SC developing Sukuk Prisma SDG to fund climate adaptation, resilience

Sep 15, 2026

3 min read

Featured Posts

Social Bonds Illustrative Use-Of-Proceeds Case Studies Coronavirus

Jul 06, 2020

2 min read

Sustainable Banking Network (SBN) Creating Green Bond Markets

Jul 06, 2020

2 min read

Why is Inflation Making a Big Comeback After Being Absent for Decades in the U.S.?

Mar 24, 2022

7 min read

SC issues Corporate Governance Strategic Priorities 2021-2023

Mar 29, 2022

3 min read

SC chairman Datuk Mohammad Faiz Azmi (The Edge filepix by Shahrill Basri)

KUALA LUMPUR (Sept 13): The Securities Commission Malaysia (SC) is developing a new shariah-based framework, known as Sukuk Prisma SDG, to facilitate non-ringgit sukuk issuances that support climate adaptation, resilience and other national sustainable development priorities.

SC chairman Datuk Mohammad Faiz Azmi said the proposed framework will be built directly upon the regulator’s existing Sustainable and Responsible Investment (SRI) Sukuk Framework.

“The idea is to focus on non-ringgit sukuk issuances that translate national priorities into clear, credible and globally recognisable purposes under the United Nations Sustainable Development Goals (SDGs),” he said in a statement.

He said Sukuk Prisma SDG will be aligned with the Maqasid al-Shariah Guidance issued by the SC, while adopting the Asean Taxonomy and international green bond principles.

Mohammad Faiz said the proposed framework remained a work in progress, with the SC welcoming feedback on the initiative and other ideas to finance climate adaptation and resilience.

He said the need for sustainable and responsible finance has become increasingly urgent, requiring regulators, market institutions and other stakeholders to translate climate ambitions into concrete action.

For the SC, he said the priority is to facilitate the funding required to help economies adapt to and mitigate the effects of climate change.

However, resilience must be embedded across economies through enabling market infrastructure and clearer adaptation-focused frameworks, including National Adaptation Plans that allow climate outcomes to be measured and verified.

“Without these foundations, scaling private capital towards climate resilience will remain constrained because investors cannot underwrite what they cannot measure,” he said.

Mohammad Faiz said stakeholders must also reconsider how returns are defined and risks assessed, including whether economic growth adequately accounts for the broader consequences of investment and development decisions.

He said new financial product structures must be prioritised to channel more private capital towards climate resilience.

These could include outcome-linked and resilience-based sukuk, blended finance approaches and other innovative structures aimed at improving the bankability of climate adaptation investments.

“Our task is to identify scalable and investable solutions capable of delivering measurable resilience outcomes,” he added.

Uploaded by Liza Shireen Koshy

Source: SC developing Sukuk Prisma SDG to fund climate adaptation, resilience (13 Sep 2026, 12:16 pm) The Star. Retrieved from https://theedgemalaysia.com/node/817877

Disclaimer

The information provided in this report is of a general nature and has been prepared for information purposes only. It is not intended to constitute research or as advice for any investor. The information in this report is not and should not be construed or considered as an offer, recommendation or solicitation for investments. Investors are advised to make their own independent evaluation of the information contained in this report, consider their own individual investment objectives, financial situation and particular needs and should seek appropriate personalised financial advice from a qualified professional to suit individual circumstances and risk profile. The information contained in this report is prepared from data believed to be correct and reliable at the time of issuance of this report. While every effort is made to ensure the information is up-to-date and correct, Bond and Sukuk Information Platform Sdn Bhd (“the Company”) does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information contained in this report and accordingly, neither the Company nor any of its affiliates nor its related persons shall not be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.

BIX ARTICLE

SC developing Sukuk Prisma SDG to fund climate adaptation, resilience

Featured Posts

YOU MAY ALSO LIKE

Malaysia’s bonds brace for bumpy ride