More climate data needed to reassure foreign investors, says SC chief

Malaysia's Securities Commission chairman Faiz Azmi has emphasized the need for stronger climate data to reassure foreign investors. He stated during the JC3 Journey to Zero Conference 2026 in Kuala Lumpur that climate resilience will become a key factor in attracting foreign direct investment as investors scrutinize a country's ability to handle climate-related disruptions.

Faiz acknowledged that Malaysia is already viewed favorably internationally, ranking second in ASEAN for resilience after Singapore. However, he stressed that more data is required to substantiate this resilience to prospective investors. Climate risk, according to Faiz, is no longer merely an environmental concern but also a national and economic matter that demands a coordinated response from the government, regulators, and market participants.

He warned that significant climate events like the predicted Super El Nino could disrupt supply chains, commodity markets, insurance, credit, and asset pricing, with far-reaching consequences beyond just drought and haze. Faiz emphasized that regulators are actively working on strengthening Malaysia's climate finance ecosystem, with the Joint Committee on Climate Change (JC3) having launched the JC3 Climate Data Catalogue, which now encompasses 186 unique data points, with overall data availability reaching 82% in 2025.

Better data, according to Faiz, will facilitate the implementation of sustainability reporting in Malaysia and assist companies in disclosing their sustainability efforts in a manner acceptable to global investors. The Securities Commission has incorporated sustainability as one of four strategic pillars in its Capital Market Masterplan for 2026-2030, with the goal of mobilizing RM90 billion to RM100 billion in financing over the next five years.

Faiz noted that the Securities Commission is adopting international sustainability reporting standards to enable companies to present their climate and sustainability initiatives in a globally recognized format. He stressed the importance of robust disclosures for informed investment decisions but cautioned that companies must ensure that forward-looking statements are substantiated by proper basis and process, as they could be employed by aggrieved parties to support litigation.