The World Bank report highlights a growing concern in Malaysia: the economy has expanded much faster than workers’ incomes over the past 15 years. According to the report, real median wages increased about 43% between 2010 and 2024, but that was only around half the pace of GDP growth during the same period.
Some key points from the findings:
Malaysia’s labour market looks strong on paper:
unemployment is at its lowest since 2014,
labour force participation hit a record high,
GDP growth exceeded 5% in 2025.
But many Malaysians still feel income pressure because wage growth has not kept up with:
economic expansion,
housing and living costs,
productivity expectations,
education levels.
The report says several structural issues are behind this:
Productivity growth is too slow
Malaysia’s productivity gains have lagged behind peers. The gap with Singapore widened, while China caught up rapidly in worker productivity.
Not enough high-paying skilled jobs
About 36% of tertiary-educated workers are employed below their qualification level nationwide. In some states the number is above 50%.
Wage growth is uneven
Middle-income earners reportedly saw the weakest gains. Some states still have median salaries only slightly above the national minimum wage.
Cost of living pressures
Food prices and overall prices have risen faster than wages in recent years, reducing purchasing power.
The World Bank’s broader message is that Malaysia now needs to focus less on simply creating jobs and more on creating higher-productivity, higher-paying jobs if it wants to become a high-income economy.
Some key points from the findings:
Malaysia’s labour market looks strong on paper:
unemployment is at its lowest since 2014,
labour force participation hit a record high,
GDP growth exceeded 5% in 2025.
But many Malaysians still feel income pressure because wage growth has not kept up with:
economic expansion,
housing and living costs,
productivity expectations,
education levels.
The report says several structural issues are behind this:
Productivity growth is too slow
Malaysia’s productivity gains have lagged behind peers. The gap with Singapore widened, while China caught up rapidly in worker productivity.
Not enough high-paying skilled jobs
About 36% of tertiary-educated workers are employed below their qualification level nationwide. In some states the number is above 50%.
Wage growth is uneven
Middle-income earners reportedly saw the weakest gains. Some states still have median salaries only slightly above the national minimum wage.
Cost of living pressures
Food prices and overall prices have risen faster than wages in recent years, reducing purchasing power.
The World Bank’s broader message is that Malaysia now needs to focus less on simply creating jobs and more on creating higher-productivity, higher-paying jobs if it wants to become a high-income economy.
❤1
AirAsia X reported a net loss of about RM155 million for the first quarter of FY2026, reversing from a profit a year earlier. The main reasons were:
A large foreign exchange (forex) loss of around RM232 million as regional currencies weakened against the US dollar.
Higher jet fuel costs, with fuel prices briefly spiking above US$200 per barrel in late March.
Rising operating pressure despite strong passenger demand.
At the same time, the airline still achieved record quarterly revenue of RM5.95 billion after integrating the aviation business from Capital A. Passenger traffic also rose 9% year-on-year to 18.9 million passengers, while load factor stayed solid at 85%.
Because of the tougher environment, the group is becoming more cautious:
21 routes are temporarily suspended.
Second-quarter capacity will be reduced by about 10%.
AirAsia X is focusing more on protecting profit margins instead of aggressive expansion.
The airline also said it is withholding its earlier 2026 targets until fuel prices and market conditions become more stable.
Despite the short-term hit, the company says its long-term strategy remains intact, supported by fleet upgrades including new Airbus A321LR aircraft and a large order for 150 Airbus A220 jets.
A large foreign exchange (forex) loss of around RM232 million as regional currencies weakened against the US dollar.
Higher jet fuel costs, with fuel prices briefly spiking above US$200 per barrel in late March.
Rising operating pressure despite strong passenger demand.
At the same time, the airline still achieved record quarterly revenue of RM5.95 billion after integrating the aviation business from Capital A. Passenger traffic also rose 9% year-on-year to 18.9 million passengers, while load factor stayed solid at 85%.
Because of the tougher environment, the group is becoming more cautious:
21 routes are temporarily suspended.
Second-quarter capacity will be reduced by about 10%.
AirAsia X is focusing more on protecting profit margins instead of aggressive expansion.
The airline also said it is withholding its earlier 2026 targets until fuel prices and market conditions become more stable.
Despite the short-term hit, the company says its long-term strategy remains intact, supported by fleet upgrades including new Airbus A321LR aircraft and a large order for 150 Airbus A220 jets.
15/5/2026
Top articles:
1) China Criticises US Chip Equipment Bill in Run-up to Beijing Talks
--> https://klse.i3investor.com/web/blog/detail/ceomorningbrief/2026-05-14-story-h501506070-China_Criticises_US_Chip_Equipment_Bill_in_Run_up_to_Beijing_Talks
2) PM Orders Govt to Step Up Engagement With, Aid Delivery to Hawkers
--> https://klse.i3investor.com/web/blog/detail/ceomorningbrief/2026-05-14-story-h501506811-PM_Orders_Govt_to_Step_Up_Engagement_With_Aid_Delivery_to_Hawkers
3) Tourist Arrivals to Malaysia Rose 5.4% to 10.65 Mil in January to March
—> https://klse.i3investor.com/web/blog/detail/ceomorningbrief/2026-05-14-story-h501506814-Tourist_Arrivals_to_Malaysia_Rose_5_4_to_10_65_Mil_in_January_to_March
4) Latest Director Transactions
—> https://klse.i3investor.com/web/insider/director/list
5) Open a cds account at mplus/malacca securities. 0.0008 brokerage…Fill up below
—> https://bit.ly/openmplusaccountloh
Top articles:
1) China Criticises US Chip Equipment Bill in Run-up to Beijing Talks
--> https://klse.i3investor.com/web/blog/detail/ceomorningbrief/2026-05-14-story-h501506070-China_Criticises_US_Chip_Equipment_Bill_in_Run_up_to_Beijing_Talks
2) PM Orders Govt to Step Up Engagement With, Aid Delivery to Hawkers
--> https://klse.i3investor.com/web/blog/detail/ceomorningbrief/2026-05-14-story-h501506811-PM_Orders_Govt_to_Step_Up_Engagement_With_Aid_Delivery_to_Hawkers
3) Tourist Arrivals to Malaysia Rose 5.4% to 10.65 Mil in January to March
—> https://klse.i3investor.com/web/blog/detail/ceomorningbrief/2026-05-14-story-h501506814-Tourist_Arrivals_to_Malaysia_Rose_5_4_to_10_65_Mil_in_January_to_March
4) Latest Director Transactions
—> https://klse.i3investor.com/web/insider/director/list
5) Open a cds account at mplus/malacca securities. 0.0008 brokerage…Fill up below
—> https://bit.ly/openmplusaccountloh
Forwarded from Rakuten Trade Ideas 🎯
Gold Li Holdings Bhd (0452), Johor based property developer, is making its debut on the ACE Market of Bursa Malaysia today.
Oversubscribed by 3.26x for the IPO price of RM0.13 with a market capitalisation of RM78 million.
It is raising RM15.21 million from this listing exercise mainly for to support business expansion - three on-going property development and future projects, land banking.
Chief financial officer, Tey Bock Heng, said the company is also actively evaluating additional landbank opportunities to support its future development pipeline, noting that land acquisition remains a core component of its property development business.
"This process will continue because that is the bread and butter of our development business.
Gold Li is set to launch the 500-unit high rise project with a gross development value of RM400 million in Muar by 2027, and “we are very comfortable with the market simply because it is underserved”, he said
For the longest time, there has been no new project launch,” Tey said. “After such a long period, there is pent-up demand from buyers who are looking for apartment or condominium living.”
The changes in lifestyle preferences, particularly among younger buyers, are also driving interest in high-rise living even in secondary towns, he added
The latest quarterly earnings result 31 Jan 2026, it recorded RM10.67 million revenue with a RM0.77 million net profit.
FY2025 net profit was RM7.84 million while revenue was
RM65.03 million.
Malacca Securities and TA Securities have given target price of RM0.13 - RM0.14.
There will always be trading opportunities on listing day to buy cheap if it opens below IPO price for possible rebound play.
#IPOIdeas
Oversubscribed by 3.26x for the IPO price of RM0.13 with a market capitalisation of RM78 million.
It is raising RM15.21 million from this listing exercise mainly for to support business expansion - three on-going property development and future projects, land banking.
Chief financial officer, Tey Bock Heng, said the company is also actively evaluating additional landbank opportunities to support its future development pipeline, noting that land acquisition remains a core component of its property development business.
"This process will continue because that is the bread and butter of our development business.
Gold Li is set to launch the 500-unit high rise project with a gross development value of RM400 million in Muar by 2027, and “we are very comfortable with the market simply because it is underserved”, he said
For the longest time, there has been no new project launch,” Tey said. “After such a long period, there is pent-up demand from buyers who are looking for apartment or condominium living.”
The changes in lifestyle preferences, particularly among younger buyers, are also driving interest in high-rise living even in secondary towns, he added
The latest quarterly earnings result 31 Jan 2026, it recorded RM10.67 million revenue with a RM0.77 million net profit.
FY2025 net profit was RM7.84 million while revenue was
RM65.03 million.
Malacca Securities and TA Securities have given target price of RM0.13 - RM0.14.
There will always be trading opportunities on listing day to buy cheap if it opens below IPO price for possible rebound play.
#IPOIdeas
Malaysia is becoming one of Southeast Asia’s biggest beneficiaries of the global AI infrastructure spending wave, especially in AI-focused data centres, semiconductors, cloud infrastructure, and digital services.
Some key points behind the “AI capex boom” thesis:
Malaysia is increasingly attracting large-scale AI data centre investments, particularly in Johor and the Klang Valley.
The government is prioritising “AI-grade” and higher-value data centres instead of smaller conventional facilities.
Major global firms are continuing to invest. For example, Equinix recently announced another major Malaysia data centre investment exceeding US$190 million.
AI-related investment is also boosting demand for Malaysia’s semiconductor ecosystem, electrical equipment, engineering services, construction, utilities, and fibre infrastructure.
BMI estimates Malaysia’s data centre pipeline is heavily AI-focused, with around 4.6GW of planned and under-construction capacity.
The Malaysian government also expects AI to contribute RM13 billion–RM20 billion annually to GDP by 2030 and potentially raise GDP growth by 0.8–1.2 percentage points yearly.
Why Malaysia is benefiting:
Lower land and energy costs compared with Singapore
Strong semiconductor supply chain
Strategic ASEAN location
Supportive government policies
Growing hyperscaler and cloud demand
But there are also risks and limits:
Power grid and water constraints are becoming serious concerns.
There’s debate over whether AI investment is overheating or forming a bubble, similar to past tech cycles.
Malaysia could face pressure from global geopolitics, especially US-China AI chip restrictions.
If AI spending slows globally, some planned projects may be delayed.
Overall though, the current consensus among many economists and industry analysts is that AI capex is a meaningful near- to medium-term growth driver for Malaysia, especially for:
data centres,
semiconductors,
construction,
utilities,
industrial REITs,
and tech-related exports.
Some key points behind the “AI capex boom” thesis:
Malaysia is increasingly attracting large-scale AI data centre investments, particularly in Johor and the Klang Valley.
The government is prioritising “AI-grade” and higher-value data centres instead of smaller conventional facilities.
Major global firms are continuing to invest. For example, Equinix recently announced another major Malaysia data centre investment exceeding US$190 million.
AI-related investment is also boosting demand for Malaysia’s semiconductor ecosystem, electrical equipment, engineering services, construction, utilities, and fibre infrastructure.
BMI estimates Malaysia’s data centre pipeline is heavily AI-focused, with around 4.6GW of planned and under-construction capacity.
The Malaysian government also expects AI to contribute RM13 billion–RM20 billion annually to GDP by 2030 and potentially raise GDP growth by 0.8–1.2 percentage points yearly.
Why Malaysia is benefiting:
Lower land and energy costs compared with Singapore
Strong semiconductor supply chain
Strategic ASEAN location
Supportive government policies
Growing hyperscaler and cloud demand
But there are also risks and limits:
Power grid and water constraints are becoming serious concerns.
There’s debate over whether AI investment is overheating or forming a bubble, similar to past tech cycles.
Malaysia could face pressure from global geopolitics, especially US-China AI chip restrictions.
If AI spending slows globally, some planned projects may be delayed.
Overall though, the current consensus among many economists and industry analysts is that AI capex is a meaningful near- to medium-term growth driver for Malaysia, especially for:
data centres,
semiconductors,
construction,
utilities,
industrial REITs,
and tech-related exports.
❤2
Employees Provident Fund reporting a very strong first-quarter investment performance — with investment income reportedly jumping more than 50% year-on-year — but also cautioning that the rest of 2026 may be weaker because the gains were helped by defensive portfolio positioning during volatile markets.
What it means in simpler terms:
EPF likely benefited from moving more money into safer or defensive assets earlier, such as fixed income, cash-like instruments, or defensive sectors when markets were unstable.
Global markets have been volatile due to trade tensions, geopolitics, inflation worries, and interest-rate uncertainty.
Because of that defensive positioning, EPF was able to protect capital and capture gains during the first quarter.
But management is warning that future quarters may not repeat the same performance if markets weaken further or if defensive gains normalize.
This fits with broader concerns around:
slowing global growth,
weaker equity market momentum,
geopolitical risks,
and softer economic conditions in some major economies.
For EPF contributors, a few key takeaways:
A strong 1Q does not automatically mean a much higher annual dividend
EPF dividends depend on full-year performance, not just one quarter.
Defensive investing usually prioritizes stability over maximum upside
That can help preserve members’ savings during uncertain periods.
EPF is signaling caution rather than panic
The message is essentially: “1Q was strong, but don’t expect every quarter to look like this.”
Historically, EPF tends to focus on:
diversification,
long-term returns,
and capital preservation rather than aggressive short-term bets.
What it means in simpler terms:
EPF likely benefited from moving more money into safer or defensive assets earlier, such as fixed income, cash-like instruments, or defensive sectors when markets were unstable.
Global markets have been volatile due to trade tensions, geopolitics, inflation worries, and interest-rate uncertainty.
Because of that defensive positioning, EPF was able to protect capital and capture gains during the first quarter.
But management is warning that future quarters may not repeat the same performance if markets weaken further or if defensive gains normalize.
This fits with broader concerns around:
slowing global growth,
weaker equity market momentum,
geopolitical risks,
and softer economic conditions in some major economies.
For EPF contributors, a few key takeaways:
A strong 1Q does not automatically mean a much higher annual dividend
EPF dividends depend on full-year performance, not just one quarter.
Defensive investing usually prioritizes stability over maximum upside
That can help preserve members’ savings during uncertain periods.
EPF is signaling caution rather than panic
The message is essentially: “1Q was strong, but don’t expect every quarter to look like this.”
Historically, EPF tends to focus on:
diversification,
long-term returns,
and capital preservation rather than aggressive short-term bets.
Forwarded from Rakuten Trade Ideas 🎯
SkyeChip Bhd (5555), our home grown semiconductor chip designer, is making its debut on the Main Market of Bursa Malaysia today.
Oversubscribed by 95.03x at the IPO price of RM0.88 with a market capitalisation of RM1.58 billion.
They have 22 cornerstone investors taking up close to 60% of the institutional offering such as Khazanah, EPF, LTAT, Tabung Haji.
It is raising RM352 million from this listing exercise to expand its operational facilities, computing infrastructure labs, R&D of integrated circuit (IC) products and silicon intellectual property (IP), licensing development tools and working capital.
There is no offer for sale of existing shares, meaning current shareholders are not cashing out.
Chief executive officer Datuk Fong Swee Kiang said the listing will elevate SkyeChip’s position as a regional IC design player focused on high-performance computing and artificial intelligence (AI) within the semiconductor industry.
As we scale, we continue to expand from silicon IP into silicon products, including custom ASIC and we are also engaging in more silicon product-related engagements,” said SkyeChip chief executive officer Datuk Fong Swee Kiang
Full year 2025 net profit was RM35.9 million on the back of RM119.5 million revenue.
For the latest quarterly result 31 March 2026, it recorded RM31.47 milllion net profit on the back of RM58.87 million revenue.
Kenanga Investment Bank, Public Investment Bank, RHB Investment Bank, MBSB Investment Bank, Hong Leong Investment Bank, Malacca Securities, TA Securities, Mercury Securities, BIMB Securities, Tradeview Capital, UOB Kay Hian, and Rakuten Trade have given a target prices of between RM0.99 - RM2.08
There will always be trading opportunities on listing day and may trade above the target prices given.
#IPOIdeas
Oversubscribed by 95.03x at the IPO price of RM0.88 with a market capitalisation of RM1.58 billion.
They have 22 cornerstone investors taking up close to 60% of the institutional offering such as Khazanah, EPF, LTAT, Tabung Haji.
It is raising RM352 million from this listing exercise to expand its operational facilities, computing infrastructure labs, R&D of integrated circuit (IC) products and silicon intellectual property (IP), licensing development tools and working capital.
There is no offer for sale of existing shares, meaning current shareholders are not cashing out.
Chief executive officer Datuk Fong Swee Kiang said the listing will elevate SkyeChip’s position as a regional IC design player focused on high-performance computing and artificial intelligence (AI) within the semiconductor industry.
As we scale, we continue to expand from silicon IP into silicon products, including custom ASIC and we are also engaging in more silicon product-related engagements,” said SkyeChip chief executive officer Datuk Fong Swee Kiang
Full year 2025 net profit was RM35.9 million on the back of RM119.5 million revenue.
For the latest quarterly result 31 March 2026, it recorded RM31.47 milllion net profit on the back of RM58.87 million revenue.
Kenanga Investment Bank, Public Investment Bank, RHB Investment Bank, MBSB Investment Bank, Hong Leong Investment Bank, Malacca Securities, TA Securities, Mercury Securities, BIMB Securities, Tradeview Capital, UOB Kay Hian, and Rakuten Trade have given a target prices of between RM0.99 - RM2.08
There will always be trading opportunities on listing day and may trade above the target prices given.
#IPOIdeas