Mikro
Kecil
SederhanaTHE role of financial institutions (FIs) has evolved from just being an intermediary for borrowing and lending to being the driver of capital in the transition towards a green and sustainable future.
Intense pressure from key stakeholders, including regulatory authorities and investors, has prompted businesses to rapidly integrate sustainable practices into their decision-making processes.
Channelling capital to where it matters.
The demand for sustainable finance will continue to grow, driven by, among other things, the focus on value-based investing, increasing demand for infrastructure and heightened awareness of climate change.
The rapid progress in sustainable and climate financing presents a challenge in capacity to FIs and regulators, to ensure that Malaysia is well-positioned at the forefront of sustainable and climate finance.
This refers to financing transactions that incorporate environmental, social and governance (ESG) and climate-related risks into the overall credit risk assessment and financing decision-making process.
These types of financing are targeted to facilitate the sustainability initiatives of an organisation and its transition into a low-carbon world.
Amidst the focus on ESG and sustainability, funding that has been discontinued includes, among other things, the financing of new coal-fired power and thermal coal mine projects, while the stance on ‘No Deforestation, No Peat and No Exploitation’ has also been adopted.
RHB to support SMEs
Moving forward, the RHB Banking Group will work towards supporting small and medium enterprises (SMEs).
“This is being done through creating awareness and understanding of ESG as well as the benefits of integrating ESG aspects into their businesses for sustainable growth,’’ said RHB group chief sustainability and communications officer Norazzah Sulaiman.
Under the sustainability financing program (SFP) for SME and retail customers, RHB’s target is to grant RM1bil in new financing by 2025.
As at end of September, 2022, RHB has extended more than RM380mil through the SFP.
A total of seven socially responsible investing (SRI)-authorised funds had been launched by RHB Asset Management, with assets under management of RM1.24bil, as at September 2022.
RHB was the sole lead arranger and manager for Cagamas’ issuance of RM300mil two-year Asean sustainability bond in October 2021.
In December the same year, it structured and executed Malaysia’s first Green Cross-Currency Interest Rate Swap transaction, set against ESG-linked key performance indicators to hedge a US$100mil two-year sustainable loan.
It was also the sole principal adviser, sole lead arranger, joint lead manager, facility agent, adviser and commodity trading participant for SME Bank’s RM3bil Sukuk Wakalah Programme, the country’s first sustainability sukuk by a development FI.
In advocating for the environmental, social and governance (ESG) agenda for the nation’s smaller companies, the Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) embarked on its three-year Sustainability Roadmap in 2021.
The Bank’s sustainability agenda is also aligned with Bank Negara Malaysia’s Performance Measurement Framework, which emphasises the importance of development financial institutions incorporating additionalities as part of business operations to promote greater development outcomes and strengthen accountability as public institutions.
Steps Towards Sustainability
The Star 25 November 2022
Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) CEO Datuk Dr Aria Putera Ismail said, “Post Covid-19 pandemic, SMEs are mainly focusing on their business survival, of which cashflow is the key issue, while other non-business matters that are not for near-term benefits are neglected.
“ESG is an opportunity to not just have a deeper understanding of risks but to seek brand enhancement, engage customers, partner with new suppliers, streamline operations, attract talents, ensure greater preparation for unforeseen issues (such as pandemics) and improve financial performance.
“If SMEs are not adapting to the times, their competitiveness and viability will be affected and they will not be able to be part of the supply chain for bigger corporations (especially when it comes to exports). They will also significantly lose market share, meaning that instead of expanding business, they will be losing opportunities.
Getting SMEs onboard the ESG Journey
The Star, 25 November 2022
KUALA LUMPUR: Sebanyak 11 syarikat Malaysia akan menyertai misi pemecutan eksport (EAM) ke China secara maya pada 16-17 Novmber, 2022, anjuran Perbadanan Pembangunan Perdagangan Luar Malaysia (MATRADE) dengan kerjasama Kementerian Pembangunan Usahawan dan Koperasi (KUSKOP) dan SME Bank.
Dalam kenyataannya, MATRADE berkata ini juga sebagai kelangsungan membantu perusahaan kecil dan sederhana (PKS) Malaysia untuk pulih dalam tempoh pasca-pandemik.
Ketua Pegawai Eksekutif Datuk Mohd Mustafa Abdul Aziz berkata kerjasama strategik itu memaparkan kepentingan sinergi dalam ekosistem perdagangan bagi memperkukuh daya saing perdagangan Malaysia seperti disarankan oleh Rangka Tindakan Perdagangan Nasional (NTBp).
EAM merupakan platform alternatif yang boleh digunakan oleh syarikat Malaysia bagi menembusi pasaran, memanfaatkan penglibatan pemain pasaran berprofil tinggi dan berkualiti yang mencari peluang perniagaan baharu.
Pada masa sama, MATRADE akan terus mewujudkan serta memanfaatkan kerjasama strategik dengan pelbagai kementerian, agensi dan persatuan industri perdagangan dalam melaksanakan program-program berkaitan eksport untuk menghasilkan lebih banyak peluang bagi masyarakat perniagaan.
China yang juga antara destinasi eksport utama Malaysia, juga menawarkan peluang peniagaan yang besar bagi perniagaan membabitkan pelbagai industri, kata MATRADE.
Perdagangan Malaysia dengan China telah meningkat 18.5 peratus kepada RM360.56 bilion dalam tempoh Januari-September 2022 berbanding sembilan bulan pertama pada 2021.
Eksport pula meningkat 13.4 peratus kepada RM155.45 bilion didorong oleh peningkatan eksport produk elektrikal dan elektronik, gas asli cecair serta bijih logam dan logam sekerap manakala import China menokok 22.7 peratus kepada RM205.11 bilion. – BERNAMA
