Bank Islam Malaysia Berhad has launched a new sustainable financing initiative, IHSAN Financing for Business Resilience, Sustainability, and Green Transition (IFiRST), to help small and medium-sized enterprises (SMEs) and mid-tier companies adopt more sustainable and Shariah-compliant business practices.
The initiative was announced during the Bank Islam Sustainability Conference 2025. Themed “Accelerating Just Transition Towards a Nature-Positive economy,” the event brought together government officials, corporate leaders, and industry stakeholders to discuss sustainable growth.
Designed with the principles of Islamic finance and environmental responsibility in mind, IFiRST aims to accelerate Malaysia’s shift towards a low-carbon economy. It offers equitable access to financing, including facilities such as Bank Negara Malaysia’s Low Carbon Transition facility (LCTF), especially to carbon-intensive sectors that face challenges in adopting green technologies.
Bank Islam Group Chief Executive Officer Datuk Mohd Muazzam Mohamed emphasised that IFiRST reflects the bank’s mission to embed environmental, social and governance (ESG) principles into its offerings. He stated that the bank wants to ensure all segments, including halal SMEs and their ecosystem partners, are supported in this transition.
IFiRST builds on Bank Islam’s existing ESG-based solutions, such as the Ihsan Sustainability Investment Account (ISIA) and SME Smart Eco Financing Programme-i. This reinforces its commitment as a purpose-driven Islamic financial institution. These efforts align with Malaysia’s broader climate goals while supporting the integrity of the halal industry.
As part of its roadmap to achieve Net-Zero emissions by 2050, the bank will continue to engage stakeholders to foster a resilient, inclusive, and Shariah-compliant green economy.
Bank Islam also signed a strategic partnership at the event, including collaborations with Thoughts in Gear, Mastercard and Elopura Power Sdn Bhd to further drive its sustainability efforts within the halal and Islamic ecosystem.
