Malaysia’s financial regulators are seeking industry feedback on a proposed taxonomy aimed at strengthening sustainable finance standards, reported online portal Fintech News.
Bank Negara Malaysia and the Securities Commission Malaysia are jointly developing the Malaysia Taxonomy for Sustainable Finance.
It builds on earlier principle based frameworks, including the Climate Change and Principle-based Taxonomy and the Sustainable and Responsible Investments Taxonomy.
Since 2021, Malaysia’s sustainable finance landscape has progressed, supported by clearer policies and stronger institutional readiness.
As market participants advance their climate transition plans, regulators said there is growing demand for more detailed and science based screening criteria.
Alignment with other sustainable finance taxonomies is also intended to ensure interoperability, reduce compliance burdens and facilitate cross border capital flows.
The proposed taxonomy is designed to reflect these evolving needs while limiting greenwashing risks.
The consultation seeks views on the structure and design of the framework.
Financial institutions, asset managers, government agencies, industry associations and other relevant stakeholders are invited to submit feedback.
