Hong Leong Islamic Bank Bhd (HLISB) has joined Bank Negara Malaysia’s Greening Halal Business (GHB) initiative, strengthening its commitment to supporting small and medium-sized enterprises (SMEs) in Malaysia’s halal sector. The initiative aims to help businesses adopt greener practices while enhancing their competitiveness in the global market.
The programme is supported by the Ministry of Finance Malaysia (MOF), the Islamic Development Bank, and the World Bank. It is designed to guide halal SMEs in transitioning towards more sustainable operations by equipping them with the necessary tools and knowledge to manage their environmental impact effectively.
As part of the initiative, HLISB has signed a memorandum of understanding with Pantas, an AI-enabled carbon management and ESG reporting platform provider. Through this collaboration, HLISB will offer its SME customers access to specialised carbon accounting software and structured capacity-building programmes. These solutions will enable businesses to track and report both direct and indirect greenhouse gas emissions, while developing effective decarbonisation strategies and sustainability reporting practices.
Eligible customers can apply for a subsidy of up to RM5,000 for an exclusive subscription to the platform. The subsidy is funded under a RM15 million allocation by the Ministry of Finance, aimed at easing the financial burden for SMEs embarking on their sustainability journey.
HLISB chief executive officer Dafinah Ahmed Hilmi said the initiative represents a key pillar of the bank’s strategy to strengthen Malaysia’s halal ecosystem. She noted that sustainability is deeply embedded in Islamic banking principles, which emphasise environmental stewardship as a responsibility. By integrating ESG practices into halal SMEs’ core operations, the bank aims to enhance both their market value and Shariah compliance, ensuring they remain resilient and competitive as global trade increasingly prioritises climate action.
Pantas chief executive officer and co-founder Max Lee added that the company seeks to simplify the decarbonisation process for SMEs, making carbon emissions tracking straightforward and practical. He said the goal is to transform sustainability from a perceived corporate burden into a competitive advantage, helping businesses set higher standards in corporate responsibility and environmental stewardship.
Starting in 2026, the GHB initiative will expand to include dedicated green financing for ESG-aligned projects, enabling SMEs to turn sustainability plans into concrete action. Beyond its participation in GHB, HLISB continues to support SMEs through its BizHalal programme, which provides financing solutions and halal advisory services to help businesses navigate an increasingly sustainability-drive