AGP Executive Report

Aviation Consumer Watch: AirBorneo warned Malaysians to avoid buying tickets from unauthorised third-party sites, saying scalping can trigger inflated prices, hidden charges, failed confirmations, and refund/rebooking hassles. Water & Environmental Engineering: Alam Aliran Kualiti (AAK) won Malaysian Book of Records recognition for its Sungai Dua dewatering plant, built with PBAPP, with 10 million litres/day capacity and sludge handling up to 450 tonnes/day. Digital Governance for Industry: MCMC’s IRC 2026 wrapped up with calls for agile digital governance, stronger platform accountability, and cross-border cooperation to build trust in Malaysia’s online ecosystem. Energy Transition Push: Deputy PM Fadillah said Malaysia’s renewable installed capacity hit nearly 32% as of June, tracking toward 35% by 2030, as LSS5 launched. Manufacturing Momentum: NIMP 2030 progress showed manufacturing gross value-added up 5.9% in 1Q 2026, with E&E still a key driver. Upstream Oilfield Contract: Velesto secured a US$51m Chevron Malaysia contract for jack-up rig services starting Aug 2026 through 2028. Security & Scams: Kedah police busted an online love scam call-centre syndicate targeting Japanese victims, arresting seven suspects and seizing phones and laptops.

ASEAN–US Shipping Security: US Sec. of State Marco Rubio warned ASEAN leaders that any Iran move to control and charge tolls in the Strait of Hormuz would set a dangerous precedent for global shipping. Malaysia Foreign Policy: Malaysia also voiced concern over Houthi threats to restrict passage at Bab el-Mandeb, urging restraint and freedom of navigation under UNCLOS. Digital & AI Regulation: Malaysia’s CMA 1998 is being praised as technology-neutral and “future-ready” for AI, with calls for agile, anticipatory regulation at IRC 2026. Talent for AI Economy: GITC says Malaysia must shift from qualification-based education to competency-driven talent development, with tighter industry input for electronics, semiconductors and TVET. Energy Supply Reliability: Govt is working to normalize gas supply after an FSRU technical fault cut national gas by about 450 mmcfd, impacting industrial and power users. ASEAN–China Tourism: Langkawi hosted an ASEAN–China Tourism Dialogue focused on connectivity, digital tourism innovation and new products. Industry & Logistics Governance: Maritime experts say foreign port leadership should be capability-led but paired with governance safeguards, local representation and succession planning.

Geopolitics & Trade Disruption: West Asia tensions are again rattling markets, keeping Malaysian firms focused on resilience—diversifying suppliers, tightening inventory and planning for longer logistics recovery. Ports & Governance: Maritime experts say foreign executives at Malaysian ports should be capability-led, with stronger local representation, clear authority over strategic assets, and governance safeguards—after reports of a foreign executive chairman at MMC Port Holdings. Digital Infrastructure Push: MCMC has invited licensed telcos to register interest in building the RM2bn SALAM domestic submarine cable (Peninsular–Sabah/Sarawak) to boost redundancy and replace ageing SCREAM. Telecom Rollout Bottleneck: Malaysia’s permitting reforms are being echoed by faster tower approvals elsewhere, highlighting how regulatory speed can unlock network expansion. Aerospace Growth Signal: Malaysia Aerospace Industry Association reports rising membership and expects near-term growth supported by government backing and global expansion. Food Industry Momentum: Food and Drinks Malaysia (FDM) is set to beat last year’s US$265m target despite supply-chain and cost pressures. Rare Earths Watch: Lynas flags cost overruns for its Malaysia rare-earth expansion, intensifying scrutiny around critical minerals supply chains. Local Enforcement Spotlight: Johor’s MBIP shut and sealed Network School premises in Forest City after licensing breaches and controversy.

Semiconductor & E&E Shielding: MITI says Malaysia will intensify engagement to blunt the impact of US unilateral trade measures on the semiconductor and electrical & electronics sectors, leaning on the National Semiconductor Strategy to build skills, technology transfer and higher value work. Industrial Capital for SMEs: MITI and the Securities Commission Malaysia launched a Smart Manufacturing scheme under NIMP CoSIF, boosting co-investment ratios (2:1 for smart manufacturing until 2030) and temporarily raising support for other sectors to help SMEs and mid-tier firms fund automation and digitalisation. Digital Trust & Cybersecurity: Industry leaders stress that strong cybersecurity and data governance are key to building digital trust as Malaysia pushes deeper into AI and digital services. AI in Retail Reality Check: An Adyen survey finds 74% of Malaysians use AI for shopping, but 52% are still uncomfortable letting AI complete purchases—trust and payment security remain the sticking points. ECRL Economic Push: The East Coast Rail Link is projected to add RM80–RM90b to GDP by 2047 via 21 Economic Accelerator Projects and logistics hubs along the corridor. Regional Crime & Scams Warning: A UNODC report says Southeast Asia’s criminal networks are getting more tech-driven and interconnected, with scams alone estimated to cause $88.3b–$114.1b losses in 2025. Sabah Connectivity Gap: Sabah’s Nabawan villages still lack proper road access since independence, with lawmakers urging new tracks and higher maintenance allocations for rural/agricultural roads. Regional Energy-Market Link: Malaysia’s energy and maritime security are increasingly tied, with Hormuz-related volatility raising shipping, insurance and supply-chain costs. Ajinomoto Sports Nutrition Boost: Ajinomoto (Malaysia) promoted aminoVITAL® at SCORE Marathon 2026, supporting endurance sports and regional sports nutrition exchange.

Digital Regulation & Trust: Communications Minister Fahmi Fadzil opened IRC 2026, saying Malaysia is tightening digital governance via Jendela, 5G rollout, submarine cables and the Online Safety Act 2025 to keep innovation moving while boosting accountability and online safety. AI in Retail: Adyen’s Malaysia Retail Report found 74% use AI for shopping discovery, but 52% won’t let it complete purchases—trust and payment security remain the biggest blockers. ICT Talent Push: Kesuma deputy minister said AI, cloud and hyperscale data centres are raising demand for skilled ICT workers, stressing that Malaysia must build talent, not just buy tech. Data Centres & Power Reality: S&P Global warns Malaysia’s data centre boom is in “reset mode,” with capacity potentially nearly tripling by 2030 but execution and funding risks tied to power and water rollouts. Economy Snapshot: DOSM said Malaysia grew about 5.8% in Q2 2026, led by services, manufacturing, mining and construction, while agriculture contracted. Industry & Logistics: EPIC expects the ECRL spur line to Kemaman Port to drive growth, targeting RM700m revenue by 2030 as works near completion for operations in 2027. Automotive Market: MAA raised 2026 TIV forecast to 800,000 units and said Proton/Perodua held 67% market share in 1H 2026. Regional Business Moves: Hyrax Oil signed deals to expand transformer fluids and technical services across Thailand, Cambodia, Laos, Myanmar and Vietnam. Halal Cooperation: Indonesia’s BPJPH urged stronger IMT-GT regional halal ecosystem ties to boost trade and investment.

E-waste Crackdown: Malaysia moved to clamp down on toxic trade with a total e-waste import ban, stepping up enforcement against cargoes falsely declared as other commodities—though loopholes and illegal incineration risks remain. Skills Pipeline: MARA teamed up with Schneider Electric Malaysia and industry partners to launch the MARA-SWITCHPRO Apprenticeship Programme, offering 12 months of training plus on-the-job placements and pay prospects up to RM5,000. Aviation & Logistics: AirBorneo began its first jet service on the Kuching–Kuala Lumpur route, positioning Sarawak as a regional investment and logistics hub. ASEAN Diplomacy: Malaysia’s foreign minister led the delegation to the 59th ASEAN Foreign Ministers’ Meeting in Manila, with West Asia tensions and regional trade, energy and food security on the agenda. Power & Data Centres: S&P Global estimates Malaysia’s data centres will need over US$20bn in funding for power and equipment over the next three years, pushing firms toward alternative capital sources. Exports Outlook: RHB Investment Bank raised Malaysia’s 2026 export growth forecast to 21.7%, citing stronger E&E performance and a bigger trade surplus. Creative Economy Push: OEC and Cloudwise partnered to develop AI-powered creative content to help Malaysia build a higher-value digital creative economy.

Trade & Exports: Malaysia’s trade momentum stayed strong in June 2026, with exports up 45.4% to RM177.9b and imports up 43.9% to RM163.0b, lifting the trade surplus 64.9% to RM14.9b for the 74th straight month of surplus since May 2020. Banking & Wealth: CIMB is pushing into Singapore and Thailand with a Private Wealth launch by year-end, aiming to double wealth assets under management by 2030. Data Centres: S&P Global says Malaysia’s data centre boom is entering a “reset mode,” with a US$20b funding gap and tighter utility and sustainability guardrails forcing a shift from volume to value. Power & Energy Transition: Sabah targets nearly quadrupling renewable capacity to about 1,200MW by 2030, with storage to stabilise the grid. Construction Safety: A methane leak halted work at a Miri construction site after readings hit 100% LEL at the source, triggering a multi-agency response. Aviation & Logistics: AirBorneo began its first jet operations on the Kuching–Kuala Lumpur route, expanding Sarawak’s connectivity to Peninsular Malaysia. Policy & Industry: The government is considering a special fund and tax incentives to better support stray animal welfare and reduce the burden on pet owners. Cybersecurity: Kaspersky says Malaysia’s Cybercrimes Bill 2026 is overdue in the AI era as threats shift toward AI-driven deception and identity theft. Corporate Moves: MN Holdings secured SC approval to transfer from ACE to the Main Market, positioning it for Malaysia’s power, data centre and utilities build-out. Energy Security: Malaysia is monitoring West Asia tensions after US-Iran conflict pushed up oil prices, raising risks to industrial input costs. Commodities: Palm oil futures rose on crude strength and El Niño worries, with the benchmark up 0.85% by midday.

Rare Earths Scrutiny: Malaysia has launched a formal probe into Lynas’ US$96m supply deal with the US Department of Defense, focusing on whether Malaysian-processed rare earths fit Putrajaya’s foreign policy and strategic mineral guidelines. Data Centre Power Push: Aurora Pacific Economic Zone (APECO) is in advanced talks with power utilities to secure reliable electricity for Casiguran ecozone data centres, including a possible distribution utility agreement, after investors hesitated over grid limits. Construction Delivery Fix: Works Ministry says closer coordination between JKR Malaysia, Sabah and Sarawak is key to cutting delays on major projects like the Pan Borneo Highway. Mangrove Restoration Funding: UMT researchers win RM3.9m for a three-year mangrove recovery project aimed at restoring ecosystems and improving local livelihoods. Healthcare Logistics Upgrade: MCMC and the Health Ministry will pilot drone medicine delivery in Tawau, targeting rural villages that travel 20–30km to reach hospitals. Semiconductor Expansion: Inari Amertron plans a third Clark facility in the Philippines to boost output for AI, data centres and advanced electronics, adding 600 jobs. Tourism Demand Drive: Malaysia targets 600,000 Korean visitors in 2026 under “Surreal Experiences,” aiming to lift arrivals back above pre-pandemic levels.

Super El Nino Preparedness: Malaysia is urged to start early, coordinated planning for the expected Super El Nino from around November, with risks spanning public health, water security, agriculture and haze. Healthcare Delivery: MCMC and the Health Ministry will pilot drone medicine delivery in Tawau, Sabah, targeting about 12 villages from September/October to cut travel time and costs for rural patients. Agri-Exports (China): Durian exporters are told to stick to the existing China phytosanitary protocol and avoid any unapproved “pre-cut” export methods that could jeopardise market access. Courier Safety Training: Postal Forum soft-launches the Malaysia Courier Safety Passport (MyCSP), with six safety modules and registration opening now for training starting September 2026. Energy Security Strategy: An economist says a national petroleum reserve should be part of a wider economic security plan covering food, critical minerals, semiconductors and digital infrastructure—not a standalone fix. Orang Asli Livelihoods: In Negeri Sembilan polls, PH candidate Ahmad Faez pledges upgrades to roads, internet and customary land issues, plus modern agriculture like fertigation and wider handicraft marketing for Orang Asli communities. National Month & HKHM 2026: “Aku Berjanji” is named the patriotic theme song, while MPBKKJG 2026 launch activities in Perak include a Jalur Gemilang handover and community programmes under a more modest format.

Malaysia Economy Watch: Malaysia’s Q2 2026 GDP grew 5.8% (up from 5.4%), with services leading and manufacturing and mining rebounding, while agriculture contracted; inflation also eased to 1.9% in Q2, led by transport and insurance/financial services. Courier Safety & Compliance: Postal Forum soft-launched the Malaysia Courier Safety Passport (MyCSP), a six-module training programme for courier road and workplace safety, with registration open and training set to start in September. Agri-Exports: Deputy agriculture minister urged durian exporters to stick to the existing China phytosanitary protocol and avoid any unapproved “pre-cut” export methods that could jeopardise market access. Halal Market Pressure: Businesses say halal certification is too costly and slow, pushing exporters to buy internationally recognised certificates instead of relying on local processes. Healthcare Manufacturing: Biocon Malaysia received EMA approval for a new Semglee (insulin glargine) fill-finish line, targeting Europe supply from Q2 FY2026-27. Home Appliances Launch: Coway Malaysia debuted its first refrigerator series for its 20th anniversary, expanding beyond wellness into broader home lifestyle solutions.

Malaysia Macro: DOSM says Q2 inflation rose to 1.9% (from 1.6%), led by higher transport, insurance and financial services costs, while headline inflation eased slightly in June. Growth Watch: Malaysia’s economy is estimated to have grown 5.8% in Q2, with services, manufacturing and a rebound in mining driving the expansion; agriculture contracted. Energy & Trade Risk: Malaysia will keep monitoring Iran-US tensions to protect oil supply as Strait of Hormuz disruptions lift global crude prices. Data Governance: DOSM is stepping up preparations for the Statistics Bill 2026, focusing on phased implementation documents, coordination with data owners, and data security. EV & Pricing: Tesla Malaysia raised Model 3 and Model Y prices by about RM1,400–RM3,000, noting it’s outside MITI’s CBU EV price-floor rules via a separate programme. AI Power Demand: A report highlights Asia’s AI data-centre boom pushing electricity demand and turning coal into a key “stopgap,” with Malaysia’s Cyberjaya cited as already seeing strain. Rare Earth Geopolitics: Malaysian lawmakers urged Putrajaya to clarify whether Lynas’ rare earth supply links to the US defence chain could affect Malaysia’s foreign policy stance. Industry & Consumer: Coway Malaysia launched its first refrigerator series as part of its 20th anniversary push beyond wellness into broader home lifestyle solutions. Sports Tourism: Cameron Ultra (CULTRA) 2026 drew 3,600 runners from 33 countries, targeting RM15m in local economic spillover.

Statistics Bill 2026 Rollout: DOSM is preparing for the new Statistics Bill 2026, finalising implementation documents, standing instructions and guidelines to standardise how ministries and data owners manage national statistics under the new legal framework. GDP & Inflation Watch: Malaysia’s economy stayed resilient with Q2 2026 GDP growth of 5.8%, while inflation eased to 1.9% in June, with agriculture the only sector that contracted. Energy Security & Oil Supply: Government officials say they’re closely monitoring US-Iran tensions to protect Malaysia’s oil supply, as Strait of Hormuz disruptions push up global prices. Solar Push for Industry: Gentari deployed a 3.1MWp solar PV system at KLIA2, generating about 4,277MWh annually and cutting roughly 3,310 tonnes of CO2e per year. SME Financing Boost: MBSB Bank and NCIA signed an MoU for up to RM1 billion financing to help export-oriented SMEs expand in the Northern Corridor. Digital Regulation & Trust: MCMC will discuss quantum tech use cases and the cybersecurity risks it brings at IRC 2026, including threats to existing encryption. EV Demand Outlook: BMI says Malaysia is well placed to lead ASEAN EV growth outside Vietnam and Thailand, supported by consumer purchasing power and China-made price competition. Sports Tourism: Cameron Ultra (CULTRA) 10th edition drew 3,600 runners from 33 countries, targeting RM15 million in local economic spillover.

GDP Momentum: Malaysia’s economy grew 5.8% in Q2 2026, up from 5.4% in Q1, with services, manufacturing, mining and construction expanding, while agriculture contracted; inflation also eased to 1.9% in June. Regional Growth Hubs: RHB Investment Bank says high-value activity is concentrated in Selangor, Penang, Johor, Sarawak and Kuala Lumpur—together driving most GDP, exports and approved investments—pushing for more talent, R&D and industry-academia links. Energy Security Watch: Malaysia is studying a national petroleum reserve stock as geoeconomic risks and Middle East tensions raise supply-chain uncertainty. Rare Earths Scrutiny: A Malaysian parliamentary group is reviewing Lynas’ US Department of Defense rare-earth supply deal, while Lynas and JS Link plan a rare-earth magnet factory in Kuantan. Mobility & Property Decarb: Pelaburan Hartanah Berhad signed MoUs to expand EV charging and green building certification across its assets. Digital Regulation: MCMC’s IRC 2026 will focus on implementing Malaysia’s digital rules, including online safety and AI. Transport Disruption: AirBorneo is retiming and adjusting flights, affecting about 4,000 passengers, due to ATR network maintenance and parts constraints. Water Infrastructure: Kelantan’s NRW challenge remains high (~50%); plans prioritise replacing ageing pipelines to boost treated water reaching consumers.

Agri-Food Exports: FAMA targets RM500,000 in potential sales at MIFB 2026 via 10 contract-farming entrepreneur firms showcasing 50 SKUs ranging from coconut products and bananas to tempeh, bird’s nest, vegetables and frozen durians, with business-matching aimed at unlocking export buyers. Infrastructure Resilience: Works Ministry (KKR) is shifting from reactive repairs to risk-based long-term slope and debris-flow mitigation on the Lojing–Gua Musang road, including RM10.4m works such as drainage, resurfacing and a Sabo dam. Critical Minerals & Industry Risk: The IEA warns China’s rare-earth export curbs could endanger US$6.5 trillion of downstream production outside China, with additional graphite controls flagged for EV battery supply chains. Port & Customs Enforcement: Maritime Network backs a MACC–JKDM task force to curb revenue leakages and strengthen enforcement at strategic ports, aiming for clearer procedures and a level playing field. Data Governance: Parliament passed the Statistics Bill 2026 to modernise Malaysia’s national statistical system, replacing the 1965 Act and setting up a National Statistics Council. Energy Security Policy: An economist urges any national petroleum reserve stock to be phased and fiscally prudent, warning costs of unpreparedness can outweigh reserve spending. AI in Industry: Tridiagonal.ai partners with PETRONAS Carigali and IBM to advance TriCipta AI for upstream surface equipment optimisation, maintenance reliability and asset integrity decision workflows. Transport & Mobility: KL’s LaLaport Transportation Hub targets up to 10,000 passengers a day by linking rail, buses and other services near the Hang Tuah interchange. Sports Participation Push: HSN 2026 (Oct 9–11) targets 5.3m Malaysians, using VR and AI-themed programming to drive wider sports and recreation involvement. Tourism Digitisation: Penang tourism players are urged to adopt AI for digital marketing and competitiveness as PDX 2026 opens. Regional Trade Friction: Malaysia discusses steps to resolve shrimp export restrictions to Thailand and pending livestock market access, alongside food security planning amid El Nino risks.

ESSZone Security Boost: Malaysia is tightening security along Sabah’s east coast with new surveillance and assets, including radar-and-camera “Big Eyes” on Ligitan Island, plus upgrades to PDRM marine and special operations capabilities. High Court Jana Wibawa Trial: A KCJ Engineering finance manager told the High Court she was ordered to prepare four RM200,000 cheques (total RM800,000) as Bersatu “donations” linked to a Jana Wibawa project. Urban Mobility Upgrade: DBKL launched the LaLaport Transportation Hub in KL, aiming to move up to 10,000 passengers a day by linking rail, buses, taxis and e-hailing at the Hang Tuah interchange. Data Centre Rules: The government says it will only approve data centre projects after checking energy and water capacity, prioritising residents’ water needs and approving only when there is excess supply. Cooking Oil Subsidy Overhaul Push: PAC wants a reset of cooking oil subsidy management after finding weak targeting and supply-chain issues meant RM10.879b (2019–Feb 2025) didn’t fully reach intended recipients. Penang Tourism Goes AI: Penang urges hotels, restaurants and SMEs to adopt AI for digital marketing and tourist services as global travel patterns shift. Energy Transition: PETRA unveiled LSS6 plans for 2.5GW solar plus 1.25GW BESS, with tenders split into three lots including Bumiputera-focused participation. Cross-Border Retail Impact: A study says Singapore consumers could spend an extra S$1.05b annually in Johor after the RTS Link opens in 2027, while Johor spending in Singapore rises by S$756m.

Food Security & Agriculture: PM Anwar orders urgent measures to mitigate the Super El Niño impact on Malaysia’s food supply from November, with KPKM told to finalise plans without compromising food safety and to keep close engagement with farmers and fisheries. Halal Compliance: Kelantan will intensify monitoring of food premises after viral halal concerns, with preliminary investigations and reminders to operators to maintain shariah compliance. Energy Security: Malaysia will study the need for a national petroleum reserve stock to strengthen resilience amid global supply risks, alongside progress on renewables and biofuel initiatives. Communications Regulation: Dewan Rakyat passes the MCMC (Amendment) Bill 2026 to keep the regulator sustainable, including changes to governance and procurement contract limits. Statistics Leadership: Siti Asiah Ahmad is appointed Malaysia’s chief statistician, taking over from Mohd Uzir Mahidin upon retirement. Infrastructure & Water: Penang says updates on the Perak–Penang Water Project agreement are due soon, while Penang also signals no change to the RM852m Air Itam expressway contract value despite design revisions. SME Talent Pressure: Samenta urges review of new Employment Pass rules, warning higher expatriate salary thresholds could price SMEs out of specialised tech talent. Transport Tech: PLUS expands open toll payment via JustGO with ANPR to six more southern toll plazas. Industry Outlook: HLIB lifts Malaysia’s 2026 GDP growth forecast to 4.7% on stronger E&E exports and semiconductor demand, though it expects moderation in 2H26.