Malaysian Regulators Seek Feedback on New Sustainable Finance Taxonomy

Malaysia’s financial regulators have invited public feedback on a proposed national sustainable finance taxonomy designed to guide climate-aligned investments and reduce the risk of greenwashing. The consultation was launched by the country’s central bank and securities regulator as part of efforts to strengthen sustainable finance standards. The proposed taxonomy aims to unify Malaysia’s existing sustainable finance frameworks and align them with the regional ASEAN taxonomy for sustainable finance. By providing clearer definitions and screening criteria, regulators hope to help financial institutions classify environmentally sustainable economic activities more consistently. Authorities said the framework will include science-based criteria to assess climate-related investments and introduce principles covering biodiversity protection, ecosystem health and resource efficiency. The taxonomy is also expected to support the transition to a circular economy while incorporating social considerations into financial decision-making. Stakeholders including financial institutions, asset managers, government agencies and industry groups have been invited to provide feedback on the proposal before 14 April 2026. Regulators say the initiative will help strengthen Malaysia’s sustainable finance ecosystem and support the country’s broader climate transition goals.