AS Malaysia navigates climate risks, social development priorities and a complex economic environment, the stakes of doing business, even in a relatively stable country like Malaysia can be challenging.
Not only do small and medium sized enterprises (SMEs) face inflation due to geopolitical intrigue and potential disruption of their supply chains, they also would have felt the impact of the erratic weather patterns on their businesses.
Furthermore, the evolving workforce landscape also calls for inspiring ways to attract and retain talent, as well as building relationships with important stakeholders, following the environmental, social and governance (ESG) principles.
As a multinational regional financial services provider that can provide a suite of solutions. RHB Bank Bhd is among the top banks in Malaysia, with a significant presence in Asean.
As the bank strengthens its sustainable finance offerings, it encourages households and businesses to adopt environmentally friendly practices through targeted lending products and development-focused schemes.
The green evolution
This initiative reflects the bank’s broader commitment to supporting the transition to a low-carbon economy and aligning its operations with ESG principles.
At the heart of RHB’s approach are four “green pillars” that define its sustainability strategy: green energy, green buildings, green products and green processes.
These focus areas aim to reduce carbon emissions and promote resource-efficient practices across residential and commercial sectors.
Green energy financing supports the adoption of renewable energy solutions, helping consumers and companies lower their environmental footprint.
Green buildings initiatives provide financial backing for green-certified real estate, covering energy-efficient construction, management and maintenance.
Under green products, the bank prioritises lending for eco-friendly assets, including hybrid and electric vehicles. Finally, green processes financing is tailored to assist businesses in enhancing machinery, equipment and production workflows to reduce emissions.
To translate these strategic priorities into tangible support, RHB offers a range of products for both retail and SME clients.
Green SME business offers
On the business front, RHB Bank’s SME green financing suite includes several options aimed at stimulating investment in sustainable practices among SMEs.
The RHB SME Green Renewable Energy and Capex Financing covers the purchase of energy-efficient equipment and machinery with financing rates from as low as around 4.5% and up to full financing margins.
While RHB SME Green Building Financing offers finance purchase of green commercial properties or green certified properties at a low base level rate or base financing rate of 2.80% per annum with a margin of financing up to 90%.
Similarly there is also the RHB SME Green Construction Financing for sustainable building projects used by the business itself.
It can be used to finance the construction of green certified and sustainable buildings for the company’s own use only, with a base lending rate or base financing rate of 2.80% per annum. The margin of finance is as high as 90%.
Another product is the RHB SME Green Working Capital Financing, which is designed to help businesses procure or increase the use of sustainable raw materials in manufacturing and production. The financing rate is as low as 4.5% per annum.
Future of ESG in RHB Bank
With RHB Sustainable Financing businesses can not only become or stay competitive in global markets, they can be assured that these can be proof of the SMEs’ compliance with even foreign green regulations such as the European Union’s Deforestation-free Regulation and the Carbon Border Adjustment Mechanism.
The bank is ready to assist businesses to start on their green journey to reduce operational costs through its competitive financing packages, energy efficiency and better resource optimisation.
The launch of these products comes amid the bank’s broader sustainability ambitions, outlined in its Progress 27 corporate strategy and Sustainable and Transition Finance Framework (STFF), which guides financing activities that generate measurable environmental and social outcomes.
According to the group’s sustainability reporting, the bank aims to mobilise significant volumes of sustainable finance while integrating ESG considerations across its business activities, from lending to investment and insurance.
RHB’s sustainability goals also align with broader industry trends in Malaysia, where major banks are scaling up green financing commitments to support renewable energy, efficiency and transition-related projects.
These initiatives feed into national and global efforts to decarbonise economies and meet climate objectives.
By expanding both consumer and corporate green finance options, RHB Group aims to make environmentally positive projects more affordable and accessible.
The bank continues to position itself as a partner for individuals and businesses navigating the evolving sustainability landscape, enabling progress toward greener practices across the Malaysian economy.
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