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Malaysia's Securities Commission has announced plans to formally request major listed companies to disclose their El Niño preparedness strategies, amid growing concerns that the country's businesses remain underprepared for the looming weather phenomenon.
Securities Commission Chairman Mohammad Faiz Azmi revealed the initiative in an interview with Reuters during an investor roadshow in the United Kingdom, stating that letters would be sent to all major companies asking: 'So actually, what is your El Niño plan?' Follow-up conversations are scheduled for next year to assess whether the disclosed measures have proven effective.
The move comes as meteorological agencies warn of a potential super El Niño, which typically brings prolonged heat and drought conditions across South-east Asia. Such conditions could significantly damage crop yields and stress water resources, posing a particular threat to Malaysia's vital palm oil industry, one of the world's largest producers of the commodity.
Mohammad Faiz noted that while global market regulators have increasingly required climate-related disclosures, requests tied to specific events like El Niño remain uncommon. He argued that many Malaysian companies had not seriously considered drought contingencies because the country had historically enjoyed abundant water resources.
Separately, the chairman disclosed that the Securities Commission is pursuing deeper cooperation with regulators in the Middle East, as part of broader efforts to strengthen Islamic finance linkages and channel greater capital flows into South-east Asia. The initial step involves comparative analysis of how different jurisdictions classify stocks as Sharia-compliant.
In another development, the commission signed an agreement in July with Hong Kong's Securities and Futures Commission enabling companies pursuing dual listings to use a single prospectus and a unified set of submission documents, effective from September. Mohammad Faiz identified Sarawak Energy as a candidate being encouraged to consider a dual listing, suggesting it could achieve a valuation of approximately US$10 billion upon its eventual market debut. Sarawak Energy did not respond to requests for comment outside business hours.
On the question of whether low-cost carrier AirAsia was on the regulator's surveillance watchlist, the chairman declined to either confirm or deny, while noting that the government had engaged consultants to review the airline's finances. He was unaware of any takeover plans. AirAsia did not respond to comment requests. Co-founder Tony Fernandes stated on Friday (September 18) that no discussions had taken place with the government and that the airline did not require any rescue or bailout.
Looking ahead, Mohammad Faiz outlined the government's ambition to lift Bursa Malaysia's total market capitalization to 6.3 trillion ringgit (US$1.55 trillion) within five years, up from the current level of approximately 4.5 trillion ringgit.
Source: Reuters via Business Times