AGP Executive Report

Engineering & AI Investment: Segula Technologies says Malaysia can take on higher-value engineering work now done in India, and plans to set up a global engineering centre in Malaysia by end-2026, hiring Malaysians and using AI to support car, aerospace, energy and advanced manufacturing. PM Industry Outreach: PM Anwar met DRB-Hicom, Segula, AWL Agri Business and Motherson in New Delhi, stressing MADANI support for quality investments and high-value jobs. AI Governance Push: AI Malaysia will prioritise an AI Governance Bill and a Malaysia AI Safety Institute, and coordinate the National AI Action Plan 2026-2030. Semiconductor Cooperation: Anwar and Modi discussed deepening semiconductor collaboration via integrated supply chains, talent and investment, plus faster export facilitation. Regional Trade & Renewable Energy: Malaysia’s Economy Minister highlighted renewable energy and connectivity cooperation under IMT-GT, including ASEAN Power Grid efforts. Selangor Investment Momentum: Selangor reported RM70b approved investments by June, led by services and manufacturing, with confidence to push targets higher. Agri Exports & Halal: Vietnam’s Dak Lak eyes halal markets (including Malaysia) but cites certification and standards knowledge gaps as key barriers. BRICS Culture & Heritage: BRICS adopted the New Delhi Declaration, calling for protection and repatriation of cultural heritage and raising nuclear safety concerns.

Islamic Tourism Month: Malaysia’s 2026 Islamic Tourism Month (ITM) is set to spotlight Muslim-friendly travel, with the Islamic Tourism Centre saying Malaysia remains the world’s top destination in the Global Muslim Travel Index for the 11th straight year, and the programme aims to connect industry players and grow MSME visibility. AI Governance: AI Malaysia says it will prioritise the AI Governance Bill and the Malaysia AI Safety Institute, alongside driving the National AI Action Plan 2026-2030 with “move fast, implement with discipline” to deliver measurable economic and social impact. ASEAN Health & Tobacco Control: Baguio City in the Philippines won Gold at the 2nd Asean Smoke-Free Awards for enforcing smoke-free policies, while George Town took Silver and several cities across the region earned Bronze. BRICS & Malaysia-India Trade/Tech: On BRICS sidelines, Anwar Ibrahim met India’s Narendra Modi, discussing semiconductors, defence, fintech, energy and investment, including Malaysia’s support for an Indian consulate in Kota Kinabalu. Energy Security & Trade Routes: Anwar also met Iran’s President Pezeshkian, urging dialogue to de-escalate and stressing the need to keep Strait of Hormuz maritime passage safe for global energy and trade. Industrial Growth in Selangor: Selangor reported RM70b approved investments by June, led by services and manufacturing, with a target of RM80b soon and RM100b possible. Sustainability in Kulim: Kulim’s industrial area pushed cleanliness and recycling through a Sustainable Community Programme with industry and community partners, including cleanup drives and tree planting. Bursa Malaysia Outlook: Analysts expect selective bargain hunting and a possible technical rebound next week, but warn sentiment may stay pressured by geopolitics, oil and US rate expectations.

Cybersecurity & Ports: Malaysia’s Tanjung Pelepas Port (PTP) paused terminal operations for several hours after a cyber-attack, with systems restored and vessels facing possible delays as recovery and extra security measures continue. EV Market & Manufacturing: BYD says it will not proceed with a CKD assembly plant in Tanjung Malim, but local assembly plans remain on track; meanwhile BYD Sime Motors launched the Atto 3 Performance (limited 69 units) and Malaysia saw EV registrations jump 155% YoY in August. Digital Economy & Data Centres: Analysts say Malaysia is well placed to capture ASEAN’s next hyperscale/AI compute wave, but water constraints are emerging as a key bottleneck for data-centre growth. Energy Transition & Industry: Rakuten Trade keeps its FBM KLCI end-2026 target at 1,770, citing clearer earnings visibility from power and grid spending; Budget 2027 is also being framed around enterprise AI adoption and workforce productivity. Environment & Logistics Disruption: Haze worsened in Sarawak (Serian API 218), while Penang’s LRT Mutiara Line works trigger road closures and lane restrictions. Food & Manufacturing Investment: Mondelez opened its RM90m Cadbury Crumb Tower in Shah Alam to boost automation and local chocolate-crumb production. SME Policy: KUSKOP submitted Budget 2027 proposals to expand MSME resources, cut bureaucracy, and reduce the cost of doing business.

BRICS Diplomacy & Trade: Prime Minister Anwar Ibrahim will join the 18th BRICS Leaders’ Summit in New Delhi as a partner country, with high-level bilateral meetings lined up with Modi and Putin plus other leaders, as the summit agenda targets resilience, innovation, cooperation and sustainability. ASEAN Health & Pharma: ASEAN has rolled out a five-year action plan under the ADSSR initiative to secure affordable essential medicines for 600 million people, moving into implementation with a 2026-2030 strategic plan. Food Security Policy: Malaysia’s KPKM says it will draw lessons from India’s food security approach while drafting the National Food Security Act, focusing on buffer stocks, distribution and supply chain governance. Radiation Monitoring: Malaysia’s Gamma Spectrum Water Monitoring System (GSWMS) now operates around the clock with public data access, aiming to detect unusual radiation changes in national waters. Consumer & Digital Trust: A GSMA ASEAN report says nearly half of scam cases remain unresolved across the region, with messaging apps the top channel and AI increasingly spotted in scams. Business & Investment: RHB IB estimates Budget 2027 allocation at RM437.8b with development spending around RM83b, while Malaysia-India investment ties keep building via manufacturing and green energy projects. Enforcement: KPDN and police busted a suspected counterfeit liquor operation in Putrajaya, seizing bottles, raw materials and equipment worth about RM206,630. Workplace Culture: Sunway Group earns Great Place To Work certification for a second straight year, citing improved staff experience.

AI for ASEAN business: Malaysia’s deputy communications minister Teo Nie Ching says the country must move from “consuming” AI to building foundations for corporations, SMEs and start-ups to develop and scale AI solutions across ASEAN, with stronger connectivity, computing, cloud and secure networks. Digital trust & scams: GSMA’s ASEAN consumer report flags that 45% of scam cases across Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam remain unresolved, while MCMC says Malaysia is pushing cross-border, cross-industry action to protect children online and curb illegal listings. Semiconductor push: Malaysia is positioning itself as a regional semiconductor hub, aiming to expand beyond assembly/testing into higher-value parts of the chip value chain. EV charging gap: EV adoption is rising faster than public charging—Malaysia’s public chargers grew about 43% from end-2024 to Sept 2025, while EV registrations surged—raising concerns about charger availability. Energy & markets: Oil prices above US$100 are weighing on Bursa Malaysia sentiment, with the ringgit trading cautiously ahead of US CPI. Trade & infrastructure: Malaysia will send 67 companies to China-ASEAN Expo 2026 in Nanning to deepen China market access, while Penang’s Mutiara Line LRT triggers major road diversions from Sept 12. Agribusiness: MPOB reports palm oil stocks up 7.48% in August, but exports fell 7.5%—a mixed signal for producers and traders. Regional diplomacy: BRICS in New Delhi (Sept 12-13) gets a boost as Xi Jinping confirms attendance, with leaders expected to focus on resilience in food, energy and supply chains.

Business Events Push: MyCEB launched its BE Fuelled-Up Campaign, offering support for eligible international meetings held at participating hotels/venues, aiming for ~10,000 delegates and RM146.87m economic impact. Food Safety & Manufacturing Standards: NSF named Shell MDS (Malaysia) the first APAC manufacturer to earn dual NSF 537 PFAS-Free and NSF 538 MOAH-Free certification for nonfood compounds and food equipment materials. Digital Resilience & Anti-Scam Moves: ASEAN experts urged stronger cross-border cooperation and an intelligence-sharing push to tackle scams as AI widens the “AI divide”; Malaysia also faces rising trust and participation challenges. Energy & Markets: Brent broke above US$100 amid US-Iran tensions, feeding inflation worries; Bursa Malaysia closed flat as investors stayed cautious. Shipping/Port & Compliance: Alam Maritim Resources CEO Azmi Ahmad is set to be charged by MACC; Bursa Malaysia also publicly reprimanded Techna-X for delayed reporting. Industry Partnerships: Rajoo Engineers teamed with Rieckermann to expand plastics extrusion machinery support across Thailand, Indonesia, Malaysia and the Philippines. Legal Milestone: Sungai Kim Kim toxic waste victims won a seven-year civil suit, with court-ordered costs awarded to 171 plaintiffs. Tech & Data Centres: S&P said Malaysia’s outlook stays resilient, with manufacturing, infrastructure and data centres driving growth.

Energy & Markets: Brent crude jumped above US$100 a barrel as US-Iran tensions and attacks on oil assets raised fears of supply disruption, feeding into Malaysia’s cautious trading mood—Bursa Malaysia closed nearly flat while investors watched inflation risk and the next US CPI print. Anti-Scam & Digital Trust: ASEAN leaders and industry players pushed for faster cross-border coordination, including a proposed regional anti-scam intelligence exchange and stronger “protection to participation” measures as AI raises identity and fraud risks. Drugs & Enforcement: Police dismantled a drug processing syndicate in Selangor, seizing drugs worth about RM2.4b (around 13.17 tonnes) and arresting five suspects, with equipment allegedly smuggled in from China. Trade & Exports: MATRADE said 67 Malaysian firms will take part in CAEXPO 2026 in China, spanning AI, medical devices, food, agriculture and tourism. Industry Output: Malaysia’s Industrial Production Index grew 4.7% y-o-y in July 2026, led by manufacturing and electricity, while mining contracted. Maritime Capability: Perdana Petroleum urged Budget 2027 to formalise offshore support vessels as an extra “third eye” for monitoring Malaysia’s waters and critical offshore infrastructure. Healthcare & Aging: Abbott and Sengkang General Hospital expanded muscle health screening and training efforts to support earlier intervention for age-related muscle loss.

Malaysia-EU Trade Push: Malaysia’s National Day in Brussels highlighted growing ties with Belgium and the EU, with focus on high-tech, pharma, logistics, renewable energy and halal, as MEUFTA talks continue and 2025 bilateral trade hit €2.06b. Data Centres & Power Crunch: Malaysia’s data centres are driving a record jump in electricity use, with officials warning of a 9GW gas-fired capacity gap by 2032 as hotter weather boosts cooling demand. Industry Competitiveness: ABB urged Malaysian manufacturers to lift productivity, cut energy use and improve reliability to stay competitive, with Penang flagged as a key automation hub. Export Momentum: MATRADE reported strong trade performance in 1H26, led by E&E exports and growth across ASEAN, US and EU markets. Agri Resilience: Perak’s padi sector readies for Super El Niño with contingency plans on water, seeds and inputs to protect production. Corporate Services Expansion: Acco Group expanded its Singapore corporate services after receiving a CSP licence, targeting regional demand including Malaysia. Global Sanctions Watch: US sanctions escalated against Iran’s aviation sector, including Malaysia-linked firms, raising compliance and logistics risks for regional operators. Tourism Tech at Sea: Adora Cruises unveiled a robot “cultural ambassador” for its Port Klang homeport season, blending AI, robotics and Malaysia’s heritage for travellers.

Energy & Power Planning: Malaysia says it needs about 9GW of new gas-fired capacity by 2032 as electricity demand rises, with data centres driving a record 9.3% share of power use and hotter weather increasing cooling loads; the country targets retiring the last coal plants by 2044. AI & Trade: MATRADE reports RM2.16tn total trade in the first seven months of 2026 (+24.7% YoY), with exports up 29.2% to RM1.165tn, led by E&E (semiconductors, AI infrastructure and data centres). Industry Competitiveness: ABB Malaysia urges manufacturers to lift productivity, cut energy use, improve reliability and speed up sustainability, highlighting Penang’s push in advanced automation. Agri & Food Security: PM Anwar says Malaysia will boost productivity in agro-commodities to raise smallholders’ incomes, with cash and infrastructure support for about 270,000 smallholders. Rubber Glove Sector: Govt tightens rubber glove rules via MRB licensing and export traceability to tackle overcapacity and curb transhipment. Haze Watch: ASEAN is urged to review transboundary haze mechanisms as Serian’s air quality again hit hazardous levels. Payments & Retail Tech: Adyen partners Limitless Technology to consolidate payment gateways across brands in Malaysia, Singapore, Hong Kong and Australia.

Aviation & Safety: Malaysia Airlines MH156 (KL–Jeddah) diverted to Chennai after an engine issue (Engine No. 2); full emergency declared, 186 onboard landed safely, with passengers temporarily housed while engineers assess the aircraft. Aviation Policy: Transport Minister Anthony Loke says Malaysia has not decided on a compulsory aviation carbon tax yet, though it will follow a phased approach aligned with ICAO’s 2050 net-zero goal. Energy Infrastructure: Gas Malaysia and Petronas Gas will study an onshore lateral pipeline linking the proposed Yan regasification terminal to the Peninsular Gas Utilisation system, with PGB leading the feasibility work. Regional Trade & Security: Malaysia and Thailand will streamline border-agency coordination to curb smuggling and avoid duplicated fencing efforts. Agri-Food Business: MAHA 2026 drew over 5 million visitors and secured RM10.35bn in MoUs; China accounted for nearly a third of the value, spanning fruits, seafood, smart agri tech and fertilisers. Digital Trade: Malaysia and Hungary are guest countries of honour at China’s 5th Global Digital Trade Expo in Hangzhou (AI theme), with Malaysia-linked participation highlighted. Mobility Market: Malaysia’s July 2026 light-duty vehicle registrations rose to 80,030; electrified vehicles were 15.7%, with Chinese brands gaining share.

Agri-Food Deals at MAHA 2026: Malaysia’s MAHA 2026 ended with 5 million visitors and 97 MoUs worth over RM10.35b, with China taking nearly a third of strategic collaborations, spanning durian, pineapple, seafood, smart farming tech and fertiliser. Pineapple Downstream Push: LPNM flagged RM2.3b in potential pineapple investments from MAHA, betting on downstream processing like a natural sweetener from pineapple extracts. Border Security Coordination: Foreign Minister Mohamad Hasan said Malaysia and Thailand will streamline agency coordination on border security and smuggling, including avoiding duplicated fencing works. Aviation Policy Watch: Transport Minister Anthony Loke said Malaysia hasn’t decided on a compulsory aviation carbon tax, though it will follow a phased emissions-reduction approach aligned with ICAO net-zero goals. STEM Talent Pipeline: PM Anwar urged Malaysia to move from being a tech consumer to creating and mastering technology, while UniMAP highlighted TVET “teaching factories” and MOHE/MPM sponsored top STPM students. Energy Storage Financing: Blueleaf Energy and Universal Peak secured financial close with UOB for a 100MW/400MWh BESS under MyBeST, targeting mid-2027 commissioning. Data Centres Under Strain: Analysts warned Malaysia’s data centre build-out faces power and water constraints as projects shift from announcements to operations, with Johor central to growth. Cross-Border Logistics Digitisation: FedEx said AI and remote monitoring are being rolled into Malaysia–Singapore freight operations ahead of JS-SEZ integration. Bursa Flows: Local institutions extended net buying on Bursa Malaysia to six straight weeks with RM120.3m inflows, while foreign institutions stayed net sellers.

Tourism Push: Malaysia’s 59th MATTA Fair at MITEC (4–6 Sept) drew a record travel crowd, supporting Visit Malaysia 2026 targets of 47m arrivals and RM147.1b receipts, with Malaysia Aviation Group back as official airline partner. Agri-Business & Policy: At MAHA 2026, PM Anwar said Budget 2027 may raise MAFS allocations based on performance, while also ordering MACC to probe delays in Fertiliser 3 supply to Kedah paddy farmers under MADA. Haze & Operations: Malaysia declared an emergency in Sarawak’s Serian Division after Indonesia-linked air pollution hit very hazardous levels; workplaces can continue with health precautions, but 647 schools close from 7 Sept. EV Manufacturing Watch: BYD says it will reveal its Malaysia EV development plan within a week, as local assembly becomes the practical route after CBU tax rules tightened. Industry Events: Deputy MITI will open the Asian Lubricant Exhibition (ALE) 2026 in KL (8–10 Sept), spotlighting supply-chain resilience and industry partnerships. Education & Talent: UniMAP is highlighted as “on the right track to go global,” with microelectronics research and international mobility programmes supporting Malaysia’s semiconductor talent pipeline.

Agri Governance Crackdown: Prime Minister Anwar Ibrahim ordered MACC to investigate delays in Fertiliser 3 deliveries to padi farmers in MADA, warning contracts could be cancelled and suppliers prosecuted if they repeatedly fail. MAHA 2026 Results: The agriculture fair closed with 4.3m+ visitors (on track to exceed 5m), RM66.88m sales, and MoUs worth about RM10.3b—pushing for faster follow-through on tech and partnerships for farmers. Budget 2027 Signal for Agriculture: Anwar hinted MAFS funding may rise in Budget 2027, citing the ministry’s performance and new programme priorities. Fuel Security Watch: Malaysia’s fuel supply is said to remain stable through year-end, but oil prices may stay elevated for 2–3 years due to West Asia risks and shipping disruptions. Semiconductor Growth in Penang: ABB says Penang’s AI-driven semiconductor momentum needs reliable smart power infrastructure and more skilled talent. EV Maker Update: BYD says it will announce its next Malaysia development move within a week, but details on local assembly vs partnerships remain unclear. Education & Industry Link: UniMAP is highlighted for globalising via ASEAN-linked collaborations, including microelectronics research capacity under MiCTEC. Disaster Response: SMART MAS01 reached Nepal for relief work, with rescue gear and drone tech onboard.

Agri-Business Momentum at MAHA 2026: Malaysia’s MAHA 2026 MoUs hit RM12.6bil, beating the RM8bil target, with China-linked commitments at RM4bil and NAFAS contributing RM1.5bil to push fertiliser industry development; the expo also drew 3.45m visitors and 690,000+ vehicles into MAEPS. Regulatory Sandbox for Agrifood Startups: KPKM will use a “sandbox” with local authorities to align rules for new agrifood business models, alongside the launch of DAEM’s IMAN AI system for halal fresh meat orders via WhatsApp. EV Localisation Watch: BYD says a major Malaysia expansion plan will be announced within a week, with ongoing talks on partnering versus local manufacturing (Sime Motors links remain in focus). Energy & Industry Budget Push: MITI submitted 11 initiatives for Budget 2027, prioritising semiconductor acceleration and tech upgrades for SMEs to move up the value chain. Energy Literacy on the Ground: TNB is rolling out MELP to rural communities, focusing on bills, myTNB app use, saving tips and electrical safety. Haze & Operations: Sarawak’s Serian remains in hazardous haze levels (API 334); workplaces may continue but must follow health precautions. Shipping/Offshore Deal Clarity: Clarity is emerging around possible privatisation-related moves involving MISC and Yinson, with attention on their floating production fleets. Oil & Gas Growth Deal: EnQuest’s $833m Malaysia acquisition is set to close by Dec 31, targeting major production and reserve gains through 2030.

EV & Auto Expansion: BYD says it will announce its next Malaysia move within a week, weighing local partner cooperation versus its own manufacturing push as Malaysia ramps up its NEV ecosystem. Manufacturing Automation: Seng Fong Holdings’ rubber processing is using AI-guided robotics to handle irregular blocks, cutting labour costs by 20–30% and boosting efficiency—another sign SMEs are turning tech into productivity gains. Defence MRO Push: GTA Holdings plans a Centre of Excellence after ACE listing to strengthen R&D, training and tech transfer for Malaysia’s defence industry, including exploring advanced test-bench equipment. Budget 2027 Focus: MITI submitted 11 initiatives to MOF, prioritising semiconductor acceleration and support for SMEs to expand overseas, plus programmes to raise tech use and shift to higher-value activities. Agri-Food & Trade: MAHA 2026 wraps tomorrow with PM Anwar officiating, keeping agro-food innovation and business matchmaking front and centre. Haze & Operations: Sarawak declared an emergency for Serian after hazardous API readings; schools and many workplaces pause while essential services continue, with health precautions urged. Markets Watch: KLCI futures are expected to trade firmer next week on resilient domestic fundamentals and improving regional sentiment. Energy & Logistics: TNB continues energy literacy outreach in rural communities, while cargo and port activity remains in focus amid regional connectivity upgrades.

Immigration Crackdown: During Op Mahir, JIM officers raided timber, glove and food-court sites in Perak and the Kuala Lumpur area, inspecting 305 workers; some foreign workers hid among boards, waste bins and wardrobes, with minor injuries reported. Transport & Logistics: The Kuantan Port Interchange on LPT2 (East Coast Expressway Phase 2) opened, cutting travel time to Gebeng and Kuantan Port by up to 30 minutes and easing congestion toward industrial and logistics zones. Agri-Food Push: MAHA MoUs hit RM9.3bil (above RM8bil target), with China as the top partner; NAFAS also signed a RM1.5bil pact to build an integrated phosphate fertiliser industry. Fast-Track Exports: A proposed “Smart Durian Fast Track” could let Malaysian durians clear China customs in 3–4 hours via coordinated inspection and release. Health System Upgrade (Sabah): MOH plans 53 Sabah health projects worth RM1.56bil, including hospital/clinic works and digitalisation. Industrial Expansion (Penang): SkyGate NHJ Technology opened a 36,000 sq ft precision engineering facility in Perai to boost CNC and automation capacity. Trade & Industry Diplomacy: Anwar met Macau CE Sam Hou Fai to deepen cooperation across trade, tourism and finance, leveraging Macau/Hengqin’s Greater Bay Area links. Infrastructure Disruption (Penang): Parts of Tun Dr Lim Chong Eu Expressway and Gat Lebuh Cecil will close Sept 7–10 for LRT utility relocation works. Haze Alert (Sarawak): Serian’s Air Pollutant Index hit 521, crossing emergency-level readings as haze worsens. Tech & Manufacturing: Vivo launched the V80 Lite 5G in Malaysia with a 10,000mAh battery, signaling wider mid-range battery competition.