IFC and Cagamas Forge Strategic Partnership to Advance Green Building Finance and Sustainable Housing in Malaysia

The International Finance Corporation (IFC), a member of the World Bank Group, has signed a Memorandum of Understanding (MoU) with Cagamas Berhad, Malaysia’s National Mortgage Corporation, to enhance green building finance and support the country’s sustainable development goals.

Promoting Climate-Smart Investments

The partnership aims to equip financial institutions with sustainable finance solutions, including green bonds, credit lines, and green cooling initiatives, to accelerate climate-friendly investments in Malaysia’s construction and housing sectors. It also seeks to help financial institutions develop a pipeline of viable green projects while effectively managing environmental, social, and climate-related risks.

Enhancing Financial Inclusion and Market Growth

A key component of the collaboration is fostering dialogue between the public and banking sectors to address challenges in sustainable housing. The initiative will focus on expanding affordable green housing, particularly for women and low-income groups. By strengthening the market for green mortgage products, the partnership aims to bridge gaps in housing finance and promote wider accessibility.

Supporting Malaysia’s Net-Zero Goals

Scaling green building finance is a critical step toward Malaysia’s target of achieving net-zero emissions by 2050. This initiative introduces innovative financing solutions that align with the country’s climate commitments under the Paris Agreement while bolstering economic resilience.

Judith Green, Country Manager for the World Bank Group in Malaysia, emphasized the significance of the collaboration, stating, “We are delighted to collaborate with Cagamas on this engagement, which will play a critical role in supporting not only the increasing need for green housing in Malaysia but also the country’s inclusivity agenda.”

This initiative marks IFC’s first major program in Malaysia’s green building sector since establishing its presence in the country in 2023.