Malaysian lender RHB Bank Berhad has launched a MYR 1 billion ($220 million) sustainable trade finance program/-i (STFP/-i) to empower Malaysian businesses to adopt low-carbon practices and advance sustainability across their trade operations.

This landmark initiative underscores RHB’s ongoing commitment to driving the national sustainability agenda and equipping businesses with the necessary financial tools to thrive in an increasingly climate-conscious economy, the bank said in a statement on Tuesday.

The STFP/-i is specifically designed to support corporate, commercial, and small and medium-sized enterprise (SME) customers engaging in environmentally sustainable and climate-friendly trade transactions.

By offering short-term, multi-tenured financing, the program addresses working capital needs for activities such as renewable energy production, energy-efficient solutions, and other low-carbon ventures.

This initiative also facilitates incremental integration of sustainability practices, helping businesses transition responsibly while minimizing sustainability related risks.

“As Malaysia progresses towards a net-zero economy by 2050, businesses face increasing pressure to align with sustainability imperatives,

“At RHB, we believe that a well-structured and responsible transition is essential to balance environmental goals with economic resilience,” said Angus Salim Amran, Head of Sustainable Finance at RHB Bank Berhad.

According to him, the MYR 1 billion STFP/-i enables businesses to decarbonize their supply chains while capitalizing on emerging opportunities within the green economy.

“This initiative demonstrates our commitment to driving meaningful change and supporting our clients’ sustainability journey,” he added.

The STFP/-i forms part of RHB’s larger sustainability vision, which includes mobilizing MYR 50 billion ($11.18 billion) in sustainable financial services by 2026.

By prioritizing sectors outlined in Malaysia’s National Energy Transition Roadmap (NETR), the program aims to create ripple effects across supply chains, contributing to reducing carbon emissions and promoting a low-carbon economy.

“Through the STFP/-i, we are fostering an ecosystem where businesses can unlock the true potential of climate finance while mitigating carbon-related risks,

“This initiative also reflects our strategy to deliver innovative sustainable financial solutions that price in the true cost of carbon risk to help businesses fulfill decarbonization and transition objectives,” said Amran.

He noted by acting now, businesses can benefit from lower decarbonization costs and position themselves for long-term success in a competitive market.

It is noted that this MYR 1 billion ($220 million) fund builds on RHB’s earlier sustainability financing program launched in 2021, further solidifying its role as a pioneer in climate finance.

With this latest initiative, RHB said it continues to lead the way in creating long-term environmental, social, and economic value, reaffirming its position as a trusted partner for businesses transitioning towards sustainability.

The RHB Banking Group, with RHB Bank Berhad as the holding company, is a fully integrated financial services group in Malaysia.

The group’s core businesses are structured into five main business pillars, namely group community banking, group wholesale banking, group Shariah business, group international business, and group insurance.

Its group community banking comprises retail banking and SME banking, while group wholesale banking comprises group investment banking, group corporate banking, group treasury and global markets, group asset management, commercial banking, transaction banking, and economics.

All five strategic business groups offer their financial solutions through RHB Bank Berhad and its main subsidiaries – RHB Investment Bank Berhad, RHB Islamic Bank Berhad and RHB Insurance Berhad, while its asset management and unit trust businesses are undertaken by RHB Asset Management Sdn. Bhd. and RHB Islamic International Asset Management Berhad.

The group’s regional presence now spans seven countries including Malaysia, Singapore, Indonesia, Thailand, Brunei, Cambodia, and Lao PDR.

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