Bank Islam Malaysia has introduced a new financing solution, IHSAN Financing for Business Resilience, Sustainability and Green Transition (IFiRST), aimed at supporting SMEs and mid-tier companies in adopting more sustainable and resilient practices.
Unveiled at the Bank Islam Sustainability Conference 2025, the initiative focuses on helping businesses transition to low-carbon operations, particularly in carbon-intensive sectors.
The bank said IFiRST integrates access to facilities such as Bank Negara Malaysia’s Low Carbon Transition Facility (LCTF) to help businesses overcome financial and operational challenges in their sustainability journey.
Bank Islam’s Group CEO, Dato’ Mohd Muazzam Mohamed, said the offering aligns with the bank’s commitment to an inclusive shift toward a greener economy.
“IFiRST strategically focuses on carbon-intensive sectors, incorporating access to facilities, such as Bank Negara Malaysia’s Low Carbon Transition Facility (LCTF).
This integrated approach helps businesses overcome financial and operational barriers in their sustainability journey, ensuring that no stakeholder is left behind,”
he added.
The initiative is aligned with Shariah values and the bank’s environmental, social and governance (ESG) strategy.
It also supports smaller businesses and ecosystem partners within larger supply chains, acknowledging their role in reducing carbon emissions.
Bank Islam has achieved 93% of its RM28 billion sustainable finance and asset target for FY2025 as of December 2024.
Its green financing portfolio includes the Ihsan Sustainability Investment Account, SME SMART Eco Financing Programme-i, and participation in the LCTF.
Mohd Muazzam said the bank will continue offering advisory services, sustainable financing, and knowledge-sharing platforms to help clients future-proof their operations.
These efforts are part of its broader push to enhance economic resilience and contribute to Malaysia’s climate targets.
As part of its long-term roadmap, Bank Islam will roll out a Climate Transition Plan to guide its operations toward Net Zero emissions by 2050.
The plan includes expanding green and transition financing and working with clients in high-impact sectors to adopt low-carbon business models.
Featured image: (From left) Bank Islam Group CEO, Dato’ Mohd Muazzam Mohamed, Secretary General of the Ministry of Economy, Dato’ Nor Azmie Diron, and Bank Islam Group Chief Business Officer – Institutional Banking, Sharifah Sarah Syed Mohamed Tahir
