AGP Executive Report

Sabah Oil & Gas Push: Sabah’s Mindet will table an OGSE 5-year roadmap for Cabinet backing to boost local participation and skills, aiming to turn the state into a regional oil and gas hub by 2030. Sabah Politics & Spending: UPKO’s Datuk Dr Marcus Mojigoh warned PM Anwar could face Sabah backlash if the promised RM1.5b interim special grant is delayed again, citing cost-of-living pressure and development gaps. Football Governance: FAM denied claims it failed to present audited financial reports since 2016, saying reports were tabled at Annual Congress and reviewed by committees, with 2025 accounts presented at an Extraordinary Congress. Palm Oil Market Watch: Malaysia’s palm oil futures extended losses on weaker Dalian soy oil and worries over Indonesia’s new centralised export system, though still notched a third straight weekly gain. Undersea Security: Seventeen nations launched GUIDE, a voluntary framework to share best practices and improve early warning for attacks on critical underwater telecom and energy infrastructure, including Malaysia. Social Media Rules: Malaysia’s under-16 social media restrictions and platform compliance requirements continue to draw attention as regulators tighten age checks and enforcement. AI & Business: VCI Global plans to launch Galactic OPC, an AI-native business operating system aimed at helping entrepreneurs and firms coordinate sales, operations and scaling. Energy Data: DOSM reported crude oil and condensate output fell 5.5% y/y to 43m barrels in 1Q 2026, alongside a 2.1% dip in natural gas output.

US-China Tech Controls: Trump officials are debating a loophole in US rules that may have let Chinese firms buy Nvidia’s most advanced AI chips via overseas subsidiaries, prompting a fresh BIS clarification. Forced-Labour Tariffs: The US is moving ahead with Section 301 forced-labour tariffs affecting dozens of economies; Malaysia is facing renewed scrutiny after criticism that it exposed itself to the risk. Energy & AI Infrastructure: TNB says regional cooperation, talent and grid modernisation are key as AI and renewables reshape demand, while ENERtec Asia 2026 spotlights energy storage and clean power for data centre growth. Semiconductors & Investment: Anwar met AT&S on its Kulim operations, underscoring Malaysia’s push to deepen the semiconductor value chain; CBRE also flags Malaysia as a data-centre growth hotspot. Labuan IBFC: Labuan’s cross-border finance push is gaining traction in global fintech rankings, reflecting rising interest in Malaysia’s offshore financial ecosystem. Malaysia Economy Data: DOSM reported 1Q 2026 crude oil and condensate output fell 5.5% y/y, with exports also down. Digital Payments: TNG eWallet’s CEO says the wallet is considering agentic payments as Bank Negara’s stance looks more enabling. Youth Online Safety: Malaysia’s under-16 social media restrictions continue to roll out, with compliance and fines in focus. Business & Culture: A feature looks at how Malaysian brands “borrow” foreign identities to win consumers, while Labuan prepares its first international 42km marathon to boost sports tourism.

Semiconductor & Jobs: PM Anwar met AT&S CEO Michael Mertin on the company’s Kulim operations, where about 2,700 people are employed, underscoring Malaysia’s push to stay in the global semiconductor value chain. Energy Transition & Data Centres: Schneider Electric says Malaysia’s next AI data-centre phase needs disciplined planning across power, cooling, water and renewables; MIDA’s Tengku Zafrul also argues data centres’ value goes beyond direct jobs via wider ecosystem spillovers. Grid & Renewables Build-Out: TNB says it delivered 4.3GW of installed renewables and points to RM43bn for grid modernisation to support rising data-centre demand. SME Capital Market Push: The federal government will fund 200 SMEs with RM50m under PKS@BURSA to help them list on Bursa Malaysia by 2030, including listing-cost support. Johor Workforce Lift: Johor offers premium wages for graduates (RM4,000+; TVET RM4,000–RM5,000+) tied to the Johor-Singapore SEZ to attract investors and create high-quality roles. Trade & Policy Watch: Johari says Malaysia-US ties should be judged by investment, tech transfer and talent—not just trade balances. Online Safety Rules: Employers are reminded Malaysia’s revised EP salary framework took effect 1 June 2026. Regional Dispute: Malaysia’s shrimp ban on five Thai species continues amid food-safety and reciprocal trade tensions. Governance Spotlight: AFC proposes FAM return Harimau Malaya management to the FAM National Team Committee after an audit flagged governance and accountability gaps.

Energy Transition & Data Centres: Prime Minister Anwar Ibrahim said Tenaga Nasional (TNB) is key to Malaysia’s energy transition and AI/digital infrastructure push, with major data centre investments in Johor and Sarawak raising the stakes. Renewables Financing Risk: Malaysia’s largest independent power producer Malakoff warned “stranded” solar risk is growing as renewable project tenures and capital costs don’t match demand and supply. Cross-Border Payments: NTT Data and AXS signed an MoU to interconnect bill payment networks, starting with Singapore–Malaysia. Palm Oil Outlook: Malaysian palm oil futures slipped on weak export demand and softer soyoil/crude oil, while Indonesia’s export overhaul could intensify competition. Trade Remedies: Vietnam extended anti-dumping and countervailing duties on Thai sugar through 2031, while Malaysia’s solar glass import duties were also extended in India. US Forced-Labour Tariffs: The US proposed 10%–12.5% Section 301 tariffs on nearly 60 economies including Malaysia, adding new trade compliance pressure. Tourism Pressure: Langkawi faces rising costs and falling arrivals, with operators warning steep expenses could erode competitiveness. Child Online Safety: Malaysia began enforcing under-16 social media age verification rules, tightening access for minors. AI Reputation & Retail Tech: Rankpage launched AIRM for AI search visibility tracking, while Hanshow unveiled xPilot to turn store data into real-time execution.

Energy Transition & Grid Security: Malaysia’s energy debate is getting louder at ETCon26, with MyPOWER’s CEO saying nuclear power could complement renewables by providing stable baseload supply for data centres and high-tech demand, while TNB’s conference push highlights “ambition to execution” and the need for practical solutions. Solar Policy: PETRA’s Fadillah says Large-Scale Solar 6 tender submissions are expected to open this year, and all new solar projects must pair with Battery Energy Storage Systems to stabilise the grid. Gas Supply Watch: The government says Malaysia’s gas supply is sufficient for now, with about 80% of electricity generation supported by domestic sources, though indirect risks like higher transport costs remain. Carbon Capture Push: CCUS readiness is being framed as a whole-of-nation effort, with Malaysia calling for stronger ASEAN collaboration to scale carbon capture at pace. Fuel Prices: Malaysia’s RON97 and unsubsidised RON95 retail prices are set to fall for June 4–10, while targeted subsidies remain in place. Anti-Corruption Tech: MACC will launch “Maccampus” at UMT to boost integrity and anti-corruption education for students. Enforcement on Illegal Mining: Kelantan seized 45 excavators in an illegal gold mining crackdown across high-risk areas. Trade Shock Risk: The US proposed Section 301 tariffs up to 12.5% on 60 economies, including Malaysia, over alleged forced-labour enforcement failures—raising compliance and export-cost concerns for regional supply chains. Property & Investment: Malton’s unit proposes buying RM97.23m freehold land in Johor Bahru for a service-apartment development. Regional Business Links: Singapore and Malaysia formalised deeper ADR cooperation via new MOUs between SIAC/SIMC and AIAC. Digital Payments Expansion: Visa and Garmin Pay are expanding wearable contactless payments in the Philippines, with Malaysia already included in the rollout footprint.

US Tariff Pressure on Malaysia: The Trump administration has proposed new Section 301 duties on imports from 60 economies over forced-labour enforcement failures, with Malaysia listed among countries facing a 10% additional tariff, adding fresh uncertainty for exporters ahead of a public comment period. Child Safety Rules Go Regional: Indonesia’s under-16 social media ban is already forcing global platforms to delete accounts and redesign products, a move that Malaysia is also pursuing with its own under-16 restrictions and compliance requirements for platforms. Energy Transition Push: Malaysia’s Energy Transition Conference 2026 (ETCon26) highlighted how partnerships across government, utilities, developers and finance are key to scaling the energy transition from plans to execution. AI Skills Gap in APAC: Aon’s study finds AI adoption is surging across Asia-Pacific, but workforce readiness lags, with only a small share confident they can recruit and retain enough AI talent. Digital Infrastructure Expansion: Damac Digital says its IT capacity landbank has hit 6,000MW across 13+ countries, including Malaysia, as hyperscalers and sovereign compute demand drive new data centre builds. Local Business & Consumer Notes: Realme launched the P4 Power 5G in Malaysia with a 10,001mAh battery, priced from RM1,599 during a launch promo. Palm Market Watch: Malaysian palm oil futures rose more than 1% on firmer crude and Chicago soyoil.

Defence Diplomacy: Malaysia’s Defence Minister Mohamed Khaled Nordin pressed Norway to expedite compensation after Oslo revoked an export licence for the Naval Strike Missile (NSM), arguing Norway’s decision was the “root cause” and urging it to advance refunds before seeking reimbursement from the contractor. Youth & Social Policy: Malaysia began enforcing a ban on social media accounts for children under 16, with rules also tied to age checks and platform compliance. Economic & Jobs Insight: PNB Research Institute says Gen Z job hopping is driven mainly by poor job quality—underemployment and low starting wages—rather than work ethic, pointing to widespread underemployment among young workers. Corporate Earnings: QL Resources reported higher Q4 profit on stronger marine products margins, while livestock earnings fell after egg subsidy removal weighed on layer farming. Sports Governance: AFC’s proposed 94-article draft statutes for FAM are set to spark debate over football governance reforms, including eligibility and executive structure changes. Regional Trade: RCEP’s full implementation and regulatory simplification are projected to lift incomes across member economies, supporting jobs by 2030. Tourism & Culture: Sarawak’s longhouses are being promoted as community-based tourism products under the Malaysia Homestay Experience Programme.

Online Safety & Regulation: Malaysia began enforcing age-verification rules under the Online Safety Act 2025, barring children under 16 from creating social media accounts and requiring platforms to comply with Child Protection Code and Risk Mitigation Code, with fines up to RM10m for non-compliance. Defence & Diplomacy: Malaysia says Norway must prioritise compensation after revoking the export licence for the Naval Strike Missile deal, arguing Norway’s decision is the root cause and proposing Norway advance payments before seeking reimbursement from its contractor. Sabah Fiscal Negotiations: Sabah’s interim special grant is set to rise to RM1.5bn annually, with state leaders framing it as proof that federal-state negotiations under MA63 are delivering tangible development and welfare outcomes. Aviation & Wealth Mobility: VistaJet highlights Malaysia as a key growth market, citing strong demand from Malaysian corporates and entrepreneurs and pointing to expected growth in ultra-high-net-worth populations. Food & Trade Safety: APFRAS (including Malaysia) is pushing food safety regulatory harmonisation across the Pacific rim to make trade smoother amid rising tensions. Digital Commerce: Google expands its virtual try-on feature across APAC markets including Malaysia, aiming to make shopping more immersive. SME Payments: U Mobile launches Ultra Business Merchant 360, bundling POS hardware, business software and Ultra5G for Malaysian SMEs in F&B and retail. Scams: Police report two Miri cases of online investment and job scams totalling over RM908,000 in losses.

Online Safety & Regulation: Malaysia has started enforcing nationwide age verification for social media accounts, barring anyone under 16 from registering on major platforms (with up to six months for existing users to verify). The Malaysian Communications and Multimedia Commission says non-compliance could bring fines up to RM10 million (about US$2.5 million), under the Online Safety Act 2025. Defence & Diplomacy: Malaysia’s Defence Minister says the country has the right to seek compensation after Norway cancelled the Naval Strike Missile export licence, arguing public funds and defence readiness were affected. ASEAN Economic Outlook: A Malaysian expert calls Vietnam, Malaysia and the wider “MITPV” group (Malaysia, Indonesia, Thailand, Philippines, Vietnam) key long-term engines for ASEAN investment, citing Vietnam’s growing manufacturing scale and Malaysia’s role in semiconductors, LNG and financial services. Aerospace & Business Events: The Aerospace Global Forum at Farnborough 2026 has announced its first confirmed speakers, including leaders from airlines, defence, finance and space. Creative Industry: Communications Minister Fahmi Fadzil highlighted FINAS’ 45-year role in supporting Malaysia’s film and creative content sector and protecting industry welfare in the digital era.

Online Safety Crackdown: Malaysia has started enforcing age verification rules that block children under 16 from opening social media accounts, with major platforms (at least 8 million users) required to use official ID checks and face penalties of up to RM10 million for non-compliance. Energy Transition & Industry: Tenaga Nasional’s ETCon26 (June 3-5) will bring together policymakers and investors from 60+ countries to discuss Malaysia’s clean energy push, with Anwar set to officiate. Cyber & Finance Growth (Global): Coinbase launched direct INR deposits and withdrawals in India via IMPS, aiming to deepen local liquidity and trading access. Cross-Border Mobility: Grab adjusted its SG-JB ride-hailing pilot, cutting booking lead time to six hours and expanding services across key Johor areas. Geopolitics & Trade Controls (Global): The US moved to close a loophole that may have let Chinese-linked firms access Nvidia’s top AI chips via overseas subsidiaries. Regional Security: China conducted “law enforcement” patrols east of Taiwan after Japan and the Philippines announced maritime boundary talks. Tourism Pressure (Regional): Iran-war-linked fuel price spikes are squeezing Southeast Asia’s tourism-heavy economies, raising fares and triggering cancellations.

Energy Transition: Malaysia will raise Peninsular biodiesel blending from B10 to B15 starting June 1, aiming to cut imported diesel reliance while boosting demand for locally produced palm oil-based biodiesel. Fuel Subsidy Confusion: Malaysians reported BUDI95 RON95 quotas briefly showing 150 litres instead of 200 on apps, but the figure reportedly reverted to 200 after midnight, with no official explanation. Digital Safety Rules: Under the Online Safety Act 2025’s Risk Mitigation Code, advertisers for sponsored social media posts must verify identities from June 1 to curb scams and misuse of public figures’ identities. TVET Publishing Push: ITBM is bringing 500+ TVET-related book titles to PBAKL 2026 and exploring Malay translations of key technical references to widen access to industry-aligned skills. Tourism Pulse (Penang): Penang saw heavy crowds during the Wesak and Agong’s birthday long weekend, with George Town heritage areas, Batu Ferringhi and Penang Hill drawing visitors. Defence & Security: Malaysia joined a 17-country effort to protect critical underwater infrastructure, while Defence chief Mohamed Khaled Nordin criticised “deafening silence” over Norway’s cancelled missile deal. Regional Economy & Jobs: A report highlights Malaysia’s rising skill mismatch, with more tertiary graduates working outside their field as the job market tightens. Business & Growth (Sarawak): Sarawak plans to build local aerospace, satellite and AI capabilities ahead of a nano-satellite launch by 2030, targeting RM282bil GDP by 2030.

Underwater Security: Malaysia joined Singapore and 15 other countries to launch GUIDE at the Shangri-La Dialogue, a framework to strengthen defence cooperation for critical underwater infrastructure. Trade & Logistics: Perlis Inland Port (PIP) was opened by the Raja of Perlis, with plans to link Malaysia-Thailand trade toward a US$30b target and improve cross-border cargo flows. Rail Safety & Enforcement: Transport Minister Anthony Loke said the government is studying monitoring tech and tougher laws to curb railway cable theft that disrupts services and threatens public safety. Budget Discipline: PM Anwar said MADANI is tightening spending across ministries, redirecting savings to public welfare while protecting key areas like education, healthcare and basic infrastructure. SME Financing: Entrepreneurs were urged to tap the SME Stabilisation Relief Facility (SME SRF), offering financing up to RM750,000 at 3.75% for up to five years. Sabah Fiscal Support: Anwar raised Sabah’s interim special grant to RM1.5b ahead of the mechanism for Sabah’s 40% revenue entitlement under MA63. Defence Exports Watch: India’s Defence Secretary said BrahMos deals with Vietnam are signed and Indonesia talks are near final stages, underscoring growing defence ties in Southeast Asia. Public Health: Penang consumer advocates warned Malaysia risks a “generation” addicted to nicotine as youth vape use rises, calling for bold bans ahead of World No Tobacco Day. Education & Skills: UPSI plans a Mountaineering School to boost hiking capability and reduce mountain-related incidents through training and research.

Sabah Budget Relief: PM Anwar Ibrahim says Sabah’s interim special grant is raised to RM1.5bil this year, pending the mechanism for implementing Sabah’s 40% revenue entitlement under MA63. SME Financing Push: Penang walkabout minister Steven Sim urges SMEs to tap the RM5bil SME Stabilisation Relief Facility, with financing up to RM750,000 at 3.75% for up to five years and participation expanded to 20 banks. Vehicle Inspection Reform: Transport minister Loke Siew Fook says Carro Technology will launch eight licensed Puspakom alternative vehicle inspection centres nationwide, signalling more competition in the used-car ecosystem. Healthcare Tech Expansion: AstraZeneca and Roche Diagnostics plan to expand AI digital pathology and biomarker testing for breast and lung cancer across Malaysia and eight other Asian markets. Islamic Economy Spotlight: Malaysia tops the State of the Global Islamic Economy report again, scoring 165.1 and widening the gap over Saudi Arabia. Energy & Trade: Malaysia and Singapore-based LNG Alliance back a Sabah LNG import project at Lahad Datu, while Bulog says Indonesian rice exports to Malaysia will be priced above the domestic cap.

Defence & Security: Malaysia’s defence minister says the US will consider selling missile options to replace Norway’s revoked Naval Strike Missile (NSM) export licences, after talks at the Shangri-La Dialogue. Politics: Reuters reports PM Anwar Ibrahim is weighing snap polls if coalition tensions worsen, with an election potentially as early as July. Sabah Fiscal Talks: Anwar says he will clarify negotiations on Sabah’s 40% MA63 special grant entitlement tomorrow in Sabah. Media & Rights: A UN human rights office urges urgent action to protect children online, warning against poorly designed age verification. Digital Policy: Malaysia’s blanket under-16 social media ban is criticised as rushed and privacy-undermining. Finance & Markets: Bank Negara Malaysia pegs official reserve assets at US$129.73bn end-March 2026; Maybank shares edge up despite softer 1Q profit. Energy Transition: RAM Ratings keeps a positive outlook on Malaysia’s power sector, citing progress in renewables and grid-scale storage. Business & Investment: Navis Capital Partners sets up a continuation vehicle to buy New Zealand’s Mainland Poultry; SG Enviro closes Series A to scale water treatment across Southeast Asia. Culture & Economy: Anwar lauds strong turnout at PBAKL, saying the challenge is choosing quality knowledge. Film Industry: FINAS says the screening of ‘Konspirasi’ was halted at the producer’s request. E-sports: Red Giants FC and WTM Media sign an MoU to expand SRG’s regional reach.

LRT Safety Crackdown: Malaysia’s transport minister Anthony Loke says a special task force will investigate the KL LRT derailment near Chan Sow Lin, with findings to Cabinet and a public report, while APAD has been told to impose maximum penalties on Prasarana and the board may face dismissals if negligence is found. Central Bank Watch: Bank Negara Malaysia reported official reserves of US$129.73bn at end-March 2026, with net short forward positions of US$24.45bn as it manages ringgit liquidity. Banking Earnings: Maybank’s 1Q 2026 net profit slipped to RM2.48bn as revenue fell, though it cited improved net interest margins and costs; analysts kept a “buy” stance. Corporate Moves: AM Best placed Labuan Re under review after MNRB agreed to buy the remaining 80% stake for about US$100.69m, targeting completion in 4Q 2026. Energy Transition: RAM Ratings maintained a positive outlook on Malaysia’s power sector, pointing to renewable capacity at 12GW (31%) and the role of grid-scale storage and firm gas capacity. Policy & Compliance: JIM postponed the new international passport version originally set for 1 June, while Petronas and KPDN reiterated subsidised RON95 is only for Malaysians and Malaysia-registered vehicles. Markets & Flows: Foreigners resumed Asia bond buying in April, with Malaysian bonds seeing a second straight monthly inflow of about US$956.79m. Tourism Tension: A Reuters report flags Malaysia’s struggle to balance entertainment-led tourism with conservative sensitivities.

Tourism Push: Tourism Malaysia is ramping up its Muslim-friendly tourism push under Visit Malaysia 2026, with a Fam Trip and Eid al-Adha packages aimed at faith-compliant cultural and experiential travel. Rail Accountability: The Ministry of Transport set up a task force to investigate the Ampang–Sri Petaling LRT derailment and ordered APAD to pursue the harshest penalties against Prasarana, with top management held accountable. Banking Earnings: Maybank’s Q1 net profit slipped to RM2.48bn as weaker trading income hit revenue, though net interest margins and fee income helped cushion results. Corporate Results: QL Resources’ FY2026 net profit edged down to RM450.35m; Berjaya Corporation’s 3Q loss widened to RM176.23m; IJM Corp’s FY2026 profit fell to RM3.24m but it declared a second interim and special dividend. Capital Markets: MM Computer Systems’ IPO was oversubscribed 42.12 times ahead of its ACE Market listing on June 11. Labour & Skills: TVET is increasingly seen as a top career path, with National TVET Day set for June 5–7. Public Cleanliness Enforcement: Nearly 8,000 litterbugs were caught under a community service framework in six states, with fines up to RM2,000. Energy & Cost of Living: RON95 subsidy changes are being deferred as a last resort due to household impact, while diesel quota controls are tightened.