KUALA LUMPUR, June 2025 — Malaysia’s green finance ecosystem is expanding rapidly, with total ESG investments and sustainable finance issuances crossing RM15 billion in the first half of 2025, according to Bursa Malaysia and the Securities Commission (SC).
The surge comes as institutional investors, corporates, and SMEs align with global net-zero goals, new ESG disclosure mandates, and rising consumer demand for ethical products and services.
🌿 Key Drivers of Growth
1. Sustainable Sukuk & Bonds:
Malaysia remains the world’s largest sukuk market, with green and sustainability sukuk alone making up RM7 billion this year, funding renewable energy, sustainable agriculture, and low-carbon transport.
2. ESG Funds:
Local and foreign asset managers have launched five new ESG unit trust funds in 2025, focusing on climate resilience, clean tech, and gender equality.
3. Bursa Carbon Exchange:
Since launching in 2023, Malaysia’s voluntary carbon market has traded over 500,000 tonnes of carbon credits, helping businesses offset emissions and meet ESG targets.
📈 What’s Changing in 2025?
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Mandatory ESG Reporting:
All Main Market-listed companies must comply with Bursa Malaysia’s new enhanced sustainability reporting standards by FY2025.
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Green Tax Incentives:
Budget 2025 introduced new tax deductions for green tech investments and carbon credit purchases.
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Fintech for ESG:
Platforms like Helios ESG and ImpactMy are connecting investors with verified ESG projects and carbon trading.
🗣️ Expert Insight
Securities Commission Malaysia Chairman Datuk Seri Dr. Awang Adek Hussin said:
“Malaysia’s ambition is clear: to be ASEAN’s sustainable finance hub — bridging capital with projects that deliver measurable social and environmental impact.”
🌏 Outlook for Businesses
For corporates and SMEs, embracing ESG is no longer optional:
✅ New procurement rules favor suppliers with verified sustainability credentials.
✅ Access to green loans and lower financing costs for certified ESG projects.
✅ Investors increasingly scrutinize ESG performance as part of risk assessment.
📬 Stay ahead of sustainability trends and green business opportunities. Subscribe to Business Point Magazine’s “ESG & Responsible Business Weekly” at businesspointmag.com/subscribe
