KUALA LUMPUR, Sept 21 — Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz reminded the private sector today that its shift towards sustainable practices could create new social fault lines, stressing that the green economy must not be an exclusive club for those with resources.
Tengku Zafrul made the strong assertion as he addressed policy makers and real estate players at a green housing conference organised by the National Mortgage Corporation (Cagamas) here.
The senator told the mostly international audience that the transition towards green goals cannot end up alienating the poor or smaller businesses.
“Note that whether they are tax incentives, private sector initiatives, or financing and investment facilities, what is key is to ensure that the transition towards sustainability will not disenfranchise the poor, or systematically exclude the micro-SMEs,” he said in a keynote address.
“If a ‘greener’ house is on the market, is it financially accessible to lower-income buyers? If compliance costs are too high, small and micro businesses may eventually be pushed out of the market.”
Putrajaya has made environmental, social and governance goals a hallmark of its development blueprints, being featured in all key plans for the next ten years.
Tengku Zafrul said the Malaysian government is the first in the world to issue the sovereign, dollar-denominated Sustainability Sukuk in April 2021 to the value of US$800 million (RM3.64 billion).
The sukuks were reportedly oversubscribed by 6.4 times across the world. The proceeds from the issuance were used to finance sustainability related programmes and projects.
