Bursa Malaysia Berhad has entered into a collaboration with the UK government’s Mobilising Institutional Capital Through Listed Product Structures (“MOBILIST”) programme to enable greater investment to support the energy transition and advance the United Nations’s Sustainable Development Goals (SDGs) in Malaysia.
MOBILIST forms part of British Investment Partnerships, the programme focuses on activating public markets to catalyse new investment solutions and financial products that are scalable and replicable in supporting the SDGs and the net-zero
transition in emerging markets and developing economies. The programme is designed to connect promising ventures on critical sustainable projects with investors by enabling institutional capital to flow to organisations tackling development challenges and climate transition. It offers equity capital to facilitate the listing of pioneering products, technical assistance throughout the listing journey, and policy and research support to enhance the environment for issuers, investors, and intermediaries.
The benefits of the collaboration for Malaysia
It was noted at COP280F that the financial implications of Malaysia’s energy transition are significant in which the country is expected to require between RM60 to RM90 billion (USD12.9-19.3 billion) to fund critical projects. These projects encompass expanding public transportation, strengthening grid infrastructure, and upskilling the workforce. A key element will be a robust and adaptable grid capable of handling the increasing reliance on renewable energy sources. The estimated cost for grid development is substantial, reaching RM180 billion (USD38.6 billion) by 2050, to accommodate Malaysia’s clean
energy ambitions.
The varying stages of decarbonisation across various countries rely heavily on alternative energy sources, as well as strong regional and international collaboration. The MOBILIST programme is strategically designed to address these transition finance requirements across emerging markets, including those in Asia. Through the collaboration, the programme will work with Bursa Malaysia and its network of brokers, investment banks, and public offering promoters to pinpoint sustainable
investment products, with a clear pathway to list on the Exchange.
In her speech, Her Excellency Ailsa Terry, British High Commissioner to Malaysia, commented, “The UK’s MOBILIST Programme is an important initiative to mobilise private finance for climate action and sustainable development. Building on the existing UK- Malaysia Climate Partnership, MOBILIST’s partnership with Bursa Malaysia will further strengthen international cooperation in environmental sustainability, including to help close the financing gap, foster clean growth and accelerate green transition.”
Ross Ferguson, who leads the MOBILIST programme at the UK Foreign Commonwealth and Development Office (FCDO), added, “MOBILIST believes that public markets can make a powerful contribution to achieving the SDGs by enabling institutional capital to flow to firms tackling development challenges and climate transition. We view stock exchanges like Bursa Malaysia as key facilitators of these capital flows.”
MOBILIST seeks to partner with financial institutions at the core of capital markets and will engage with and accept proposals from Bursa Malaysia’s network of brokers, investment banks and promoters of public offerings. Whilst MOBILIST can only deploy equity capital, the programme can provide debt securities issuers with technical assistance funding.
