RHB joins estate owners to support sustainable plantation investment
The two-year partnership will combine financing and technical support, with workshops on funding choices, regulatory requirements and climate risks.
RHB Bank Bhd will work with the Malaysian Estate Owners' Association (MEOA) for two years to help plantation operators fund sustainability projects and improve productivity. The bank said the partnership would bring together financing, technical assistance and engagement with the industry.
Investment areas covered by the arrangement include worker welfare, oil palm replanting, decarbonisation and circular economy initiatives, as well as renewable energy and energy efficiency. Projects could involve methane capture, solar photovoltaic systems, biogas facilities, more efficient machinery and upgrades to workers' housing.
Workshops and discussions with operators will cover sustainable and transition financing. They will also help estate owners understand regulatory requirements and manage risks related to climate.
According to MEOA president Ahmad Zachry Anifah Aman, members will share operational experience with RHB, while estate owners will receive help identifying suitable funding and ways to implement projects. The association's 163 members represent about 1.2 million hectares of Malaysian estates growing oil palm and rubber.
Angus Salim Amran, RHB group chief sustainability officer, said stronger cooperation between lenders and industry participants was necessary to advance the sector's sustainability transition.
RHB said the tie-up formed part of its PROGRESS27 sustainable finance strategy. The group reported having mobilised RM71 billion in sustainable financial services towards a 2027 target of RM90 billion.
