AGP Executive Report

G7 & Energy Security: Prime Minister Mark Carney says Canada is ready to help restore shipping in the Strait of Hormuz if U.S.-Iran talks deliver on an announced breakthrough, as leaders push for rapid implementation to stabilise global energy flows. Malaysia Banking: Malaysia’s interbank ATM cash withdrawal fee will be waived from July 1, 2026, letting debit cardholders withdraw unlimited free cash at over 14,000 ATMs/SRMs nationwide. Palm Oil Watch: Malaysian palm futures were mostly flat to lower, tracking weaker crude and rival edible oils after the U.S.-Iran deal lifted sentiment around energy flows. Digital Economy & Payments: Asia-Pacific cross-border payments are set to nearly double to about $23.8t by 2032, but settlement rails remain too slow and costly for the growing volume. Startup Acceleration: Selangor’s Sidec launched the Selangor Triple Accelerator Programme 2026, adding a Token-X track for digital assets, blockchain and Web3. Women in Business & Politics: Penang reported 81% progress toward its women entrepreneurship target and said Penang PH aims to field more women candidates, though candidate supply remains a hurdle. Sustainable Bioenergy: Bioeconomy Corp and South Korea’s K-Eco signed an MoU to boost biogas and carbon neutrality cooperation. Media & Youth Safety: The UK moves to ban under-16s from social media, joining a growing list of countries tightening age controls—an issue Malaysia is also watching closely. Markets: Bursa Malaysia ended the morning session higher, supported by regional risk appetite after the U.S.-Iran peace deal.

Banking Access: Malaysia’s bank associations say debit cardholders can withdraw cash at any local bank ATM or SRM from July 1, 2026, with the RM1 interbank fee waived for unlimited free withdrawals at 14,000+ machines nationwide. Macro & Inflation Watch: Economy Minister Akmal Nasrullah says inflation is expected to stay within 1.5%–2.5% in 2026 despite energy-supply shocks, with Q1 growth at 5.4% and inflation at 1.9%. Energy & Oil Markets: Putrajaya warns any US-Iran peace deal won’t quickly restore oil flows, as repairs and clearing routes around the Strait of Hormuz will take time—keeping cost pressures in focus. Digital Economy Push: Selangor’s Sidec launches the Selangor Triple Accelerator Programme 2026, adding a Token-X track for digital assets, blockchain and Web3 alongside Deep-X and Retail-X. Data Centres & Power: Regulators across Asia-Pacific are tightening rules for data centres as grid constraints rise, pushing developers toward storage, curtailment planning and cleaner power procurement. Healthcare Integrity & Rumours: Johor authorities deny claims Segamat Hospital will shut from July 1, saying services will continue as normal. Women & Entrepreneurship in Penang: Penang reports 81% progress toward its women entrepreneurship target under Penang2030, while Penang PH reiterates its aspiration for 30% women participation in politics. Biogas & Carbon Neutrality: Bioeconomy Corp and South Korea’s K-Eco sign an MoU to boost biogas development and carbon-neutral initiatives through knowledge sharing and project collaboration. Market Pulse: Bursa Malaysia’s KLCI rose in the morning session, tracking a regional risk-on mood after the US-Iran peace deal headlines.

Semiconductor Push: Malaysia’s Budget 2026-27 proposes tax breaks for semiconductor and chip design, testing and packaging, including exemptions from regulatory duty, supplementary duty, VAT and advance tax on qualifying raw materials until June 30, 2031, to build a local high-tech ecosystem and skilled jobs. AI & Higher Education: Malaysia’s MQA chief says graduate employability hinges on added skills beyond grades, urging universities to strengthen multilingual, critical thinking and tech-adaptation capabilities as AI literacy becomes a must. Dengue Watch: Health Minister Dzulkefly reports nationwide dengue cases up 20.7% to 33,367 as of June 13, with Sabah rising 50.4% to 2,866, citing a shift in dominant DEN-3 sub-variant and rolling out behaviour-focused Dengue-Free Community (Kombat) efforts. Veterans to New Careers: The Veteran MyWira Programme has benefited 6,000+ serving and former ATM personnel since 2024, with 140+ already placed in sectors like semiconductors and advanced manufacturing, supported by AI-related upskilling. Energy Security & Supplies: The PM’s economic adviser says Malaysia remains well-stocked on fuel, food and essential medicines amid the West Asia conflict, with fuel supply seen as sufficient through July and food security “manageable” for now. Trade & Investment Links: Malaysia and Uzbekistan plan to deepen agri-food cooperation, with agri-food trade at RM338.48m in 2025 and talks on aquaculture, irrigation tech and R&D. Public Services for Entrepreneurs: KUSKOP MADANI Sales (JMK) expands into a one-stop hub with 12 agencies, letting shoppers access EPF, PERKESO, LHDN and welfare-related services alongside discounted essentials. Child Safety Online: Police warn that those accessing or possessing CSAM may face escalation to grooming, sextortion and other serious child sexual offences, with investigations pointing to closed online networks. Global Policy Trend: The UK moves to ban social media use for children under 16, joining regional efforts that tighten online access for minors.

Energy & Deals: Eni and Petronas have launched the 50/50 Searah JV, bundling Indonesia-Malaysia gas assets with an initial output above 300,000 boe/d and a push to exceed 500,000 boe/d within three years. Consumer & Labour Costs: Kenanga Research says rising labour costs are becoming structural for Malaysia’s consumer sector, with labour-related expenses reaching up to ~20% of revenue and firms accelerating automation and supply-chain upgrades. Digital Finance: Security Bank was named by The Asian Banker for mobile banking and payments innovation, citing growth in app users and transaction activity. Public Health: Dengue cases rose 27% nationwide to 33,367 as of June 13, with Sabah up 50.4%, as the health ministry urges behaviour change. Trade Policy: Indonesia imposed antidumping duties on duplex paperboard imports from Korea, Malaysia and Taiwan for 2026-2031. Jobs & Refugees: Malaysia’s Home Ministry says refugee job access will be limited to labour-shortage sectors with high foreign-worker dependency, with strict controls to protect local jobs. Scams & Enforcement: A Miri woman lost RM371,983.67 to a Facebook “share investment” scam, while police warn CSAM users can escalate into grooming and sextortion. Sports & Transition Support: MINDEF allocated RM10m for work-based learning to help about 1,300 nearing-retirement MAF personnel earn diplomas without formal exams. Education & Scholarships: PTPTN BAeK scholarship funding rises to RM210m for 10,000 students from low-income families. Regional Business Push: Fergana Region in Uzbekistan is offering up to 10 years of tax and customs incentives to attract Malaysian investment in manufacturing, pharma, tourism and food processing.

Halal & MSMEs: Halal Development Corporation (HDC) will help 200 companies, especially MSMEs, secure Malaysian Halal Certification this year via the “Jelajah Halal Malaysia” roadshow, with direct advisory from Halal Guidance Officers. Agri-food Traceability: FAMA is rolling out a GPL (Grading, Packing and Labelling) Traceability System, starting with durian as a pilot, to improve transparency and meet export market requirements. Veterans & Livelihoods: UniSZA and YVATM’s MyHero Tani programme is giving Malaysian Armed Forces veterans income opportunities through modern farming, starting with sweet potato projects. Tourism & Heritage: The government will allocate RM8 million to upgrade the Sungai Lembing tunnel to revive tourism in the historic tin-mining town. Social Protection: PERKESO confirmed Perak contributors eligible for medical and income replacement support under the “LINDUNG 24 Jam” scheme after off-the-job accidents. National Unity Funding: Anwar says Budget 2027 may include a RM5 million matching grant to revive 10 statesmen memorials and digitise historical treasures. Poverty Eradication: Mustapa Mohamed urged Labuan’s poverty programmes to move beyond cash aid toward skills and sustainable income. Education Access: About 1,000 post-SPM students joined a Hang Tuah Jaya outreach programme highlighting higher education and TVET pathways. Energy & Infrastructure (Sabah): Anwar backed the Sabah Southern MADANI Link grid project to extend reliable power to interior communities. Climate Risk: El Niño has officially started, with experts warning of potentially very strong and costly economic impacts.

Sabah Power & Energy: Prime Minister Anwar Ibrahim broke ground on the Sabah Southern MADANI Link (SSML), a 330km 275kV grid interconnection expected to be completed by 2028 to balance electricity supply between Sabah’s west and east coasts. Rohingya Policy & Social Media: Home Minister Saifuddin Nasution said UNHCR’s low third-country resettlement rates leave refugees in Malaysia while awaiting placements, amid a viral “Catch Rohingya” campaign. Retail Demand: Retail Group Malaysia reported Malaysia’s retail sales rose 3.7% in Q1 2026, but revised its 2026 growth forecast down to 3.8% as consumer purchasing power weakens. Cost of Living Politics: PH’s Anwar urged Negeri Sembilan voters to renew the mandate, framing the state’s future around workers and small traders. Targeted Subsidies Debate: Former Sabah chief minister Shafie Apdal argued for targeted subsidies over blanket aid to avoid leakages and long-term dependency. Consumer Protection in Sarawak: Sarawak Consumers Association warned of a growing Facebook home-repair scam, with losses running into thousands of ringgit per case. Forced Labour Rules: Activists urged Malaysia to introduce a clear law blocking forced-labour goods after a US probe flagged gaps in Putrajaya’s import controls. Microfinance Push: Agrobank said microfinancing to pasar tani traders nationwide has exceeded RM5 million, with RM2.1 million from recent engagement sessions. Food Tech & Value-Add: UMK researchers developed HPP-based tech to soften terubuk fish bones for safer whole consumption, with patent filings underway.

Bursa Malaysia Watch: The FBM KLCI edged up to 1,683.63 (+0.24%) as investors picked selective blue chips on bargain valuations, though trading stayed subdued amid West Asia and crude oil jitters. Corporate Deals: Scanwolf won a RM21m contract for a nine-storey factory block in Klang, Selangor, with work running June 2026 to June 2027. TMK Chemical proposed to acquire CCM for an indicative RM920m (cash-free, debt-free), with part of the consideration in new TMK shares. Digital Economy & Security: PM Anwar urged more companies to leverage 5G to lift productivity and strengthen Malaysia’s digital economy, while MyDigital ID kiosks are set for facial biometric upgrades and periodic re-verification to curb fraud. Semiconductor Push: Galatek opened a Penang facility (US$2m start, scaling to US$100m in five years) to support AI-enabled manufacturing and semiconductor equipment services. Macro & Industry Outlook: Kenanga IB expects distributive trade growth of 6.1% in 2026, while RHB IB lifted Malaysia’s 2026 IPI growth forecast to 4.9%. Climate & Commodities: Palm futures were choppy as El Niño risks cloud yield expectations, with traders watching export recovery signals. Politics & Economy: Anwar called for a fresh PH mandate in Negeri Sembilan’s state election, linking it to continued investment-led growth and welfare for workers and small traders.

Malaysia Digital Identity Upgrade: MyDigital ID kiosks nationwide will be upgraded with real-time facial biometric verification against NRD data, with periodic re-verification for existing users; kiosk services will be unavailable from 12 June 6am to 14 June 6am, though mobile registration via the MyDigital ID app continues. Tax Digitalisation: LHDN will require all new applications under Subsection 44(6) for institutions/organisations to be submitted via the e-Derma system from 15 June, aiming for faster processing and better document handling (with some categories still manual for now). Markets & Business Sentiment: Bursa Malaysia’s morning session edged up as investors’ risk appetite improved after a Wall Street rebound; FBM KLCI rose to 1,680.97 by 12.30pm. Corporate & Tech Moves: Sharrow announced an ASEAN digital securities strategy, using an institutional EMS trading framework and positioning Malaysia (notably Labuan) as a regional connection point. Energy & Infrastructure: Sarawak Water completed repairs to a damaged 1,100mm pipeline in Miri, with supply restoration expected in stages over the next ~12 hours. Automotive Launches: MG ZS Hybrid+ is previewed at KLIMS 2026 with early bookings open (RM99 fee, RM3,000 rebate, and 3 years’ maintenance), while a Turbo variant is slated later. Politics Watch: Analysts flag upcoming Johor and Negeri Sembilan state polls as a barometer for national support, with UMNO set to face Pakatan Harapan in both states.

Malaysia-Japan Deal Push: PM Anwar’s Japan visit agreed a Malaysia-Japan AI platform, deeper semiconductor and critical-minerals cooperation, and a 20-year Petronas-JERA LNG supply pact—cementing energy and tech ties. Energy Security & LNG: Malaysia also signalled new hydrocarbons cooperation with Turkmenistan, expected to be sealed June 19, as El Niño risks and global supply shocks keep energy resilience on the agenda. Labour Market Snapshot: DOSM reported Malaysia’s unemployment rate returned to 3.0% in April 2026, with 511,800 jobless and employment rising to 16.82m. Higher Education Reform: MOHE said it reviews IPT courses for employability, with new programmes needing MQA evaluation based on industry input. Migration Policy Clarification: KDN stressed Malaysia’s Refugee Registration Document (DPP) is for migration control and security, not citizenship or permanent residence. Public Safety: Police warned the “Piu Piu” synthetic drug found in vape liquids is a reason to ban vapes. 1MDB Fugitive Update: Cyprus ordered seizure of Jho Low’s luxury villa in an AML case, as Singapore says arrest warrants remain active. SME & Islamic Finance Support: YAPEIM contributed RM500,000 to back asnaf entrepreneurs under SME Bank iTEKAD ISHRAF 4.0.

Energy Security & LNG: Petronas signed a 20-year LNG supply deal with Japan’s JERA for 2 million tonnes annually from 2028, reinforcing Malaysia’s role as a “middle power” amid route risks like the Strait of Hormuz. Renewables Risk: Zurich Insurance warned about US$165b of Asean renewable energy assets face climate hazards by 2030, with resilience spending able to cut losses by up to US$82b. Agri-Tech & Fertiliser: Wastech plans a Malaysia-based controlled-release fertiliser coating plant and crop-specific blending expansion via a US joint venture to boost productivity and reduce input-cost pressure. Biomass Trade: Weng Yat Resources inked an MoU with Japan’s Daya Synergy Borneo to build a biomass supply platform, targeting trial shipments this year and commercial deliveries from Jan 2027. Jobs & Labour Market: Malaysia’s unemployment rate returned to 3% in April 2026 as employment rose to 16.82m. Digital & Cybersecurity: University of Nottingham Malaysia is still assessing a cyberattack on its student records system after hackers accessed personal data. Business Banking Ease: OCBC Malaysia lets Singaporeans and PRs open business accounts using Singpass, aiming to cut processing to about five working days. SME/Industry Push: Sarawak is developing an integrated industrial ecosystem around Bintulu–Samalaju, with pilot projects starting this year. Halal Policy Watch: Indonesia’s Mandatory Halal policy (from Oct 2026) ramps certification support for micro and small firms via SEHATI. Sports Economy Angle: A banker said World Cup 2026 spillovers could lift Malaysia and ASEAN across digital commerce, payments, logistics and media.

Japan-Malaysia Investment Push: Prime Minister Anwar Ibrahim’s Japan visit is aimed at boosting investment, trade and high-tech cooperation, with Petronas set to supply 2 million tonnes per year of LNG to JERA from 2028, alongside talks on semiconductors, defence and critical minerals. SME Financing Support: Alliance Bank and CGC signed a portfolio guarantee deal to provide up to RM2 billion in financing solutions for Malaysian SMEs, targeting working capital and expansion while easing collateral constraints. Digital Safety & Sovereign AI: Malaysia reaffirmed plans to strengthen online safety, improve digital literacy and invest in sovereign AI capabilities to protect children and communities. Risk-Based Motor Insurance: CERMAT MADANI is set to support a shift toward risk-based motor insurance and takaful pricing, rewarding safer drivers via traffic offence records and potential future telematics use. Circular Economy Move: Cabinet approval will make recycling facilities mandatory for over 1,000 shopping malls nationwide by year-end, supporting Malaysia’s transition to a circular economy. Anti-Scam Crackdown (Sabah): Police arrested 341 people and seized over RM1.10 million in raids targeting scam call-centre syndicates operating across multiple countries. Cross-Border Credit Reporting: Credit Bureau Singapore and Experian Malaysia signed MoUs to enable two-way cross-border credit reporting, improving access to financial products. Netflix Expands in Asia-Pacific: Netflix is rolling out its revamped mobile app across more APAC markets and expanding Netflix Playground for kids’ gaming. Energy & LNG Infrastructure: Petronas and Japan’s JERA LNG supply agreement underlines Malaysia’s role in stabilising Japan’s energy reserve amid global LNG tightness. Trade Friction Watch: Thailand is scrambling to support shrimp farmers after Malaysia suspended imports of five Thai shrimp species, cutting exports by 300–400 tons monthly.

Energy Diplomacy: Japan and Malaysia agreed to deepen energy security cooperation, including stable LNG shipments and resilient supply chains for rare earths and critical minerals, with maritime coordination and joint exercises on the agenda. LNG Contract: Petronas will supply Jera with 2 million tonnes of LNG per annum for 20 years starting 2028, as Japan looks to shore up reserves amid global LNG uncertainty. Trade & Tariffs: PM Anwar Ibrahim urged countries to defend free trade and oppose punitive tariffs, warning that weaponising interdependence leaves middle-ranking nations more vulnerable. Market Watch: Bursa Malaysia’s morning session edged up slightly as investors stayed cautious; losers led gainers and regional markets were mixed. Engineering Costs: The Institution of Engineers Malaysia says engineering consultancy fees have risen by under 10% since 1983 and calls for a 40–50% increase plus revised payment milestones to reflect today’s compliance and liability costs. Fintech & Credit: Credit Bureau Singapore and Experian Malaysia signed an MoU to enable consented two-way cross-border credit reporting to support lenders and financial inclusion across Singapore–Malaysia. Corporate Moves: EnQuest agreed to buy up to US$833m of offshore Malaysia interests from Petronas, expanding its Southeast Asia portfolio. Data Centres Logistics: DHL Supply Chain plans to add 160,000 sqm of data-centre warehousing capacity across Asia Pacific, with Malaysia expansion tied to AI-driven demand. Consumer & Retail: Shake Shack Malaysia secured full JAKIM Halal certification across its outlets and is rolling out new menu items and localised merchandise. Social Policy: Malaysia is considering making long-term care insurance mandatory, with a potential base premium around MYR100/month as modalities are still being studied.

Disability Inclusion Push: Selangor launched its Persons with Disabilities Policy and Action Plan 2026-2030, shifting from welfare to rights, empowerment and better access across education, jobs, healthcare and universal design. Labour Market & AI Governance: Malaysia reaffirmed a human-centred future of work at the ILC, stressing AI must protect rights and inclusion, alongside ongoing labour reforms and social security expansion. Food Security Act Move: Putrajaya is pushing for a National Food Security Act to build an early warning system and automatic preparedness amid El Niño and climate-driven supply risks. Malaysia-Japan Tech Drive: PM Anwar met Japanese business leaders in Tokyo to deepen investment ties in semiconductors, AI, quantum and digital industries. Cross-border Business Matching: Bank Rakyat brought Malaysian firms to Tokyo for Bizmatch at the Nikkei Forum to unlock Japan and wider Asia opportunities. MSME 5G Plan: Communications Ministry will discuss how 5G can help MSMEs, with coverage targeted to reach 98% by 2030. Immigration Crackdown: Immigration Dept detained 30,801 foreigners for offences as of May 31, including pass misuse and unauthorised work or business. Halal Economy Spotlight: Negeri Sembilan said halal development can expand beyond food into tourism, logistics, entrepreneurship and exports. Domestic Tourism Boost: Tourism Malaysia and Dorsett launched “Jom Cuti! Bersama Wira & Manja” with discounted stays and family-friendly perks through Dec 31.

Data Centres & Industrial Real Estate: Sime Darby Property launched a RM1.25bil Shariah-compliant fund (New Economy Venture) to build-to-suit-to-lease data centres plus industrial and logistics assets in its townships, backed by EPF and other institutions. Semiconductors Outlook: Malaysia’s E&E exports could top RM800bil in 2026, with semiconductors making up about 65% of the mix, as the industry navigates higher input costs and geopolitics. Energy Transition & Hydrogen: Sarawak is recalibrating its H2biscus and H2ornbill green hydrogen export projects due to financing constraints, while still targeting Japan, South Korea and Singapore. Wage Policy: Economy minister Akmal Nasir said wage reform must be paired with productivity gains and industry buy-in, linking pay increases to skills and output. Football Governance: FAM sent a clarification letter to the Sports Commissioner after confusion over audited financial statements and budget presentation. Fuel Subsidies Debate: Consumer groups welcomed continued RON95 support as an inflation buffer, but warned other cost drivers still hit households. Malaysia–Indonesia Finance: CIMB said it’s a “good time” to invest in Indonesia and is looking at M&A opportunities despite investor caution. TVET Skills Push: Experts urged sending TVET instructors for overseas industry attachment to strengthen Malaysia’s new high-tech training programmes. Trade Dispute Watch: Malaysia’s shrimp import ban continues to pressure Thailand’s shrimp sector, with talks and possible WTO escalation looming. Regional Business & Mobility: UNHCR highlighted Thailand’s move to let Myanmar refugees work legally as a potential model for Malaysia and other hosts.

Malaysia-Japan Economic Push: PM Anwar Ibrahim arrives in Tokyo for a three-day MADANI Diplomacy mission, with plans to sign cooperation pacts on defence and regional security, healthcare, energy transition, environmental cooperation and higher education, and to meet Japanese business leaders ahead of a keynote at the Nikkei Forum. AI Governance Drive: Malaysia’s National AI Office says it aims to be a top-10 AI nation by 2030, pairing regulation and safety with inclusion via seven industry-linked working groups. US Forced-Labour Tariffs: The USTR proposes new Section 301 tariffs of 10% or 12.5% on imports from 60 economies over forced-labour enforcement gaps, with Malaysia-linked supply-chain exposure flagged by commentary. ASEAN Shrimp Trade Tension: Malaysia awaits Thailand’s response on shrimp import biosecurity after a dispute over shrimp and sea bass checks, while Thailand signals it may escalate the matter via WTO/ASEAN. Banking Digital Upgrade: Maybank launches next-generation Maybank2E to unify cash management, trade finance and FX for regional business banking with faster onboarding. Data Centre Expansion: Digital Realty opens Malaysia operations and plans about 32MW capacity in Cyberjaya for AI and high-performance computing workloads. Business & SME Support: SSM signs an MoU with Terengganu’s entrepreneur foundation to boost business registration and compliance awareness. Corporate Finance: BIMB Investment launches a Shariah-compliant small-cap fund targeting RM50m, aiming for 8%-10% annual returns subject to market conditions. Regional Connectivity: Pekanbaru–Melaka flights start June 10 to boost Melaka’s health tourism, with three weekly services.

Digital Infrastructure Push: Digital Realty opened its Malaysia platform in Cyberjaya and plans about 32MW of data centre capacity (with an AI-ready 15MW site), aiming to scale via multi-site expansion. Renewables Deal: DayOne Data Centres signed major renewable energy supply agreements under Malaysia’s CRESS framework, backing the country’s push to build a stronger digital-and-clean energy ecosystem. Energy Crisis Response: Malaysia’s Crisis Management Task Force said subsidy reforms are being tightened to target help better while protecting market stability amid West Asia-driven cost pressures. Visa Crackdown: PM Anwar directed tougher enforcement against foreigners misusing visitor and student visas to run businesses, including in MSMEs, with agencies told to act immediately. Corporate Moves: Astro Malaysia CEO Euan Smith stepped down, with Henry Tan named interim CEO from June 16. Transport & Rail Ambition: Malaysia is positioning itself as an ASEAN rail hub, citing projects like Penang LRT, ECRL and the Johor Bahru–Singapore RTS Link. Tech & Security: A report alleged free smart TV apps can be used for AI proxy traffic via embedded SDKs, raising privacy and device-security concerns. Market Mood: Asian stocks sold off broadly on Middle East tensions and a hit to US tech sentiment, with Malaysia’s index also down.