KUALA LUMPUR, Oct 20: Bursa Malaysia and the Malaysia Forest Fund (MFF) have joined forces to push forward Malaysia’s green economy efforts, particularly in the areas of forest conservation and carbon trading.

The two organisations signed a Memorandum of Collaboration (MoC) during the 3rd Malaysia Carbon Market Forum, hosted by the Bursa Carbon Exchange (BCX). The agreement focuses on exploring new ways to develop Malaysia’s carbon market and strengthen Environmental, Social, and Governance (ESG) initiatives.

MFF, which manages the REDD Plus Finance Framework, runs two key programmes — the Forest Conservation Certificate (FCC) and the upcoming Forest Carbon Offset (FCO). These programmes aim to protect Malaysia’s forests while offering financial incentives for conservation.

Under the two-year partnership, Bursa Malaysia and MFF will explore forest conservation efforts in ESG-themed stock indices to encourage listed companies to support environmental projects, and promoting awareness of Malaysia’s upcoming national carbon credit system.

In addition, it will also cover the enablement of both local and international companies to trade forest carbon offsets on the Bursa Carbon Exchange, as well as the development of infrastructure such as registries and tracking systems to ensure transparency and compliance with national environmental policies.

Dato’ Fad’l Mohamed, CEO of Bursa Malaysia, said the collaboration reflects a shared goal to promote forest protection through both business-driven and policy-based approaches. He added that the new national carbon credit system will allow Bursa Carbon Exchange to offer both local and international carbon credits, expanding opportunities for businesses to reduce their carbon footprint.

Suhaini Haron, Senior Director of Corporate Development and Strategy at MFF, described the partnership as an important step towards Malaysia’s goal of becoming a low-carbon nation. “The Forest Carbon Offset programme is a major milestone in Malaysia’s commitment to climate action,” she said. “By allowing these carbon credits to be traded on Bursa Carbon Exchange, Malaysia can position itself as a regional leader in credible and transparent carbon markets while keeping our forests valuable for generations to come.”

The signing was witnessed by YB Datuk Seri Johari Abdul Ghani, Minister of Plantation and Commodities and Acting Minister of Natural Resources and Environmental Sustainability.