Category: Featured in the Media

WITH a storm brewing on the macro front due to US President Donald Trump’s tariffs and trade restrictions, the Employees Provident Fund (EPF) will continue to seek shelter in the domestic market.  This raises questions whether the fund can match or beat the latest dividend returns of 6.3%, in 2025. It is the highest payout since 2017.  The fund appears confident of its strategic asset allocation (SAA).

“The EPF will continue to be guided by its SAA, which targets optimal returns within our risk tolerance as a long-term retirement fund,” it says in a reply to StarBiz 7.  “The SAA is reviewed periodically to take into account the latest capital market assumptions and the asset-liability profile of the EPF, which includes the growing asset size,” it adds.

Under the present SAA, the provident fund has 46% of its assets in fixed income and 44% in equities. The 44% in equities includes 4% in private equity. In addition to these investments, it has 6% in real estate and infrastructure, as well as 4% in money market investments. There is merit to the domestic angle in 2025, according to fund managers.

“The EPF’s strategic allocation of 1:2 offshore:domestic may work well under the general market outlook. Given a relatively good 2024, a tactical allocation in 2025 for risk management may be a wise move. This is especially so with market uncertainty under Trump 2.0.

Read the full article HERE.
Originally published by The Star.

As sovereign wealth funds (SWFs) manage over US$11 trillion in global assets, governance and transparency are essential safeguards against malfeasance and are crucial for building and maintaining public trust, Asia School of Business Senior Business Development Advisor for Corporate and Sustainability Governance Elsa Satkunasingam said.

She highlighted that SWFs play a vital role in ensuring economic stability and wealth creation by making strategic investments that safeguard prosperity for both current and future generations.

“As such, transparent and accountable governance structures are necessary to protect against financial mismanagement and political interference.

“Additionally, clear governance processes help ensure SWFs fulfil their responsibility to manage national wealth for current and future generations effectively,” Elsa said in an exclusive email interview with BusinessToday while pointing out that public confidence hinges on the professionalism and independence of SWF management.

Commenting on the launch of Sarawak Sovereign Wealth Future Fund (SSWFF), Elsa said protective measures such as enacting laws to shield the Board of Guardians and senior management from coercion, holding them accountable if they mishandle funds and launching public awareness initiatives to keep leadership accountable to the fund’s objectives can help SSWFF to maintain its independence and protect against political pressure.

In terms of challenges, Elsa shared that SWFs face the challenge of balancing domestic investments with international diversification.

“Diversification enhances portfolio returns and mitigates domestic risks, but prioritising socioeconomic development through domestic investment is also critical.

“For this, Khazanah Nasional Bhd and Temasek Holdings Ltd balance investments for financial returns with contributions to socioeconomic development by operating across domestic and international markets to foster economic growth while maintaining independence, accountability, and adherence to their investment objectives,” Elsa said, adding that SWFs can leverage emerging technologies like artificial intelligence (AI) and blockchain to enhance transparency and improve investment decision-making in 2025.

“AI enables investors to process large, less structured and complex datasets, and provide insights that previously took much longer to process.

“At the same time, it also helps SWFs to detect emerging trends quickly and it also increases transparency as conflicts of interest, or environmental, social, and governance tracking in their investment portfolios can be identified,” she said.

Originally published by Business Today.

Guest: Dr Elsa Satkunasingam, Governance Specialist, Asia School of Business

Originally published by BFM.

Guest: Pieter E. Stek, Senior Lecturer, Asia School of Business

Originally published by BFM.

Guest: Dr Elsa Satkunasingam, Senior Business Development Advisor for Corporate and Sustainability Governance, Asia School of Business

Originally published by BFM.

The EPF recently introduced the Retirement Income Adequacy Framework, a three-tiered savings benchmark—basic, adequate, and enhanced—meant to be used as a reference to maintain different levels of financial security post-retirement. Is this framework enough to ensure financial security in old age? On this episode of #ConsiderThis Melisa Idris speaks with Professor Joseph Cherian, Deputy CEO and Practice Professor of Finance, at the Asia School of Business.

Originally published by Astro AWANI.

By Joseph Cherian

So why should Malaysia’s tertiary education system be any different from the more developed world’s? It, too, should be embedded with flexibility. Based on the examples provided below, without delving into financial mathematics, one’s educational experience and value would be enhanced far more than a system without such flexibility. In economics, we refer to this as being on the Pareto efficiency frontier, where resources and opportunities are allocated most efficiently.

Flexibility holds intrinsic value in various aspects of life — careers, investment plans and policymaking. A key reason for this is the uncertainty that surrounds future outcomes. Whether it’s predicting the trajectory of financial markets, the global economy, the exchange rate of the Malaysian ringgit, or even getting into a car accident, our ability to foresee the future is inherently limited.

This unpredictability is evident in the changing demands of the workforce. According to the World Economic Forum, 44% of workers’ core skills will need to change by 2027 due to advances in technology and automation. Meanwhile, the global e-learning market is projected to grow to US$842.64 billion by 2030, highlighting the increasing reliance on flexible, technology-enabled education solutions.

Consider the current unpredictability of global events and their implications for education. In today’s rapidly changing world, traditional systems may no longer suffice. For instance, educational models that rigidly define paths without accommodating individual needs or interests risk leaving many behind.

This is where the concept of flexibility becomes critical in education. Allowing learners to tailor their journeys based on personal or professional goals, or even unforeseen circumstances, enhances the overall value of education. Gap years, modular learning, and asynchronous courses are examples of how education systems can adapt to accommodate diverse needs.

Globally, there is growing recognition of the need for adaptive learning structures. Prestigious institutions have adopted models that allow students to pause their studies, explore interdisciplinary fields, or even take courses remotely. These practices not only enrich the individual learning experience but also contribute to society by fostering creativity, resilience and adaptability among learners.

Take, for example, the emergence of digital and online learning in the last decade. Universities worldwide such as MIT, Cornell University and Yale University have embraced this shift, offering remote learners access to high-quality courses and programs. From engineering in Patagonia to business analytics in Kuala Lumpur, technology has bridged the gap between learners and education, bringing opportunities that were once out of reach.

In Southeast Asia, some educational institutions are adopting flexible upskilling approaches, allowing learners to earn course credits at their own pace and transition into full-time or part-time degree programmes if they choose to pursue a postgraduate degree.

The economic value of flexibility in education extends beyond individual growth. It benefits employers by creating a more adaptable workforce and society by encouraging lifelong learning. According to LinkedIn’s Workplace Learning Report, 94% of employees say they would stay at a company longer if it invested in their learning and development — a testament to the importance of education adapts to evolving career trajectories.

As education systems evolve, the emphasis should remain on quality and accessibility. Agile learning methods, stackable courses, and modular degree options are examples of how institutions can make education more inclusive and relevant. These innovations represent a step toward a future where learning is not just a phase of life but a continuous, adaptive journey.

Educational institutions worldwide are already setting the stage for this transformation. By embracing flexibility, we can create an ecosystem that supports learners at every stage of their journey — and, in doing so, prepare for a future where uncertainty is the only certainty.

The author is Asia School of Business Deputy Chief Executive Officer

Originally published by Business Today.

KUALA LUMPUR: The Asia School of Business (ASB) convened the preliminary launch of the Tun Ismail Ali Center of Excellence in Monetary and Financial Economics (TIA CoE), a Bank Negara Malaysia (BNM) endowed research center. The event brought together leading central bankers, policymakers, and academics to celebrate the inauguration of the center at ASB.

Distinguished speakers included Tan Sri Dr Zeti Aziz, founding Chair and Co-Chair of the Board of Governors of ASB and former Governor of BNM, who highlighted that Bank Negara Malaysia had established the Tun Ismail Ali Chair at Universiti Malaya 25 years ago, in August 2000. “This Tun Ismail Ali Center of Excellence that is now being established at ASB is aimed at strengthening further the academic and professional knowledge in the area of financial and monetary economics in Malaysia and more broadly in the emerging world.” Meanwhile, BNM Governor Abdul Rasheed Ghaffour in his keynote address emphasized that the center is able to facilitate policymakers to effectively address the upcoming global macroeconomic challenges. He added that the center is also committed to providing training and development opportunities, inline with the center’s long-term objectives for capacity building. “By enhancing the skills and knowledge of our local talent, the center aims to elevate the overall capacity of our institutions”, he said.

In her keynote address, Professor Hélène Rey, Lord Bagri Professor of Economics at the London Business School spoke on the global financial cycles and their impact on emerging markets. Her pioneering research delved into the complex dynamics of financial intermediaries, implying how risk-taking varies across institutions and the challenges this poses for monetary policy. Professor Rey’s in-sights included the trade-offs that policymakers face in managing these dynamics, emphasizing the importance of balancing economic growth with financial stability in a global landscape.

In welcoming the TIA CoE to ASB, Professor Melati Nungsari, Deputy Dean of Research at the Asia School of Business, highlighted, “It is an exciting opportunity to have TIA CoE join ASB, contributing to the school’s ongoing commitment to delivering cutting-edge research, particularly in monetary and financial economics. This new center will help address key challenges, stimulate discussions, and serve as a hub for academic knowledge sharing and research.” She further noted that over the past decade, emerging markets now account for over 60% of global GDP growth, and employ approximately 85% of the global workforce, emphasizing the crucial role of innovative research in shaping the future of these economies.

“TIA CoE will play a role in supporting research and dialogue on contemporary monetary policy issues facing central banks,” said Professor Ho Sui-Jade, co-director of TIA CoE alongside Professor Ozer Karagedikli. “We are excited to collaborate with BNM and the broader academic community to foster research and knowledge exchange between local academics and other researchers in these areas globally.”

The Tun Ismail Ali Center is committed to advancing research in monetary and financial economics, enhancing the capacity of local higher education, and broadening public engagement. As a dedicated research hub for central banking issues in emerging markets, the center will host central bankers, scholars, and researchers to pursue research that support the center’s objectives. TIA CoE will also facilitate academic knowledge sharing through conferences, seminars, and other research events, while providing training and advisory services to central banks and relevant organizations to further its mission. In the lead up to the TIA CoE’s official launch later this year, the center will establish a grant application process for researchers interested in conducting research aligned with the center’s goals.

Originally published by The Exchange Asia.

Malaysia’s data centre industry is growing rapidly, with Foreign Direct Investment (FDI) in technology reaching over $2 billion in 2022. The country’s strategic location and robust infrastructure have made it a key hub for global data operators. However, this growth raises environmental concerns. Data centres require substantial energy, and Malaysia’s energy mix, still reliant on fossil fuels, contributes to higher carbon emissions.

Niaga Spotlight features Dr Gary William Theseira, Adjunct Associate Professor, Asia School of Business and Khoo Wei Yang, Research Associate, Khazanah Research Institute discussing the key issue of mitigating ecological impact via energy transition and other actionable strategies.

Watch here.
Originally published by Astro AWANI.

The Bursa Carbon Exchange (BCX) was launched in December 2022 as part of national efforts towards reducing carbon emissions. Earlier this month on 16 March, the first auction of carbon credits was conducted involving two products featuring offsets from projects in China and Cambodia. Can the BCX gain traction and help Malaysia achieve its net-zero emissions goal by 2050? Dr Pieter Stek of the Asia Business School gives us his assessment.

Listen to the full interview below.

Originally published by BFM.