Toyota delays US electric car production plans as EV sales slow

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As demand for battery-powered cars worldwide continues to decline, Toyota is pushing back the start date for electric vehicle ( EV ) manufacturing in the US.

The Japanese automaker’s main goal was to begin manufacturing sometime in 2026.

A company spokesman told BBC News that Toyota then anticipates starting its US EV business at an unknown date in 2026.

Some other major vehicle manufacturers, including Volvo and Ford, have lately scaled back their EV programs.

” We’re still focused on our global]battery electric vehicle ] target of 1.5M vehicles by 2026″, said Toyota spokesperson Scott Vazin, adding that in the next two years it plans to introduce” 5 to 7]battery electric vehicles ] in the US market”.

Earlier this year, the firm announced it was investing$ 1.3bn ( £980m ) in its Kentucky factory as part of plans to build a three-row, electric sport utility vehicle ( SUV) there.

Additionally, the business announced plans to construct an additional electronic vehicle at an Indiana grow.

Toyota is expanding its lithium-ion cell production in North Carolina to meet these objectives, and the company anticipates opening a factory there in the spring of 2019.

Toyota’s news came as the global car market struggled as a result of the declining demand for electric vehicles in some of the world’s largest areas.

On Wednesday, Tesla’s monthly figures missed Wall Street anticipation, putting top EV manufacturer at risk of its first-ever decrease in quarterly deliveries.

Last month, Volvo abandoned its target to produce only fully electric cars by 2030, saying it now expected to be selling some hybrid vehicles by that date.

The company’s decision to give up a goal it had only announced three years ago was due to changing market conditions.

In August, Ford announced that it is shaking up its strategy for electric vehicles, scrapping plans for a large, three-row, all-electric SUV and postponing the launch of its next electric pickup truck.

According to Chief Financial Officer John Lawler, the company was changing its programs in response to “pricing and percentage compaction.”

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Masato Kanda: The man behind Japan’s 0bn bid to prop up the yen

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For several years, Masato Kanda almost slept.

” Three hrs a day is an exaggeration”, he laughs as he speaks to the BBC from Tokyo.

If you add them up, I slept for three days straight before I was awakened, so I got a little more.

So why was this 59 year-old bureaucrat’s plan so rewarding?

Until the end of July, he was Japan’s evil finance minister for foreign affairs, the country’s best coin minister, or yen king.

The key to the position was preventing forex market speculators, which may cause unrest in one of the world’s largest economies.

Previously, authorities intervened to diminish the value of the Japanese money. Toyota and Sony manufacturers benefit from a poor yen because it lowers costs for commodities for foreigners.

But when the yen plummeted during Mr Kanda’s time in office it increased the cost of importing essential items like food and fuel, causing a cost of living crisis in a country more used to seeing prices fall rather than rise.

The value of the renminbi against the US dollar decreased by more than 45 % during his three years in the position.

To control the yen’s slide, Mr Kanda unleashed an estimated 25 trillion yen ($ 173bn ) to support the currency, marking Japan’s first such intervention in almost a quarter of a century.

The Ministry of Finance and the Bank of Japan are both very apparent. According to economist Jesper Koll, they act when market volatility is to high, rather than at a certain level of the currency.

Japan then finds itself on the US Treasury’s blacklist of probable money schemers.

But Mr Kanda argues that what he did was no market manipulation.

” Markets should move based on fundamentals but occasionally they fluctuate excessively because of speculation, and they do n’t reflect fundamentals which do n’t change overnight”, he says.

” When it affects ordinary buyers who have to purchase food or gas, that is when we intervened”.

Countries like the US and the UK may raise interest rates to increase the value of their currencies, but Japan’s economy has lacked the ability to raise the cost of borrowing for years.

According to Professor Seijiro Takeshita of the University of Shizuoka, Japan had no other choice but to control the forex markets.

” It’s not the right thing to do, but in my opinion, it’s the only thing they can do,” he said.

The irony is that the yen’s value jumped in recent months without Mr Kanda or his successor lifting a finger after the Bank of Japan surprised the markets with a rate hike, and the country got a new prime minister.

So the$ 170 billion bid to support the yen was a waste of money, exactly?

No, asserts Mr. Kanda, who points out that his interventions actually produced a profit despite pointing out that it was not a target.

He asserts that it is up to me to determine whether his actions eventually worked, but some people claim that our exchange management prevented the excessive amount of speculation.

Businesses or scholars should be the ultimate judges, he adds.

After years of economic slowdown, Mr Kanda also sounds an optimistic note about Japan’s leads.

” We are finally seeing assets and income rising, and we have a chance to go back to a standard market economy”, he says.

A more unexpected legacy for this “humble open servant” is his rise to fame online after Chinese social media users praised his ability to shock economic markets with a number of AI-generated dancing videos.

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Indian cosmology, Industry 4.0 and the coming end of work – Asia Times

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India’s ancient sages believed that a balanced society relies on the contribution of four “varnas”, generic categories representing workers, merchants, protectors, and teachers. When one of the four varnas is neglected or sidelined, society becomes conflicted and fails to reach its full potential.

The varna concept later devolved into a rigid caste system (jāti), used for political oppression, but its original framework remains valuable for understanding the modern world. The varna concept suggests that communism failed because it sidelined the merchants, and that capitalism is failing because it sidelines the workers.

Scholars have drawn parallels between the varna concept and Marxism, equating class struggle with “caste struggle.” They equate workers and merchants in the varna concept with labor and capital in Marxism. However, the four categories of the varna concept offer a more nuanced view of society and have a cosmological basis.

Varna is part of an ancient Vedic prophesy. The four varnas take turns leading society. Each varna stage advances the human condition to the next level until it reaches a new spiritual age. The prophesy is comparable to the Second Coming in Abrahamic traditions. Both offer a vista to a better world to come.

But the true value of the varna system today is that it offers a different lens for looking at the contemporary world with its many apparent contradictions, complexities, and conflicts, including the seemingly intractable conflict between the US and China.

Varna

The concept of varna was first mentioned in the Vedas around 1500 BCE. The ancient sages observed that people naturally gravitate toward specific roles within society. They classified these roles into four generic types or varnas: merchants, workers, protectors, and teachers.

Central to the varna concept is the idea that humanity moves through cycles in which each varna plays a leading role in advancing civilization, from barbarism to enlightenment. Once this cycle is completed, it starts again, reflecting the Vedic view of time as cyclical.

The four varnas cover all social human activity and are interdependent. All four are essential to a functioning society, but they hold distinct worldviews and have different desires, needs, and values.

– Teachers/Spiritual Seekers (Vipra): Enlighten others by valuing the mind, cultivating spiritual and scientific knowledge, and creating laws enforced by warriors.

– Warriors/Protectors (Kshatriya): Driven by competition, they value strength and valor, safeguarding society through order and security.

– Merchants/Entrepreneurs (Vaeshya): Skilled in managing resources, they advance society’s material prosperity.

– Workers (Sudra): Focused on practical labor, empathetic with others. They value security, but given their numbers, they can bring the system down if their needs are not met.

Varnas can overlap in each individual. Most people have traits of two or more varna types. A merchant type can also have a spiritual inclination, and a worker type can also have a merchant impulse. But one of the four varnas typically predominates in each individual.

The malignant caste system that developed in later centuries was the result of politics and human vanity. In the words of modern spiritual teacher Sadhguru, things went wrong “when the goldsmith started to feel superior to the blacksmith.” The caste system transformed the varnas from psychological profiles to lineages.

Modern applications

Despite the varna concept being tainted by centuries of abuse, it has found modern, constructive applications.

Australian scholars Peter Hayward and Joseph Voros developed the Sarkar Game, a role-playing game that is used in corporate training programs. Participants take turns assuming the role of one of the four varnas. This fosters empathy and understanding by stepping into the perspectives of others.

The game, created in collaboration with Professor Sohail Inayatullah, Chair in Futures Studies at UNESCO, helps participants navigate social dynamics and problematic hierarchies. When people adopt different varna roles, they make more informed decisions that address the concerns of all parties.

The Sarkar Game is named after Indian spiritual teacher Prabhat Ranjan Sarkar (1921-1990), founder of the socio-spiritual PROUT movement. PROUT promotes an all-encompassing social program based on the varna cycle, emphasizing physical, educational, cultural, and spiritual well-being.

Professor Inayatullah is one of PROUT’s most prominent proponents.

Varna and futurist Lawrence Taub

Varna is also central to the work of American futurist and macrohistorian Lawrence Taub (1936-2016). Taub made the daring claim that the Varna cycle can be mapped to actual (linear) human history.

Taub based his claim on the specific characteristics of the four varnas: their worldviews, ruling elites, sources of power, etc. He argued that one of the four varnas was predominant in specific cultural regions throughout human history up to the present time.   

In Taub’s model, the first Spiritual Age, Satyayuga I, was the prehistoric, animistic period. This age was global, not confined to specific regions. People believed that animals, plants, rivers, and mountains were imbued with a spiritual essence. Shaman leaders mediated the relationship between humans and nature.

The Spiritual Age was followed by the Warrior Age, the age of heroic conquest. It introduced the horrors of large-scale war but also advanced the human condition. Warrior kings Constantine and Ashoka spread Christian and Buddhist spiritual consciousness around the world.

The subsequent Merchant Age began in Europe in the early 17th century. It was marked by the Dutch Revolt against the Spanish occupiers. The Dutch Republic was ruled by merchants. They opened the world’s first stock exchange and created the Duch East-India Company, the first chartered, globe-spanning multinational trading company.

The current Worker Age began in the late 19th century when the Industrial Revolution gathered steam. Workers formed unions to fight for better working conditions, organizing strikes to press their demands. Solidarity was their most potent weapon and they gradually made progress.

In the 20th century, most industrialized countries introduced free basic education and social welfare programs. Even the US, the bulwark of capitalism, created a social safety net. President Lyndon Johnson’s Great Society introduced Medicare for the elderly and Medicaid for the vulnerable.

Merchant fightback

Transitions between varna stages are marked by struggle. The ongoing shift from the Merchant Age to the Worker Age is no exception. The merchants, who retained an outsized influence on society, used a retrograde ideology, neoliberalism, in an attempt to reverse the gains of the workers.

In the 1980s, US President Ronald Reagan and British Prime Minister Margaret Thatcher embraced neoliberalism. They called for a reduction of the role of government in the economy, deregulation, privatization, free markets, and reducing the so-called welfare state.

Neoliberalism was a partial return to the laissez-faire capitalism of the 19th century. The merchants prioritized profits over people and moved factories to low-income countries. They deindustrialized a large part of the US and alienated millions of workers.  

Moreover, the American economy became increasingly financialized. Everything from real estate and sports franchises to art objects were traded like commodities. Money became an asset to make more money rather than to produce goods or services. The concentration of wealth increased and income disparity returned to levels not seen since the 19th century.

Ironically, billionaire entrepreneur Donald Trump was the first president to seriously challenge the neoliberal power structure. While his supporters were mostly workers, Trump had a merchant worldview. As president, he mostly adhered to the neoliberal agenda of his predecessors but gave neoliberalism a nationalistic twist.

Neoliberalism opened up the world economy and stimulated global trade, but it had a fundamental flaw. Antithetical to government interference in the economy, it prevented the country from setting national goals to deal with a changing world. The problems caused by a lack of planning and foresight became apparent in the first decades of the 21st century.

Instead of developing a long-term vision, the US government simply reacted ad hoc to global challenges. It resorted to sanctions, tariffs, subsidies for vulnerable domestic industries, and the weaponization of the dollar. The latter had the opposite of its intended effect, resulting in a global movement to de-dollarize bilateral trade.

China’s market reforms

The start of the neoliberal era coincided with China’s market reforms under Deng Xiaoping. Deng opened the country to foreign investment and allowed commerce to flourish. Communism under Mao Zedong had sidelined the merchants, but Deng, putting pragmatism over ideology, reintegrated the merchants into Chinese society.

As was the case in Russia, China’s communism movement was a revolt against the merchants, both domestic and foreign (neo) colonialists who had plundered China for a century. Led by the intelligentsia (vipras), the communist revolution was widely supported by the workers and the warriors.

Deng’s reform, which prioritized outcomes over ideology, transformed China into a global economic powerhouse. Using 5, 10, and even 50-year plans, the Chinese economy grew at breathtaking speed. The goal was Xiaokang or the creation of a “moderately prosperous society.”

Deng’s market reforms liberalized the economy, but the Communist Party retained control, in part to prevent the merchants from building a political power base and coopting government policy.

When tech billionaire Jack Ma, founder of e-commerce giant Alibaba, questioned the economic policies of the Chinese government, the government cut him down to size to let him know who is in charge.

Other billionaires got the message. Zhong Shanshan, the billionaire founder of a bottled water company, set up the “Common Prosperity Fund.” Tech giants Tencent, Alibaba, and other big companies made large contributions to the fund or launched similar initiatives in the name of “common prosperity.”

China’s rise was spectacular. The Chinese middle class today is the largest in the world by far. But its rise was predictable. In the 1980s, Japan virtually destroyed the Western consumer electronics industry and the Western automobile industry came close to meeting the same fate, rescued only by import restrictions.

China, ten times larger than Japan, applied a similar formula. Taub calls it teamwork capitalism informed by the worker worldview. He wrote: “Both value society (the State) over the individual. They stress conformity, group-mindedness, linkage, cooperation, a collective attitude, sensitivity to others, and a desire to live securely.”

The end of work

Worker varna qualities will play a key role in the Fourth Industrial, the next stage of technological development. Industry 4.0 combines multiple technologies and the social sciences to integrate Industry 4.0 into daily life. China is leading in most of the technologies that are crucial to the Fourth Industrial Revolution.

Barring unforeseen circumstances, China’s economic and technological influence in the world is likely to increase. For the US to keep up, it needs a plan. The same applies to the rudderless EU, like the US taken over by neoliberals. Without a plan or destination, the ship of state is lost at sea, at the mercy of the force of history.

Taub warns against the West imitating China. The Worker Age is the shortest of the four varna ages and will be superseded by the new Spiritual Age, Satyayuga II. Harbingers of this new era are the growing interest in yoga, meditation, mindfulness and ecology.

Taub argues that several traits cultivated during the merchant era – such as a well-developed ego and individualism – were out of step with the Worker Age, but these merchant traits will align more closely with Satyayuga II than the Confucian-inspired emphasis on teamwork and prioritizing society over the individual.

This may be true but the world must first navigate the Fourth Industrial Revolution. Industry 4.0 will gradually lead to the end of most work and transform society. China leads this transition and has the economies of scale to set global standards. It is bound to play a key role in mediating the transition to Setyayuga II.

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IHH Healthcare snaps up Malaysia’s Island Hospital for 6m | FinanceAsia

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A consortium led by previate equity player Affinity Equity Partners has sold its 100% stake in Malaysia’s Island Hospital to IHH Healthcare (IHH), a Kuala Lumpur-headquartered international healthcare group.

The 100% sale at a value of RM4.2 billion ($966 million) includes Affinity’s 78% stake, with the remainder of the shares belonging to the founder & CEO, Mark Wee, and senior doctors of the hospital.

Founded in 1996, Island Hospital (pictured) is a leading 600-bed healthcare provider in Penang, Malaysia, with 119 specialists across 40 medical and surgical specialties. Island Hospital attracts around one in three inbound foreign patients to Malaysia, according to a statement from Affinity. Medical tourism is one of the fastest growing parts of the Malaysian private healthcare market.

Under Affinity’s ownership, Island Hospital expanded its original 300-bed facility, through the development of the adjoining Peel Wing during the pandemic. Additional land has been acquired with approvals secured for future development, a media announcement said. 

Since Affinity bought the hospital in 2015 for an undisclosed amount, Island Hospital expanded its medical and surgical offerings through recruitment and investments in medical infrastructure, resulting in a tripling of foreign patient volumes. During this period, profitability more than tripled, driven by mofd complex cases, and higher operating efficiency from the doubling of bed capacity, according to the announcement. 

Island Hospital also invested in its core specialties of orthopaedics, gastroenterology and general surgery, and established new centres of excellence in cardiology and cancer.

Rippledot Capital Advisors acted as the sole financial advisor to the Affinity-led consortium on this transaction.

“Island Hospital’s evolution into a leading healthcare institution that positively impacts the community, stakeholders, and serves as a beacon of medical excellence in Malaysia and beyond . . .  I’m confident that Island Hospital will continue to thrive under the IHH platform,” said Tang Kok Yew, founding chairman and managing partner, Affinity Equity Partners, in a statement.

Affinity Equity Partners is one of the largest independent private equity firms in Asia Pacific (Apac), investing in Asia Private Equity since 1998. Affinity has $14 billion of assets and funds under management, and is currently investing out of Fund V, a $6 billion fund. Affinity’s investment focus includes Korea, Australia, New Zealand, Southeast Asia, and Greater China. 

For more FinanceAsia M&A deals click here. 


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Indonesian miner BUMA secures 1 trillion Rupiah bond issuance | FinanceAsia

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Mining services firm Bukit Makmur Mandiri Utama (BUMA), the principal subsidiary of Indonesia Stock Exchange-listed Delta Dunia Makmur, has completed the successful issuance of the BUMA II 2024 Rupiah bonds (BUMA II 2024 bonds) with a total value of Rp1 trillion ($65.7 million).

The bonds were oversubscribed by 1.4 times and were issued in three series: Series A with a nominal value of Rp251 billion at a fixed interest rate of 7.25% per annum, maturing in 370 calendar days; Series B with a nominal value of Rp332.71 billion at a fixed interest rate of 9.25% per annum, maturing in three years; Series C with a nominal value of Rp416.26 billion at a fixed interest rate of 9.75% per annum, maturing in five years.

A “wide range” of Indonesian pension funds, mutual funds, insurance companies, asset managers, and banks invested in the offering, a BUMA spokesperson told FinanceAsia.   

Indra Kanoena, president director of BUMA, commented, “The strong market response to BUMA II 2024 bond offering reinforces confidence in BUMA’s strategic direction, robust cash flow management, and credit profile. This bonds issuance allows us to further diversify and solidify our financial foundation, driving growth in our business while strengthening our position as a leading mining service provider and advancing toward becoming a diversified global mining company.”

The proceeds will be used to manage its debt maturity profile and fuel future growth. BUMA has operations in Indonesia and Australia, and in June this year it bought the Atlantic Carbon Group in Pennsylvania for around $122 million, and subsequently BUMA became the leading producer of anthracite coal in the US. 

42.29% of the proceeds, amounting to Rp422.9 billion, is being allocated to repay debt under BUMA I 2023 Series A, which matures on January 8, 2025. Additionally, 28.86% of the funds will be used for capital expenditure to purchase heavy equipment, enhancing BUMA’s production capacity and operational efficiency, the media release said. 

The remaining 28.85% will support BUMA’s ongoing operational activities, enhancing the company’s ability to manage cash flows and control costs effectively.

The issuance has further diversified the company’s financing strategy, which consists of both USD and IDR bonds, conventional and Shariah bank loans, and leasing financing schemes. The strategy strengthens the company’s financial resilience, enhances its ability to navigate market volatility, broadens its financial base, placing the company in a better position for future growth, according to the media release.

The BUMA II 2024 bonds received an A+ rating from Pemeringkat Efek Indonesia (Pefindo) and Fitch Ratings. BNI Sekuritas and Trimegah Sekuritas Indonesiawere the joint lead underwriters for the bonds’ issuance.

Delta Dunia Group also owns two new subsidiaries: Bukit Teknologi Digital (BTech), offering mining technology solutions, and BISA Ruang Nuswantara (BIRU), a social entity dedicated to education, vocational schools, and fostering a circular economy. In July 2024, the group established Katalis Investama Mandiri to support its long-term strategy in environmental, social and governance (ESG).


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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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TM Global extends collaboration with Radian Arc to strengthen cloud gaming offerings

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  • Attempts to strengthen M’sia’s sky games, grow to the Middle East &amp, Africa
  • Collaboration is in line with TM’s goal of becoming a modern superstar by 2030.

TM and Radian Arc signed an agreement for Cloud Gaming services witnessed by Fahmi Fadzil, minister of Communications, Malaysia (Middle).

The domestic and international wholesale division of Telekom Malaysia ( TM) has announced a two-year extension of its cooperation with Radian Arc, a provider of global cloud infrastructure, through TM Global. This ongoing relationship will concentrate on expanding TM’s global sky gaming services.

TM Global and Radian Arc may strengthen Malaysia’s sky game landscape while extending services to areas like the Middle East and Africa following their successful 2022 cooperation. The prolonged deal leverages Radian Arc’s GPU Edge systems and the low-latency SHAKS Gamepad joystick developed by AKSys Co., ensuring a smooth gaming experience and boosting TM Global’s ability to offer high-quality, real-time applications.

The drafting took place in Seoul, attended by Malaysia’s Communications Minister Fahmi Fadzil. TM Global’s Executive Vice President, Khairul Liza Ibrahim, signed on behalf of TM, while Radian Arc was represented by CEO David Cook.

Khairul stated,” This engagement with Radian Arc reinforces our responsibility to delivering cutting-edge options for digital change. The diversity of GPU technology enables us to meet the changing demands of our clients. We are looking forward to expanding our partnership with Radian Arc, which will improve both our existing companies and open up new markets.

The partnership supports TM Global’s aim to explore innovative solutions such as Bandwidth-on-Demand and GPU-based options, enabling high-performance programs like AI inferencing, Big Language Model education, and Desktop-as-a-Service. Customers will have access to flexible, cloud-based resources through these offerings to advance digital innovation in their journey through digital transformation.

David Cook, CEO of Radian Arc, said,” We are delighted to expand our relationship with Telekom Malaysia, paving the way for companies like GPU-as-a-Service and BoD. Collectively, we may increase TM’s offerings and develop into new areas, empowering businesses with the technologies they need to thrive”.

This partnership is in line with TM’s strategic goal of becoming a Digital Powerhouse by 2030, promoting online conversion across all industries, and positioning Malaysia as a key electronic gateway in Southeast Asia.

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