Malaysia’s net zero transition: expediting ESG | FinanceAsia

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The Joint Committee on Climate Change ( JC3 ) of Malaysia met last month to discuss working together to improve the financial sector’s ability to develop climate resilience. & nbsp,

According to a spokesperson for Bank Negara Malaysia( BNM ),” sustainable assets are gaining momentum in Malaysia with key investment styles built around the need for accelerating sectoral transition and climate resilience, such as energy transition, circular economy, food security, and freedom change.”

The JC3 board was established in September 2019 to ensure a cogent approach to ESG initiatives, with its founding serving as” great testimony” to how proponents of Malaysia’s capital markets intend to work closely to improve sustainability practices in Malaysia, according to Angelia Chin – Sharpe, CEO of BNP Paribas Asset Management, which operates in Southeast Asia.

Its members include representatives of the market’s central bank, BNM, capital markets regulator, Securities Commission Malaysia ( SC ), stock exchange, Bursa Malaysia, and 21 other financial industry players, including Chin-Shawni at BNP AM, insurance companies Allianz, Swiss Re and Zurich, as well as banks like RHB Islamic and CIMB.

The committee outlined five initiatives at the meeting that” emphasise the crucial part of the banking sector in enabling a lasting plan” with the goal of expediting the economy’s low-carbon practices. A pilot project to switch industrial parks and their operational infrastructure to low-carbon practices was one of these, along with three data-related initiatives and a RM1 billion($ 0.210 million ) guarantee to provide funding to smaller market players to support their ESG agendas. & nbsp,

The BNM spokesperson stated to FA that one of the goals of” Ekonomi Madani” is to encourage Malaysia’s green growth in the direction of climate resilience. This goal aims to put Malaysia on a strong development path by realizing and addressing key national issues.

There are numerous opportunities for industry players, including international investors, to achieve the National Energy Transition Roadmap ( NETR ) targets set for 2050, she said.

Energy efficiency( EE ), renewable energy( RE ), hydrogen, bioenergy, and green mobility and carbon capture, utilisation and storage( CCUS ) are the six energy transition levers that Malaysia’s NETR identifies as its ten flagship projects. These are anticipated to catalyze and quicken the market’s energy transition, reduce greenhouse gas ( GHG ) emissions by at least 10 metric tons of carbon dioxide equivalent ( MtCO2eq ) annually, create 23, 000 high-impact job opportunities, and improve corporate ecosystem growth opportunities with benefits to society.

According to the BNM touch, their powerful supply necessitates investments in infrastructure, engineering, and human capital totaling between RM1.2 trillion and Rs1.3 trillion up to 2050. In addition to & nbsp,

While Malaysia’s administrative society is capable of reviewing such an option and is aware of the significance of incorporating ESG into purchase technique,” there is still a need to teach” smaller scale investors on the opportunities and risks associated with sustainability strategies, according to Chin-Sharpe, BNP Paribas AM.

Having said that, she added,” Most banks in Malaysia are committed to playing a more active role to align and help their clients understand the[ relevant ] Malaysian taxonomies.”

Purchase and regulation

The five new initiatives have been included in the government’s budget for 2024 and” complement other policies such as the NETR, the New Industrial Master Plan ( NIMP ) 2030 and the Mid-Term Review of the 12th Malaysia Plan ( MTR – 12MP ,” according to YB Nik Nazmi Nk Ahmad, minister of Natural Resources, Environment, and Climate Change.

All governing events, including JC3 users, Malaysia’s Corporate Guarantee Corporation, and pertinent ministries, are committed to putting the tasks into action, the BNM representative confirmed with FA.

The regulatory environment in Malaysia keeps up with the country’s continued energy transition and the funding needed to make it happen. To obtain conservation and environment goals, the money market should be prepared to help finance raising and investments. Since 2011, when Sustainable and Responsible Investment ( SRI ) has been included as a crucial growth strategy in the Capital Market Masterplan CMP2, the SC has paved the way for sustainability, according to Dato ‘ Seri Dr. Awang Adek Hussin, its chairman.

A Climate Chance and Principle-based Taxonomy was published by BNM in 2021. In December 2022, SC unveiled a Principles-Based SRI Taxony for the Malaysian Capital Market. This year, in June of this year. SC also established the International Sustainability Standards Board’s ( ISSB ). & nbsp,

Meanwhile, the BNM spokesperson emphasized last month’s Energy Efficiency and Conservation legislation as having the potential to significantly lower energy use by 2050 — by 2, 017 million gigajoules, or RM97 billion in savings— and to” create new jobs in energy management and auditing ,” she said.

According to Adrian Wong, mind of jobs and director at the Singapore-based law firm Prolegis, which has a formal legal ally with Herbert Smith Freehills( HSF ),” investment has increased in Malaysia in part because the regulatory environment has done more to promote appetite in renewables.”

Large-scale solar auctions in Malaysia’s peninsular and projects along the Sarawak Corridor of Renewable Energy ( Score) are two of the renewable infrastructure projects his team is helping clients with.

The transport industry is anticipated to play a significant role in the demand for renewable energy, with electric vehicle ( EV ) usage expected to reach 80 % of the car market in 2050.

However, he informed FA that the greatest possibility is present in projects involving solar, water, and biofuel. In 2040, it is anticipated that all three sources will increase and account for roughly 17 % of Malaysia’s total energy mix.

a files travel

Data and the potential of emerging technologies to support Malaysia’s conservation plan are the three activities that were announced at the event.

The first builds on the accomplishments of JC3’s Greening Value Chain ( GVC ) pilot program, which began in 2022 and has so far assisted 80 small and medium enterprises( SMEs ) in tracking and reporting greenhouse gas ( GHG ) emissions across the length of their supply chains. In order to provide public listed companies( PLCs ) capacity-building support, reporting tools, and additional financing facilities, which the BNM spokesperson said could be accessed” at competitive rates via the Low Carbon Transition Facility( LCTF ), the updated plan connects Bursa Malaysia’s sustainability data platform with the GVC program.

Access to an” ESG jump-start portal,” through which Malay businesses can obtain useful information on ESG-related capacity-building programs, certification, as well as financial and opportunity methods, and the introduction of a Green AgriTech program to promote the adoption of green technology and sustainable agriculture techniques among local producers, are additional data related initiatives.

According to the BNM director,” Green AgriTech offers substantial potential for Malaysia’s agricultural field by opening up new possibilities and addressing vital difficulties.”

Wong concurred that emerging technology has the potential to modernize and alter Malaysia’s ESG strategy, particularly in the agricultural industry. From ensuring a sustainable supply of food sources to raising general health and environmental criteria, he mentioned the potential for positive effects.

To ensure that farmers may conduct their financial transactions online, he suggested the Malaysia Digital Economy Corporation’s project, which linked small farmers to online marketplaces offering bright warehouse facilities, supply, and farming solutions.

Through a thorough approach to alternative solutions, this catalytic pilot program encourages farmers to use technologies and follow greener and ecological practices. Participating farmers can obtain grants and LCTF to purchase natural systems, the BNM spokesperson added.

” Technology use may improve produce stability and quality while also assisting in the resolution of food safety issues.”

maintaining speed

The efforts to enlist input from all parts of Malaysia’s market, both the public sector and the private sector, is at the core of the country as it transitions. The BNM spokesperson informed FA that” efforts to level public-private partnerships are even continuing, with fresh initiatives.”

She stated that the GVC program is an excellent illustration of a cutting-edge blended financing initiative in Malaysia that supports the country’s move toward enlightenment.

BNM continues to support private institutions’ participation in the government’s loan offerings, the call emphasized,” BNM also supports such attempts by facilitating the release of Government of Malaysia Sustainable Sukuk for registration by both domestic and foreign investors.”

According to SC chairman Hussin at the conference, the SRI-linked Sukuk Framework was introduced last year, giving the Indonesian capital market access to a full range of frameworks to assist businesses in financing transitional projects as well as alternative, social, and sustainability initiatives.

Fitch recently released an ESG document that showed a steadfast global appetite for the sukuk. The data shows that by the end of 3Q23, ESG sukuk issuance had increased by 66 % year over year( YoY ) to reach$ 33.3 billion worldwide.

Due to built-in sharia filters, there is a cross between Islamic funding and ESG principles, according to the ratings agent’s research. & nbsp,

Over the moderate name,” Fitch Ratings anticipates more rise.” According to the review, the company’s growth is largely driven by governments’ sustainability initiatives and issuers’ funding diversification goals toward both sharia and ESG-sensitive investors.

” ESG sukuk could receive an awareness and issuance boost ,” said Bashar Al-Natoor, Fitch’s global head of Islamic Finance, with the United Arab Emirates( UAE) hosting the Conference of Parties( COP ) 28 this year.

It is motivating to see the Indonesian government adopting a” full of state” approach to addressing the impact of climate change on economic conservation, Hussin said at the conference’s conclusion. The nation’s interests and sustainable development methods are outlined in roadmaps and masterplans that have been made available by the relevant ministries.

I want to say it again:” Our planet is facing an unprecedented problem, one that necessitates immediate and coordinated effort from all countries, sectors, and individuals.”

 

Haymarket Media Limited All right are held back.

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Saraburi gets green model city boost

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Interior minister says province’s large cement industry supports drive to cut emissions

PUBLISHED : 1 Nov 2023 at 17:46

Saraburi gets green model city boost
Dressed in Thai traditional outfits, Miss Thailand World 2019 contestants take part in a wian thian walk at a temple in Saraburi in 2019. (Photo: Varuth Hirunyatheb)

Saraburi will be promoted as the country’s first low-carbon, climate-friendly model city under a new public-private partnership (PPP), according to Interior Minister Anutin Charnvirakul.

The project will be a showcase for greenhouse gas emission reductions in line with the country’s pledge to achieve carbon neutrality by 2050 and net zero greenhouse gas emissions by 2065, Mr Anutin said on Wednesday.

Saraburi is a major cement production centre, so creating a low-carbon city would be challenging, he said, adding that if the project succeeds, it could be emulated in other provinces.

The Thai Cement Manufacturers Association (TCMA), which initiated the Saraburi sandbox, will work with the province and state agencies.

“I hope to see Saraburi become one of the leading green economic provinces in the country,” said Mr Anutin.

“The most important thing is the cooperation of all cement manufacturers because their businesses cause environmental issues. We need the governor to push the project and help eliminate any obstacles.”

The project also needs support from civil society groups and local residents, he said, adding that developing more environmentally friendly industry would also help boost the local economy.

The Office of the National Higher Education Science, Research and Innovation Policy Council (NXPO) will act as the coordinator for the development of a Climate Technology Centre under the UN Framework Convention on Climate Change, said NXPO president Kitipong Promwong.

With financial support, technology and international cooperation, Thailand will be able to lower greenhouse gas emissions to below its nationally determined contribution by 40% by 2030, he said.

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A model for sustainable agriculture

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Mitr Phol Group, under the leadership of Chairman Buntoeng Vongkusolkit, stands out as a beacon of ethical business practices in the sugarcane-processing industry with its steadfast commitment to sustainability and corporate social responsibility.

Mr Buntoeng has meticulously woven these principles into the very fabric of the company, shaping Mitr Phol’s strategy to not only be a world-class sugar producer, green energy and bio-based product maker, such as fertiliser, animal feed, biomaterials, wood substitute materials, but also a conscientious steward of the environment and the communities it serves.

This unwavering dedication to sustainable practices has not only defined Mitr Phol’s identity but has also set a new standard for responsible corporate conduct in Thailand and beyond.

With subsidiaries operating in Thailand, China, Australia, Laos, and Indonesia, the company has a strong regional presence.

Buntoeng Vongkusolkit, Chairman of Mitr Phol Group, says his company pays utmost attention to sustainability and social responsibility. It has been one of its business strategies from the start, along with environmental issues.

For over 66 years, Mitr Phol has produced quality sugar for households across Thailand. Today, the company wants to reaffirm its commitment to environmental sustainability and improving cane growers’ livelihoods, said Mr Buntoeng.

“Sustainability and social responsibility have always been embedded in our business strategy from the start,” he said.

In Thai, the word mitr means “friend”, while phol means “result”. As such, the company’s name is a reference to collaboration among partners which have gone through ups and downs together, he explained, before pointing out Mitr Phol’s motto: “Grow Together.”

As the third generation of Mitr Phol Group, Mr Buntoeng said he continues to work closely with the cane growers Mitr Phol works with.

Speaking to the Bangkok Post, he said his father taught him to treat cane growers with fair operating practices when weighing their harvest because it takes a massive effort to grow sugarcane.

The advice resonated deeply with Mr Buntoeng, inspiring him to take care of his company’s stakeholders. It is necessary to teach cane growers the necessary skills and knowledge to ensure that they can increase productivity, he said.

To ensure the company remains in the green as it gives back to the cane growers, Mitr Phol practices a smart farming model, “Mitr Phol Modernfarm”, which ensures optimum yield and quality while minimising time and production costs, as well as being eco-friendly.

The model includes knowledge building among cane growers of sustainable sugarcane farming. It also encourages the use of machinery and digitalised control, and modern irrigation techniques, he said.

“Cane growers are encouraged to apply minimum tillage to their land, making designated paths to ensure minimal damage to crops from traffic, plant legumes in between harvests and use the sugarcane leaves as fertiliser. These practices result in a reduction of fossil fuel use in machinery, reducing soil compaction and burning of sugarcane, thus creating a greener way of sustainable development in agriculture,” he said.

The leaves, he added, can also be used as fuel for its factories, which use biomass plants to generate power.

Apart from that, Mitr Phol opened the Mitr Phol Modern Farm Academy in 2019 to educate modern farming practices.

Mr Buntoeng said the company is currently working with Kasetsart University on a subject called “Comprehensive Modern Sugarcane Manufacturing”, which second-year bachelor’s degree students can take to get study credits.

“We need to teach the younger generation modern farming and, at the same time, cost control and effective management,” he added.

Mitr Phol is certified by Bonsucro, a leading global sustainability platform which sets the standard for sustainable sugarcane production.

To be certified, Mitr Phol had to prove that its production chain is free of child labour and illegal migrant workers, that its workers are paid fair wages in accordance with the law, that none of its sugarcane plantations encroach on conservation areas, and that it uses minimal amounts of pesticide and herbicide to produce its products, including green cane harvesting.

A new, greener way of smart farming by the use of digitalisation and effective management brings about solutions to the ageing society, climate change, as well as economic value creations from sugarcane.

“The sugarcane industry is recognised as a circular and zero-waste model. For example, the use of water resources in the production process is mainly obtained through condensation from cane, which possesses 60% of water in itself approximately, he said.

“The water from this qualified condensation is reused in our production process and circulated to sugarcane farming during drought periods,” he added.

He said Mitr Phol is committed to the research and development of sugarcane as a biofuel, which has made the company the first Thai producer of sustainable ethanol as certified by Bonsucro.

In addition, Mitr Phol is committed to following the UN Sustainable Development Goals. The company is complying with 12 out of 17 SDG goals, he said.

According to S&P Global’s evaluation of company sustainability. Mitr Phol has been recognised, for the fifth year in a row, as the world’s second-leading sustainability-conscious organisation in the food industry.

The company has participated in the assessment and noticeably improved, soaring from the 17th rank in the first year to the 2nd spot recently.

During the Covid-19 pandemic, the company donated medical equipment to help local communities.

The company has also provided more than 200 scholarships to cane growers’ children in areas where the company has a production base.

He said the company aims to be carbon neutral by 2030 and have net zero emissions by 2050.

Sustainability in agriculture is the start of sustainable development for people, profit and the planet as it serves people better and offers a greener way of living and food, green energy from bio-mass power, and opportunity for economic value creation from bio-based industries.

“We can’t live without people around us and the environment. Seeing everyone grow together is our happiness. This is the true meaning of ‘sustainabi­lity’ ”, he ended.

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HSBC Thailand taps global connectivity

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While maintaining a long-term commitment to growing the company’s business in the Thai business, HSBC Thailand is utilizing its global communication and investment experience to assist both Thai and international customers in growing their businesses globally.

According to Mr. Gamba, the lender may keep assisting its customers in expanding and diversifying their onshore market investments.

  • Best Director in Banking International
  • Giorgio Gamba, HSBC Thailand’s Chief Executive Officer

The institution seeks to become Thailand’s top global bank for outbound business by assisting the growth of sizable Thai corporations both locally and internationally.

According to Chief Executive Officer Giorgio Gamba of HSBC Thailand,” Globalization is the company’s power in connecting our clients to new business prospects within Asean and past.”

In order to better serve the nation’s high-net-worth people and their people, HSBC Thailand has been constantly improving its functions there.

The bank may keep assisting its clients in expanding and diversifying their onshore market investments.

After introducing personal bank to the nation in February 2021, HSBC Thailand launched its upstream asset management division in September 2022. According to him, the lender has been successful in expanding the business segment.

Thailand is one of many nations and industries in the region where foreign direct investment ( FDI ) has increased. One-third of Thailand’s outbound FDI comes from Japan.

As many of China’s businesses are moving their manufacturing facilities to Thailand, China, which ranked second in terms of FDI next year, will play a bigger and bigger part in funding.

Thailand has attracted FDI in a number of sectors, but particularly in manufacturing, Vehicle production, kindness, care, and agriculture.

Additionally, HSBC Thailand wants to maintain its position as the industry leader for northbound foreign trade.

Based on the potential for growth in both the Thai and regional markets, the institution attained its position of leadership.

Asean, however, continues to be the fastest-growing trade bloc in the world, providing both businesses and investors with considerable wealth and trade opportunities.

We have ambitious development plans here because Thailand is a nation where we see great potential to grow and grow our business, according to Mr. Gamba.

With revenue increasing 28 % and profit increasing 55 % year over year, HSBC Thailand announced an impressive performance in 2022, setting a record high for the same period. To achieve these extraordinary rates of growth, it is essential to build strong relationships with customers, workers, and the larger group.

Additionally, the bank will keep funding its current operations, which include general bank, market and securities services, and private banking by investing in people, online infrastructure, among other things.

According to him, HSBC Thailand has finished a capital increase in response to the rise of local businesses.

The state method of HSBC was created concurrently with Thailand’s regional development strategy.

Global connection is the bank’s main business strategy for assisting business clients in investing and growing globally thanks to its extensive network and level of investment expertise.

The lender focuses on assisting clients in growing their businesses in the major financial hubs of the world, particularly in China, the US, Europe, Asean, and the Middle East.

In 42 states, the lender assists Thai users in expanding their businesses.

According to Mr. Gamba, HSBC Thailand has outlined a bold plan to prioritize sustainable funding and investment in order to support the transition to an net-zero world economy.

Thai clients are also encouraged by the bank to plan their portfolios and raise money for green investments.

After achieving$ 21 billion in 2022, the banks pledged to offer$ 1 trillion in green investments and financing by 2030.

2023 Bangkok Post CEO

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Celebrating visionaries and inspirational leaders

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Celebrating visionaries and inspirational leaders

Once again, the halls of the Bangkok Post resonate with the thrill of honouring brilliance and innovation within the corporate sphere. In our steadfast commitment to recognising exceptional leadership, we take immense pride in presenting the “Bangkok Post CEO of the Year 2023” awards.

Building upon our tradition of acknowledging trailblazers who have reshaped industries and ignited change, this year’s awards pay homage and extend applause to chief executive officers and top leaders for their unwavering guidance, transforming ordinary companies into beacons of success, progress and inspiration.

The awards encompass a diverse array of categories, each representing a facet of the dynamic business world. From visionary strategies to transformative leadership, these accolades spotlight not only corporate triumphs but also the remarkable contributions these leaders have made to society and the economy at large.

As we venture into a new era with 14 distinctive awards, each winner’s captivating story will be told, illuminating why they have captured the public’s imagination and admiration. Their narratives, achievements, innovative strategies and contributions that propel their organisations into the future will be spotlighted in the days ahead.

To mark the “CEO of the Year 2023” announcement, the Bangkok Post is from today launching a series about awarded CEOs on every working day, showcasing their achievements, business strategies, and inspirational visions both in the print edition and on our website.

PTTEP LOOKS TO A MORE SUSTAINABLE FUTURE

CEO Montri Rawanchaikul understands the economic necessity for secure sources of energy, but vows that the firm will always keep the environment in mind

Mr Montri has been a driving force at PTTEP, leading initiatives to reduce carbon dioxide emissions and pave the way for sustainable approaches.

Chief Executive Officer Montri Rawanchaikul believes one key mission for PTT Exploration and Production Plc (PTTEP) is to devise ways to reduce the impact of its businesses on the environment, particularly by reducing the company’s carbon dioxide emissions.

Mr Montri said he is aware the company needs to continue to secure enough fuel to support the Thai economy, but this effort should not ignore the cost to the environment.

As someone who sets policies and strategic plans for PTTEP, Mr Montri has helped the company promote projects to cut carbon dioxide emissions, seek new alternative energies and pave the way to operate in a more sustainable manner.

One such project is developing Thailand’s first carbon capture and storage (CCS) facility at the Arthit gas field in the Gulf of Thailand, one of several efforts aimed at helping the government curb carbon dioxide emissions in the country.

The CCS project fits with the company’s campaign against global warming and the environmental, social and corporate governance (ESG) principles, which promote business development and taking better care of the environment and society, said Mr Montri.

ESG refers to a set of standards that are said to be able to lead to business sustainability.

“We expect the CCS project to store up to 1 million tonnes of carbon dioxide during gas production at Arthit within 2027,” said Mr Montri.

The company has already completed the preliminary front-end engineering and design phase of the project. It expects the CCS facility to start operating by 2027.

The Gulf of Thailand offers great potential to store carbon dioxide, amounting to roughly 40 million tonnes a year, because, geographically, the terrain is a sink area, which is suitable for the storage of carbon dioxide.

PTTEP is also cooperating with five companies from France and South Korea to produce green hydrogen in Oman, said Mr Montri.

Green hydrogen, which is used to fuel power generation and manufacturing processes, is produced by using electricity made from renewable energy to split water molecules into oxygen and hydrogen.

This project shows the company is not solely focused on the exploration and production of petroleum, as it is also seeking new opportunities to develop future energy.

Under a contract made with Hydrom Oman SPC, which operates under the government of Oman, PTTEP and its partners were awarded a 47-year concession to produce green hydrogen at Block Z1-02 in Dugm in eastern Oman.

The production facility, to be run by 5 gigawatts of solar and wind power, is expected to open in 2030, with an estimated 220,000 tonnes of hydrogen produced annually.

These two projects indicate PTTEP is focusing more on the environmental aspects of its businesses, which will, in turn, partly help the government to run a campaign to combat global warming successfully.

At the 26th UN Climate Change Conference held in Glasgow in 2021, Thailand announced it is determined to achieve carbon neutrality, a balance between carbon dioxide emissions and absorption, by 2050, along with a net-zero target, a balance between greenhouse gas emissions and absorption, by 2065.

PTTEP also has its own plan under — EP Net-Zero 2050 — concept, which aims to achieve a net-zero target by 2050.

“The CCS and green hydrogen projects will support PTTEP’s environmental efforts, driving Thailand and the world at large towards a low-carbon society,” said Mr Montri.

Greater care for the environment will be a crucial part of PTTEP’s work in the future.

“The company will go on expanding its investment in natural gas production, but at the same time, it will also incorporate the greenhouse gas emission issue in the decision-making process of new gas projects,” said Mr Montri.

National energy security is important to fuel the growth of the country’s economy, but its development must be sustainable, which will be achieved through better environmental management, he said.

MTL aims to go from strength to strength

Chief executive Sara Lamsam’s vision is for the insurer to become the country’s most trusted life and health partner

Mr Sara believes positive factors will support the growth of the country’s life insurance industry.

Sara Lamsam is the driving force behind the success of Muang Thai Life Assurance (MTL), one of Thailand’s most prominent life insurance companies.

Backed by 30 years of experience within the Lamsam family in the life insurance industry, the 54-year-old president and chief executive officer has played an integral role in outlining and implementing business strategies that have driven MTL’s steady growth for decades.

A key strategy that led to the company’s outstanding performance and its ability to win accolades has been MTL’s provision of a range of innovative products and services.

MTL this year announced its goal of becoming a life insurer that stands out in terms of its product offerings via online platforms to reach various groups of customers and maintain a leadership position in the country’s life insurance industry.

Consumers can now access MTL’s products via both traditional and new distribution channels. The company established the Fuchsia innovation centre under a “think out of the box” concept to strengthen innovations in relation to its products, services, and management processes. The centre is an example of MTL’s collaborations in the form of business alliances to develop products that serve different groups of customers, particularly those requiring a unique product.

MTL Click, an application developed to allow customers to access all of the company’s services in one location, received the Business+ Product Innovation Award 2023 in May after over 800,000 individuals downloaded the app.

Two months earlier, the insurer launched MTL Fit, an app to help make people’s healthcare hassle-free. It offers dynamic pricing under an “MTL Fit Reward” feature for discounts of up to 15% on insurance premiums.

Last month, the company joined hands with Line BK to offer an innovative life insurance product for lower-income consumers and freelancers. These groups can easily access information and pay a small amount for life insurance protection via Line Pay.

Mr Sara said offering products and services that are easy to understand and equipped with innovation for the convenience and accessibility of customers enables MTL to meet the needs of every kind of lifestyle at different stages of life. That, in turn, enables MTL to be connected with more targeted customers.

Such a strategy helps the company expand its customer base while core products such as health coverage, critical illness coverage, unit linked-insurance, and pension insurance continue to expand well, supporting MTL’s ability to grow continuously and stand out in the life insurance sector.

Mr Sara, early this year, announced his vision for MTL to become the country’s most trusted life and health partner and become a market leader as the “health provider” of innovation in terms of health insurance coverage and wealth management under the concept of “MTL Next to You”.

He emphasised the concept of life insurance products that meet the needs of consumers through an “outside in” perspective. Using this strategy, the company offers services with new innovations through both digital and non-digital systems to meet the needs of customers who prefer either self-service or service with a human touch.

“The life insurance business today has changed the way of thinking as companies cannot only rely on an ‘inside out’ dimension in offering insurance coverage,” said Mr Sara.

“Nowadays, the world of life insurance is about personalised or ‘outside in’ to serve customers. Finding products that meet customer needs is very important, so big data and innovation is a key success tool for today.”

Using information systems to develop insurance plans via online and offline channels is a strategy that keeps customers satisfied, making MTL successful and its operating results grow even in times of crisis, he said.

The life insurance industry overall continued to grow in this year’s first half, with total insurance premiums reaching 300 billion baht, up 3.78% compared to the corresponding period last year. For the entire year, premiums are projected to grow 0-2% year-on-year to 613 billion to 624 billion baht.

In the first five months, MTL recorded higher growth than the overall market, with insurance premiums surging 14.4% year-on-year to 29.9 billion baht. Of the total, new insurance premiums accounted for 10.5 billion baht, up 13.8% year-on-year, and insurance renewal premiums soared 14.8% to 19.4 billion baht.

In his capacity as president of the Thai Life Assurance Association, Mr Sara believes that positive factors will support the growth of the country’s life insurance industry as people become more aware of the importance of life insurance and additional health or critical illness insurance policies. The trend of increasing medical expenses and uncertainty regarding the spread of emerging diseases such as Covid-19 have driven the growth of the insurance industry so far this year.

Life insurance policies, relative to the size of the Thai population, average 38%, while the value of the life insurance industry contributes roughly 3.8% to GDP at present. In some countries, life insurance companies can reach a larger number of people and can contribute up to 15% to GDP.

The life insurance business in Thailand still has plenty of room to grow, as many people are yet to be covered by insurance products.

Moreover, 95% of the funds in the life insurance system are invested in debt instruments, government bonds, and stocks. This suggests that the insurance business is connected to the country’s ecosystem.

HSBC Thailand taps global connectivity

The bank will continue to support its clients in growing and diversifying their investments in offshore markets, said Mr Gamba.

HSBC Thailand is leveraging its global connectivity and investment expertise to help both Thai and international clients grow their businesses worldwide, while maintaining a long-term commitment to expanding the bank’s business in the Thai market.

The bank aims to establish itself as the leading international bank in Thailand for outbound business, supporting the expansion of large Thai corporations regionally and globally.

“Globalisation is the bank’s superpower in connecting our clients to new business opportunities within Asean and beyond,” said HSBC Thailand’s Chief Executive Officer Giorgio Gamba.

In the wealth space, HSBC Thailand has been actively enhancing its capabilities in Thailand to better serve the country’s high-net-worth individuals and their families.

The bank will continue to support its clients in growing and diversifying their investments in offshore markets.

HSBC Thailand launched its onshore asset management business in September 2022 after introducing private banking business to the country in February 2021, and the bank has been able to grow the business segment satisfactorily, he said.

Foreign direct investment (FDI) has been growing in various countries and industries in the region, including Thailand. Japan accounts for one-third of Thailand’s inbound FDI.

China ranked second in terms of FDI last year and will play an increasingly important role in investment as many of that country’s companies are relocating their manufacturing bases to Thailand.

Thailand has attracted FDI in several industries, but especially agriculture, hospitality, healthcare, and manufacturing, particularly EV production and the automotive-related supply chain.

In addition, HSBC Thailand aims to continue to be the leader when it comes to inbound international business in the Thai market.

The bank earned its leadership position based on the growth potential of both the Thai and regional economies.

Meanwhile, Asean continues to be the world’s fastest-growing trade bloc, offering significant wealth and trade opportunities for businesses and investors alike.

“Thailand is a country where we see tremendous potential to grow and expand our business, so we have ambitious growth plans here,” Mr Gamba said.

HSBC Thailand announced an impressive performance in 2022, with revenue growing 28% and profit growing 55% year-on-year, representing a record high over a 10-year period. Strong relationships with customers, employees and the wider community are key to achieving these remarkable rates of growth.

Moreover, the bank will continue to invest in people, digital infrastructure as well as other resources to bolster its existing operations, which span wholesale banking, market and securities services, and private banking.

In response to local business expansion, HSBC Thailand has completed a capital increase, in line with the nation’s economic growth, he said.

HSBC’s country strategy was developed in parallel with Thailand’s national development plan.

With global networks and a high level of investment expertise, international connectivity is the bank’s key business strategy in supporting corporate clients investing and expanding worldwide.

The bank focuses on helping customers expand businesses in the world’s key economic corridors, where HSBC has an active presence, notably in China, the US, Europe, Asean, and the Middle East.

The bank supports Thai clients in growing their businesses in 42 countries.

HSBC Thailand has set out an ambitious plan to prioritise sustainable financing and investment that supports the transition to a net zero global economy, said Mr Gamba.

The bank also encourages Thai clients to strategise their portfolios and raise capital for renewable investment.

The bank committed to providing US$1 trillion of sustainable finance and investments by 2030 after achieving $211 billion in 2022.

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To minimise electricity price volatility, Singapore will centralise procurement and supply of gas

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SINGAPORE: The Singapore government may establish an organization to centralize the procurement and supply of oil for the energy sector in an effort to prevent erratic swings in electricity prices brought on by energy shortages.

The organization, Gasco, will combine gas demand from power generation companies( gencos ), which currently choose the quantity and tenure of gas to purchase based on their individual commercial factors. & nbsp,

A stable and secure power system was essential for the transition to net zero emissions, according to Minister for Trade and Industry Gan Kim Yong, who unveiled the centralized gas procurement framework in his opening speech on Monday( Oct 23 ) at Singapore International Energy Week( SIEW ).

Mr. Gan stated that decarbonization efforts were in jeopardy in his discourse to industry experts and decision-makers. & nbsp,

The minister said,” We noticed this during the current global energy crisis, when some nations had to use coal refiring to lower energy rates.” & nbsp,

As the electricity shift advanced, he said, there would probably be more instances of uncertainty in the world. & nbsp,

Our present fuel procurement platform, which relies on the procurement strategies of personal power generation companies, does not guarantee that the system will have enough gas to meet our needs during a crisis when market conditions are ambiguous, according to recent experience.

We need to reconsider how we approach fuel procurement because the energy transition is expected to make the world gas market more dangerous.

Given that 95 % of Singapore’s electricity is produced using organic oil, Mr. Gan emphasized the need for safe and dependable oil products.

Singapore International Energy Week & nbsp is an annual event that is in its 16th iteration this year. At the Marina Bay Sands Sand Expo and Convention Center, it will be open through Friday.

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New momentum for Indonesia’s stalled Masela gas field

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Arifin Tasrif, the minister of energy and mineral resources for Indonesia, made reference to using hybrid offshore and onshore development systems in the Masela liquified natural gas ( LNG ) project, which has sparked rumors that plans to build a 170-kilometer pipeline across an undersea trench that is 3, 000 meters deep may be postponed or completely abandoned.

With a final purchase decision expected in the middle of 2026, at least seven years behind plan, majority Chinese client Inpex Corporation is speeding up construction on the 9.5 million kilogram per season Abadi LNG plant in rural Arafua Sea. & nbsp,

Since Indonesian and Malaysian state oil companies Pertamina and Petronas recently teamed up to purchase the 35 % stake in the project previously held by Royal Dutch Shell, one of the world’s pioneers of floating LNG technology ( FLNG ), the 13 trillion cubic feet ( TCF) project has gained some momentum.

Shell finally left Masela after the then-newly-installed government insisted in 2015 that it be converted from an offshore to an inland operation on the Tanimbar archipelago, which are located northwest of the Indonesia-Australian maritime border.

The Pertamina / Petronas consortium will pay an additional$ 375 million at the time of the final investment decision, and the US$ 650 million investment transaction will be settled in two payment tranches of$ 325 million in cash.

Then, based on the advantages he insisted it would bring to a small archipelago — andnbsp, now an occasional cruiser liner destination— as well as the rest of Maluku province to the north, chief maritime minister Rizal Ramli persuaded Widodok to switch to an onshore development.

In comparison to what the seaward solution might offer in terms of supplying gas directly from an FLNG to a string of power stations across uninhabited eastern Indonesia, some in-depth studies appear to have been conducted to reveal those benefits.

At this point, it is still unknown whether natural gas will be used to force the new LNG herb and how many of the 10, 000 Abadi workers may come from Maluku, an underdeveloped region of eastern Indonesia where copper has recently boosted economic growth. & nbsp,

According to experts, the Masela project’s now-planned use of a hybrid type of floating LNG concept that uses at least one 170, 000 cubic meter Floating Storage Regasification unit ( FSRU ) suggests that it may fill an anticipated supply gap before the pipeline is finished.

Given the challenges facing the tunnel, which runs along the western and southern coastlines of Sumatra and Java and is one of the busiest fault lines in the world, some analysts also wonder if the pipeline will even be built under the new government that will be installed in 2024.

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A minimum of 80 % of an FSRU may be constructed at factories in China, South Korea, or Singapore, leaving small work for local businesses, including state-owned businesses that have benefited from numerous state construction deals over the past ten years. & nbsp,

The only two FSRUs already operating in Indonesia are used for upstream supply to LNG-run power plants, not for downstream projects, in Jakarta Bay and off the southern Indonesian province of Lampung.

An inland facility, according to critics, would benefit politically connected business interests in Jakarta who are either suspected of buying real estate on Yamdena’s primary Tanimbar island or who stand to win lucrative work contracts for the project. & nbsp,

The LNG service may be constructed on a 600-hectare site on Yamdena, which is 3, 000 square kilometers in size and home to 123, 000 mostly Christian residents who work as subsistence farmers or fishermen.

After the Ichthys LNG job on the Northwest Shelf of Western Australia, where the business is considering building a second generation educate at its 8.9 million tonnes per year LNG facility, Masela will overtake Inpex as its second-largest management asset.

Takayuki Ueda, the CEO of Inpex, stated last month that a revised Plan of Development ( POD) would be approved by Indonesian authorities thanks to letters of intent the company had with potential LNG customers.

Inpex and Shell originally intended to mark the POD at the G20 Summit in Osaka, Japan, in 2019, but it was already obvious that the British foreign was leaving after the government changed its mind.

The Masela plant will also include carbon capture, utilization, and storage ( CCUS ) technology, which is anticipated to cost an additional$ 1.2 to$ 1.4 billion, in addition to & nbsp, The & NBSP, FSRU.

For the state power utility Perusahaan Listrik Negara’s( PLN) network of six sizable LNG-fired facilities, which contribute roughly 8, 000MW of the 53,000MW major Java-Bali network, the use of CCUS technology is in line with the government program for the transition to clean energy.

Natural gas, which is still a fossil fuel, will eventually replace coal with renewable energy sources like geothermal, renewable, and wind because they are still in the early stages of development and don’t easily lend themselves to trusted baseload power.

More than 70 % of the Java-Bali network is still dominated by coal and nbsp from Sumatra and Kalimantan. With installed solar capacity of only 300 MW, only 7.7 % of gridrelies are powered by renewable sources, primarily geothermal and water.

Experts claim that while regular inland LNG terminals, of which Indonesia now has three also operational, require extensive berthing, piping, storage tanks, and associated infrastructure, the FSRUs do not.

According to one Jakarta-based oil and gas expert with extensive expertise in Indonesia’s rich gas fields, the more recent integration of an FSRU into downstream gas projects may offer a number of benefits.

It’s crucial to remember that careful planning and taking technological, economic, and regulatory factors into account when using an FSRU upstream. To ensure effective and secure gas handling and storage,” their inclusion involves designing appropriate connections, safety measures, and procedures.”

An FSRU can be used among its inland applications to temporarily store extra gas produced during high generation times, preventing waste and enabling controlled distribution as production rates fall.

Additionally, the associated fuel can be collected and stored, therefore re-gasified and used for energy generation or other reasons, eliminating the need for gas flaring by connecting an FSRU to an inland LNG facility.

To overcome difficulties in constructing long-term inland system, inland fuel projects in isolated or commercially residual locations, such as Masela, could also use an FSRU. It may be a cost-effective method of storing the gas in these situations before it is delivered to consumers or larger pipes.

An FSRU may be quickly deployed to meet small project deadlines and take advantage of beneficial market conditions, experts point out, because standard inland gas processing facilities may take several years to plan, design, and construct.

An FSRU may act as a temporary LNG professional end if the inland project is close to the coast, allowing the gas to be liquefied and stored it before being sent to large LNG carriers for export.

Since its inauguration on July 26, the Masela project has made progress as BP’s long-delayed third Tangguh production train in West Papua ramps & nbsp, up production, and it is now the largest LNG processor in the nation, surpassing Kalimantan ‘ 45-year-old Bontang plant.

A BP spokeswoman predicts that the first LNG will be fully functional by the end of the year, essentially doubling Indonesia’s LNG manufacturing to 30.5 million tonnes by 2027 and giving the sector a new lease on life. It left the next teach on September 13.

PLN, which intends to change many of its outdated coal-fired power stations with oil and, to a lesser extent, renewable energy by 2040, will receive about 75 % of the creation. & nbsp,

The Geng prospect, which was first discovered by Indonesian junior Black Platinum in the North Ganal production sharing contract( PSC ) block 85 kilometers off East Kalimantan in 2011, revealed 500 billion cubic feet of gas and 400 million barrels( MMBLS ) of associated condensate, according to recent announcements from Italian major ENI.

In its quest to achieve net zero, Indonesia wants to use more natural oil in its energy mix. Image: Facebook

North Ganal, the third-largest discovery in the Kutai Basin, is to the south of the Indonesia Deepwater Development ( IDD ) project, which was recently purchased from Chevron — the most recent US oil major to leave Indonesia — and will now make IDD a much more alluring business proposition.

Through a mutual research with ENI, Black Platinum activated the North Ganal wall, and the Roman company joined forces with them in 2011. The Italians first had no interest in Geng and decided to practise what ultimately proved to be a remote possibility in 2012.

Eni suddenly acquired 62 % of the administration right to five oil fields in the Makassar Strait that were previously owned by Chevron. IDD working areas are currently being integrated into North Ganal, and future production is assisting in reducing the potential supply uncertainty of local Bontang.

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Ministry aims to accelerate net zero goal by 15 years

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PUBLISHED: 4:00 on October 5, 2023.

According to the Ministry of Natural Resources and Environment, Thailand wants to postpone its efforts to achieve net zero emissions 15 years earlier than originally planned.

Talerngsak Petchsuwan, the agency’s deputy continuous secretary, stated yesterday that the organization is confident it will be possible by 2050 with improved stakeholder cooperation.

The past administration made the international commitment to achieve net zero emissions by 2065 and carbon neutrality by the year 2050 two years ago. Net zero requires reducing emissions, whereas coal independence requires compensating for emissions with balances.

During COP26 in Glasgow, Scotland, in November 2021, the original Prayut Chan-o-cha administration made the commitment.

According to Mr. Talerngsak,” We now have strong information about the nation’s ability to reach the goal earlier than scheduled.”

If we get help from abroad, particularly with cutting-edge technology, we can shorten the timeline, he said. ” Partners have made significant efforts to show that they are prepared to adapt to the tightening of international laws related to climate change mitigation ,” particularly in the business sector.

Mr. Talerngsak used the EU’s Carbon Border Adjustment Mechanism ( Cbam ) as an example. This mechanism will require Thai producers of cement, fertilizer, energy, and steel to include a greenhouse emission cost for goods entering the market.

According to him, nearby businesses need to invest more in natural systems in order to meet the demands of the EU market. In the near future, he said, Cbam might be expanded to include agrarian, textile, and other materials.

The Thailand Climate Action Conference, which will be presided over by Prime Minister Srettha Thavisin tomorrow at the Queen Sirikit National Convention Center, was organized by the government and its partners as portion of its efforts to combat climate change, according to Mr. Talerngsak.

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