TMR

While the nation’s richest balloons in numbers, why equity quietly depreciates? 

WOULD the current period of global war, economic uncertainty and inflationary pressures feel more tolerable should we learn something remarkable about our fellow compatriots’ wealth? 

According to the latest Forbes Malaysia’s Rich List 2026, the country’s 50 richest individuals or families’ wealth jumped by nearly 30% against 2025, to a combined value of US$116 billion (RM460.52 billion). That is 24.7% or nearly a quarter of Malaysia’s GDP, or — more accurately in terms of wealth measurement — more than 10.5% of Malaysia’s household wealth. 

According to another list — Knight Frank’s Wealth Report 2026 — Malaysia’s billionaire population is expected to increase by a whopping 39% in five years time, ranking the country at 15th globally among nations with the fastest-growing billionaire cohorts. 

In the same period, the number of domestic ultra-high-net-worth individuals (UHNWIs) — those with assets exceeding US$30 million — is expected to grow by 20.1% to approximately 1,881 individuals. This marks a sharp rise from the 6.5% growth rate recorded between 2021 and 2026. 

Knight Frank attributed this rapid acceleration of wealth creation to the country’s strong economic expansion despite global uncertainty and energy price fluctuations. Its country head was quoted as saying that the rise in ultra-wealthy individuals is a testament to Malaysia’s economic resilience despite global headwinds. Really? The Malaysian economy, while exceeding the forecast range of 4% to 4.8%, grew by a paltry 5.2% last year.

Viewed from other angles, would the concentrated-wealth-expansion fares better for our overall sentiments on the national economy? 

Malaysia has long been celebrated as a global success story in terms of poverty eradication. From the widespread poverty around 70% under the colonial economy in the 1950s, the country has been moving up to cut it down to 49% at the start of the affirmative action, New Economic Policy (NEP) in 1970. 

Major reductions were made to 16.5% in 1990 propelled by the country’s export industrialisation policy in the following decade, further down to 8.5% in 2000 and an almost total eradication of 3.8% in 2010 with the rise of the middle-income economy. 

During the same period, the share of wealth of the top 1% (T1) earners in the country fell from 19.9% in 1970 and peak of 20.4% in 1973, to 20.1% in 1980, plateauing at 19.2% in both 1990 and 2000. It went further down to 17.5% in 2010 and dramatically down to 12.6% in 2020. 

These numbers were all plus points that, arguably, were aligning with the implementation phases of the NEP which essentially has a two-pronged objectives — reducing poverty and expanding the indigenous middle class and economic ownership. It has its hits and misses, but the NEP has generally been regarded as a hybrid success. Poverty eradication was a hit, but it missed on economic ownership. 

The NEP’s primary corporate goal was for Bumiputera to own 30% of corporate equity by 1990. Official figures showed it only reached 19.3%, and while the inter-ethnic gaps narrowed slightly, inequality within the Bumiputera community increased. Wealth often became concentrated among small elite groups with political ties, leading to criticisms of cronyism and patronage. 

However, should the latest facts tabulated on wealth concentration trouble our national psyche? 

In the Forbes’ list, there were only three Bumiputera individuals among Malaysia’s richest 50. That’s a mere 6% in terms of representation. These three individuals have a combined net worth of US$5.42 billion, a pathetic 5% share in terms of value. 

It could amount to nothing. Perhaps the concerns are misplaced. Maybe we shouldn’t be too worried about wealth distribution among the filthy rich. 

But the entrepreneur class knows that it means something and it deserves to be looked into. The small and medium enterprises (SME) ecosystems are largely built around principal business classes, and — like it or not — are inherently race-based. 

The bigger the business principal is, the bigger the potential shares for SMEs. So the smaller the business principal gets, the tinier opportunities trickle down to SME. 

That is definitely something worth looking into. 

• Asuki Abas is the editor of The Malaysian Reserve.

• This article first appeared in The Malaysian Reserve weekly print edition

The post The curious rise of Malaysian billionaire class appeared first on The Malaysian Reserve.

FLASH floods in Selangor should not be dismissed as just another round of bad weather. They are better seen as a recurring signal that something deeper isn’t working — whether that’s how cities are planned, how prepared we are for shifting weather patterns, or how well different agencies coordinate when things go wrong. 

What happened in places like Shah Alam, Klang and Sungai Buloh wasn’t simply a matter of heavy rain overwhelming drains. It pointed to a growing mismatch between rapid urban development and the environment’s ability to cope with it. If we are serious about reducing future flooding, we have to look at three things together: What triggered these events, how they affected people and the economy, and what long-term changes actually make a difference. 

This concern has also been reflected in recent remarks by the Sultan of Selangor, Sultan Sharafuddin Idris Shah, who made it clear that flooding shouldn’t just be treated as a recurring inconvenience anymore. Instead, His Highness framed it as a long-term structural issue that needs serious, sustained attention — not quick fixes every time water levels rise. 

Washed Out by Old Designs 

Time and again, the Klang Valley was hit by short but extremely intense bursts of rainfall. These downpours came fast and hard enough to overwhelm key transport routes in a short span of time. Major highways such as the NKVE near Sungai Buloh and sections of the Federal Highway heading into Shah Alam were brought to a standstill in several stretches. At the same time, residential areas such as Section 13 and parts of Klang were quickly submerged. 

But the rain itself is only part of the picture. 

A major issue is that much of Selangor’s drainage system was built for a different era. It was designed decades ago, when rainfall patterns were less extreme and urban density was far lower. Today, with heavier storms becoming more frequent and far more surfaces covered in concrete, the system is constantly under strain.

Land use changes make things worse. 

As urbanisation has spread, natural water-absorbing areas like forests, wetlands and open land have been replaced with roads, buildings and other impermeable surfaces. The effect is straightforward: Instead of soaking into the ground, rainwater now rushes straight into drains that were not designed for such sudden volume. Once those systems are overwhelmed, flooding becomes almost inevitable. 

Social, Economic Impact 

For everyday people, the impact was immediate and disruptive. Thousands of commuters were stuck in traffic for hours as key roads became impassable. Daily routines — getting to work, sending children to school, attending appointments — were thrown off almost instantly. 

Beyond inconvenience, there’s a real financial cost. When people cannot reach work, productivity drops across the board. Small businesses in affected areas often have to shut for the day, losing income and sometimes dealing with damaged stock. For daily wage earners and informal workers, even a single disruption can hit hard. 

Property damage adds another layer of long-term strain. Homes in flood-prone areas often suffer repeated issues — damaged flooring, ruined furniture, electrical repairs that keep piling up. Over time, this also drags down property values, making recovery even harder, especially for households without insurance or financial buffers. 

Health risks do not end when the water recedes. Floodwater can carry contaminants that lead to illness, while stagnant pools become breeding grounds for mosquitoes, increasing the risk of dengue outbreaks. Repeated exposure to such events also takes a quieter toll — stress, anxiety and a sense of uncertainty for families living in affected areas. 

On a larger scale, frequent flooding in the Klang Valley carries serious economic implications. Selangor is Malaysia’s most industrialised state and a key economic driver. When transport routes are disrupted and industrial zones are affected, supply chains slow down, logistics costs rise and business efficiency drops. Over time, this kind of instability can affect investor confidence and weaken the region’s competitiveness. 

Next Steps 

If Selangor wants to reduce future flooding in a meaningful way, short-term clean-up efforts won’t be enough. The response has to be structural, not reactive. 

Upgrading drainage systems 

The first priority is modernising drainage infrastructure. Systems need to be redesigned using current and future rainfall data, not outdated figures from decades ago. That means expanding capacity, improving river flow, and in some areas, introducing underground water storage to handle sudden surges. 

Just as important, these systems can’t operate in isolation. Rivers, urban drains, and coastal outlets need to function as one connected network. Without that coordination, improvements in one area may simply shift the problem elsewhere. 

Bringing nature back into urban planning 

Engineering solutions alone won’t solve everything. Natural systems need to be part of the solution again. This is where “sponge city” thinking becomes useful — designing urban spaces that can absorb, slow and store rainwater instead of rushing it away. 

That could mean more parks and green corridors, restored wetlands and surfaces that allow water to seep into the ground. Rivers that have been narrowed or polluted also need rehabilitation so they can safely carry higher water volumes during extreme rainfall. 

Stricter control over development 

Urban planning plays a much bigger role in flood risk than is often acknowledged. Some developments continue to be approved in areas that are naturally vulnerable to flooding. 

Stronger planning rules are needed to prevent construction in high-risk zones. Environmental impact assessments should carry more weight, and developers should be required to include proper water retention systems as part of any new project. Growth is necessary — but it has to be matched with the infrastructure to support it. 

Better forecasting, early warning systems 

Even with improved infrastructure, floods would not disappear entirely. That makes early warning systems essential. With better rainfall monitoring and predictive tools, authorities can alert the public earlier, manage traffic more effectively and reduce risks to both life and property. 

One of the biggest challenges in recent events has been how quickly conditions escalated. Better forecasting would give everyone — from authorities to residents — more time to respond. 

Governance, public responsibility 

Even the strongest infrastructure would not be effective without proper coordination. Flood management involves multiple agencies, and gaps in communication or delays in decision-making can weaken both prevention and response. A more centralised and streamlined management structure would improve accountability and efficiency. 

Public behaviour also plays a role. Something as simple as littering can block drains and worsen flooding significantly. Public awareness campaigns, combined with stricter enforcement of waste management rules, can help reduce these avoidable problems. 

Drowning in Poor Planning 

Flooding incidents in Selangor are a clear reminder that the current system is under growing pressure. 

The consequences are already visible: Disrupted routines, financial losses, health risks and mounting economic strain. If nothing changes, these disruptions are likely to become more frequent and more severe. 

The encouraging part is that solutions are available. But they require consistency and coordination — stronger infrastructure, smarter urban planning, better environmental management, improved forecasting and more effective governance. 

If these elements come together, Selangor can move toward a future where heavy rain is no longer treated as a crisis, but simply part of a system that knows how to handle it. 

• Intan Baha is the chief sub-editor/production editor of The Malaysian Reserve

• This article first appeared in The Malaysian Reserve weekly print edition

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