Increasingly, we see more of Malaysia’s industries and companies face scrutiny and challenges in their international business due to unsustainable and questionable practices. As an example, let’s consider the palm oil industry. This has been one of the largest industries that has contributed immensely to the country’s economy for quite some time. Yet, it’s an industry that needs to overcome real and perceived unsustainable practices and reduce its impact on the environment. If left unaddressed, this could threaten the long-term viability of this sector, and threaten domestic employment and industry. Palm oil players need to transform many aspects of their operations to achieve sustainability, and DFIs can play a catalytic role in this transformation. Firstly, DFIs can prioritise financing agritech to enhance the climate resilience of the palm oil industry, promote trust in terms of product origin and upscale the value chain of palm oil. Some examples of these technologies are; blockchain application which can improve traceability of palm oil inputs and contributing towards better acceptance of palm oil produce from Malaysia; precision farming which benefits the environment through more targeted use of inputs that can reduce wastages from excess applications; as well as financing new growth areas that Malaysia is developing competitive advantages in, such as biodiesel and green oleochemicals. Secondly, DFIs can consider providing sustainability-linked loans to encourage smallholders to work towards adopting relevant sustainability certifications such as RSPO and MSPO.

Zeti Akhtar Aziz: Unlocking finance, expanding impact Keynote address by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Responsible Finance Summit “Unlocking Finance, Expanding Impact”, Sasana Kijang, Kuala Lumpur, 30 March 2016. *  *  *  It is my distinct honour and pleasure to welcome you to Malaysia and to this Responsible Finance Summit for 2016, with the theme "Unlocking Finance, Expanding Impact". The theme gives strong recognition to the essential role of finance in driving sustainable development and growth in the world today. It is now almost a decade since the eruption of the global financial crisis. Despite the challenges, much progress has been made to forge a vision for a stronger post-crisis world. Whilst having to strike a balance between pursuing financial stability and the potential increased costs to financial intermediation, efforts have been made through the global financial reforms towards more sustainable financial systems. This includes the recalibration of financial regulations to curb tendencies for excessive leveraging, strengthened regulatory and supervisory systems that are forward looking and responsive to risk, as well as provisioning standards that reduce procyclicality and that restrain the build-up of risks. In addition, advancing consumer protection, furthering financial education and literacy as well as improving access to financial services have remained important long-term items on the agenda. In tandem with these efforts to strengthen financial stability, the role of finance is also being re-examined to enhance its positive impact.