PETALING JAYA: Malaysia will fully adopt the Asean Taxonomy for Sustainable Finance as the basis for the national Malaysia Taxonomy, following an agreement by members of the Joint Committee on Climate Change (JC3).
The decision was reached at JC3’s 17th meeting held on Aug 6, according to a joint statement by Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC) today.
The move is expected to enhance regional interoperability, consistency and comparability in sustainable finance, while reducing the operational burden on businesses, particularly those involved in cross-border trade.
JC3 will develop practical guidance and tools tailored to local implementation, with a pilot involving selected members to be conducted before full adoption for reporting in 2028.
The pilot will help identify implementation challenges and inform further refinements where necessary.
“A taxonomy is only effective if it can be applied consistently and confidently,” said BNM assistant governor and JC3 co-chair Madelena Mohamed.
“As Malaysia adopts the Asean Taxonomy as the foundation of the Malaysia Taxonomy, JC3 will focus on developing practical implementation guidance and tools to support its use.”
“The pilot will help identify operational challenges early and ensure the framework remains fit for purpose and relevant for Malaysia’s needs,” she said.
JC3 is a platform established in 2019 to drive collaborative action to build climate resilience within Malaysia’s financial sector.
It is co-chaired by BNM and the SC, with members comprising senior officials from Bursa Malaysia and 25 financial industry players.
