KUALA LUMPUR (June 19): Bank Islam Malaysia Bhd (KL:BIMB) on Thursday launched a new sustainable financing solution, IFiRST, to assist small and medium enterprises (SMEs), as well as mid-tier companies to adopt more resilient and environmentally friendly practices.

IFiRST — short for Ihsan Financing for Business Resilience, Sustainability and Green Transition — is designed to ensure equitable and accessible financing for businesses navigating the transition towards a low-carbon economy, said Bank Islam group chief executive officer Datuk Mohd Muazzam Mohamed.

“This new financing solution reflects Bank Islam’s commitment to a fair and inclusive transition across all segments of the economy,” Mohd Muazzam said in a statement issued after the launch at the Bank Islam Sustainability Conference 2025.

“By enabling greener practices throughout the entire value chain, we are supporting not just large companies but also the smaller businesses and ecosystem partners that play a vital role in reducing carbon emissions,” he added.

IFiRST is tailored for carbon-intensive sectors and offers access to Bank Negara Malaysia’s Low Carbon Transition Facility.

The facility also removes financial and operational barriers for businesses embracing green practices while aligning with shariah principles and Bank Islam's environmental, social and governance commitments.

As of December 2024, Bank Islam has achieved 93% of its revised FY2025 target of RM28 billion in sustainable finance and assets.

The country’s largest standalone Islamic banking group also plans to implement its Climate Transition Plan to achieve net zero emissions by 2050 and strengthen its role as a strategic partner for businesses seeking greener operations.

Shares of Bank Islam finished seven sen or 3.11% higher at RM2.32 on Thursday for a market capitalisation of RM5.26 billion.