Opening Remarks at the Official Launch of SIDC’s Certified Capital Market Professional in Sustainable and Responsible Investment (CCMP-SRI)

Speaker: Dato’ Mohammad Faiz Azmi, Chairman, Securities Commission Malaysia

Location: Bukit Kiara, Kuala Lumpur
Delivered: 20 June 2024

Full Speech:

Yang Berhormat Puan Lim Hui Ying
Deputy Minister of Finance, Malaysia

Yang Mulia Tengku Zarina Tengku Chik
Chief Executive Officer of Securities Industry Development Corporation (SIDC)

Senior management members of SIDC.

Distinguished guests, ladies and gentlemen.

Assalamualaikum and a very good afternoon.

I would like to thank Securities Industry Development Corporation (or SIDC) for the opportunity to deliver a few words for the launch of the new certification programme in sustainability and responsible investment.
The new certification, known as the "Certified Capital Market Professional in Sustainable and Responsible Investment" or CCMP-SRI in short is highly welcomed, and in line with SC’sefforts to ensure there is sufficient and competent resources in the capital market to advance the sustainability goals in Malaysia.
The introduction of the certification programme for the capital market is also contributing to raising and setting the competency standard of professionals in sustainable investment.

Equipping the capital market

This morning, at the opening address of the SIDC Sustainable and Responsible Investment Conference, I talked about the surge in sustainable investments in Malaysia from just seven SRI funds in 2020 at net asset value of RM1.46 billion to 68 SRI funds at RM7.7 billion in 2023.
We need to create a strong market environment which supports rapid growth. Players in the market will need to be equipped with the knowledge and skills to manage the changing environment. A comprehensive understanding of the core principles and best practices is vital for sustainable and responsible investments to achieve their maximum potential.
As sustainable investment requires understanding of multiple areas including the integration of environmental, social, governance and economic dimensions, as well as SRI products and structures, competent capital market participants need an in-depth understanding of these interconnections, with the ability to manage complex issues to make sound investment decisions.

Managing Complexities

Sustainable investment goes beyond the traditional financial metrics, it integrates sustainability factors with economic objectives. Investors will need to balance initiatives required to generate financial returns while at the same time advancing sustainability goals.
Our capacity building programmes will need to develop competent professionals who understand the complexity of sustainability issues so they will be able to develop investment strategies that deliver positive environmental and social impact for the long term, not just a quick fix in the short term.
A 2023 survey by The Economist revealed that only 15% of employees in Malaysia consider green skills to be important. Some of the key barriers to skills upgrade identified in the survey include lack of time and high financial cost to attend such courses.
Let’s be reminded that the sustainable investment landscape is constantly evolving with emerging technologies, changing customer expectations and regulatory requirements. There’s a constant need to maintain a competitive edge.
All these factors are driving significant changes in the capital market. Therefore, we need to prioritise skills and knowledge development to stay ahead and meet the requirements of the industry.
SIDC’s new certification programme will play a key role in building such competencies as it addresses critical concepts, practices, and strategies in sustainability and prepares professionals to effectively contribute to and lead in the sustainable and responsible investment arena, aligning with the sector's evolving needs.
I am confident that graduates of the programme will meet critical competency requirements of the industry as I was informed that the new the certification programme was developed through extensive research, benchmarking and engagement with regulators and experts on sustainability including the SC. In addition, the content was reviewed by committees consisting of key players in the industry.

Conclusion

In closing, I would like to congratulate SIDC for successfully bringing the new certification (Certified Capital Market Professional in Sustainable and Responsible Investment) to market.
I hope many professionals and organizations will take the opportunity to leverage on the new certification programme to grow their skills and knowledge in sustainable and responsible investment.
I look forward to speaking with you in the networking session later and hear your thoughts on how we could work together to advance the capital market to promote long-term economic growth in the country.
Thank you.