Malaysia

MIDF Amanah Investment Bank Bhd anticipates Malaysia’s manufacturing sector will sustain its recovery momentum, supported by improving factory output and steady domestic demand, even as external risks such as tariff hikes pose ongoing challenges. This outlook is underpinned by the latest S&P Global Manufacturing Purchasing Managers’ Index (PMI), which rose to 49.3 in June 2025 — its highest level since October 2022. The uptick signals stronger production activity and a more moderate decline in new orders, reflecting renewed operational resilience within the sector. In a research note, the investment bank said it expects Malaysia’s Industrial Production Index (IPI) to gain traction, driven by manufacturing output recovery and a temporary boost from external trade. “Sentiment in financial markets indicates that expectations are beginning to move past tariff-related uncertainties,” the firm noted. However, it warned that continued weakness in mining output could dampen overall IPI performance in the months ahead. In related data, the Department of Statistics Malaysia (DOSM) reported that manufacturing sales rose 2.4% year-on-year to RM158.7 billion in May 2025, although this marked a slowdown from the 4.7% growth recorded in April. Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin attributed the May performance primarily to the food, beverages, and tobacco sub-sector, which recorded a robust 13.0% year-on-year increase, following a 10.8% gain in April. Looking ahead, MIDF Amanah expects short-term manufacturing sales to remain firm, buoyed by a temporary lift from the current pause in tariff increases before the implementation of new US tariffs scheduled for 1 August 2025. While the firm acknowledged that upcoming US tariff measures could weigh on production in export-driven segments, it remains optimistic that robust domestic consumption and ongoing construction activity will continue to support production in domestically focused industries. Given the current trajectory, MIDF Amanah maintains its projection that Malaysia’s IPI growth will moderate to 2.0% for 2025. It also cautioned that extended external uncertainties — particularly those stemming from higher tariffs and a potential drop in final demand — could prompt export-oriented manufacturers to scale back operations, especially as the impact of front-loading activities fades once the new US trade measures take effect. Nonetheless, the investment bank remains confident that the IPI will stay in expansionary territory, bolstered by higher output in domestic-facing industries. This outlook is supported by resilient household spending, favourable labour market conditions, and rising income levels. -Bernama

Econpile Holdings Berhad has announced the award of a RM98.2 million contract from Eastmont Sdn Bhd for the execution of bored piling and associated works in Klang, Selangor. In a statement to Bursa Malaysia, the company confirmed that its wholly owned subsidiary, Econpile (M) Sdn Bhd, received the letter of award on 10 July 2025. The scope of works comprises bored piling for Blocks C and D, the construction of a basement for Block C, and pile cap works for Block D, as part of a proposed industrial development located in Sungai Kapar Indah. The project is scheduled to commence on 30 July 2025 and is expected to be completed within a 13-month timeframe. Econpile stated that the contract is anticipated to contribute positively to the Group’s revenue and earnings for the financial year ending 30 June 2026 and beyond. -The Star

Malaysian Resources Corporation Berhad (MRCB), through its wholly owned subsidiary Country Annexe Sdn Bhd (CASB), has signed a joint venture development agreement with Ipoh Sentral Sdn Bhd (ISSB) for the development of the Ipoh Sentral project in Perak. The agreement, announced via a filing with Bursa Malaysia, establishes the partnership for a proposed mixed-use project structured around a transit-oriented development (TOD) model. The development is set to be located on two parcels of leasehold land with a combined area of 296,727 square metres, currently being transferred from Railway Assets Corporation to its wholly owned unit, Railway Assets Holding Sdn Bhd. Under the terms of the agreement, CASB will act as the master developer, responsible for initiating the planning and design phases, including the submission of the development’s masterplan to the relevant authorities. The project, excluding a designated cultural zone, has an estimated gross development value (GDV) of RM6.25 billion and a gross development cost (GDC) of RM5.62 billion. As part of the arrangement, CASB will make a consideration payment to ISSB of up to RM348 million, comprising a guaranteed minimum payment of RM198 million. The payment will be made over the course of the 20-year development through a combination of cash and in-kind assets. MRCB stated that the venture aligns with its long-term strategy to expand its land bank and strengthen its leadership in the TOD segment. The company highlighted that the Ipoh Sentral development is expected to generate recurring income throughout its duration and further demonstrate MRCB’s expertise in property development, engineering and construction. The group noted that both the commencement and completion timelines of the development remain undetermined, pending submission and approval of the full development plan by the relevant authorities. -The Star

Malaysia should intensify its trade relationships with nations beyond the United States, including China, to cushion the impact of tariffs imposed by the US government, former prime minister Tun Dr Mahathir Mohamad has said. In an interview with Bloomberg, Dr Mahathir criticised the protectionist tariff measures implemented by the Trump administration, stating that such policies would ultimately cause greater harm to the United States than to its trading partners. “The rest of the world will suffer, but America will suffer more because all those industries which were set up by Americans outside of America to take advantage of low costs,” he remarked. Responding to suggestions that any move to negotiate a reduction in tariffs might be construed by Washington as an admission of vulnerability, Dr Mahathir clarified that the brunt of the impact would be borne primarily by countries with significant export exposure to the United States. He emphasised that most of the international community was not implementing similar high tariff measures. “As such, we should increase our trade with the rest of the world. With China, for example. To a certain extent, we can mitigate the effect of Trump’s high tariffs by avoiding America,” he noted. Earlier this week, US President Donald Trump announced a 25% tariff on Malaysian exports, raising it from an initial 24% following a 90-day postponement. In April, Dr Mahathir had told Free Malaysia Today that the wide-ranging US tariffs—ranging from 10% to 49% and affecting approximately 60 countries—were likely to backfire. He warned that the measures would result in higher prices for goods within the US, thereby increasing the cost of living for American consumers. ‘We Cannot Hold the Past Against Japan’ Separately, Dr Mahathir addressed Japan’s wartime history, urging Malaysia to move forward from the atrocities committed by Japanese forces during World War II. Reflecting on his own experience during the Japanese occupation at the age of 16, he acknowledged the suffering endured but stressed that Japan had since transformed profoundly. “We cannot hold their past against them,” he said, adding that Japan’s rapid post-war recovery and economic ascendancy served as a valuable model for developing nations. “At one time, they were number two in the world. We thought that we should learn from them, we should emulate them, and we should aim to achieve what they achieved,” he added. -FMT

Mah Sing Group Bhd has announced the successful completion of its RM250 million sukuk murabahah issuance under its existing sukuk murabahah programme. This latest exercise underscores the group’s continued efforts to strengthen its financial position and support future growth through syariah-compliant financing instruments. In a filing with Bursa Malaysia, the property developer confirmed that the sukuk carries a five-year tenure and offers a fixed profit rate of 4.25% per annum, payable on a semi-annual basis. The sukuk is secured by assets owned by Mah Sing’s subsidiaries along with designated accounts, providing a level of assurance to investors. According to the group, the proceeds from this issuance will be used strictly for syariah-compliant purposes. These may include land acquisition, capital expenditure, strategic investments, and general working capital requirements across Mah Sing and its subsidiaries, as well as associate companies. The successful completion of this sukuk issuance reflects investor confidence in Mah Sing’s long-term strategy and its disciplined approach to financial management. -The Star

Malaysia’s aerospace industry is expected to record robust growth this year, with revenue projected to increase by up to 25% from RM25.1 billion in 2024, according to Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz. Speaking at a Malaysia Aerospace Industry Association (MAIA) event, Tengku Zafrul highlighted the nation’s continued progress in strengthening its position within the global aerospace landscape. Malaysia has already secured RM1.5 billion in approved investments this year and recorded aerospace exports totalling RM8.17 billion—figures he said underscore rising international confidence in Malaysia’s technical capabilities, resilience, and skilled workforce. “Our 30,000-strong aerospace workforce continues to excel across the value chain, from aircraft structure manufacturing and engine components to avionics, maintenance, repair and overhaul (MRO), and systems integration,” Tengku Zafrul said. “These milestones are made possible by the collaborative efforts between the government, academia, and industry leaders working in synergy to elevate Malaysia’s aerospace sector.” Tengku Zafrul also highlighted recent commitments from major Malaysian carriers, signalling strong momentum in fleet modernisation and strategic expansion. Malaysia Airlines has doubled its order of Airbus A330neo aircraft, exercising options for an additional 20 units and raising its total commitment to 40 aircraft. Meanwhile, AirAsia has inked an agreement to acquire 50 Airbus A321XLR aircraft, with an option for 20 more. These long-range, fuel-efficient aircraft are expected to support the airline’s ambition to penetrate long-haul, low-cost markets, particularly in Europe and North America. “These fleet expansion strategies are more than just investments in hardware,” he said. “They reflect broader confidence in Malaysia’s growing role as a regional hub for MRO services, parts supply, and aerospace talent.” -FMT

Selangor has once again demonstrated its position as Malaysia’s economic powerhouse by recording a gross domestic product (GDP) of RM432.1 billion in 2024, an increase from RM406.1 billion in 2023. This achievement marks the second consecutive year the state has exceeded the RM400 billion GDP threshold, solidifying its leadership in national economic performance. According to a statement by Invest Selangor Berhad, the state’s economic output accounted for 26.2% of Malaysia’s total GDP in 2024, rising from 25.9% the previous year. As the state government’s one-stop agency for investment promotion, Invest Selangor plays a key role in driving strategic economic initiatives and industrial development. Selangor also posted a GDP growth rate of 6.3%, outpacing the national average of 5.1%. The state contributed 32.9% to the country’s total manufacturing output and led the services sector with a 26.9% share of national performance in the segment. The services sector remained Selangor’s primary growth engine, contributing 61.1% to the state’s GDP, equivalent to RM263.9 billion, with a year-on-year growth of 6.3%. This expansion was underpinned by strong performance in wholesale and retail trade, food and beverage services, accommodation, utilities, transport and storage, information and communications, finance and insurance, real estate and business services. Manufacturing was the second-largest contributor, representing 29.1% of the state’s GDP and registering a 5.1% increase. This was driven by key sub-sectors such as electrical and electronics, food processing, vegetable and animal oils and fats, beverages and transport equipment. Selangor Menteri Besar Datuk Seri Amirudin Shari attributed the sustained economic momentum to the collective commitment across public and private sectors, civil society, and the wider community. He noted that the integration of modern infrastructure, a skilled talent pool and strong investor confidence continue to position Selangor as a premier investment destination. “Our continued progress is a reflection of the collective commitment and hard work of all stakeholders from the public and private sectors to civil society and the rakyat. Together, we have built a thriving ecosystem that not only attracts investment, but also creates quality jobs and uplifts communities,” said Amirudin. Invest Selangor chief executive officer Datuk Hasan Azhari Idris reaffirmed the agency’s focus on strengthening regional economic leadership. He highlighted the upcoming Selangor International Business Summit (SIBS) 2025 as a key platform to facilitate trade, investment, and global business connectivity across Southeast Asia. -The Star