Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Sept 21): The pandemic has changed the old ways of how businesses and owners earn a living, shop, learn and play, with electronic transactions coming to the fore, said Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

In his opening keynote address at the Malaysian Banking and Finance Summit 2021, Tengku Zafrul highlighted that in just one year up to June 2021:

  1. e-wallet volume increased 89% to 468 million transactions;
  2. merchant participation for QR payments jumped 57% to one million registrations; and
  3. online banking volume improved 36% to 12.1 billion transactions.

However, he said that new challenges are emerging in the form of more dangerous variants and growing community transmissions, reflecting the difficult path to recovery.

"Despite these challenges, I am optimistic that we are at the cusp of recovery," he said.

Addressing the banking sector, Tengku Zafrul urged financial institutions in Malaysia to sign up to the United Nations (UN) Environmental Programme Finance Initiative’s Principles for Responsible Banking towards “building back better” in conjunction with the country’s economic recovery.

He said that the banking industry must play its part in the climate and sustainability agenda.

“As a mobiliser of capital, the banking industry is key in facilitating the transition of companies towards low-carbon and sustainable practices via financing and investment beyond the pandemic, be it supporting renewable energy adoption, new technologies or novel ways of doing business,” he said.

He noted that at a global level, 45% of the global banking industry had signed up to the UN Environmental Programme Finance Initiative’s Principles for Responsible Banking, of which 44 of them had formed a Net-Zero Banking Alliance, planning to fully decarbonise their loan books.

“I urge more financial institutions in our country to follow suit, which will augment their business with the objectives of the Sustainable Development Goals (SDGs) and the Paris Agreement.

“Doing so will ensure the deep integration of sustainability across all business areas of a bank from strategic decisions and credit appetite to procurement,” he added.

Tengku Zafrul said efforts like these will certainly complement the government’s embrace of the UN SDGs in its annual Budgets.

“Beginning with Budget 2021, this feature will be continued in Budget 2022, as well as through wider initiatives like SDG-aligned 12th Malaysia Plan (12MP) and the Shared Prosperity Vision 2030,” he added.

Edited BySurin Murugiah
      Print
      Text Size
      Share