The RHB Banking Group (RHB or the Group) and Tenaga Nasional Berhad (TNB) have recently forged a groundbreaking collaboration to expedite the adoption of renewable energy and energy efficiency solutions among small and medium enterprises (SMEs) and individuals.
Mohd Rashid Mohamad, group managing director/ group chief executive officer of RHB Banking Group, said, “We are proud to be the first financial institution to collaborate with Tenaga Nasional Berhad in nurturing, supporting and advancing SMEs in their sustainability journey. This collaboration aligns with our Sustainability Strategy and Roadmap to help SMEs build a sustainable business by adopting greener practices. As a banking group, it is our responsibility to facilitate our customers’ transition journey through the financial products and solutions we offer.”
The strategic partnership complements Malaysia’s National Energy Transition Roadmap (NETR) towards empowering businesses, particularly SMEs, and individuals with the knowledge, tools and solutions needed to transition to greener practices.
RHB, in a statement, said that the collaboration entails TNB providing technical advice on energy efficiency and renewable energy solutions, including supplying and installing Solar PV systems to SMEs, prioritising RHB’s SME customers and TNB’s clients and business partners. On the other hand, RHB will offer Green Financing Solutions comprising SME Green Renewable Energy Financing, SME Green Construction Financing, SME Green Commercial Property Financing, SME Green Working Capital Financing and SME Green Capital Expenditure (CAPEX) Financing.
“As of June 2023, the Group has approved over RM870 million in SME Sustainable Financing, of which RM103 million was Bank Negara Malaysia’s Low Carbon Transition Facility (LCTF). We have also achieved more than RM5 billion in Sustainable Financial Services against our 2023 target of RM9 billion and a cumulative achievement of over RM16 billion, equivalent to almost 85 per cent of our RM20 billion target,” added Rashid.
“We are also expanding our Sustainable Finance team with ESG Sector Specialists whose expertise covers a variety of industries, including renewable energy, oil palm, healthcare and property. Ultimately, we aim to work closely with our strategic partners, such as TNB and other relevant industry players, to advance and facilitate SMEs in their sustainability journey,” continued Rashid.
RHB and TNB will jointly organise sustainability roadshows commencing in the third quarter of 2023 to engage SMEs in major Malaysian cities to promote awareness of sustainable business practices, introduce energy efficiency and renewable energy solutions, and provide advisory services and green financing solutions that support SMEs’ transition journey in alignment with the nation’s decarbonisation aspirations towards becoming a low-carbon economy by 2050.
TNB president and chief executive officer, Dato’ Indera Ir. Baharin Din, said, “As energy transition gains momentum, the demand for green financing is set to increase significantly due to the growing adoption of green energy solutions in the country. Green financing and investment play a central role in TNB’s commitment to advancing the energy transition, developing sustainable infrastructure, and fostering innovation to promote a low-carbon economy.”
“We are delighted to join forces with RHB for maiden green financing facilities to encourage rooftop solar installations among SMEs and residential customers who are looking for long-term savings on their electricity bills, fostering a low-carbon economy. Both TNB and RHB share a common vision of assisting SMEs and homeowners in transitioning to green energy solutions for a more sustainable future. We eagerly anticipate collaborating with like-minded financial institutions to bolster Malaysia’s endeavours in establishing a thriving green finance ecosystem,” concluded Baharin.
The official exchange of documents between RHB and TNB was witnessed by The Honourable Minister of Natural Resources, Environment and Climate Change of Malaysia, Nik Nazmi Bin Nik Ahmad, during the Energy Transition Conference held on 28 August 2023. 
