World Bank’s IFC And XSD Partner To Boost Jobs And Sustainability In Malaysia’s Paper Industry

The International Finance Corporation, the private sector arm of the World Bank Group, has announced a $70 million financing package for XSD International Paper Sdn Bhd to accelerate sustainable growth in Malaysia’s paper industry. The funding includes a $28 million green loan to build a biomass cogeneration plant in Kulim, Kedah, supplying cleaner electricity and steam to XSD’s operations. The remaining capital will support installation of a third duplex board production line, lifting annual capacity to about 800,000 tons and strengthening Malaysia’s position in regional paper markets. The project is expected to create roughly 750 direct and 1,800 indirect and induced jobs, supporting local communities and industrial competitiveness. XSD will expand recycled fiber use, enhance circular-economy practices, and cut emissions through renewable energy and efficiency improvements, aligning with Malaysia’s wider green manufacturing ambitions.​