Malaysia and the United Kingdom are joining forces to harness the potential of Islamic finance for green investments.
This collaboration aims to drive sustainable economic growth and address the pressing need for funding. Malaysia’s green investment needs alone are projected to reach RM1.2 trillion to RM1.3 trillion by 2050.
The recent MIFC-UK Business Forum in London highlighted this partnership. Islamic finance, with its principles of ethical practices and equitable risk-sharing, aligns naturally with sustainability goals.
Key stakeholders from both countries gathered to discuss strategies.
These included increased cross-border collaboration, utilising innovative financial instruments, and fostering partnerships in capacity building and research.
The collaboration with the UK, a global financial hub, is set to bolster both nations’ efforts.
They aim to promote green investments and advance the Islamic finance sector.
His Royal Highness Sultan Nazrin Muizzuddin Shah, the Royal Patron of Malaysia’s Islamic Finance initiative said in His Royal Highness’s Keynote Address,
“This is where Islamic finance offers a potential solution. Rooted in principles of ethical practices, fairness, and equitable risk-sharing, it provides a framework that naturally aligns with sustainability and presents diverse funding options, including blended and social finance.
It is well-positioned to address funding gaps that impede global progress and can serve as a tool for channelling resources where they are needed most.”
Bank Negara Malaysia Governor Dato’ Seri 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.”
