Inovatif

Category: Investments

  • 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.

  • Kenanga Group launches Malaysia’s first tokenised money market funds

    Kenanga Group launches Malaysia’s first tokenised money market funds

    Kenanga Investment Bank Berhad (Kenanga Group), Malaysia’s leading independent investment bank and the Stellar Development Foundation (Stellar), a US-based non-profit organisation that supports the Stellar network, introduces Myrra, a dedicated token platform that leverages the Stellar blockchain to enable the tokenisation of real world-assets.

    The inaugural deployment on the Myrra platform is the tokenisation of the Kenanga Money Market Fund (KMMF) and the Kenanga Islamic Money Market Fund (KIMMF) managed by Kenanga Investors Berhad (Kenanga Investors). The Funds represent the first tokenised unit trust funds to go live within the Malaysian market.

    Through this initiative, investors can now transact blockchain-based digital representations of the Funds’ units through Myrra. Tokens are issued on a 1:1 basis, with each token representing a unit of either fund. This ensures the digital tokens function exactly like traditional fund units, while prioritising regulatory compliance, legal parity with existing unit holders, and operational integrity.

    By tokenising its Malaysian Ringgit money market funds using trusted Stellar blockchain infrastructure, Kenanga Group is bringing its money market products directly to a broader segment of Malaysian investors, enabling the purchase or selling of tokens directly on Myrra’s web portal.

    Operating for more than a decade, Stellar is one of the earliest blockchains designed specifically to support payments, asset issuance, and financial products in a compliance-forward and transparent manner. It hosts Franklin Templeton’s Benji token, a tokenised U.S. Treasury money market fund primarily used by institutional users for on-chain settlement and peer-to-peer transfers. Stellar also powers MoneyGram’s large-scale cash-to-crypto on/off-ramp across 170 countries using USDC and supports the United Nations High Commissioner for Refugees (“UNHCR”) in distributing USDC-based aid that refugees can redeem even without bank accounts.

    Myrra represents a milestone in addressing a tokenised asset opportunity in Malaysia, estimated at US$43 billion by 2030. It builds upon recent efforts by the Securities Commission Malaysia to advance tokenised capital market products within a framework that balances innovation with investor protection. By applying blockchain and Distributed Ledger Technology to familiar financial products, Kenanga Group is taking a pragmatic approach to financial innovation and inclusion while positioning Malaysian investors for a global transition toward faster settlement and enhanced transparency.

    The KMMF aims to provide investors with a regular income stream while maintaining capital stability by investing entirely in money market instruments, debentures, and deposits. Meanwhile, the KIMMF offers similar benefits aligned with Shariah principle. Both Funds cater to investors who want stable, short-term returns with minimal volatility.

  • Maybank launches inaugural pilot for Ringgit tokenised deposits and cross border payments via blockchain

    Maybank launches inaugural pilot for Ringgit tokenised deposits and cross border payments via blockchain

    As part of its ROAR30 ambition, Maybank (the Bank) is developing its digital assets and tokenised money agenda as a core pillar of the Bank’s digital transformation to deliver values-based offerings and faster, more seamless and inclusive financial services.

    Towards this, Maybank is launching the first Ringgit tokenised money pilot with global energy infrastructure company, Yinson Holdings Berhad (Yinson) as a participant, under Bank Negara Malaysia’s (BNM) Digital Asset Innovation Hub (DAIH). The pilot will explore on-chain cross-border payments involving Ringgit and other ASEAN deposit tokens on Maybank’s permissioned blockchain.

    The initiative will assess the technical feasibility and operational readiness of executing on-chain transactions securely and in near real-time, while helping to shape the foundational design of next generation money rails and payment infrastructure.

    Building on this first pilot, Maybank aims to pioneer a range of tokenised assets, including tokenised Islamic finance for businesses from large corporates to SMEs (small and medium enterprises), and retail customers, including wealth solutions.

    Through programmable money, the Bank aims to empower SMEs by automating transparent payment flows from anchor clients such as governments and corporates, enabling payment transparency that can eventually unlock accessibility to financing.

    For wealth clients, the Bank is exploring tokenised investment products, especially Islamic finance assets such as Sukuk and funds to enable broader participation through fractionalisation.

    With its network advantages as one of the leading banks in ASEAN, Maybank aims to reduce friction in today’s transaction and payment flows, and deliver exceptional customer experiences, reinforcing its position as the gateway bank for tokenised ASEAN currencies and assets through blockchain-enabled solutions.

    Dato’ Sri Khairussaleh Ramli, President and Group CEO of Maybank said, “At Maybank, our ROAR30 strategy to become the leading global Islamic finance institution, and ASEAN’s leading wealth management, transactions, payments, corporate and investment bank compels us to reimagine how money moves and what our clients demand. Together with regulators, clients and partners, and taking a holistic, pragmatic and inclusive approach, we will progressively expand digital assets and tokenisation initiatives into areas like investing, Islamic finance and supporting SMEs. We continue to work on innovation to deliver tangible benefits for our clients like Yinson and the broader real economy, while upholding the highest standards of governance, security and regulatory integrity.”

    Lim Chern Yuan, Group CEO of Yinson Holdings Berhad said, “With diverse businesses and operations across multiple jurisdictions, and complex cross border treasury operations, Yinson is constantly seeking ways to optimise its financial position, manage risks, and respond swiftly to opportunities. We are open to leverage innovative technology with the support of regulators and established financial institutions like Maybank. Enabled by on-chain solutions, shorter settlement cycles to almost real-time allows Yinson to further manage working capital more efficiently and reduce foreign exchange exposure and transaction costs. We welcome the prospect of collaborating with BNM and Maybank in this pilot initiative.”

  • RHB and Cagamas expand access to green homes

    RHB and Cagamas expand access to green homes

    RHB Banking Group (RHB/ the Group) and Cagamas Berhad (Cagamas), the National Mortgage Corporation of Malaysia, through its sister company Cagamas SRP Berhad (Cagamas SRP), introduces a new conventional Green Home Financing scheme that provides Malaysians with up to 110% financing for residential properties that carry recognised green building certifications. The scheme is designed to reduce upfront cash requirements by offering 100% financing for the property value plus an additional 10% for Mortgage Reducing Term Assurance or Takaful.

    The partnership makes certified green homes accessible to a wider segment of Malaysians. By extending financing to more homebuyers for primary market properties, the financing scheme broadens access to sustainable living and ensures that green-certified homes are no longer viewed as a premium option reserved for the affluent.

    Jeffrey Ng Eow Oo, Managing Director, Group Community Banking, RHB Banking Group said, “Many Malaysians want homes that are comfortable, efficient and better for the environment, but affordability often gets in the way. This collaboration helps close that gap. Our focus is on giving communities innovative financial solutions that genuinely address their needs while supporting long term, sustainable living. By expanding access to certified green homes, we are helping more Malaysians make choices that benefit their families today and their future tomorrow.”

    This initiative is aligned with RHB’s PROGRESS27 corporate strategy, which embeds sustainability across the Group’s business priorities. It also reflects the principles outlined in RHB’s Sustainable & Transition Finance Framework (STFF), one of the enablers supporting customers through their sustainability and transition needs. Under PROGRESS27, RHB is committed to mobilising RM90 billion in Sustainable Financial Services (SFS) by 2027. As at December 2025, the Group’s cumulative SFS reached over RM59 billion, representing close to 66% of its target.

    “At Cagamas, our priority is to strengthen Malaysia’s housing financing ecosystem by supporting solutions that meet the evolving needs of homebuyers. Our collaboration with RHB not only encourages the growth of green certified homes, but also supports lenders ready to offer responsible, forward looking products. Building on the success of earlier guarantee schemes such as Skim Rumah Pertamaku, Skim Perumahan Belia and the First Home Mortgage Guarantee Programme, all of which have enabled more than 100,000 Malaysians to own their first homes, the Green Mortgage Guarantee Programme (Green MGP) adds a new dimension of environmental responsibility. It provides financial institutions with a valuable risk mitigation tool to advance ESG aligned lending, while giving homebuyers improved financing options for sustainable properties,” said Kameel Abdul Halim, President/Chief Executive Officer of Cagamas Berhad.

  • RHB launches comprehensive sustainable and transition finance framework

    RHB launches comprehensive sustainable and transition finance framework

    RHB Banking Group (RHB or the Group) has launched its Sustainable & Transition Finance Framework (STFF), a comprehensive framework in Malaysia structured to support customers at every stage of their sustainability transformation. Developed in alignment with global best practices, including the International Capital Market Association (ICMA) principles and the ASEAN Taxonomy for Sustainable Finance, the STFF has been fully validated by an independent Second-Party Opinion (SPO), Sustainalytics. This external validation underscores the robustness of the eligibility criteria and RHB’s dedication to financing a transparent transition for its clients and the broader economy.

    Dato’ Mohd Rashid Mohamad, RHB Banking Group Managing Director / Group Chief Executive Officer said, “RHB’s Sustainable & Transition Finance Framework serves as a strategic roadmap to accelerate the shift towards low carbon economy. By providing clear criteria for sustainable financing and investment, we are bridging the gap for hard-to-abate sectors ensuring they have the necessary resources to transition. This framework will not only help us to mitigate long term climate risks but also empowers our clients to innovate, ensuring that the transition to a sustainable future is both inclusive and economically viable.”

    Malaysia has outlined its aspirations through the National Energy Transition Roadmap (NETR) and the 13th Malaysia Plan (13MP), which provides up to RM1.2 to 1.3 trillion investment opportunities for businesses to decarbonise as we transition towards a low carbon economy and net zero. For many companies, particularly those in high emission, hard-to-abate and resource intensive sectors, the transition pathway can be complex due to fragmented financing options. The STFF helps address this by offering a clear, consistent and accessible framework for corporates, GLCs and SMEs to mobilise capital for eligible sustainable and transition activities.

    “Sustainability is a long term commitment, and many businesses are navigating transition while managing real operational demands. Through the STFF, we want to make the sustainability pathway more achievable for our customers. Our role is not only to provide sustainable and transition financing, but also to be a purposeful partner in supporting them towards Net Zero,” added Dato’ Mohd Rashid.

    The launch event also featured a panel discussion themed “Decarbonisation: Are We Doing Enough to Achieve Net Zero?” with representatives from RHB, Solarvest, and Malaysia Forest Fund (MFF). The event concluded with the signing of a Memorandum of Understanding (MoU) between RHB and MFF to further advance nature-based and transition solutions.

    RHB remains committed to delivering on its sustainability agenda under PROGRESS27, including its goal of mobilising RM90 billion in Sustainable Financial Services (SFS) by 2027. As at December 2025, the Group’s cumulative SFS exceeded RM59 billion, and represents close to 66% of its 2027 target.
    “When our customers’ progress, our communities progress. And when our communities progress, our nation progresses. The most sustainable decision is not waiting for certainty. It is choosing to begin,” concluded Dato’ Mohd Rashid.

  • Maybank Asset Management expands Maybank’s CIO-led investment framework with new Shariah strategy

    Maybank Asset Management expands Maybank’s CIO-led investment framework with new Shariah strategy

    Maybank Asset Management Sdn Bhd (MAM) today announced the expansion of the signature Maybank CIO-powered franchise with the launch of the MAMG Growth and Income-I Fund (the Fund). This strategic expansion follows the growing adoption of MAM Group’s CIO-powered investment framework across its conventional strategies, which are implemented through multiple mandates and partnerships in Singapore and Malaysia. Collectively, these CIO-led strategies have achieved significant scale, reflecting strong investor demand for disciplined, multi-asset portfolio solutions anchored on a central investment house view.

    This Shariah-compliant multi-asset solution represents the next evolution of MAM Group’s investment-first philosophy. The Fund is built upon a high-conviction synergy that integrates the strategic asset allocation views of Maybank Group Wealth Management’s (GWM) CIO with the specialist global multi-asset investment capabilities of Schroders. By anchoring global opportunities within MAMG’s investment framework, the Fund provides investors with an institutional-grade multi-asset strategy designed to capture growth and income across diverse market cycles. While guided by a common CIO framework, the Fund is implemented through an approach and partnerships to meet Shariah requirements.

    The Fund is designed as a flexible, all-weather investment solution that offers investors multiple currency and income options to better manage portfolio outcomes in a volatile macro environment. Investors may access the Fund through USD, MYR-hedged, or MYR share classes, allowing for more effective positioning amid recent currency fluctuations between the Ringgit and the US Dollar. In addition, both accumulation and distribution classes are available, catering to investors seeking long-term capital growth as well as those who prefer regular income, while maintaining exposure to a professionally managed global multi-asset strategy.

    Muhammad Hishamudin Hamzah, CEO of Maybank Asset Management Sdn Bhd, noted that the milestone achieved by our CIO-powered strategies reflects the strength of the MAMG’s collaborative model and the firm’s focus on performance-led outcomes. “The momentum of our CIO-powered suite is a testament to the clarity and discipline of our investment house view. In an era of heightened policy uncertainty, there is an imperative for strategies that offer both sophisticated oversight and tactical agility. By extending our established CIO framework into the Shariah space, we are providing our clients with a resilient growth engine that combines global scale with the strategic foresight of our Chief Investment Office. Our priority remains delivering high-conviction solutions that empower investors to navigate global complexity with confidence.”

    Katherine Cox, Head of Client Group, South Asia, and Global Official Institutions at Schroders, said: “We are delighted to deepen our partnership with Maybank Asset Management Malaysia through the launch of the MAMG Growth and Income-I Fund, our fourth tie-up since 2018. This collaboration reflects our shared commitment to supporting Malaysian investors with resilient strategies that deliver powerful growth and recurring income, particularly in today’s complex environment. Leveraging our global multi-asset capabilities and Shariah investment expertise, we have developed an actively managed solution designed to manage volatility and identify growth opportunities. We are confident this new offering will empower investors in Malaysia to invest with greater assurance and capitalise on opportunities across market cycles.”

    Denominated in Malaysian Ringgit (MYR) as the base currency, the Fund is offered across multiple share classes, including MYR (Accumulation), MYR (Distribution), MYR (Hedged) (Accumulation), MYR (Hedged) (Distribution), USD (Accumulation), and USD (Distribution) classes, with minimum initial investment amount of MYR 1,000 and USD 1,000 respectively.

    Investors are advised to read and understand the contents of the Fund’s Product Highlights Sheet and Prospectus, dated 14 January 2026, before making any investment decisions.

    The MAMG Growth and Income-I Fund is now available via Maybank2U and at Maybank branches nationwide.

  • Foreign interest rebounds in Malaysian bonds with RM4.4b inflows

    Malaysian bond market recorded net foreign inflows of RM4.4 bil in October, reversing September’s RM6.8 bil outflows. Foreign buying was concentrated in MGS and GII (combined RM3.0 bil), with additional interest in MTB/MITB and corporate bonds at RM431.0 mil and RM937.0 mil, respectively.

    This renewed foreign interest reflected a narrowing UST–MGS yield differential as UST yields eased amid investor positioning at the start of last month to price in further potential rate cuts. The Federal Reserve’s (Fed) 25-basis-point policy rate cut at its October meeting and its announcement to end quantitative tightening in December also contributed to the fall. By end-October the 10-year UST yield eased to 4.11% (end-September: 4.16%), while the 10-year MGS yield rose to 3.52% (from 3.47%) over the same period.

    As a result, the 10-year UST–MGS yield spread narrowed to 59.1 bps as at end-October (end-September: 69.4 bps), improving the appeal of local bonds.

    However, market appetite may soften in November after the Fed adopted a more hawkish tone after the October rate cut decision amid inflation concerns, which led to a retreat in December rate cut expectations. According to the CME FedWatch Tool data, the market-assigned probability of a December cut fell to about 30% on 20 November, down from roughly 99% a month earlier. The 10-year UST–MGS yield spread widened back to 70.0 bps as of 19 November, which diminishes the relative yield advantage of the local bond market.

  • XTransfer and Maybank announce strategic partnership

    XTransfer and Maybank announce strategic partnership

    XTransfer, the world’s leading B2B cross-border trade payment platform, and Maybank, a leading bank in ASEAN, are pleased to announce a strategic partnership to expand cross-border payment and Shariah-compliant solutions through an Memorandum of Understanding (MoU).

    Under the collaboration, XTransfer and Maybank will harness their respective strengths to deliver one-stop cross-border financial solutions, spanning domestic and cross-border payments and FX conversion, across key ASEAN markets, Hong Kong, United Kingdom and United States.

    The parties will leverage new technologies and innovations, including APIs, digital platforms, collection solutions, and virtual accounts, to enable automated, real-time, and seamless FX conversion and transaction processing, enhancing the scalability, efficiency, and reliability of cross-border financial services.

    Recognising the growing demand for Islamic finance-compliant services in ASEAN, XTransfer and Maybank will also explore and develop Shariah-compliant FX and payment offerings tailored to regional needs, broadening financial inclusion and meeting the evolving requirements of businesses seeking Shariah-compliant solutions.

    This comprehensive partnership deepens XTransfer’s Southeast Asia coverage and multi-currency settlement capabilities, while supporting Maybank’s strategy to strengthen its regional franchise and ecosystem connectivity.

    Bill Deng, Founder and CEO of XTransfer, said, “This collaboration with Maybank marks a significant step in elevating our services across ASEAN. With stronger local collection, FX conversion, and potential Shariah-compliant settlement capabilities, we will help businesses reduce costs, enhance cash flow, and improve transaction efficiency. We will continue to strengthen compliance and risk management to build a trusted cross-border financial infrastructure for our clients.”

    Dato’ Sri Khairussaleh Ramli, President and Group CEO of Maybank said, “Together with XTransfer, we can enable more seamless cross-border payments and collections with competitive forex rates for merchants engaged in ASEAN-China trade, and participate in the surging flows between the two regions—now each other’s largest trading partners. Total trade value is on track to reach USD1 trillion this year. This collaboration also opens opportunities to develop innovative solutions for businesses. With Maybank’s presence in the key ASEAN markets, we are truly well positioned to support their cross-border needs.”

  • New report warns boards of top risks in Southeast Asia for 2026

    As companies budgets and business plans for 2026, the latest global Risk in Focus 2026 Report by the Institute of Internal Auditors Inc. warns that boards must urgently strengthen governance to keep pace with fast-evolving risks.

    The report has outlined changes in top risks over the years in many regions, showing how cybersecurity, business resilience, disruptive technologies such as AI, and geopolitical volatility are converging into complex increasingly interconnected, challenging and intensifying.

    In the Risk in Focus 2026 Report’s regional deep-dives, Asia Pacific is highlighted as a fast-growing but risk-intensive region requiring urgent governance responses. Specially to Southeast Asia, the Report highlights that Cybersecurity (67%) tops the list as the number one threat, with AI, digital disruption, and data privacy expanding the attack surface. Business resilience (62%) comes second, reflecting the impact of tariff wars, supply chain shocks, and climate-related disruptions. The top two audit priorities for Southeast Asia (above 60%) mirror these threats.

    For Southeast Asia, these trends not only heighten exposure but also present an opportunity: organisations that invest in the right resources, skills, and internal audit capabilities today will be better positioned to build resilience, sustain growth, and protect stakeholder trust in the years ahead.
    However, while 52% of Southeast Asia survey respondents included digital disruption as a Top 5 risk – with AI reshaping competition and productivity, just 32% included it as a Top 5 audit priority. Many companies admit they lack the skills and frameworks to respond.

    This year, the annual global report surveyed over 4,000 senior internal audit leaders worldwide, including 159 respondents from Southeast Asia who represent organisations with significant operations in the region. The 2026 edition introduces a forward-looking outlook — not just a snapshot of current risks but a projection of what boards cannot afford to ignore in the next three years. It also integrates AI, green finance, and geopolitical fragmentation as cross-cutting themes, which were less pronounced in earlier reports.

    Malaysian Companies Under Pressure In 2026

    Some of these risks are already manifesting and weighing on organisations in Malaysia. In 2024, police reports point to cybercrime losses exceeding RM1 billion, and yet, only 2% say they are prepared. That’s a governance gap with real financial consequences. Meanwhile ESG compliance pressures are also mounting with IFRS S1/S2 alignment this year and Scope 3 reporting by 2027.

    Boards, therefore, cannot afford to de-prioritise these threats, and gaps between identified risks and internal audit coverage, particularly in areas such as cybersecurity, digital disruption and human capital which must be addressed with the appropriate control measures.

    In these, internal auditors can support leadership in anticipating risks, testing resilience and building confidence with stakeholders. What were once operational — have now become business survival issues, and internal auditors are empowered to guide boards through this era of polycrises.

    With organisations improving their resilience against “cascading failures”, The Institute of Internal Auditors Malaysia offers more than 90 training programs each year to elevate governance practices and foster a culture of transparency and accountability for businesses. IIAM recently launched the Statement of Risk Management and Internal Control (SORMIC) Guide 2025 with Bursa Malaysia which provides public-listed companies with a clear framework to strengthen disclosures, bolster investor confidence, and embed risk governance into their operations.

    Demand for internal audit upskilling is also rising sharply: with growing enrolment in IIAM’s 80 programmes.” Continuous professional development and staying abreast of emerging trends are key to enabling internal auditors to excel in their roles. The Institute is central to equipping professionals with the knowledge, skills, and ethical standards necessary to comply with Global Internal Audit Standards effectively.