The government is dedicated to further developing the ecosystem of Islamic finance so that it can affect real social change, particularly through the optimization of waqf.
The government has committed to a RM10 million seed fund to act as an assured demand for Malaysian-generated carbon credits in order to kickstart the market and support the national journey to achieve net zero emissions by 2050.
Datuk Seri Anwar Ibrahim, Prime Minister of Malaysia, stated that there is a need for a greater emphasis on investments in green growth areas such as hydrogen technology, bioenergy, and electric mobility — enablers of green adoption across sectors as well as future economic engines.
By providing a RM10 million seed fund to act as an assured demand for Malaysian-generated carbon credits, the government is creating a financial incentive for companies and organizations to reduce their carbon footprint and generate carbon credits.
A key part of the emphasis on these areas is ensuring that Malaysians benefit from the transfer of high-tech knowledge and skills while prioritizing R&D efforts,” he said in his keynote address at Invest Malaysia 2023 here on Wednesday (March 8).
He stated that it is one of the areas for further development of Technical and Vocational Training — or TVET — that is being redesigned for greater participation of private sectors, while updates on university syllabi are being developed in traditional academia.
“I look forward to projects in this field maturing to the point where they can take advantage of Malaysia’s Voluntary Carbon Market, which is run by Bursa Malaysia,” he said.
The Bursa Carbon Exchange, which debuted in December of last year, is a critical catalyst in the race to a net-zero future. Notably, it is the world’s first carbon exchange to be granted a shariah declaration.
“Green business is not only crucial to economic sustainability, but also for all life and its attendant qualities. We are fortunate in Malaysia because some of the oldest rainforests on earth can be found here, and our seas border one of the world’s richest biome reservoirs. These are unquestionably valuable, naturally occurring resources that God has bestowed upon us.”
“We must create assets for ourselves in this region. We will finance green technology startups through Bank Negara Malaysia and assist small and medium-sized businesses in implementing low-carbon practises, the minister said.
A Green Technology Financing Scheme, Investment Tax Allowance, and Income Tax Exemption for qualified activities are additional forms of assistance in this field, he continued.
Anwar added that Islamic finance, a field in which Malaysia has long been recognised as a global leader, is a natural fit for further development and support when talking about a sustainable future for the environment where respect for the planet and quality of life are guiding principles.
The government is dedicated to further developing the ecosystem of Islamic finance so that it can affect real social change, particularly through the optimization of waqf.
The Securities Commission Malaysia will expand the Waqf-Featured Fund Framework to include Islamic Real Estate Investment Trusts and Islamic Exchange Traded Funds with effect from April 3, 2023, in this regard, he said.