GEORGE TOWN, April 27 — Penang launched a new Climate Mitigation Fund (CM Fund) with an initial RM20 million to help manufacturers implement sustainable solutions and reduce carbon emissions.
Penang Chief Minister Chow Kon Yeow said the fund is a collaboration between Alliance Bank Malaysia Berhad and the Penang state government under the Penang Green Industry Programme (PGIP).
“So as a show of our commitment to collaborate, we are putting in RM5 million and the understanding is that Alliance will put in three times the amount, so we have a total RM20 million to start,” he told reporters after launching the Penang Green Industry Forum 2026 at The Olive Tree Hotel here today.
He said Alliance has also committed RM100 million to the fund.
The CM Fund is open to all small and medium enterprises (SMEs) to apply for low-interest financial support to adopt greener operations.
He said this is important for local SMEs as global supply chains increasingly demand stronger environmental, social and governance (ESG) compliance.
Chow added that there are also grants under the programme for industries.
“Sustainability is no longer optional. It is a business imperative,” he said in his opening speech earlier.
Chow said Penang remains one of Malaysia’s key industrial drivers, especially in the electrical and electronics sector, but future competitiveness will depend on how quickly industries adapt to sustainability requirements.
Alongside the fund, the state also launched SHIFT @ PGIP, Sustainable & Holistic Industry Forward Transformation, a platform aimed at helping manufacturers, especially SMEs, strengthen sustainability readiness.
Chow said manufacturers will have access to the Consumer Sustainability Industry Readiness Index (Cosiri) under the programme.
Cosiri is an internationally recognised assessment framework that allows companies to evaluate sustainability maturity and identify areas for improvement.
He said the framework will be useful for SMEs to remain competitive in international markets where sustainability standards are becoming increasingly stringent.
He said the Penang Green Council has certified Cosiri assessors to guide manufacturers through sustainability assessments and implementation strategies.
Chow said global geopolitical tensions and recent energy disruptions have reinforced the urgency for industries to reduce dependence on conventional energy sources.
Date: 27 April, 2026 12:00 pm
Source: Malay Mail
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