Malaysia

On 9 October the Prime Minister said approved investments rose 11.7% to RM218.5 billion in the first half of 2026, putting Malaysia on course for a third straight record year. Approvals are not the same as realised FDI inflows, but the figures show the pipeline is still growing despite US tariff pressure.

Malay Mail · 2026-10-09

The state funds Khazanah Nasional and KWAP have put RM1.2 billion into building up local semiconductor companies, including a partnership with the Selangor state government. Foreign chip and electronics firms should expect stronger state-backed local partners and suppliers, and possibly more competition for state support.

Malay Mail · 2026-10-09

No significant developments identified in this section for the reporting period.

Aperture editorial note · 2026-10-10

Budget 2027, tabled on 9 October, sets federal spending at RM459.8 billion inside a RM510 billion total package, and targets a fiscal deficit of 3.3% of GDP in 2027, down from 3.6% in 2026, with 3% planned by 2028. Revenue is forecast at RM380.8 billion after 2026 collections beat their original estimate, so the deficit-reduction path still holds despite heavier spending on cost-of-living support.

Rates.my (summary of the Ministry of Finance Budget 2027 speech) · 2026-10-09

In its fourth-quarter outlook, RHB kept its 2026 growth forecast at 5.4% and cut its inflation forecast to 1.9% from 2.1%. Inflation averaged 1.8% over the first eight months, held down by fuel subsidies, stable food prices and a fairly steady ringgit. The bank expects the 2.75% policy rate to stay unchanged, which points to steady borrowing costs and little currency pressure for entrants setting up local financing.

Media Selangor (RHB Global Economics Outlook 4Q 2026) · 2026-10-02

Budget 2027 raises the minimum wage from RM1,700 to RM2,000 from June 2027, with an exemption for MSMEs with annual sales below RM50 million. It also announces a RM2,500 minimum wage for semi-skilled workers and graduates, so far with no start date. Larger foreign employers, especially in manufacturing and services, should plan for higher wage costs in 2027 and possible further wage-framework changes.

Anchorsprint (Budget 2027 summary checked against the official speech) · 2026-10-10

Bloomberg describes Budget 2027, with its wage increases, middle-class tax relief and cost-of-living measures, as possibly Anwar Ibrahim's last before a general election. In late August Bloomberg also reported that he was considering delaying the vote to the second half of 2027 after state election losses. Election timing is still open, so firms should allow for policy driven by populist pressure and a possible change of government when timing major commitments.

Bloomberg · 2026-10-09