In their continued pursuit of empowering small- and medium-sized enterprises (SMEs) to become more sustainable and open to adopting renewable energy solutions, the RHB Banking Group (RHB) and Tenaga Nasional Berhad (TNB) have signed on a new collaborative partnership.
The signing took place at the recently held Energy Transition Conference with Nik Nazmi Nik Ahmad, Minister, Malaysia Ministry of Natural Resources, Environment, and Climate Change, being present to witness the exchange of documents.
For both RHB and TNB, the collaboration will be highly supportive of the focus pillars of the National Energy Transition Roadmap (NETR) as it provides Malaysians and local businesses with the knowledge, tools, and solutions to make that necessary transition towards greener and more sustainable processes/practices.
“As energy transition gains momentum, the demand for green financing is set to increase significantly due to the growing adoption of green energy solutions in the country. (As is,) green financing and investment play a central role in TNB’s commitment to advance the energy transition, develop sustainable infrastructure, and foster innovation to promote a low-carbon economy,” said Ir. Baharin Din, President and CEO, TNB.
With this newly signed partnership between RHB and TNB, the two service providers will provide the necessary support SMEs need to be adopt green technology and sustaoinable practices. On TNB side, it will share technical advice on energy efficiency and renewable energy solutions. This includes supplying and installing Solar PV systems.
As for RHB, it will offer to SMEs its Green Financing Solutions, consisting of SME Green Construction Financing, SME Green Commercial Property Financing, SME Green Working Capital Financing, and SME Green Capital Expenditure (CAPAX) Financing.
Both parties will also jointly organise the Sustainability roadshows — a nationwide event that will kick-off in Q3 2023 to engage SMEs in major Malaysian cities. The goal of this event is to raise the awareness of sustainable business practices among SMEs, introduce energy efficiency solutions, and provide advisory services on green financing.
“We are proud to be the first financial institution to collaborate with TNB in nurturing, supporting, and advancing SMEs with their sustainability journey. (After all,) it is our responsibility as a banking group to facilitate our customers’ transition journey through financial products and solutions that we offer,” said Mohd Rashid Mohamad, Group Managing Director and CEO, RHB.
For both signatories, the move is timely as businesses move to study and consider sustainable efforts for their operations. As is, demand for green financing and investments in sustainability will continue to grow and become a key driver for Malaysia to fulfil its transition to clean energy and foster innovation that focuses on expanding the low-carbon economy.
With this engagement, both Baharin and Mohd Rashid believe they tap onto the shared vision of assisting SMEs to make that transformative move to green energy. This is to ensure they can create a more sustainable future.