The National Mortgage Corporation of Malaysia, Cagamas, has launched the Green Mortgage Guarantee Programme ( Green MGP ), marking  “a significant milestone in Malaysia’s journey towards sustainable and inclusive housing finance”.

The product, which will be offered through its sister company, Cagamas SRP, is open to financial institutions nationwide and designed to support them in expanding their green lending portfolios while promoting environmentally conscious homeownership.

It offers mortgage guarantees for residential properties that are either certified as “green” or “sustainable” as well as for homes with green enhancements, thereby aligning housing finance with Malaysia’s climate goals under the 12th Malaysia Plan and the national commitment to achieve net-zero emissions by 2050.

Building on the success of previous housing guarantee schemes – such as Skim Rumah Pertamaku, Skim Perumahan Belia and the new First Home Mortgage Guarantee Programme, which have enabled over 100,000 Malaysians to own their first homes – the Green MGP introduces a new dimension of environmental responsibility and provides financial institutions with a risk mitigation tool that supports environmental, social and governance ( ESG )-aligned lending practices, while offering homebuyers better financing options for sustainable properties.

“The Green MGP is more than just a product,” says Kameel Abdul Halim, the mortgage agency’s president and CEO. “It’s a reflection of our commitment to a greener Malaysia. By incentivizing green homes and reducing financing risks, we aim to make sustainable living more accessible and reshape the future of Malaysia’s housing and financial landscape.

“We recognize that for many institutions, ESG compliance is no longer optional. Through this programme, we hope to support our banking partners in meeting evolving sustainability standards while continuing to promote affordable home ownership.”