Malaysia, UK to tap Islamic finance solutions for green investments

Stakeholders from Malaysia and the UK convened in London to discuss opportunities and challenges in promoting green investments via Islamic finance solutions. 

The MIFC-UK Business Forum - which brought together more than 140 participants, including government officials, regulators, fund managers, global market investors, and others - aims to strengthen Malaysia-UK partnership in fostering cross-border investments, particularly in the green sector.

The collaboration holds the potential to reinforce the financial landscape of both countries, leveraging Malaysia as a gateway for Islamic finance opportunities for Asia and the Organisation of Islamic Cooperation (OIC) markets, and the UK as a global financial centre. 

Malaysia’s funding requirement for green investment is expected to reach approximately 1.2 trillion to 1.3 trillion Malaysian ringgits by 2050 to build a sustainable economic landscape. 

Participants advocated for collaboration to maximise the potential for innovative Islamic finance instruments in supporting green transition as well as fostering partnership in capacity building, research and knowledge exchange. 

Bank Negara Malaysia governor Abdul Rasheed Ghaffour said, “Malaysia is taking decisive steps towards achieving our Net Zero target in 2050 guided by strategic frameworks such as the National Energy Transition Roadmap, the Hydrogen Economy and Technology Roadmap, and the New Industrial Master Plan. With its underlying intrinsic values, Islamic finance is poised to address the funding needs and support our vision of economic growth that is balanced, sustainable and inclusive.”