To boost creation of investment solutions and access to sustainable financing in advancing UN SDGs and climate transition in Malaysia
Bursa Malaysia Berhad (“Bursa Malaysia” or “the Exchange”) has entered into a collaboration with the UK government’s Mobilising Institutional Capital Through Listed Product Structures (“MOBILIST”) programme to enable greater investment to support the energy transition and advance the United Nations’s Sustainable Development Goals (SDGs) in Malaysia.
Bursa Malaysia and MOBILIST signed a Memorandum of Understanding at a ceremony held at the Exchange today. The Honourable Nik Nazmi Nik Ahmad, Minister of Natural Resources and Environmental Sustainability; Her Excellency Ailsa Terry CMG, British High Commissioner to Malaysia; and Tan Sri Abdul Wahid Omar, Chairman of Bursa Malaysia, delivered speeches to commemorate the occasion. The event was also graced by His Royal Highness Prince Hassanal Shah, Crown Prince of Pahang, Malaysia.
MOBILIST forms part of British Investment Partnerships (BIP). The MOBILIST programme focuses on activating public markets to catalyse new investment solutions and financial products that are scalable and replicable in supporting the SDGs and the net-zero transition in emerging markets and developing economies. The programme is designed to connect promising ventures on critical sustainable projects with investors by enabling institutional capital to flow to organisations tackling development challenges and climate transition. MOBILIST offers equity capital to facilitate the listing of pioneering products, technical assistance throughout the listing journey, and policy and research support to enhance the environment for issuers, investors, and intermediaries.
The benefits of the collaboration for Malaysia
It was noted at COP28[1] that the financial implications of Malaysia’s energy transition are significant in which the country is expected to require between RM60 to RM90 billion (USD12.9-19.3 billion) to fund critical projects. These projects encompass expanding public transportation, strengthening grid infrastructure, and upskilling the workforce. A key element will be a robust and adaptable grid capable of handling the increasing reliance on renewable energy sources. The estimated cost for grid development is substantial, reaching RM180 billion (USD38.6 billion) by 2050, to accommodate Malaysia’s clean energy ambitions[2].
The varying stages of decarbonisation across various countries rely heavily on alternative energy sources, as well as strong regional and international collaboration. The MOBILIST programme is strategically designed to address these transition finance requirements across emerging markets, including those in Asia.
Through the collaboration, MOBILIST will work with Bursa Malaysia and its network of brokers, investment banks, and public offering promoters to pinpoint sustainable investment products, with a clear pathway to list on the Exchange.
Tan Sri Abdul Wahid Omar, Chairman of Bursa Malaysia said, “Initiatives to advance SDGs and tackle climate change are critical to building a resilient, inclusive and sustainable future. We are pleased to be collaborating with the MOBILIST programme to bring greater innovation to Malaysia’s capital market for this purpose. This collaboration aligns with our Exchange’s commitment to foster a more inclusive and efficient financial ecosystem, and to unlock new opportunities for investors and issuers alike.”
Datuk Muhamad Umar Swift, Chief Executive Officer, Bursa Malaysia added, “Bursa Malaysia’s collaboration with MOBILIST exemplifies our deep commitment to advancing sustainable development and climate action. We are excited to connect them with our extensive network to identify promising sustainable investments. By working alongside MOBILIST, we aim to bridge the critical climate financing gap by fostering the creation of innovative financial products that drive the green transition for a sustainable tomorrow.”
In her speech, Her Excellency Ailsa Terry, British High Commissioner to Malaysia, commented, “The UK’s MOBILIST Programme is an important initiative to mobilise private finance for climate action and sustainable development. Building on the existing UK-Malaysia Climate Partnership, MOBILIST’s partnership with Bursa Malaysia will further strengthen international cooperation in environmental sustainability, including to help close the financing gap, foster clean growth and accelerate green transition.”
“Over the years, the UK Government has proudly contributed to many initiatives in Malaysia aimed at driving sustainability and inclusive economic growth. Examples of initiatives include facilitating micro-hydro that can bring energy access to rural Sabah or developing green economy strategies for Johor and Sarawak, to supporting the world’s first sukuk issuance by an Islamic Bank in Malaysia, as well as supporting the last two Joint Committee on Climate Change (JC3) conferences. In the past few months new projects have begun on renewables access for Orang Asli communities in Pahang, and on climate-resilient seaweed aquaculture in Sabah,” she added.
Ross Ferguson, who leads the MOBILIST programme at the UK Foreign Commonwealth and Development Office (FCDO), added, “MOBILIST believes that public markets can make a powerful contribution to achieving the SDGs by enabling institutional capital to flow to firms tackling development challenges and climate transition. We view stock exchanges like Bursa Malaysia as key facilitators of these capital flows. Through our collaboration with Bursa Malaysia, MOBILIST’s ability to deploy equity capital and technical assistance in supporting Malaysia’s sustainability agenda represents an important milestone in our shared aspiration to mobilise high-quality capital at scale to meet Malaysia’s investment needs.”
MOBILIST investment and technical assistance to Bursa Malaysia participants
MOBILIST seeks to partner with financial institutions at the core of capital markets and will engage with and accept proposals from Bursa Malaysia’s network of brokers, investment banks and promoters of public offerings. Whilst MOBILIST can only deploy equity capital, the programme can provide debt securities issuers with technical assistance funding.
