Affin Hwang Capital Conference Series 2017

Opportunities Amidst Geopolitical Shifts

05 October 2017

Royale Chulan Kuala Lumpur
08:30 — 17:00

2017 has witnessed a strong economic upswing, lifting also global asset markets in the regional countries, including Malaysia. However, going into 2018, investors are faced with powerful cross-currents and a challenging global investment environment due to uncertainties from the geopolitical perspectives.

The conference seeks to examine the realities of the economic ‘boom’ and ‘global geopolitical’ bust through insightful presentations and engaging panel discussions to achieve a more informed view on future market risks and opportunities.

SIDC CPE accredited: 10 CPE Points

Conference Session

Taming Sari Grand Ballroom
Ground Floor, Royale Chulan Kuala Lumpur

8:30 am

Delegate arrival and registration.

9:00 am

Welcome Address
Datuk Maimoonah Hussain
Group Managing Director, Affin Hwang Investment Bank Berhad

9:15 am

Special Address - Sustaining Positive and Rising Net FDI Into Malaysia
YB Dato’ Sri Mustapa bin Mohamed
Minister of International Trade and Industry (MITI)

10:00 am

Presentation - Economic ‘Boom’ vs. Geopolitical ‘Bust’ – Risks and Opportunities

This year, three key themes have dominated the investment outlook: (1) the upturn in the global economic cycle (2) the downturn in the geopolitical cycle, and (3) fiscal policy turning the corner. Political risks have largely been overwhelmed the economic upturn, benefiting Malaysian and global asset markets. Looking forward, we see both political and economic risks, including the gradual reduction of G3 monetary policy accommodation, increasing US-Asia trade tensions and rising risks on the Korean peninsula. China’s 19th Party Congress will also be a significant swing factor in how growth and investment returns perform in 2018. In this speech, we examine the risks and look for the opportunities. 

Presenter
Callum Henderson 
Managing Director, Global Markets, Asia Pacific for Eurasia Group

10:30 am

Presentation - The Great Infrastructure Game in ASEAN 

Major powers in Asia are increasingly competing for influence in Southeast Asia through the prism of infrastructure, largely to the benefit of the region. How will these trends evolve? What impact will the AIIB and Belt and Road Initiative have? Will financing and other constraints and political concerns in host countries mean there is an increasingly large gap between Chinese promises and delivery when it comes to infrastructure projects in Malaysia and elsewhere in SE Asia? 

ASEAN countries are also increasingly looking to draw in private sector finance to help fulfill their ambitious infrastructure plans. Which countries have the strongest political will behind PPPs? What are the institutional/political challenges in rolling out PPPs?

Presenter
Peter Mumford 
Director, SE Asia for Eurasia Group

11:00 am

Panel Discussion - Malaysia’s Rail Expansion To Drive Economic Growth

Moderator
Loong Chee Wai
Senior Assistant Director, Affin Hwang Investment Bank Berhad

Panel Members

  • Francis Hutchinson
    Senior Fellow, Institute of Southeast Asian Studies
  • Darwis Abdul Razak 
    Chief Executive Officer, Malaysia Rail Link Sdn Bhd
12:00 noon

Panel Discussion - Emergence of Fintech: Disrupting the Financial System?

Within the financial services industry, digital technology has been dis-intermediating financial institutions for over a decade, with online stockbroking and online insurance. What's happening now is an acceleration of this disintermediation because of the rapid adoption of mobile phones by users and the advancements of core technologies like artificial intelligence/machine learning, advancements in software design that make integration with core legacy systems easier, to IOT that offer much richer data points not previously available.

Fintech start-ups are taking on very small slivers of traditional financial institutions, but building scale through rapid expansion across multiple countries. This is most evident in the payments and e-wallet vertical, lead generation and customer acquisition, and in the provisioning of non-traditional balance-sheet lending from peer-to-peer lending and crowdfunding. Will traditional financial institutions able to capitalize on digital technologies to transform their businesses and stay ahead of the game if they are willing to adopt non-traditional growth strategies and partnerships with complementary Fintech start-ups.

Examples of strategies adopted by financial institutions pursuing both organic digital strategies (e.g. DBS's digital bank) and collaborative strategies (e.g., Insurance companies and Katsana).

Moderator
Reno Sio
Director, Asia Pacific for Eurasia Group

Panel Members

  • Azran Osman Rani
    Chief Executive Officer, iflix Malaysia
  • Ruben Tan 
    Chief Technology Officer of Neuroware (a US Delaware Incorporated company)
1:00 pm

Special Lunch Session - How to Mend a Broken Heart

Presenter
Dr. Haizal Haron Kamar 
Consultant Cardiologist and Physician, Tropicana Medical Centre 

2:00 pm

Panel Discussion - Examining Malaysia's Political Dynamics and Economic Policies Ahead of GE14

Moderator
Dr. Maszlee Malik 
International Islamic University of Malaysia

Panel Members

  • Wan Saiful Wan Jan 
    Chief Executive of the Institute for Democracy and Economic Affairs (IDEAS)
  • Ibrahim Suffian
    Co-founder and Program Director at Merdeka Center

Breakout Sessions

Sri Bendahara I, Sri Bendahara II, Sri Panglima II 
Level 1, Royale Chulan Kuala Lumpur

3:00 pm

Breakout Session 1

Sri Bendahara I
Ringgit and Domestic vs. International Asset Allocation

Presenter
Callum Henderson
Managing Director, Global Markets, Asia Pacific for Eurasia Group

Sri Bendahara II
Financial Integration in ASEAN

Presenter
Peter Mumford
Director, SE Asia for Eurasia Group

Sri Panglima II
Blockchains Demystified

Presenter
Ruben Tan
Chief Technology Officer, Neuroware (a US Delaware Incorporated company)

4:00 pm

Breakout Session 2

Sri Bendahara I 
Ringgit and Domestic vs. International Asset Allocation

Presenter
Callum Henderson
Managing Director, Global Markets, Asia Pacific for Eurasia Group

Sri Bendahara II
Political and Economic Dynamics of Malaysia – A Perspective

Presenter
Dr. Maszlee Malik
International Islamic University of Malaysia

Sri Panglima II
Progressing towards a High-Income Nation

Presenter
Dr. Francis E. Hutchinson
Senior Fellow, Institute of Southeast Asian Studies

5:00 pm

End

2017 has witnessed a strong economic upswing, lifting global asset markets in its wake. China’s economy saw faster growth in the first half, while the US also rebounded after a pause ahead of the US election. Even the euro area has picked up, helped by negative interest rates and quantitative easing. In the wake of this economic strength, global markets have been boosted, across developed and emerging markets.

By contrast, from a political perspective, Eurasia Group called 2017 the year of geopolitical recession, of ‘G-zero’ where no country is in charge and many are seeking divergent paths. In the wake of the 2016 political upsets in the form of Brexit and Trump, UK and US politics remain in turmoil. In Europe, populist forces may have been defeated in the Netherlands and France, but are rising in Poland and Hungary. Turning to Asia, long-held nationalist sentiments appear to be merging with new-found grievances over income inequality to create important new political trends.

On the policy side, monetary easing appears to have run its course and indeed central bankers are increasingly looking to withdraw some of that extraordinary accommodation. Instead, policymakers are turning to fiscal policy, both as a means of reform and to support growth.

Looking ahead, Malaysian investors are faced with powerful cross-currents and a challenging investment environment. In this speech, we seek to examine the realities of the economic ‘boom’ and ‘geopolitical’ bust in order to achieve a more informed view on future market risks and opportunities.

Disclaimer: Comments & recommendations highlighted in the seminar rely on the individual opinions of the ones providing the comments & recommendations. These opinions may not fit to your financial status, risk & return preferences & hence an independent evaluation is essential. Investors are advised to independently evaluate particular investments and strategies & to seek independent financial, legal & other advice on the information and/or opinion contained in the seminar before investing & participating in any of the securities or investment strategies & transactions.