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Malaysia Money Matters Daily News Digest 18th July 2025
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Malaysia Money Matters Daily News Digest 18th July 2025

Big Bets on Data, Rail & Resilience

Today’s episode is a fast-moving episode that cuts through local headlines and global shifts. From a national construction and tech boom to renewed US tariffs, we unpack how Malaysia is navigating growth, risk, and resilience in a turbulent global economy.

🇲🇾 Malaysia’s Economic & Market Pulse

🔹 Q2 GDP Growth Seen at ~4%
Full-year projection trimmed to 3.8% amid external pressures.
✅ BNM’s OPR cut to 2.75% seen as a one-time move to shield growth.

🔹 Infrastructure-Led Resilience
Massive construction push driving domestic demand, including:

  • CBH Engineering: RM172M data center contract.

  • Gamuda & MN Holdings: Positioned for RM10B in new data center builds.

  • MRT3, Penang LRT, Perak water supply deals gaining traction.

🔹 Johor Property Surge
Q2 prices up 20%+ for serviced apartments, driven by:
✅ Johor-Singapore Special Economic Zone
✅ Rapid transit links and Singaporean spillover demand.

🔹 Sabah’s LNG Play
SMJ Energy acquires 25% of Petronas’ floating LNG project.
✅ Strategic state-level investment in long-term energy capability.

🔹 EPF Trims Stake in Sunway Construction
Institutional shift, though company still strong with RM2.9B in contracts YTD.

🔹 NexG Wins Passport Chip Extension
And TSM Global to convert Eastin Hotel PJ into a Marriott (RM100M revamp).

🔹 Sunway Goes Abroad
Secures land for RM2.33B residential project in Singapore.

🔹 Palm Oil Export Duty Hike
August CPO reference price triggers a 9% export duty—timing is key amid global trade tensions.


🌐 Global Trade & Political Pressures

🔸 US Imposes 25% Tariff on All Malaysian Goods (effective August 1)
Analysts see:
✅ 55% chance of negotiation success, aiming for 15–19% range.
❗ GDP could dip below 4% if fully implemented.

🔸 Global Reactions & Adjustments

  • India: Confident in oil source diversification.

  • Standard Chartered: Forecasts weak USD—positive for Asian exports.

  • Tensions Rising: EU considers retaliation if Trump escalates tariffs further.

🔸 US Market Update

  • USD rebounds as Fed chair speculation cools.

  • John Williams (NY Fed): Tariffs could raise US inflation by 1% and slow growth.

  • Retail sales strong—but possibly inflated by higher prices.


🔍 Strategic National Moves

🔹 E-Commerce Bill Coming 2026
Will address:

  • Foreign digital platforms without local presence

  • Regulation of automated algorithms

🔹 Malaysia’s Innovation Push
Govt explores:

  • Advanced materials, green tech, deep tech, and even modular nuclear reactors

  • Investment strategy to attract high-impact industries

🔹 China Flags Overcapacity Risk
Xi Jinping warns against too many provinces chasing same trends (AI, EVs), signaling possible policy realignment.


📌 Key Takeaways & Investor Insights

✅ Malaysia is doubling down on infrastructure, tech, and energy to counterbalance global volatility.
✅ US tariffs create downside risk, but BNM’s proactive policy, strong domestic demand, and rising regional investments offer a cushion.
✅ Watch for sector-specific winners—data centers, rail, renewables, and logistics.


🎧 Listen Now for a deep dive into Malaysia’s financial gems and global trends shaping 2025!

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