Malaysian regulator to ask publicly-traded firms for El Nino plans, eyes deeper Middle East ties

Malaysia's Securities Commission intends to request publicly-traded firms to disclose their El Nino preparation plans, as the country may be unprepared for the potential consequences of a super El Nino weather event, according to chairman Mohammad Faiz Azmi. The forecasters predict a possible super El Nino, which can lead to prolonged heat, drought, and negatively impact the palm oil industry, a key economic sector in Malaysia.

The commission plans to send a letter to major companies asking about their El Nino plans and will later review their effectiveness. This initiative aims to test if climate-risk disclosures translate into practical preparation, as many firms have not seriously considered drought coping strategies, given Malaysia's historically abundant water resources.

Additionally, the Securities Commission is exploring closer ties with Middle Eastern regulators to strengthen Islamic finance links and attract more capital flows into Southeast Asia. The commission has also signed an agreement with Hong Kong's Securities and Futures Commission, enabling companies to use a single prospectus and submission documents for dual listings.

Sarawak Energy is one of the IPO candidates the commission is encouraging to pursue dual listings, potentially reaching a valuation of around US$10 billion. The regulator's surveillance watchlist for AirAsia remains undisclosed, and the government denies any rescue or bailout plans for the carrier. Lastly, Mohammad Faiz stated that the Malaysian capitalization of Bursa Malaysia aims to increase to 6.3 trillion ringgit (US$1.55 trillion) within five years.