AGP Executive Report

Digital Governance Crackdown: MDEC moved to revoke NSO Malaysia Sdn Bhd’s Malaysia Digital status after Iskandar Puteri City Council revoked its business licence and ordered a cease of operations from July 22, amid allegations online about foreign links and crypto-related influence. Corporate Restructuring: Ajinomoto (Malaysia) Berhad’s board agreed to table a selective capital reduction and repayment (SCR) plan at an EGM, paving the way for Ajinomoto Co to privatise the firm via a RM603.41m cash repayment. Industrial Policy & Trade: MITI said Malaysia will intensify engagement to blunt the impact of US unilateral trade measures on semiconductors and E&E, while pushing the National Semiconductor Strategy to build a higher-value tech hub. SME Financing Boost: MITI and the Securities Commission launched a Smart Manufacturing scheme under NIMP CoSIF, raising co-investment ratios to help SMEs and mid-tier firms fund automation and digitalisation. Infrastructure Push: The ECRL is projected to add RM80–RM90b to GDP by 2047 through 21 economic accelerator projects and logistics hubs. AI Adoption Reality Check: Adyen’s survey found 74% of Malaysians use AI for shopping, but 52% are still uneasy about letting AI complete purchases.

AI & Retail Trust: Adyen’s Malaysia Retail Report says 74% of Malaysians use AI for shopping, but 52% still don’t trust it to complete purchases—security and payment errors are key blockers. Digital Regulation Push: Malaysia’s IRC 2026 kicks off with a focus on online safety, platform accountability, and building trust, privacy and consumer rights as AI reshapes digital life. Cybercrime Law Moves Closer: The Cybercrimes Bill 2026 is nearing finalisation after passing the Dewan Negara, replacing the 1997 Computer Crimes Act as online fraud charges rise. Economy Watch: DOSM estimates Malaysia grew 5.8% in Q2 2026, led by services, manufacturing, mining and construction, while agriculture contracted. Talent for Data Centres & AI: Human Resources officials say AI, cloud and hyperscale data centres are raising demand for ICT talent, with skills development framed as the real bottleneck. Local Governance & Enforcement: Johor backs action to revoke Network School’s licence at Forest City and order it to cease operations, while Immigration steps up enforcement against misuse of social visit passes. Business Expansion: Hyrax Oil signs deals to expand transformer fluids and technical services across Thailand, Cambodia, Laos, Myanmar and Vietnam. Auto Sector: MAA lifts 2026 TIV forecast to 800,000 units, citing stronger demand and growth in EVs and hybrids.

Malaysia-UK Ties: PM Anwar congratulated UK PM Andy Burnham and pledged to deepen the Malaysia-UK Strategic Partnership, including a Digital Trade Agreement and cooperation on AI, digitalisation, clean energy and defence. ASEAN Diplomacy: China’s FM Wang Yi will attend the 59th ASEAN Foreign Ministers’ Meeting in Manila, with Beijing reiterating support for ASEAN centrality as West Asia and South China Sea tensions stay in focus. State Election Watch: Pakatan Harapan unveiled its Negeri Sembilan manifesto “Negeri Sembilan Kekal Harapan” with 10 commitments ranging from affordable homes and jobs to education, healthcare, tourism and agriculture modernisation. E-waste Crackdown: Malaysia is enforcing an absolute e-waste import ban, stepping up customs checks and turning back misdeclared shipments, while recyclers warn illegal incineration near ports persists. Skills & Industry: MARA and Schneider Electric Malaysia launched the MARA-SWITCHPRO Apprenticeship Programme to train skilled electrical workers with industry placements and salary prospects up to RM5,000. EV Market Move: BYD Sime Motors rolled out “BYD Certified,” its official certified pre-owned EV programme, with inspections, battery health checks, warranty and financing support. Trade Outlook: RHB Investment Bank lifted Malaysia’s 2026 export growth forecast to 21.7% on stronger E&E performance and a wider trade surplus, while flagging risks from geopolitics and high oil prices. Cybercrime Push: Deputy PM Ahmad Zahid said online fraud charges rose to 8,014 as of May and urged a comprehensive Cyber Crime Bill 2026 to strengthen enforcement. Air Connectivity: Sarawak’s AirBorneo began its first jet operations on the Kuching–Kuala Lumpur route, positioning the airline as a logistics bridge to support Sarawak’s investment ambitions.

Trade & Growth Watch: Malaysia’s June trade surged 44.7% y/y to RM340.9b, with exports up 45.4% and imports up 43.9%, lifting the trade surplus 64.9% to RM14.9b for the 74th straight month of surplus since May 2020. Exports Outlook: RHB Investment Bank raised 2026 export growth to 21.7% (from 15.3%), citing stronger year-to-date exports, E&E momentum, and a bigger 2Q trade surplus. Cybersecurity & Fraud: Deputy PM Ahmad Zahid said online fraud charges hit 8,014 as of May, exceeding 2025’s 6,140, pushing for a comprehensive Cyber Crime Bill 2026 to better tackle modern, AI-enabled threats. Digital Skills for Rural Malaysia: MCMC rolled out “1Prompt Engineer, 1NADI” to train AI prompt engineers at NADI centres nationwide to boost safe AI adoption and reduce misuse. Data Centres Funding Crunch: S&P warned Malaysia’s data-centre build is entering a “reset mode,” with a US$20b funding gap and bank limits likely to force alternative capital sources. Energy & Geopolitics: Malaysia is monitoring West Asia tensions after US-Iran conflict reignited, with risks of higher oil prices feeding into production costs and goods prices. Aviation & Connectivity: AirBorneo began its first jet service, launching Kuching–Kuala Lumpur flights twice daily. Corporate Moves: MN Holdings got SC approval to transfer from ACE to Bursa Malaysia’s Main Market. Retail Expansion: 7-Eleven opened its 1,000th CAFé outlet at KLIA Terminal 1, expanding grab-and-go food and coffee for travellers.

Capital Markets: Malaysia’s IPO market reportedly ground to a halt in the first half of 2026, with zero IPO proceeds and deal volume locally, while the region raised $3.07b—Malaysia still led regional listings by count and value in 1H 2025. Industrial Power for Data Centres: Aurora Pacific Economic Zone (APECO) is in advanced talks with a major power utility to secure reliable electricity for Casiguran data centres, aiming to unlock investment despite current grid limits. Critical Minerals Scrutiny: Malaysia has launched a parliamentary-led probe into Lynas’ US$96m supply deal with the US DoD, focusing on end-use and alignment with Malaysia’s strategic mineral guidelines. Rare Earth Geopolitics: China is extending its footprint into Malaysia and Indonesia to secure control over the rare earths supply chain. SME Finance: MBSB Bank and NCIA ink an MoU to provide up to RM1b financing for SMEs. Anti-Graft: Malaysia’s anti-corruption agency opens an investigation into losses linked to Kwap’s failed eFishery investment. Human Trafficking Crackdown: Penang police uncovered a human trafficking and exploitation syndicate in Bukit Mertajam; Bukit Mertajam MP Steven Sim calls for a thorough probe. Education & Inclusion: UMPSA says welfare support for underprivileged students remains a priority, including scholarships and incentives for B40 TVET diploma students. EV Battery Push: ASEAN shifts focus toward battery manufacturing and scaling EV adoption, with Malaysia hosting key industry discussions. Regional Business Climate: Grab CFO Peter Oey sells 50,000 shares, as the super-app continues expanding across Southeast Asia.

Malaysia Economy Watch: Prime Minister Anwar Ibrahim said Malaysia’s Q2 2026 GDP grew 5.8% (vs 5.4% in Q1), citing MADANI reforms as helping the economy stay resilient despite geopolitics and supply-chain disruptions. Inflation & Rates Context: DOSM reported June inflation at 1.9% as transport slowdown tempered costs, while market chatter points to tighter liquidity as rate-hike bets grow. Energy Security Debate: Malaysia is set to study a national petroleum reserve, but an economist warned it should be part of a wider economic security plan covering food, critical minerals, semiconductors and digital infrastructure. Anti-Corruption Probe: MACC opened an investigation into KWAP’s losses tied to eFishery, after the Indonesian agritech scandal. Cyber & Rural Safety: MCMC stepped up rural online safety efforts in Sabah, targeting scams and safer e-commerce. Trade & Compliance: Malaysia urged durian exporters to stick to China’s phytosanitary protocol, warning against unapproved “pre-cut” methods. Business & Community: Penang’s Catsoterra expanded TNR sterilisation to curb stray cat breeding, while Negeri Sembilan election coverage highlighted local economic and infrastructure priorities for Orang Asli communities.

Malaysia GDP & inflation watch: Prime Minister Anwar said Malaysia’s economy grew 5.8% in Q2 2026, beating forecasts, while DOSM data showed inflation quickened to 1.9% in Q2 (up from 1.6%), driven by higher transport, insurance and financial services costs. Ringgit outlook: Bank Muamalat expects the ringgit to trade at RM4.06–RM4.08 next week amid cautious sentiment and West Asia-driven oil risks. Public healthcare hiring push: JPA approved 66,312 new MOH non-trade-off posts (RM6.7bn) to expand facilities and strengthen career pathways for doctors, dentists and pharmacists. Cyber safety drive: MCMC rolled out a Community Safe Internet Campaign Carnival in rural Sook, training residents on scam prevention and safe e-commerce, with support from PDRM and Bank Negara. Johor enforcement on Network School: Johor’s MBIP issued a stop-business notice over licence and premises-use breaches tied to Forest City operations, with potential licence revocation if violations are confirmed. Trade & compliance: Durian exporters were urged to stick to China’s phytosanitary protocol to protect market access. Business expansion signals: Fujifilm said Malaysia is its Asia-Pacific shared services hub and it’s exploring new ventures, JVs and M&A as digitalisation grows. Healthcare manufacturing: Biocon Malaysia received EMA approval for a new Semglee insulin fill-finish line to supply Europe. Consumer & retail: Coway Malaysia launched its first refrigerator series for its 20th anniversary, while Laifen expanded in the US via Costco. Regional tech momentum: A summit in Bangkok focused on broadband evolution for the AI era, bringing regulators and operators together.

Macro Watch: Malaysia’s Q2 inflation quickened to 1.9% (from 1.6%), led by higher insurance/financial services and transport costs, while headline inflation eased slightly in June. Growth Pulse: DOSM’s advance estimate puts Malaysia’s Q2 GDP growth at 5.8%, with services leading and manufacturing rebounding, alongside a strong mining rebound. Ringgit & Rates: The ringgit is expected to trade at RM4.06–RM4.08 next week as markets stay cautious ahead of China’s loan prime rate and ECB decisions, with West Asia risks keeping oil-linked inflation concerns alive. Healthcare Spending: Putrajaya approved 66,312 new non-trade-off MOH posts worth RM6.7b to expand facilities and strengthen medical officer, dental officer and pharmacist pathways. Johor Enforcement: Johor authorities moved against Network School in Forest City, citing licence and premises misuse; MBIP issued a stop-business notice and Johor signalled possible licence revocation if breaches are confirmed. Tech & Industry: Fujifilm says it wants to grow its Malaysia solutions business via ventures and M&A as digital transformation accelerates. Consumer & Business: Apple Music raised prices in Malaysia (Individual RM17.90/month; Family RM27.90), citing higher licensing costs. Energy/Trade Risk: Taiwan is reviewing PNG gas imports after PNG ordered closure of Taipei’s office, with LNG volumes including Malaysia as a key market. SME Financing: MBSB Bank and NCIA inked an MoU to provide up to RM1b financing for SMEs.

Malaysia’s Growth Resilience: Prime Minister Anwar Ibrahim said Malaysia’s Q2 2026 GDP growth of 5.8% (with inflation easing to 1.9% in June) shows the economy is holding up despite global uncertainty, while warning many Malaysians and MSMEs still feel the pinch. SME Financing Push: MBSB Bank and NCIA signed an MoU for up to RM1 billion in financing to help export-oriented SMEs scale in the Northern Corridor. Bumiputera Startup Shift: Economy Minister Akmal Nasrullah urged TERAJU to act as a growth facilitator, focusing on revenue, jobs, governance and market access—not just programmes. Solar & Energy Transition: Gentari deployed a 3.1MWp solar PV system at KLIA2, and PETRA announced LSS6 with 2,500MW solar plus 1,250MW battery storage (and 150MW reserved for Bumiputera firms). Digital Economy & Data Governance: DOSM is stepping up preparations for the Statistics Bill 2026, while Penang hit 99.4% cashless transactions in the Cashless Boleh 5.0 public-sector push. Local Enforcement in Tech: Johor’s Iskandar Puteri council issued a stop-business notice against Network School premises in Forest City over licence and permitted-use breaches. Global Risk Watch: Malaysia said it will closely monitor Iran-US conflict to protect oil supply as Strait of Hormuz disruptions lift crude prices.

GDP Momentum: Malaysia’s economy grew 5.8% in Q2 2026, up from 5.4% in Q1, with services, manufacturing, mining and construction supporting the expansion while agriculture contracted. Inflation Watch: June inflation eased to 1.9% (from 2.0% in May), mainly due to slower transport costs. Market Pulse: Bursa Malaysia edged higher midday as investors digested the stronger GDP print. Port Governance: Transport Minister Anthony Loke said Putrajaya doesn’t interfere in port management appointments as long as Malaysians keep at least 51% ownership. National Trust Fund Reform: The National Trust Fund Bill 2026 passed in Dewan Rakyat to strengthen KWAN as an intergenerational savings vehicle, with Bank Negara Malaysia managing the transition. Crypto Compliance: Finance Ministry reiterated Binance is not licensed in Malaysia and access remains blocked. Tech Community Scrutiny: Malaysia said it will deport Israelis found in the country amid investigations into the Network School in Forest City, Johor. Rare Earths Oversight: A Malaysian parliamentary group reviewed Lynas Rare Earths’ $96m Pentagon supply deal, weighing strategic and reputational risks. Payments for Tourism: MOF reported foreign tourist QR transactions via Alipay+ in Malaysia jumped 89.6% to RM824m in 2025. Bioeconomy Linkups: Bioeconomy Corporation helped Sarawak bio-based firms secure partnerships at BIO Asia-Taiwan, including BSF feed and fertiliser supply deals.

Statistics Bill 2026: Malaysia’s Dewan Rakyat passed the Statistics Bill 2026 to modernise the national data ecosystem, replacing the 1965 Statistics Act and setting up a National Statistics Council for more coordinated, credible policymaking. Public Finance Accountability: The Ministry of Finance said Asset Recovery Trust Account funds are used only under the approved Trust Directive to cover operating costs and repay 1MDB and SRC debts, rejecting misuse allegations. Infrastructure Resilience: Works Ministry will shift to proactive, risk-based infrastructure planning, citing a RM10.4m slope repair project on the Lojing–Gua Musang road to cut landslide and debris-flow risks. Energy Security Debate: An economist backs a phased, fiscally prudent approach to any national petroleum reserve stock, arguing the right size matters more than copying US/Japan models. Critical Minerals Shock: The IEA warned China’s rare-earth export curbs could endanger US$6.5tn of downstream production, with US and Europe hit hardest. AI in Industry: Tridiagonal.ai and IBM are partnering with PETRONAS Carigali to advance TriCipta AI for upstream optimisation, maintenance reliability and asset integrity workflows. Trade & Food Security: Malaysia is discussing Thailand shrimp restrictions and livestock market access, while FAMA targets RM500,000 in potential sales at MIFB 2026 via contract farming entrepreneurs. Banking & AI Trust: A survey found Malaysian banks use AI for fraud and onboarding, but only about a quarter trust AI outputs enough to act on them. Ports Leadership: Reuters reports former DP World boss Sultan Ahmed Bin Sulayem will take charge of MMC Port Holdings as CEO steps down.

Transport & Cross-Border Trade: Kuala Lumpur’s new LaLaport Transportation Hub targets up to 10,000 passengers a day and is built to make switching between rail, buses and other modes easier, reinforcing KL’s role as a gateway to Singapore. Johor-Singapore Rail Impact: A study says the 2027 RTS Link could add S$1.05b in annual spending into Johor and S$756m into Singapore, pushing retailers and F&B to compete on offerings, not just price. Policy & Fiscal Moves: Malaysia refunded RM14.7b in excess tax payments to 3.17m cases as of June 30, 2026, with priority for MSMEs and cash-flow-stressed firms. Wealth Tax Stance: The Finance Ministry says there are no plans to impose a 2% wealth tax for now, citing a limited tax base and the need for targeted, progressive policy. Healthcare Coverage: The MediAsas (MHIT) plan will start a pilot by end-July, aiming for nationwide rollout in Jan 2027 to tackle rising private healthcare costs. Data Centres & Utilities: Putrajaya says data centre approvals will be tied to sufficient power and water capacity, with water prioritised for residents first. Energy Procurement: PETRA unveiled LSS6 plans for 2.5GW solar plus 1.25GW BESS, split into lots including Bumiputera-focused participation. Governance & Subsidies: PAC calls for an overhaul of cooking oil subsidy management after finding weak targeting and leakage of subsidised oil. Finance Markets Innovation: Cagamas executed Malaysia’s first MYOR-i-referenced MYOR-i sukuk and MYOR-i IPRS, supporting transaction-based benchmark development. Legal & Business Risk: High Court hears KCJ Engineering’s RM800,000 2022 donations to Bersatu were linked to a Jana Wibawa project, as Muhyiddin’s trial continues.

Wealth Tax Debate: Malaysia’s Finance Ministry says it has no plans to introduce a 2% wealth tax, arguing the yield would be limited given exemptions and Malaysia’s small tax base, while pointing to a more targeted approach via capital gains tax on unlisted shares and higher dividend/profit distribution taxes above RM100,000. Tax Refunds: The government refunded RM14.7bn in excess tax payments to 3.17m cases as of June 30, prioritising MSMEs and firms facing cash-flow issues. Digital Policy Push: The Dewan Rakyat passed the MCMC (Amendment) Bill 2026, including rules on chairman eligibility and a higher contract limit for the regulator. Digital Infrastructure & Safety: The Communications Ministry highlighted progress under JENDELA and NADI hubs, plus stronger online safety and social media regulation efforts. Statistics Leadership: Siti Asiah Ahmad was appointed Malaysia’s chief statistician, replacing Mohd Uzir Mahidin, to lead key national economic and trade statistics. Energy Security Plan: PM Anwar said Malaysia will study a national petroleum reserve stock to boost resilience amid global supply risks. Agribusiness Logistics: Malaysia is exploring an overland durian export route to China to ease a domestic supply glut, pending legal and phytosanitary checks. SME Talent Pressure: SAMENTA urged a review of new Employment Pass rules after higher salary thresholds made it harder for SMEs to hire specialised foreign talent. Local Enforcement: Shah Alam City Council disposed of RM800,000 worth of seized crypto mining equipment, targeting illegal mining linked to electricity theft. Regional Water Watch: Penang said details of the Perak-Penang treated water agreement will be disclosed only after Bursa Malaysia notification.

Malaysia Economy Outlook: Hong Leong Investment Bank raised Malaysia’s 2026 GDP growth forecast to 4.7% on stronger E&E exports and resilient global semiconductor demand, though it expects a softer 2H2026. Healthcare Workforce: Malaysia’s public sector saw 3,511 medical officer resignations from 2023-2025, with the Health Ministry saying it lacks legal tools to stop doctors leaving for private care. Subsidies & Fuel Stability: Deputy Finance Minister Liew Chin Tong said Putrajaya won’t cut existing subsidies despite a projected ~RM40bil petroleum subsidy bill, citing BUDI95’s fixed-price and quota protection. Sukuk Market: S&P Global said Malaysia drove global sukuk growth in 1H2026, with local-currency issuance offsetting weaker GCC volumes. Johor Security & Immigration: Authorities are investigating the “Network School” in Forest City after allegations involving Israeli nationals; Forest City and the Immigration Department say checks found valid documents but probes continue. Sarawak Digital & Industry: Demanlink plans to expand 5G across Sarawak after launching BCCK’s first live in-building coverage, while Sarawak will host BAGFEST 2026 and build a RM70mil pineapple processing factory in Tukau. Corporate/Legal: A High Court ruling said strata buyers at court auctions aren’t automatically liable for maintenance and sinking fund arrears from previous owners. Investment Pipeline: Malaysia approved 2,688 manufacturing projects (RM318.5bil) from 2023 to March 2026, realising 210,546 jobs.

M&A & Capital Markets: Epicon is set to buy a 60% stake in Rantau Urusan and LPB Construction for RM543.16m, via new share issuance and redeemable convertible preference shares, alongside a private placement. Social Policy: The Dewan Rakyat passed the Social Work Profession Bill 2026, creating a Malaysian Social Work Profession Council and setting staged registration rules for private-sector practitioners. Trade & Logistics: Malaysia’s Transport Ministry was told to discuss border-port usage with Thailand, including Penang and new border corridors, to boost logistics and infrastructure spillovers. Energy & Commodities: Palm olein futures rose again on stronger rival edible oils and crude, while Malaysia and Thailand moved toward a technical fix for shrimp and sea bass trade frictions. Market Pulse: Malaysia led Southeast Asia’s IPO market in 1H 2026 by funds raised and deal count, with Deloitte citing a shift toward larger, higher-quality listings. Policy & Risk: Court of Appeal upheld an SC insider-trading ruling against former WCT figures, keeping RM5.83m penalties intact. Infrastructure & Public Services: Sabah’s RM1.5b interim special grant won’t cut its federal allocation ceiling, says the deputy finance minister. Business Events: Food & Drinks Malaysia (FDM2026) runs July 21-23, positioning Malaysia as an ASEAN food and beverage hub with “one pass, two shows” including Chocolate Show 2026.

Malaysia–Thailand BEZ & border logistics: PM Anwar said the Malaysia–Thailand Border Economic Zone will ease Thai customs requirements, giving Malaysian fisheries and agricultural goods wider access to Laos, Cambodia and Vietnam, with transport and port use (including Sanglang and Perlis Inland Port) also on the agenda. Dewan Rakyat focus: MPs will also press Putrajaya on the Strait of Hormuz’s impact on Malaysia’s political and economic stability and on measures to curb illegal highway racing. Immigration & security probe: Malaysia is investigating Network School in Forest City after allegations that Israelis entered using dual-citizenship passports; Johor’s MB ordered federal agencies to verify identities, travel documents and compliance with local licensing and land rules. Healthcare digitisation: The Health Ministry will pilot AI to automate doctors’ clinical documentation at selected hospitals before scaling up. Social protection tweak: LINDUNG 24/7 SOCSO contributions are now voluntary for local workers, but remain mandatory for foreign workers. Housing policy push: REHDA urged integrated, data-driven planning (with AI/digital twins) to match housing supply to real demand and affordability. Aviation sustainability: AirAsia named its sustainability chief Yap Mun Ching as an ICAO Global Ambassador. Corporate/markets: Dialog Group remains a “buy” for resilience amid West Asia risks; United Asiapac Energy inked an underwriting deal for an ACE Market IPO; and Insights Analytics got coverage with a buy call tied to its digital twin platform.