theedgemalaysia.com Open in urlscan Pro
2606:4700:10::6816:1158  Public Scan

Form analysis
0 forms found in the DOM

Text Content

Tuesday 27 Jun 2023


Menu
Home
Corporate
Economy
Court & Politics
Sections
EdgeTV
Tech
Opinion
新闻
Home
Corporate
Economy
Court & Politics
Sections
EdgeTV
Tech
Opinion
新闻
Home
Corporate
Economy
Court & Politics
Sections
EdgeTV
Tech
Opinion
新闻




 1. Home
 2. Malaysia, Indonesia lead green and sustainability sukuk issuance, says
    Sustainable Fitch

Malaysia
World

Malaysia, Indonesia lead green and sustainability sukuk issuance, says
Sustainable Fitch
By Surin Murugiah / theedgemarkets.com
03 Apr 2023, 01:04 pm



KUALA LUMPUR (April 3): Malaysia accounts for 20% of cumulative issuance of
green and sustainability sukuk between 2017 and the first half of 2022, within
the Southeast Asian region.



Citing a report published by the International Renewable Energy Agency in March
2023, Sustainable Fitch said the country accounted for US$3.9 billion (RM17.25
billion) or 56% of total Asean sustainable and responsible investing (SRI) sukuk
issuance as of November 2021.



Malaysia is second only to Indonesia, which accounted for 27% of the issuance.

Meanwhile, Sustainable Fitch said Malaysia will need to invest between US$375
billion and US$415 billion in renewables and energy-transition efforts in order
to achieve its 2050 climate goals under the 1.5 degrees Celsius scenario.

The firm said this is more than double the figure that Malaysia currently
invests, so the capital shortfall may prompt the government to consider green
and sustainability sukuk issuance to shore up the necessary funding.

The agency said Malaysia has pledged to reduce its greenhouse gas emissions and
reach “net-zero” by 2050.



It said the government also announced in 2021 that it would increase its 2025
renewables power mix capacity target to 31% from 20%, with a subsequent target
of 40% by 2035.

However, fossil fuels still account for the majority of the country’s current
overall power mix, and Malaysia only currently generates about 3% from renewable
sources such as solar and biofuels.

Sustainable Fitch said Malaysia, as an Islamic finance hub, may choose to
leverage its position as a leader in the sukuk market to address the renewable
energy funding gaps.

Sustainable Fitch said Malaysia’s renewables sector is also poised for
significant growth, so sukuk may potentially offer better incentives to private
and foreign investors than regular environmental, social and governance
(ESG)-labelled bonds.

It said this is because of the prospects of better returns since when a sukuk’s
asset appreciates, as does the value of the sukuk and the associated returns.

The United Nations Development Programme and the Islamic Finance Council UK
previously estimated that up to US$50 billion in capital dedicated to UN
Sustainable Development Goals and Climate Change commitments could be raised via
green sukuk by 2025, highlighting the scale and funding capacity that sukuk
could support.





Sustainable Fitch said challenges also exist in ensuring Shariah compliance of
sukuk over the long term due to the evolving nature of Islamic finance.

It said interpretations of Shariah law can change over time, and sukuk that
might once have been compliant at the time of issuance may no longer be in
future.

This is a particularly pertinent issue for green sukuk as the associated risks
may deter investors.

Branded
Building an extraordinary ‘Sky Living’ experience

Nestled in a lush tropical setting, the two dancing towers of SkyLuxe On The
Park stretch upwards against the horizon of Bukit Jalil. Along with SkyWorld
Development Bhd’s 12 other projects, the luxurious award-winning masterpiece is
testament to the urban developer’s commitment to quality and excellence, and a
reflection of its ambitions to transform the city skyline.

Continue Reading
 * Most Read
 * Just In

IJM Corp, Sapura Energy, Rapid Synergy, Fitters Diversified, VSTECS, Bank Islam
Malaysia, Media Prima, Malakoff Corp, DGB Asia, Radium Development, SkyWorld
Development and Sime Darby Property
Three SCIB directors resign ahead of EGM to vote on their removal
Protest in front of Malaysian embassy in Jakarta over comic book sold in
Malaysia
MYAirline launches Bangkok as its first international destination
US stocks slip, crude gains on Russia tensions, rate hike worries

Saudi Arabia’s stash of oil in the Red Sea is driving up global floating storage
Asia lobby group pushes for easing of China's offshore listing rules
Kenanga starts coverage on Hong Leong Industries, target price RM11.40
Market weakness expected to persist into 3Q2023, says HLIB
Ford to cut hundreds of US salaried workers to lower costs






Level 3, Menara KLK, 1 Jalan PJU 7/6, Mutiara Damansara, 47810 Petaling Jaya,
Selangor, Malaysia

(+603) 7721 8000

info@bizedge.com

 * Home
 * Contact us
 * Sitemap
 * About us
 * Advertise with us
 * Terms & Conditions
 * Join us
 * Subscription
 * PDPA
 * Newsletter
 * Digital Editions




Copyright © 1999-2023 The Edge Communications Sdn. Bhd. 199301012242 (266980-X).
All rights reserved


Print
Text Size
Share