- Direct tax system for the auto industry. AI push in healthcare. China and Indonesia dah struck deals with the US, Malaysia apa cerita?
IN Malaysia
Choo-choo news
- MRT3 gets the green light – The long-awaited MRT3 Circle Line project in Klang Valley finally gets the nod from Putrajaya, after the Final Railway Scheme was approved by Transport Minister Anthony Loke. Now, the land acquisition process can start, where the number of land lots required for acquisition has been reduced from 1,012 to 690, significantly minimising the impact on affected communities. Additionally, MRT Corp CEO Mohd Zarif Hashim added that 93.3% of the 45,000 written feedback received expressed support for the project. Lagi canggih na Klang Valley lepasni.
- LRT Mutiara Line gets the go-ahead to start construction – Another MRT Corp’s project up north, the RM13 bil Penang LRT Mutiara Line can start construction, after the 60% Gamuda-owned SRS Consortium received the approval to start work from Putrajaya. SRS Consortium was appointed as the main contractor in January for the first civil works package worth over RM8 bil for the first line. Construction on the Mutiara Line involves 19 stations and other facilities stretching 24km from Komtar, George Town, to reclaimed Island A of Penang South. After this, no need to deal with people who drive like whatever curse word you can think of. Naik train je senang.
Industry news
- RM90 mil semiconductor fund launched – Deputy PM Fadillah Yusof recently launched Malaysia’s Science Endowment matching fund for the semiconductor sector, amounting to RM90 mil, in order to position Malaysia as a global hub for advanced packaging technology. To put it into simpler terms, in the whole semiconductor supply chain, Malaysia is just the ‘pemasang’ of parts manufactured elsewhere, akin to macam pasang Lego of a Formula 1 car. Now, Malaysia want to become the ‘pemasang’ of more advanced parts, and even wants to produce those parts also. If you remember, before our dear Rafizi Ramli merajuk and stepped down as minister, he was one of the brainchild behind the whole ‘Made by Malaysia’ chip. In another chip-related news, Maybank Investment Bank (Maybank IB) stated that two companies – Gamuda Bhd and MN Holdings Bhd will be the potential beneficiaries of RM10 bil worth of data centre contracts from Eco World Development Group Bhd and Sime Darby Property Bhd. Maybank IB felt that the domestic data centre sector will not be hugely impacted despite the AI chip ban.
- More direct tax system for the automotive industry – Malaysian Automotive Association (MAA) president, Mohd Shamsor Mohd Zain, announced that the local automotive industry will shift from Customised Incentives (CI) to a fixed, more transparent and fairer tax system in October this year. The change of policy will be made to attract car companies to invest in Malaysia. Please don’t kene tipu again like how you kene tipu by Tesla.
- Khazanah to play big in the bond market – Khazanah Nasional Bhd is considering raising up to RM2.12 bil from the exchangeable dollar bond sale to finance its overseas investments. The underlying assets of the bonds are not specified, but their equities in state-owned electricity firm Tenaga Nasional Bhd, Telekom Malaysia Bhd or CIMB Group Holdings Bhd may be floated. Khazanah owns about 21% of Tenaga, 20% of Telekom Malaysia and around 21% of CIMB. An exchangeable dollar bond is a type of hybrid debt security that can be converted into the shares of a company other than the issuing company.
Healthcare issues: Hire more doctors & nurses ❎ Invest in AI ✅
Health Minister Dzulkefly Ahmad said that his ministry is exploring partnerships to adopt artificial intelligence (AI) to solve key health challenges. Dzulkefly added that AI has been integrated into the ministry’s current processes, as 156 health clinics have been equipped with a cloud-based content management system, allowing 70% of patients to be treated in less than 30 minutes. He also mentioned that the first phase of the Electronic Medical Record system has been completed, involving 5 mil prescriptions, 20 mil vaccination records and 1 mil dental records. Another AI-thingy that the Health Minister mentioned was that the MySejahtera app has been developed into a preventive health gateway and a national digital gateway. But, wait a minute. Isn’t MySejahtera owned by Entomo Malaysia Sdn Bhd, where the latter is fully owned by a Singapore-based company, Entomo Pte Ltd?
In another related matter, Trade Minister Tengku Zafrul Abdul Aziz announced that Putrajaya is mulling the possibilities of creating a new national blueprint for the healthcare industry, but not the doctor and nurses side of the industry, but for the healthcare manufacturing side of the industry. In 2024 alone, Malaysia’s medical devices and pharmaceutical industries attracted RM2.13 bil in combined investments, creating over 2,700 high-value jobs.
Source: https://theedgemalaysia.com/node/762800
Around the SEA
Trump struck deals with China and Indonesia
Let’s start with China first. A trade deal between China and the US may be in play after US President Donald Trump just upended Biden-era semiconductor chip export restrictions. Now, US companies such as Nvidia can sell its less advanced China-focused H20 artificial intelligence accelerator. US Commerce Secretary Howard Lutnick said the administration wanted Chinese developers to be addicted to American technology, while insisting the US wouldn’t sell China our best stuff. How more Trump can you be when you talk about chips like it is cocaine?
Source: https://theedgemalaysia.com/node/763102
As for Indonesia, the US has agreed to reduce the tariff from 32% down to 19%, in return for commitments from Indonesia to purchase USD15 bil in US energy, USD4.5 bil in American agricultural products, and 50 Boeing jets, many of them 777s. Is it worth it, tho?
For your EYES only
Let’s end the week with a bit of entertainment news (ala ala Melodi gitu). Malaysia’s very own Datuk Seri Siti Nurhaliza will be performing at Pestapora 2025 in Jakarta this September, he first Malaysian ever to grace the Pestapora stage since the festival began in 2022. A queen really moves in silence.
Pestapora 2025 lineups update! Ada Dato’ Siti Nurhaliza gais! pic.twitter.com/pisQLT8XN7
— om (@xallehrazax) July 16, 2025
