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The world is getting older. With declining fertility rates, many countries in the world are faced with an ageing society and slowing population growth, and in some cases, shrinking demographics.
This trend, spurred by various factors such as lifestyle choices and education levels, is particularly prevalent in advanced as well as major economies in Asia.
Read the full article HERE.
Originally published by The Star Malaysia.
On this episode of Biztech’s ESG Conversations show, Dive into the insights from AsiaSchool of Business experts – Dr. Melati Nungsari Deputy Dean for Research, Asia School of Business , International Faculty Fellow at MIT and Dr. Pieter Stek Postdoctoral Scholar at Asia School of Business as they discuss the transformative power of ESG practices in ASEAN and Korea.
Key Takeaways :
Watch here.
Originally published by Biztech Asia.
With environment, social and governance (ESG) issues emerging as important factors in today’s global economy and will determine trade access into developed nations and blocs, where do Asean states stand in this development?
As Asean region and ESG experts from the Asia School of Business (ASB), Dr Pieter E. Stek and Dr Melati Nungsari have both co-authored the ESG Practices in Asean and Korea: Pathways Towards Sustainability guidebook, which provides Asean countries and stakeholders relevant to the ESG landscape with a comprehensive overview of the policies that have been effective and ineffective.
The guide also introduces the different strategies and industrial sectors that each nation is focusing on. They both offered StarESG with some insight on how ESG is being pursued across Asean countries, particularly among the small- and medium-sized enterprises (SMEs).
The main drivers of ESG practices in emerging Asean countries are global supply chains, governments, more progressive business leaders, and a young(er) demographic group that pushes for and demands more sustainable consumption.
Although there is also growing ESG awareness among Asean consumers, this is to a lesser extent than in North America and Europe, that is, it is less bottom-up. Because a lot of intra-Asean trade already takes place as a part of global supply chains, and the traceability and reporting requirements are getting increasingly stringent, there are spillovers of ESG practices into the entire Asean production system.
Many producers, who may face higher ESG requirements for sales to North American and European customers, will often use this higher benchmark when designing their processes, even when they are selling to say, India, China or elsewhere in Asean, where buyers have lower requirements.
The question of the diffusion of ESG practices is one of speed (when will sectors or firms move to a higher ESG standards), but also of inclusion, as SMEs may not be able to meet the certification, documentation and traceability requirements that are demanded by customers and supply chains.
We will see more firms embracing good ESG practices, but may also see some being excluded from them due to high compliance costs. Asean nations are also particularly neighbour- or network-focused, so we expect that there would be a trickle through networks as more countries start adapting to ESG regulations and requirements across the region.
SMEs, by definition, have limited capacity to deal with various kinds of compliance and regulation. Therefore, they need some form of external support to help them implement ESG practices, be it from consultants, industry associations, financial institutions, or the government. The type of support needed depends on the industry/supply chain that they are in, with the export-oriented sectors being most affected.
The Malaysian government appears to be paying lip service to this problem, for example by announcing the National Industry Environmental, Social and Governance framework (i-ESG) and the New Industrial Master Plan 2030 (NIMP 2030), but these provide few details.
It’s also important to note that a number of our SME respondents in the study conducted between ASB and the Asean-Korea Center were unaware of the policies and benefits that were given by the government for them in order to ramp up ESG adoption, which is a fairly large issue for communications, but one that is easily fixable.
Businesses always respond to regulation and incentives, and SMEs are no exception. Consistent enforcement of regulations is also an area of concern in most Asean countries. Overall, SMEs in more developed and export-oriented Asean markets such as Singapore and Malaysia are probably more aware of ESG concerns.
For example, many manufacturing firms that have already implemented quality and food safety standards tend to view ESG standards as an additional layer of compliance which they will move towards once they sense that the market demands it.
Because Malaysia is very lightly regulated in terms of ESG, SMEs have very few incentives to proactively adopt ESG standards. Even if they wish to, they may be unable to justify the higher costs.
However, if the incentives are there, Malaysian SMEs will take advantage of them. We see this now with rooftop solar: for many SMEs it has become a no-brainer, as it lowers their energy costs and it can be easily financed by their bank, who understands the risks and financials of the technology. The government can play a role to accelerate these processes in other areas of ESG as well by providing incentives and eventually, imposing taxes.
The best practices mentioned are all driven or facilitated by South Korean government policies. Asean countries can take similar steps that fit with their particular circumstances. With regards to carbon trading, South Korea will become an importer of carbon credits, while many Asean countries also have significant potential to export credits, due to their large forest cover.
Renewable energy is especially attractive to countries that are nett-energy importers. So while Asean countries should not copy South Korea, the government must step in and create the rules needed to facilitate the energy transition.
With regards to the Partnership for Carbon Accounting Financials (PCAF) in South Korea that was mentioned in the guidebook, how can other Asean financial institutions follow suit to assess and disclose greenhouse gas emissions in their loans and investments?
Several Asean central banks, including Bank Negara Malaysia, already have greenhouse gas disclosure requirements. In Malaysia this system is currently principle-based, which means that there are some general guidelines about how this disclosure must be done.
It is a process that is constantly being reviewed by the Task Force on Climate-Related Financial Disclosures (TCFD), as this is still a very new field – not just in Malaysia, but globally. PCAF is another initiative to figure out how banks can do their carbon disclosures, which has members in Korea, but also in other Asian countries like China, Mongolia and Nepal, although it originated from The Netherlands.
If PCAF emerges as the de facto global standard for carbon disclosures, it will probably be adopted by banks in Asean as well.
Originally published by The Star.
This article first appeared in Digital Edge, The Edge Malaysia Weekly on January 22, 2024 – January 28, 2024
There have been renewed calls for improved artificial intelligence (AI) governance and legislative oversight to address the ethical application of the technology including limiting bias. Countries like China, the US and those in the European Union have come up with AI regulatory frameworks. In the latest series of initiatives to shape the development of AI, the US, UK and several other countries including Singapore, Australia, Germany and Chile signed on to a new framework in November 2023 to create AI systems that are “secure by design”.
In Malaysia, the Ministry of Science, Technology and Innovation is developing a code of ethics and governance — to be ready by this year — that would form the basis of AI regulation for the country. The government has outlined the principles of responsible AI in the Malaysia AI Roadmap 2021–2025. These include fairness; reliability; safety and control; privacy and security; inclusiveness; the pursuit of human benefits and happiness; accountability; and transparency.
Those familiar with AI governance say the overriding goal should be protecting the stakeholders, beginning with consumers and individuals. Asia School of Business CEO, president and dean Sanjay Sarma says issues such as customer privacy, liability, and safety and security need to be addressed.
“A second stakeholder category is creators. We are well and truly into the creator economy through platforms such as YouTube and TikTok. Perhaps we need ways for AI to acknowledge where its generative capacity is sourced from,” he says, acknowledging that though this may prove difficult, at the very least creators should be able to mark their work with a “do not mine” request that reputable AI engines will have to respect.
Read the full article HERE.
Originally published by The Edge.
There have been calls for Malaysia to work harder to be a green investment hub, even more so as we face strong competition from our ASEAN neighbours. One way is the reformation of the power sector to accommodate the potential export of renewable energy. We speak to Dr Renato Lima de Oliveira, Senior Fellow at Institute of Democracy and Economic Affairs (IDEAS) to understand what direction Malaysia needs to take as it pivots towards becoming a leader in sustainable development on a global scale.
Listen to the full interview below.
Originally published by BFM.
Setiap negara bergantung kepada perlindungan undang-undang tempatan serta antarabangsa untuk memelihara kedaulatan, sekali gus berusaha memelihara sempadan daripada dicerobohi dan mengawal kegiatan dalam wilayah kedaulatannya. Langkah penting diambil termasuk membabitkan pendaftaran individu berada dalam sempadannya. Ini bukan sahaja menjadi tanda kuasa dan kedaulatan, bahkan membolehkan sumber ekonomi terhad diagihkan mengikut tatatingkat hak individu mendiami di sesebuah kawasan.
Read the full article HERE.
Originally published by Berita Harian.
Setiap negara bergantung kepada perlindungan undang-undang domestik serta antarabangsa untuk memelihara kedaulatan. Sesebuah negara yang berdaulat bukan sahaja akan berusaha untuk memelihara sempadan daripada dicerobohi pihak luar tetapi juga akan mengambil langkah untuk mengawal kegiatan yang berjalan dalam sempadannya. Langkah yang penting bagi sesebuah negara berdaulat adalah untuk mengambil keputusan mengenai pendaftaran individu yang berada dalam sempadan.
Read the full article HERE.
Originally published by Utusan Malaysia.
When used with the best of intentions, social media can be a powerful tool to share wonderful human stories and stay informed about what’s happening in our world. It is also a great place to seek inspiration on what we can do, individually and collectively, to create a better future for everyone.
Climate Voices on Social Media features inspiring climate ambassadors around the globe who use their social media for good. They are all around us: activists, students, actors, artists, writers, photographers, content creators or even you! Here is a roundup of 12 inspiring voices we got to know last year:
A young man with Asperger’s Syndrome born in Montevideo, Uruguay, Antonio Ripoll combines his studies in natural resources conservation with passion for photography. He then fulfilled his dream by starring in National Geographic series Bichero, exploring nature and biodiversity, while using his social media to share content about nature and the importance of protecting it. “When I was little, I felt misunderstood.
I was bullied and I couldn’t connect with other people in a way that made me feel comfortable. At that point, animals saved my life and gave me a reason to keep going. So, all of my nature outreach work is a way of giving back that beautiful gesture that animals had for me. My goal is that we can learn from them so that we can all live together better,” Antonio said.
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A nature-loving Filipina with diverse advocacy work locally and internationally since 2016 who maintains a low-carbon lifestyle, Bea advocates for biodiversity and cultural identity. She is now doing research on improving walkability in local urban spaces through a year-long youth transport fellowship program. Using her social media, Bea shares her own eco-lifestyle hacks, transport concerns, and updates about the climate crisis.
She also has been a social media manager for different organisations throughout her 7 years of advocacy work. One of them is Renacimiento Manila (Rebirth Manila), the heritage and urban renewal organisation she helped start in early 2020, now has over 24,000 followers online.
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Growing up in the Solomon Islands in the South Pacific and seeing how the islands and livelihoods are being threatened and their basic human rights being undermined, it has moved Cynthia Houniuhi to act. “I want to be able to have my children live on the islands my ancestors have lived and walked on and the environment I grew up in,” said Cynthia.
She is the President of Pacific Islands Students Fighting Climate Change (PISFCC) who campaigns to seek an advisory opinion from the International Court of Justice on climate and human rights. She believes that stories move hearts. That is why she uses social media to bring attention to PISFCC’s climate campaigns and share their stories, also to learn from and share with the other young climate activists around the world.
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Dylan is an environmental advocate and political activist from Fiji. He is a proud Pacific climate warrior and climate communicator using social media to highlight innovative solutions and initiatives coming out of the Pacific, showing the world that Pacific people are not merely victims but also solution holders.
He currently works with the Pacific Islands Climate Action Network specifically on the push for a global fossil fuel phaseout and a just transition in the region, as well as supporting the International Court of Justice Advisory Opinion on Climate Change Campaign. #WeAreNotDrowningWeAreFighting
Follow Dylan on Instagram and X
With experiences in the fields of sustainability, climate change mitigation and renewable energy, Ganesha uses his LinkedIn profile to share his voices and initiate discussions about climate. Now he is the Senior Research Associate in Asia School of Business, Kuala Lumpur, Malaysia. “I would say I try to fill the knowledge gap by posting relevant materials (about climate and sustainability) in social media to create more awareness and strike up interesting conversations with people,” he said.
Find Ganesha on Linkedin
Born in 2001 in Tokyo, Isao co-founded Fridays For Future Japan and has been involved with action and strategy planning to demand changes in the local government’s energy policy. Currently, Isao is studying Environmental Humanities and Peace Studies at Earlham College, United States, also working on publishing an independent magazine about decoloniality & East Asia, while using his social media channels to raise awareness about colonialism as one of the root causes of the climate crisis. He was on Forbes Japan 30 Under 30 in 2021.
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Since 2019, Jonathan Berlin has combined his profession as an actor with climate activism. Most notably, he pleaded for a national climate emergency and initiated a letter to stop coal mining in the German village of Lützerath together with other colleagues at the German Bundestag (German federal parliament). Jonathan regularly uses his voice to draw attention to the climate crisis through social media, interviews and broadcasts. In the Arctic, he also filmed a short documentary on the state of glaciers as a seismograph of the climate crisis.
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Driven by immense passion for photography, Kasan Kurdi, born and raised in Yogyakarta, Indonesia, has been working as a freelance videographer for 20 years. He is now actively involved in the local social community Akar Padi that has an annual event called “Ngaran Kite Festival” to talk about youth, agriculture, environment and climate through kites.
“In my work, I often witness how human greed has destroyed our environment. I hope that sharing my visual experiences through the power of social media can capture the hearts and minds of the people so they realise that our Earth is not doing well, so that they will reduce or even stop consuming products which have the potential to exacerbate the climate crisis. For the sake of our future generations after us, enough is enough!” said Kasan.
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Lamiaa Biaz is a French-Moroccan activist who has been living plastic and waste-free since 2019. She uses art and engages in conversations with experts to raise awareness about plastic, waste, and agriculture crises on social media. She also founded the Captain Forest movement which aims to promote sustainable living in the community. Lamiaa stated: “Build a strong connection with nature, then start your ecological journey. Why? Because your actions should come from a place of love. Not fear. LOVE.”
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A German journalist, climate activist, and storyteller, committed to fight the climate crisis and its consequences, Louisa Schneider is now the host of grad.jetzt, a project by Greenpeace Germany that aims to show connections between climate, tipping points, and biodiversity. In this project, she travels to global climate tipping points to show and explain the beauty of the planet as well as the dangerous effects of current climate developments. On social media, she shares her experiences and amplifies the voices of those who are already suffering the most from the effects of the climate crisis.
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Rodolfo “Jun” Sabayton Jr. is a filmmaker, curator, cultural worker, and also a member of several artist collectives and non-government organisations in the Philippines. An environmental advocate for almost two decades, Jun is known for his long-running collaboration with Greenpeace Philippines on various campaigns to promote plastic-free future and climate justice.
He said, “my work aims to cultivate a global community that embraces environmental stewardship and preservation of the earth. Through social media, I am able to share my art as well as show the beauty of our planet as well as the devastating impacts of human activity. This gives the opportunity to spark conversations, raise awareness and inspire collective action towards a sustainable future.”
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Samela is a young Indigenous of the Sateré Mawé people. Born as an Amazonian, she uses her social media as a tool of struggle and resistance in defence of the Amazon biome and also all the people who live there. “The internet and social media channels for us, indigenous peoples, have become an important tool for deconstruction, decolonization, demystification and denunciation, especially talking about the indigenous and environmental agenda,” Samela stated.
Follow Samela on Instagram
Originally published by GreenPeace.
As Malaysia stands at the crossroads of an evolving economic landscape, the intricacies of pension systems and retirement planning have never been more critical. The conventional “pay-as-you-go” system, a staple in many countries, is facing challenges that make it seemingly unsustainable. Financed by the working population through taxation or government debt issuance, the cost burden of this system is exacerbated by demographic shifts, especially in a nation with a top-heavy population pyramid. In the Malaysian context, the challenges of a “pay-as-you-go” system are pronounced.
One academic estimate places the cost at more than RM40 billion per annum just to provide a basic wage of RM2,700 per month up to the 70th percentile of retirees. The economic strain is evident. The question that arises is clear: How can Malaysia navigate these challenges and create a sustainable retirement ecosystem? A viable alternative lies in the concept of a self-funded, pseudo-government-guaranteed public pension or social security savings fund — an approach successfully implemented by Malaysia’s Employees Provident Fund (EPF) and Singapore’s Central Provident Fund (CPF).
These self-funded pension plans operate on a co-contribution model, where both employees and employers contribute to the scheme. Individual ownership of accounts ensures a sense of responsibility, while a government guarantee sets a floor for returns, preventing them from falling below a specified level. In both Malaysia and Singapore’s case, the legislated minimum is 2.5% per annum in dividend or interest income respectively. While EPF employs a liability-driven investing (LDI) scheme, CPF follows an asset-liability management (ALM) approach. The nuanced differences in investment strategies highlight the need for continuous refinement and adaptation.
For example, ensuring a balance between risk and return in the LDI scheme becomes paramount, particularly in the context of globally interconnected financial and capital markets. Whereas in the case of CPF, all proceeds raised from the Special Singapore Government Securities (SSGS) issued to CPF from member subscriptions as part of the ALM scheme are handed over to GIC to manage in a total returns context. Singapore’s CPF, often lauded as a successful model and hailed by the Mercer CFA Institute Global Pension Index as the best in Asia, presents specific elements that could be seamlessly adapted for Malaysia’s retirement savings framework.
CPF LIFE, Singapore’s life annuity scheme for retirees upon retirement, offers a compelling income-in-retirement blueprint for Malaysia’s EPF. The automatic conversion of a Singapore retiree’s self-funded accumulated sum at the point of retirement into a lifelong steady income stream mirrors the functionality of traditional pension systems. Another noteworthy feature is the CPF/HDB Lease Buyback Scheme, allowing retired homeowners to monetise home equity into a lifelong retirement income stream. The success of these government-backed retirement initiatives lies in both their low-cost and subsidised nature, thus making them sufficient and efficient for retirees.
Market-based pricing checks emerge as a critical component in designing a robust retirement system. Platforms like ImmediateAnnuities.com in the US (previously known as Annuity Shopper Buyer’s Guide), where insurers bid for retirees’ annuity business, provide insights into the market pricing for annuities under free market competition. Access to such auctions, and the resulting price discovery and information, allows Malaysia to establish a market-based pricing mechanism for annuities, hence aligning premiums and payouts with market realities.
Safeguarding the integrity of individual pension contributions and preventing political interference is also imperative. While Malaysia’s retirement savings system is sound, the challenge lies in protecting against unforeseen events. Learning from global counterparts and adopting measures to fortify the system can ensure its resilience. The role of reverse mortgages in unlocking home equity for retirement, as was recently introduced in Malaysia by Cagamas, is noteworthy. However, integrating and pooling the reverse mortgage programme with the EPF savings scheme, akin to Singapore’s CPF Lease BuyBack programme, can potentially pool risks more efficiently and hence enhance payout rates.
Effective risk pooling becomes the linchpin for maximising the risk-return benefits of such schemes, ultimately securing more robust retirement income for Malaysians. Healthcare costs in retirement represent a significant concern globally, and Malaysia can take proactive steps to integrate healthcare coverage into its retirement savings framework. Creating a separate tax-advantaged Medisave account within EPF can cover insurance premiums for healthcare costs, with surpluses available for co-payments or enhanced private care.
The proposal for a goals-oriented approach to publicly mandated retirement savings offers a paradigm shift. By aligning investment strategies with the individual’s needs for retirement, Malaysia can create a more dynamic and personalised approach to members’ retirement savings. Relying solely on a balanced lifecycle fund in your EPF Account 1, which is the account that allows you to withdraw eligible funds to invest in mutual funds and unit trusts, might not suffice, especially in the face of market downturns, as witnessed during the 2008 global financial crisis.
As the conversation expands to encompass the recent developments in the Malaysian retirement planning dialogue, including the Flexible EPF, a nuanced perspective is crucial. While flexibility is akin to a financial option and holds intrinsic value, the impact of such flexibility, as seen in the multiple special withdrawals during the Covid-19 pandemic, and the attendant depletion in members’ retirement account values, necessitates careful consideration. Balancing flexibility with the long-term sustainability of retirement savings is paramount.
Private pension schemes emerge as a promising avenue, offering a self-funded and privately managed alternative. Countries like Malaysia, Singapore and the US have successfully implemented supplemental retirement schemes, which provide tax benefits and the potential to invest in diversified and cost-efficient products. The advantages of private pension schemes over pay-as-you-go systems become apparent with the passage of time. The latter offers individuals more control over their retirement savings and portfolios.
In conclusion, the future of Malaysia’s retirement conundrum lies in comprehensive reform. Drawing inspiration from successful models, integrating innovative approaches and prioritising individual needs can reshape the retirement landscape. Malaysia has the opportunity to create a sustainable, flexible and goal-oriented retirement system that meets the diverse needs of its citizens. The time is ripe for a transformation that ensures financial security and dignity for retirees in the years to come. To enable that, an EPF-led advisory panel on retirement should be set up to evaluate the best way forward for Malaysia’s retirement savings system, such that the principles of adequacy, sustainability and integrity are assured.
Originally published by The Edge.
Isu berkaitan rakyat tanpa warganegara sebenarnya wujud di hampir setiap negeri di negara ini dan banyak memorandum diserahkan oleh pelbagai pihak termasuk pertubuhan bukan kerajaan (NGO) kepada Kementerian Dalam Negeri (KDN) untuk meminta satu keputusan jelas bagi menangani isu yang mendapat perhatian masyarakat dunia. Malah ia pernah tular di media sosial apabila media lur negara memainkan isu ini di Sabah sekali gus memberi tamparan hebat di Malaysia.
Read the full article HERE.
Originally published by Utusan Malaysia.
