More Malaysian banks introduce environment-friendly technology financing

Government provided headway to nation by setting up $477.36mln Green Technology Financing Scheme.

More banks in Malaysia are going into green technology financing in view of the potential market for environmental business amid surging levels of greenhouse gases.

Although green financing has not taken off in a big way in Malaysia compared with developed countries, it has been gaining prominence.

Sumitomo Mitsui Banking Corp (Japan), one of the five foreign commercial banks which recently received licences to operate in the country, has teamed up with the Federation of Malaysian Manufacturers (FMM) to provide US$200mil financing for local manufacturers.

Lim Hong Tat said, "Maybank has also financed green projects in the Philippines, Indonesia, China and Vietnam."

The financing, the first of its kind in the country, would be used to fund various types of “green initiatives” including renewable energy, recycling and waste management projects, according to FMM.

The Government had set up a RM1.5bil ($477.36 million) Green Technology Financing Scheme (GTFS) under Budget 2010 to encourage the supply and usage of green technologies, especially in energy, water and waste management industries.

View the full story in the Malaysian Star.