Malaysia Poised to Lead in Climate Solutions, Deputy Minister Says
KUALA LUMPUR, – Malaysia possesses significant potential to become a global leader in climate-related projects, according to Deputy Finance Minister Liew Chin Tong. Speaking at the launch of the UK-funded Climate Finance Accelerator (CFA) today, Liew emphasized the importance of aligning capital, policy, and knowledge development to achieve this goal.
The key challenge, Liew stated, lies in effectively directing investment into credible climate initiatives and presenting these projects in a way that attracts international investors. “There is no shortage of money in the world, but how to channel capital into climate causes, how to frame it and articulate it, not just for domestic audiences but also for global investors, that is the potential contribution,” he said.
The CFA, a technical assistance program, is specifically designed to help climate projects in Malaysia become investor-ready and contribute to the nation’s commitment to achieving net-zero emissions by 2050. British High Commissioner to Malaysia Ajay Sharma was also present at the launch event.
Liew highlighted that Malaysia is entering a new phase, both domestically and internationally, presenting increased opportunities to accelerate climate initiatives beyond traditional development pathways. He noted that changing global dynamics have positioned Malaysia favorably to become a credible partner in climate collaboration.
Building a strong knowledge base and fostering local expertise are crucial for Malaysia to develop and implement effective climate solutions, both within the country and across the wider region, Liew added. Priority areas for development include accelerating the energy transition, reimagining urban planning to reduce carbon footprints, strengthening supply chain traceability and promoting circular economy practices, and establishing a comprehensive carbon ecosystem encompassing carbon taxes and emissions trading systems.
The Deputy Finance Minister expressed hope that increased collaboration will enable Malaysia to build climate expertise not only for its own needs but also to share knowledge and best practices with other nations in ASEAN and globally.
Liew expressed confidence that the CFA’s bespoke capacity-building support will stimulate the creation of innovative climate solutions within Malaysia, clarify the path to profitability for businesses engaged in climate initiatives, and establish a solid foundation for attracting meaningful investor engagement.
The CFA specifically targets low-carbon businesses and entrepreneurs, recognizing their unique ability to champion responsible business practices in Malaysia. By participating in the program, these businesses can amplify their voice and reinforce the idea that economic growth does not need to come at the expense of future generations.
Beyond the CFA, Malaysia is also working to advance green building finance. A memorandum of understanding between the International Finance Corporation (IFC) and Cagamas Berhad, signed in March 2025, aims to promote climate-smart investments in the housing and building sectors. This collaboration will focus on improving the capacity of financial institutions to offer green building finance products, including green bonds and credit lines, and financing for sustainable cooling technologies.
Malaysia will implement a carbon tax by 2026, initially targeting the iron, steel, and energy industries, as announced in the country’s Budget 2025 on October 18. This move reaffirms Malaysia’s commitment to reducing emissions and achieving its decarbonization goals.
