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

Malaysia's Securities Commission (SC) Chairman Faiz Azmi emphasized the need for stronger climate data to reassure foreign investors, stating that climate risk is now a national and economic concern. Faiz argued that climate resilience should be a key factor in attracting foreign direct investment (FDI) as investors scrutinize a country's ability to handle climate-related disruptions.

He highlighted that Malaysia is already seen as resilient internationally, ranking second in ASEAN after Singapore, but stressed the requirement for more robust data to substantiate this claim. Faiz noted that climate tipping points could disrupt supply chains, commodities, insurance, credit, and asset pricing across markets. Moreover, he cautioned about the potential impact of a Super El Nino on labor productivity in ASEAN, beyond the usual effects of drought and haze.

The SC is actively working to bolster Malaysia's climate finance ecosystem, with the JC3 Climate Data Catalogue being a recent milestone, expanding data availability to 186 items and achieving 82% overall data coverage in 2025. This improved data availability will aid in the adoption and disclosure of sustainability reporting in Malaysia, a strategic pillar under the SC's Capital Market Masterplan 2026-2030, aiming to mobilize RM90 billion to RM100 billion in financing over the next five years.

Faiz outlined that the SC is aligning with international sustainability reporting standards to enable companies to present their climate and sustainability efforts in a manner recognized by global investors. However, he cautioned that companies must ensure that forward-looking statements are substantiated by proper basis and processes, as they could be utilized by aggrieved parties to support litigation.