Alliance Bank Malaysia Bhd group chief strategy, marketing and business development officer Dr Aaron Sum (second left), InvestSarawak chief executive officer Timothy Ong (centre) and UNGCMYB executive director Faroze Nadar (right) exchanging the MOU documents, witnessed by Deputy Premier Datuk Amar Awang Tengah Ali Hasan (fourth left). - ZULAZHAR SHEBLEE/The Star
KUCHING: Green financing amounting to RM1bil will be available to Sarawak SMEs to adopt sustainable practices.
This comes after a memorandum of understanding (MOU) was signed by InvestSarawak, an agency under the state International Trade and Investment Ministry, the UN Global Compact Network Malaysia and Brunei (UNGCMYB) and Alliance Bank here on Friday (Nov 10).
Deputy Premier Datuk Amar Awang Tengah Ali Hasan said the MOU would extend RM1bil in green financing for Sarawakian SMEs in sustainable-trade readiness and business resiliency towards environmental, social and governance (ESG) compliance.
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"By partnering with the right parties such as UNGCMYB, coupled with the support of financial institutions like Alliance Bank, we can provide seamless transition for SMEs which are the backbone of our economy," he said at the signing ceremony.
Awang Tengah said InvestSarawak would continue to develop and promote similar initiatives to benefit local SMEs and businesses so that Sarawak could build resilient and sustainable supply chains.
He called on SMEs to take the opportunity to adopt ESG principles to add value to their products and services.
"Many SMEs remain cautiously optimistic about ESG and corporate social responsibility (CSR) initiatives.
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"However, if we do not keep up with the latest developments including ESG and align ourselves with the global economy's trajectory, we will become obsolete," he said.
Awang Tengah also said Sarawak had the potential to lead ESG adoption and be a regional powerhouse for sustainable industries.
He said the state was pursuing initiatives such as green hydrogen, sustainable aviation fuel and renewable feedstock cultivation.
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"This paves the way for us to become an important global value chain, but the strength of our new economy lies with the SMEs and their ability to accept these new business opportunities," he said.
In addition, Awang Tengah said Sarawak was now focusing on promoting low-carbon solutions and a green economy.
"We also aim to be a regional leader in innovation and a high technology-based economy.
"With the post-Covid development strategy, we are promoting growth that results in economic prosperity, social inclusivity and environmental sustainability," he said.
