KUALA LUMPUR: Aligned with its commitment to supporting and future-proofing small and medium-sized enterprises (SMEs) in the Halal sector, Hong Leong Islamic Bank (HLISB) has become a participating bank in Bank Negara Malaysia’s (BNM) Greening Halal Business (GHB) initiative.
This programme, supported by the Ministry of Finance (MoF), the Islamic Development Bank, and the World Bank, aims to support SMEs in their green transition while strengthening their competitiveness in the global market.
As part of this initiative, HLISB has signed a memorandum of understanding (MoU) with Pantas, an AI-enabled carbon management and ESG reporting platform.
Through this collaboration, HLISB will equip its SME customers with specialised carbon accounting software and comprehensive capacity building programmes, enabling businesses to accurately track and report direct and indirect greenhouse gas emissions, providing the granular data necessary for effective decarbonisation.
Customers can also apply for a subsidy of up to RM5,000 for an exclusive subscription, funded by a RM15 million MOF allocation.
HLISB CEO Dafinah Ahmed Hilmi emphasised that this initiative is a cornerstone of the Bank’s strategy to elevate the Malaysian Halal ecosystem.
“As an Islamic bank, sustainability is embedded in our DNA, as Shariah principles guide us to treat our environment and resources as an amanah (duty). By empowering Halal SMEs to integrate ESG practices into their core operations, we are not only enhancing their market value but also strengthening their intrinsic Shariah compliance.
“Our goal is to provide a roadmap for future-proofing where environmental stewardship and Shariah-compliant excellence go hand-in-hand. As global trade and foreign investment increasingly prioritise climate action, we are committed to ensuring our Halal businesses are resilient, marketable, and positioned at the forefront of the global green transition.”
Meanwhile, Pantas CEO and co-founder Max Lee expressed his enthusiasm for the partnership.
“We are honoured to be an integral part of this ecosystem, helping Halal businesses navigate the complexities of carbon accounting and sustainability. Our aim is to simplify the decarbonisation process, making calculating carbon emissions as easy as checking your email.
“By turning what sounds like a corporate burden into a competitive advantage, we are helping SMEs set a new standard in corporate responsibility and environmental stewardship.”
The GHB initiative addresses a critical need in one of Malaysia’s most vital economic sectors, where global competition increasingly hinges on ESG alignment. With BNM warning that Malaysian businesses could lose up to RM292 billion in total export revenues if they fail to keep pace with global standards, the shift toward sustainability is no longer optional.
By integrating green practices, Halal businesses can move beyond traditional certification to meet the sophisticated demands of the modern marketplace, enhancing their operational efficiency and long-term resilience.
Ultimately, this green transition ensures that SMEs are not just protecting their market access today, but are positioned as future-proof leaders in the global Halal economy.
Hong Leong Bank (HLB) chief sustainability officer, Chow Sheng Wai, also emphasised that these efforts are integral to HLB’s broader decarbonisation ambitions.
“The Malaysian Halal market is currently recognized as the global gold standard, which provides us with an opportunity to set that same benchmark for sustainability and climate action.
“This GHB programme aligns perfectly with our overarching goal of achieving net zero carbon emissions by 2050. As a leading financial institution, our role is to act as a catalyst for change, providing the necessary framework and tools to ensure both our organisation and our corporate customers undergo a responsible green transition.”
Starting in 2026, the GHB initiative will expand to offer dedicated green financing opportunities to fund specific ESG-aligned projects, turning sustainability roadmaps into reality.
Beyond the GHB programme, HLISB continues to offer comprehensive financing packages and specialised Halal advisory services through the BizHalal programme, designed to lower the barrier to entry for prospective Halal SMEs.
By combining climate action with Halal excellence, the bank is providing a holistic support system that simplifies the journey for businesses looking to thrive in a competitive, sustainability-driven global market.