Malaysia's securities regulator to demand El Nino contingency plans from listed firms
The Malaysian Securities Commission will ask publicly listed companies to outline how they will cope with a potential super El Nino, and is also seeking tighter cooperation with Middle-East regulators.
Malaysia's Securities Commission announced it will require all listed companies to disclose their strategies for dealing with an anticipated super El Nino, citing concerns over heat, drought and the impact on the palm-oil industry and water resources. Chairman Mohammad Faiz Azmi explained that firms will receive a formal request and will be consulted the following year to assess whether their plans were effective. The move follows a global trend of climate-risk disclosures, but this is the first time the regulator will make such specific requests public.
In parallel, the commission is pursuing stronger ties with regulators in the Middle East to align Sharia-compliant stock classifications and channel more Islamic-finance capital into Southeast Asia. A recent pact with Hong Kong's securities regulator will allow companies pursuing dual listings to use a single prospectus, and Sarawak Energy has been identified as a likely dual-listing candidate with a projected valuation of about $10 billion. The regulator declined to confirm whether AirAsia is under surveillance, noting the government has hired consultants to review the airline's finances.
Why it matters
Investors and the palm-oil sector need to know how Malaysian firms will handle severe weather risks and new financing rules.
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