Bursa Malaysia Berhad has entered into a collaboration with the United Kingdom government’s Mobilizing Institutional Capital Through Listed Product Structures (MOBILIST) program to enable greater investment to support the energy transition and advance the United Nations’s Sustainable Development Goals (SDGs) in Malaysia.

Bursa Malaysia said in a statement on Tuesday that the duo have signed a Memorandum of Understanding for the partnership.

MOBILIST forms part of British Investment Partnerships (BIP). The MOBILIST program focuses on activating public markets to catalyze 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 program is designed to connect promising ventures on critical sustainable projects with investors by enabling institutional capital to flow to organizations 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.

It was noted that the financial implications of Malaysia’s energy transition are significant in which the country is expected to require between MYR billion 60 to MYR 90 billion ($12.9 billion-$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 MYR 180 billion ($38.6 billion) by 2050, to accommodate Malaysia’s clean energy ambitions.

The varying stages of decarbonization across various countries rely heavily on alternative energy sources, as well as strong regional and international collaboration.

The MOBILIST program 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.

“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 program 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,” said Abdul Wahid Omar, Chairman of Bursa Malaysia.

Muhamad Umar Swift, Chief Executive Officer, Bursa Malaysia added that Bursa Malaysia’s collaboration with MOBILIST exemplifies their 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,” he added.

In her speech, Her Excellency Ailsa Terry, British High Commissioner to Malaysia, commented that the UK’s MOBILIST program is an important initiative to mobilize private finance for climate action and sustainable development.

Building on the existing UK-Malaysia climate partnership, she said 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.

She said that 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 program at the UK Foreign Commonwealth and Development Office (FCDO), added that 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 mobilize high-quality capital at scale to meet Malaysia’s investment needs,” he added.

According to the statement, 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 program can provide debt securities issuers with technical assistance funding, said the statement.

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