Kuala Lumpur, 15 December 2025 — Against the backdrop of escalating climate risks across Asia, Malaysia convened a diverse cross-section of the country’s climate and financial ecosystem to accelerate new pathways for climate finance and strengthen national economic resilience.

Through its Climate Finance Network (CFN), the United Nations Development Programme (UNDP) Malaysia, Singapore & Brunei Darussalam hosted the high-level dialogue Mobilising Climate Finance for Malaysia’s Sustainable Future.

The initiative is supported by the Governments of the United Kingdom, Sweden and Norway and is implemented in partnership with Impact Investment Exchange (IIX Global).

The event brought together participants from micro, small and medium enterprises (MSMEs), government agencies, financial institutions, investors and development organisations to explore how Malaysia can unlock innovative financing at scale to drive a just, inclusive and sustainable transition.

In his welcoming address, Besian Xhezo, Deputy Resident Representative of UNDP Malaysia, Singapore & Brunei Darussalam, highlighted the growing urgency of climate action and the need for collective effort across stakeholders.

“We see strong climate ambition among enterprises, but limited access to sustainable finance, risk-sharing instruments and advisory support. No single institution can deliver Malaysia’s climate transition alone,” he said.

“What is needed is a shared effort to reduce risk, improve transparency and turn climate ambition into bankable opportunities.”

He noted that the event would serve as a platform to unlock innovative financing solutions, foster ecosystem collaboration, and strengthen the pipeline of climate-ready MSMEs.

“Global evidence is clear: investments in climate adaptation and resilience generate strong economic returns—often multiple times the initial investment—through avoided losses and productivity gains.

“Findings by the Global Commission on Adaptation suggest that every ringgit invested in tailored adaptation measures will deliver two to ten times the return in avoided losses or economic gains.

“The question is not whether MSMEs should be part of the transition, but how quickly we can equip them with the finance, data and capabilities they need to act,” he added.

Delivering Opening Remarks, His Excellency Ajay Sharma, British High Commissioner to Malaysia, reaffirmed the United Kingdom’s commitment to global climate finance mobilisation and its partnership with Malaysia.

“Unlocking finance is the crucial enabler for a just and orderly transition. It is the bridge between innovative ideas, fit for the Malaysian context, capable of cutting emissions and strengthening resilience, and their deployment at scale,” he said. 

He added that a supportive ecosystem is especially critical for SMEs:
“This effort requires a supportive ecosystem, particularly for the SME sector, which is the backbone of Malaysia’s economy and simply cannot be left behind. Today’s initiatives therefore aim to identify gaps and build the connections needed to channel finance to where it will have the greatest impact.”

H.E. Sharma also noted that the dialogue complements the UK’s broader climate collaboration with Malaysia, including through the Climate Action for a Resilient Asia (CARA) programme with UNDP and the newly launched UK PACT – Partnering for Accelerated Climate Transition portfolio.

“This represents a strong package of UK technical assistance, focusing on grids, renewables and forest conservation,” he said, adding that the United Kingdom, Sweden and Norway are united in their approach, while each brings distinct strengths and perspectives.

Also present as distinguished guests were His Excellency Niklas Wiberg, Ambassador of Sweden, and Her Excellency Marianne Fosland, Ambassador of Norway.

H.E. Niklas Wiberg said that: “Partnerships with public and private actors are central and that innovative tools and financing models should be used.”

Meanwhile, H.E. Marianne Fosland noted that: “By mobilising private capital and driving innovative solutions, the aim is to deliver a fair and sustainable transition to a low-emission future.”

Throughout the event, participants engaged with government agencies, financial institutions, investors, development partners and ecosystem enablers to explore SDG-aligned investments, strengthen networks, and identify opportunities to scale climate enterprises.

Key discussion topics included:
•    Bridging the climate financing gap and the role of climate finance;
•    Climate MSME Survey findings and validation, including presentation of key insights from the national survey; and
•    SDG-aligned investment opportunities across priority sectors.

During the event, participants were introduced to the Climate Venture Scaler — a programme supporting ventures that deliver climate mitigation or adaptation impacts at scale — and were encouraged to leverage additional support platforms such as MyClimate FinHub.

For more information on MyClimate FinHub, please visit:
https://www.undp.org/malaysia/projects/myclimate-finhub
 

To apply for the Climate Venture Scaler, visit:
https://www.undp.org/malaysia/projects/climate-venture-scaler