Latest news with #ArshadMohamedIsmail
New Straits Times
24-07-2025
- Business
- New Straits Times
Malaysian and Chinese credit rating agencies to strengthen cross-border ties
KUALA LUMPUR: Malaysian Rating Corp Bhd (MARC) and China Chengxin International Credit Rating Co Ltd (CCXI) have teamed up to strengthen cross-border collaboration in credit rating, macroeconomic research and sustainable finance initiatives between Malaysia and China. The partnership aims to enhance transparency, promote best practices in credit assessment and foster joint research and development of analytical tools, as well as environmental, social and governance (ESG) and green finance methodologies. It also opens the door for joint conferences, knowledge sharing and closer cooperation on credit assessments of Chinese enterprises in Malaysia, along with Malaysian entities in China and Hong Kong. The collaboration sets the foundation for shared networks, mutual market access and joint product development between the two institutions. It also aims to reduce the informational gap between national rating practices, encourage investor confidence and enhance global recognition of regional credit rating standards. A joint working group will be formed to implement the cooperation framework, identify priority initiatives and develop joint programmes. These include macroeconomic and sectoral research, credit assessment innovations and collaborative engagements in the Islamic capital market, as well as sustainability-linked instruments. MARC chief executive officer Arshad Mohamed Ismail said the partnership represents a revolution, broadening its international presence and aligning with global trends in sustainable finance. It reflects the ambition to position MARC as a connector between Asean and key financial markets such as China. "We believe credit rating agencies can play a more proactive role in supporting capital formation and risk transparency across borders. "Through this collaboration, we aim to co-create methodologies that are locally grounded yet globally relevant, particularly in areas such as Islamic and sustainable finance and ESG," he said in a statement. Arshad added that MARC looks forward to cultivating long-term knowledge exchange, research innovation and joint thought leadership that benefit the broader financial ecosystem. CCXI CEO Dr Yue Zhigang said the collaboration could expands the firm's presence and relevance within the Asean region. "In today's increasingly interconnected financial markets, closer cooperation between rating agencies is essential. "It is not only for knowledge sharing, but also for ensuring consistent credit benchmarks that investors can trust," he added.
BusinessToday
18-07-2025
- Business
- BusinessToday
Tariff Pressures And Trade Shifts Dominate MARC's 2025 Economic Forum
Trade disruptions, strategic tariff manoeuvres and shifting global alliances took centre stage at Malaysian Rating Corporation Bhd's (MARC) 2025 forum, 'An Afternoon Talk with MARC: Global Economic & Market Outlook, Geopolitics and Tariff Agendas'. The forum brought together senior executives, economists and policymakers to explore how Malaysia and the region can adapt to an increasingly turbulent global economy. MARC Group Chief Executive Officer Arshad Mohamed Ismail described the current global climate as one where 'economic tools have become geopolitical weapons'. He warned that the resurgence of tariffs as a foreign policy instrument, particularly by the US, is reshaping trade flows, amplifying supply chain risk and demanding a fundamental rethink of how nations and businesses compete. 'Malaysia must recalibrate its competitiveness strategy — resilience, adaptability and the ability to form strategic alliances are now more critical than low costs or market access alone,' Arshad said during his opening remarks. Chief Economist Dr Ray Choy expanded on this view as he forecasted a slowing global growth driven by fragmented monetary policy, fragile consumer sentiment and sustained geopolitical uncertainty for the second half of 2025. 'While the eurozone is showing signs of cautious recovery, the US economy faces headwinds and China continues to struggle with soft domestic demand,' he said, while projecting that Malaysia's GDP to grow 4.4% this year, supported by robust domestic activity and a gradual tourism revival. Meanwhile, despite challenges such as a higher Sales and Service Tax, MARC said inflation is expected to remain under control. 'Bank Negara Malaysia's (BNM) recent rate cut to 2.75%, in line with global monetary easing, signals a more supportive policy stance aimed at sustaining domestic momentum,' it added. Separately, a panel discussion titled 'US Tariffs & Geopolitics: Demystifying Nested Agendas' featuring a distinguished lineup of BNM Assistant Governor Mohd Fraziali Ismail, academic and former deputy minister Prof Dr Ong Kian Ming and political analyst Prof Dr Bridget Welsh dissected the underlying motivations behind US trade policy shifts. The panellists highlighted that recent US actions, including selective tariff reductions and increases. indicate a recalibration of trade posture rather than a return to free trade. They shared that this evolving terrain has accelerated the formation of regional trade networks, with blocs like ASEAN and the European Union strengthening intra-regional cooperation to buffer against external shocks. Malaysia, they stressed, should adopt a strategic, non-confrontational approach. 'High-tech sectors such as semiconductors should be prioritised in tariff negotiations, while existing trade agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership should be fully leveraged to diversify export markets. 'Strengthening ties with fast-growing economies in Asia and the Middle East was also seen as vital,' the panellists said. The conversation also turned to monetary dynamics as the panellists agreed that the US dollar will remain dominant for the foreseeable future. Malaysia's approach, they said, should be framed as pragmatic risk management instead of an effort to challenge the dollar's global reserve status. Subsequently, the closing discussions pointed to cautious optimism for Malaysia's medium-term trajectory where it was shared that while global headwinds persist, the country's strong domestic fundamentals, reform momentum and strategic geographic position offer a buffer against external volatility. As tariff pressures and geopolitical shifts continue to reshape the global economic landscape, the MARC forum made one point clear: Malaysia's resilience will depend not just on reacting to global trends, but on anticipating them and shaping its own place within a rapidly evolving order. Related
The Star
14-05-2025
- Business
- The Star
MARC: Positive outlook for Malaysian market following US-china 90-day tariff pause
KUALA LUMPUR: The Malaysian market outlook remains positive following the recent 90-day pause in the trade dispute between the United States (US) and China, according to Malaysian Rating Corp Bhd (MARC). Group chief executive officer Arshad Mohamed Ismail noted that the government has taken proactive steps to mitigate the impact of US tariffs. He said the domestic bond and sukuk markets continue to demonstrate ample liquidity. "Given the latest progress in negotiations between the US and China, the current outlook appears encouraging. However, continuous monitoring of developments is essential,' he told Bernama on the sidelines of the MARC Lead Managers' League Table Awards 2024. On the credit front, Arshad stated that availability should not be a concern, though it will ultimately depend on issuer demand. He added that some issuers with significant exposure to US markets may be more sensitive to tariff developments and should closely track the ongoing negotiations. Meanwhile, Arshad said Malaysia is well-positioned to reach a mutually beneficial arrangement, given the encouraging progress in negotiations between the US and China. He said the relevant policymakers are approaching the situation with sound judgment to ensure outcomes that are advantageous to all stakeholders. Additionally, Arshad said MARC projects Malaysia's gross domestic product growth for 2025 to be a moderate 4.4 per cent, which he described as still a commendable figure. In his welcome speech, he said the capital market cannot overlook the growing challenges in today's global landscape, including heightened geopolitical risks, persistent inflation, and uncertain trade policies -- particularly from the US -- as well as shifting regulatory environments, with regions like the US and Europe beginning to loosen their monetary policies. He said the pace and extent of these moves will largely depend on their respective inflationary conditions, and these shifts could influence liquidity flows into emerging markets like ours, offering both opportunities and risks. "For the bond market specifically, elevated interest rates may increase borrowing costs and moderate demand for fixed-income instruments. "Issuers must remain fragile and investors will need to assess risk-adjusted returns with greater scrutiny,' he said. Earlier, Johor Plantations Group Bhd and its principal advisor and lead arranger, Maybank Investment Bank Bhd, bagged MARC's special award, the Most Innovative Sustainable Finance Deal Award, which recognised the RM1.35 billion sustainability-linked sukuk wakalah. AmInvestment Bank Bhd has emerged as the leader in the Issue Count category, while Maybank Investment Bank Bhd clinched the Issue Value category. - Bernama
Borneo Post
24-04-2025
- Business
- Borneo Post
Sabah has to transition towards cleaner, more sustainable energy solutions
Arshad Mohamed Ismail KOTA KINABALU (Apr 24): Sabah needs to move towards cleaner, more sustainable energy solutions. Malaysian Rating Corporation Berhad Group Chief Executive Officer Arshad Mohamed Ismail in his special address said that Sabah has initiated an ambitious yet necessary journey towards energy security and affordability as well as environmental sustainability after the launch of the Sabah Energy Roadmap and Master Plan 2040 (SE-RAMP 2040). 'Blessed with abundant natural resources, Sabah has long been a key contributor to Malaysia's economy. However, the State's energy faces significant challenges that threaten its long-term sustainability,' he said at the Sabah Renewable Energy Conference (SAREC 2025) held at the Shangri-La Tanjung Aru Resort on Thursday. Arshad elaborated that Sabah's electricity supply remains constrained, as reflected in the State's lower reserve margin compared to that of Peninsular Malaysia, underscoring the urgent need to expand generation capacity. 'The situation is further compounded by the State's heavy reliance on fossil fuels, with 86 percent of power generation currently dependent on natural gas – a resource that is finite in the long term. Despite having an estimated 101GW of renewable energy potential, particularly in hydro, solar and biomass, only 7.3 percent of Sabah's current energy mix is derived from renewable sources. This highlights the need for the State to transition towards cleaner, more sustainable energy solutions,' he said. 'This highlights the need for the State to move towards cleaner, more sustainable energy solutions,' he said. He also said that the launch of the Sabah Energy Roadmap and Master Plan 2040 (SE-RAMP 2040) marks a bold vision to achieve reliable, accessible, affordable and sustainable energy by 2040. 'With ambitious targets – 50 percent renewable installed capacity by 2035, universal rural electrification by 2030, and carbon neutrality by 2050 – achieving these goals demands substantial investment and robust public-private partnerships,' he reminded. Arshad also said that for Sabah to attract investors and drive the growth of its renewable energy sector, it must establish three key enablers. 'First, regulatory clarity is crucial – investors seek a stable and predictable policy environment. In this regard, the devolution of electricity and energy regulatory powers from the federal government to the Energy Commission of Sabah (ECOS) marks a significant step forward. This enables Sabah to take greater ownership of its energy resources and craft regulations that are better tailored to its specific needs and development goals.' 'Second, infrastructure readiness plays a crucial role. The expansion of transmission lines, particularly the 275kV Southern Link, will improve grid stability and enable higher renewable energy penetration. 'Lastly, innovative financial instruments such as green sukuk, ESG-linked loans, and blended finance models can offer alternative funding mechanisms. Sabah's vast solar, hydro and bioenergy resources make it an ideal destination for renewable energy investments. By aligning investment opportunities with national sustainability goals, Sabah can firmly establish itself as a leader in the green economy,' he said.
