Penang Climate Mitigation Fund
for Manufacturers
Supported by:
In collaboration with:
About the Penang Climate Mitigation Fund
Beyond financing, the Fund strengthens SMEs resilience, productivity, and longterm competitiveness by supporting compliance with Bank Negara Malaysia’s Climate Change & Principles Based Taxonomy (CCPT) and increasingly stringent global supply chain sustainability expectations. Collectively, these efforts enhance Penang’s attractiveness to high quality investments and reinforce its positioning as a regional green manufacturing and sustainable investment hub.The Fund, co-launched by Penang Green Council and Alliance Bank Malaysia Berhad, is designed to accelerate the transition of Penang’s SMEs manufacturers toward sustainable, low carbon, and digitally enabled operations. It enables manufacturers to access affordable and preferential financing, reducing barriers to investment in decarbonisation initiatives, digital transformation, and the adoption of robust environmental, social, and governance (ESG) practices, in support of Penang’s ambitions under Penang 2030 and Penang 2050.
*Module 1 : Alliance Bank’s Green / Automation / General Working Financing & Government Grants
Manufacturing SMEs may access a range of BNM and Alliance Bank financing facilities at preferential interest rates. | Financing options include the Low Carbon Transition Facility, High Tech & Green Facility, and Automation & Digitalisation Facility, supporting green upgrades, digitalisation, and automation. | General working capital and term loans are also available from the Bank. | Grants by SIRIM & Cradle Fund.Low Carbon Transition Facility (LCTF) 
Financing Purpose
- Fund capital expenditure (CAPEX) to purchase and install any green solutions
- Encourages SMEs to transition to low carbon operations
- Up to 5% p.a.
- Up to RM10 mil
High Tech & Green Facility (HTG) 
Financing Purpose
- Fund SMEs in manufacturing / ICT sectors and businesses providing green tech / digital & IR 4.0 tech / biotech solutions
- Up to 3.9% p.a.
- Up to RM10 mil
Automation & Digitalization Facility (ADF) 
Financing Purpose
- Support SMEs on purchase of equipment, machinery, computer hardware and software, IT solution and services to enhance productivity and efficiency
- Up to 4% p.a.
- Up to RM3 mil
Alliance Financing
(Term Loan & Working Cap)
(Term Loan & Working Cap)
Financing Purpose
- Financing to support your capex investment and general working capital for business expension / transisation needs.
- Better financing rate
- Up to RM10 mil
Module 2 : ESG Assessment, Transformation & Enablement
This module supports manufacturing companies in understanding their current sustainability performance, identifying improvement opportunities, and building a structured roadmap towards implementation and financing. This is supported through a structured transformation approach under SHIFT @ PGIP , guiding companies from assessment to implementation and financing.
COSIRI Assessment
Assessment Details:
- Benchmark sustainability maturity
- Identify gaps and opportunities
- Provide structured performance insights
What Companies Will Receive
Transformation Support
- Advisory and guidance
- Capacity building and workshops
- Access to ecosystem partners and solutions
How This Supports CM Fund
Insights from the assessment help companies identify high-impact projects and strengthen their readiness for financing under the CM Fund.
What Can the CM Fund Support
The CM Fund supports manufacturing companies in implementing sustainability and efficiency improvements, including:
Energy efficiency initiatives
Renewable energy adoption
Resource optimization(water, waste, materials)
Process improvements & decarbonization
Sustainable technology & equipment upgradesHow to Prepare for CM Fund Application
To maximise the effectiveness of the CM Fund, companies are encouraged to take a structured approach before applying:
Understand current sustainability performance 
Identify key gaps & improvement opportunities 
Develop a clear & practical implementation plan 
Proceed with funding application Companies with a clear roadmap are better positioned to secure funding and deliver measurable impact.
Details of the Fund
The Fund is established to support the strengthening and transformation of Penang’s manufacturing sector and is open to eligible enterprises that meet the following criteria, subject to final approval:
Eligibility Criteria
- State Presence Requirement
Applicants must be based in the State of Penang, with principal manufacturing operations conducted within Penang. - Target Sector
The Fund is intended for manufacturing SMEs and mid-tier companies, including manufacturing-related activities that contribute to industrial value creation. - Legal and Regulatory Compliance
Applicant must be incorporated in Malaysia and in compliance with all applicable laws, regulations, and licensing requirements. - Local Ownership Requirement
A minimum of 51% Malaysian ownership is required to ensure alignment with national and state economic development objective. - Operational Track Record
Applicant must have been in active operation for a minimum of three (3) years, demonstrating operational viability and business continuity.
Who Should Consider Applying
Manufacturing SMEs planning sustainability improvements
Companies with identified efficiency or cost-saving opportunities
Businesses ready to implement ESG initiatives
FREQUENTLY ASKED QUESTIONS (FAQ)
- To maximise the effectiveness of the CM Fund, companies are encouraged to have a clear understanding of their current sustainability performance and priority areas for improvement.
- A structured approach, from assessment to implementation, can help strengthen application readiness and ensure impactful outcomes.
- You may consider undergoing an assessment (SHIFT @ Asses s) to better understand your readiness and identify high-impact opportunities.
No. The Fund supports manufacturing SMEs at different stages of transition, including companies that are just kickstarting their ESG and sustainability journey.
Yes. Eligible SMEs may combine Alliance Bank financing facilities with the SIRIM Smart Tech Up Grant, subject to eligibility and approval.
Yes. ESG assessment is a core component of the Fund and is designed to support long-term sustainability, regulatory alignment, and structured transition planning.
Participating SMEs receive access to ESG assessments, training, advisory support, emissions tracking, and decarbonisation planning, coordinated by PGC and ecosystem partners.
Yes. Companies classified as transitioning or higher-risk may apply, provided they commit to clear and measurable ESG improvement actions..
Interested companies may furnish the form below. Subsequently, the Alliance Bank team will follow up on eligibility, financing options and ESG support.
