AGP Executive Report

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.

Malaysia-Netherlands Trade Push: The Netherlands’ ambassador says both sides are deepening cooperation in trade, semiconductors and water management, while Malaysia-EUFTA talks move into a key fourth round in Kuala Lumpur. Nuclear Readiness: Malaysia’s nuclear power decision hinges on preparedness across 19 areas, with the Energy Commission pointing to safety, radiation protection, waste management and regulatory readiness. Shrimp Trade Tension: Thailand says it will escalate Malaysia’s temporary shrimp import suspension to WTO/ASEAN if talks fail, while rolling out measures to protect farmers and prices. Aviation Safety Tech: MASSA signed an MoU with South Korea’s Braindrop to assess fire-control tech for lithium batteries and power banks, including a fire-resistant “Air-Pouch” for cabin risk mitigation. Johor Dairy Expansion: An Australian-backed dairy push in Mersing aims to build a fresh milk value chain and cut reliance on imported premium milk. SME Financing Boost: KUSKOP launched the RM205m SINAR programme to help MSMEs expand via multiple financing initiatives. Tourism Planning in Sabah: Sabah is drafting a long-term tourism blueprint to support Visit Malaysia Year and Visit Sabah Year 2027, targeting 4m arrivals. Education & Tech Events: FIRA Malaysia Cup 2026 kicks off in Kota Bharu with 1,465 participants, while KLIBF 2026 closes with a record 2.42m visitors.

SME Financing Push: KUSKOP via SME Corp Malaysia rolled out SINAR, a RM205m industry and business support programme for MSMEs, offering financing up to RM5m per scheme with profit/interest rates of 3%–5% to help firms expand and create jobs. TVET Cooperation: Malaysia and China’s MCIEA will channel nearly RM30m in scholarships, training and equipment, including 1,000 diploma placements worth about RM18m and 2,000 mobility/upskilling opportunities worth over RM10m. Sabah Tourism Blueprint: Chief Minister Hajiji said Sabah is drafting a long-term Tourism Blueprint to guide sustainable growth and connectivity, targeting 4m visitor arrivals for Visit Malaysia 2026 and preparations for Visit Sabah 2027. Energy & Gas Strategy: PM Anwar said Petronas talks with Turkmenistan could secure access to a major gas field, with his personal involvement to speed up the agreement despite election timing. Cross-Border Mobility for EVs: Tesla expanded Malaysia-Singapore-Thailand support coverage, adding roaming connectivity and cross-country service/warranty access, alongside the start of Model Y L deliveries in Malaysia. Regional Aviation Deal: Philippine Airlines is set to join the oneworld alliance as its 16th member, boosting Southeast Asia connectivity and passenger rewards integration. Food & Retail Branding: US Pizza entered the Malaysia Book of Records for the most halal-certified local pizza outlets, reinforcing its 100% halal positioning and local roots. Public Aid Reform: PM Anwar reiterated that queuing for government assistance should end, pushing for direct bank transfers to deliver aid with dignity.

TVET Push & Skills Funding: KESUMA will deploy a RM50m fund to scale TVET 2.0, while Anwar says government training and research institutions must start emerging-field programmes (AI, crypto, energy transition) from July, targeting 50–100 students per institution. National TVET Talent Matching: Ahmad Zahid launched GTPC, the country’s first integrated national TVET placement platform to link students, industry training and jobs. Malaysia–China TVET Link-Up: Malaysia and China’s MCIEA will fund about RM30m in scholarships, mobility training and equipment support for Malaysian TVET graduates. Energy Security Moves: MKN says fuel supplies are sufficient until end-August, with Petronas expanding global sourcing amid West Asia conflict; Amir Hamzah adds Malaysia is diversifying oil and coal suppliers to reduce disruption risk. Circular Economy Rule: Recycling facilities become mandatory for shopping malls’ business licence applications/renewals in phases starting this month. Tourism & Property: KL360 @ Menara GD (RM1.37b) is revived to restart stalled CBD living plans near the MRT. Food Value Chain: KPKM backs downstream rice products to address white rice market concerns, highlighted by a new local rice snack launch. Markets Watch: Gold futures seen trading US$4,400–4,500 next week; rubber expected to move sideways with a slight downward bias.

TVET Push: Prime Minister Anwar Ibrahim will officiate National TVET Day 2026, with new training for selected TVET students starting July in emerging fields like AI, crypto and energy transition—aiming to lift skills and wages. Energy Regulation: The Energy Commission is studying an energy-sector regulatory sandbox, targeting implementation in 2027 to support market liberalisation while protecting system stability. Energy Supply Risk Management: Finance Minister II Amir Hamzah says Malaysia is diversifying energy sources (including coal supply beyond Indonesia) to keep domestic supply secure even if disruptions hit single suppliers. Gold Outlook: Bursa Malaysia Derivatives expects gold futures to trade next week around US$4,400–US$4,500 per troy ounce as safe-haven demand rises amid uncertainty over US rates. Retail & Food Supply: Mydin says essential goods supply in Malaysia remains stable despite global supply-chain uncertainty, urging consumers not to panic buy. Sports Media Rights: TM’s Unifi TV secured rights to broadcast all 104 FIFA World Cup 2026 matches in Malaysia via a season pass and daily options. E-hailing Pressure: An advocacy group warns e-hailing driver earnings are being squeezed by fare structures, rising costs and platform commissions, calling for stronger regulation and capped service-provider fees. Football Governance: FAM denies claims it failed to table audited financial reports since 2016, while AFC audit concerns keep spotlight on governance and accountability.

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.