation strategy,” he said.

Malaysia is advancing the digital transformation of the financial sector. Abdul Rasheed said that in the adoption of e-payments, progress has been made in enabling the interoperability of e-wallet services offered by banks and non-bank e-money issuers. 

He said the country is also fostering greater retail payment linkages with the region.

"ASEAN’s journey to deepen financial integration and foster regional connectivity is integral in creating a highly integrated and cohesive economy,” he said.

Chong Jin Hun