Keynote Address at the Launch of EKO Platform by BPAM

Speaker: Dato’ Zain Azhari Mazlan, Executive Director, Securities Commission Malaysia

Location: Le Meridien Kuala Lumpur
Delivered: 12 February 2025

Assalamualaikum warahmatullahi wabarakatuh, and a very good morning.

Salutation

Yang Berbahagia, En Meor Amri Meor Ayob
CEO of Bond Pricing Agency Malaysia,
Mr Chris Lee Wai Kit,
Board member BPAM and RAM Group CEO
Datuk Mark Rozario,
Cik Hasnah binti Omar,
Board members of BPAM,
Distinguished guests,
And esteemed colleagues,

Ladies and Gentlemen,

It is my great pleasure to be here today to celebrate the official launch of the EKO Platform by Bond Pricing Agency Malaysia (BPAM).
As the regulatory authority overseeing the capital market, the SC welcomes this significant milestone in advancing market innovation, efficiency, and transparency.

Malaysia Bond and Sukuk Market landscape

Malaysia’s capital market plays a pivotal role in the country’s financial ecosystem, spanning equities, bonds, sukuk, and innovative digital fundraising platforms.
Its breadth and adaptability have not only strengthened market resilience but also created opportunities to embed sustainability at the core of financial growth.
The SC remains dedicated to embedding sustainability into market practices by focusing on the three main pillars of the capital market’s response to climate change.
First by supporting a smooth transition from fossil fuels to renewable energy in line with the National Energy Transition Roadmap (NETR);
Second by developing the SC Malaysian Taxonomy to guide companies in classifying activities based on sustainability goals while aligning with the ASEAN Taxonomy; and
Third by enhancing sustainability-related disclosures to ensure transparency on climate risks and impacts.
While RM2.1 trillion in outstanding bonds and sukuk as at December 2024 reflects Malaysia’s capital market growth, our success goes beyond figures. Our vision is to build a market ecosystem that not only fuels economic expansion but also promotes sustainability and inclusivity.
In ASEAN, Malaysia ranks a close second highest ESG bond and Sukuk with a total outstanding amount of approximately US$15.4 billion, accounting for around 28% of ASEAN's total.

Ladies and Gentlemen,

BPAM has long been a key player in Malaysia’s bond and sukuk market, providing crucial pricing data and insights that support market confidence and integrity.
Today, with the launch of EKO, BPAM is taking another step forward in embracing not just digital transformation but movement towards a sustainable economy.
Developed to help financial institutions, issuers and investors, the platform provides securities classification based on SC’s Sustainable and Responsible Investment Taxonomy and Bank Negara Malaysia’s (BNM) Climate Change and Principle-based Taxonomy (CCPT) classification¹.
The EKO platform unifies all essential sustainability metrics and analytical tools for regulatory reporting into a single, user-friendly interface whilst eliminating the need to consult multiple sources².

Ladies and Gentlemen,

The Role of EKO in Strengthening the Capital Market

The EKO Platform is a testament to Malaysia’s commitment to leveraging technology for market enhancement.
It is designed to centralise all relevant sustainability metrics, incorporate a crowd-sourcing feature that leverages collective insights not only to improve data accuracy but also the interpretations of regulatory framework.
It also acts as a streamlined reporting tool, aligning with the SC’s taxonomy and BNM’s CCPT requirements.

Ladies and Gentlemen,

DIGID and Acknowledgements

DIGID was born out of the SC’s recognising that smaller capital market players often face significant challenges in embarking on innovative projects.
DIGID serves multiple objectives, primarily focusing on empowering smaller capital market players in their digital transformation journey.
Its goals include fostering innovation in capital market products and services, enhancing efficiency and productivity in fundraising and investment activities, as well as expanding financial inclusion to reach underserved markets or segments.
The impact of DIGID is already being felt in the Malaysian capital market, with several innovative projects underway.
Beneficiaries like BPAM via EKO platform has leveraged DIGID to enhance access to ESG bond data, facilitating informed and sustainable investment decisions. Others have utilised DIGID to develop machine learning capabilities for predictive analytics and, created data-driven advisory tools to make financial planning more accessible.

Ladies and Gentlemen,

Conclusion

We commend BPAM for its active participation and commitment to digital innovation.
The launch of EKO is a clear demonstration of BPAM’s dedication to advancing Malaysia’s capital market and ensuring that market participants have access to world-class data and insights.
Today’s launch is more than just a technological achievement; it is a step forward in reinforcing the integrity, efficiency, and accessibility of our bond and sukuk markets.
We look forward to seeing the positive impact that EKO will bring to the financial ecosystem.
With that, it is my honour to officially congratulate BPAM on the launch of the EKO Platform.
Thank you, and I look forward to witnessing its success in the years to come.

BPAM EKO Press Release, 19 August 2024.
Bernama dated 19 August 2024.