AGP Executive Report

Sustainability & Corporate Responsibility: Pansar Berhad planted 503 native trees at UPM Bintulu under a biodiversity drive, using Engkabang Jantung and Belian species to support long-term ecological benefits. National Narrative & Governance: A political scientist urged Malaysia to put more weight on Malaysia Day (Sept 16) to better reflect nation-building beyond Aug 31, linking “Merdeka” to governance quality. Energy & Markets: Petronas reported higher H1 profit and revenue, but flagged ongoing uncertainty from geopolitics and Middle East conflict that could keep pressuring costs across the value chain. Capital Markets: Fitch said listed hard-currency sukuk stayed resilient and largely investment grade in 1H26, with strong coverage across major exchanges. Agri-food & Food Security: PKPS and Agrobank signed a RM200m trade facility to boost Selangor’s agri-food supply, including a Selangor Halal Food Warehouse buffer. Digital & Mobility Tech: Alibaba’s AMAP Platform partnered with Malaysian geospatial firm Tuxuri to build spatial intelligence services for automotive, logistics and connected-vehicle use across ASEAN. Aviation & Connectivity: Malaysia Airlines is set to launch Karachi flights, with Malaysia-Pakistan talks also highlighting trade and investment opportunities. Policy & Compliance: Malaysia’s cyber readiness push stressed how AI is accelerating threats, while the TH RCI probe continues with calls for due process. Capital Markets Watch: Zetrix AI shares plunged 50% after Bursa issued an unusual market activity query; the firm said no undisclosed corporate development explained the move.

Agri & Food Security: MAHA 2026 opened with a push for sustainability and renewed focus on national food self-sufficiency, while PKPS and Agrobank signed a RM200m trade facility to boost Selangor’s food supply chain, including a Selangor Halal Food Warehouse buffer for disruptions. Policy & Governance: Prime Minister Anwar Ibrahim said investigations into Tabung Haji losses must be evidence-based and taken to court when wrongdoing is proven, even if it draws criticism. Haze & Public Health: National Day organisers advised N95 masks for high-risk groups and provided masks for 10,000 participants as haze risk continues. Digital Economy & Compliance: Malaysia introduced a photo-verification step for certain Employment Pass and Dependant Pass applications via MDEC/ESD systems, using eVISA/MyVisa checks. Fintech Incentives: Forest City SFZ clarified its 5% fintech corporate tax rate applies under specific eligibility rules and is separate from Malaysia Digital incentives. Business & Markets: KLCI futures are tipped to trade higher next week, with investors watching Fed signals. Crime & Scams: Bank Negara warned the public about STR/Sara impersonation calls using lookalike hotlines. Trade & Exports: HDC led 15 halal exporters to Fi South America 2026 as halal exports to Brazil rose to an estimated RM860.45m in 2025.

Nepal Floods Response: Malaysia is coordinating aid delivery to the Nepal-Tibet disaster, with Prime Minister Anwar saying the National Security Council is deciding whether to deploy the SMART search-and-rescue team or send aid, while the Foreign Ministry continues round-the-clock verification of Malaysians reported uncontactable; latest updates cite 36 Malaysians in Tibet reported safe, with identities still being cross-checked against Nepal lists as the death toll climbs past 500. Education & Skills: Selangor’s Sultan Sharafuddin urged UiTM to keep academic programmes relevant to global shifts, naming digital tech, AI, engineering, medicine, finance and law as priority areas for graduate competitiveness. Housing Supply: Sarawak targets 20,000 affordable homes by 2030, with the state pushing closer collaboration with developers and industry to improve quality and access. Islamic Leadership & Resilience: Anwar and Sarawak’s deputy premier Awang Tengah stressed integrity, anti-corruption and media literacy, including verifying information before sharing. Business & Markets: MIDA approved RM218.5b in investments in 1H 2026, up 11.7%, expected to create 99,030 jobs; in corporate news, IOI Corp posted higher FY2026 net profit, while Axiata’s 2Q profit fell to RM42.52m. Agri & Food Systems: FAMA expanded AgriMatch to better align farm supply with consumer demand, and KPKM launched KENDIRI to encourage home gardening as a resilience measure. Environment & Haze: Indonesia reported hazardous air pollution in multiple locations and said it is coordinating with Malaysia on weather modification to tackle transboundary haze.

Medical Devices Push: Deputy PM Ahmad Zahid says Malaysia aims to surpass RM50bil in medical device exports by 2030, with growth to shift toward higher-value products, more local MedTech champions and a bigger share of managerial/technical jobs. National Economy & Investment: MIDA reports RM218.5bil in approved investments in 1H 2026 (+11.7% y-o-y), with 2,746 projects expected to create 99,030 jobs; foreign investors lead at RM126.9bil. Infrastructure for KL Traffic: Cabinet agreed in principle to the Bandar Malaysia–Seri Kembangan Elevated Highway, linking major expressways to ease congestion in Greater Kuala Lumpur. Banking Update: RHB posts marginally higher 2Q net profit to RM807.15m, citing higher income and lower expected credit losses. Haze Response: Selangor steps up readiness as API readings remain unhealthy, with escalating measures including activity limits and possible school closures if conditions worsen. Horticulture & Food Resilience: KPKM launches KENDIRI to encourage home farming as a resilient, pesticide-reduced food supplement. Regional Connectivity: Batik Air to start Batam–Penang direct flights from Oct 18, boosting tourism links with Indonesia’s Riau Islands. Disaster Aid: PM Anwar says Malaysia is coordinating aid to Nepal after flash floods, including whether to deploy SMART or provide assistance. Nepal Floods: Death toll in Nepal-Tibet floods continues to rise, with hundreds of foreigners among the missing.

Nepal-Tibet Disaster: Flash floods and landslides on the Nepal-China border have killed at least 359 people, with more than 1,400 missing as rescuers battle destroyed roads, power and communications, and warnings of a new flood risk from lakes that could burst. Malaysia Legal Watch: Former prime minister Ismail Sabri was charged with allegedly failing to declare assets to MACC, pleaded not guilty, and faces up to five years in prison if convicted. OIC Diplomacy: Foreign Minister Mohamad Hasan urged OIC members to reject Israel’s US$2.3bil illegal settlement scheme and push for embargoes, boycotts and sanctions, alongside calls for a ceasefire and humanitarian access in Gaza. Banking/CSR: Global IME Bank pledged NPR 50 million to Nepal’s PM disaster relief fund for search-and-rescue, medical care and rehabilitation. Corporate Earnings: IOI Properties’ FY2026 net profit jumped to RM2.15bil; Petron Malaysia posted a 2Q net loss of RM34.48mil amid oil-price volatility and supply disruptions. EV Charging Push: Chinese smart charging firm LINCHR says it’s localising technology for Malaysia’s EV growth and partnering with a local charger maker. Healthcare Growth: IHH Healthcare’s 2Q net profit rose 29% to RM573mil on stronger hospital demand and acquisitions.

Nepal-Tibet Disaster: Flash floods and landslides on the Nepal-Tibet border have killed at least 165 people, with more than 1,300 reported missing, including hundreds of foreign tourists; Nepal police say 162 bodies have been recovered while China’s Tibet side reports 558 missing, as rescuers race to reach cut-off areas. Sabah Revenue Fight: STARSabah chief Dr Jeffrey Kitingan urged PM Anwar to immediately implement Sabah’s 40% revenue entitlement under MA63, warning delays could spark a “referendum-like reaction” in the next general election. Innovation & Regulation: PM Anwar called for an end to “old bureaucracy” that slows commercialisation and tech-focused university faculties, citing faster AI faculty approvals as a model. Business Sentiment: DOSM reported Malaysia’s business confidence turned positive in 3Q 2026, with an overall indicator of +5.9% versus -1.8% in 2Q. EV Charging Push: Chinese smart charging firm LINCHR is partnering with local player Swift Bridge Technologies to localise EV charging infrastructure as Malaysia’s EV market is expected to accelerate. Banking & Compliance: Setel said it has completed remediation after Bank Negara Malaysia imposed a RM637,000 penalty over sanctions database update gaps. Infrastructure Approval: Cabinet approved in principle the Bandar Malaysia–Seri Kembangan elevated expressway to improve Greater KL connectivity and logistics.

Fuel Prices & Inflation Watch: Malaysia’s automatic fuel pricing lifted unsubsidised Ron95, Ron97 and diesel by 5 sen for Aug 27–Sept 2, citing persistently high global crude and tighter supply risks amid US-Iran sanctions fears. Regulatory & Banking Compliance: Bank Negara Malaysia fined Setel Ventures (RM637,000) and Standard Chartered Malaysia plus Standard Chartered Saadiq (RM132,000) for sanctions screening and database update lapses under targeted financial sanctions rules. ASEAN Green Jobs: Malaysia will lead the ASEAN green jobs agenda for 2026–2030, pushing a just and inclusive transition that focuses on workforce skills and fair implementation. Higher Education Policy: Higher Education Minister Zambry Abd Kadir said Malaysia needs a comprehensive review of higher-education laws, including AUKU, to better support academic freedom and student empowerment. Corporate Moves: IJM Corp redesignated Lee Teck Yuen as non-executive chairman effective Aug 27. Disaster Impact: Nepal-Tibet flash floods killed at least 157 and left hundreds missing, including Malaysians among foreign tourists; Malaysia’s embassy in Kathmandu is monitoring reports. Business & Trade Logistics: Macao airport began pilot cargo palletisation via Hengqin, with Malaysia and the Philippines listed among destinations.

Telekom Malaysia 80th Anniversary: PM Anwar Ibrahim urged Malaysians to reject a “culture of contentment” as TM marks 80 years of expanding digital access and capability-building nationwide. Digital Economy Regulation: The Cabinet directed MoF and the Communications Ministry to introduce registration requirements for e-commerce platforms to better protect consumers, especially for electrical/electronic safety and halal compliance. Airport Media Upgrade: Malaysia Airports launched an RFI to turn its airport advertising estate into a more data-driven, digitally integrated media ecosystem across KLIA terminals and other airports. Haze Health Readiness: The Health Ministry said it will step up manpower, monitoring and facilities as unhealthy Air Pollutant Index readings rise, warning high-risk groups to wear masks and limit outdoor activity. Domestic Violence Focus: Penang reported 349 domestic violence cases investigated last year, with Lim Hui Ying stressing prevention and early risk identification. Property Earnings: KLCC Property Holdings’ 2Q net profit rose to RM204.42m, supported by improved rentals and lower financing costs after sukuk refinancing. Tourism Trade Push: MATTA targeted 150,000–180,000 visitors for its 59th fair and urged Budget 2027 tax incentives and more tourism infrastructure spending. Money Markets Milestone: UOB Malaysia, RHB and Maybank executed the first MYOR-based three-month interbank transaction, supporting risk-free rate adoption. Logistics Pressure: Shipping Association Malaysia warned Malaysia’s shipping and logistics ecosystem needs more investment as gateway cargo grows but trucking capacity shrinks. Palm Oil Watch: Palm futures fell over 1% on weaker demand and rising inventories concerns, as soyoil prices undercut competitiveness. Global Disruption: Nepal’s flash floods after an avalanche left at least eight dead and 384 tourists missing, including Malaysians.

Agri-tech Focus: Agriculture and Food Security Minister Mohamad Sabu says agri-tech success should be judged by higher yields and farmers’ income, not just system sophistication, highlighting Malaysia’s SMART SBB smart padi programme. Healthspan Push: Amway Malaysia ramps up preventive healthcare messaging for an ageing society, citing strong uptake of its health screening and a Healthspan Summit. Youth Skills Pipeline: Akademi Dalam Industri (ADI) expands hands-on training via school farms, using structured logbooks and industry-aligned assessments to prepare students for work. International Students’ Impact: EMGS estimates about 167,000 international students add roughly MYR20bn (US$5bn) annually to Malaysia’s economy through tuition and living spend. E-Commerce Act Drafting: Domestic Trade deputy minister Fuziah Salleh calls to expedite a new E-Commerce Act to close consumer-protection gaps and better regulate cross-border sellers and platforms. Creative Economy Jobs: Batik Seri MADANI and MFIX aim to commercialise local creative works and connect youth talent to producers, investors and buyers. Regional Mobility & Tourism: SmartTravelAsia’s poll preview points to Malaysia Airlines’ cabin service strength and rising regional travel demand. Energy & Trade Context: A report on Southeast Asia’s response to the global oil shock weighs hydrocarbon mitigation against low-carbon and biofuel acceleration.

Malaysia Digital Economy & Regulation: Malaysia is pushing to expedite a new E-Commerce Act to close gaps in the 2006 framework, strengthen consumer protection, and ensure MSMEs and local traders can compete fairly—especially against foreign sellers and platform-driven market influence. Creative Industry Policy: Prime Minister Anwar Ibrahim urged filmmakers to work with fewer constraints, even as Malaysia continues to grapple with censorship and court-backed film bans while a national film policy is being drafted. Data Centres & AI Infrastructure: Malaysia is positioning itself as a distinct digital-infrastructure strategy, with MIDA approving RM144.4bn in data-centre and cloud-computing investments (2021–mid-2025), and the key challenge now is turning build-out into local value-added. Low-Altitude Economy: MITI will roll out an “Unmanned Valley Ecosystem” pilot under the 13MP, using universities as testbeds for drones, air logistics and related services. Trade & Agribusiness: USDA opened applications for a Southeast Asia agribusiness trade mission (Dec 7–9) linking US exporters with buyers in Singapore, Malaysia and Thailand. Maritime Security: Indonesia, Malaysia and Singapore reaffirmed commitments to keep the Straits of Malacca and Singapore “free, open and safe” for shipping. Environment & Coastal Resilience: Malaysia reported restoring about 3,965 hectares of mangroves via 9.3m trees, alongside ongoing coastal ecosystem rehabilitation efforts.

AI & Chips: Nvidia is paying US$6b to license open-weight AI model-building tech from Poolside and hiring 100+ engineers, signalling a US shift toward open ecosystems amid China’s fast-rising AI competition. Energy Storage & Manufacturing: Malaysia and Indonesia launched lithium-ion battery pouch cell work at the 4th ASEAN Battery Technology Conference in Sepang, pushing cross-border supply chain partnerships. Insurance Growth: Allianz Malaysia reported H1 2026 total business volume up 7% to US$807.9m, with gross written premiums rising 11.5% as motor, bancassurance and employee benefits drove gains. Property & Capital Markets: Sime Darby Property said 1H 2026 AUM hit RM5b and 2Q net profit rose to RM322.03m, while SunCon’s 2Q net profit climbed to RM103.58m on stronger contributions and a higher order book. Tourism Promotion: Tourism Malaysia signed an MoU with Foodie Media to boost Visit Malaysia 2026-2027 marketing, leveraging digital reach to push Malaysia’s food and experiences. Regulation Watch: MOH revoked a cosmetic product notification after hydroquinone was found, warning unsupervised use can cause skin side effects. Market Pulse: Bursa Malaysia ended marginally lower as investors waited for earnings direction, with the FBM KLCI seen trading in a tight range.

Film & Creative Freedom: PM Anwar Ibrahim urged a more accommodating, freer environment for Malaysia’s arts and filmmaking, while keeping cultural values and morals intact, as FINAS’ Damansara Tower opened and local film collections under the Compulsory Screening Scheme hit RM253.31m in 2025 (RM111.83m as of Aug 10). Market Watch: Bursa Malaysia ended slightly lower, with analysts pointing to a likely 1,725–1,745 trading range as investors await earnings and a public holiday dampens sentiment. Tech & Finance: Zetrix AI posted 2Q net profit of RM269.25m on higher AI and Web3-related subscriptions and services, while Khazanah said it has deployed RM15b of its RM25b GEAR-uP domestic investment commitment. Tourism Promotion: Tourism Malaysia signed an MoU with Foodie Media to push Visit Malaysia 2026-2027 via digital content and culinary-focused campaigns. Regulatory & Consumer Safety: MOH revoked the cosmetic notification for Remy Laure Soothing Cream after hydroquinone (a scheduled poison) was found, warning of risks from unsupervised use. Corporate Moves: Geohan won a RM37m KL high-rise earthworks/piling contract; Batu Kawan reported a 3Q net loss tied to a RM1.62b impairment on its UK associate investment.

Palm Oil Pricing Power: Indonesia is moving to launch a new commodities exchange (including palm oil) from Jan 1, aiming to set global price benchmarks—yet analysts say it may not easily displace Malaysia’s FCPO futures as the key reference for pricing and hedging. Education & Skills: Selangor MB Amirudin Shari denies a viral claim of a special SUKMA holiday, saying any official decision will come at the closing ceremony; meanwhile, ANGKASA pushes digital transformation for student cooperatives via e-commerce, e-wallets and QR payments to boost Gen Z participation. Labour & Migration Governance: Malaysia’s FWCMS process for foreign worker recruitment is under scrutiny after a list of 25 Nepal manpower companies sparked syndicate concerns and calls for clearer operating rules. Business & Trade: MATRADE reports Malaysia’s total trade surged 24.7% to RM2.16 trillion in Jan–July 2026, while Malaysia’s push to become a global Muslim travel hub ties tourism growth to halal innovation and tech-enabled local enterprise. Public Safety & Enforcement: Indonesian police arrest 72 people over forest and peatland fires as haze spreads to Malaysia; Malaysia also steps up compliance via KPDN’s “compliant markets” programme in Terengganu. Tech & Industry: Tokuyama expands polysilicon supply with new chip-material facilities in Vietnam and Malaysia to diversify its production base.

ESG Push for IPOs: Malaysia’s IPO market is moving into a new phase as ESGpedia warns investors will increasingly discount weak sustainability disclosures, especially after the National Sustainability Reporting Framework expands to all Main Market issuers. Cost-of-Living Focus in Budget 2027: Communications Minister Fahmi Fadzil says Budget 2027 will tackle cost-of-living more comprehensively, factoring crude oil and wider geopolitical risks, while also aiming to attract investment. Flood Response for Klang Valley: Selangor and the federal government agreed on five measures to cut flood incidents, including dam capacity reviews, new retention ponds, and coordinated river dredging, with a technical meeting set within two weeks. Datasonic Deal Dropped: Malaysia has ruled out acquiring Datasonic, the passport and MyKad supplier, after NexG submitted an indicative price—leaving identity-security services to continue under existing arrangements. Tourism Growth via Halal Ecosystem: Deputy PM Ahmad Zahid says Malaysia should evolve from a Muslim-friendly destination into a global hub for the Muslim travel economy, linking tourism with halal innovation, trade and local enterprises. Digital Payments for Cooperatives: ANGKASA urges student cooperatives to adopt e-commerce, e-wallets and QR payments to better engage Gen Z. WITEX Business Momentum: At WITEX 2026, the government also highlighted the economic pull of international students and Muslim travel demand. Selangor SUKMA Incentives: Selangor may declare an occasional holiday if its contingent wins overall champions at SUKMA 2026.

Malaysia–Pakistan Security Push: Pakistan’s President Asif Ali Zardari and PM Shehbaz Sharif met Malaysia’s home affairs leadership in Islamabad, calling for tighter cooperation on counter-terrorism, narcotics control, cybercrime, and human trafficking, with intelligence-sharing and a joint working group on the table. Malaysia–Pakistan Trade Access: The leaders also discussed boosting bilateral trade and exploring greater market access for Pakistani staples like rice, potatoes, wheat, poultry and animal feed, alongside plans to increase flight connectivity. E-Commerce Regulation Upgrade: Malaysia’s Domestic Trade and Cost of Living Ministry says a new Electronic Commerce Act to replace the 2006 law is being drafted to strengthen platform and seller accountability, with a bill expected in the upcoming parliamentary session. Diesel Subsidy Tweaks: Domestic Trade Minister Armizan Mohd Ali says improvements to the targeted diesel subsidy mechanism will be announced in less than a month, after feedback from Sabah and Sarawak. Foreign Worker Applications Go Online: Industry groups welcomed the shift to online foreign worker applications via FWCMS, citing faster approvals and clearer status tracking. MSME Cost Relief: KUSKOP announced measures to help MSMEs manage rising costs, including longer renewal periods for selected licences. Tech & Consumer Launch: vivo confirmed a Sept 3 Malaysia launch for the V80 Lite 5G, spotlighting a 10,000mAh battery. Regional Business Diplomacy: ASEAN Records and ASIA Records (Malaysia-based) opened new offices in Jakarta and Hong Kong, expanding verification programmes across Asia.

Malaysia-Brunei Diplomacy: PM Anwar Ibrahim wrapped up ALC-27 in Brunei, thanking the host country and witnessing an MoU on disaster management; he was also conferred a Brunei honour and discussed speeding up border demarcation (about 50% done) plus easing people-movement and immigration frictions. Identity & Sovereignty: Malaysia’s National Security Council says the government will not take over passport and MyKad supplier Datasonic, despite earlier reports of an indicative RM7.5bn valuation. Trade Momentum: MATRADE reported Malaysia’s total trade hit RM2.16trn in Jan–July 2026 (+24.7% y/y), with exports up 29.2% and a trade surplus jumping 138.7% to RM170.5bn. EV Infrastructure: Tesla opened a new V4 Supercharging site in Ipoh (AEON Mall Kinta City), positioning it as a key link for cross-country travel. Security Cooperation: Pakistan and Malaysia agreed to deepen law enforcement, counterterrorism, anti-narcotics and cybercrime collaboration, including a joint working group and intelligence-sharing. MSME Cost Relief: KUSKOP said it’s extending renewal periods for about 55 licences/permits to cut red tape, alongside new entrepreneurship support centres. Energy & Subsidy Enforcement: LKIM will crack down on fishermen associations misusing subsidised diesel, including shutting down non-compliant fuel sales centres. Tech & Industry: Malaysia targets locally manufactured ARM chips to enter production by 2030, with token-based access and a push to build domestic manufacturing and engineer capacity. Customs Crackdown: Port Klang customs seized 1,240 sex toys after a container was declared as other goods, highlighting false declarations.