KUALA LUMPUR (June 22): The Malaysian capital market needs to bring in more human capital to further expand the socially responsible investment segment in the country, according to Rozani Osman, a senior financial sector specialist at World Bank Malaysia.

Socially responsible investing, also known as sustainable investing, requires the consideration of environmental, social and governance (ESG) factors in the investment process with the goal of achieving a better and more sustainable future for society as a whole.

"An important issue to focus on is human capital and talent. What we have seen in financial markets is that knowledge is still spreading, but we need to build more capacity in the financial market," Rozani said on the first day of the SRI 2022 virtual conference titled "Preserving the Climate through Sustainable Business and Living" on Wednesday (June 22).

In addition, Rozani said it is also important for the non-financial sectors to know about the sustainable investment agenda.

"We need to include the non-financial sectors in this [agenda] because many of these sectors do not know what sustainability is. They do not understand it. And if they do not understand it, it's harder to get them to support this whole ESG [investing] agenda. So, it's very important to pass that knowledge on to the other sectors," he explained.

Maybank Investment Bank Bhd chief executive officer (CEO) Datuk Fad'l Mohamed, meanwhile, said the bank will continue to play an intermediary role to mobilise capital for sustainable outcomes in the ESG agenda. 

"Maybank is focused on our goal of mobilising RM50 billion in sustainable finance by 2025. We want to support our clients in their transition and give them the confidence to venture into the sustainability space.

"However, we have also found that some people are not familiar with sustainable finance and the additional requirements that come with it," he said.

“[I think] more capability building, training and development [need] to be pushed towards upskilling asset managers and sustainable investing,” the CEO added.