News
(PENANG ) The new generation of Taiwanese investors are attracted to Malaysia, especially Penang, known as the Silicon Valley of the East, says Hsu Shang Chih, president of the Penang Standing Committee of Taiwan Chamber of Commerce and Industry in Malaysia. Since the US-Sino trade war, more Taiwanese investors are considering Penang due to risks of geo-political tensions where Penang is one of the most important hubs for semiconductor in Southeast Asia. “There is trend of Taiwanese investors returning to Malaysia,’’ said Hsu, a Taiwanese who has been in Penang for few decades. Hsu, accompanied by the vice president Chuang Chih Yao said this in a meeting with Magdelyrnn Ang, senior regional manager of Sin Chew Media Corporation Bhd in northern region and Wang Yu Ping, the advertising specialist of Sin Chew Media Corporation Bhd in Penang on 10 May. Hsu, who is also chief executive officer of Lih Mei Industrial Sdn Bhd, said the Taiwan Chamber of Commerce and Industry in Malaysia was set up in the 90s during the peak period with the highest number of Taiwanese investors in Malaysia. Majority of them set up manufacturing plants in Malaysia. The chamber has a total of seven standing committees in Penang, Kedah, Perak, Kuala Lumpur, Malacca, Johor and East Malaysia. The chamber has the most number of members in Kuala Lumpur, close to 200 members followed by 90 members in Penang, he said. The number of Taiwanese investors plunged after year 2000 as many retired without successors, he said. Some of the companies set up by Taiwanese in Penang are ASE Electronics Malaysia Penang, Hotayi (M) Electronics Sdn Bhd, Inventec Appliances (M) Sdn Bhd, G-Shank Enterprise (M) Sdn Bhd and Dufu Technology Corporation Bhd.
3 d ago
Opinion
As geopolitical strife in the Middle East intensifies, the spotlight on the Regional Comprehensive Economic Partnership (RCEP) and its impact on Malaysia has brightened. With crucial global trade routes, especially those pivotal for oil and gas, potentially at risk, RCEP emerges as a key stabilizer for Malaysia’s economy. This pact could shield the nation from the economic unpredictability that often accompanies geopolitical conflicts, ensuring steadiness in trade and investment flows. RCEP stands as the world’s largest free trade agreement, encompassing 15 Asia-Pacific nations. It represents about 30% of the global population (2.3 billion people) and 30% of the world’s economy and trade volume. Lauded as a landmark since its inception, RCEP is seen as a driver of increased economic integration and support for its member economies. For Malaysia, striving to strengthen its trade connections and diminish economic vulnerabilities, this partnership promises substantial boosts in economic resilience and growth, serving as a strategic defense against worldwide economic fluctuations. Amidst escalating conflicts in the Middle East, the security of key maritime pathways, including the Strait of Hormuz and the Suez Canal crucial for oil shipments, hangs in the balance. In 2022, according to the International Energy Agency, Malaysia’s crude petroleum imports amounted to US$12.2B, with significant volumes coming from Saudi Arabia, the United Arab Emirates, Brazil, Kuwait, and China. Any disruption in these supply lines could profoundly affect Malaysia’s energy security and overall economic stability. Hence, it is crucial for Malaysia to seek alternative markets and diversify its trade to secure a steady inflow of vital resources. The importance of RCEP is underscored by its role in providing varied trading opportunities for Malaysia, extending beyond the volatile markets of the Middle East. From January to March 2024, exports to RCEP countries accounted for 29% of Malaysia’s total exports, summing up to approximately RM203 million. This statistic highlights RCEP’s capacity to mitigate risks associated with dependence on a single region. By fortifying trade relations within the Asia Pacific, Malaysia not only safeguards itself against potential supply disruptions but also opens up avenues for diversifying exports and boosting industrial cooperation. Moreover, RCEP grants Malaysia access to vast markets like China and Indonesia, with populations of 1.4092 billion and 275 million, respectively. This economic integration could be particularly beneficial for Malaysia as it navigates the complexities of global trade amidst Middle Eastern instability. The simplified trade regulations and unified standards under RCEP are likely to enhance operational efficiency and reduce costs for Malaysian businesses, thus amplifying their export capabilities. As the Regional Comprehensive Economic Partnership (RCEP) gains momentum, its significance for Malaysia’s economic strategy is poised to intensify, especially with ongoing tensions in the Middle East. The immediate advantages of RCEP for Malaysia are evident, yet the long-term effects on its economic landscape are still unfolding. Engaging robustly with this extensive trade agreement is crucial for Malaysia as it seeks to navigate and shape its economic destiny in a rapidly evolving global environment. To harness the full potential of RCEP, Malaysia can adopt four […]
3 w ago
“We need a Government authority to set an emission factor for PLCs”. What is happening in the capital markets surrounding climate reporting is causing more angst and confusion than it should. There is so much chatter and noise about what public listed companies (PLCs) should be expected to do in terms of climate reporting. The Advisory Committee on Sustainability Reporting (ACSR) has issued a consultation paper to get views from market participants. To share our thoughts on this subject, we thought that it might be easier to give a more holistic view, instead of answering specific questions, which are difficult to answer. First, we note that the stock exchange here has issued its Enhanced Sustainability Reporting Requirements (ESR Requirements), and the timeline for compliance by PLCs. However, with respect tClimate-Related Reporting, Bursa’s ESR Requirements do not refer to International Financial Reporting Standards (IFRS) S1 and S2, which are currently being promoted for adoption by ACSR. A major part of global climate reporting will be based on IFRS S1 and S2. The rationale for this is based on two factors: Firstly, the European Union (EU) has its own European Sustainability Reporting Standards (ESRS). On 22 December 2023, EU issued its first set of 12 ESRS for all entities subjected to the Corporate Sustainability Reporting Directive (CSRD). The effective date for implementation of the said ESRS was 1 January 2024. Secondly, the United States has not adopted IFRS S1 and S2. Instead, on 6 March 2024, the Securities Exchange and Commission (US SEC) – the Federal Government agency that regulates the Securities Market – issued a final Rule to enhance and standardise climate-related disclosures. The said Rule is to be subsequently released to public companies including those undertaking IPOs, although we are not aware of the exact implementation date of the rule. Furthermore, under the Rule, public companies are not required to disclose Scope 3 GHG Emissions. From our understanding, Bursa requires Main Market-listed issuers to disclose climate reporting that corresponds with TCFD (Task Force on Climate-Related Financial Disclosures) recommendations from Financial Year End (FYE) 31 December 2025. In the case of ACE Market Listed Companies, disclosure of GHG Emission is required from FYE 31 December 2026 and after, but alignment to TCFD requirements is not mandatory. Instead, Bursa requires disclosure of Transition Plans from FYE 31 December 2026 and after. Here is where the challenges between Bursa and ACSR arise: 1. There is a difference between Bursa’s implementation dates and ACSR’s. 2. Bursa’s ESR covers more than climate-related reporting; and is a good effort to get Malaysia’s PLCs ready for the impending implementation of International Sustainability Standards Board’s (ISSB) Standards. 3. While IFRS S2 integrates TCFD Recommendations and Guide, it is not exactly the same. IFRS S2 requires more detailed information. What this means is that compliance with IFRS S2 would translate into compliance with TCFD, but not necessarily the other way round. Bursa’s Illustrative Sustainability Report dated 18 September 2023 guides PLCs to disclose Governance, Risk Management, Material Matters, Performance […]
3 w ago
People are now convinced that Climate Change , and extreme weather are caused by human activities especially after the Industrial Revolution. But ironically, not all are aware that literally every single woe and every single problem encountered by the human race today is caused by Climate Change, from mental health to global economy, and every uncertainty you can imagine. Read the global news , if they are fortunate enough to be still in print, all the disasters unfolding before us every second of the day, 365 /366 days a year . It is, I could confidently say, mankind is in the darkest and most unsought period in the entire history of the universe! What is considered the worst in our existence, we have it today. The very worst imaginable! Scorching-oven -heat temperature , or Arctic- like cold is no longer something a novelty. Droughts, famines, torrential rains, uncontrollable floods and wild fires are reported everywhere. Then typhoons , hurricane, and tsunami . The people who bear the brunt are our loved ones, the innocent young children , who will end up getting CANCER, from the toxic haze/smog , pregnant mothers, the medically vulnerable, those with underlying medical conditions and problems, the vulnerable senior citizens. All in the dirtiest polluted countries have their lifespan shortened by at least 5 years and will be burdened by a lifelong lung related diseases and premature death. The medical bills are something even the rich may not afford! It is worst than a convict serving a life sentence, because the notorious convict can still be helped . Then we have the small countries gradually sinking, in the Pacific Ocean. Most polluted Bangkok and Jakarta are sinking. The latter has been relocated to Borneo, care must be taken that the environment is protected in this monumental exercise. Plastic pollution is acknowledged to be a huge global problem today. We all have the responsibility to see to it that huge amounts of plastic waste do not pollute our environment and any part of the planet earth, especially causing harm to basically all forms of living things eg. human beings and the fish we eat when the plastic waste finds its way to the rivers, the seas and eventually the oceans. Micro plastics are found in people. These tiny particles are in our blood and our lungs! Similarly , in bigger proportion in animals. The harm to our health is something which scientists are most concerned and are still studying. It is imperative that stringent law be enacted to stop littering, especially anything made of plastic to save our own health and the planet earth. It is rather sad to note that we have the expected “adventurers “ like those who leave their countries to seek fortune! This group is not interested in a clean environment and, therefore , not helping at this most critical and challenging time in the entire human history. A million Climate Summits can be arranged, but if there is no genuine desire to […]
4 w ago