Risks rising for Asian banks from climate change | FinanceAsia

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Bankers are assessing how these dangers are playing out for their risks and how the so-called” passive” credit risk may be growing as a result of the recent severe storms that have ravaged Asia Pacific ( Apac ).

In early September, Super Typhoon Yagi caused billions of dollars of financial losses and cost hundreds of lives across Hainan, Guandong, the Philippines, Vietnam, Myanmar, and to a lesser degree Hong Kong. Banks need to realize how climate change makes lending more prone to risk because the insurance gap is also significant throughout the area. Banks are currently protected by ( re )insurance against the most extreme weather events, but if that becomes more expensive or difficult to access, the physical risks of climate change become more directly transmitted to the banks.

Tom Mortlock, weather threat expert guide – analytics, Apac, Aon, told FinanceAsia:” Financial institutions and the stream of credit is key to economic development across Asia, but so too is the insurance that sits behind this, that de-risks the lending. Sadly, Asia’s plan distance is one of the largest in the world, with only 14 % of economic costs covered by insurance in 2023, making banking in areas with high climate risk a potentially dangerous task.

Why is climate change important for financial institutions? is a report that Aon has just released.

Mortlock remarked,” Climate change is increasing the underlying risk profile in many locations and over time scales that banks are lending on. Low insurance coverage and high climate risk, combined with low insurance coverage and high climate risk, can pose a” silent” credit risk on lenders ‘ books, which has so far gone unnoticed.

Analytical analysis might be essential to weighing the risks. We are now starting to see a variety of financial institutions use traditional insurance-based analytics to understand their climate risk exposure and incorporate this into their loan origination and risk appetite decisions, according to Mortlock. &nbsp,

Although extreme weather is almost unavoidable in every region, some Asian cities are much better suited to extreme weather than others thanks to investments in drainage systems.

The Climate Risk Group’s Head of Corporate and Financing Sector Engagement, Philip Tapsall, head of the Cross-Department Initiative, stated:” Hong Kong is better prepared than other cities and regions for extreme weather events that are expected to worsen with climate change, particularly typhoons and flooding.”

However, banks operating in Hong Kong are significantly more exposed to less developed regions like south-eastern China and Southeast Asia ( SEA ), where climate change raises financial risks to balance sheets due to direct losses and economic effects.

Exposures can be caused by disruptions to trade, construction delays in supply chains, or direct financial losses caused by bank office shut downs, etc. &nbsp,

In order to help banks assess their physical risks to climate change in the city earlier this year, XDI collaborated with the Hong Kong Monetary Authority and KPMG. &nbsp,

Regulation rising

Aon’s Mortlock also noted a rise in the region’s incoming regulatory issues.

He noted that” we have a raft of climate-related regulation coming in across Asian jurisdictions where businesses will have to start making their climate related risks known to the market.” In fact, according to some analysis we conducted, over 10,000 listed companies will be required to disclose climate information by 2027 for the Asia-Pacific region.

According to Mortlock, “at the same time, regulators are beginning to conduct their own climate stress tests on the financial services sector to make sure there is enough money in the system to withstand climate shocks both now and in the future,” &nbsp,

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Islamic finance players eye Middle East growth | FinanceAsia

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The main banks and financing method used by Muslim communities is Islamic finance. The Shariah-compliant section was created in accordance with Islamic law, which forbids specific activities like the collection of interests and investments in dangerous businesses like tobacco and pornography.

Islamic finance accounts for around 3 % of the global financial markets by valued assets, with key activities in Southeast Asian ( SEA ) markets such as Indonesia, Malaysia and Brunei, and the Middle Eastern region. Islamic finance consists of Islamic banking, Sukuk ( fixed income ), Islamic equity funds and Islamic insurance, among other lines of business. &nbsp,

In the Middle East, the Islamic finance market is estimated to be worth$ 2 trillion in 2024 and is expected to reach$ 2.57 trillion by 2029, according to reports. Iran and Saudi Arabia are two of the world’s largest markets by Shariah-compliant assets, with over$ 400 billion in both countries.

According to S&amp, P Global Ratings, the Gulf Cooperation Council ( GCC ) countries had the highest percentage of Islamic banking assets in 2023, making up 70 % of that percentage.

In this part, FinanceAsia spoke to promote players to find out where they see the most options.

Sukuk: an alternative funding cause

Data from S&amp, P Global Ratings suggested that 37 % of the Sukuk securities in 2023 came from manufacturers based in GCC places, revealing a growing Islamic money have from Arab businesses. Saudi Arabia has been the major growth drivers, especially in dollar-denominated Sukuk securities.

Some proceeds from the Sukuk issuances are channelled to activities related to energy transition and sustainability, on top of general business operations, according to Sue Lee, director and Asia Pacific ( Apac ) head of index investment strategy at S&amp, P Dow Jones Indices.

This coincides with a trend across the majority of Arab governments to cut back on oil-related economy. New technologies like natural technology and clean energy are higher on the agenda in the context of the growth travel. For instance, Saudi Arabia wants to use 50 % of alternative energy by 2030 and has a goal of going from zero to zero by 2060.

In order to accomplish these objectives, significant funding is required to support the development of the region’s facilities and engineering, which in turn increased the volume of fixed income bonds issued.

Sukuk, as a Shariah-compliant alternative to conventional ties, provides lenders with a diversified revenue resource by tapping into a unique investment pool, Lee said. For instance, markets in SEA, such as Malaysia, are long-time officials within the Islamic banking area.

In the first quarter of 2024, Sukuk items performed statistically better than its competition on the secondary marketplace.

Lee explained that this is related to a shorter Sukuk lifespan on average, which is typically less than five centuries. Short-term lending has become advantageous for the Muslim fixed income solution in a market with rising interest rates.

However, green Sukuk is growing rapidly from a small foundation, supporting the energy transition of Arab countries.

Equity money: growing buyer demand

Munirah Khairuddin, chief executive officer ( CEO ) Malaysia and managing director, strategic distribution and institutional client relations, Southeast Asia and global Shariah, at Principal Asset Management, said that the teams is seeing growing interest from Middle Eastern investors, especially those based in Saudi.

” As Middle Eastern markets grow and expand, there will be an increased need for Shariah-compliant purchase goods. Traders who are guided by Islamist beliefs will look for opportunities that are in line with their beliefs, she said.

A premium is currently relevant to other asset lessons as well as Shariah-compliant opportunities.

For example, the S&amp, P 500 Shariah, an index which covers all Shariah-compliant constituents of S&amp, P 500, offers a 1-year return at 26.77 %, slightly higher than that of S&amp, P 500 at 26.15 %. Over the past five decades, according to Lieu, Shariah-compliant global capital indices generated on average 2.5 % extra return per year compared to their regular counterparts. &nbsp, &nbsp,

The Shariah-compliant index, filtered with Shariah rules, taking out monetary stocks and high-leveraged sectors such as energy, which in turn leads to an increased conduct of other sectors such as technology stocks. Islamic indices will typically outperform financials in times of outperformance for the information technology ( IT ) sector.

Steven Larson, investment manager, world stocks, at Principal Financial Group, echoed these views, expecting boosting returns generated from IT, logistics, medical and biological sectors.

He claimed that the worldwide Islamic finance sector’s assets are just growing swiftly in a select few key markets.

Larson added:” Additionally, we see an increased appetite for private market materials, however, the market lacks shariah-compliant structures to cater to the rising demand. However, we are seeing more efforts from property managers to create more shariah-compliant strategies in real property, private financing and secret equity”.

On top of that,” Shariah rules share a lot of commonalities with environmental, social and governance ( ESG) principles. And as more buyers look to these rules while investing, results of ESG or Shariah-compliant firms may get affected”, Lee pointed out.

She said that a rise in silent property should be a potential prospect because Islamic cash ‘ percentage of quiet assets under control is much lower than that of regular ones.

Meanwhile, Kuala Lumpur-based Khairuddine pointed out how regional initiatives and partnerships can help standardise practices, enhance liquidity and create larger markets. To make Islamic finance more accessible, improvements are also made to trading platforms, settlement systems, and regulatory frameworks.

Digitising Islamic finance

Islamic finance also faces a problem of limited products, as well as investment appetites. Saif Khan, founder of iFintechpro, a fintech player focussing on Islamic finance, said enhances in technology and digitisation would help.

Middle Easterners are increasingly using digital products, with more and more people opting for them. The landscape is shifting towards a digital-first approach”, he told FA.

These include digital Islamic banking, digital Sukuk issuances, and tokenisation of real-world assets, on which Khan’s team is working on. He claimed that the blockchain technology would lower thresholds and improve risk profiles of investment projects, thereby making Islamic investment more accessible. For example, assets like buildings, solar farms and agricultural projects can be tokenise, enabling retail investors to invest and benefit.

” Technology can reduce the wealth gap by making high-quality investment products available to everyone”, he said. &nbsp, &nbsp,

Khan claimed that some Middle Eastern markets have already established a welcoming regulatory framework despite the fact that the practice is still in its infancy. The Dubai Financial Services Authority ( DFSA ) introduced its rules over investment tokens in Dubai in 2021 as part of its digital asset regime. Qatar and Saudi Arabia have also put in place the same guidance.

According to Islamic law, tokenization of Waqfs, which refers to endowments of property that are given for religious and charitable purposes, could be a useful application.

” This can lead to tremendous social impact by providing transparency, traceability and greater trust”, he explained. ” With smart contracts on chain, updates could be automated and simplified for stakeholders”.

To press ahead, more communication between regulators and different players is needed, Khan added. For example, legal structuring, investor protection, liquidity and market education are some aspects to carefully consider.

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World must measure ‘what matters’ for green transition: UNDP

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PUBLISHED: 30 Sep 2024 at 19: 46

Niamh Collier-Smith, Resident Representative of the United Nations Development Programme (UNDP) in Thailand.
Niamh Collier-Smith, Resident Representative of the United Nations Development Programme ( UNDP ) in Thailand.

According to Niamh Collier-Smith, Resident Representative of the United Nations Development Programme ( UNDP ) in Thailand, the world needs to focus on measuring what matters, setting ambitious climate goals, and coordinating private finances to make the green transition.

She was speaking on Monday at the Siam Cement Group community titled “ESG Symposium 2024: Driving Inclusive Green Transition” at the Queen Sirikit National Convention Center.

The website, focusing on the natural transition to net zero carbon pollution through the ESG ( Environmental, Social and Governance ) foundation, is part of the Sustainability Expo 2024.

Ms. Collier-Smith said during her speech that the world should shift from” a society that values what it measures to a society that values what it values.”

She claimed that the world used the gross domestic product only to measure global progress back in the 1990s, and that this was not a reliable way to measure actual international progress.

Since then, the universe has used “life duration” and “years of training” rather to measure progress in the world, she said.

Human Development Index

Eventually, the Human Development Index ( HDI), which can help see correlations between humans and development, came into affect, she said.

However, she pointed out that the UNDP had recognised that” the planet” had been missing from the formula on how to measure development, and therefore, the Planetary Pressures-Adjusted Human Development Index ( PHDI) was implemented to help the world measure development with respect to the environment.

However, the picture of improvement had changed, and according to UNDP, 50 % of nations had dropped out of the” High Human Development Index” because no nation in the world can achieve high growth without straining the earth.

” Therefore, what we should be heading]for ] is low planetary impact, high human development”, she said. ” That is the next frontier of human development”.

” To get there, every state has to change”, she added.

To achieve this objective, every land make have ambitious climate commitments, she said. UN member states have published a report called” The Pact for the Future”, where they agree not to pass on today’s challenges to the next generation, she said.

She said that they must make sure that future generations have the flexibility to make their own decisions.

According to her, United Nations member states you abide by the Nationally Determined Contributions or the Climate Vows on the Paris Agreement in order to do so.

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US may block Indonesia nickel on forced labor issues – Asia Times

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Indonesian nickel has been added to the list of products that are made under forced labor by the US Department of Labor, potentially causing a major setback for the East Asian nation’s effort to become a major global supplier of sought-after battery materials for both Western and Chinese companies.

The report cites media coverage and numerous reports by Organizations on working conditions at the nickel smelters located on the islands of Sulawesi and Maluku in eastern Indonesia. It has no immediate constitutional or regulation ramifications.

Employees from both countries work in partnership with Chinese and Indian companies and patrol the industrial parks where they reportedly face unfair pay, forced extra, and constant surveillance. Foreign workers are also subject to restrictions on their actions and passport expropriation.

Staff who spoke to Asia Times in Morowali, a center of Sulawesi that has grown to be a hotspot for the business, repeated similar claims while also bringing up unsafe working conditions.

According to Muhammad Taufik, a contractor at Indonesia Morowali Industrial Park and a part of the Serikat Buruh Industri Pertambangan federation,” we’re dealing with not only rotating technology but also with economic issues like working at hills, which frequently leads to injuries.” ” Creation is prioritized over protection”.

Between 2015 and 2023, some 91 staff died in deadly workplace accidents linked to the copper processing market, according to studies by Trend Asia, a Jakarta-based organization that works on conservation issues.

The worst injury was in December 2023 when a furnace explosion killed 21 staff – 13 Indonesian and 8 Taiwanese. The Indonesian Association of Nickel Miners did not respond to Asia Times ‘ request for comment on the claims made by the Department of Labor and the staff.

The industrial gardens where the alleged abuses occur are at the center of Indonesia’s metal industry and the Indonesian administration’s business plan, which emphasizes adding value to minerals rather than exporting them as natural materials.

Many of the government’s designated national strategic initiatives have advantages, including faster regulatory approval and greater security from the military and police.

Visitors or workers who object to the environmental impact or working problems assert that they have been the subject of abuse and analysis from authorities. The US Department of Labor report provides more support for some people’s claims that Indonesia needs to tackle its metal industry.

The head of research at Jatam, a Jakarta-based NGO that tracks abuses in the mining industry,” We always demand an end to this crazy nickel project and a thorough evaluation of nickel downstream operations.” ” Because the social and environmental costs are too high.”

This, nevertheless, seems doubtful without an additional drive. The Indonesian government is betting greatly on a plan of “downstreaming” its ample supplies of copper ore as a way to growth. In 2023, Indonesia accounted for 40.2 % of global nickel production, according to S&amp, P Global research.

According to Macquarie research, Indonesia’s share may increase to as much as 75 % over the next four to five years as it continues to grow and other global producers are unable to compete with its prohibitively low prices. &nbsp,

Indonesia is already nearly entirely in charge of the world’s production of MHP, a powdery green blend of nickel and cobalt that has become the preferred feedstock for many battery manufacturers.

Indonesia’s industry now finds itself caught in the crosshairs of both ESG ( Environmental, Social and Governance ) concerns and geopolitical tensions.

So far, the industry has been built as a Chinese-Indonesian partnership. China has provided the capital, technical know-how and markets in the form of its booming EV industry. Indonesia has supported the mines and used export bans and tax breaks to entice Chinese companies to build refineries in Indonesia.

The Indonesian government is currently making an effort to diversify and move further up the value chain to produce batteries and EVs in Indonesia. South Korean companies LG and Hyundai have also begun production in Indonesia along with Chinese battery and electric vehicle producers CATL, Wuling, and BYD.

With the exception of America’s Ford, Western refiners and automakers have dragged their feet on investing in Indonesia. Projects that have been rumored or questioned by companies like Tesla, Volkswagen, and BASF have either failed to materialize or have collapsed.

The industry’s negative impact on the environment and labor conditions have not improved matters. Due to the US-led “derisking” of their supply chains from China, an equally significant factor is the reluctance to work with Chinese companies.

Batteries and EVs are only permitted to receive generous tax credits under the US Inflation Reduction Act if they use minerals from nations that have no free trade agreements with America, which Indonesia does not. Subsidy conditions also severely restrict the amount of exposure these supply chains can have to Chinese companies.

Meanwhile, the European Union will soon launch a Battery Passport setting strict standards, including due diligence requirements, on social and environmental risks.

Senior executives at Indonesian nickel companies tell the truth, but senior executives say that Western companies are interested in working with them because their domestic governments’ regulations make it difficult to do so.

The latest US Department of Labor report will add to those complications. Discussions between the US and Indonesia to reach a” critical mineral agreement” to allow Indonesian nickel to enter US markets and receive subsidies have stalled.

Concerns about Chinese influence in Indonesia’s supply chain have also been raised by prominent US senators. Federal agency allegations of forced labor will only add more to the mix.

However, without Indonesian nickel, America will struggle to meet its goals for EV adoption and decarbonization, according to Tim Bush, chief battery materials analyst at UBS, who spoke to Asia Times earlier this year.

EV adoption is already falling behind projections in America, partially due to the relatively high costs of American electric vehicles, while more affordable Chinese vehicles are subject to 100 % tariffs.

However, Indonesia stands to lose out too. Iron phosphate EV batteries, which use no nickel and are cheaper, are gaining global market share.

Nickel and cobalt batteries with higher price tags will still have their place, but probably more so in wealthy markets like the US and Europe, where consumers are willing to pay extra for higher performance and wider range. Which means Indonesia’s nickel could soon be smuggled out of the markets where it is most lucratively in demand.

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TNG eWallet, Arus Oil partner to power Malaysia’s circular economy for a sustainable future

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  • People is recycle used cooking oil and receive payment straight into their app.
  • Encourage M’sians to discard used cooking oil, earn incentives &amp, positively impact the environment

The partnership between TNG Digital and Arus Oil was formalised with the signing of a MoU at TNG Digital’s office. The MoU was signed by representatives from both parties, including [from left] Chatichai Chong Jian Wei, chief marketing officer of Arus Oil, Mohd Syazwan bin Abd Majid,CEO of Arus Oil, Alan Ni, CEO of TNG Digital, and Adeline Lum, director of Merchant Business (Commercial) of TNG Digital.

TNG Digital Sdn. Malaysia’s largest integrated fintech player, Bhd, has made a significant step toward sustainability by forming a pioneering partnership with Arus Oil ( My Protech Sdn Bhd ), marking the company’s first entry into the circular economy. The parties stated in a joint statement that this collaboration will help TNG eWallet users recycle used cooking oil (UCO ) and receive payments directly into their eWallets, converting waste into money while aiding in a more sustainable future.

Used cooking oil is frequently discarded rather than recycled, which causes waste and wasted solutions. Fuel can eventually enter the sewer system as a result of poor disposal, polluting rivers and seas. TNG Digital and Arus Oil are urging both homes and businesses to use Arus Oil via TNG app to embrace responsible and effective oil recycling methods in response.

Alan Ni, CEO of TNG Digital, shared,” We are excited to start our first economic, social, and governance ( ESG) association with Arus Oil, aimed at promoting recycling and conservation. As the country’s leading app, we believe our duties extend beyond providing economic products and services. Through our TNG eWallet platform, we are committed to creating a complete and lasting ecosystem that improves both the well-being of our customers and the atmosphere.

” With this effort, we encourage Malay to discard their used cooking oil, earn returns, and create a positive impact on the environment through our system. He continued,” This agreement with Arus Oil is a major step forward toward a brighter and more sustainable future for all.”

” This program not only reduces risks related to environmental pollution, but it also encourages the development of renewable energy and the decrease of waste, while also offering households and businesses tangible financial advantages,” Ni said.

Arus Oil, which began its fuel collection initiatives in 2017, has previously collected 1, 000 kilograms of UCO through designated set items. Arus Oil now has TNG app as its first app spouse, making it easier and faster to recycle materials and to have money credited to users ‘ eWallets in real-time.

CEO of My Protech, Syazwan Majid, stated,” At Arus Oil, we are driven by the conviction that conservation is an opportunity to have a positive impact on both our culture and community. This collaboration with the No. By turning spend into a source, the 1 eWallet in Malaysia complies with our goal to create a greener society. By facilitating the disposal of UCO through the digital system, we are empowering Malaysians to directly support environmental protection and solar power while earning rewards. Collectively, we are not just imagining a ecological future—we are constantly building it”.

If home UCO is kept in a non-flammable place at room temperatures, it can be collected and stored in a crystal bottle or jerry is. Restaurants that handle larger amounts of UCO are advised to apply barrels. People who want to buy their UCO to Arus Oil using TNG app can do this:

1. Click the Arus Oil symbol in the TNG paytm to access it.

2. Click on” Create Appointment”.

3. Include the information needed, along with a photograph of the to be taken UCO.

4. With a minimal pickup weight of 5 kg, Atlas Oil may email the user to organize a delivery at their convenience.

Users ‘ Voyager card will immediately receive funds earned from recycling UCO, which can be used for bills and other purposes, adding value to this environmentally friendly actions.

Arus Oil, which is now based in the Klang Valley, intends to expand its services to other locations, including East Malaysia and the northern territory. During the battle time from 9 September to 23 September 2024, the government can even take UCO to the Arus Oil Collection Center at 30, Jalan Industri USJ 1/4, Taman Perindustrian USJ, 47600 Subang Jaya, Selangor, recycle it via the TNG eWallet app, and get a specific rate of RM3/kg.

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MyDigital, Bursa Malaysia pen Memorandum of Collaboration to drive ESG innovations through digital transformation

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  • signed MoUs with 5 PLCs in Malaysia
  • MoC helps govt’s push for companies to promote ESG goals through online transition

Left to Right: Gobind Singh Deo, minister of Digital; Adrian Marcellus, CEO of MyDIGITAL Corporation; Muhamad Umar Swift, CEO of Bursa Malaysia; and Abdul Farid Alias, senior independent non-executive director of Bursa Malaysia at the Memorandum of Collaboration Signing Ceremony Between MyDIGITAL Corporation and Bursa Malaysia.

MyDigital Corporation and Bursa Malaysia Berhad have entered into a Memorandum of Collaboration ( MoC ) to empower Public Listed Companies ( PLCs ) in Malaysia to achieve their Environmental, Social, and Governance ( ESG) goals through the adoption of digital technologies. Through the Malaysia Centre4IR ESG Innovation Challenge, which was announced last month, the MoC formalizes the two factions ‘ previous engagement.

The MoC was signed by Umar Swift, CEO of Bursa Malaysia, and Adrian Marcellus, CEO of MyDIGITAL Corporation and head of the Malaysia Centre for the Fourth Industrial Revolution ( MYCentre4IR ). The filing meeting was witnessed by Gobind Singh Deo, Minister of Digital Malaysia, and Abdul Farid al Alias, Senior Independent Non-Executive Director of Bursa Malaysia.

The MoC supports companies in accelerating their ESG excursion through online transformation by working with the government through the Ministry of Digital. In particular, there is an emphasis on the need for Fourth Industrial Revolution ( 4IR ) technologies to be at the forefront of this transformation, enabling corporates to address pressing challenges, the parties stated in a statement.

Under the context of the MoC, MyDigital Corporation and Bursa Malaysia did examine a range of activities, including:

    Co-Authoring Thought Leadership Publications: Leveraging the Malaysia Centre for the Fourth Industrial Revolution ( MYCentre4IR ) network, in affiliation with the World Economic Forum ( The Forum ), to produce content on sustainability, green supply chain management, digital transformation, and other related fields.

  1. Best Practices Exchange: Facilitating information exchange between Bursa Malaysia, MYCentre4IR, and The Forum on important matters related to conservation and natural activities.
  2. Hosting the Malaysia Centre4IR ESG Innovation Challenge: An development issue that connects Malaysian PLCs with vivid imaginations and promising companies and entrepreneurs from all over the world. The objective is to find creative solutions that address business issues, which might lead to an increase in business competitiveness and benefiting businesses and the atmosphere.

Gobind commented,” This event is testament to our government’s continued digital conversion trip. Additionally, it demonstrates the government’s strong desire to place ecology at the center of our growth plans.

He added,” I was pleased to read that the article addressed Bursa Malaysia’s requirement for publicly-listed companies to disclose their sustainability practices in their annual reports. In truth, the article also highlighted the Malaysia Centre4IR ESG Innovation Challenge. The initiative exemplifies how partnerships and innovation can contribute to important environmental progress, the organization continued.

Commenting on the engagement, Umar Swift said,” At the Exchange, we have long recognised online acceleration as a vital enabler for driving sustainable development and competitive benefit among Indonesian companies. This MoC with MyDigital Corporation is a positive move in our efforts to spread the concept that ESG and digitalization go hand in hand to promote sustainable development.

” We anticipate that the collaboration’s activities will encourage and motivate more businesses to use digitalization features to enhance their entire ecology performance and operational efficiency,” he added.

Adrian Marcellus remarked,” Tomorrow’s MoC with Bursa Malaysia is a crucial step in our shared goal to improve conservation through electronic technology. We want to promote sustainability and collaborate to create a more adaptable and future-ready modern surroundings by leveraging MYCentre4IR’s partnership with the World Economic Forum.

” We look forward to the Malaysia Centre4IR ESG Innovation Challenge and the thought-leadership and capacity-building activities that will be part of this partnership with our anchor business lovers,” he continued.

MoUs with 5 Malaysian PLCs

At the signing of the MoC, MyDigital Corporation also signed Memoranda of Understanding with five Malaysian PLCs, including CJ Century Logistics Holdings Berhad, Globetronics Technology Berhad, Malayan Banking Berhad, REDtone Digital Berhad, and Sunway Innovation Labs ( representing Sunway Group ).

These MoUs are an extension of the preceding MYCentre4IR Innovation Challenge. On November 7, 2024, the Innovation Challenge will result with a Demo Day at Bursa Malaysia, where five of the most promising suggestions may receive funding opportunities for pilot projects as well as access to a community of business leaders and traders.

Visit the Malaysia Centre4IR ESG Innovation Challenge’s website for more details and how to take part.

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Cenergi SEA Berhad: Driving sustainable energy solutions in Southeast Asia

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  • may be promoting sustainable solutions at future ISES.
  • Cenergi has secured a total of 65 green energyprojects, with 25 of them being new jobs.

Cenergi SEA Berhad: Driving sustainable energy solutions in Southeast Asia

Cenergi SEA Berhad: Driving sustainable energy solutions in Southeast AsiaCenergi SEA Berhad, a division of UEM Lestra Berhad, is a market leader in Southeast Asia for clean energy alternatives. We specialise in different renewable energy projects, including gas to electricity and bioCNG from palm oil mill waste, carbon pellets/briquettes from empty fruits number ( EFB), solar, energy reliability and small hydro jobs. Cenergi is poised to be at the vanguard of Malaysia’s clean energy environment with a total capacity of 143 MW from operating resources and initiatives in development.

The Approach and Vision of Cenergi SEA for Sustainable Energy

Cenergi’s presence at the 6th International Sustainable Energy Summit ( ISES ) 2024 aims to enhance our industry presence, foster collaborative efforts, and advance our mission of promoting sustainable energy solutions. Through communication, knowledge exchange, plan advocacy, investment exploration and CSR activities, we seek to consolidate our role as a key player in the transition towards a sustainable energy future in Southeast Asia.

The organization has secured 25 new renewable energy projects, which are already in various stages of development and pre-development. These jobs encompass a diverse collection of technology, including 16 Biogas Power Plants, 1 Big Scale Solar Farm, 1 Rooftop Solar setup, 4 Biomass Pellet/Briquette Plants, 2 Little Hydro Power Flowers, and 1 BioCNG Plant.

To complement the renewable energy business, Cenergi also participate&nbsp, in the selling and trading of renewable energy certificate ( REC ) and carbon credit. The company has been offering biogas and solar RECs, and to market technology-based carbon credits in the near future.

Innovation and Technology

Our sustainable energy projects are fueled by a variety of innovative technologies, which show how committed we are to reducing carbon emissions, improving energy efficiency, and promoting the use of renewable energy sources. The various systems we use are briefly summarized in the following table.

Biogas Technology:

Cenergi is the largest developer, owner and operator of biogas power plants in Malaysia. Our biogas power plant in Jerantut, Pahang, recognized by the Malaysia Book of Records, is the biggest palm oil mill effluent ( POME) grid-connected biogas power plant in the country, with a capacity of 5.5 MW. We utilise anaerobic digestion to transform agricultural waste, POME, and other organic materials into biogas, which is then used to generate electricity.

Solar Photovoltaic ( PV ) Systems:

Cenergi is actively involved in the development and deployment of solar PV systems, ranging from large-scale solar farms to rooftop installations. The company utilizes advanced PV technology, including high-efficiency solar panels and smart inverters, to maximize energy output and system reliability.

Biomass Pellet:

Cenergi converts empty fruit bunches ( EFBs ), a significant byproduct of palm oil production, into pellets and briquettes. This process maximizes biomass resource, turning waste into&nbsp, valuable products. EFF pellets and briquettes are a renewable and sustainable alternative to fossil fuels because they release less greenhouse gases and pollutants than traditional fossil fuels.

BioCNG:

In Sabah, Cenergi is working on its first bioCNG project, which converts POME biogas into compressed biomethane or bioCNG. The BioCNG produced would be a direct substitute for natural gas as a fuel source because it would have similar characteristics to fossil fuel-based natural gas.

Small Hydro:

Cenergi also makes small-scale hydropower investments using the “run-of-river” idea. Small hydropower contributes significantly to the achievement of the National Energy Transition Roadmap ( NETR )’s renewable energy targets, which are crucial for long-term decarbonization scenarios.

Environmental and Social Impact

The ecosystem projects led by Cenergi have had significant effects on both the environment and the local communities. For example, the implementation of enclosed anaerobic treatment systems for biogas-to-electricity projects has effectively avoided methane emissions, mitigated odor, and improved water quality. These initiatives have also helped to boost the local economy by generating income through the sale of carbon credits and by fostering job opportunities and skill development for local communities.

Adoption Challenges and Policy Recommendations

High initial capital costs, grid integration and infrastructure challenges, regulatory and policy barriers, and technological limitations are the main obstacles that the industry faces as it strives to become more popular for renewable energy projects. To address these challenges, effective policies such as feed-in tariffs ( FiTs ), power purchase agreements ( PPAs ), and net energy metering ( NEM) have proven successful in promoting renewable energy adoption. To increase solar energy systems ‘ overall performance, lower costs, and maintain research and development in solar and battery storage technology is necessary.

Cenergi SEA Berhad remains committed to driving sustainable energy solutions in Southeast Asia through innovative technologies, strategic partnerships, and policy advocacy. By addressing the environmental, economic, and social aspects of renewable energy projects, the company aims to contribute to a cleaner and greener future for the region.

The 6th International Sustainable Energy Summit ( ISES ) 2024, a key event for sustainable energy dialogue and innovation, is set to take place on August 20-21, 2024, at the Kuala Lumpur Convention Centre (KLCC). The summit will be officiated by Malaysia’s Prime Minister, Dato ‘ Seri Anwar Ibrahim, who will be serving as the country’s ambassador to the Sustainable Energy Development Authority ( SEDA ) Malaysia. The event, which has the theme” Accelerating Energy Transition Through Innovation,” reflects Malaysia’s commitment to leading the ASEAN region in the global energy transition through novel approaches and technologies.

The summit will have a crucial role in supporting Malaysia’s ambitious goal of achieving a 70 % renewable energy mix in power generation by 2050, as well as achieving carbon neutrality by the same year. Attendees can expect a series of Plenary Sessions and Deep Dive Workshops led by prominent energy experts and leaders, covering topics such as green mobility, grid modernization, and the integration of Environmental, Social, and Governance ( ESG) principles into investment and financing strategies. Visit ises. org. my for more information.

Cenergi SEA Berhad’s CEO is Hairol Azizi Tajudin.

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Successful conclusion of Endeavor’s Future Forum 2.0 – A game changer for Malaysia’s startup ecosystem 

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  • Over 3000 business rulers, investors &amp, businesses attended the conference
  • Participants gained insights into M’sia’s business habitat through key discussions

Peter Murray, Head of Financial Services Industry, ASEAN. AWS, Normal Vanhaecke, Group CEO, Cradle Fund Sdn Bhd, Adlin Yusman, Managing Director, Endeavor Malaysia, Jesse Chooi, Scaleup Development, MDEC and Hassan Alsagoff, Regional Head of Loyalty & Marketing ,Grab Malaysia

With Cradle Fund, through the MYStartup initiative, as its patron, along with support from Grab Malaysia, GXBank, Amazon Web Services ( AWS), and Malaysia Digital Economy Corporation ( MDEC ), Endeavor’s Future Forum 2.0 successfully concluded on Tuesday, 13th August 2024, at the Asia School of Business. The occasion maintained a strong participation, with over 300 business leaders, companies, and traders in attendance, matching next week’s numbers.

This consistency, according to Endeavor, demonstrates that the success of the Future Forum last year was not just a case of luck; it was a result of the organization’s continued commitment to bringing in top speakers who have a strong impact on the entrepreneurial community.

This year’s Future Forum 2.0 featured a lineup of speakers, including Endeavor Emeritus Board Member Nazir Razak ( chairman of Ikhlas Capital ), Endeavor Mentors such as Joel Neoh ( co-founder of First Move &amp, Fave ) and Tunku Alizakri Alias ( Former chairman of Penjana Kapital ), Endeavor Entrepreneurs including Aaron Patel ( founder of iHandal ) and Kian Seah ( founder of HHI), as well as Endeavor Pre-ISP candidates such as Nicholas Pinn Yang Lim ( co-founder of Good Foodie Media ), Nadira Yusoff ( co-founder of Kiddocare ), Nurul Syaheedah Jes Izman ( co-founder of Pantas ), and Mark Koh ( co-founder of SUPA ).

The list of speakers continued with Norman Vanhaecke ( group CEO of Cradle ), Fadrizul Hasani ( CTO of GXBank ), Karamjit Singh ( founder of Digital News Asia ), Peter Yong ( founder of Mr. Money TV ), Koichi Saito ( founder of KK Fund ), Sophie Chiu ( principal at AppWorks ), Warren Leow ( CEO of Pixlr Group ), Gerardo Salandra ( CEO of Respond. io ), Rene Menezes ( executive director of Remix Solutions ), Roshan Kanesan ( producer &amp, presenter at BFM), and Fahim Surani ( Solution or Systems architect at Amazon Web Services ).

The attendees, according to Endeavor, gained valuable insights into Malaysia’s business ecosystem, from understanding the Gen AI rebellion to understanding the key factors that entice foreign investors to the local landscape. Additionally, they discussed ways to incorporate ESG into firm plan and learn about the brand-new era of marketing and branding. Importantly, the event’s Legitimate Clinic, in partnership with Zaid Ibrahim &amp, Co ( in association with KPMG Law ), provided personalised legal counsel to companies, reinforcing the agency’s commitment to empowering local companies.

The consistently high attendance for Future Forum 2.0, according to Adlin Yusman, managing director of Endeavor Malaysia, confirms that our technique to developing relevant topics and engaging speakers resonates with the business community. It’s not just about a one-time victory, it’s about continually delivering value and fostering an environment where creativity flourishes”.

He continued,” The company is thrilled by this week’s success and looks forward to returning in 2025 with an even more remarkable Future Forum 3.0.” As Endeavor looks forward, we will continue to support high-impact business owners and foster a vibrant company habitat. The success of Coming Forum 2.0 shows how well on track this goal is, Adlin said.

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MYCentre4IR and Bursa Malaysia launch Global Innovation Challenge to accelerate ESG adoption

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  • Opportunities for pilot projects will be provided for the five most promising thoughts.
  • attempts to discover creative solutions that address issues in the sector.

Partnering with Bursa Malaysia, one of Southeast Asia's largest bourses, and powered by UpLink, The Forum’s open innovation platform, this Innovation Challenge leverages the strengths and networks of these prestigious organisations.

leng The Malaysia (Innov Centre4IR tion ESG Ch Innovation llen Challenge ( e) as bee lau Innovation Challenge ) has been ched, accor d ng to t h launched, according to the Malaysia Centre4IR.

This initiative, in collaboration with Bursa Malaysia, is powered by the World Economic Forum’s ( The Forum ) UpLink platform, which invites startups and entrepreneurs from Malaysia and around the world to submit their cutting-edge digital solutions to enhance the efforts of five Malaysian Public Listed Companies ( PLCs ), namely CJ Century Logistics Holdings Bhd, Globetronics Technology Bhd, Malayan Banking Bhd, REDtone Digital Bhd, and Sunway Innovation Labs ( representing Sunway Group ).

( An expression of interest was made following the five PLCs ‘ interest following an ESG Tech Based Innovation Workshop held in Bursa Malaysia. )

Empowering entrepreneurs, driving shift

This Innovation Challenge seeks to join beautiful thoughts and promising startups with Malaysian PLCs in various sectors such as agriculture, construction, economic services, logistics and production. The issue seeks to find creative solutions that address business issues, which might boost Malaysia’s economy and the environment, and could also boost competition.

Strategic engagement

Partnering with Bursa Malaysia, one of Southeast Asia’s largest bourses, and driven by UpLink, The Forum’s available technology system, this problem leverages the strengths and networks of these renowned organisations.

The association with UpLink will help the problem have a global reach and draw high-quality submissions from all over the world. The Innovation Challenge promotes the development and implementation of systems that advance ESG principles while also providing a significant opportunity for PLCs to investigate business venture capital practices in line with Pillars 2, 4, and 5 of Bursa Malaysia’s Public Listed Companies Transformation Programme. This initiative helps PLCs become more responsible in addition to supporting businesses and entrepreneurs.

Five arches, which include:

  • Creating Purpose and Performance-Driven PLCs,
  • Being Responsible, Socially Accountable and Ethical PLCs,
  • Increasing investor ties and customer management,
  • Being Online Enabled, and,
  • Contributing towards Nation Building

Focus places

The Innovation Challenge places an emphasis on net-zero solutions and operation technology:

CJ Century Logistics Holdings Bhd

  • Data set for shipping fleet management
  • predicted model for conservation planning and information analysis

Globetronics Technology Bhd

  • Performance progress in manufacturing
  • AI-assisted online manufacturing helpers

Malayan Banking Bhd

  • Building environment endurance: Options in climate mitigation and adaptation
  • Waste to wealth: assisting SMEs in cutting back on their ongoing waste costs

REDtone Digital Bhd

  • Making use of the Internet of Things ( IoT ) for smarter farms in Malaysia
  • Unlocking AI’s potential for Malaysian agriculture

Sunway Group is represented by Sunway Innovation Labs.

  • Preventative health and well-being
  • Circular economy

Application and selection process

Applications are now open via UpLink and will close on 31 Aug. A panel of industry experts and representatives from MYCentre4IR, Bursa Malaysia, and the World Economic Forum will evaluate the submissions. On November 7, the Innovation Challenge will culminate with a Demo Day at Bursa Malaysia, where five of the most promising ideas will be given funding opportunities for pilot projects and access to a network of business leaders and investors.

For more information about the Malaysia Centre4IR ESG Innovation Challenge and how to participate, please visit the challenge page here or contact]email&nbsp, protected].

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