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PENANG has gone ahead with its commitment to offer sustainable solutions with the launch of the Climate Mitigation Fund (CM Fund) with an initial capital offering of RM20 million despite concerns over global economic uncertainties.
With the Iranian war booming in the background, which has triggered fuel shortages the world over, Penang has reaffirmed its commitment with corporate partner - Alliance Bank to offer a fund to underwrite projects under the environmental, social, and governance (ESG) framework.
Chief Minister Chow Kon Yeow said the fund is a collaboration between Alliance and the state government under the Penang Green Industry Programme (PGIP).
“As a show of our commitment to collaborate, we are putting in RM5 million, and the understanding is that Alliance will put in three times the amount, so we have a total of RM20 million to start,” he said after launching the Penang Green Industry Forum 2026 at The Olive Tree Hotel.
He said Alliance has also committed RM100 million to the fund over a fixed period.
The CM Fund is open to all small and medium enterprises (SMEs) to apply for low-interest financial support to adopt green operations, with technical help available for solutions such as rainwater harvesting, solar energy and recycling.
Chow said that this fund is important for local SMEs as global supply chains increasingly demand strong ESG compliance if they want to stay competitive.
There are also grants under the programme for industries.
“Sustainability is no longer optional. It is a business imperative,” he stressed.
Chow underscored that as Penang remains one of Malaysia’s key industrial drivers, especially in the electrical and electronics sector, the future competitiveness will depend on how quickly industries adapt to the ESG requirements.
Alongside the fund, the state also launched SHIFT @ PGIP, Sustainable & Holistic Industry Forward Transformation, a platform aimed at helping manufacturers, especially SMEs, strengthen sustainability readiness.
Chow said manufacturers will have access to the Consumer Sustainability Industry Readiness Index (Cosiri) under the programme.
Cosiri is an internationally recognised assessment framework that allows companies to evaluate sustainability maturity and identify areas for improvement.
He said the framework will be useful for SMEs to remain competitive in international markets where sustainability standards are becoming increasingly stringent.
He said the Penang Green Council has certified Cosiri assessors to guide manufacturers through sustainability assessments and implementation strategies. - April 28, 2026.
