The taxonomy will also pave the way for plans that will be announced soon to mandate the adoption of climate related financial disclosures by financial institutions. In addition, we are supporting efforts by the Government to strengthen the capacity of development finance institutions to enable them to play a more significant role in crowding in sustainable finance from the private sector, supporting the capacity building needs of businesses in transition, and scaling up innovative financing mechanisms. In light of the current challenges faced by businesses and individuals, we see a greater need and significant prospects for new forms of blended finance to support the recovery process and meet transition challenges. To this end, the Bank is engaging with the financial industry, including DFIs, and other key stakeholders on strategies to combine commercial lending with alternative funding sources such as philanthropic funds and social finance instruments. This includes upscaling existing pilot programmes. Such blended finance solutions will be important to reduce debt levels and future risks to growth and financial stability. During this period, the Bank has also established concessionary financing facilities dedicated to help SMEs automate and digitalise their operations. This will enable them to take advantage of new technologies to enhance income streams and build greater resilience. Thirdly, we believe collaborative partnerships will play a larger and more critical role in shaping financial policy going forward.
Jessica Chew Cheng Lian: Opening remarks - World Bank's Sustainable ExchangE Development Series (SEEDS) Opening remarks by Ms Jessica Chew Cheng Lian, Assistant Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the World Bank's Sustainable ExchangE Development Series (SEEDS), 25 October 2021. * * * Good morning. It is a privilege and pleasure to be a part of this year’s edition of the World Bank’s webinar series on sustainable finance. We are grateful to the World Bank for organising this programme. Learning from our peers continues to be one of the most important and practical ways in which we can help each other effect meaningful change to ensure that finance truly serves our communities. The effects of the COVID-19 pandemic have now been with us for almost two years. While ambitions to pursue sustainable finance goals started well before the pandemic, the pandemic will surely be remembered as a defining period in shaping the path taken to a more sustainable future. The pandemic has extracted an enormous toll not only on global health, but also on poverty levels and inequality. More vulnerable groups, including those who earn lower incomes, have lower levels of education, or are holding less secure jobs, have borne a disproportionate brunt of the fallout from the pandemic. While policy measures are helping to mitigate these effects in the short term, the longer lasting impact on society and future economic prospects are likely to be far more significant. This could amplify pre-existing inequalities, particularly in emerging economies.