Bank Islam Malaysia Berhad is showing its commitment to sustainable finance with the launch of IHSAN Financing for Business Resilience, Sustainability and Green Transition (IFiRST), a new financing solution designed to help small and medium-sized enterprises (SMEs) and mid-sized companies transition toward greener, low-carbon business models.
The launch, held during the inaugural Bank Islam Sustainability Conference 2025 on 19 June, marks another major milestone in the bank’s long-term ESG journey.
Group Chief Executive Officer Dato’ Mohd Muazzam Mohamed said the initiative reflects Bank Islam’s commitment to a just and inclusive transition across all segments of the economy.
“IFiRST strategically focuses on carbon-intensive sectors, incorporating access to facilities, such as Bank Negara Malaysia’s Low Carbon Transition Facility (LCTF).
“This integrated approach helps businesses overcome financial and operational banker operational barriers in their sustainability journey, ensuring that no stakeholder is left behind,” he said.
He also stated that through IFiRST, they aim to empower businesses to not only survive in a changing climate, but to thrive by embedding sustainable practices into their operations.
“This solution provides tailored financial support and equal access, particularly for SMEs and mid-sized companies that often face financial or operational barriers in their sustainability journeys,” he added.
The new financing scheme also aligns with Malaysia’s broader goals of reducing carbon emissions and building climate resilience, as outlined in the nation’s climate policies.
Bank Islam’s leadership in Islamic sustainable finance is further strengthened by this launch. As of December 2024, the bank has already reached 93% of its revised FY2025 target of RM28 billion in sustainable assets and financing, a testament to its strong market momentum and the increasing demand for ESG-aligned solutions.
This achievement has been driven by Bank Islam’s expanding portfolio of green and socially responsible financial products, including the Ihsan Sustainable Investment Account (ISIA) and the SME SMART Eco Financing Programme-i.
The bank has also emphasized its role as a knowledge-sharing partner, providing advisory support and capacity-building for businesses navigating the green transition.
Beyond financing, Bank Islam is preparing to implement its Climate Transition Plan, a strategic roadmap that outlines its ambition to achieve net-zero carbon emissions by 2050.
This plan will guide the bank’s efforts to grow its green asset base, manage climate-related risks, and work closely with high-impact industries on sustainability integration.
During the conference, themed “Accelerating a Just Transition Towards a Nature-Positive Economy”, Bank Islam also formalized strategic collaborations with Mastercard and Thoughts in Gear, alongside a key partnership with Elopura Power Sdn Bhd, a subsidiary of Sabah Electricity Sdn Bhd. These collaborations aim to boost momentum toward an inclusive low-carbon economy.
The event was officiated by Dato’ Nor Azmie Diron, Secretary General of the Ministry of Economy, and attended by policy makers, financial leaders, and sustainability stakeholders across industries.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
