Malaysia has proposed for the Asian Infrastructure Investment Bank (AIIB) to implement an inclusive financing mechanism to meet the specific needs of developing countries.
In delivering Malaysia’s statement at the Governors’ Business Roundtable on Monday (Sept 25), held in conjunction with the AIIB’s annual meeting in Sharm El-Sheikh, Egypt, Deputy Finance Minister I Datuk Seri Ahmad Maslan said AIIB should explore alternative financing options.
This includes grants and blended financing mechanisms, in line with Islamic finance’s principles of equitable risk sharing, he said.
According to the the Ministry of Finance (MOF), such efforts would accelerate developing countries’ transitions toward becoming low carbon economies.
“Furthermore, communities affected by climate change will benefit from adaptation strategies that can reduce climate risks and climate-change hazards such as floods, landslides or typhoons,” MOF said in a statement on Wednesday.
Held on Sept 25-26, the AIIB’s eighth annual meeting was the first to be organised in the African continent, and the first to be physically held after the Covid-19 pandemic.
AIIB comprises 107 member countries, and functions as a multilateral development bank that aims to support sustainable economic development and promote regional cooperation in addressing development issues and challenges faced by member countries.
Malaysia became a member of the AIIB in 2016.
