Corporate resilience and climate adaptation lead SC priorities

By the Editorial Team · Tuesday, September 29, 2026

Malaysia’s financial regulators, led by the Securities Commission, are intensifying efforts to mobilize capital for climate adaptation and resilience, emphasizing new sustainability disclosure standards and innovative financing mechanisms. This initiative addresses the massive estimated adaptation cost of up to US$1.1 trillion by 2050 and aims to align financial markets with the country’s long-term climate and economic stability goals.

KUALA LUMPUR — Malaysia’s financial regulators are intensifying efforts to address the escalating economic impact of climate change by reexamining how capital is mobilized to support climate adaptation and resilience. This was emphasized by Securities Commission (SC) chairman Datuk Mohammad Faiz Azmi during his keynote speech at the Joint Committee on Climate Change's Journey to Zero Conference held from September 28 to 29 at Sasana Kijang, Bank Negara Malaysia.

The conference, themed “Building Climate and Nature Resilience for People and Business,” highlighted the urgent need to scale up investments to meet climate-related challenges. Mohammad Faiz pointed out that Malaysia’s climate adaptation requirements are estimated to range between US$852 billion and US$1.1 trillion by 2050—an amount comparable to the country’s capital market size, which currently stands just above US$1.1 trillion.

According to the SC chairman, mobilizing capital for climate adaptation forms a critical pillar of the commission’s sustainability agenda. This approach not only aims to embed sustainable practices within financial markets but also seeks to enhance corporate resilience, support sustainable economic growth, and improve access to funding for businesses.

To support these objectives, the SC is advancing several initiatives. These include encouraging adoption of the International Sustainability Standards Board’s S1 and S2 disclosure standards, implementing the National Sustainability Reporting Framework known as the Kembara programme, and enhancing sustainability-related disclosures. Mohammad Faiz described sustainability disclosures as "stress tests" of a company’s future resilience, complementing traditional financial statements that offer snapshots of present financial health.

Despite these efforts, challenges remain. Mohammad Faiz acknowledged that climate adaptation projects often lack strong commercial viability, limiting their attractiveness to private investors. This difficulty in securing private capital hampers financing for public infrastructure aimed at climate resilience. In response, the SC is exploring innovative financing mechanisms and structures to bridge this gap and effectively channel investments into adaptation projects.

As climate change continues to pose significant economic risks, Malaysia's regulatory focus on unlocking capital for climate resilience underscores the importance of aligning financial markets with long-term sustainability and national adaptation goals.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.