AGP Executive Report

Islamic Finance: Malaysia’s Islamic finance sector now accounts for 48% of financial assets, with its share expected to exceed half in coming years. Sukuk issuance reached RM160 billion in 2025, while Islamic bank financing grew 9.7%. Tech Investment: An unnamed global investor has indicated plans to invest US$50 billion in AI, technology and data centres in Sarawak and Peninsular Malaysia, potentially creating skilled jobs. Energy Transition: PETRONAS, TotalEnergies and Mitsui signed a joint venture to develop the Southern CCS Hub, targeting first injection by 2031 and capacity of up to five million tonnes of CO₂ a year. Investment Momentum: Selangor is targeting RM90 billion in investment this year after securing RM70 billion in the first half. Cost of Living: A new five-year plan sets out 429 measures to raise incomes and stabilise essential costs. Markets: Analysts see Bursa Malaysia trading with a mild positive bias next week, while the ringgit is expected to stay near RM4.07–RM4.08 per US dollar ahead of the US Federal Reserve meeting.

Investment: Selangor is targeting RM90 billion in investments this year, after recording RM70 billion in approved projects in the first half. The state contributed 26.5% of Malaysia’s GDP. Trade: Malaysia’s exports hit a record RM1.57 trillion in the first nine months, highlighting resilience in external demand. Cost of Living: A new five-year plan sets out 429 measures to raise incomes and stabilise prices across essentials including food, housing and transport. Digital Economy: Parcel deliveries could reach five million a day this year, as e-commerce growth expands opportunities for local businesses. Corporate Moves: Maxis plans to acquire Astro’s broadband business for up to RM83 million. Financial Inclusion: Bank Negara launched MyCoverageOKU, a platform to help people with disabilities find information on insurance and takaful options.

Industrial Growth: Anwar says Malaysia needs major policy shifts and closer government-industry collaboration, with Budget 2027 support to help SMEs scale up and reach global markets. Business Moves: Astro plans to sell its broadband assets to Maxis for RM83 million, freeing capital for its content and entertainment businesses. Digital Finance: Malaysia and Thailand’s central banks are joining Singapore’s BLOOM initiative to develop cross-border digital money payments. Energy Transition: Petronas, TotalEnergies and Mitsui have signed a joint venture deal to develop carbon-storage sites in Malaysia. Infrastructure: Johor’s data-centre expansion is driving up power demand, raising concerns about whether supply can keep pace. Trade: Malaysia’s exports reached a record RM1.57 trillion in the first nine months of 2026, supported by a sharp September jump.

Data Centre Boom: Johor’s data centres could consume 30 terawatt-hours of electricity a year by 2031—18% of Peninsular Malaysia’s supply—raising concerns over grid capacity and project delays. Corporate Moves: Astro has agreed to sell its broadband assets to Maxis for RM83 million, freeing cash and resources for its core media business. Trade & Growth: Exports reached a record RM1.57 trillion in the first nine months, with September shipments surging 54.5% year on year; third-quarter GDP grew 5.3%. Energy Transition: Petronas, TotalEnergies and Mitsui will develop an offshore carbon-storage hub, targeting first injections as early as 2031. Household Finances: Budget 2027 offers PTPTN repayment relief to more than 400,000 borrowers, including RM50 minimum monthly payments for graduates earning RM2,501 to RM3,000. Markets: The ringgit edged down to 4.0835 against the US dollar as investors awaited the US Federal Reserve’s next policy decision.

Semiconductor Supply Chain: Japan’s Tanaka Precious Metal Group and Malaysian recycler MEP plan a plant to recover gold and other metals from chip and electronics scrap, targeting an April 2029 start. MSME Reform: The government’s 2027 SCALE plan will focus on cash-flow protection, AI adoption, easier financing and updating the SME definition. Talent: Malaysia has brought home 5,234 skilled workers through its Returning Expert Programme since 2011, from 12,850 applications. Labour Costs: The Finance Ministry says employers’ mandatory 2% EPF contribution for foreign workers is relatively low; 78,129 employers now contribute for 1.75 million workers, with SMEs making up 86% of participating firms. Markets and Finance: The ringgit weakened against the US dollar ahead of the Federal Reserve meeting, while Malaysia retained its top global Islamic finance development ranking for a 14th year. Economic Growth: September exports topped RM200 billion for the first time, rising 54.5% year on year, while third-quarter GDP grew 5.3%.

Markets: The ringgit closed at 4.0815 against the US dollar as investors awaited next week’s Federal Reserve meeting. Islamic Finance: Malaysia retained its global lead, with Islamic capital-market assets reaching RM2.7 trillion and last July’s US$1.5 billion sukuk drawing orders of more than US$9.5 billion. Energy: The government is finalising a Natural Gas Roadmap to strengthen supply as demand rises from manufacturing and data centres. Export Growth: Malaysia is seeking new Turkmenistan opportunities for its oil and gas services firms, with 20 companies taking part in an industry event in Ashgabat. Industrial Investment: Perak’s RM700 million Kerian Industrial City is expected to create nearly 12,000 jobs and link regional manufacturing supply chains. Palm Oil: Prices are forecast to stay above RM4,600 a tonne in November as seasonal production declines tighten supply. SMEs: Mydin is helping local and disabled entrepreneurs reach wider markets through a campaign showcasing their products.

Markets: Bursa Malaysia’s FBM KLCI reclaimed 1,600, while the ringgit firmed as investors weighed resilient growth and fiscal plans. Westports reported quarterly revenue above RM1 billion and a 26% rise in profit. Digital Finance: Bank Negara Malaysia launched a tokenised bond and sukuk platform with round-the-clock settlement, a step toward modernising the country’s debt markets. Growth & Investment: Malaysia’s economy expanded 5.3% in the third quarter, supported by exports; Budget 2027 offers SMEs a one-percentage-point tax cut and additional financing. Business & Jobs: Retailers urged tougher action against contraband cigarette sales, warning they undercut legal small businesses. Employers also called for stricter checks on foreign-worker approvals, with Malaysians given priority for available jobs.

Markets: The ringgit closed slightly stronger at RM4.0790 against the US dollar, while the FBM KLCI reclaimed 1,600 as investors selectively bought shares despite continued foreign selling. Trade & Growth: Malaysia’s economy grew 5.3% in the third quarter, and exports hit a record RM1.57 trillion in the first nine months of 2026; September exports topped RM200 billion for the first time. Corporate Results: Westports’ third-quarter net profit rose 26% to RM342.6 million, on revenue up 42% to RM1.06 billion. Prices & Policy: Economists see 2026 inflation around 1.9% to 2%, but higher energy costs and weather-related food disruptions could add pressure next year. Budget 2027 offers business support, while a planned minimum-wage rise will raise cost considerations for employers. Industry: Malaysia has trained 22,849 semiconductor workers towards its 60,000-talent target for 2030, as the country seeks to deepen its role in the chip supply chain.

Workspace Investment: Common Ground will open a 30,000-square-foot flagship in Petaling Jaya’s Capitol in January 2027, adding premium offices and event space. Insurance Consolidation: A possible MS&AD buyout of LPI Capital could create Malaysia’s largest general insurer, with a combined 16.3% market share; talks remain preliminary. Growth and Exports: Malaysia’s economy grew 5.3% in the third quarter, while September exports surged 54.5% year-on-year to a record above RM200 billion, buoyed by demand for AI-related chips. Regional Development: Iskandar Malaysia is shifting focus towards skilled jobs and local talent, while Malaysia Airports plans capacity expansions in Penang and Kota Kinabalu to support traffic growth. Industry Outlook: Government programmes are helping lift natural rubber output, which fell 13% in 2025 amid labour shortages and higher costs. Business Risks: Oil near US$110 a barrel and ongoing haze underscore the exposure of household costs, supply chains and businesses to regional shocks.

Growth and Trade: Malaysia’s economy expanded 5.3% in the third quarter as September exports surged 54.5% year on year, topping RM200 billion for the first time. Iskandar’s Next Phase: The southern Johor region will focus on local talent, high-skilled jobs and helping Malaysian firms capture more value from incoming investment. Infrastructure: Malaysia Airports plans to keep attracting airlines and expand Penang Airport by 2028, while Kota Kinabalu Airport’s capacity is set to rise to 12 million passengers. The ECRL opens Dec 12 with a 30% economy-fare discount for its first month. Corporate Governance: Anwar said authorities froze RM4.3 billion and seized RM1 billion in assets linked to alleged corporate crimes from late 2022 to September 2026. Capital Markets: Power infrastructure firm SKA Capital aims to raise RM72.3 million in an ACE Market IPO to fund equipment, project bonds and working capital.

Data-Centre Rules: Malaysia plans a Digital Infrastructure (Data Centre) Bill next year and has launched a circular-economy framework to ease resource pressures and ensure projects benefit the local economy. Data centres in Johor and Selangor could require 8.39GW of power and 389 million litres of water a day by 2030. Trade and Growth: September exports topped RM200 billion for the first time, up 54.5% year on year, while third-quarter GDP grew 5.3%, fuelled in part by AI-chip demand. Investment and Industry: Aolani signed letters of intent for up to 500MW of AI data-centre capacity in Malaysia, as the country pushes local chip design and showcases homegrown chips with RM300 million in potential sales. Connectivity: ECRL fares are set to start at RM60, with the full Gombak–Kota Bharu journey from RM125; ticket sales are due to open next month. Household Finance: The government is preparing MediAsas, an affordable medical coverage plan for the M40 group, for launch in January 2027 after a surge in private policy cancellations.

Trade: Malaysia’s exports hit a record RM215.1 billion in September, up 54.5% year on year. The January–September trade surplus more than doubled to RM232.4 billion, though MITI warned that shifting trade policies and geopolitical tensions pose risks. AI Infrastructure: Singapore-founded Aolani signed letters of intent for up to 500MW of Malaysian data-centre capacity, adding to its planned 80MW and targeting operations from the second half of 2027. Digital Connectivity: Digital Nasional completed RM5.2 billion in Islamic financing to refinance its government-guaranteed credit facility and support its next phase under the dual-network model. Penang Development: The state secured approval for 280 federal projects worth RM33.22 billion, with RM2.68 billion allocated for 2027. Haze Costs: Indonesian fires are worsening regional pollution, with estimates warning the haze could cost Malaysia RM1 billion a month as companies face growing scrutiny.

Renewables: KKR plans to invest more than ₹6,000 crore in Petronas’ Gentari renewable-energy business in India, funding expansion without taking an immediate stake. Data Centres: Sarawak says proposed demand could be four to five times Malaysia’s planned or approved capacity, but will favour projects that create jobs and wider local benefits. Haze Costs: Indonesian fires have pushed up demand for air purifiers and oxygen equipment; Malaysia could face an estimated RM1 billion monthly economic hit. Growth: Malaysia’s economy grew 5.3% in the third quarter, while Budget 2027 sets aside a record RM57 billion for MSMEs. Corporate Deal: AkzoNobel agreed to sell its decorative paints business in Malaysia and six other markets to Nippon Paint for an enterprise value of about US$1.35 billion. AI Market Risk: A global sell-off and delayed data-centre listings are testing investor appetite for the sector.

Haze Costs: Indonesia’s fires have pushed Southeast Asia’s alert to its highest level, with analysts warning the crisis could cost Malaysia RM1 billion a month as businesses and households bear the impact. Growth: Malaysia’s economy grew 5.3% in the third quarter, with expansion across sectors and the ringgit strengthening ahead of the estimate. Budget 2027: The government’s RM83 billion development allocation is expected to support jobs and business activity, while a record RM57 billion in financing guarantees targets MSMEs; agriculture spending is also being urged to strengthen food security and price stability. Industrial Push: Penang Port has launched Malaysia’s first dedicated private 5G network, while a RM70 million precious-metal refinery in Batu Kawan aims to recover gold from industrial waste and secure a key semiconductor input. Household Finances: The MediAsas plan, due in January 2027, will offer affordable health protection for the M40 as medical costs rise.

Growth: Malaysia’s economy expanded 5.3% year-on-year in the third quarter, easing from 6% in Q2. Services and manufacturing led, while mining and quarrying contracted 4.9%; data-centre construction and export demand helped support growth. Tech Investment: Malaysia’s push up the semiconductor value chain gained momentum with six homegrown chip designs carrying RM300 million in potential sales. DayOne also secured US$3.67 billion to support its Malaysian AI infrastructure buildout. Digital Infrastructure: Penang Port became the country’s first port to deploy a private 5G network on dedicated spectrum, laying groundwork for automation and smarter operations. Business Support: Budget 2027 sets aside RM57 billion in financing guarantees for MSMEs, with matching grants aimed at helping smaller firms reach new markets. Haze Costs: Cross-border smoke is disrupting businesses and tourism as well as threatening public health, with estimates putting Malaysia’s economic losses at up to US$472 million a month.

Cocoa Industry: Malaysia’s cocoa exports rose to RM18.33 billion in 2025, but the country still imports much of its raw supply. The government wants more local growing and higher-value chocolate production. Public Investment: Budget 2027’s planned RM83 billion in development spending could support jobs and business activity, with transport, training, healthcare and industry among the priorities. Semiconductors: Selangor is targeting six chip and integrated-circuit firms for IPOs by 2030, while six locally designed chips are forecast to have RM300 million in sales potential. Digital Infrastructure: Penang Port has launched Malaysia’s first private 5G network on dedicated spectrum, supporting its push for smarter, more automated operations. Growth Outlook: Malaysia’s economy expanded 5.3% in the third quarter, with strong exports, including AI-related chip demand, helping offset weakness in mining. Regional Risks: Severe Indonesian fires have triggered ASEAN’s highest haze alert, disrupting daily life and raising concerns for Malaysian businesses and workers.