Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC) are collaborating to develop the Malaysia Taxonomy for Sustainable Finance.

The duo said in a statement on Monday that this document follows earlier efforts to develop principle-based taxonomy frameworks, namely the Climate Change and Principle-based Taxonomy (CCPT) and the principle-based Sustainable and Responsible Investments Taxonomy (SRI Taxonomy).

Since 2021, Malaysia’s sustainable finance landscape has progressed steadily, supported by clearer policies and stronger institutional readiness.

As market participants advance in their climate journey, the regulators see there is growing demand for more detailed, science-based screening criteria.

They opined that ensuring alignment with other sustainable finance taxonomies is also important to ensure interoperability, reduce compliance burdens, and facilitate cross-border capital flows.

The proposed Malaysia Taxonomy aims to reflect these evolving needs, while also safeguarding against greenwashing practices.

This call for feedback also invites views on the proposed structure and design of the Malaysia Taxonomy. Financial institutions, asset managers, government agencies, industry associations, and other relevant stakeholders are strongly encouraged to contribute to this consultation.

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