Page 28 - CMP3

Chart 10
THE MALAYSIAN ICM DOUBLED IN SIZE OVER THE LAST DECADE
2,500 2,000 1,500 1,000
500 0
Source: SC.
2010 2011
Shariah-compliant equity market capitalisation
2017 2018 2019 2020 Sukuk outstanding
2012 2013
2014 2015 2016
1.2.5 DEVELOPED A SUSTAINABLE AND RESPONSIBLE INVESTMENT ECOSYSTEM, AND CAPITALISED ON ICM-SRI SYNERGIES
In line with Malaysia’s commitment to the United Nations’s (UN) 2030 Agenda on Sustainable Development, the SC embarked on the development of the Sustainable and Responsible Investment (SRI) ecosystem, anchored on the 5i-Strategy. This entails developing the SRI investor base, issuer base, instruments, internal governance culture and information architecture. The launch of the Sustainable and Responsible Investment Roadmap for the Malaysian Capital Market (SRI Roadmap) in 2019 provided added momentum to broad- ranging efforts to enable product standards, incentives, disclosures and reporting – all of which set the stage for the industry to push the envelope on SRI offerings and deliver value-enhancing ESG-based solutions.
The introduction of the Sustainable and Responsible Investment Sukuk Framework (SRI Sukuk Framework) and the Guidelines on Sustainable and Responsible Investment Funds (Guidelines on SRI Funds) capitalised on similarities between the underlying principles of Islamic finance and SRI. This has thus far produced 13 SRI sukuk issuers, with a combined total issuance amounting to RM5.5 billion as at December 2020 and catalysed a series of innovative ICM-SRI product structures. In fact, Malaysia has one of the largest SRI AUM in the Asian region (ex-Japan)8 due to the strength and scale of its Islamic funds, which are recognised as part of the overall SRI universe.
Given the importance of regional and global standards for greater SRI growth, Malaysia, through the SC, was actively involved in various collaborations pivotal to the SRI ecosystem. At the ASEAN level, the SC jointly led the ASEAN Capital Markets Forum (ACMF) Sustainable Finance Working Group to develop the ASEAN Green Bond Standards (2017), ASEAN Social Bond Standards (2018) and the ASEAN Sustainability Bond Standards (2018). At the global level, the SC is a member of the IOSCO’s Sustainable Finance Task Force,
Global Sustainable Investment Review, Global Sustainable Investment Alliance, 2016.
8
26 SECURITIES COMMISSION MALAYSIA
RM billion