Green Technology Financing Scheme (GTFS) Utilisation – an Application of UTAUT2 Model in Non-Technology Context

The Malaysian government has provided green financing initiatives to encourage companies to embark on those projects. One of the green financing initiatives is the introduction of the Green Technology Financing Scheme (GTFS). The scheme has been offered since 2010, and RM 3.5 billion allocated funds have been utilised within seven years. Despite the huge amount of funds being allocated, the utilisation of the funds has been relatively slow and underutilised. Preliminary observations indicate that the cause is mainly the perceived risk that hinders users or borrowers from participating in the financing package. In addition, there seems to be a vast distance between application approval and rejection volume among the users because applicants cannot meet the technical requirement, and GTFS is an unattractive financing package. Thus, GTFS is considered high risk with little or no success story in the past. There are two objectives of the study. First, to analyse the Green Financing trend in Malaysia. First, to examine the relationship between the determinants with the intention to utilise and utilization behaviour of GTFS in Malaysia. Second, to determine if perceived risk moderates the relationship between performance expectancy with intention, and effort expectancy with intention to utilise GTFS in Malaysia. Keywords: Utilisation, UTAUT 2, Green Financing, Perceived Risk, Intention to Utilise