Asia’s bond outlook upbeat for issuers in 2025: JP Morgan | FinanceAsia

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A combination of lower interest rates, lower failures, and more securities is good for businesses and governments looking to enter Asia’s bond market in 2025.

There are hopes for Asia’s tie business next year to beat 2024 which is expected to hit$ 160-165 billion in 2024 for Asia, ex-Japan. There is a lot of willingness from banks to provide in the area as issuers prepare to enter the market, which is helping to keep extends small.

Speaking at an early December press presentation in Hong Kong, Jessica Chen, head of China DCM, creation Asia ex-Japan, JP Morgan:” General spreads are small and look extremely attractive to issuers. In 2024, China is expected to overtake Korea in terms of release ( from 2023 ) as the country’s largest business”.

Chen added:” We are expecting$ 170 billion of supply in 2025 in Asia, ex Japan with stockpile to pick up over 2024. We anticipate that this pattern will continue as some businesses mortgage next year.

Another positive factor is that regional relationship failures are declining, and that the US Fed will cut interest rates even further in the coming year. &nbsp, &nbsp,

Soo Chong Lim, managing director, head of Asia credit research, JP Morgan, said:” Bond default rates declined to around 4.4 % in 2024 compared with 17 % in 2023, and we expect them to decline further to 3 % in 2025″.

Despite falling interest rates in the US, anticipation are mixed regarding home bonds and the potential for some headwinds. &nbsp,

Lim added:” We expect three]US Fed ] rate cuts in 2025 and China’s GDP to grow 3.9 % next year. There will still be market volatility, particularly for the Chinese real estate sector, which is recovering slowly after a number of years of volatility. For instance, in Hong Kong, the company occupancy rate will continue to decline as a result of the supply that enters the market.

In 2024, India – probably Asia’s best performing market– had a very powerful yr for bond issuances, a trend that is set to remain in the new year.

Puja Shah, head of Southeast Asia ( SEA ), DCM and sustainable finance Asia ex-Japan, JP Morgan, said:” The high yield bond market in India was a particular bright spot in 2024 with some large names coming onto the market. It is at$ 4.7 billion YTD, and we expect that momentum to continue into 2025 with around$ 5 billion in supply”.

The issuing of green bonds is expected to increase as well. Singapore-based Shah added:” We expect stable demand, at between 25-30 % of issuances, for sustainable ( green and social ) bonds next year in the region, compared with 25 % in 2024″.

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BRI’s recent award triumphs point to its focus on becoming a champion of financial inclusion | FinanceAsia

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According to Sunarso, leader director, Bank Rakyat Indonesia ( BRI),” Tr I will continue to focus on the MSME section to realize its dreams of becoming the most important banks group in Southeast Asia and a champion of financial inclusion by 2025.” He continued,” As the nationwide economic structure is dominated by Enterprises, providing loans to MSME people is anticipated to have a significant positive impact on the Indonesian business.”

The 130-year-old company’s outstanding achievement in FinanceAsia Asia’s Best Businesses Poll 2024 and the FinanceAsia Awards demonstrate how focused this perspective is on BRI’s peers in the industry.

In FinanceAsia Asia’s Best Companies ballot, the banks won silver in the following categories: Best Director for Sunarso, leader director, BRI, Best Managed Company – Indonesia, and Best Investor Relations – Indonesia.

Additionally, BRI won bronze in the types of Best Big Cap Company in Indonesia and Best CFO in Indonesia for Viviana Dyah Ayu Retno K, Most Committed to DEI – Indonesia, Most Committed to ESG – Indonesia, and Best Big Cap Company – Indonesia.

The bank had a stellar run at the FinanceAsia Awards 2023-2024 winning Best Bank for Financial Inclusion ( Domestic ) and Best Commercial Bank- SMEs ( Domestic ), apart from securing commendations for Best Sustainable Bank ( Domestic ), Most Innovative Use of Technology – Banks ( Domestic )

View Sunarso, the president’s director ,’s acceptance speech, below.

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Solar key to PAT ‘green ports’ push

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PUBLISHED : 2 Dec 2024 at 04:34

Deputy Transport Minister Manaporn Charoensri
Deputy Transport Minister Manaporn Charoensri

The Port Authority of Thailand (PAT) has introduced solar rooftops at its ports in a bid to establish “green ports”. The rooftops are expected to produce five million kilowatt-hours of solar energy annually.

Deputy Transport Minister Manaporn Charoensri said the initiative underscores the global urgency for environmental stewardship. The ministry is pushing for all its agencies to embrace green logistics to transition to a low-carbon society in line with environmental, social and governance (ESG) principles, she said.

The use of solar rooftops reduces carbon dioxide emissions and other greenhouse gases. They would help turn PAT ports into leading green ports, pushing Thailand towards its net-zero emissions goal.

PAT director Kriengkrai Chaisiriwongsuk said solar rooftops, with a capacity of a 3.798 megawatt-peak (MWp), have been installed at parking buildings and warehouses. The rooftops integrate on-grid solar technology, enabling the port to use both self-generated and external electricity. Plans for expansion include the installation of solar panels at the PAT Arena, adding another 622.08 kilowatt-peak (kWp) of capacity across 3,020 square metres.

These efforts could create over five million kilowatt-hours of solar energy annually, reducing greenhouse gas emissions by 2,574 tonnes per year — equivalent to planting 55,341 trees. The PAT is keen to have carbon-neutral ports by 2050 by adopting clean technology and digitalisation, including automated and energy-efficient systems. These changes could cut greenhouse gas emissions by 50%.

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Five startups win MYCentre4IR-Bursa Malaysia ESG Innovation Challenge 2024

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  • Supports necessity of innovation to fulfill conservation, business goals
  • Powered by UpLink, the World Economic Forum’s available development program

Winners of the MYCentre4IR ESG Innovation Challenge 2024 alongside corporate partners and guests, including Norman Matthieu Vanhaecke, CEO of Cradle Fund; Ellina Roslan, Senior Director MYCentre4IR, MyDIGITAL Corporation; and Muhamad Umar Swift, CEO of Bursa Malaysia.

The MYCentre4IR ESG Innovation Challenge 2024 on 7 Nov saw five innovative startups winning US$ 22, 344 ( RM100, 000 ) each in bridge funding to implement their proof-of-concept with their respective corporate partners.

The Challenge is a joint initiative by the Malaysia Centre for Fourth Industrial Revolution ( MYCentre4IR ) and Bursa Malaysia Bhd, seeking to find cutting-edge digital solutions aimed at enhancing the Environmental, Social, and Governance ( ESG) efforts of five Malaysian Public Listed Companies, namely CJ Century Logistics Holdings Bhd, Globetronics Technology Bhd, Malayan Banking Bhd, REDtone Digital Bhd and Sunway Innovation Labs ( representing Sunway Group ).

Launched on 1 Aug, the Challenge attracted local and international members, including from the United States, Sweden, Canada, India, Singapore and Namibia. 32 out of over 100 entries came from Malaysia.

The Challenge was powered by UpLink0, the World Economic Forum’s open technology platform, with access to a worldwide group of 80, 000 companies, owners, professionals and changemakers. Early-stage businesspeople are met by UpLink’s technology-enabled method, which creates an innovation ecosystem that causes good systemic change for both people and the planet.

]The World Economic Forum’s UpLink is an open technology program designed to connect companies, experts, and investors with the goal of tackling the world’s most pressing issues, including climate change, cultural injustice, and sustainable growth. ]

Our goal with this Challenge is to find fresh ideas and creative digital solutions to help businesses achieve zero carbon pollution or increase efficiency through approach technology, according to Adrian Marcellus, CEO of MyDIGITAL Corporation. It attracted over 100 entries from businesses across 30 nations”.

He continued,” Our problem is the first to be implemented via UpLink for the Southeast Asia area because of our affiliation with the World Economic Forum.”

Muhamad Umar Swift, CEO of Bursa Malaysia shared its part in this engagement. We are constantly looking to support innovative businesses that have the ability to record on the Exchange, which could potentially contain any of these businesses. To expand our investment market’s pipeline of diversified companies, we need to do this. Hosting this Challenge reinforces the importance of intentional efforts to engage on innovation in order to achieve a company’s conservation and business objectives, which are becoming increasingly important to investors from PLCs these times.

A board of 11 courts, which included representatives from Bursa Malaysia, MyDIGITAL Corporation, Cradle Fund, and each of the five participating PLCs, presented their innovative solutions during the Demo Day held at Bursa Malaysia as part of the final round. Five winners were chosen, with one winning option related to each of the five PLCs, as a result.

The RM100, 000 in gate funding for each success may be co-disbursed in phases by MYCentre4IR and Cradle Fund for the execution of the proof-of-concept pilot jobs. The companies will collaborate closely with their business partners, who will provide assistance and mentoring throughout the application phase of the year. The goal will be to achieve ESG outcomes and tangible process automation.

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Gamuda Berhad: Pioneering digital innovation in construction

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  • 40 % faster than traditional methods, thanks to Gamba Next-Gen Digital IBS.
  • In Australia’s Sydney Metro West tunnelling projects, an internally developed automatic hole bore system was used.

Gamuda’s participation in ICW and BuildXpo 2024 reflects its commitment to driving the construction sector forward

Gamuda Berhad has established itself as a significant player in the construction and infrastructure sectors in a time when online transformation is changing industries. This local company is not just adapting to alter, it’s influencing it, setting new standards for performance, conservation, and technological inclusion in an industry often seen as standard.

The Digital Revolution and Innovation in Development

At the heart of Gamuda’s success is its unwavering determination to modern technology. The Group’s commitment to driving change in digital transformation is demonstrated by its early adoption of the crucial national climate mitigation initiative, SMART ( Stormwater Management and Road Tunnel ).

” Innovation has been a proper difference for us since 1976, enabling us to stay ahead of the competition”, says Justin Chin Jing Ho, managing director of Gamuda Engineering.

The company’s digital transformation journey marked a significant milestone with the establishment of the Gamuda Excellence Transformation ( GET ) program in 2021. By deploying cutting-edge systems across the company, this effort has elevated Gamuda’s reputation for electronic superiority. At its core is the Gamuda Digital Operating System ( GDOS), a cloud-based platform that supports 4D and 5D Building Information Modelling ( BIM ) systems, Gamuda’s Next-Gen Digital Industrialised Building System ( IBS ), and Generative Artificial Intelligence ( GenAI ).

Regional Expertise Showcase at ICW and BuildXpo 2024

At the International Construction Week ( ICW) and the Malaysia International Building and Construction Industry Exhibition ( BuildXpo ) held recently at the Kuala Lumpur Convention Centre, Gamuda showcased its regional expertise in green construction solutions. The exhibition was organised into five clusters: Building, Machinery, Technology, Construction Materials, and Related Services, and featured key innovations which include Building Information Modelling ( BIM), AI applications, robotics, drone technology, and smart building solutions.

Gamuda’s Next-Gen Digital Industrialized Building System ( Next-Gen Digital IBS ), one of her most notable showcases, is one of its key highlights.

Next-Gen Digital IBS from Gamuda has revolutionized the building industry by enabling building component fabrication in handled factory settings. The Group’s online IBS collection includes data center, high-rise residential and commercial, as well as landed home.

From sky design, BIM integration, mechanical automation and production – this whole suite of online solutions offers flexibility in design, quick construction and superior quality finish.

Projects are now completed 40 % faster than traditional methods, significantly accelerating timelines and enhancing productivity. Up to 55 % of on-site labor requirements have been reduced, indicating a significant shift toward more cost-effective and less labor-intensive practices. Environmental benefits are also notable, with a 40 % reduction in embodied carbon, aligning with Gamuda’s commitment to sustainability.

But Gamuda’s innovation does n’t stop there. The company’s first autonomous tunnel bore machine (A-TBM ), which uses internal AI algorithms, can navigate without the need for a human to do so. This breakthrough technology, second deployed in Malaysia’s MRT Putrajaya Line, has now been introduced in Australia’s Sydney Metro West tunnelling functions, marking a first for the region.

Developed in-house, Gamuda’s A-TBM utilises custom artificial intelligence algorithms for autonomous control of TBM operations.

In a bold move that further cements its position as an industry leader, Gamuda is integrating generative AI ( GenAI ) into its operations. This cutting-edge technology is being used in a variety of firm processes:

    Tunnelling Operations: A GenAI-powered verbal agent for the Tunnel Insight system, built using Google Cloud’s Gemini designs on the Vertex AI program.

  1. Tender Proposals: Leveraging Vertex AI Search and Conversation to create conceptual research and talk applications for industry intelligence, design, and professional teams.
  2. Employee Empowerment: The creation of Bot Unify, an internal industry enabling employees to develop customized GenAI software.

Fundamental to ecology

The optimistic climate goals set forth in the Gamuda Green Plan 2025 reflect Gamuda’s commitment to sustainability. The plan includes the Group’s commitments to reducing emissions intensity by 30 % by 2025 and 45 % by 2030, with a goal to achieve net zero by 2050. &nbsp, Guided by four columns: Sustainable Planning and Design for Development, Our Group in Our Company, Environmental and Biodiversity Conservation, and Enhancing Sustainability via Digitalisation. Gamuda Green Plan 2025 illustrates Gamuda’s systematic approach to business progress with environmental management.

International Impact and Future Outlook

Gamuda’s local operations have improved as a result of its electronic transformation, which has also made it more profitable. The company’s modern techniques have provided a competitive advantage in emerging markets such as Singapore, Australia, Taiwan, Vietnam, and the United Kingdom, demonstrating the world relevance of its modern answers.

Events like ICW and BuildXpo 2024 give the construction industry an important platform to showcase their most recent innovations as the industry is under increasing pressure to become more sustainable and efficient.

Gamuda’s technology showcase at the event serves as a model for others. By integrating cutting-edge technologies with sustainable practices, the company is redefining what’s possible in construction and infrastructure development.

In the end, Gamuda Berhad’s transition from a traditional construction company to a digital innovator demonstrates the disruptive potential of technology in even the most well-established sectors. As it continues to push the boundaries of innovation, Gamuda is not just building structures, it’s constructing the future of the industry itself. For businesses across sectors, Gamuda’s story offers valuable lessons in the importance of embracing digital transformation, fostering a culture of innovation, and balancing technological advancement with environmental responsibility.

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Global ESG Monitor: Banks and insurance companies show progress in climate reporting

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  • Banks and insurance companies received a score of just under 50 %, which is substantially above the national average.
  • Financial institutions are aware of climate issues, but they do not provide in-depth monitoring.

Global ESG Monitor: Banks and insurance companies show progress in climate reporting

According to the most recent assessment from the Global ESG Monitor ( GEM) 2024, banks and insurance companies are reporting on climate issues but still need improvement. The study analysed the non-financial reporting of 194 companies, including 10 large insurers and 10 banks, with a focus on European Sustainability Reporting Standards ( ESRS ).

The financial industry, comprising banks and insurance companies, achieved only under 50 % of possible positions in reporting value, somewhat surpassing the total sample average of 45 %. This functionality both points to progress and highlights possible improvements.

Michael Diegelmann, co-founder of GEM and co-CEO of cometis, an IR and ESG firm, said,” Banks and insurance companies you tap into additional future-proof investment and profit opportunities in the long term through the stress they generate. They may also continue to raise the caliber of their reporting. There is still a lot of possible these, according to the best methods of the sector’s pioneers.

Financial institutions exhibit proper consciousness of pressing climate issues, according to the evaluation. They excelled in a number of ways, including demonstrating their devotion to the Paris Climate Agreement, making range emissions public, and presenting transition plans. However, there were significant gaps in the climate change reportage regarding endurance and the economic effects.

In resilience reporting, both sectors scored just under 60 % of points, outperforming the overall sample average of 38 %. But, endurance analyses were simply made available by about half of the nine major organizations, according to the European Central Bank. Companies only received 15 % of the possible points for reporting on the financial effects of climate change, which is mainly small.

Ariane Hofstetter, co-founder of GEM and committee member of cometis, emphasized the importance of open reporting:” Climate change is now causing huge costs today. Transparent monitoring is so important, because it is about more than just documented duty, but about the green transition of the market”.

The study also assessed ESRS compliance, where banks and insurers scored below 50 %. In light of their position as significant partners and stakeholders for a number of companies, this suggests that more open communication is required.

The International ESG Monitor, an impartial consider tank, has analysed over 1, 300 information from more than 500 firms globally since its foundation in 2020. Rules and criteria from numerous international requirements and frameworks are incorporated into its approach.

Click below to get the statement.

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Ant International launches sustainability scorecard for MSMEs

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  • GCash to captain effort, with Gprnt serving as it partner
  • seeks to assist MSMEs in monitoring social and environmental effects

Ant International launches sustainability scorecard for MSMEs

Ant International, in collaboration with industry partners, has announced the development of the MSME Sustainability Impact Scorecard ( MSME S-Card ), a digital solution designed to help Micro, Small, and Medium Enterprises ( MSMEs ) in Asia track their environmental and social impact.

The MSME S-Card is a component of Ant International’s Programme Sirius, which was launched in March 2024 to assist MSMEs in moving toward conservation. To establish solid ESG qualifications and unlock fresh economic opportunities, the scorecard aims to offer a refined electronic solution to MSMEs.

Leiming Chen, chief sustainability officer at Ant International, stated,” We hope that the MSME S-Card, the second initiative under Programme Sirius, will provide a benchmark for MSMEs and financial institutions to work together to support MSMEs ‘ sustainability journey, enabling them to lead to a shared vision for a better future while gaining practical benefits from green payments, ESG reporting, and natural financing”.

Gprnt, a online program for ESG monitoring and data, will serve as the tech partner for the effort. The start of the MSME S-Card, which coincides with Gprnt’s release of its own integrated Reporting and Marketplace equipment, which are designed to connect businesses to an ecosystem of solutions to support their funding and decarbonization needs, could not have come at a better time, according to Lionel Wong, executive producer of Gprnt.

GCash, a digital finance platform from the Philippines, will be the pilot participant for the MSME S-Card. According to Winsley Bangit, VP for New Businesses at GCash,” MSMEs will benefit from GCash’s partnerships with global leaders like Ant International, promoting responsible growth in line with GCash’s goal to uplift Filipinos ‘ everyday lives,” “GCash’s partnerships with global leaders such as Ant International will help enable MSMEs to access both capital and practical support.”

The initiative aims to address several issues that MSMEs face when adopting sustainable practices, including the insufficient knowledge of ESG practices, limited resources for sustainability initiatives, and limited supply of customized financial products for smaller businesses.

MSMEs can report and transform information using the MSME S-Card using digital platforms. The scorecard provides MSMEs with actionable insights to align with sustainability standards and strengthen their ESG credibility by integrating ESG metrics in a streamlined and digital manner.

Next year’s GCash pilot project is anticipated to launch, with additional customization of the Philippines ‘ scorecard benchmarks based on local needs.

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Hong Leong Bank unveils sustainable finance framework with US.5 billion commitment

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  • Provided US$273 million in green auto loans
  • Financed US$3.3 billion of green and affordable mortgages

Hong Leong Bank unveils sustainable finance framework with US$4.5 billion commitment

Hong Leong Bank (HLB) has launched its inaugural Sustainable Finance Framework (SFF) on October 29, 2024, coinciding with World Sustainability Day. The framework outlines the bank’s plan to mobilise US$4.5 billion (RM20 billion) over the next five years to support various Green Projects, marking a significant step in HLB’s sustainability journey.

The SFF is designed to finance projects that contribute to a sustainable future, aligning with HLB’s broader sustainability objectives. The framework will focus on funding initiatives in several key areas, namely renewable energy, energy efficiency, green building, affordable housing, clean transportation and logistics, and waste management.

Kevin Lam, group nanaging director and CEO of HLB (pic), emphasised the importance of sustainability in the bank’s strategy: “We see sustainability as a catalyst for growth, driving positive transformation for our customers and expanding our reach to new audiences. By integrating ESG considerations into our core strategies, processes, and solutions, we strive to find common ground between our responsibilities and business needs.”

HLB has thus far pledged to achieve US$911 million (RM4 billion) in renewable energy financing by 2025 and has approved over US$797 million (RM3.5 billion) in financing to date. 

The HLB SFF adheres to several key principles and standards, including the Loan Market Association (LMA) Green, Social and Sustainability-linked Loan Principles, the International Capital Market Association’s (ICMA) Green, Social and Sustainability Bond Principles, as well as the Securities Commission Malaysia’s Principles-Based Sustainable and Responsible Investment (SRI) Taxonomy.

Chow Sheng Wai, chief sustainability officer of HLB, stated: “The HLB SFF is more than just a framework for the Bank; it’s a roadmap for a greener future for our next generation. Apart from adhering to rigorous standards and aligning with global best practices, we also sought independent assessment from a Second Party Opinion Provider, RAM Sustainability, achieving a Gold rating.”

HLB has recently received recognition for its ESG efforts, including the Overall Excellence award at the Minority Shareholders Watch Group (MSWG) National Corporate Governance and Sustainability Awards and double gold awards in the financial services sector at The Edge Malaysia ESG Awards in 2022 and 2023.

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Newton Hexon Capital, PMB Investment Berhad to launch Newton Hexon Asia Growth FUnd, driving green business development in Asia

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  • Key sectors include renewable energy, waste-to-energy, hydrogen, EVs, etc
  • Fund targets Asia’s growing green economy by investing in high-potential businesses

From Left - Roy Fung (managing partner, Newton Hexon Capital PLT), Naquiyuddin Ibni Tuanku Ja’afar (Honorable chairman, Newton Group) & Mahdzir Othman (Group CEO, Pelaburan MARA Berhad).

Newton Hexon Capital, a leading investment firm, and PMB Investment Berhad, an Islamic Fund Management Company under Pelaburan MARA Berhad, have announced the launch of the Newton Hexon Asia Growth Fund. In a joint statement, they stated that this Shariah-compliant private fund is designed to capitalise on Asia’s rapidly growing green economy by investing in high-potential businesses across diverse sectors.

Mohd Idzwan Izuddin Ab Rahman, chairman of PMB Investment, expressed his enthusiasm for this initiative, saying, “PMB Investment serves as the investment manager for this private fund in Malaysia, leveraging our licensed status. This partnership marks a significant milestone as we expand our commitment to sustainable investments. Through the Newton Hexon Asia Growth Fund, we aim to drive impactful growth in the green economy across Asia, offering our investors access to innovative companies shaping a greener future.”

Meanwhile, Roy Fung, managing partner of Newton Hexon Capital, commented, “We are honoured to mark this defining moment in our journey together with PMB Investment on this forward-thinking fund. The Newton Hexon Asia Growth Fund will serve as a platform for businesses actively transforming Asia’s green landscape, providing both financial returns and lasting, positive ESG impacts. This fund represents not just capital, but a commitment to innovation, integrity, and collaboration in the investment world.”

The Newton Hexon Asia Growth Fund offers clients, partners, investors, and governments an opportunity to engage in the region’s swift transition towards sustainability. Focusing on key sectors such as renewable energy, energy efficiency, waste-to-energy, hydrogen generation, electric vehicles and related technologies, and urban farming, the fund aims to support businesses leading in environmentally sustainable solutions.

Key Investment Criteria

The Newton Hexon Asia Growth Fund will prioritise projects that demonstrate a positive environmental impact. Key investment criteria include:

  • Adherence to International Guidelines: Projects must align with recognised international standards for environmental sustainability.
  • Carbon Emission Reduction: Investments will be evaluated based on their potential to reduce carbon emissions. 
  • Energy Savings: The fund will favor projects that promote energy efficiency and conservation.
  • Waste Management: Initiatives focused on sustainable waste management and recycling will be considered.
  • Social Impact: Projects contributing to social good and community development will be prioritized.
  • Corporate Governance: Strong corporate governance practices will be a key consideration.
  • Regulatory Compliance: Projects must comply with relevant environmental regulations and standards.

ESG Certification and Ongoing Management

Newton Hexon Capital has partnered with leading providers of testing, inspection, and certification services to ensure the fund adheres to high environmental, social, and governance  standards. These partners will assess key ESG factors such as energy savings, indoor air quality, and overall sustainability impact.

To underscore its commitment to sustainability, the fund may seek certification from additional international and local bodies as required. Ongoing portfolio management will ensure all investments continue to meet or exceed global ESG standards.

For more information on PMB Investment’s products, please visit www.pmbinvestment.com.my 

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