Latest news with #ArshadMohamedIsmail
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.
