Penang Launches RM20 Million Climate Mitigation Fund to Drive Green Industry Transition
GEORGE TOWN, April 27 — The Penang state government has introduced a RM20 million Climate Mitigation Fund (CM Fund) aimed at accelerating the transition of local industries—particularly small and medium enterprises (SMEs)—towards lower carbon operations.
Chief Minister Chow Kon Yeow said the initiative is a joint effort between the state government and Alliance Bank Malaysia Berhad under the Penang Green Industry Programme (PGIP).
“As part of this collaboration, the state is contributing RM5 million, while Alliance Bank is providing three times that amount, bringing the total initial fund to RM20 million,” he said after launching the Penang Green Industry Forum 2026.
He added that the bank has also expressed readiness to scale up its contribution to as much as RM100 million in the future, signalling long-term commitment to sustainable industrial development.
The CM Fund is open to SMEs seeking financing support at competitive rates to adopt environmentally friendly practices, including reducing carbon emissions and improving energy efficiency.
Chow noted that the move comes at a crucial time as global supply chains increasingly demand stricter compliance with environmental, social and governance (ESG) standards.
“This fund will help local companies stay competitive by aligning with global sustainability expectations,” he said.
Penang, long regarded as a key industrial hub in Malaysia—particularly in the electrical and electronics sector—must now adapt to evolving sustainability requirements to maintain its competitive edge, he added.
Alongside the fund, the state also launched SHIFT @ PGIP (Sustainable and Holistic Industry Transformation Forward), a platform designed to help manufacturers, especially SMEs, enhance their readiness in sustainability practices.
Through the programme, participating companies will gain access to the COSIRI framework, an internationally recognised tool that enables businesses to assess their sustainability maturity and identify areas for improvement.
Chow said initiatives such as the CM Fund and SHIFT @ PGIP are part of a broader strategy to future-proof Penang’s industrial ecosystem while supporting businesses in navigating the global transition towards greener and more sustainable operations.
-wilayah.com.my
