Financing growth for a resilient economy

Geoeconomic confrontation, now the leading global risk for the foreseeable future, is threatening to derail multilateral ties – a vital cog to sustainable development. From spurring investments into adaptation projects to accelerating cross-border clean energy trade, multilateralism is key to bolstering economic resiliency while adapting to emerging climate risks.

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This session will explore the progress Malaysia and the region has made towards the Sustainable Development Goals (SDGs), answering critical questions such as: What is the outlook for global sustainable finance within a fragmented global landscape? Can regional trade blocs such as Asean counter the policy backpedalling observed in other markets? Where are the remaining governance gaps in the region, and how will these impact national transitions?

Malaysia, like other countries in the region, is formalising a National Adaptation Plan (MyNAP) to cope with mounting climate and disaster risks which disproportionately impact the most vulnerable of society. Spurring long-term financial flows into urgent adaptation needs, however, will hinge on strong institutional coordination, formalised planning processes and stakeholders’ technical capacity to deliver these projects.

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This session convenes leading decision-makers in the space, tackling questions such as: How do we build in risk assessments and scenario planning to improve project viability and attract public-private funds? What strategies are needed to strengthen national and local implementation capacity? And how do we build ROI frameworks around private sector and local community needs?

Theme A: Nature’s got talent: How nature and biodiversity are shaping finance and business strategy (AmBank Group and PwC Malaysia)

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There is growing urgency for companies to manage their impact on nature, with biodiversity loss exacerbating climate change through the loss of vital carbon sinks and ecosystems. Though over half of Malaysia’s stock market is dependent on nature for their operations, there is still a need to build the business case for nature, aligning the needs of investors and companies while recognising nature’s inherent complexities.

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This in-depth masterclass will focus on the emerging expectations around nature and biodiversity, particularly how they relate to sustainability reporting and can be linked to implementation at the corporate level. The masterclass will also feature an interactive session where participants will learn how to integrate nature into their business strategy and risk management, and its impact on financing and reporting.

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‍Theme B: Empowering Malaysian SMEs to turn climate risks into business opportunities (UNDP, Generali and Funding Societies)

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From floods to resource scarcity, climate change is drastically affecting Malaysian SMEs’ bottom lines, with many companies faced with supply chain bottlenecks and higher input costs, coupled with tightening regulations around carbon pricing and mandatory climate disclosures. While first-movers stand to gain competitive advantages from tackling these risks head-on, Malaysian SMEs often lack the knowledge and practical guidance to take that first step.

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This hands-on workshop will provide SMEs the practical tools to understand how climate change is creating tangible risks – and opportunities – for their business. Specifically, it explores the role of assessment tools in enabling SMEs to better understand their risk profiles, identify cost reduction avenues while strengthening long-term business resiliency and leverage green financing pathways to fund their sustainability transition.

The role of board stewardship is more urgent than ever, with geoeconomic confrontation, trade disruptions and economic headwinds calling for strategic leadership – starting from the boardroom. Directors at financial institutions, who hold the key to directing capital into urgently needed solutions, need to shift from compliance-based to proactive approaches to contend with these emerging risks while navigating the rapidly evolving challenges of climate change, ESG requirements and digital disruption.

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This session convenes leading board directors to build long-term financial strategies capable of withstanding external shocks and adapting to emerging needs. It asks: How do we strengthen decision-making through enhanced accountability, ESG integration and digital literacy? What role will disruptive technologies such as artificial intelligence play in identifying and responding to emerging risks? And how do directors secure political and public buy-in in an operating environment marked by policy recalibration and competing priorities?

Malaysia’s data centre boom, necessary to power artificial intelligence (AI) technologies, is riddled with debate: Will data centres’ excessive resource consumption create a new cycle of problems which we are ill-equipped to deal with? Though improving foreign direct investments through tech hubs such as Penang and Johor, does the lack of local workforce readiness risk an unjust transition? And does automation boost or weaken our ability to respond to rapidly evolving problems?

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This off-the-record debate will unpack these questions and more, exploring the future of data centres, AI and sustainable development in Malaysia.

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Note: This session is under Chatham House Rules and will be strictly off-the-record and not for media coverage.

Theme A: Closing the loop: Financing Malaysia’s circular economy

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The shift from a linear to a circular economy is vital to curb the waste crisis, support economic growth and enhance global competitiveness, with Malaysia producing an estimated 39,000 tonnes of solid waste daily left largely unrecycled. Schemes such as Extended Producer Responsibility (EPR), where producers are held account for a product’s entire lifecycle from production to post-consumer use, will underpin this urgent shift. However, creating the right financial mechanisms to support long-term economies of scale for circularity is key.

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This session will bring together policymakers, subject-matter experts and solution providers to discuss: How will Malaysia’s upcoming Circular Economy Act create the regulatory consistency needed to spur investments in critical infrastructure needs? What are the key technological solutions in waste segregation that need to be prioritised? And how should market mechanisms be positioned to ensure all stakeholders, from producers to informal workers and consumers, benefit equally from circularity?

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Theme B: Financing Malaysia’s Transitioning Industrial Clusters (Malaysia Centre for the Fourth Industrial Revolution, Securities Commission Malaysia and PEMANDU Associates)

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Transitioning Industrial Clusters (TIC) – geographical hubs where policymakers, industry and project owners are co-located – are designed to accelerate sustainable growth, industrial decarbonisation and the energy transition through shared infrastructure and solutions. Despite their potential, TICs often lack clear business cases and governance structures.

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This interactive dialogue convenes policymakers, financiers, industry and ecosystem enablers to examine how financing mechanisms, co-investment models and strategic partnerships can unlock large-scale industrial transformation and shared value. Specifically, it explores emerging financing opportunities, from blended finance to co-investment frameworks and portfolio-based capital mobilisation, through real-world projects, while strengthening engagement between these key stakeholder groups. ‍

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Note: This session is under Chatham House Rules and will be strictly off-the-record and not for media coverage.

Development of the Asean Power Grid (APG) is at a critical juncture, caught between high investment and implementation goals and a global energy crisis triggered by conflict in the Middle East. With more countries inking agreements to collaborate on clean power trade and infrastructure, and multilateral development banks committed to financing its rollout, the challenge now is to create the right commercial structures to scale these solutions.
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This session convenes regional decision-makers and experts to assess APG’s viability in delivering energy security and decarbonisation targets, answering key questions such as: How do we translate multilateral agreements into practical implementation? What strategies are needed to overcome transition bottlenecks including grid integration and cross-border interoperability? And will bankable ROI frameworks spur investments while strengthening political buy-in?