In today’s episode, we unpack Malaysia’s expanding aviation and tech ambitions, major infrastructure moves, and the rising global trade tensions shaking markets. From AirAsia’s record jet order to U Mobile’s 5G rollout and China’s rare earth curbs, here’s what matters now.
🇲🇾 Malaysian Company & Market News
🔹 Telcos Face Diverging PathsKenanga predicts special dividends for Time and Maxis as they restrain capex, while U Mobile ramps up spending to build Malaysia’s second 5G network—targeting 80% population coverage by late 2026. Potentially transformative, but risks an industry-wide profit squeeze.
🔹 EG Industries Expands in PenangPartnering with China’s Cambridge Industries to add high-speed lines and cleanrooms—strengthening Malaysia’s regional 5G supply chain.
🔹 Foreign Investment in Digital Economy SoarsQ2 FDI surged 125% to RM29.5B, largely into data centers—highlighting Malaysia’s digital infrastructure momentum.
🔹 US AI Chip Export Restrictions LoomDraft rules could restrict shipments to Malaysia and Thailand, sparking volatility in tech and construction stocks. Potential exemptions remain unclear.
🔹 Heineken Malaysia Hikes Prices 2–8%Effective August 1—analysts expect a 5% drop in sales volume but stronger margins.
🔹 AirAsia Orders 50 Airbus A321XLR JetsUS$12.25B deal expands long-haul budget network—opens potential direct flights to Europe and the US.
🔹 Malaysia Airlines Doubles A330neo Fleet20 new orders raise the total to 40—enhances premium Asia-Pacific connectivity.
🔹 NexG Secures Passport Contract ExtensionsHome Ministry renewals support earnings stability.
🔹 OSK Enters Motorcycle FinancingRM16.5M acquisition expands consumer credit footprint.
🔹 Proton Gains Market ShareJune share hit 20.7% despite industry volume dip—driven by strong SUV and EV sales.
🔹 Petronas Gas Restores Selangor SupplyThree months post-blast—new safety systems in place, permanent pipeline planned.
🔹 Petronas Drills Offshore SurinameThree-well exploration program aligns with global upstream push.
🏛️ Domestic Economy & Policy
🔸 Malaysia’s FX Reserves Hit US$120.6BDecade-high reserves cover 4.8 months of imports—underpinning currency stability.
🔸 Foreign Inflows into Bursa MalaysiaSecond straight week of net buying—RM303M, mainly into utilities and industrials.
🔸 Johor-Singapore Special Economic Zone AdvancesExpected to catalyse new satellite towns, tourism, and cross-border commerce.
🔸 Expats Gateway Cuts Hiring TimesStreamlined approvals from a year down to 20 days—boosts business productivity.
🌍 Global & Market Developments
⚠️ US Tariff Threats ExpandTrump proposes 10% tariffs on BRICS-aligned nations—Malaysia clarifies independent foreign policy. Negotiations ongoing to reduce Malaysia’s 24% tariff.
🇨🇳 China’s Rare Earth Curbs Disrupt Supply ChainsAuto parts production halted—magnet makers face shortages despite some US deals.
🇨🇳 China May Double Bond Connect QuotaPotential RMB1T southbound quota expansion could boost yuan internationalisation.
🛢️ OPEC+ Raises August Output+548,000 barrels/day, but oil prices steady amid persistent demand.
🇺🇸 US Jobs Strong, Fed Holds SteadyUnemployment down to 4.1%—rate cuts delayed. However, trade deficit widened in May.
🇺🇸 US Lifts Chip Software Export RestrictionsSynopsys and Cadence can resume sales to China—signals limited thaw.
🇪🇺 EU Eyes 90% Emissions Cut by 2040Includes carbon offsets—ambitious but contentious policy.
📈 US Stocks Hit Record HighsBoosted by tech rally and easing trade fears—Barclays exuberance gauge elevated.
💵 Hong Kong Defends Currency PegHK$20B intervention to stabilise against USD.
📌 Key Takeaways & Investor Insights
✅ Malaysia’s aviation and digital infrastructure investments are scaling rapidly—AirAsia and SkyeChip moves are headline-grabbing.✅ Potential US chip export curbs underscore geopolitical risks—diversification and resilience are critical.✅ Johor-Singapore zone and expats gateway aim to attract high-value talent and capital.✅ Global trade tensions and currency moves remain top-of-mind risks—watch for sudden sentiment shifts.✅ Strong reserves and foreign inflows help buffer Malaysia’s near-term stability.
🎧 Listen Now for a deep dive into Malaysia’s financial gems and global trends shaping 2025!
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