Bank Negara Malaysia (BNM) is considering giving financial institutions greater flexibility to take on higher risks within acceptable limits as part of efforts to support the country’s energy transition.
BNM Governor Datuk Seri Abdul Rasheed Ghaffour said the central bank was reviewing how regulations could be adapted to better support the transition, including allowing financial institutions to assume greater risks where these can be responsibly managed.
“These risks need to be understood, assessed and managed appropriately within acceptable levels of risk,” he said in his speech at the JC3 Journey to Zero Conference 2026 today.
Abdul Rasheed said BNM was also committed to facilitating green energy project planning and reviewing regulatory and supervisory adjustments that could support the transition.
He said the availability of capital was not the main challenge, with financial intermediation and directing funds towards viable and scalable green projects proving more difficult.
Many high-impact projects, particularly those at an early stage, struggle to secure financing because they may not yet be commercially viable despite being technically feasible, he said.
