Pengurusan Aset Air Berhad (“PAAB”), a wholly owned company of the Minister of Finance (Incorporated), has established its Sustainable Islamic Finance Framework (“Framework”) to facilitate the issuance of sustainable sukuk and other Islamic financing instruments.

The Framework marks a key milestone as the first in Malaysia to integrate blue finance elements within an Islamic finance framework, enabling PAAB to undertake issuances such as Blue Sukuk in line with international guidelines. The Framework has been independently reviewed by RAM Sustainability Sdn Bhd, which has provided a Second Party Opinion confirming its alignment with applicable sustainable finance principles and guidelines, and has assigned “Platinum Sustainable Finance Rating”.

Through this Framework, PAAB aims to mobilise sustainable capital to fund eligible water infrastructure assets and projects that support long-term value creation, enhance efficiency and resilience of the national water sector, and contribute towards national agendas such as the Water Sector Transformation 2040 (WST2040), Malaysia’s Net Zero 2050 aspiration, and broader sustainable development priorities.