Alliance Bank RM 1billion Green Finance

On November 10, 2023, Alliance Bank Malaysia Berhad, InvestSarawak Sdn Bhd, and the UN Global Compact Network Malaysia & Brunei signed a tripartite Memorandum of Understanding (MoU) in Kuching, aiming to boost an inclusive climate transition for SMEs through the "Climate Inclusive Financing & Development Programme." 

InvestSarawak, a new entity under the Ministry of International Trade, Industry and Investment (MINTRED) Sarawak, is set to assist local businesses in securing financing opportunities to propel their growth, particularly by supporting green growth ambitions through sustainability-linked transition projects and initiatives.

Alliance Bank will allocate RM1 billion in green financing to facilitate Sarawakian SMEs in developing their environment, social, and governance (ESG) roadmaps, steering them towards sustainable trade readiness and enhanced business resiliency.

The Kuching event also marked the official launch of the Promoting Green Resilient & Sustainable SMEs tool, abbreviated as PRO-GRESS, developed by UNGCMYB. PRO-GRESS, developed by UNGCMYB. PRO-GRESS is a simplified diagnostic tool designed to help SMEs measure their climate action maturity level, offers a peer benchmark, and generate a climate transition action plan for business owners. The resulting report will serve as a guide for SMEs towards sustainability and determine their Climate Readiness level, making them eligible for preferential financing rates from the Bank.

The collaboration also involves organizing roadshows focused on capacity-building, including advisory services, training sessions, and optimizing the use of the PRO-GRESS tool. The inaugural workshop in Kuching saw active participation from over 50 SMEs, government agencies, and local business associations under the theme "From Sarawak to The World."

Dr. Aaron Sum, the Bank’s Group Chief Strategy, Marketing & Business Development Officer, expressed pride in the collaboration with InvestSarawak and UNGCMYB, highlighting their shared values and the importance of SMEs transitioning towards sustainability for continued growth. The RM1 billion financing program is aimed at supporting Sarawakian SMEs in their green journeys, fostering business resilience, and positioning them to capitalize on new growth opportunities, aligning with the group’s strategic initiative Acceler8 to expand its presence in the rapidly growing economic corridor of Sarawak.

Faroze Nadar, Executive Director at UNGCMYB, emphasized the growing emphasis on businesses adopting climate-friendly practices to mitigate their environmental impact, drive innovation, foster resilience, and create value for stakeholders. He commended the partnership with Alliance Bank and InvestSarawak for taking an innovative and uncommon approach to empower and incentivize SMEs, extending tools and financing beyond traditional corporate supply chain approaches. The collaboration's inclusive nature adds a unique dimension to their collective efforts.

(Source : https://www.alliancebank.com.my)