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ESG, News

Over 800 Coal Plants Worldwide Could Be Profitably Decommissioned

SINGAPORE: More than 800 coal-fired power plants in emerging countries could be decommissioned and profitably replaced by cleaner solar energy starting from the end of the decade, a research showed. Though only a tenth of existing coal plants are scheduled to shut down by 2030, more could close if efforts are made to identify opportunities, the Institute for Energy Economics and Financial Analysis (IEEFA) said. “The key problem here is a lack of a pipeline of well defined, contracted, bankable coal-to-clean transactions,” said lead author of the report, Paul Jacobson. Around 15.5 billion metric tons (MT) of carbon dioxide are generated every year by 2,000 gigawatts (GW) of coal power. The International Energy Agency says emissions need to reach zero by 2040 if temperature rises are to remain within the threshold of 1.5 degrees Celsius. But decommissioning is costly, especially if plants are still paying off debt or tied to power purchase agreements (PPAs) that commit them to supplying electricity over decades. Governments have been looking for solutions to pay for the transition – including the Asian Development Bank’s Energy Transition Mechanism – but only a small number of projects have gone ahead. The 800 viable transition targets identified by IEEFA include around 600 built 30 years or more ago, many of which have repaid debts and are no longer tied down by lengthy PPAs. With profit margins for renewables now sufficient to cover the cost of replacing coal plants, decommissioning the remaining 200 plants built between 15 and 30 years ago could also be affordable, though obstacles remain, including fossil fuel subsidies that inflate an asset’s value. Decommissioning newer plants will be a bigger financial challenge, particularly in countries still building fresh capacity, including Vietnam. Environmental groups have criticised transition financing for paying polluters not to pollute. Jacobson said “guardrails” were required to avoid creating perverse incentives. “Companies that continue to build new coal power plants while seeking concessions to build renewable energy should not be allowed to use that to benefit from this,” he said. — REUTERS

News, Property

Regent Hong Kong The Signature Suite Collection Revealed

HONG KONG: As part of its stunning transformation, the reimagined Regent Hong Kong continues to ramp up the allure with the unveiling of the Signature Suites, a trio of spectacular luxury residential retreats. Each of the residence is equipped with a private outdoor terrace and whirlpool, unrivalled views of Victoria Harbour and the dazzling Hong Kong skyline, plus a myriad of Personal Havens enhanced by bespoke service “on your terms”. Showcasing the sublime aesthetic of visionary Hong Kong-born architect and designer Chi Wing Lo, the Presidential Suite, Terrace Suite and CEO Suite are one-of-a-kind Personal Havens that elevate the Regent Hong Kong experience to new heights. Celebrating the beauty of contrasts, Lo has created timeless spaces with a serene design sensibility that stunningly juxtaposes the hotel’s spectacular vistas from a multitude of aspects, allowing guests a bespoke experience that inspires special moments. From wedding ceremonies with cocktail receptions set against the backdrop of Victoria Harbour to intimate soirées, exclusive private events, romantic getaways and family reunions, Regent Hong Kong’s signature suites set the stage for exceptional experiences. Regent Hong Kong Managing Director Michel Chertouh comments, “Each of our Signature Suites is designed to offer a highly personalised experience and the height of sophistication and discreet luxury. Guests will feel as if they are living in a luxurious contemporary residence with spaces that become their own, rather than a hotel suite.” Re-envisioning each signature suite with warm cream tones, custom furnishings in natural oak with leather detailing and artisan craftsmanship, Lo has created a tranquil ambience with understated sophistication, elevated above the bustle of the city, while overlooking it all. The three Signature Suites represent the crème de la crème of the 129 stunning suites at Regent Hong Kong amongst a total of 497 guestrooms. With a variety of categories from which guests can choose, each Regent suite is a residential-style luxury retreat with a spacious living area and Oasis bathroom. While basking in discreet luxury and elevated amenities ‘with compliments’, guests are privy to magnificent vistas in Harbourview and Seaview Suites with intimate Private Havens designed for indulgent moments.

Investment & Market Trends, News

Malaysia Expected to Benefit From Electronics Sector Recovery in 2H24

KUALA LUMPUR: Malaysia is expected to benefit from the electronics sector recovery in the second half of the year (2H24), given its position further down the electronics value chain. The Institute of Chartered Accountants in England and Wales (ICAEW) said in a statement that the electronics sector is a bright spot for Southeast Asia’s economy, with the region projected to grow by 4% in 2024 and 2025. “However, this is below the pre-pandemic average of 5% in the 5 years prior, largely due to expected challenges in domestic consumption as interest rates remain higher for longer,” it noted. The association said electronics-focused exporters in Southeast Asia gained a better foothold in the first quarter of this year (1Q24), in large part due to the bottoming out of the electronics sector. “The recovery in global semiconductor sales, which saw a 15.3% year-on-year (YoY) increase in 1Q24 has particularly benefited Vietnam, where export growth soared to an estimated 16.8% YoY. “On a seasonally adjusted basis, Singapore also saw a rebound in non-oil domestic exports in April with an estimated 9.4% month-on-month (MoM) growth, marking a positive turn after 2 consecutive months of decline,” it said. Meanwhile, on domestic consumption in the region, ICAEW said domestic consumption in Southeast Asia was more resilient than expected in 1Q24, but it is unlikely to drive growth in the coming quarter as tight monetary policy in the region is expected to restrain consumer spending. “The persistent weakness in local currencies against the US dollar is likely to limit monetary easing options for Southeast Asian central banks. “The strong US dollar, driven by the US Federal Reserve (Fed) high interest rates prevents local central banks from cutting rates without risking further currency depreciation,” it added. The association noted that in 1Q24, Bank Indonesia was even forced to raise rates to arrest the rupiah’s decline. “The ongoing tight monetary policy means that debt servicing and borrowing costs will remain high, likely constraining private consumption. “Additionally, many consumers and businesses are continuing to consolidate as they are still recovering from the pandemic and are likely to focus on rebuilding savings or repairing their balance sheets in the short term,” it said. On the ringgit, ICAEW noted that the Malaysian ringgit encountered significant challenges in 1Q24, largely attributed to the substantial discount of the Bank Negara Malaysia’s (BNM) policy rate to the US Federal Funds rate. It opined that despite inflation remaining relatively low, hovering below 2% for the past 6 months and showing little indication of a significant increase, the currency weakness poses an obstacle to BNM’s ability to ease policy to support the economy. “This challenge persists until the Fed initiates rate cuts, anticipated to occur in the 3Q, alleviating pressure on the ringgit and potentially enabling policy rate adjustments,” it added. — BERNAMA

Investment & Market Trends, News

Malaysia-China Signed 14 MoUs/MoAs, Enhancing Economic and Trade Cooperation

PUTRAJAYA: A total of 14 Memoranda of Understandings, Agreements (MoUs/MoAs), protocols and joint statements involving 9 ministries have been exchanged between Malaysia and China, witnessed Prime Minister Datuk Seri Anwar Ibrahim and China Premier Li Qiang. The documents were exchanged during Li’s official visit to Malaysia, marking his first visit to the country as premier, in conjunction with the 50th anniversary of diplomatic relations between Malaysia and China. The 9 ministries involved are the Ministry of Investment, Trade and Industry (MITI); Finance (MOF); Agriculture and Food Security; Housing and Local Development; Home Affairs; Science, Technology and Innovation (MOSTI); Higher Education (MOHE); Tourism, Arts and Culture; as well as Communications. Apart from the MoUs, Malaysia and China also inked the second cycle of the Malaysia-China 5-year programme for economic and trade cooperation to deepen further linkages between industries in priority sectors like high-level manufacturing and digital economy. The programme, which will from 2024 to 2028, aims to deepen cooperation in robotics, entrepreneur development, innovation and startup, along with research and development in agriculture and primary industries. According to MITI, the second cycle will also focus on existing areas such as trade and investment, manufacturing, the digital economy, logistics and the development of small and medium enterprises. On this, MITI Minister Tengku Datuk Seri Zafrul Abdul Aziz and China’s Minister of Commerce Wang Wentao signed and exchanged 3 key documents – the first document related to the initial Malaysia-China 5-Year Programme for Economic and Trade Cooperation, while the other 2 were new MoUs aimed at increasing high-quality investment in the digital and green economies. More specifically, both countries aim to explore cooperation in digital infrastructure, including communication networks, smart infrastructure and smart cities, enabled by technologies such as AI and 5G connectivity in sectors like manufacturing, transportation, business, finance, education and healthcare. The MoU on green development seeks to explore cooperation in clean energy, new energy vehicles, green finance, sustainable infrastructure construction and green technology. This includes research and development (R&D) and the establishment of scientific and technological innovation platforms to accelerate the green transformation journey of both countries. MITI also welcomes the Malaysia-China cooperation on establishing a single window system to facilitate cross-border trade by streamlining trade regulatory processes and simplifying documentation. The system will enable the seamless digital exchange of trade-related information between customs authorities in both countries, which would utilize leading-edge technologies including AI and blockchain to ensure real-time and accurate exchange of data. “The single window trade initiative is a strategic step towards enhancing Malaysia’s trade facilitation capabilities and is expected to significantly expedite the movement of goods while reducing the administrative burden for businesses. “This will not only support bilateral trade growth, but also nurture economic resilience between the two countries,” Tengku Zafrul said. China has been Malaysia’s largest trading partner for 15 consecutive years since 2009. Last year, total trade with China was valued at RM450.84 billion (US$98.80 billion), contributing 17.1% of Malaysia’s global trade.

News

Costa Serena sees Malaysia as ‘game-changing’ cruise destination market, expanding presence in Asia

KUALA LUMPUR: With cruise tourism emerging as a key sector in elevating Malaysia’s global appeal, Italian cruise liner Costa Serena is expanding its presence in Asia, offering itineraries that include destinations popular among Malaysian travellers such as Singapore, Thailand, Vietnam, Hong Kong, Taiwan, South Korea and Japan. By providing convenient access to these destinations, Costa Serena caters to the preferences of Malaysian consumers looking for diverse and culturally enriching experiences, more so with promotional plans toward Visit Malaysia 2026. In January this year, transport minister Anthony Loke said Port Klang’s designation as an international cruise homeport for the Costa Serena cruise ship will boost the country’s tourism sector. He said the collaborative effort between Costa Cruise Lines and Hwajing Travel and Tours Sdn Bhd (HTT) could bring enduring economic benefits and lasting advantages for the country. HTT managing director Kenny Cheong said to leverage this expanding market, the company has diversified its cruise portfolio by partnering with Costa Cruise Lines and introducing a wide range of itineraries. “From short weekend getaways to extended voyages across international waters, we aim to appeal to a broader segment of travellers. “Notably, we have introduced chartered cruises exclusively tailored to the halal market, further enhancing our offerings,” he told The Exchange Asia. Cruise tourism emerges as a key sector in elevating Malaysia’s global appeal, in line with the destination’s promotional plans toward Visit Malaysia 2026, the nation’s upcoming campaign to welcome 35.6 million foreign tourist arrivals in 2026. In 2023, Malaysia witnessed unprecedented cruise arrival figures, with its ports welcoming 1,055 cruise ships carrying 1,520,608 passengers—an 84.78 per cent rise in ship arrivals and a 62.43 per cent increase in passenger numbers compared to 2019 pre-pandemic rates. As a burgeoning tourism hub in Southeast Asia, Malaysia currently serves as the home port for two cruise lines operating from Port Klang in Kuala Lumpur, with plans for further expansion. The Costa Serena’s maiden voyage departed from Port Klang in January 2024, marking a historic milestone in Malaysia’s aspiration to emerge as a premier homeporting destination. Costa Serena is the latest addition to Kuala Lumpur’s list of cruise partners choosing it as their homeport. Cheong pointed out that Malaysia has a geographical advantage in Southeast Asia and historical significance in the Straits of Malacca as a vital shipping channel, further enhancing its appeal as a cruise destination for accessing a diverse range of regional destinations. He said favourable conditions for growth are evident with the government’s strong commitment to tourism, including cruise tourism, and the transport minister’s recognition of the industry’s significance. “HTT’s reputation for offering cost-effective inbound cruises, paired with collaborative partnerships with cruise operators and tourism authorities, further enhances Malaysia’s attractiveness as a cruise destination compared to neighbouring countries. “In addition, HJJ actively collaborates with cruise operators, tourism authorities, and various stakeholders across Malaysia to bolster the country’s cruise tourism market and elevate its appeal to travellers,” he said. Cheong said HTT is developing tailored marketing campaigns highlighting Costa Cruises’ unique features and offerings. These campaigns will emphasise factors that resonate with Malaysian travellers, such as Asian-inspired itineraries, authentic cuisine, and family-friendly amenities. The company is also forming strategic partnerships with local entities such as travel agencies, tourism boards, and media outlets to enhance Costa Cruises’ visibility and reach in the Malaysian market. “We employ several strategies to ensure Costa Cruises stands out in the Malaysian market. “These include thorough market research to understand traveller preferences, collaborating closely with Costa Cruises to tailor itineraries to Malaysian tastes, maintaining flexibility to adapt to changing trends, and continually innovating to offer unique experiences,” said Cheong. Officiating the event in January, Loke said Costa Cruise Lines’ acknowledgement of Malaysia as a promising market, combined with HTT’s established reputation in Southeast Asian cruise tourism, highlights the shared vision of their collaboration to explore the halal market in the country. He said the establishment of Costa Serena as Malaysia’s first international cruise homeport is a game-changer, elevating Malaysia to a premier international cruise destination. “This positions Malaysia as a regional leader in job creation within the cruise industry and is also a shot in the arm for supporting sectors such as accommodation, dining, transportation, and retail. “Port Klang’s designation as an international cruise homeport opens doors for collaborative ventures with other regional ports, laying the foundation for a network of intersecting cruise itineraries,” Loke said. Costa Serena offers three exciting voyages from Port Klang for the December holiday season. These are a 4 days 3 nights trip to Phuket, a 3 days 2 night trip to Penang, and a 6 days 5 nights exploration journey across Vietnam and Hong Kong. The cruise itineraries have been designed to enable guests to maximise their time at the port-of-calls in Phuket and Penang whilst ensuring a smooth disembarkation process It is also the only cruise ship sailing from Port Klang to Phuket in December, making it perfect for an inexpensive and inclusive island vacation.

News

Boeing Names Penny Burtt as New President for Southeast Asia

KUALA LUMPUR: Boeing has announced Penny Burtt as the new president of the company’s Southeast Asia business, effective 3 July 2024. The global aerospace company said Burtt will be based in Singapore and oversee Boeing’s strategy and operations as it expands its regional presence. “She will also become director and chair of Boeing Singapore Pte Ltd and president director of PT Boeing Indonesia,” it said in a statement. Burtt most recently led public policy and government relations for the Asia-Pacific region at a financial infrastructure company, Stripe. She is a former Australian diplomat who served in Singapore, Indonesia and Malaysia and a board member of the United States-ASEAN Business Council. Boeing also said that it has partnered with stakeholders in Southeast Asia for over 75 years, building aerospace and defence capabilities in the region with offices in Singapore, Indonesia, Vietnam, Thailand and the Philippines. “The region is one of the world’s fastest-growing commercial aircraft markets and its defence needs are rapidly expanding,” it added. — BERNAMA

Energy & Technology, News

Communications Minister Says Malaysia Ready to Roll Out Dual 5G Network

KUALA LUMPUR: The Malaysian government remains committed to implementing a dual 5G network policy. Communications Minister Fahmi Fadzil said that telecommunication companies involved in the dual network model will complete the equity holding process in Digital Nasional Bhd (DNB) on 21 June. “Immediately after that, the process of identifying the telco that will develop the second 5G network will begin,” Fahmi stated on his Facebook page after a courtesy visit from China’s Minister of Industry and Information Technology, Jin Zhuanglong. During the 40-minute meeting, Fahmi said they discussed various telecommunications issues, including the implementation of the second 5G network. Fahmi said the development of the second network will only be open to telcos that have completed equity holdings in DNB. He said that while the implementation of the second 5G network is commercial in nature, the government through the Communications Ministry, decided on a dual network policy to drive competition and ensure the sustainability of the telecommunications ecosystem in Malaysia. “In addition, our discussion also focused on efforts to strengthen the relationship between the two ministries,” he added. According to Fahmi, the potential of ‘direct-to-cell’ technology involving low earth orbit satellites to help address internet connectivity issues in remote areas and placed with no internet access. — BERNAMA

News

Faiz Azmi appointed as SC chairman

KUALA LUMPUR: The Securities Commission Malaysia (SC) has appointed Datuk Mohammad Faiz Azmi as the new executive chairman for a period of three years effective from June 16, 2024 to June 15, 2027. The Ministry of Finance (MoF) said in a statement that Mohammad Faiz Azmi will replace Datuk Seri Dr Awang Adek Hussin who will retire with effect from June 15, 2024. “This appointment is in line with Section 4(2) of the Securities Commission Act 1993 [Act 498],” it said. According to the MoF, Mohammad Faiz Azmi has extensive expertise and experience in finance, capital markets, audit and financial management. “Having graduated with a Bachelor of Law from Durham University and a member of several professional bodies such as the Institute of Chartered Accountants in England and Wales (ICAEW), Mohammad Faiz Azmi has experience as executive chairman of PwC Malaysia and chairman of the Malaysian Accounting Standards Board (MASB). “He has been a member of the SC board since Aug 15, 2023. Armed with his experience, he will be able to make excellent contributions to ensure that SC achieves its goal of becoming a high-performing organisation,” said the MoF. Finance Minister II Datuk Seri Amir Hamzah Azizan said the MoF is grateful to Awang Adek for his service at the SC and believed his expertise and experience would continue to benefit the country’s financial market. Under the leadership of Awang Adek, the SC has revamped two major capital market laws that are currently awaiting government approval, and introduced the Social Exchange, a fundraising platform dedicated to projects with positive social outcomes through mobilisation of private funds and philanthropists in meeting the needs of the less fortunate. – Bernama

News, Property

IOI Properties Opened a 4.05ha Central Park in IOI Resort City

KUALA LUMPUR: IOI Properties Group Bhd (IOIPG) recently opened its 4.05-hectare (ha) Central Park in IOI Resort City, Putrajaya. Nestled adjacent to the Plam Garden Hotel and in close proximity to the 2.5 million sq ft IOI City Mall, this new park promises to become a vibrant hub for residents and visitors alike. IOI Resort City’s Senior General Manager (Property Management) Ho Kwok Wing described the park as a lifestyle landmark catering to families, fun-lovers and pet owners as it offers diverse sporting and waterfront amenities, including a pet-friendly zone with an obstacle course. “The Central Park is our latest offering, rounding out the recreational and leisure landscape of IOI Resort City. “We designed it to foster community interaction in a social space amid serene greenery, scenic lake views and engaging sports amenities,” he said. The park features an open lawn, playground, jungle track, floral green and various recreational spaces. Its sporting facilities encourage active lifestyles, including a skate and bike park as well as courts for basketball, badminton and futsal. Ho highlighted the park’s development aligning with IOIPG’s sustainability goals, providing ecosystem services like climate change mitigation, urban heat island reduction, flood prevention and biodiversity conservation. “In line with efforts to reduce carbon footprint and conserve existing plants, 71% of the trees in the park have been transplanted within IOI Resort City,” he said, adding that over one-third of the trees planted are vulnerable International Union for Conservation of Nature (IUCN) Red List tree species. He also noted that the park supports wildlife such as butterflies, dragonflies, reptiles, small mammals, fish, songbirds, waterbirds and raptors. “For more sustainable operations, the park uses a solar-powered light emitting diode lighting system. “IOIPG aspires to conserve the park for a long-term contribution towards United Nations Sustainable Development goals,” he said. The Central Park, managed by IOIPG is open to the public, residents and visitors without charge. IOI Resort City that spans 318.89 ha is IOI Properties Group’s flagship township development Putrajaya. Its latest residential offering, GEMS Residence, includes 676 condominium units developed with Mitsubishi Estate Residence to blend lifestyle living with community-based care. — BERNAMA

Investment & Market Trends, News

Positive View on DRB-Hicom Remains Due to Proton’s Growth

KUALA LUMPUR: Hong Leong Investment Bank (HLIB) remained positive on DRB-HICOM Bhd’s long-term outlook on potential growth driven by Proton subsidiaries amid increasing market competition. In a research note, HLIB said that Proton is targeting to achieve 2024 sales of 160,000 units against 151,000 units in 2023, through new models introduced and attractive promotional campaigns. “Proton has recently launched the updated X50 RC with good discounts and is expected to launch another X70 facelift soon, along with introducing a new electric vehicle (EV) model by the end of the year in line with management’s target of one new model launch per annum,” it said. HLIB said the DRB-Hicom management brushed aside the potential market competition from Zeekr’s entry into the Malaysian market, given the different market segment, where Zeekr would be positioned as a higher premium segment than Proton’s e.MAS EV. Zeeker is a publicly listed Chinese automobile company and the brand is owned by Geely Automobile Holdings. HLIB also said that Bank Muamalat and CTRM would continue supporting DRB-Hicom 2024’s performance. “We reiterate our ‘buy’ rating with an unchanged target price (TP) of RM1.65 based on a 20% discount to sum-of-parts (SOP) RM2.04,” said the research firm. Additionally, Kenanga Research also maintained its ‘market perform’ call on DRB-Hicom with a SOP-derived TP of RM1.40. The research house said it likes the company for being the second largest player in the local automotive sector, second only to Perodua, with a market share of about 30% and its strong Proton and Honda franchises as well as its improving banking franchise under Bank Muamalat. “However, DRB-Hicom’s outlook has weakened with Rival Perodua turning up the heat with aggressive new launches, coupled with earnings drags from certain non-performing units,” it said. Kenanga Research said the risks to its call include consumers cutting back on discretionary spending amidst high inflation and persistent disruptions in the global supply chain. “Other risks also include a slowdown in capital market activities and a global recession hurting the demand for transport and aviation services,” it added. — BERNAMA

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