Malaysia Money Matters Daily News Digest 18th Jun 2025

In today’s episode of Malaysia Money Matters, we spotlight major energy sector investments, unfolding policy reforms, and shifting global dynamics. From Shell’s RM9B commitment and Petronas’ regional expansion to tax policy backlash and a fast-changing global oil market, we explore how Malaysia is navigating opportunity and risk on all fronts.🇲🇾 Malaysian Company & Market News🔹 Shell Commits RM9B to MalaysiaMajor foreign investment reflects global confidence. Expected to create high-skilled jobs and boost long-term economic activity.🔹 Petronas Expands LNG InfrastructurePlans for a third regasification terminal aim to meet surging electricity demand driven by data centre growth.🔹 Petronas-Eni Joint Venture Formed50:50 partnership covers gas assets in Malaysia and Indonesia. Enhances energy security across the region.🔹 Low-Carbon PivotPetronas allocates 20% of capex to clean energy over five years. Supports Malaysia’s net zero ambitions.🔹 Renewables Push Across ASEANPower grid integration and Vietnam-Singapore energy exports show momentum. Maybank deems the ASEAN grid “feasible.”🔹 Solar Opportunities AheadFirms sidelined in LSS5 may lead future tenders. Up to RM10B in new solar contracts anticipated.🔹 Berjaya Eyes Perlis DiversificationVenturing into rare earths, durian, and plantations. Signals regional economic strategy beyond KL.🔹 Yinson Secures US$300M InvestmentFirst tranche of a US$1B global consortium deal. Strengthens balance sheet and growth capacity.🔹 Chin Hin Cancels RM51M DealAcquisition scrapped after failure to meet key order book requirement—underscores deal-making risks.🔹 Malaysia Marine Wins Long-Running Legal CaseSix-year dispute resolved in their favor, avoiding a major financial liability.🏛️ Domestic Economy & Policy🔸 RON95 Subsidy Reform Still in PlaySeen as a precursor to Malaysia’s 2026 carbon tax. Government reiterates commitment despite political sensitivity.🔸 Tax Hikes Face Industry PushbackFMM and business groups urge delay of expanded SST—particularly the 8% tax on commercial services. Warn of inflation and job risks.🔸 REITs, Glove Makers Brace for Margin SqueezeHigher SST and power tariffs expected to dent profits in H2 2025.🔸 Ringgit Stability, FDI Holding StrongDespite global trade jitters, Bank Negara remains focused on currency stability. Malaysia continues to attract healthy foreign investment.🔸 EPF & Socso Push Social ReformEPF urges retirement system overhaul. Socso to roll out mandatory gig worker contributions by Jan 2026, adding social safety coverage.🌍 Global & Market Developments🌐 Middle East Tensions Boost Tanker RatesNon-hostile tanker incident near Hormuz raises risk premium. Oil prices remain elevated, currencies under pressure.📉 IEA: China Oil Demand May Peak by 2027Driven by EV growth, earlier-than-expected plateau could lead to global supply surplus in the long run.💼 EU-China Tensions EscalateTrade talks stall over rare earth exports. Broader implications for tech and manufacturing.📊 US Retail, Industrial Data WeakensMay numbers show signs of consumer pullback—likely tied to tariffs and economic uncertainty.💵 Foreign Demand for US Treasuries WanesCentral banks diversify away from dollar assets, posing questions for future US financing.🏦 Diverging Asia Central Bank MovesBOJ holds steady, BI focuses on currency, BSP may cut rates—reflects diverse inflation and currency pressures.📌 Key Takeaways & Investor Insights✅ Energy is driving growth—Shell and Petronas are doubling down on Malaysia’s strategic role in both fossil and clean energy.✅ Solar and ASEAN power grid developments suggest major infrastructure plays ahead.✅ Business resistance to SST expansion is intensifying—watch REITs, glove stocks, and consumer-exposed sectors.✅ Malaysia’s FDI and policy resilience remain bright spots amid global headwinds.✅ Geopolitical risk and EV disruption are reshaping oil and trade dynamics faster than expected.🎧 Listen Now for a deep dive into Malaysia’s financial gems and global trends shaping 2025!🔗 Subscribe & Share the Malaysia Money Matters podcast on Substack, Spotify, or Apple Podcasts.Malaysia Money Matters is a one-person passion project. Subscribe for free or support me as a paid subscriber—it means the world to me! This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit mmoneymatters.substack.com