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3.3.3 EMBRACING COLLABORATION AND INNOVATION FOR GROWTH
A. POSITIONING MALAYSIA AS A HUB FOR SRI
The SRI landscape in Malaysia is rapidly evolving, even as nascent areas such as transition finance, performance-linked SRI instruments and taxonomies are being deliberated and developed. In such an environment, collaboration and innovation are key to remain in the forefront of development in the SRI space while bringing the broader economy along the journey.
Many jurisdictions have adopted a multi-stakeholder approach to facilitate innovation in their markets. In some jurisdictions, for example, the government, industry practitioners, academia and non-profit sectors have come together to develop capabilities in research, product development and technology innovation to enable the country to drive green finance and investment as a global centre.
In Malaysia, several COEs have been established by CMM, an SC-affiliate – the Malaysian Sustainable Finance Initiative to build capabilities of intermediaries in sustainable finance; the Centre for Sustainable Corporations to build up capabilities for sustainable practices among private sector companies; and the Sustainable Investment Platform to promote sustainable investment strategies among investors. Besides these, the SC has collaborated with BNM to set up JC3 in partnership with Bursa Malaysia and the industry to further climate action within Malaysia’s financial sector.
Additionally, the SC also plays a significant role in driving the development of sustainable finance on the regional front through the ACMF and the ASEAN Working Committee on Capital Market Development. Internationally, the SC participates actively in IOSCO’s sustainable finance initiatives, including managing capacity-building efforts through the IOSCO Asia Pacific Hub based in Malaysia. Furthermore, CMM is a member of the International Network of Financial Centres for Sustainability.
As the Malaysian capital market continues to grow with emerging global and regional SRI needs, the SC envisions Malaysia transforming into a regional SRI hub that aligns with the ICM agenda to establish Malaysia as a regional centre for Shariah-compliant SRI. By leveraging the SC’s extensive collaboration network and bringing more domestic and regional stakeholders together, efforts will be made to develop thought leadership in sustainable finance, cater to regional capacity-building needs as well as champion innovation and research, while bringing the broader economy along a journey of long-term value creation. In addition, Malaysia seeks to attract global investments by leveraging its position as having an ever-growing list of Shariah and ESG-compliant companies, SRI funds and SRI sukuk.
B. ENHANCING ICM GLOBAL THOUGHT LEADERSHIP AND CAPACITY- BUILDING CAPABILITIES
Today, Malaysia is seen by many as a global thought leader in Islamic Finance. As the capital market embraces the emerging trends highlighted in Chapter 2, Malaysia’s role as a thought leader in ICM will evolve accordingly. This includes harnessing the advancement in technology to collaborate and innovate to remain relevant on regional and global platforms as well as pave the way on how ICM can better enable the stakeholder economy and sustainable goals.
CAPITAL MARKET MASTERPLAN 3
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