Inovatif

Category: Investments

  • Rakuten Trade keeps KLCI target at 1,770, sees grid spending driving year-end upside

    Rakuten Trade keeps KLCI target at 1,770, sees grid spending driving year-end upside

    Rakuten Trade is maintaining its end-2026 FBM KLCI target at 1,770, despite around RM2 billion of net foreign selling in August, as it sees power and grid-related earnings providing clearer visibility into year-end than renewed semiconductor optimism ahead of Budget 2027.

    The FBM KLCI has traded largely within the 1,700-1,740 range since late August, slipping below 1,710 in the first week of September. Rakuten Trade Research noticed that foreign investors were net sellers of around RM2 billion in August, reversing the buying trend seen in July. Local retail investors, meanwhile, remained net buyers for a fourth consecutive month.

    “The market is being held up by domestic money, that largely follows earnings visibility rather than announcements. We are keeping our 1,770 target because recent results season depicted growth remains intact with utilities being one of the contributors and — they sit in the grid, not in the chip cycle,” said Kenny Yee, Head of Research at Rakuten Trade.

    Grid investment offers clearer earnings visibility

    Rakuten Trade sees Malaysia’s ongoing investment in power infrastructure as a key earnings catalyst into year-end and beyond.

    Tenaga Nasional’s grid capital expenditure program rises to RM43 billion for 2025-2027, compared with RM21 billion spent across 2022-2024. Further investment is expected through 2030 as the national grid is upgraded to support renewable energy, battery storage and rising electricity demand, including those from data centres.

    The government has also identified energy transition as one of five priority sectors for Budget 2027, alongside semiconductors, the digital economy, artificial intelligence and Islamic finance.

    “A semiconductor order book can turn within a quarter. A grid programme running to 2030 cannot. The money is committed and the work is sequenced. Earnings are then showed up within the companies involved usually within the utility and construction segments,” said Yee.

    Rakuten Trade believes the opportunity extends beyond traditional renewable-energy plays, with grid expansion requiring sustained investment in transmission, substations, electrical systems and related engineering works.

    Three preferred beneficiaries

    Rakuten Trade’s preferred exposure to the theme spans the utility operator and companies further down the infrastructure value chain.

    Tenaga Nasional (TENAGA): Target Price: RM17.00

    As the owner and operator of Malaysia’s electricity transmission and distribution network, Tenaga Nasional is positioned to benefit directly from continued grid investment and rising electricity demand. Growing data center capacity provides an additional long-term demand driver, while stock offers an estimated dividend yield of around 3.5%.

    Kee Ming Group (KEEMING): Target Price: RM1.30

    Kee Ming Group provides mechanical and electrical engineering services and has an unbilled order book of approximately RM151.9 million. Its strategic shareholder relationship with Solarvest Holdings provides additional exposure to Malaysia’s developing energy infrastructure.

    Gamuda (GAMUDA): Target Price: RM5.30

    Gamuda’s RM55.4 billion outstanding order book provides multi-year earnings visibility across domestic infrastructure and its overseas operations, positioning the group to benefit from continued infrastructure investment.

    “We would rather own the people building the network than guess which technology wins on top of it,” said Yee.

    Budget 2027 is the next key test

    Rakuten Trade’s 1,770 KLCI target assumes that Budget 2027, to be tabled on 9 October, confirms rather than materially defers planned energy-transition spending.

    “If the Budget pushes energy-transition spending into the back half of the plan period, or the grid allocation comes in materially below what has been signaled, we would revisit the number,” said Yee.

    The firm also highlighted risks from weaker-than-expected Budget allocations, delays in large infrastructure tenders and project execution, continued foreign fund outflows and volatility in global interest rates.

    For investors, Rakuten Trade believes the period ahead of Budget 2027 will be less about chasing the latest market headline and more about identifying sectors where earnings visibility is supported by committed investment programmes.

  • Banks’ asset quality stays robust amid headwinds

    Malaysian banks’ asset quality remains resilient despite a slight deterioration amid heightened uncertainties arising from the Middle East conflict and ongoing US trade tensions. The banking system’s gross impaired loan (GIL) ratio edged up to 1.43% as at end-June 2026 (end-December 2025: 1.37%). Nevertheless, overall credit fundamentals remain sound, supported by healthy loss-absorption buffers and banks’ proactive credit risk management. RAM expects the GIL ratio to remain broadly stable at around 1.4% by end-2026.

    “While we are seeing higher delinquencies in certain loan segments, overall asset quality remains robust by historical standards. Encouragingly, most banks have not reported any material increase in requests for repayment assistance. Favourable labour market conditions, as reflected in the low unemployment rate of 3%, will help mitigate further deterioration in asset quality,” said Wong Yin Ching, RAM Ratings’ Senior Vice President of Financial Institution Ratings. RAM remains watchful of SMEs and lower-income borrowers, given their greater vulnerability to an economic downturn.

    The annualised average credit cost ratio of eight selected local banks stayed largely stable at 18 bps in 2Q 2026 (1Q 2026: 19 bps). Most banks continue to maintain management overlays, with several institutions increasing provisions during the quarter in view of macroeconomic uncertainties. Meanwhile, the average GIL coverage ratio (including regulatory reserves) remained healthy at 139%, well above the pre-pandemic level of 107% as at end-2019.

    Banking sector loan growth strengthened to 5.5% y-o-y in 1H 2026 (2025: 4.8%), driven primarily by business loans (6.1%), while household lending moderated to 5.0%. Growth in business financing was largely attributable to corporate borrowers rather than SMEs. Meanwhile, growth in residential mortgages – the largest subsegment of household loans – continued to decelerate over the past two to three years, easing to 5.4% in 1H 2026 (2025: 5.9%; 2024: 6.9%).

    Net interest margins contracted by 3 bps q-o-q to 2.01%, reflecting intense competition for deposits and loans, and are expected to remain under pressure for the rest of the year. Nevertheless, stronger non-interest income and improved cost efficiency more than offset margin compression, lifting the average pre-tax return on assets of eight selected local banks to 1.39% in 2Q 2026 (1Q 2026: 1.33%).

    The banking system’s common equity tier-1 ratio declined to 13.9% as at end-June 2026 (end-June 2025: 14.7%), primarily due to stronger loan growth, lower securities valuations and higher dividend distributions. Capitalisation, however, remains healthy and provides ample loss-absorption capacity. In addition, banks adopting the Standardised Approach for credit risk are anticipated to benefit from capital savings following the implementation of the Basel reforms on 1 July 2026.

    The eight selected banks in RAM’s roundup are AFFIN Bank Berhad, Alliance Bank Malaysia Berhad, AMMB Holdings Berhad, CIMB Group Holdings Berhad, Hong Leong Bank Berhad, Malayan Banking Berhad, Public Bank Berhad and RHB Bank Berhad.

  • Principal® and CIMB expand Signature Series with launch of first Shariah-compliant fund

    Principal® and CIMB expand Signature Series with launch of first Shariah-compliant fund

    Principal Financial Group® and CIMB Group Holdings Berhad (CIMB) via their joint venture Principal Asset Management Berhad (Principal), launches the Signature Dynamic Income Focus-i Fund (SDIFi) as the first Shariah-compliant fund in its Signature Series product suite.

    The suite, which also includes the Signature Dynamic Income Fund, Signature Dynamic Income & Growth Fund (SDIFi), and Principal Strategic Global Growth Fund, has surpassed RM2 billion (as of July 2026) in total assets under management.

    SDIFi is designed to provide investors with global diversification and portfolio resilience, while maintaining an income-focused approach. The Fund also incorporates a measured allocation to Shariah-compliant equities, offering the potential for long-term capital growth and diversified sources of return. Its global mandate provides the flexibility to identify opportunities across regions and issuers, rather than relying on a single market.

    All investments in the SDIFi are subject to rigorous Shariah screening and exclude businesses involved in non-permissible activities, including alcohol, gambling, tobacco and other sectors that do not comply with Shariah principles.

    “Investors across the region are increasingly looking for solutions that can help them navigate uncertainty while continuing to generate income and pursue long-term growth. As the first Shariah-compliant fund in our Signature Series, the Signature Dynamic Income Focus-i Fund expands the range of investment options available to our investors, combining global diversification with a flexible approach that can adapt to changing market conditions. We believe this makes it a compelling solution for those seeking to build wealth while remaining aligned with their values,” said Munirah Khairuddin, Chief Executive Officer and Head of Principal Asset Management Berhad.

    The Fund brings together Principal’s global investment expertise with CIMB’s Chief Investment Office advisory and market insights, supporting a disciplined approach to portfolio construction and investment decision-making.

    “CIMB is focused on offering savings, wealth, and protection solutions backed by deep insights and advisory to shape better solutions for our customers. Together with Principal, we continue to augment our comprehensive wealth ecosystem that enhances the growth, protection and legacy goals of our customers across ASEAN markets, which aligns with our purpose of advancing customers and society,” added Haniz Nazlan, Chief Executive Officer, Group Consumer Banking, CIMB.

  • BSN and PruBSN launch BSN Takaful Legasi

    BSN and PruBSN launch BSN Takaful Legasi

    Bank Simpanan Nasional (BSN) and Prudential BSN Takaful Berhad (PruBSN) launch BSN Takaful Legasi, a new family takaful solution that helps Malaysians build financial security through every stage of life. Together, BSN and PruBSN currently provide financial protection to more than 600,000 customers across Malaysia, representing over RM47.9 billion in basic sum covered.

    BSN Takaful Legasi was developed with these changing priorities in mind, offering a solution that grows alongside customers while helping them build long-term financial security. One of the plan’s key features is Protection Enhancer, which automatically increases the Death and Total and Permanent Disability (TPD) benefit every five certificate years, helping customers maintain protection that better reflects their financial commitments over time. Customers who continue with their certificate over the long term are also rewarded through the Legacy Bonus, while selected milestones such as marriage, the birth of a child, home ownership, and Hajj or Umrah are recognised through the Life Celebration Benefit.

    Customers can also personalise their protection through flexible contribution payment options, a choice of protection terms and optional riders, allowing them to select coverage that best suits their financial goals and changing needs.

    “At BSN, we believe good financial planning is not only about building a secure future, but also protecting what matters most. Through our two-decade partnership with PruBSN, we remain committed to making quality protection solutions more accessible and relevant to Malaysians at every stage of life. BSN Takaful Legasi represents another important step forward in advancing this shared commitment,” said Encik Mujibburrahman Abd Rashid, Acting Chief Executive of BSN.

    PruBSN Chief Executive Officer, Shahrul Azlan Shahriman said, “Every stage of life brings new priorities and new responsibilities. As those responsibilities grow, financial protection should grow alongside them. BSN Takaful Legasi was developed with this in mind, offering customers protection that increases overtime while encouraging long-term financial planning. We are proud to continue working with BSN to make solutions like this available to more Malaysians.”

    BSN Takaful Legasi also provides additional accidental death coverage during festive seasons and while performing Hajj or Umrah, subject to the certificate terms and conditions. Eligible customers may also enjoy coverage without medical examination, subject to underwriting requirements.

    BSN Takaful Legasi is available at BSN branches nationwide and through BSN Wealth Planners. For more information, customers may visit their nearest BSN branch or speak to a BSN Wealth Planner.

  • Beyond Insights is built on turning knowledge into results

    Beyond Insights is built on turning knowledge into results

    In 2007, Kathlyn Toh took the bold step of leaving a promising career at a global multinational organisation to pursue trading, full-time on her own. A year later, she went on to embrace her entrepreneurial calling by launching Beyond Insights, an investment and training education academy. Joined by her supportive spouse, Terence Teoh, the formidable couple has built an academy of 30 trainers and coaches, seeing more than 7,000 students through their doors. TSI speaks to Kathlyn, Founder and Terence, Co-Founder of their journey in this competitive industry.

    What are your respective roles in growing the business?
    Terence: On top of her position as Founder, Kathlyn is the Chief Trainer, Chief Analyst, Chief Product Officer and Chief Financial Officer. A master in the field of investing and trading, she’s naturally, the content expert for creating and designing most of the education programmes.

    I, on the other hand, is the CEO and undertakes marketing, sales, student affairs, technology and human capital. This comes from my experience in working with the founders of one of Malaysia’s most successful online companies, as well as managing two startups prior to Beyond Insights.

    Kathlyn and Terence, helming one of the country’s prominent investment and training education academy.

    It’s been quite a journey for Beyond Insights, what do you think is the academy’s measurable impact in shaping Malaysia’s financial literacy landscape?

    Kathlyn: Beyond Insights has played a meaningful role by addressing the widest gap: practical investing and trading capability. Over the past decade, we’ve trained retail investors and professionals with a structured curriculum that covers the full spectrum of investing—from long-term portfolio building to trend trading, intraday trading, options and even trading psychology. What we’ve done is shift people from “awareness” to actual competence.

    We empower Malaysians to make smarter, more disciplined market decisions while managing risk effectively. By building a team of real practitioners and introducing Asia’s first Trading Psychology Bootcamp, the brand has reshaped trading behaviour and emotional management. Through initiatives like the annual Beyond Insights Symposium, we have brought megatrends, macro cycles and market analysis into mainstream conversations, fostering a more informed, resilient and opportunity-ready investing community.

    In a competitive industry, there’s a thin line between empowerment and hype. Your thoughts?
    Kathlyn: Skepticism toward trading academies is valid—too many players have overpromised and underdelivered. The best way to counter this is through transparency, track record and professionalism. At Beyond Insights, we make no guarantees, we teach no shortcuts and we publish exactly what students can expect: a structured curriculum, real practitioners as coaches, multi-year support and a heavy focus on psychology and risk management.

    We draw a very clear line: we empower through competence, not promises. In financial education, hype sells fast but harms long-term trust—and trust is the foundation of our business. So, we’ve built our commercial strategy around authenticity and integrity, not sensationalism. We tell students upfront that trading is a skill, not a shortcut; that risk is real; and that consistency comes from discipline, not magic formulas. When people see our longevity and the depth of our ecosystem, the difference becomes obvious: we’re not about hype, we’re in the skill-building and character-building business.

    Our coaches are real practitioners, which means they teach the realities of losses, drawdowns, and psychological pressure—not just the upside. We structure our programmes with prerequisites and multi-year support to help people progress patiently, not speed them up prematurely. Internally, we reject any marketing that hints at guaranteed outcomes. We grow commercially by sticking to principles—not by inflating expectations.

    Let’s cover something bigger, the country’s financial literacy landscape. How in touch are our policymakers?
    Terence: Malaysia’s policymakers understand the importance of financial education, but the ecosystem isn’t yet designed for agile, skills-based programmes that change investor behaviour. Much of the current structure is built around compliance, certification and formal financial planning—important, but not sufficient.

    Kathlyn: The demand for practical, market-ready skills is rising much faster than the pace of policy evolution. The challenge isn’t a lack of intention; but the frameworks were built for a different era—one where financial education meant avoiding scams and understanding basic products. Today, Malaysians are trading U.S. equities, tech megatrends, options and leveraged instruments at scale. They need agility, not bureaucracy.

    Being successful comes with a price, Beyond Insights was a target for impersonation earlier this year.
    Terence: The impersonation was widespread on social media, riding on Kathlyn’s credibility and our programmes. While our reputation stands firm, it has affected our ability to reach our audiences, and we’ve suffered loss of business. For immediate damage control, we distributed circulars to alert stakeholders.

    Our key takeaway from this ordeal was three points: radical transparency because people can sense exaggeration instantly, so we are glad that our integrity paid off. Secondly, consistency at every touchpoint—ads, content, customer service and product delivery must tell the same story. Finally, our community has been the best support as they vastly carry our credibility. In this digital age, nothing beats real people sharing real experiences.

    Thousands of investors and traders empowered by Beyond Insights.

    Continuing the digital conversation, do you think that AI will one day replace human trainers?
    Kathlyn: AI will transform learning experiences, but it won’t replace human trainers. As a matter of fact, it will expose the replaceable. If a “trainer” is just reading slides, repeating generic content, or teaching tactics they don’t apply… yes, AI will do that better, faster and cheaper.

    But the kind of training we do—personalised coaching, behavioural rewiring, decision-making under pressure, emotional management, personalised feedback, that’s fundamentally human. Markets are uncertain, emotions are messy and people need guidance from someone who has lived through wins, losses, crises and recoveries.

    We see AI as an amplifier, not a substitute. It can handle the heavy lifting: content delivery, personalised drills, data analysis, simulations and real-time market explanations. That frees our trainers to do the one thing AI can’t: build conviction, challenge limiting beliefs and coach transformation.

    The next phase for Beyond Insights?
    Terence: In the immediate horizon, we are launching our first version of mobile application in 2026 to enrich its students’ experience. As for maintaining programme quality, we have designed a long-term tech roadmap to help learners make clearer, faster and more confident investing decisions.

    Final words, what would Beyond Insights be always known for?
    Kathlyn: A brand that holds onto our values and beliefs because we know that it is the only sustainable way to earn and retain the trust of our stakeholders. Today, our students trust us in delivering education that enables them to invest in a systematic, versatile and safe manner. This ultimately empowers them to grow their wealth with peace of mind.

    Full interview available at The SmartInvestor’s Jan/Feb 2026 issue.

  • RHB and Bursa Malaysia expand investor outreach in Melaka

    RHB and Bursa Malaysia expand investor outreach in Melaka

    Earlier this month, RHB Banking Group, in collaboration with Bursa Malaysia Berhad convened investors, listed company representatives, market practitioners and business leaders at the RHB-Bursa Malaysia Retail Corporate Day 2026 in Melaka, reaffirming their shared commitment to strengthening investor engagement and broadening participation in Malaysia’s capital market. The event was officiated by YAB Datuk Seri Utama Ab Rauf bin Yusoh, Chief Minister of Melaka, and attended by more than 200 participants from across the investment community.

    Dato’ Mohd Rashid Mohamad, Group Managing Director/Group Chief Executive Officer of RHB Banking Group said, “Investors today have access to an unprecedented amount of information. The challenge is making sense of that information and understanding what matters most. At RHB, we see value in creating platforms where investors can engage directly with businesses and market practitioners, gain deeper insights and build greater confidence in their investment decisions. These conversations play an important role in fostering a more informed investing community and supporting the continued growth of Malaysia’s capital market.”

    The Melaka edition forms part of RHB’s broader efforts to engage stakeholders across Malaysia through programmes tailored to the needs and interests of different communities and market segments, in line with the Group’s PROGRESS27 corporate strategy.

    Julian Mahmud Hashim, Chief Regulatory Officer of Bursa Malaysia Berhad said, “A strong capital market is built on participation, accessibility and trust. As the marketplace connecting investors and businesses, Bursa Malaysia remains committed to widening access to investment opportunities and strengthening engagement with the investing public. This collaboration with RHB reflects our shared commitment to broadening participation and ensuring that more Malaysians can benefit from the growth potential offered by the capital market.”

    The programme featured discussions on Malaysia’s economic outlook, market developments and emerging investment opportunities, alongside engagements with representatives from RHB, Bursa Malaysia and participating corporates. Additionally, participants were also introduced to RHB’s latest digital banking innovations, including RHB PAY, Malaysia’s first bank-owned unified payment gateway solution, and RHB Reflex 2.0, an enhanced corporate internet banking platform.

    YAB Datuk Seri Utama Ab Rauf bin Yusoh said, “Melaka’s economic transformation continues to gain momentum, with the state’s Gross Domestic Product (GDP) increasing by 3 per cent to RM50.2 billion last year from RM48.8 billion in 2024. This growth has been supported by strong investment activity, business expansion and the implementation of strategic development initiatives across the state.

    “This positive trajectory has been further strengthened by Melaka’s achievement of RM14.68 billion in investments in 2025, representing the state’s highest investment performance in more than two decades,” said Ab Rauf.

    In advancing the aspirations of the Melakaku Maju Jaya 2035 agenda, Ab Rauf added, “Partnerships between the government, businesses and financial institutions will continue to play a vital role in creating opportunities, strengthening economic resilience and delivering meaningful benefits for the people of Melaka.”

    Malaysia’s capital market reached a record RM4.3 trillion in 2025, reflecting its growing role in supporting capital formation, business expansion and economic growth. Retail investors accounted for almost one-third of trading activity on Bursa Malaysia, highlighting the increasing importance of investor education and informed participation.

  • Green financing remains unfamiliar to SMEs – MBSB Research

    Research on Malaysian SMEs found that green financing remains unfamiliar to many smaller businesses and is often viewed as something intended for large corporations. Limited resources, insufficient technical knowledge, misconceptions about green financing and the complexity of securing suitable funding continue to slow adoption.

    MBSB Research noted that sustainability requirements are also reaching Malaysian exporters and smaller suppliers through their customers. Although proposed European Union changes could reduce the number of non-European groups directly covered, affected companies may still request carbon data, labour information and product traceability from suppliers. Electronics, palm oil, rubber and chemical manufacturing are among the sectors potentially exposed.

    This makes early preparation increasingly important. Once an SME identifies which machine, process or business premise needs improvement, financing becomes part of the decision. MIDF’s Sustainable Green Biz Financing supports eligible local manufacturing and services businesses seeking to adopt green technology or undertake energy efficiency projects.

    The scheme offers financing up to RM10 million with low financing rate of 3% per annum for purchase of energy-saving machinery and equipment and other fixed assets. Applications remain subject to MIDF’s credit evaluation and approval.

  • Maybank participates in Monetary Authority of Singapore’s BLOOM initiative

    Maybank Singapore confirms its participation in the Monetary Authority of Singapore’s (MAS) BLOOM initiative, reinforcing its commitment to advancing next-generation, best-in-class cross-border payments and transaction banking infrastructure.

    BLOOM — Borderless, Liquid, Open, Online, Multi-currency — is an industry initiative that seeks to enhance cross-border settlement through tokenised bank liabilities and regulated stablecoins, enabling a more interoperable, seamless financial ecosystem.

    This builds on a series of tokenisation milestones for Maybank in ASEAN, including its role in anchoring the inaugural tokenised sukuk issuance by Malaysian sovereign wealth fund, Khazanah Nasional Berhad, and in completing the first on-chain Malaysian Ringgit–Singapore Dollar FX conversion and cross-border payment for Yinson Holdings Berhad in real time, under Bank Negara Malaysia’s Digital Asset Innovation Hub.

    Alvin Lee, Country CEO and CEO, Maybank Singapore, said: “Through BLOOM, Maybank aims to help shape the common standards and infrastructure principles needed to enable the future of digital finance in Singapore, in collaboration with MAS and industry participants including fintech players. This aligns with ROAR30, our five-year strategic plan to deliver values-based offerings, making banking more efficient and accessible especially for small and medium enterprises (SMEs).”

    Maybank’s digital investments in tokenisation forms part of its ROAR30 commitment to invest RM10 billion (SGD3.2 billion) over five years in technology, data and artificial intelligence (AI).
    Separately, Euromoney’s Awards for Excellence 2026 has recognised Maybank as the World’s Best Bank for Corporate Responsibility, Asia’s Best Bank for ESG, and ASEAN’s Best Bank for Large Corporates.

  • Foreign funds return to Malaysia’s transport and utilities sectors, investors turn more selective – MBSB Research

    Foreign funds return to Malaysia’s transport and utilities sectors, investors turn more selective – MBSB Research

    Foreign investors returned to Malaysian equities in July, with buying concentrated in Financial Services, Transportation and Logistics, and Utilities, according to MBSB Research’s latest Weekly Fund Flow Report.

    Foreign institutions recorded RM300.9 million in net inflows on Bursa Malaysia during the month, ending two consecutive months of net selling. Financial Services attracted the largest inflow at RM1.11 billion, followed by Transportation and Logistics at RM367.2 million and Utilities at RM305.6 million.

    The recovery was not broad based. Industrial Products and Services recorded RM759.7 million in net foreign outflows, while Technology saw outflows of RM484.9 million. Consumer Products and Services also registered RM212.8 million in net selling.

    The pattern continued during the final week of July. Foreign institutions recorded RM11.1 million in net buying, with Transportation and Logistics receiving RM107.4 million in inflows. Financial Services and Healthcare led the weekly sector inflows at RM216.5 million and RM148 million respectively.

    Imran Yassin Yusof, Head of Research at MBSB Research, said the distribution of the inflows offered a more useful indication of investor sentiment than the overall figure alone.

    “The return of foreign buying is a constructive signal, but the composition of the flows is more telling than the headline figure. Inflows were concentrated in Financial Services, Transportation and Logistics, and Utilities, while Technology and Industrial Products and Services continued to see selling.

    “In our view, this reflects a more selective allocation of capital towards sectors offering clearer earnings visibility, stronger domestic relevance and more defensive characteristics. Even so, one month of inflows does not establish a durable trend. Elevated producer prices, softer leading indicators and uncertainty over global interest rates could continue to shape investor appetite in the coming months.”

    The July inflows came against a mixed economic backdrop. Malaysia’s producer price inflation accelerated to 9.2 per cent year on year in June, its strongest annual increase since June 2022, driven largely by supply chain disruptions linked to the Middle East conflict.

    At the same time, Malaysia’s Leading Index declined 0.5 per cent month on month in May, with annual growth moderating to 0.8 per cent. MBSB Research said this pointed to a softer near-term economic outlook.

    Global monetary conditions also remain uncertain. The United States Federal Reserve, Bank of England and Bank of Japan kept their respective policy rates unchanged in July, although dissenting policymakers at each central bank favored tighter policy.

    This indicates that inflation risks remain part of the global investment outlook despite some moderation in price pressures.

    The broader regional picture remains cautious. Across the eight Asian markets monitored by MBSB Research, foreign investors were net sellers for a sixth consecutive week, recording USD1.19 billion in outflows. Malaysia was among the markets receiving inflows, alongside India, South Korea, Indonesia, Thailand and the Philippines.

    Against this backdrop, the renewed interest in Transportation and Logistics and Utilities provides a timely signal for industries connected to trade, mobility, energy and industrial development.
    The sector classifications used in the fund flow report do not correspond directly with individual financing programmes. They nevertheless indicate where foreign investors are finding relative confidence within the Malaysian market.

    MBSB Bank has committed RM1 billion each to rail, aerospace, automotive and solar. These commitments are intended to support the wider development of industries that require investment in equipment, technology, working capital and capacity expansion.

    Through its wider collaboration with industry bodies and development agencies, the Bank is also working to identify credible projects and connect companies with the support required to move from planning to commercial execution.

    This includes a separate RM1 billion financing line for eligible businesses, investors and strategic projects across the Northern Corridor Economic Region. The allocation is intended to support companies establishing operations, expanding capacity and participating in major supply chains.

    The Northern Corridor partnership also provides a platform for businesses across advanced manufacturing, electrical and electronics, logistics, agribusiness and the digital economy.

    The wider economic activity generated by these investments can create opportunities for contractors, suppliers, transport providers, professional services firms and SMEs seeking to enter more sophisticated supply chains.

    MBSB Research said the return of foreign buying was encouraging but should be assessed over a longer period before being regarded as a sustained reversal.

    The July data suggest that foreign investors are again examining selected areas of the Malaysian market. Whether that interest develops into a more durable trend will depend on earnings delivery, economic conditions and the ability of strategic industries to convert capital interest into productive investment and business growth.

  • PPA Launches #ISaveInPRS Year-End Treats 2026

    PPA Launches #ISaveInPRS Year-End Treats 2026

    More than half of PPA’s contributing members did not make a PRS contribution in a given year between 2020 and 2025, with an average dormancy rate of 59.4% over the six-year period.

    The trend highlights that pausing contributions is a common part of the retirement savings journey, reinforcing the importance of returning to the habit and staying consistent over time.

    In response, the Private Pension Administrator Malaysia (PPA) launches the #ISaveInPRS Year-End Treats 2026 campaign, running from 11 August to 31 December 2026, to encourage PRS members to restart, continue, and strengthen their retirement savings.

    Open to PRS members aged 54 and below, including new enrollees, the campaign rewards members based on their individual contributions during the campaign period.

    Taufiq Iskandar, CEO of PPA, emphasizes the necessity of embracing change and evolving to keep pace with modern demand and an ever-changing landscape.

    “Retirement savings is a long-term journey, and contribution patterns may change as individuals navigate different financial priorities. What matters is continuing to take steps towards building retirement savings. Through this campaign, we hope to encourage Malaysians to restart where they have paused and make saving more consistent over time,” said Taufiq Iskandar.

    Under the campaign, eligible members will receive one draw entry for every RM1,000 in accumulated gross contributions. Dormant members — those who registered before 1 January 2025 and have not made any contributions since then — will receive an additional two entries per RM1,000 contributed.

    Members who contribute through PRS Online will receive a further one entry per RM1,000 contributed, allowing those who qualify for both incentives to earn up to four entries per RM1,000.
    PPA’s data also shows that members who have made at least one contribution in 2026 have, on average, almost twice the lifetime savings of inactive members. Regular contributions can help members build savings progressively, benefit from cost averaging across different market conditions, and make better use of the RM3,000 annual tax relief for PRS contributions, subject to applicable tax rules.

    As of 30 June 2026, PRS had 695,869 members and approximately RM11 billion in assets under management (AUM). From 2018 to 30 June 2026, members’ net contributions totalled RM5 billion, while PRS funds collectively generated RM3.7 billion in investment returns, representing a 74% uplift on member contributions.

    For the period of 1 August 2025 to 31 July 2026, the top five performing PRS funds recorded an average one-year return of 49.3% versus 14.6% across 79 PRS funds. These were Public Mutual PRS Islamic Strategic Equity, Principal Islamic PRS Plus Asia Pacific Ex Japan Equity, Public Mutual PRS Islamic Growth, Principal Islamic PRS Plus Growth, and Hong Leong PRS Asia Pacific Fund.