MALAYSIA STRENGTHENS FOREST CONSERVATION WITH INNOVATIVE FINANCING - NIK NAZMI

KUALA LUMPUR, Feb 26 (Bernama) -- Malaysia is ramping up efforts to strengthen forest conservation through innovative financing strategies, said Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad.

He said the ministry has been exploring innovative mechanisms such as green bonds, sukuk, carbon taxes and sustainable investments to ensure that conservation efforts are adequately funded while creating sustainable economic opportunities for the nation.

“To address the funding gap, Malaysia introduced the Forest Conservation Certificate (FCC) in May 2024 through the Malaysia Forest Fund, a groundbreaking initiative designed to facilitate private sector investment in forest conservation projects.

“The FCC supports sustainable forestry practices, habitat restoration and biodiversity protection by leveraging financial resources from corporations and other stakeholders. It also fosters greater collaboration between government agencies, private entities and local communities to safeguard Malaysia’s forests,” he said in his speech at a luncheon event on Strategic Conservation Initiatives here today.

He also stressed the need for a paradigm shift in viewing forests as valuable assets rather than mere commodities for exploitation.

Nik Nazmi said Malaysia is one of the world’s 17 megadiverse countries and plays a critical role in global biodiversity conservation, with its forests serving as climate regulators, biodiversity hubs and economic assets.

“Our forests are not just rich in biodiversity but are deeply intertwined with our cultural identity and economic prosperity. However, deforestation driven by infrastructure development, settlements and agricultural expansion poses a significant challenge,” he said.

He emphasised that Malaysia, as the current ASEAN Chair, is committed to leading the region’s environmental conservation efforts by exploring diverse funding avenues, including public-private partnerships, international grants and government allocations.

“The importance of environmental conservation extends beyond biodiversity; it impacts the well-being of all ASEAN nations. Securing sufficient funding for conservation has remained a persistent challenge, but we are committed to mobilising resources to protect our natural heritage,” he added.

-- BERNAMA