Latest news with #Transition
New Straits Times
30-07-2025
- Business
- New Straits Times
Dewan Rakyat passes key energy bills to boost power security
KUALA LUMPUR: Laws aimed at enhancing and safeguarding Malaysia's electrical energy security were passed in the Dewan Rakyat today following nearly three hours of debate. The Electricity Supply Act 1990 saw 16 amendments, while the Energy Commission Act 2001 was amended in two key areas — primarily to bolster regulatory powers and oversight relating to the import and export of electricity. Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir said the amendments to the Electricity Supply Act were intended to strengthen the existing legal framework and facilitate electricity exports to neighbouring countries such as Thailand and Singapore. "The goal is to ensure stability, expand electricity supply options, safeguard the national grid, and guarantee energy security across the three countries in the event of supply disruptions," he said. He said that the two laws were applicable only in Peninsular Malaysia and Labuan, as electricity supply in Sabah and Sarawak remains under the jurisdiction of their respective state governments. Akmal assured lawmakers that electricity would only be exported when there is a surplus, stressing that domestic supply would remain the government's top priority. "If any disruption occurs, priority will always be given to the national electricity supply," he said during his winding-up speech, adding that Tenaga Nasional Berhad (TNB) is currently the sole electricity exporter under a pilot initiative. He also said that the country's national electricity reserves remained at an optimum level, ranging between 23 and 28 per cent. Revenue generated from conventional electricity import and export would be channelled into the Electricity Industry Fund (KWIE), which is regulated by the Energy Commission, he said. "This fund is used to manage the impact of tariffs on the public. Meanwhile, income from cross-border renewable energy trade will be directed to the Green Electricity Fund, which supports Malaysia's energy transition agenda and the development of its renewable energy sector. "All Malaysians will benefit from the KWIE fund, which is supported by revenue from electricity trade," he added. Akmal also said that Malaysia was still constrained by current transmission line capacities. At present, only 300 megawatts (MW) can be transferred between Malaysia and Thailand, while 500MW can be transmitted between Malaysia and Singapore for commercial use, with an additional 500MW allocated for system security. He said the realisation of the Asean Power Grid remained part of Malaysia's long-term plan to enhance national energy security.
The Star
25-07-2025
- Business
- The Star
How viable are green investments in Malaysia
AS sustainability gains further traction in the world, it is inevitable that ESG-related investments will take the forefront. According to EY Global Climate Change and Sustainability Services leader Matthew Bell, this is due to the growing support for the concept of stakeholder capitalism—not shareholder, as well as the recognition of the importance of creating long-term value. To find out where such investments stand in Malaysia, or even within the Asean region, and how they, and green bonds, can deliver genuine impact and not become just a branding exercise, StarESG reached out to Climate Governance Malaysia (CGM) council chairman Dr Gary Theseira for his views. How has the demand for ESG-linked investments evolved in the past five years, and what's driving this shift? Theseira: ESG-linked investments have grown in the past five years and are expected to continue growing as institutional investors, driven by regulatory pressures, stakeholder demands and a strategic shift toward long-term value creation, are playing a catalytic role in channelling capital into sustainable assets at unprecedented rates. Leading the shift are institutional investors such as asset managers (like BlackRock, Vanguard), pension funds (GPIF, CalPERS), insurance companies (Allianz, Swiss Re), sovereign wealth funds (NBIM, ADIA) and development banks (IFC, EIB). What do you think is the most misunderstood aspect of green finance in Malaysia today? Dr Gary Theseira serves as the Climate Governance Malaysia (CGM) Council chairman and was recently appointed to the Sustainability Committee of the Malaysian Ratings Corporation (MARC) Solutions. An Adjunct Associate Professor at the Asia School of Business (ASB), he also sits on the board of the Centre for Environment, Technology and Development Malaysia (CETDEM) and serves the Joint Committee on Climate Change (JC3) in the Review Committee of the Climate Data Catalogue (DC). Theseira: Green finance is, itself, a broad concept encompassing green loans, green bonds and green investments, among others. These are commonly understood as having environmental benefits as their defining characteristic. Included, therefore, are climate benefits, and by definition, more recent concepts such as Climate Transition Finance. This is an area of ongoing definition, and so it is not surprising that there exist a number of areas of confusion resulting from differing opinions between progressive developed economies and more practical developing economies. A common assumption is that green finance necessarily excludes any form of fossil fuel use. However, many currently acknowledge that climate transition may involve, firstly, shifting from coal to a transition fuel such as natural gas, before moving to low-emission fuels such as biomass or biogas. Another widely held assumption is that green investments are invariably lower yielding than conventional investments due to higher capital, operating and compliance costs. While it is true that many ESG-labelled funds have struggled to keep pace with sector averages, a small proportion (around 5.4%) have consistently delivered strong, risk adjusted returns over one, three and five-year timeframes. How does Malaysia compare to other Asean neighbours in green financing progress? Theseira: A healthy and vibrant Green Finance ecosystem must necessarily be underpinned by robust governance and transparent disclosure frameworks. In terms of the former, Malaysia's adoption of Taxonomies for loans and investments, which has helped initiate the evolving Asean Taxonomy (now in its third version, with version four under development by independent assurance and risk management provider Det Norske Veritas) is clearly an area in which Malaysia is exercising leadership. In terms of the latter, Malaysia was recently recognised by the IFRS Foundation for its commitment to sustainability reporting. In its recently issued Jurisdictional Profile, Malaysia is acknowledged as adopting the ISSB Standards with limited transition (an acknowledgement of the global standing of Malaysia's National Sustainability Reporting Framework, NSRF), representing the only jurisdiction in the Asean region to have done so. In addition, Malaysia's Simplified ESG Disclosure Guide (SEDG) has also provided input into the Asean SEDGE or ASEDGE for SMEs in Supply Chains. Finally, Malaysia's adoption of the Maqasid Al-Shariah Guidance for Islamic Capital Markets further underscores Malaysia's commitment to enhance the role of Islamic Capital Markets in facilitating equitable growth and building and promoting a sustainable and inclusive green stakeholder economy. Are there gaps in Malaysia's financial policy or regulatory environment that need addressing? Theseira: With the announcement that Sabah has adopted state-level climate legislation (Sarawak passed climate legislation in 2023), Peninsular Malaysia remains the only territory without climate legislation. Even as the various taxonomies govern the range of investments and selectively promote the financing of climate-positive economic activities, and the NSRF and SEDG drive respectively, the mandatory disclosure by large corporations and voluntary reporting by SMEs—these efforts by themselves are not sufficient. Only a legal framework of emissions allowances (caps)—with incentives for deep cuts and consequences for excessive emissions, such as a carbon tax or a carbon exchange—will gradually but effectively, drive national emissions toward net zero. We understand that such a climate change act is under development and will be tabled in Parliament in the not-too-distant future. Also needed is the sectoral and industry-specific data for benchmarking and threshold setting. We anticipate that the work done by the Joint Committee on Climate Change (JC3)—in particular, subcommittee 5—on data gaps, to develop and maintain the National Climate Data Catalogue, will deliver the needed data in a timely manner. Beyond carbon footprints, what underrated ESG metrics should investors prioritise? Theseira: Exposure and vulnerability to climate hazards should be areas of primary concern, as should risks associated with transition, including carbon border adjustments and regulations or legislation governing imports. Water consumption by industries and liquid effluents and waste are an often-overlooked factor, but this vital information is a mainstay of environmental impact reporting, even under the SEDG. Impacts on nature and biodiversity are also moving to the fore, as recommended disclosures under the Task Force for Nature-related Financial Disclosures (T D) receive increasing attention. Social and governance-related issues surrounding human rights, health and safety, anti-corruption, conflict-of-interest, gender and mental health issues should also receive due attention. How do we ensure that ESG investments and green bonds in Malaysia deliver genuine impact and not just a branding exercise? Theseira: It is not always easy to verify impact as economic ecosystems are large and complex, with numerous interlinkages. Nevertheless, some instrument types (for example, sustainability linked bonds) that link performance (as determined by KPI achievement) to payments, may provide project-level verification of impact. At a national scale, the level of achievement of national goals or targets (as driven, for example, by renewable energy bonds) may also serve as an indicator of impact. Whatever the scale, however, a robust governance framework built around mandatory disclosure of key data will translate into greater transparency and certainty of the measured indicators and enhanced confidence of the impacts. How would technology impact ESG finance in Malaysia? Theseira: Although there has been significant hype surrounding technologies such as fintech and blockchain, ultimately, they serve as tools or platforms that might possibly improve the speed or efficiency of tasks we already undertake using existing financial frameworks and accounting mechanisms. I believe the real game-changer is artificial intelligence (AI), and that there could be both negative as well as positive impacts arising from its use. I fully expect that cyber-criminals are already using AI to enhance the believability of scams, frauds and phishing schemes; something that deserves constant vigilance and tight scrutiny. On the other hand, I see AI being used to refine and localise global circulation models and to improve extreme event prediction while providing more accurate early warning to vulnerable populations. How do SMEs fit in the green finance ecosystem, and how can they be better supported? Theseira: I believe Malaysian SMEs are moving very rapidly up the learning curve. Small businesses ranging from palm oil smallholders in Johor to seaweed farmers in Tawau are already using e-payment systems and familiarising themselves with the SEDG. In this regard, they are the first link in a data chain that runs from them to the public-listed companies (PLCs) and multinational corporations (MNCs) they supply. The PLCs and MNCs will use this data to fulfil part of their NSRF compliance. From there the data chain moves to the financial institutions (banks, insurers and re-insurers) that provide the PLCs and MNCs with capital and operating loans and investments. The data are then used by the financial institutions to prepare their climate risk management and scenario analysis as well as their climate stress tests, which they ultimately submit to the Central Bank, whose remit is to safeguard our sovereign rating. With this understanding, PLCs and MNCs are reaching out to the SMEs in their supply chains, offering training and capacity building, often supported by financial institutions willing to help finance these activities, their investment in return for comprehensive and timely data. However, it is also important not to forget the many SMEs that are not part of a supply chain but rather sell directly to consumers. The Madani principle of leaving no one behind should be invoked to ensure that all businesses, large and small, have a role to play in helping the nation transition to net zero and beyond.
Metropolis Japan
24-07-2025
- Entertainment
- Metropolis Japan
Yuka Goto: Transition
Hiromart Gallery presents Transition, a two-part solo exhibition by Tokyo-based artist Yuka Goto, tracing over a decade of her evolving artistic journey. Spanning works created between 2011 and 2025, this retrospective surveys the gallery's long collaboration with Goto, offering a rare opportunity to explore her meditative world of color, nature, music, and the everyday. Known for her intuitive and emotionally rich acrylic paintings, Goto's practice celebrates the quiet beauty and interconnectedness of all things—from the pulse of the city to the serenity of the natural world. Transition invites viewers to reflect on the passage of time and the cycles that shape both art and life. Split into two viewing periods, each half will feature different works—including 'Magical Crazy Tour' (first half only) and 'Joy Town' (second half only)—making a return visit well worth your while. Step into the colorful evolution of a beloved contemporary voice in Japanese art. Yuka Goto: Transition will be on view at Hiromart Gallery from August 20 to 31, 2025 in the first half, and September 10 to 21, 2025 in the second half. It is open 1-7 pm, and closed on Mondays and Tuesdays.
Business Insider
24-07-2025
- Business
- Business Insider
Why China's export machine keeps humming, despite the US's tariff squeeze
China's exports to the US have slumped due to heavy tariffs under President Donald Trump' s administration. But the manufacturing giant may not be feeling the pinch as much as expected. "Fortunately for Chinese exporters, external demand from other economies has helped offset much of the drag from the US," wrote Lynn Song, ING's chief economist for Greater China, in a Wednesday note. In May, China's shipments to the US plunged nearly 35% from a year ago following Trump's "Liberation Day" tariff announcements. But China's export machine still grew about 5% in the same month because its fast-growing trade started to flow elsewhere. Shipments fell 16% in June despite a trade truce between the two economic giants. Over the first half of the year, China's exports to the world grew 5.9% from a year earlier, defying expectations of a broad slowdown. Growth came from trade with Southeast Asia, the EU, Latin America, and India, according to a recent analysis from ING. ING isn't the only one seeing the trend. In a Monday note, analysts at Goldman Sachs wrote that China's exports have been "resilient," in part thanks to trade rerouting. The Goldman Sachs analysts wrote that part of China's export resilience stems from "the fluidity of goods trade and Chinese exporters' ability to reroute trade flows." For the first half of the year, China's exports to the US declined by $25.7 billion — but this was more than fully offset by increased exports to other countries, resulting in growth of 5.9% from a year ago, according to ING's analysis. High-tech goods are driving China's exports The shift is particularly striking in high-tech and capital-intensive sectors. Exports of semiconductors, lithium batteries, electric vehicles, and machine parts posted double-digit percentage point growth in the first half of the year and are increasingly going to non-US buyers. "Amid China's Great Transition, China's move up the value added ladder has resulted in many Chinese champions producing very competitive products, and even in the case of US tariffs or restrictions, these products will continue to do well in other economies," wrote Song. China's automobile exports grew by 8.1% year over year in the first half of the year. Last year, just 2.1% of China's total auto exports went to the US, while 14.6% went to the European Union. Due to high EU tariffs, auto exports to the trade bloc fell by just 5.2% in the first half of the year, with declines led by Belgium and Germany. However, auto exports to Italy and Spain accelerated. This diversification is helping to offset steep declines in traditional, low-end categories like toys, furniture, and footwear, which have been hit hard by tariffs and are more easily replaced by alternative suppliers, Song added. Analysts expect China's growth to moderate in the second half of the year, particularly as the effects of front-loading to transshipment countries fade. However, exports will still be a key growth contributor, potentially helping the country reach its growth target of around 5% this year. "So long as global growth is steady and end-demand is healthy, Chinese exports are likely to continue to rise given their extreme competitiveness and the difficulties for bilateral tariffs to reduce overall trade flows," wrote Goldman Sachs's analysts.
Time of India
08-07-2025
- Business
- Time of India
Explained: What a 'Just Transition' means for coal workers, states and financial regulators?
New Delhi: As India accelerates its climate commitments and shifts away from fossil fuels, the question of how to finance a 'Just Transition' — one that supports workers, communities and local economies — has come to the fore. According to a new report by the Institute for Energy Economics and Financial Analysis (IEEFA), India must build an inclusive Just Transition (JT) financing ecosystem that brings together ministries, regulators, financial institutions, corporates, and civil society actors. The report, titled Just Transition Financing Ecosystem: Stakeholder Consultation, was released on July 7, 2025, and recommends a phased roadmap — starting from pilot schemes and fiscal incentives in the short term to structural reforms in the long term. What is Just Transition in India's energy context? Just Transition in India refers to an equitable shift away from carbon-intensive sectors like coal, steel, cement, and automotive. It means that those most affected — such as workers in fossil fuel-based industries and vulnerable communities — are not left behind as India builds a greener economy. The IEEFA report notes that while sustainable finance in India is evolving, social priorities like worker reskilling, community resilience, and economic diversification remain underfunded. Who are the stakeholders in Just Transition financing? The report outlines a broad ecosystem of stakeholders. At the top are regulators like the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI), which can enable a shift through policies on disclosure, lending norms, and green finance tools such as Priority Sector Lending (PSL) and Sustainability Linked Loans. 'Capital can be mobilised through public and private sources, guided by ministries via blended finance and incentives. Corporates and their supply chains are key to implementation, especially in high-emission sectors,' said Gaurav Upadhyay, Energy Finance Specialist, IEEFA. Financial instruments like Green Deposits and Sovereign Green Bonds could also be modified to include JT-aligned eligibility and impact metrics. What policy support is required? Central ministries such as the Ministry of Finance (MoF), Ministry of Environment, Forest and Climate Change (MoEFCC), Ministry of Power (MoP), and Ministry of New and Renewable Energy (MNRE) are seen as key actors in setting the policy framework. 'The MoF can embed JT into India's fiscal framework by aligning green taxonomies, allocating resources, and creating a dedicated fund for affected regions and communities,' said Sangeeth Raja Selvaraju, Policy Fellow (India and ASEAN), Grantham Research Institute at LSE. The MoEFCC could help align JT with national environmental policies and leverage programmes like the Green Skill Development Programme and Green Credit Programme. The ministry is also expected to tap into international funding like the Green Climate Fund for nature-based and community resilience solutions. What's the role of SEBI and RBI? SEBI's Business Responsibility and Sustainability Reporting (BRSR) framework and its ESG-linked product regulations could play a role, the report says. 'For instance, SEBI has initiated sustainability reporting through BRSR and ESG-linked products, but JT indicators are still missing. Expanding BRSR to include social risk and JT metrics could help channel capital toward companies with credible transition plans,' said Labanya Prakash Jena, co-author and sustainable finance consultant at IEEFA. Are corporates prepared for Just Transition? According to the report, corporates are starting to integrate JT in their business planning, but many face roadblocks. These include high transition costs, limited finance access for MSMEs, and supply chain constraints. Companies are asking for clearer policy guidance, supportive regulation, and structured investor engagement. There's also a growing demand for integrating social inclusion metrics into Environmental, Social and Governance (ESG) frameworks. What about state-level readiness? A key gap is at the state level, especially in coal-dependent regions. 'The government must also look to boost state-level engagement, especially in coal-dependent regions, as many states lack the technical capacity to design, finance, or implement JT-aligned programmes,' said Jena. What are the report's recommendations? IEEFA advocates a three-phase approach to institutionalise JT financing: 1. Short term – Pilot schemes, fiscal incentives, and state-level engagement 2. Medium term – Regulatory scaling through integration of JT metrics in finance and ESG 3. Long term – Structural reforms such as dedicated JT funds, blended finance platforms, and community-level inclusion 'Ultimately, a successful JT will require sustained coordination between ministries, regulators, state governments, corporates, and civil society,' Upadhyay said. He added that investing in capacity building, financial innovation, and inclusive planning will help ensure that India's energy transition is not just green, but also equitable.
