DFI Green Finance Forum 2023 Speech by Encik Jay Khairil, Chief Executive BSN

Yang Berbahagia Encik Suhaimi Ali

Assistant Governor Bank Negara Malaysia,

Yang Berusaha Encik Mohd Prasad Hanif

Secretary General of ADFIM,
Respected Bank Negara Malaysia officials,

Distinguished Board of Directors, Chief Executive Officers and Representatives of ADFIM Members,

Industry players,
Distinguished speakers, guests, ladies and gentlemen. Assalamualaikum and good morning everyone.

Firstly, a very warm welcome everyone to the DFI Green Finance Forum with the theme of Empowering DFIs to Bridge Funding Gaps and Drive Economic and Climate Resilience. It’s good to see familiar faces and old comrades in the audience.
Today, we gather here at the prestigious Sasana Kijang, united by the shared vision of the Association of Development Finance Institutions Malaysia (ADFIM) in collaboration with Bank Negara Malaysia (BNM) and the World Bank Group. Together we embark on a journey to empower Development Financial Institutions (DFIs) and make a tangible impact on Malaysia’s sustainable development goals and its pledge to achieve carbon neutrality by 2050.
I know it’s an early session, but what better way to enjoy the lush morning and appreciate nature by discussing green financing. We can agree that green financing is happening and will be the way forward.
It is also said that money doesn’t grow on trees. Perhaps, it’s time we challenge that notion and plant the seeds of financial growth amidst the blossoming branches of environmental prosperity. In green finance, we strive for financial gain and a world where economic prosperity and environmental stewardship coexist harmoniously.

We are privileged to have a distinguished line-up of speakers from various backgrounds representing various esteemed organisations, including the World Bank, to speak on Green Finance. I want to sincerely thank the presenters and speakers for their invaluable presence and for sharing their expertise with all of us today.
As DFIs, we hold the key to unlocking the potential of sustainable development by financing projects that align with the Sustainable Development Goals (SDGs) outlined in the 12th Malaysia Plan (RMK-12) and the BNM Financial Sector Blueprint.
Our mission is to pave the way for progress in critical sectors such as housing, transport, energy, water and Information Communications Technology (ICT), and it is our mandate as DFIs to develop and promote these key sectors, as they are of strategic importance to the socio-economic progress of our nation.
We focus on exploring innovative green finance solutions and forging partnerships, as sustainability is an ongoing journey that demands collective effort. As DFIs, we can contribute by prioritising six main initiatives: Mobilising capital for green projects, addressing market gaps and risks, fostering innovation and knowledge sharing, promoting policy and regulatory frameworks, strengthening capacity and skills, and promoting social and environmental co-benefits.

Ladies and Gentleman,

As we delve into green finance, it becomes evident that DFIs are crucial in mobilising capital for sustainable projects. The capital market presents significant opportunities for project owners seeking funds for sustainable and green initiatives.
In this regard, we must confront the prevailing market gaps and associated risks head-on.
DFIs are the crucial link between traditional financing and the financing required for sustainable development, as stated by the Asian Development Bank. By leveraging on our knowledge, networks and resources, DFIs can provide the required support and guidance, thereby minimising risks and increasing the viability of green financing projects.
Strategic partnerships and collaborations will enable DFIs to foster innovation and knowledge sharing in the green finance space. We should explore financing opportunities for underserved/unserved areas, especially in areas less addressed by the mainstream banks, by collaborating with associations, fintech companies, start-ups, and pilot projects to drive green initiatives further.

Ladies and Gentleman,

In conclusion,let us reflect on the crucial role that the DFIs play in shaping a sustainable future for the nation. We are the key to mobilising capital, addressing the market gaps, fostering innovation, and advocating for favourable policies and capacity building.
Our actions will contribute to the broader sustainable development goal and pave the way for a greener and more resilient future.
Thank you, once again, for your dedication and unwavering commitment to the cause of green financing and sustainability. Let us embark on this journey together and build a sustainable and prosperous Malaysia.
Enjoy the upcoming session.

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