KUALA LUMPUR (Aug 1): Malaysia’s total outstanding Sustainable and Responsible Investment (SRI) sukuk issuances have reached RM27.3 billion to date, says Securities Commission Malaysia (SC) chairman Datuk Mohammad Faiz Azmi.

“Since the introduction of the 5i-Strategy in 2014, the SC has introduced several initiatives to develop a facilitative SRI ecosystem in Malaysia. This includes the SRI Sukuk Framework in 2014, Guidelines on SRI Funds in 2017, and Waqf-Featured Fund Framework in 2020.

“By embedding SRI principles into our financial practices, we hope to align growth with societal and environmental wellbeing, driving capital towards projects that generate long-term value,” he said in his keynote address at the Bonds and Sukuk Trustees Forum 2024 on Thursday

He said that within Asean, Thailand is the biggest issuer, while Malaysia only accounts for 25% of the US$49.1 billion (RM225.74 billion) total issuance of Asean Green, Social and Sustainability bonds and sukuk.

“As a country, we have to recognise that we’re at that point where we are not developing enough, or are we? We are somewhere in between where nobody looks at us. So we have to be masters of our own destiny,” he said.

Mohammad Faiz said the Malaysian bond and sukuk market is growing, with over RM2.057 trillion outstanding as of June 2024, of which corporate bonds and sukuk accounted for 48% of the total.

“In 2024, corporate bonds and sukuk financing is expected to reach RM120 billion to RM130 billion, driven by private refinancing initiatives, infrastructure financing needs, and financial institutions’ capital augmentation plans.

Meanwhile, he said the role of the Association of Trust Companies, Malaysia (ATCM) is crucial in advancing Malaysia's trust industry, advocating for members' interests and fostering a favourable regulatory environment.

“ATCM serves as a platform for knowledge sharing and collaboration among its members, which in turn raises the bar on professional standards and increases Malaysia's appeal to global investors,” he added.

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