Page 14 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

Diagram 1
The 5i Strategy anchors the development of the SRI ecosystem

5i Strategy
Internal culture Information
Investors Issuers Instruments and governance architecture

Framework, Standards and Guidelines

ASEAN
SRI Sukuk ASEAN Green Guidelines on ASEAN Social
Framework Bond Standards SRI Funds Bond Standards Sustainability
2014 2017 2017 2018 Bond Standards
2018

Continued growth of sustainable • Green SRI Sukuk Grant Scheme
finance asset classes
To encourage more issuances of green SRI
In developing a facilitative ecosystem to strengthen sukuk, the SC established a RM6 million
Malaysia’s position as a regional leader in sustainable Green SRI Sukuk Grant Scheme in 2018 to
investment, the SC has intensified its efforts in incentivise issuers by offsetting up to 90% of
promoting and introducing green, social and external review costs incurred in relation to
sustainable asset classes: the issuance of green SRI sukuk.
Administered by Capital Markets Malaysia
• Green SRI Sukuk (CMM), four applications received approvals
for the Grant as at end 2018.
In 2014, the SC introduced the SRI Sukuk
Framework to facilitate financing of projects • ASEAN Green Bond Standards
that also benefit the environment and society.
Designed to be versatile, it provides for the To support the development of green asset
issuance of green, social and sustainability classes in the ASEAN region, the ASEAN
sukuk, offering greater financing options for Capital Markets Forum (ACMF) introduced
3
issuers. In 2018, two new green SRI sukuk the ASEAN Green Bond Standards (ASEAN
amounting to RM467.3 million were issued. GBS) in November 2017. Following the
This followed the three issuances in 2017, inaugural issuance of an ASEAN Green Bond
including the world’s first green SRI sukuk in (AGB) in 2017 by a Malaysian issuer that was
Malaysia, bringing the total green SRI sukuk also recognised as a green SRI sukuk, four
issuances to five with amounts raised of more ASEAN green bonds under the ASEAN
RM2.4 billion. GBS were issued in Malaysia and Singapore.
In addition, the first sovereign sukuk in
ASEAN issued by Indonesia is aligned to the
ASEAN GBS.

3 The SC is a part of the ACMF, which comprises capital market regulators from the 10 ASEAN jurisdictions. The ACMF was established
in 2004 to achieve greater integration of the region’s capital markets.

4 | PART 1 »» ENABLING SHARED VALUE GROWTH

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