CIMB Islamic, MATRADE & MGTC sign tripartite collaboration
A memorandum of Cooperation (MoC) between CIMB Islamic Bank (CIMB Islamic), Malaysia External Trade Development Corporation (MATRADE) and Malaysian Green Technology and Climate Change Centre (MGTC) was signed in conjunction with MIHAS 2021.
This strategic collaboration aims to accelerate the growth of Malaysia’s green exporters by nurturing SMEs through a series of coordinated initiatives and the sustainability ecosystem, in positioning Malaysia as a Sustainable Trading Nation.
The partnership also reflects Malaysia’s commitment to streamlining global trends that demand more sustainable products and services. It is in a report from FTSERussell that the global green market value was US$4.3 trillion in 2020.
Realising the importance of sustainability agenda for the Malaysian economy and exports, MATRADE embarked on its sustainability initiative, namely the Corporate Shared Values Programme for exporters or Sustainability Action Values for Exports (SAVE).
SAVE, a programme with a high-level objective of engaging Malaysian exporters to embrace the best practices of sustainability, was launched on Oct 9, 2019.
Following the launching of SAVE, MATRADE inked an MoU with CIMB Group Holdings Berhad (CIMB) on Feb 4 and conducted a series of SAVE awareness and capacity building programmes to enhance SME exporters’ understanding of sustainability in the context of international markets.
These included subjects such as the benefit and cost of sustainability and developing and implementing a sustainability plan. In 2020, a total of 196 SMEs exporters participated in the joint programmes.
The MoC would feature specific roles by the three parties.
CIMB Islamic, MATRADE and MGTC pledged their total commitment to work closely together in realising the vision of the MoC in identifying ‘green trade corridors’ and mobilising a unified support ecosystem to help kickstart and propel SMEs forward by taking advantage of these corridors.
According to MATRADE’s Chief Executive Officer, Mohd Mustafa Abdul Aziz, the tripartite collaboration between MATRADE, MGTC and CIMB Islamic is timely to drive and strengthen Malaysia green exports.
Establishing the right partnership
“Among others, this strategic partnership will expand the pool of potential green exporters beyond our current registry, thus opening up wider opportunities for green SMEs to go global,” said Mohd Mustafa.
“Besides, complying with sustainability requirements would enable exporters to enhance their competitiveness in the international market through better access and more robust demand.
“We look forward to this MoC to provide a more coordinated and structured effort in developing and supporting Malaysia’s green exporters as well as enhancing Malaysia’s global branding.”
Shamsul Bahar Mohd Nor, MGTC Chief Executive Officer, said it was imperative to establish the right partnership to chart the path towards Malaysia’s green economy and support Malaysia’s green industry players in the international market.
“It is crucial to develop the right ecosystem to push for a greener economic sector which later contributes to the overall Malaysian economy in the long run,” said Shamsul.
“In positioning Malaysia as a Sustainable Trading Nation, the International Greentech & Eco Products Exhibition and Conference Malaysia (IGEM) has established itself as South East Asia’s largest trade event for green technologies and eco-solutions.
“However, to have better access to the global market, it is important for companies to meet the sustainability requirements which MGTC will continue to support and facilitate in their journey.”
Ahmad Shahriman Mohd Shariff, Chief Executive Officer of CIMB Islamic Bank Berhad, said the Malaysian Green Exporters Programme was a natural complement to CIMB’s GreenBizReady initiative. It is a one-stop solution for launching Malaysian SMEs on their sustainability journey, with an allocation of RM250 million until 2024.
“It is also aligned with CIMB Islamic’s commitment to Value-Based Intermediation as a responsible Islamic banking institution, with practices and offerings that generate a positive and sustainable impact to the economy,” said Ahmad.
“With this tripartite collaboration through the MoC with MATRADE and MGTC, CIMB would be able to continue delivering support for capacity building to SMEs in fulfilling their sustainability aspirations.
“CIMB’s Trade Club Alliance, a global network made up of 14 banking groups from around the world, further adds tremendous value as a global trade gateway for businesses to scale not only locally but globally.”
Environmental, social and governance principles in sustainability (ESG) have become an integral part of business management. Global consumers are advocating for supporting and buying products from companies that are committed to sustainability.
As for the businesses themselves, the Covid-19 pandemic has increased the need to embrace sustainability. It is reflected by companies that have adopted sustainable practices and are involved in green-oriented exports were shown to rebound faster than others that have not. — @Green