
What We’re Reading
December 2024 Edition
December 2024 Edition
A monthly round-up of what the ICMR team is reading, watching, and listening to. Recommendations are based on what the team finds interesting or thought-provoking, and are not representative of ICMR’s views.
“Mixed Signals: How Incentives Really Work” by Uri Gneezy
This book describes how incentives can sometimes send mixed signals, resulting in a different outcome than intended. For example, inspiring innovation and risk -taking but punishing failure or encouraging quality but rewarding quantity, or encouraging long-term goals but rewarding short-term successes. As powerful incentives can be, they should not be the only consideration in policy design.
City Competitiveness Redefined: which cities will thrive in the era of climate change?
Source: Arup
This report introduces a new framework for evaluating city competitiveness beyond traditional economic metrics, but also environmental and social factors that make up a city’s “loveability” (as opposed to liveability). The full report goes into the details about the new metrics of success for a city as climate change and ageing populations take centre stage, but for an in-depth conversation about what this report’s findings mean for Kuala Lumpur I highly recommend also listening to the BFM podcast discussing this report with Arup’s Malaysia Lead for Cities and Advisory.
KPMG report on MiFIDII: The Need to Improve Suitability Assessments
Source: KPMG
The KPMG report on MiFID II suitability assessments highlights critical shortcomings in how investment firms align their practices with client-centric suitability requirements. Key findings include over-reliance on clients’ self-assessments, insufficient consideration of vulnerable clients, generic and overly standardized suitability reports, and inadequate controls over exception processes. The report emphasizes the need for a comprehensive, tailored approach to suitability assessments that incorporates thorough client evaluations, personalized disclosures, and robust oversight. By addressing these gaps, firms can better meet regulatory expectations and enhance investor protection.
Mobilizing financial sector support for a just transition
Source: International Labour Organization (ILO)
Discussion at COP29 on what role the financial sector plays in supporting the movement towards a just transition.
Gen Z and Millennials are ‘doom spending’ their way to a life of debt unless they make 4 changes
Source: Fortune
In spite of a lack of short-term savings, 37% of Gen Z and 39% of Millennials admitted to practicing doom spending in response to worries over inflation, the cost of living, foreign affairs and the election. The article briefly explores means of reducing the impact of doom spending by managing stress via other more productive means and creating barriers to accessing funds.
Bitcoin’s recent surge to $100,000
Bitcoin’s recent surge past $100,000 reflects market optimism toward President-elect Donald Trump’s pro-cryptocurrency stance. Among Trump’s campaign promises include making the U.S. the “crypto capital of the planet” and establishing a strategic national Bitcoin reserve. Combined with the anticipated appointment of Paul Atkins (a well-known crypto advocate) to lead the Securities and Exchange Commission (SEC), this further suggests a regulatory environment favorable to digital assets. However, this rapid appreciation of cryptos like Bitcoin raises concerns about potential market volatility, as they are typically prone to speculation.
Older Adults Want to Age-in-Place, But Many Don’t Expect They’ll Be Able To
Source: AARP
Despite the strong preference of older adults to age in place rather than move to care facilities, the AARP survey reveals that many doubt their homes and communities will adequately support them as they age. Barriers to ageing in place include limitations in housing design and safety features, high maintenance costs, inadequate community infrastructure, and poor accessibility to essential resources.
While most adults believe their current communities meet their needs today, they are concerned that these communities may not accommodate their changing needs and preferences as they grow older. This article is particularly relevant in the context of Malaysia’s rapidly ageing population – raising concerns on the readiness of the people to age safely at home with accessible and affordable care services and infrastructure.