AGP Executive Report

EV Infrastructure Push: MITI says Malaysia has installed 6,416 public EV chargers nationwide as of May 31, 2026 (2,143 DC fast, 4,273 AC), with approval times cut to as little as 14 working days via PLANMalaysia’s EV Charging Bay Planning Guidelines. Halal & SME Export Drive: MITI reports its Halal Home Grown Champion – Sourcing Partnership 2.0 helped 313 halal firms (158 Bumiputera, 52 women-owned) with RM187.91m in potential sales, while MIHAS 2026 is set for Sept 23–26 at MITEC with 2,400 booths and 1,000+ local MSMEs. Road Safety via Media Literacy: MPI and PUSPAKOM partner to boost road safety awareness using media literacy modules and public campaigns, including AI-enabled vehicle inspection education. Healthcare Market Linkages: Malaysia is promoting medical and healthcare firms at IHW 2026 in Bangkok (July 8–10), with MATRADE backing eight Malaysian companies and aiming to build new partnerships beyond ASEAN. Crypto Mining Crackdown: Malaysia seized 75,578 crypto mining rigs in 3,000+ raids since 2022, with enforcement shifting toward intelligence-led, faster action. Bursa Watch: Bursa Malaysia closed slightly higher as late buying lifted FBM KLCI to 1,683.61, amid investor focus on Middle East-linked oil risks.

EV Ecosystem Push: Deputy Investment Minister Sim Tze Tzin says Malaysia is streamlining EV policies and incentives, including building more power substations with TNB and offering support for charging operators to speed up nationwide charging rollout. Trusted AI for Finance: AICB urges banks to move from AI adoption to trusted implementation, with stronger governance, assurance, resilience and future-ready talent as Malaysia’s financial sector blueprint advances. Health Financing Reform: The MediAsas pilot (from Jan 2027) is set to reform Malaysia’s health coverage with premiums starting around RM60/month, paired with the RESET strategy to tackle cost inflation via transparency and Diagnosis-Related Groups. Ports & Logistics Capacity: Transport Minister Loke warns Malaysia could lose port competitiveness in 20–30 years unless Port Klang, PTP and Carey Island capacity expand now. Cybersecurity & AI Habits: Kaspersky flags Malaysia workplace risks from hybrid work, weak passwords and AI tools being used in daily workflows—plus mixed uptake of two-factor authentication. Tourism & Trade Links: Tourism Malaysia reports 17.5m international arrivals Jan–May (+3.4%) and signs a MoC with Tripadvisor to boost data-driven marketing. Cross-border Trade Facilitation: Thailand approved a new permanent Sadao checkpoint with Malaysia from July 11 to cut bottlenecks and boost trade, tourism and food/energy cooperation. Energy Storage Deal: Hoymiles and TAMCO will locally assemble utility-scale BESS in Shah Alam, supporting Malaysia’s next-gen energy infrastructure and Southeast Asia expansion.

Women in Leadership: TalentCorp Malaysia Berhad picked 500 young women for the Women-Industry Network (WIN) cohort under Wanita MyWira, selecting them from 700+ applicants for a five-week mentoring push with 61 industry mentors. Media Governance: Johor visit prompts Communications Minister Fahmi Fadzil to back strengthening the Malaysian Media Council as a self-regulatory platform, while MMM says PM Anwar’s due-process stance should route journalist complaints to the council first. Energy Storage & Industry: Tamco and Hoymiles ink a strategic partnership for local assembly of AI-enhanced 5MWh and 6MWh liquid-cooled utility battery energy storage systems in Shah Alam, aiming to deepen supply chains and tech transfer. Corporate Moves (Johor): Ge-Shen Corp’s unit will dispose of five freehold land parcels in Tebrau for RM35.50m to repay borrowings, cut gearing, and support working capital. Labour Market: Malaysia reopened its labour market for Bangladeshi workers, with other Middle Eastern destinations expected to follow soon. Semiconductor/AI Supply Chain: SkyeChip continues engineering work with Cerebras on custom high-speed interface IP for wafer-scale AI computing. Trade & Diplomacy: France’s trade minister Nicolas Forissier will visit Malaysia to meet key ministries and promote new investment links.

Rare Earths & Manufacturing Deal: Lynas and South Korea’s JS Link signed a partnership to build a Kuantan magnet factory, with Lynas supplying rare-earth materials to the Malaysia plant and JS Link’s Korea facility until Jan 2038; the Malaysia site targets 3,000 tonnes/year of NdFeB magnets and could create up to 400 jobs, while Malaysia also plans to review Lynas’ US$96m US DoD rare-earths supply deal amid protests. Workforce & Foreign Labour System: FMM urged KESUMA to ensure a smooth transition to the centralised foreign worker management system, warning against new bottlenecks and pushing for the Multi-Tier Levy Mechanism to be operationalised via the eQuota single-window platform. Early Childhood Education Expansion: MOE plans to roll out 1,040 new preschool classes by 2027, building on 10,491 existing classes as of May 31 that serve 217,026 students. Women Leadership Pipeline: TalentCorp launched its largest Wanita MyWira WIN cohort, mentoring 500 young women to strengthen STEM/TVET participation and leadership readiness. Health Costs Watch: Malaysia’s health inflation rose to 3% in 2025, driven by higher healthcare service costs and a 9% jump in insurance expenditure. Payments & Finance: iFAST Global Bank launched SEPA Instant for instant euro transfers across the 41-country SEPA zone, expanding cross-border payment options for Malaysia-based clients.

Competition Law: Dewan Rakyat passed the Competition Commission (Amendment) Bill 2026 to strengthen MyCC powers, including broader market reviews and clearer enforcement against cartels and abuse of dominance. Macro Outlook: RHB IB projects Malaysia’s 2026 GDP growth at 4.7%, citing resilient domestic demand, stronger exports (especially E&E), and easing external risks. Food Security & Agri Tech: DOSM says Malaysia’s Food Security Index rose to 61.5 in 2024; availability still lags, pushing a bigger focus on commercialising agriculture with tools like IoT and drones. Palm Oil & Biodiesel: USDA flags El Nino-linked dry weather as a risk to Malaysia’s 2026-27 palm output, just as the B15 biodiesel mandate boosts demand. Agro-Food Digitalisation: FAMA is expanding Agroborong.com to connect producers with buyers and improve market access through a stronger agro-food digital marketing ecosystem. Shipping & Trade Routes: Maersk and Hapag-Lloyd plan another attempt to route one service via Suez-Red Sea transit, while keeping contingency plans if security worsens. Rare Earths: French firm Carester plans a rare earth separation plant in Perak via a 10-year JV with Malaco Mining, aiming to build local processing capacity. Digital Infrastructure: NEC is part of the I-2SEA submarine cable project linking India’s AI hubs with Singapore and Kuala Lumpur, targeting operations in 2029. Healthcare Reform: RESET’s MediAsas pilot (Klang Valley, end-July to Oct 2026) will test more affordable private healthcare coverage before a nationwide rollout in Jan 2027. Business Capital Markets: Enest Group’s IPO was oversubscribed 1.94 times ahead of its ACE Market listing. Aviation Decarbonisation: Aura Aero acquired VoltAero, combining industrial scale with hybrid-electric propulsion know-how.

Food Security & Agri Tech: Malaysia’s Food Security Index rose to 61.5 in 2024 (from 54.5 in 2023), with accessibility strongest but domestic availability still needing work; DOSM points to scaling modern tools like IoT and drones, plus more commercial farm development. Durian Exports & Logistics: Agriculture talks with Thailand and China’s customs (GACC) aim to set up a land/rail route for durians to China to cut costs and reach smaller Chinese cities—timed to ease the current glut. Foreign Worker System: KESUMA says all foreign worker quota applications are now processed fully via the eQuota module in FWCMS, ending case-by-case approvals after the OSC was moved under KESUMA. Industrial Deals: Messer is acquiring Singapore-based WKS Group, expanding its Southeast Asia footprint in industrial gases, including operations in southern Malaysia. AI & Data Centres in Johor: Vertiv opened a Johor manufacturing facility for AI power/cooling infrastructure, targeting up to 500 skilled jobs by 2027; JS-SEZ is also on track to hit 20,000 skilled jobs in three years. Energy/Commodities: Palm oil futures climbed on stronger rival edible oils despite crude pressure, with inventory expectations in focus. Rare Earths Policy: A Malaysian parliamentary hearing on Lynas’ rare earths deal with the US DoD is set for July 16, with questions on whether it conflicts with local policy.

EV Manufacturing Push: XPENG’s first locally assembled G6 rolled off the line in Melaka via EPMB, signalling Malaysia’s shift from export-only to a longer-term EV production base. Manufacturing Pulse: Asia’s June factory growth stayed in expansion but cooled, with inflationary pressure easing as supply conditions improved. AI Investment Debate: South Korea unveiled a ~$1T AI semiconductor plan, but markets and industry circles questioned the motives and regional focus. Education & Skills: Johor gets 27 new schools (over RM2.3b) and TVET grads are urged to turn skills into entrepreneurship, with TVET funding highlighted. Energy & Waste-to-Fuel: Malaysia-linked sustainable aviation fuel is being used to power flights in Australia, turning repurposed cooking oil into lower-carbon jet fuel. Oil & Gas Deal: TotalEnergies agreed to sell an 85% stake in Malaysia’s Block 2E to INPEX for $350m to sharpen its low-carbon focus. Palm Oil R&D: MPOB will build a Melaka palm oil research station (RM20m–RM25m) to boost productivity and training. Digital Connectivity: A WBS proposal is submitted to MOSTI/ASM to fix weak internet “blind spots” in Senggarang, Johor. Identity & Enforcement: NRD found no NRD-issued documents on a Bangladeshi detainee in Kuantan tied to suspected passport misuse. OOH Measurement: OAAM backs a unified measurement push to standardise Malaysia’s out-of-home and DOOH tracking. Trade & Shipping: India-bound fertiliser shipments cleared the Strait of Hormuz, supporting stocks despite West Asia disruptions.

Islamic & Halal Governance: Religious Affairs Minister Dr Zulkifli Hasan says Malaysia’s global standing in managing Islamic affairs is backed by data, with JAKIM’s halal certification and Tabung Haji haj management cited as world-recognised strengths. Digital Connectivity in Johor: Batu Pahat MP Onn Abu Bakar submits a Wireless Bridging System proposal to MOSTI/ASM to tackle weak mobile coverage in seven Senggarang areas, in partnership with UTHM. Palm Oil R&D Push (Melaka): MPOB will set up a RM20–25m strategic research station on 40.47ha in Seri Mendapat, Sungai Rambai, with labs, model plantation, training and enforcement support to boost high-value palm oil development. Manufacturing Trade Pressure (US forced-labour tariffs): FMM urges the US to avoid blanket Section 301 duties, saying compliant Malaysian exporters already meet audit and traceability requirements and extra tariffs could disrupt supply chains. Gold Import Cost Relief: Tomei Consolidated asks for exemption of imported stamped/minted gold bars from the 10% import duty to keep gold investment affordable for Malaysians. Road Safety (Motorcyclists): Transport Deputy Minister Hasbi Habibollah highlights motorcyclists as the top road-fatality group, with 4,000+ deaths from 6,537 fatal crashes last year, calling for enforcement plus helmet and advocacy efforts. Diesel Subsidy Scope (Sarawak): Sarawak Entrepreneur Association wants Budi Diesel eligibility expanded to heavy machinery and rural utility vehicles to protect construction and logistics from higher operating costs. Property Market (Sabah): Shareda PropEX 2026 (July 10–12) in SICC Sabah showcases mostly completed projects, while new launches may rise 10–15% due to construction cost increases. Agriculture & Climate Stress: Malaysia recorded 13,000+ bush fires Jan–Apr 2026, nearly double 2025, linked to hot/dry weather, El Niño and open burning. Energy Transition (Sarawak): Sarawak Premier Abang Johari proposes electric buses for Miri to cut smoke and noise, alongside a planned 500MW CCGT plant expansion. Malaysia–Iran Food Trade: Agriculture minister Mohamad Sabu says Iran wants to import more Malaysian tropical fruits, palm oil, urea and garments, with an MoU and agri tech transfer discussions underway.

Energy & Safety: Petronas is investigating after three contractors died during lifeboat maintenance on the Sepat FSO offshore Terengganu, with one more injured. Oil & Gas Deals: TotalEnergies will sell its 85% interest in Sarawak’s Block 2E to INPEX for US$350m, crystallising value from the Marjoram gas field. Digital Governance: The Communications Ministry is assessing licensed social media platforms’ compliance with ONSA’s Risk Mitigation and Child Protection codes, with MCMC and platforms in discussion. Tourism & Consumer Protection: Malaysia plans a minimum pricing mechanism and standard service requirements for umrah packages to curb “too-cheap” offers that may compromise pilgrim welfare. Local Economy & Industry Support: MSMEs drive 97% of business transactions and about half of jobs and GDP, with government funding up to RM40b to boost competitiveness. Agri & Trade Controls: Fisheries Dept says it needs at least 30 days to assess Thai documents for resuming prawn exports after import permit suspensions. Co-ops & Skills: National Co-operative Day spotlights cooperatives’ role in food security, tourism and digitalisation, while PUNB targets up to RM2.25b financing for bumiputera entrepreneurs (2026-2030). Regional Growth Watch: Malaysia reiterates Q4 launch timing for the Johor-Singapore SEZ blueprint despite Johor pressure to release sooner.

SME & Rural Boost: Deputy PM Ahmad Zahid says MSMEs drive 97% of business transactions, ~52% of GDP and over half of jobs, with up to RM40bil earmarked to raise local competitiveness. Entrepreneur Financing Push: PM Anwar launches PUNB’s SParK 2026, targeting up to RM2.25bil for bumiputera firms (2026–2030) and cutting PROSPER GROW rates to as low as 3.5% plus new working-capital programmes. Co-ops & Digitalisation: Malaysia’s National Co-operative Day highlights food security, tourism and digitalisation, with 186 exhibitors and 6,000 visitors on day one. Food & Tourism Industry: KLDEX opens near MaTiC to spotlight premium durian heritage and kick off Malaysia Durian Festival 2026, linking farmers, exporters and tourism players. Agri Diversification: Felda Ayer Hitam expands lemon farming as a higher-value alternative to oil palm, supported by processing investment. Regulatory Enforcement: Perlis authorities seize 400 vape units and devices worth RM15,000 ahead of a state vape-sales ban from Aug 1, 2025. Transport Planning Debate: MRT walkability complaints resurface as stations are criticised for poor pedestrian access. Fuel Subsidy Crackdown: Johor courts fine a Singaporean for illegally pumping subsidised RON95 under the Apr 1 rules.

Malaysia–Belgium Ties: Belgium’s Deputy PM Maxime Prévot wrapped a two-day visit to Malaysia, meeting Datuk Seri Fadillah Yusof to discuss expanding trade, halal ecosystem and energy-transition cooperation, with Malaysia also assuring maritime access through the South China Sea stays open. Micro-Financing Push: Putrajaya is stepping up outreach to help entrepreneurs tap micro-credit facilities worth over RM5bil via Agrobank, BSN, Bank Rakyat, TEKUN, AIM and MARA, with ground visits starting at Putrajaya Pasar Tani. Corporate Governance Reform: The Securities Commission Malaysia launched a consultation on strengthening the corporate governance ecosystem, including tighter oversight of company secretaries, a proposed shareholder litigation fund, and more guidance for concentrated-ownership firms. EPC & Construction Pipeline: Hextar Industries’ unit won a RM138.42m EPC contract in Pulau Indah for five industrial buildings, with works starting July 7 and completion targeted within 12 months. Digital Infrastructure: NEC signed on to supply the I-2SEA submarine cable linking India, Malaysia and Singapore (about 3,600km), targeting operations in 2029 to serve AI and hyperscale demand. Regulatory Clarity: Rohas Tecnic said MACC has concluded its investigation into HG Power Transmission, with no further action. Trade Watch: India extended anti-dumping duties on normal butanol imports from the US, Malaysia and South Africa for five years. AI in Culture: Dutch artist Ray Tijssen’s “Algorithmic Organisms 2.0” immersive show opened in Kuala Lumpur, blending AI-generated visuals and evolving “digital lifeforms” through July 19.

Payments Modernisation: Bank Negara Malaysia will phase out proprietary QR payment networks by 30 June 2028 under its Interoperable Fund Transfer Framework, ending closed QR ecosystems so Malaysians can pay via any participating bank or e-wallet. Digital & Industry Tech: Vertiv opened a manufacturing facility in Senai, Johor, to build AI data-centre power and cooling infrastructure for regional customers. Cross-border Investment: Forest City SFZ updated progress on the Johor-Singapore Special Economic Zone (JS-SEZ), citing early execution milestones and a growing investment pipeline across manufacturing, logistics, digital and financial services. SME Financing Push: Selangor’s DANA Pantas opens 1 Aug with RM20m for zero-profit financing to help MSMEs, with applications via Hijrah Selangor Business Centres and the DANA PLUS app. Infrastructure & Logistics: PLUS will close a stretch of the ELITE expressway’s Smart Lane from 6 July to 3 Dec for maintenance, keeping three lanes open. Healthcare & Procurement: Mesiniaga won a RM39.99m contract to build centralised server infrastructure for Pharmaniaga’s pharmacy information system (PhIS) 3.0 through 2030. Skills & Jobs: Montfort Boys Town graduated 107 TVET students with SKM Level 2 certifications, reinforcing Malaysia’s industry-ready talent pipeline. Policy & Energy Costs: Putrajaya opened SKDS applications for subsidised diesel via MyKad verification, while BUDI MADANI Diesel is positioned to reduce subsidy leakages.

Trade & FX: MITI says a stronger ringgit is helping Malaysia’s exports stay price-competitive, citing Jan–May 2026 trade up 18.3% to RM1.455t, exports up 24.3% to RM793.84b, and the surplus nearly tripling to RM132.77b. Property & Construction: KPKT and REHDA will offer a 10% home-purchase discount at AREC 2026 (July 29–Aug 1, MITEC), alongside Rahmah Cement support (1.6m tonnes) to ease building costs. Digital & Data Storage: Sarawak backs any increase to its Article 112D special grant only if federal finances allow, while highlighting a long-running Western Digital partnership tied to glass substrate data storage. Agri-Industry: Perlis FAMA rolls out steps to manage a durian glut, including local fruit events and reactivating a fresh fruit processing centre for frozen durian paste. SEZ Investment Momentum: Malaysia says the Johor-Singapore Special Economic Zone remains on track despite master plan timing, with RM76.98b approved investments in 2025 and RM5.49b in Q1 2026. Energy & Shipping Security: Malaysia assures Belgium that ASEAN will keep South China Sea access open, with no blockades, as regional shipping disruption concerns rise. AI Infrastructure: Microsoft and Lightstorm sign to build the India–Southeast Asia subsea cable (I-2SEA) to support growing AI data movement across the region. Palm Oil Watch: Malaysian palm futures fall over 1% as output pressure rises and export demand stays soft.

Energy Transition & Oil & Gas: Reservoir Link Solutions secured a five-year Petronas panel contractor role for integrated discovered resource assessment under CCUS and contaminant work, starting May 14, 2026. AI & Semiconductors: IPP Financial Advisers kept Malaysia’s 2026 GDP growth forecast at 4.6%, citing resilient domestic demand and a semiconductor/data-centre/AI investment pipeline; Apex Securities adds that Malaysia could capture more from the AI-driven semiconductor upcycle, noting E&E exports jumped 39.5% YoY in Jan 2026 and Malaysia handles ~13% of global assembly/testing/packaging. Digital Economy & Talent: Ant International opened its Global Development Centre in Kuala Lumpur (TRX), expanding AI, fintech and digital innovation capacity with support from Malaysia’s leadership. Logistics & Infrastructure: Vertiv opened a manufacturing facility in Johor to meet rising AI and high-density computing demand across Asia. Regional Trade & Shipping: An India–Malaysia–Singapore undersea cable (I-2SEA) consortium plans a 3,600km link for AI/cloud workloads, targeting service in Q4 2029. Politics & Cost of Living: Johor election chatter spotlights jobs, salaries and farm input costs as residents push for relief on living expenses.

Defence Industry & Tech: Malaysia and India reviewed the full spectrum of military cooperation at the 12th India-Malaysia Sub Committee Meeting on Military Cooperation in New Delhi, including exercises, training, maritime ties, and talks on expanding defence industry, technology, cyber security, and humanitarian assistance. Energy & Defence Manufacturing: Defence Minister Khaled Nordin said Malaysia aims to start rocket production within two years and move into missile manufacturing, backed by Weststar–Rocket Technologies International partnerships and technology transfer. Food Security & Agri-R&D: MARDI’s local onion seed push is expected to cut onion import dependence by about RM300m and lift self-sufficiency to 30% by 2030. Retail & Consumer Goods: guardian launched the mannings guardian range, a co-created own-brand line spanning personal care to household essentials with dermatological testing and a 20-step quality assurance process. Digital Infrastructure: DNB activated newly allocated 3.3–3.4GHz spectrum, adding 200MHz contiguous mid-band capacity to boost 5G performance for enterprise digitalisation. Trade & Tourism: Tourism Malaysia plans Penang–Kedah joint packages via a familiarisation trip for inbound agents, targeting tourist spillover through Penang International Airport. Public Policy & Subsidies: KPDN will review mechanisms to assist Peninsular island communities relying on private boats under BUDI MADANI, and refine SOPs to extend subsidised diesel fleet cards to eligible old folks’ homes. Anti-Drug Enforcement: JKDM dismantled an international drug syndicate, seizing 4.83 tonnes of drugs worth RM300.7m across multiple cases involving Port Klang and KLIA. Markets: HSBC set a year-end FBM KLCI target of 1,830–1,850 points, citing corporate earnings and support from energy and selective AI-linked sectors.

AI & Data Centres: Vertiv opened a Johor manufacturing facility in Senai to build power and cooling gear for high-density AI racks, with full capacity targeted for 2027 as Asia’s data-centre approvals get tighter. Semiconductors & Skills: Malaysia launched SemiconStart Malaysia to turn the National Semiconductor Strategy into incubation and commercialisation for higher-value chip ventures, while PM Anwar pushed faster workforce upskilling and finalising an AI governance bill. Fuel Subsidies & Cost of Living: Anwar said fuel-subsidy spending could reach up to RM40bil in 2026 if energy prices stay elevated, and BUDI Diesel expanded nationwide with extra quota options for higher-use consumers. Digital Payments Protection: E-wallet providers must compensate scam victims within seven working days if preventive steps aren’t implemented, as Malaysia tightens accountability in its digital economy. SME Financing for Government Work: microLEAP, CASB and HDC launched a nationwide push to improve SMEs’ access to SARANA P2P financing for government contracts. Aviation & Sovereignty: PAC recommended Khazanah+EPF keep at least 70% control of Malaysia Airports Holdings and urged earlier industry input on infrastructure planning. Tourism & Trade: Hong Kong Tourism Board renewed its Malaysia comms mandate for two years; Malaysia also extended its MotoGP hosting deal to 2031.