Economy

by AKMAR ANNUAR

THE Department of Agriculture (DOA) will hold further talks with China’s customs authority on a proposed land-route arrangement for Malaysia’s fresh durian exports, as the current protocol does not cover shipments passing through transit countries.

The department, under the Agriculture and Food Security Ministry, said the existing export protocol between Malaysia and China is based only on routes already agreed by both countries.

“The Department of Agriculture has never permitted the use of land routes for fresh durian exports to China at this time, until a new protocol or amendment to the existing protocol is finalised and agreed by both parties,” it said in a statement.

The clarification follows issues concerning the export of Malaysian fresh durians to China via land routes. 

DOA said it had received feedback from the General Administration of Customs of the People’s Republic of China that such exports, involving transit through other countries, are not covered under the current protocol.

The department said further engagement with the Chinese authority is necessary to ensure Malaysia’s market access is preserved while meeting international trade and regulatory requirements.

It said the proposed land-route mechanism would need to address traceability, biosecurity, phytosanitary compliance and supply-chain integrity, particularly as shipments would cross several countries before reaching China.

DOA will also hold engagement sessions with the Transport Ministry and the Malaysian Agriculture Office in Bangkok to obtain detailed information on logistics requirements, cross-border agreements, transit procedures and regulatory controls that must be observed if land-route exports are allowed in future.

The move comes as Malaysia seeks to strengthen its durian export ecosystem and expand access to overseas markets, particularly China, which remains a key destination for the fruit.

At the same time, DOA said it is aware of industry interest in developing value-added durian products for export, including fresh pre-cut durian.

However, it said any proposal to export such products must be backed by comprehensive scientific and technical studies to ensure quality assurance, food safety and product shelf life throughout the distribution process.

For this purpose, DOA has been working with the Malaysian Agricultural Research and Development Institute to carry out the necessary research before any proposal on pre-cut durian exports is submitted to the authorities of importing countries for further consideration.

The department said it remains committed to strengthening the competitiveness of the national durian industry and widening export market access through compliance with international standards, stronger trade relations and close cooperation with stakeholders.

Malaysia secured approval to export fresh durians to China in 2024, adding to the existing market for frozen whole durians and durian-based products.

The department said adherence to agreed protocols is important to protect the country’s export credibility and prevent disruptions to market access.

It added that any expansion of export routes or product categories must be undertaken through official arrangements recognised by the relevant authorities of both countries.

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by GLORIA HARRY BEATTY

THE Johor-Singapore Special Economic Zone (JS-SEZ) recorded RM76.98 billion in approved investments in 2025, with more than half already progressing to implementation, as the Economy Ministry said development of the economic zone had continued despite the master plan yet to be launched. 

Economy Minister Akmal Nasrullah Mohd Nasir said JS-SEZ recorded RM76.98 billion in approved investments in 2025 alone.

“Fifty-seven per cent of the cumulative approved investments to date have already progressed to the implementation stage. In the first quarter of 2026, JS-SEZ also recorded RM5.49 billion in approved investments. 

“From January to May 2026, IMFC-J managed 285 investment enquiries with identified potential investments totalling RM74.12 billion. These figures show that investor confidence in JS-SEZ remains strong and that its benefits are being translated into actual projects, rather than remaining merely a blueprint,”  he said in a statement today.

The ministry stressed that development of the cross-border economic zone had not been delayed by the pending launch of the JS-SEZ Master Plan. It said the Federal Government, together with the Johor state government and implementing agencies, continued to facilitate investments, develop infrastructure, talent and workforce, as well as strengthen customs, immigration and cross-border connectivity. 

The ministry said engagement with investors and strategic partners continued to be strengthened through initiatives including the JS-SEZ Executive Forum on July 1, attended by the Economy Minister, which demonstrated Malaysia’s serious cooperation with Italy and Europe. It also held meetings with delegations from France, Germany, the Nordic countries, Taiwan and Canada, as well as diplomatic representatives from 35 countries based in Singapore.

It added that supply chain development was further strengthened through the Micron–OCBC JS-SEZ Supplier Event 2026, which brought 30 suppliers from South Korea, Japan and Taiwan to Johor to explore investment opportunities and industrial collaboration with local companies. 

Preparations for the Johor-Singapore Rapid Transit System (RTS) operations also demonstrated that the JS-SEZ development agenda remained on track and would continue to be driven consistently.

The ministry said the Federal Government had never compromised on Johor’s future and remained focused on launching the JS-SEZ Master Plan at the appropriate time with a strong implementation foundation that would deliver lasting benefits to the people of Johor, attract more high-quality investments and position the state as a leading regional economic and investment hub.

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PUTRAJAYA — Malaysians spend more than five hours a day on unpaid household chores and caregiving, with adults in their prime working years shouldering the biggest share of domestic responsibilities, according to the Department of Statistics Malaysia (DOSM).

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said Malaysians spend 21.7 per cent of their day, or an average of five hours and 12 minutes, on unpaid domestic and care work.

Findings from the National Household Indicators Survey (NHIS) 2025 showed that those aged between 45 and 54 devote the most time to unpaid work at five hours and 43 minutes a day, followed by the 25 to 44 age group (five hours and 35 minutes) and those aged 55 to 64 (five hours and 31 minutes).

In contrast, individuals aged between 15 and 24 spend the least amount of time on unpaid work, averaging three hours and 53 minutes a day.

“This reflects the greater domestic and caregiving responsibilities typically borne by people in the middle stages of life,” he said in a statement today. 

Mohd Uzir added that Malaysians also spend more time on unpaid domestic and care work than the average in member countries of the Organisation for Economic Co-operation and Development (OECD).

The survey found that Malaysian women spend an average of six hours and seven minutes a day, or 25.5 per cent of their daily time, on unpaid domestic and care work, compared with about 17 per cent in OECD countries.

Men, meanwhile, devote 18.1 per cent of their day to such work, compared with around nine to 11 per cent internationally.

“These findings show that the burden of unpaid work remains high in Malaysia for both men and women, with women continuing to shoulder a greater share of the responsibility,” he said.

The survey also found that persons without disabilities spend an average of five hours and 12 minutes a day on unpaid work, compared with two hours and 59 minutes among persons with disabilities (PwDs).

“Although persons with disabilities spend less time on unpaid work, they remain actively involved in domestic and caregiving activities, underscoring the need for a more inclusive social support system,” he said.

Mohd Uzir said the findings provide an important basis for strengthening policies on social development, work-life balance and gender equality, while recognising the value of unpaid domestic and care work in enhancing the well-being of the people and boosting national productivity. — BERNAMA

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by AZALEA AZUAR

DOMESTIC Trade and Cost of Living Minister Datuk Armizan Mohd Ali will present a new legal framework to replace the Electronic Commerce Act 2006 (Act 658) to the Cabinet next week, with one of the key proposals extending Malaysia’s jurisdiction to foreign-based e-commerce platforms.

He said the proposed framework, developed based on recommendations by the Malaysia Competition Commission (MyCC) and independent consultants appointed by the Domestic Trade and Cost of Living Ministry (KPDN), aims to strengthen the country’s e-commerce regulatory framework.

The current Act serves primarily as a foundational law and lacks comprehensive provisions to regulate the e-commerce ecosystem.

“I cannot go into detail because I must first present them to Prime Minister Datuk Seri Anwar Ibrahim before they are made public.

“However, I can say that there are at least 10 key policy proposals that will be included in the Cabinet memorandum next week,” he said at the launching ceremony of the “Jom Beli Selamat!: Click Without Worry” Campaign today.

If the proposals are approved by the Cabinet, Armizan said the ministry will work with the Attorney General’s Chambers to draft amendments to the law. 

The proposed framework will extend Malaysia’s jurisdiction to foreign-based e-commerce platforms, clearly define the responsibilities of platforms, sellers and consumers, and regulate both business-to-business (B2B) and business-to-consumer (B2C) transactions across the e-commerce ecosystem.

Armizan said consumer protection remains a key concern, despite a decline in e-commerce-related complaints received by KPDN. 

The ministry recorded 8,475 complaints in 2025, down from 11,463 in 2021, with the most common issues involving late deliveries and products that did not match their advertised descriptions or quality.

Additionally, Armizan said the government cannot tackle the cost-of-living issue by focusing solely on keeping prices low, as economic activity is essential for businesses and the broader economy. 

He said this is why the government has adopted a two-pronged approach.

“First, we seek to stabilise the prices of goods and services. Equally important, our second priority is to increase the people’s income.

“We want prices to remain stable while ensuring that Malaysians have greater earning opportunities,” he added.

The “Jom Beli Selamat!: Click Without Worry”campaign was launched by Shopee Malaysia, the Royal Malaysia Police (PDRM) and KPDN to promote a safer and more trusted e-commerce ecosystem. 

The launch was in conjunction with the Shopee Seller Summit 2026, which also aims to strengthen the digital economy by equipping micro, small and medium enterprises (MSME) with knowledge and skills in areas such as artificial intelligence (AI), digital marketing, content creation, logistics and business management to enhance their competitiveness.

Themed “Charting the Future of Intelligent Commerce”, the summit brought together sellers, brands and ecosystem partners to explore trends shaping the digital economy. 

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by HIDAYATH HISHAM

MORE than RM500 million in microfinancing has been approved since mid-May, benefiting over 30,000 entrepreneurs, as the government moves to cushion small businesses from rising logistics and input costs.

Finance Minister II Datuk Seri Amir Hamzah Azizan said the government is closely monitoring the impact of prolonged geopolitical tensions in West Asia on the global economy, including cost pressures faced by hawkers, micro traders and micro, small and medium enterprises (MSMEs).

“The government is aware that these pressures are also felt by hawkers and micro, small and medium enterprises, which are among the groups most vulnerable to cost shocks,” he told the Dewan Rakyat today.

Amir Hamzah was replying to Kalabakan MP Datuk Andi Muhammad Suryady Bandy, who asked what immediate steps had been taken to ensure small traders, hawkers and MSMEs are not forced to shut down due to global economic pressure.

He said the government had strengthened access to financing for MSMEs through loans and government financing guarantees worth RM15 billion via banks and government agencies.

This includes more than RM5 billion in microfinancing through Amanah Ikhtiar Malaysia, Agrobank, Bank Simpanan Nasional, Bank Rakyat, Mara and Tekun Nasional.

Amir Hamzah said the facilities allow small traders to obtain working capital to sustain their businesses despite higher costs.

For the period between May 15 and June 26, 2026, more than RM500 million in microfinancing had been approved, benefiting over 30,000 entrepreneurs.

He said the government had also launched the RM5 billion Skim Jaminan Bantuan Kerajaan MADANI through Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) to improve MSME access to financing.

Between May 15 and June 30, SJPP approved RM219 million in financing guarantees, benefiting more than 300 MSMEs, particularly in the agro, construction, logistics and tourism sectors.

SJPP is also working with banks to facilitate restructuring, rescheduling and targeted repayment assistance for businesses facing difficult conditions.

Amir Hamzah said Bank Negara Malaysia is also providing RM5 billion under the SME Stabilisation Relief Facility (SME SRF) to support affected MSMEs.

Since its launch in mid-May 2026, almost RM1 billion has been approved to more than 1,500 MSMEs.

He said about RM4 billion remains available under the facility, providing sufficient financing space for future applications.

In a supplementary reply, Amir Hamzah said SJPP provides guarantee coverage of up to 80%, compared with the usual coverage of about 70%, with the guarantee period extended up to 10 years.

He said the scheme also offers a reduced guarantee fee of 0.75% per year, compared with the normal rate of about 1%.

“This approach serves as a significant credit enhancement to help viable MSMEs that lack collateral gain access to financing for working capital and capital expenditure,” he said.

Under the SME SRF, eligible SMEs may obtain financing of up to RM750,000 for up to five years, with a maximum financing rate of 3.75% per year, including the guarantee fee.

The financing is supported by guarantees of up to 80% from Credit Guarantee Corporation Malaysia or SJPP, especially for SMEs without sufficient collateral.

Amir Hamzah said banks are also open to using alternative assessment methods when evaluating applicants, including transaction flows and bank statement balances.

This is to improve access for micro businesses and small entrepreneurs that may not have complete financial records or business documentation.

He said the government is also using direct cash assistance to support domestic demand.

With an allocation of RM15 billion, Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah have benefited almost nine million recipients, while SARA Untuk Semua has benefited 22 million people.

Amir Hamzah said the assistance would be spent at grocery stores, markets, food stalls and local business premises, helping to support MSME income nationwide.

As of June 2026, more than 13,000 SARA merchants were involved, including 6,000 small grocery stores.

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by AKMAR ANNUAR

MALAYSIA must widen its trade and investment links as global uncertainty, supply chain shifts and major-power rivalry make economic diversification a national necessity.

Prime Minister Datuk Seri Anwar Ibrahim said foreign policy must deliver practical gains for the domestic economy, particularly in attracting investments, creating jobs and expanding opportunities for the people.

“In real terms, foreign policy is not merely about diplomacy and international trade. It is about jobs. It is about investment. It is about opportunities for all,” he said at the 39th Asia-Pacific Roundtable (39APR) today.

For a trading nation such as Malaysia, Anwar said, external relations can no longer be separated from economic resilience, especially as countries compete to secure markets, technology, energy and food supplies.

He added that Malaysia has continued to deepen ties with traditional trade and investment partners while building stronger links with less leveraged markets in West Asia, Central Asia, Latin America and Africa.

“In a most uncertain global environment, diversification is not just an economic choice, it is a national and regional necessity,” he said.

The shift is aimed at keeping Malaysia’s external policy broad-based, resilient and forward-looking, while reducing overdependence on any single region.

Trade arrangements that improve market access, streamline tariffs and support more equitable investment rules will remain important, particularly as geopolitical pressures increasingly influence business decisions.

At the same time, Anwar said Malaysia must continue opening new markets and strengthening regional partnerships to protect long-term competitiveness.

During the Q&A session at 39APR, he said Malaysia’s size makes engagement with neighbours and friendly countries central to its economic position.

“We are a small country. That is why we engage very closely with our neighbours,” he said.

Malaysia’s ability to attract investments from different major economies also reflects the country’s effort to remain open while protecting its own interests.

“We are very fortunate to see that there are huge investments from the United States and from China and some other countries,” he said.

Beyond trade and investment, regional connectivity will be another key area where diplomacy can produce practical outcomes for the economy.

Anwar cited ASEAN energy cooperation and cross-border infrastructure as examples of partnerships that can move beyond statements and support wider regional growth.

“This sort of concrete, basic and standing partnership is the unique success story of ASEAN collaboration,” he said.

The Prime Minister said Malaysia would continue using its diplomatic networks to build partnerships capable of withstanding geopolitical uncertainty.

A principled but flexible foreign policy, he added, would allow the country to respond to shifts in global markets while securing opportunities for businesses and the people.

He added that Malaysia’s long-term economic position will depend on its ability to stay engaged, diversify its partnerships and turn diplomacy into tangible economic gains.

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by TMR

MALAYSIA has raised several longstanding agricultural trade issues with Thailand, including restrictions on Malaysian shrimp and seabass exports, as both countries pledged to strengthen cooperation in agriculture, fisheries and food security.

The issues were discussed during a bilateral meeting between Agriculture and Food Security Minister Datuk Seri Mohamad Sabu and Thailand’s Minister of Agriculture and Cooperatives Suriya Jungrungreangkit in Putrajaya on July 1.

The meeting was also attended by Thailand’s Ambassador to Malaysia Lada Phumas, Thailand’s Permanent Secretary of the Ministry of Agriculture and Cooperatives Vinaroj Supsongsuk, and senior officials from both countries.

Among the key issues raised by Malaysia were Thailand’s restrictions on Malaysian shrimp exports, stricter inspections on Malaysian barramundi (siakap) exports, and Malaysia’s pending application for market access for livestock products, which has remained unresolved since 2024.

Malaysia also explained the rationale behind its temporary suspension of imports of five shrimp species from Thailand, stressing that the measure was based on technical assessments and current risk evaluations to safeguard the country’s biosecurity and food safety.

The Agriculture and Food Security Ministry said the suspension would remain in place until further assessments are completed, including the possibility of on-site inspections, technical discussions on import requirements and health certification arrangements.

“Despite the trade restrictions, both sides agreed to continue discussions to reach a mutually beneficial outcome.

“Malaysia also urged Thailand to facilitate agricultural trade through the Asean Rapid Transit System, particularly by expediting the issuance of special permits by Thailand’s Department of Agriculture,” the ministry said in a statement.

The move is expected to improve the movement of Malaysian agricultural products, including durian, to China via the rail network linking Malaysia, Thailand, Laos and China.

Both countries reaffirmed the importance of maintaining open, transparent and timely communication between their respective authorities while strengthening technical cooperation and agricultural trade as neighbouring Asean members.

The ministry said bilateral trade in agricultural and agri-food products between Malaysia and Thailand remained robust, reaching RM20.33 billion from January to December 2025.

Malaysia’s key exports to Thailand include coffee, cocoa, tea, spices and processed food products, while its main imports from Thailand comprise meat and meat-based products.

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by NURNABIHAH DINI 

ARTIFICIAL intelligence (AI), energy security and defence-related investments are expected to power the next phase of global capital deployment, with geopolitical shifts creating fresh opportunities despite persistent market volatility, according to HSBC Private Bank.

In its Q3 2026 Investment Outlook, the bank said structural trends linked to AI adoption, energy independence and national security would continue supporting economic expansion and corporate earnings, while private markets are expected to play a larger role in bridging global investment funding needs.

HSBC Private Bank Global Chief Investment Officer Willem Sels said although volatility is likely to remain a feature of financial markets, investors should stay focused on long-term structural opportunities rather than short-term market swings.

“Volatility is here to stay as global markets react to fast-moving risks and headlines. The priority is to stay disciplined with resilient and diversified multi-asset portfolios that can withstand short-term uncertainty, while keeping sight of longer-term opportunities emerging from structural growth trends,” he said in a statement. 

The bank expects governments and businesses to continue diversifying supply chains, trade relationships and energy sources, building on lessons learned from the Covid-19 pandemic and recent geopolitical tensions.

It maintained a constructive view on global growth, saying volatility should remain manageable for now, supported by resilient corporate earnings and continued investment in innovation.

HSBC also expects the US Federal Reserve to keep interest rates unchanged throughout 2026 as policymakers balance inflation risks against economic growth.

The bank identified four key investment themes for the third quarter: AI-driven innovation, energy independence and security, diversified multi-asset portfolios, and Asia’s innovation and income opportunities.

Within the AI ecosystem, HSBC sees opportunities across semiconductor manufacturers, data centre operators and companies adopting AI technologies, noting that easing concerns over monetisation and more attractive valuations following the software sector sell-off have improved the investment outlook.

It also expects continued investment in technology, industrials, materials and utilities as countries accelerate spending on energy infrastructure, electrification and security-related projects.

On portfolio construction, HSBC recommends maintaining diversified exposure across bonds, gold, infrastructure and alternative investments to improve resilience against inflation and market uncertainty.

For Asia, the bank continues to favour a barbell investment strategy that combines exposure to innovation-led growth with income-generating assets, while maintaining an overweight position in mainland China, Hong Kong, Singapore and South Korea.

HSBC Private Bank Asia Chief Investment Officer Desmond Kuang said Asia remains well-positioned to benefit from accelerating AI investments because of its strength in semiconductor manufacturing and advances in large language models.

“As investment in AI accelerates globally, Asia is well placed to benefit given its leadership in semiconductors and rapid progress in large language models,” he said.

Beyond technology, Kuang said investors could also benefit from growing income opportunities in fixed income markets alongside ongoing corporate governance reforms across several Asian markets.

In Malaysia, HSBC maintained its 2026 Gross Domestic Product (GDP) growth forecast of 4.5%, noting that the economy’s 5.4% year-on-year expansion in the first quarter reflected a moderation from the exceptionally strong growth recorded at the end of last year rather than a significant loss of momentum.

The bank said domestic inflation remains well contained, supported by government fuel subsidies, while Malaysia’s position as a major exporter of natural gas provides some resilience against heightened geopolitical tensions in West Asia. 

“Despite external volatility, resilient domestic GDP growth and steady corporate earnings are providing support for the Malaysian equity market. We see more balanced risk ahead and retain a neutral outlook,” Kuang added.

HSBC added that geopolitical developments continue to create an uneven global economic landscape, making careful sector and regional selection increasingly important for investors seeking to navigate shifting market conditions.

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This year it brought together more than 1,500 delegates, including global investors managing a collective RM44t in assets under management 

by NURNABIHAH DINI 

THE Invest Malaysia forum is no longer just a stage for policy announcements — it is increasingly a proving ground for structural reforms seeking execution, capital re-rating and institutional scale. 

This year it brought together more than 1,500 delegates, including global investors managing a collective RM44.08 trillion in assets under management, reinforcing its role as a critical interface between macro- economic policy, regulatory oversight and market reality. 

For global investors and corporate leaders, the collective consensus reflects a defining historical intersection while fracturing geopolitical alliances, redrawn supply chains and the rapid rise of transformative technology continue to dismantle decades-old economic structures. 

From Policy Ambition to Market Reality

Officiating the event, Deputy Prime Minister (DPM) Datuk Seri Dr Ahmad Zahid Hamidi positioned political stability and structural execution as central to Malaysia’s ongoing economic transformation. 

“These outcomes did not happen by chance. They reflect policy clarity, economic discipline and the political stability required to make decisions that are necessary for long- term national strength,” he said. 

This ambition is anchored in measurable targets, including sustaining strong economic momentum after expanding by 5.2% in 2025 and hitting a 5.4% growth rate in the first quarter of this year (1Q26). 

Yet beyond targets, the emphasis is increasingly on structural execution in a shifting international landscape. 

“In a fragmented world, Malaysia remains connected, dependable and open for business,” he said. 

Platforms such as the National Semiconductor Strategy (NSS) and the New Industrial Master Plan 2030 (NIMP2030) function as critical interfaces in this context. By bringing together government agencies, regulators, corporate leaders and international institutional investors, the platform helps translate high-level policy frameworks into tangible domestic outcomes. 

Ahmad Zahid positions political stability and structural execution as central to Malaysia’s ongoing economic

Shifting Geopolitical Paradigms, the Asia-Pacific Era

The presence of global fund managers managing multi-trillion-ringgit portfolios highlights the forum’s expanding international profile. 

More importantly, it reflects increasing confidence in Malaysia as a stable hub for high-value capital investment. 

Foreign affairs specialist Tim Marshall emphasised that this structural shift represents a return to historical normalcy, as the post-World War II (WWII) Bretton Woods system faces unprecedented challenges. 

He observed that the global centre of economic gravity has permanently shifted toward the Asia-Pacific region. 

“The good news is that I think Malaysia is pretty well positioned to ride this storm out. The bad news is it’s going to be stormy,” he said. 

To truly understand modern geopolitics, Marshall argued that one must analyse the permanent constraints of physical geography and the aggressive scramble for resource security. 

This dynamic explains why the US has pivoted its primary focus toward its own hemisphere and the Asia-Pacific to secure vital raw assets. 

“The Americans and the Chinese are going to the lunar South Pole because a lot of the metals are there as well,” he added, noting that precious metals have effectively become the oil of the 21st century required for advanced electronics, electric vehicles (EV) and space exploration. 

This global scramble places Malaysia directly at the nexus of international maritime commerce. 

Marshall noted that Malaysia, alongside Singapore and Indonesia, must band together as middle-ranking powers. 

“The more you cooperate as middle-ranking powers, the stronger you will be to continue your very wise strategy of balancing between these two big superpowers,” advised, adding that maritime routes remain irreplaceable because a single container ship carries up to one hundred times the capacity of a standard freight train. 

Amir Hamzah says this resilience is structurally backed by record-breaking foreign direct investment inflows

Fiscal Fortification, Ringgit Resilience

Sustaining this growth requires an intricate balancing act between domestic fiscal responsibility and unpredictable external shocks Finance Minister II Datuk Seri Amir Hamzah Azizan detailed how the Finance Ministry has focused heavily on strengthening economic foundations to enhance systemic flexibility and foster inclusive, holistic growth. 

“The engines of growth in the economy can continue, that’s our goal,” he said, explaining that countries must remain agile because geopolitical conflicts and technological disruptions occur at an accelerated pace. 

A central pillar of this strategy has been the highly sensitive process of targeted subsidy rationalisation for petrol and diesel. 

When global commodity shocks and maritime supply chain disruptions escalated monthly subsidy bills in early 2026, 

the government successfully executed targeted reforms to transition away from blanket assistance. “We’ve built a system that is resilient to change and can be adjusted when data gets better, and communicate the messaging better so that we can bank the savings without people protesting on the streets,” he explained.

This fiscal discipline has provided significant structural support to the national currency. Amir Hamzah affirmed that the ringgit remains among the top-performing currencies in the region, achieving positive year-to-date (YTD) growth against the US dollar and strengthening considerably against major regional peers.

He added that this resilience is structurally backed by record-breaking foreign direct investment inflows and a robust domestic power infrastructure grid. 

Driving Tech Sovereignty, Semiconductor Leap

Behind headline growth numbers and macroeconomic policy, a significant portion of the focus was on upgrading Malaysia’s semiconductor value chain to graduate the country into a self-sustaining technology nation. 

Between 1972 and 2020, total approved investments in the domestic semiconductor sector hovered around RM290 billion. 

Remarkably, within the 2031 to 2035 window, approved tech investments skyrocketed to RM390 billion, surpassing the cumulative investments of the previous four decades combined. 

Deputy Finance Minister Tuan Liew Chin Tong emphasised that Malaysia’s future growth depends entirely on graduating into a high-value technology creator by focusing heavily on Integrated Circuit (IC) design and domestic intellectual property generation. 

These updated frameworks explicitly move away from handing out unconditioned fiscal grants or unlinked tax incentives to foreign firms. 

Liew added that when communicating with global counterparts, the national stance must prioritise the long-term domestic landscape. 

“It is not about telling them to come here to do what they want, but to work with the locals, to put the locals at the front and centre,” he stressed. 

This structural shift is designed to graduate Malaysia into a self-sustaining technology nation. 

Liew championed the concept of fortifying an “indispensable middle group” within the global economy. 

He outlined a grand vision for state intervention: “Incentivise Malaysian companies to participate in collaborations and business partnerships.” 

This industrial transition is perfectly timed to capitalise on the global artificial intelligence (AI) infrastructure boom. 

Employees Provident Fund (EPF) CEO Ahmad Zulqarnain Onn noted that the ongoing AI expansion represents a complete reversal of previous technology cycles. 

In past shifts, the vast majority of economic value was captured by software platforms, while physical hardware manufacturers operated on razor-thin margins. 

In stark contrast, the AI cycle concentrates value directly at the physical hardware, advanced packaging and semiconductor infrastructure layers. 

“Every single business leader in the world is now ultimately talking about deploying AI into their business models,” he said, adding that technological advancement is going to grow exponentially for a long period. 

Economy Minister Akmal Nasrullah Mohd Nasir (right) at the Invest Malaysia Conference 2026

Shifting From Compliance to Active Value Creation

To unlock the next phase of capital market expansion, the Securities Commission Malaysia (SC) launched the “My Value Up” programme to address a persistent valuation paradox in global markets. 

For years, global equity bourses have struggled with a severe “value trap,” where a significant portion of top-tier companies trade well below their true intrinsic book value. 

“My Value Up” fundamentally alters this landscape by shifting public listed companies (PLCs) away from a passive, checkbox-driven compliance culture toward a dynamic culture of active value creation. 

SC executive chairman Datuk Mohammad Faiz Azmi said it asks PLCs a deeper question of whether they are willing to pay in value that global investors can see, measure and trust. 

He noted that the corporate framework should move beyond simple administrative lists. 

“We want companies that are transparent, participating, accountable and consistent when explaining strategy and progress,” he said. 

To give the agenda immediate institutional teeth, the government announced that Malaysia’s largest government-linked investment companies (GLICs) — including the EPF, Permodalan Nasional Bhd (PNB) and Retirement Fund Inc (KWAP) — will actively allocate a dedicated portion of their investment capital to reward public companies that demonstrate a verifiable commitment to “My Value Up” principles. 

A rigorous analytical decomposition of the FTSE Bursa Malaysia KLCI’s historic performance reveals exactly where corporate Malaysia must improve. 

MSCI Research & Development MD Raman Aylur Subramanian explained that when a market’s return on equity (ROE) is broken down into its core components — profit margins, financial leverage and asset productivity — a striking pattern emerges. 

(From left) Bullhound Capital South-East Asia head and MD Shahril Hamdan, Liew, Ahmad Zulqarnain, chairman of ICMR & President of ASEAN Business Club Tan Sri Munir Majid and Malaysia Semiconductor Industry Association president Datuk Seri Wong Siew Hai at the event

Malaysian public corporations maintain healthy profit margins that align perfectly with the broader MSCI Emerging Markets index, and their financial leverage ratios remain well-balanced, but they lag significantly in capital productivity and asset ROE. 

“The shortfall has to be on capital productivity or ROE. So, ultimately, if you are investing into this market, and you see the profit from a ROE perspective, the capital base is more efficient,” Subramanian explained. 

To correct this dilutive trend, corporate boards are urged to embrace greater corporate discipline, optimise asset utilisation, and actively engage in equity buybacks and share retirements when valuations are unjustified. 

Successfully executing the “My Value Up” agenda requires a profound shift in boardroom dynamics. 

PNB acting president and Group CEO Datuk Rizal Rickman Ramli emphasised the critical need to inject a proactive “ownership mindset” into corporate boards, balancing traditional risk oversight with strategic ambition. 

“I want to get the right dynamic within the board.” 

This transformation involves moving away from rigid, legacy director-appointment frameworks to actively recruit “change agents” onto corporate boards. 

Rizal noted that board selection must be highly tailored. 

“It is not one size at all, it depends on the company itself,” he said. 

Additionally, sustainability is no longer treated as a separate, optional compliance exercise. All public corporations are required to publish comprehensive sustainability statements that are fully aligned with international disclosure frameworks. 

Sustainable Urbanisation, Social Progress

While grand macroeconomic and technological master plans form the spine of Malaysia’s national strategy, the ultimate measure of the nation’s success rests on the quality of life, sustainability and social equity afforded to its citizens. 

In Kuala Lumpur (KL), where the local government manages an annual budget of RM3 billion, sweeping administrative adjustments are being implemented to restore public trust and dismantle systemic corruption. 

Minister in the Prime Minister’s Department (Federal Territories) Hannah Yeoh highlighted the importance of re-establish- ing a transparent working relationship with civil society. 

“Residents deserve greater quality of life. So we need goals that can ensure their right to autonomy, supremacy and equality,” she said. 

To enhance democratic accountability, the Department has integrated KL MPs directly into the Kuala Lumpur City Hall’s DBKL budget planning and spending monitoring committees. 

In a landmark move for administrative transparency, Yeoh announced the official abolishment of the controversial Special One-Stop Centre (OSC Khas) committee mechanism. 

This decision aims to improve governance, curb political intervention and eliminate unnecessary bureaucratic layers in KL’s development approval system. 

Residents deserve greater quality of life. So we need goals that can ensure their right to autonomy, supremacy and equality, says Yeoh (right)

Moving forward, all land development applications, detailed zoning plans and plot ratios are published directly via an online public portal to prevent secret backdoor dealings. 

“The application to develop any land now will be published online”, Yeoh said, noting that this keeps real estate development strictly accountable to local neighborhoods. 

Additionally, with climate change posing an immediate threat to urban centers, the government is treating green spaces and water retention infrastructure as critical national infrastructure. 

Investigations revealed that over the past two decades, dozens of vital flood-retention bogs and community pocket parks across the capital remained ungazetted, leaving them highly vulnerable to private redevelopment. 

In response, a specialised emergency task force successfully gazetted more than 400 green zones and flood retention spaces over a rapid six-month period to protect the city from severe cloudbursts and flash floods. DBKL is also aggressively expanding its drainage infrastructure, adding new on-site retention lakes in high-risk zones. 

Meanwhile, to shift the capital away from car dependency, city planners are using data streams to analyse traffic counts and dynamically implement weekend and night road closures, creating safe zones for urban runners and pedestrians. 

DBKL is also collaborating with architects to build covered pedestrian walkways and public shower facilities, making active commuting a practical option for office workers. 

“We cannot encourage people to cycle to work if we don’t have shower facilities,” Yeoh explained. 

On the social equity front, the government rolled out an array of supportive measures for small-scale traders and lower-income families. 

Yeoh announced a 50% slashing of business license fees for over 10,000 small and medium-sized traders across traditional neighbourhood bazaars to cushion the impact of global supply shocks. 

Alongside fee reductions, standard business license renewals in KL have transitioned to a more convenient three-year cycle, significantly reducing operating costs and administrative red tape for local franchises. Yeoh noted that beginning July 1, businesses would no longer be restricted to annual renewals. 

Simultaneously, a comprehensive structural revitalisation programme was launched to upgrade ageing blocks and water infrastructure across low-cost housing schemes. 

The social equity framework also incorporates targeted, humane policies to manage the capital’s vulnerable migrant and refugee populations, balancing local community integration with long-term macroeconomic stability. 

From Invention to Impact 

Invest Malaysia has shifted its focus from showcasing reform concepts to scaling execution models. The challenge for the nation is no longer a shortage of policy frameworks, but ensuring that these initiatives translate directly into economic value, capital efficiency and societal benefit. 

This requires sustained collaboration across stakeholders, stronger corporate governance pipelines and continued investment in structural talent development. 

As the country pushes toward becoming a high-technology nation, the platform will play an increasingly critical role in ensuring that structural execution moves beyond the lab and directly into everyday life. 

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

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GEORGE TOWN — Penang deserves to receive a fairer and more equitable revenue return following Datuk Seri Anwar Ibrahim’s recognition that the state is among those that contribute tax revenue to the federal government in excess of the total development expenditure received.

Chief Minister Chow Kon Yeow said the Prime Minister’s recognition confirmed that Penang plays a very important role as one of the main drivers of the country’s economic growth and a net contributor to the federal revenue as a whole.

“(Anwar’s) statement also confirms what I have raised many times in various national and Dewan Rakyat meetings before, that Penang deserves to receive a fairer revenue return commensurate with its contribution to the national economy.

“What the state government is fighting for is not to get special treatment but to ensure that the revenue return is made fairly, based on the state’s actual contribution to national development,” he said in a statement today.

As a state that is the heart of the country’s manufacturing, trade, technology and innovation sectors, he said Penang needs continuous investment to ensure that the provision of strategic infrastructure is enhanced, thus maintaining Malaysia’s competitiveness at the global level. 

Yesterday, Anwar in the Dewan Rakyat said that almost all states received higher federal allocations compared to tax revenue, except for Selangor and Penang.

The Finance Minister said that for Penang, the average revenue obtained by the federal government was RM10.7 billion while the expenditure in the state amounted to RM7.9 billion for the period 2023 to 2025.

Regarding In addition, Chow said the state government appreciated the recognition of Penang’s contribution and the commitment of the federal government since 2023 in approving and financing various major infrastructure projects including the Light Rail Transit (LRT) Mutiara Line, the expansion of the Penang International Airport (LTAPP) and the Juru-Sungai Dua Traffic Dispersion Project (PTJSD).

He also expressed his appreciation to Anwar for openly disclosing figures on the collection of revenue and distribution of federal expenditure in Parliament, which he said reflected the MADANI Government’s commitment to upholding the principles of transparency, accountability and good governance.

Meanwhile, Chow also hoped that the federal government could give priority to joint efforts in realising the aspirations of the Penang International Financial Centre (PIFC) which would further complement Penang’s strength as a high-tech manufacturing hub through the development of the financial sector and high-value services.

“This initiative is believed to be able to attract more international financial institutions, high-quality investments and global talents, thus strengthening Malaysia’s position as a competitive financial and investment hub in the Asian region,” he said.

He pledged that the state government would continue to adopt a constructive approach and strengthen close cooperation with the federal government to ensure that Penang continues to be the main driver of the country’s economic growth. — BERNAMA

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