PETALING JAYA: Malaysia has proposed for the Asian Infrastructure Investment Bank (AIIB) to implement an inclusive financing mechanism to meet the specific needs of developing countries.
Deputy finance minister Ahmad Maslan said AIIB should explore alternative financing options to achieve this objective, when delivering Malaysia’s statement at the Governors’ Business Roundtable on Monday in conjunction with the AIIB annual meeting in Sharm El-Sheikh, Egypt.
The alternative financing options include grants and blended financing mechanisms that are in line with Islamic finance’s principles of equitable risk sharing.
The ministry stated that such efforts would accelerate developing countries’ transition towards a low-carbon economy.
“Furthermore, communities affected by climate change will benefit from adaptation strategies that can reduce climate risks and climate-change hazards such as floods, landslides or typhoons,” it said in a statement today.
Held from Sept 25 to 26, the AIIB’s eighth annual meeting was the first to be organised in the African continent, and the first to be held physically after the Covid-19 pandemic.
AIIB comprises 107 member countries and functions as a multilateral development bank that aims to support sustainable economic development and promote regional cooperation in addressing development issues and challenges of member countries.
Malaysia became a member of the AIIB in 2016.
