Malaysia leads the world in green investment — Ongkili
SINGAPORE: With 130 potential projects for green financing worth more than RM2 billion in the pipeline, Malaysia is definitely moving on the right path to become the world leader in green investment, says Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili.
He said of them, 111 were renewable energy projects worth about RM1.9 billion and 19 energy efficiency projects worth about RM248 million, reflecting Malaysia’s potential for green financing,
“We are also looking at LargeScale Solar Photovoltaic Plants, involving 18 companies for the next two years until 2018, with a capacity awarded 402 MW,” he said at the five-day Singapore International Energy Week 2017 (SIEW 2017) from Oct 23.
The minister shared Malaysia’s views in promoting the growth of the clean energy sector and adopting new energy technologies in the region during the “Energy Investment Challenge in Asia Powering Growth while Financing the Clean Energy Transition” Forum.
Speaking to Bernama on the sidelines of the forum, Ongkili said Malaysia has a “clear and transparent” policy and regulations for climate-friendly investments.
“For green investments, Malaysia is playing a pioneering role in harnessing the capital market,” he said, adding that banks in Malaysia where in early years were a bit skeptical to provide financing for such investments in that new sector but were now very supportive,” he said.
Ongkili told the forum that Malaysia is leading the world in green investment through the introduction of its Green Islamic Sustainable and Responsible Investment (SRI) Sukuk.
Green SRI Sukuk is a Shariahcompliant financial assistance, which gained the World Bank Group’s recognition, he said.
Malaysia has recently issued the first Green Islamic SRI Sukuk amounting to RM250 million for solar project to Tadau Energy and RM1 billion for Quantum Solar Park Malaysia, the world's largest green sukuk issuance to construct the largest solar power project of its kind in Southeast Asia.
“That puts Malaysia on the world map and a leader in green investments,” said Ongkili.
Ongkili highlighted to the participants that Malaysia’s overall capital market grew 0.7 per cent to RM2.84 trillion in 2016.
The size of the country’s bond market grew 4.5 per cent to RM1.17 trillion, and the equity market capitalisation ended the year at RM1.67 trillion.
“Our Islamic capital market alone stood at RM1.60 trillion, representing 60 per cent of the domestic capital market,” he said.
Ongkili said that Malaysia is third largest bond market in Asia after Japan and South Korea, as a percentage of Gross Domestic Product.
But for the sukuk market, the minister said that Malaysia would continue to be the global leader, with 53 per cent of the US$349 billion (US$1=RM4.23) sukuk outstanding globally, and 46 per cent of the US$75 billion sukuk issuance in 2016. - Bernama