15/09/2026

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SCAN ME

TUESDAY | SEPT 15, 2026

Tap Islamic finance to tackle climate crisis: Sultan Nazrin

Miti: Over 40 applications to build, expand data centres this year KUALA LUMPUR: The Data Centre Task Force (DCTF) has received more than 40 applications to establish or expand data centre operations in Malaysia this year, reflecting continued investment interest in the country’s digital infrastructure industry. Investment, Trade and Industry Minister, Datuk Seri Johari Abdul Ghani said each proposal is considered not only in terms of its investment value, but also its requirements for energy, water and connectivity, as well as its potential contribution to Malaysia’s long-term economic and digital aspirations. “As the scale and pace of investment increase, our priorities must evolve alongside the industry. “The next phase is about what that capacity delivers: artificial intelligence adoption, home grown innovation, skilled talent and higher-value jobs,” he said in his keynote address at the Data Centre Nexus 2026 (DCN 2026) here yesterday. The address was delivered on his behalf by Deputy Investment, Trade and Industry Minister Sim Tze Tzin. Johari said the government has strengthened the role of the DCTF – co-chaired by the Ministry of Investment, Trade and Industry and the Ministry of Digital – as an important platform to facilitate a more coordinated approach towards the industry. He said Malaysia is setting clear standards for power and water usage efficiency and, going a step further than many others in the region, for carbon usage efficiency. “Through the task force, the Energy Commission and the National Water Services Commission are also developing the relevant frameworks and guidelines to support the sustainable development of the data centre industry,” he said. Johari said Malaysia approved RM218.5 billion in total investments across various economic sectors in the first half of 2026, almost 12% higher than the corresponding period last year. He said the services sector accounted for the largest share at RM149.6 billion, or 68.5% of the total, while the information and communications sub-sector, which includes data centres, recorded RM103.3 billion in approved investments. Data centre and cloud computing projects alone accounted for RM95.8 billion, or close to 44% of all approved investments during the period, while data centre-related investment approvals have reached RM385.7 billion since 2021, he added. – Bernama

KUALA LUMPUR: Economic growth is critical for Malaysia, which is on the path to achieving high-income status, not only to create greater opportunities but also to broaden horizons, raise aspirations and pave the way to a more prosperous future. The Sultan of Perak, Sultan Nazrin Muizzuddin Shah, said there is an urgent need to bring growth into conversation with the climate emergency. “The historic destruction of the environment in pursuit of wealth: that is what has landed us in this crisis. “And capital, investment, must now get us out of it. The transition to a resilient and sustainable future cannot be financed by public treasuries alone. “The sums required are vast, beyond the reach of any government acting by itself. Private capital, patiently and wisely deployed, must carry a substantial part of this burden,” he said at the 17th SC-OCIS Roundtable at the Oxford Centre for Islamic Studies in the United Kingdom. Sultan Nazrin said the task before the financial community is therefore to extend its horizons, learn to price risks that unfold across decades rather than quarters, and recognise that the returns that matter most in the end are those that endure. “This is where, I believe, the principles of Islamic finance can lead the way. A tradition that binds finance to the real economy, insists that capital serve productive and beneficial ends, shares risk rather than shifting it onto others, and forbids the reckless and the harmful – this is most well suited to the demands of sustainable investment. “We need sukuk structures, waqf-based mechanisms, and green and blue financing instruments that position impact ahead of commercial convenience. “We need the courage to challenge attitudes and priorities, rather than fitting our solutions to the status quo: a financial industry that innovates boldly, and prices climate risk honestly – modelled on Islamic finance,” Sultan Nazrin said. He said the technologies of clean energy, efficient agriculture, water management and resilient construction are advancing at a pace that would have seemed improbable only a generation ago. “In 2025, wind, solar and other renewables overtook coal as the world’s leading source of electricity. For me, this signals progress and gives me reason to be optimistic. “When it comes to the climate emergency, we are, absolutely, in the middle of the storm. And I think there is global – though not unanimous – recognition that we need to act decisively, and act fast. “We need to embed a change of purpose, attitude and behaviour for good. We need to unite the forces of capital and innovation in o Its principles are well suited to the demands of sustainable investment, says Perak Ruler

Sultan Nazrin speaking at the 17th SC-OCIS Roundtable held at the Oxford Centre for Islamic Studies in the United Kingdom.

service of the climate, for a lasting impact and a truly resilient future,” Sultan Nazrin said. Securities Commission Malaysia (SC) chairman Datuk Mohammad Faiz Azmi said Malaysia unfortunately sits in a climate vulnerable part of the world. “This leaves our economy open to adverse weather in ways that are easy to underestimate. For example, total losses caused by floods across Malaysia, our main climate risk, over the last five years amounted to more than US$2.2 billion (RM8.96 billion). “And we are now experiencing higher winds in the monsoons and even landspouts in Perak. “Against this backdrop, the call for sustainable and responsible finance has never been greater. All stakeholders, including regulators and market institutions, play a critical role in translating climate ambition into action. For the SC, the aim is to facilitate the necessary funding to adapt to and mitigate the effects of climate change,” he said. Mohammad Faiz said this requires enabling market infrastructure and clearer adaptation-focused frameworks, such as National Adaptation Plans, to measure and verify outcomes. “We must also prioritise new product structures. This includes outcome-linked and resilience-based sukuk, blended finance approaches and other innovative structures to improve the bankability of adaptation investments. “Our task today is to identify scalable, investable solutions capable of delivering measurable resilient outcomes,” he said. Mohammad Faiz noted that the SC’s Sustainable and Responsible Investment (SRI) Sukuk Framework has been utilised by the market for issuances and shown commendable growth. Outstanding SRI sukuk has increased

from US$1.3 billion in 2020 to US$12.9 billion last year. Today, Malaysia ranks among the region’s top three issuers of green, social, sustainability and sustainability-linked bonds and sukuk. This represents approxi mately a quarter of total regional issuances, he said. “We have the ambition to grow this further. Under the SC’s Capital Market Masterplan 2026-2030, the aim is to mobilise around US$24.6 billion over five years for climate transition, adaptation, resilience, and social development initiatives. “This is not aspirational; it is a committed capital mobilisation target to start to address the World Bank’s estimate of US$500 billion in adaptation needs by 2050 for Malaysia,” Mohammad Faiz said. He also noted that the SC will discuss a Malaysian proposal for a purpose-driven framework built directly on the SC’s existing SRI sukuk framework. “It will be known as Sukuk Prisma SDG. The idea is to focus on non-ringgit sukuk issuances that translate national priorities into clear, credible, and globally recognisable purposes aligned with the UN Sustainable Development Goals. “It will be syariah-based, aligned with Maqasid al-Shariah Guidance by SC Malaysia, and adopt the Asea Taxonomy and the international green bond principles,” Mohammad Faiz said. The 17th SC-OCIS Roundtable 2026, themed “Building Resilience: The Intersection Between Capital, Climate and Innovation”, is organised annually by the SC and the Oxford Centre for Islamic Studies (OCIS) and was held at the Oxford Centre for Islamic Studies in the United Kingdom. The roundtable brings together industry practitioners, policymakers, regulators, and scholars, including leading international specialists in their field.

Sim delivering the speech on behalf of the minister at Data Centre Nexus 2026 in Kuala Lumpur yesterday. – BERNAMAPIC