☕️ Sarawak's technotopia in the works

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

40.77 mil – As of Sept 30, that’s the number of registered vehicles in Malaysia. More than our population. However, according to Transport Minister Anthony Loke, only 26.6 mil (65.3%) were classified as active. He added that, of the active vehicles, nearly 16 mil were cars, while 9.57 mil were motorcycles. At the end of 2024, 38.7 mil vehicles were registered. A further 1.62 mil new vehicles were registered during 2025. This included about 847,000 cars and 703,000 motorcycles. According to Loke, this high number indicated a continued reliance on private vehicles, which contributes to traffic congestion and increases exposure to accident risks. It also prolongs travel times, affecting productivity and people’s well-being, he added.

RM1.23 tril – That's how much financing for property amounted to in Aug 2026, from a total of RM2.45 tril in bank loans during the month. This meant that property purchase loans accounted for about 50.2% of total banking system loans for the month. Financing for residential property made up most of the amount at about RM925.48 bil, up 5.3% from the same period last year. Non-residential property financing reached about RM304.7 bil, up 7.7% over the same period. However, BIMB Securities Research said overall household financing growth remained at 5% year-on-year in Aug, unchanged from the previous month. This indicates that growth in property-related financing was uneven, with financing for the property sector recording double-digit growth while financing for residential purchases expanded at a more moderate pace.

RM61.01 bil – Malaysia is expected to pay that amount to service its debts in 2027, according to the Ministry of Finance. This amount is also 6.5% higher than the RM57.3 bil estimated in 2026. The higher debt service charges are expected to account for about 16% of federal government revenue in 2027, based on the government's projected revenue of RM380.82 bil, up from 15.8% in 2026. This means that for every RM100 collected in federal revenue next year, RM16 will go towards interest and profit payments on existing government debt. These growing charges reflect Malaysia's increasing federal government debt, which reached RM1.38 tril at end-Jun 2026, compared to RM1.32 tril at end-2025. Still, the debt-to-GDP ratio, which measures how much the government owes relative to the country's income, has eased to 63.1% from 65.2% over the same period, placing the government closer to its medium-term target of below 60% under the Public Finance and Fiscal Responsibility Act 2023.

3. IN MALAYSIA 🇲🇾

Sarawak’s tech push
Sarawak unveils homegrown chip push: Sarawak has unveiled its first locally designed gallium nitride power semiconductor chip, keteq.GaN, as part of a wider push into semiconductors, artificial intelligence and digital infrastructure. Developed by state-owned SMD Semiconductor, the chip is designed for intelligent power conversion systems and marks another step in Sarawak’s Semiconductor Roadmap 2030. The state also launched its first comprehensive cybersecurity strategy, the Sarawak Cybersecurity Strategy Roadmap 2030, which aims to protect government systems, businesses and citizens as more services move online. Sarawak Pass, the state’s digital identity platform, is also being integrated with MyDigital ID to provide smoother access to government and other digital services.

These initiatives sit alongside Sarawak’s broader technology plans, including the Sarawak Artificial Intelligence Centre, the Sarawak AI Blueprint 2026 to 2030, a Kuching AI Data Campus and an AI Grid powered by the state’s renewable energy capacity. Sarawak also plans to launch its first nanosatellite in 2030 to support environmental monitoring, resource management and local research while building expertise in electronics, semiconductors and space technology.

SoftBank and Grab eye Sarawak AI hub: SoftBank Group, Grab and Petroleum Sarawak (Petros) are exploring plans to develop an artificial intelligence and digital infrastructure platform in Sarawak. The three parties will develop a phased roadmap covering computing capacity, power, telecommunications, AI services, robotics and local talent development. SoftBank said the collaboration could cover a wide range of AI infrastructure projects, while Grab is expected to contribute its regional digital ecosystem, applied AI capabilities and customer networks across Southeast Asia. Petros said the plan is still at the feasibility stage, with no specific projects confirmed yet.

A country in the making?

Business
AirAsia funding talks draw mixed signals
AirAsia Co-Founder Tony Fernandes met Malaysian government officials in late Sept as the airline faces higher fuel costs and growing funding pressure. Reuters reported that discussions with the Finance Ministry included the possibility of government backing for AirAsia’s fundraising efforts, subject to conditions. Fernandes confirmed meeting government officials but denied asking for financial assistance, saying the talks focused on aviation costs such as airport charges and fuel.

AirAsia reported a RM831 mil net loss for the second quarter ended June 30 and had RM954 mil in cash and bank balances against RM18.4 bil in current liabilities. Jet fuel costs also jumped 66% from the previous quarter to an average of USD183 (RM747.85) a barrel. The airline is targeting up to USD1 bil from international debt markets and RM700 mil in local credit facilities, mainly to refinance debt and support working capital. Fernandes said he remains confident AirAsia can manage without state assistance, although he added that the airline would not reject support if offered.

However, Transport Minister Anthony Loke said his ministry had not met AirAsia in the past two or three weeks and that no agreements had been reached. He said AirAsia may have held discussions with the Finance Ministry, noting that airlines regularly meet government officials. His comments differ from Fernandes’ statement to Reuters that he had met officials from both the Finance and Transport ministries.

Genting seeks RM1.25 bil to cut debt
Genting plans to raise RM1.25 bil through its first rights issue, with RM800 mil earmarked to repay short-term borrowings and the balance set aside for working capital. The group said the debt repayment could save around RM41.3 mil a year in interest, based on its average short-term borrowing rate of 5.16%. The fundraising comes as Genting carries RM45.25 bil in total borrowings, including RM9.68 bil due within 12 months. The proposed rights shares are expected to be priced at a 25% to 30% discount to the theoretical ex-rights price, while major shareholders linked to Executive Chairman Lim Kok Thay have committed to taking up 45.1% of the issue. The exercise is expected to be completed in the first quarter of 2027, subject to shareholder approval.
Learn: What is rights issue?

The announcement was not well received by the market. Genting shares fell 23% to RM1.45, their lowest level since 2007, while Genting Malaysia dropped 17%. Analysts warned that the rights issue could dilute earnings and dividends per share, although some said raising equity may be cheaper than taking on more debt after recent credit rating downgrades pushed up Genting’s funding costs.

Shorts:

1. Putrajaya rolls out driverless electric bus
   Putrajaya has launched a new autonomous electric bus service on the P113 route, running eight trips a day from MRT Putrajaya Sentral. The circular route serves five stops, including the Finance Ministry, Palace of Justice and Dataran Gemilang. A one-way trip costs RM1, with payment by Mastercard or Visa card only. The driverless bus is supplied by Malaysian start-up eMooVit Technology and uses LiDAR, radar and 360-degree cameras to navigate the route.

2. Muhriz invited to rulers’ council
   Negeri Sembilan ruler Tuanku Muhriz has been invited to the Conference of Rulers from Oct 13 to 15, while rival claimant Nadzaruddin Ja’afar was not invited. Muhriz is expected to attend the rulers’ pre-council meeting on Oct 13 before returning to Negeri Sembilan to oversee the appointment of a new Jelebu Undang. The move could strengthen his position in the state’s ongoing throne dispute, which has also involved the Menteri Besar, state exco and the Attorney General.

4. AROUND THE WORLD 🌎

Russia-Ukraine
Trump says energy ceasefire between Russia and Ukraine
Is there really a ceasefire deal? President Donald Trump might have pulled another South Korea move, as he claimed that Russia and Ukraine have agreed to an “energy ceasefire” and that it would be “effective immediately”. No further details were provided. Ukrainian President Volodymyr Zelenskyy was “surprised” at the announcement but would support it if the Russians support it too. He said that it was ‘news’ to him that an energy truce was in effect. But it seems like Russia did not get the memo either, as they continue to hit energy facilities in Ukraine after the ceasefire announcement.

Trump and the Republicans have a lot at stake in the mid-term elections. Gasoline and diesel prices are sky-high, which has fed into overall inflation. Voters are angry at higher fuel prices and face a higher cost of living. So, Trump and Putin recently struck a deal to release Russian diesel to the US and global markets. This will temporarily undo the sanctions on Russian diesel imports and provide a lifeline to Russian finances. And it did not go down well with US politicians. Seven senators - three Democrats and four Republicans - said that Trump’s deal “runs directly counter” to a law that had explicitly banned Russian energy imports.

… And he wants Zelenskyy out
When Trump and Putin struck a deal to release millions of tonnes of Russian diesel into the US and global markets, Ukrainian President Zelenskyy was not happy. He viewed it as support for Russia to continue its war in Ukraine. So, he said it was a “gift to Russian President Vladimir Putin”. Trump wasn’t happy about that statement. He said, “He better damn well stop” and that Zelenskyy “wants to make problems for the world” if Ukraine continues to authorise attacks on Russian refineries. Then he said he thinks that “It’s time for Ukraine to get a new president”. Ukraine had suspended elections as it deals with the war with Russia, but Zelenskyy has said that the country will hold elections if Russia agrees to a ceasefire for 60 days.

Tokenisation to unleash tens of billions in capital, Nasdaq CEO says
Greed is good. And Nasdaq CEO Adena Friedman thinks that tokenisation could free up tens of billions of dollars in capital tied up in assets used as collateral across the global financial system. Tokenising assets such as Treasuries, equities and money market funds could make them more liquid. It represents financial assets as digital tokens that can be transferred using blockchain technology.

Interest among the big boys of finance has increased in tokenisation with the passage of the GENIUS Act in the US, which established a regulatory framework for stablecoins. This converged with the rising demand from retail investors who wanted to trade around the clock. With artificial intelligence (AI), it could help financial institutions manage the transition to 24/7 trading hours. Nasdaq has already launched a series of digital agents within its risk management platform that initially provide recommendations.
Here’s a short video on tokenisation:

Shorts:

1. Five missing in Nepal flash flood
   Another round of disaster to hit Nepal. Flash floods hit the Budhi Gandaki River in Gorkha and Dhading districts of central Nepal and swept away 65 houses. Five people have been reported missing, while two motorable bridges and two suspension bridges were destroyed. The flood was triggered by a landslide at Chumanubri Rural Municipality in Gorkha district, which temporarily blocked the Budhi Gandaki River. It later broke and caused a sudden flow of water, mud and debris that damaged settlements along its banks.

2. Singapore rolls out haze subsidies; Malaysia extends school closures
   Singapore has rolled out subsidies that will allow citizens to receive affordable care for haze-related conditions. They will cover conditions including "allergic rhinitis, asthma, bronchitis, conjunctivitis, chronic obstructive pulmonary disease, upper respiratory tract infection, and their complications”. Treatment is capped at SGD10 (RM33) for most eligible Singaporeans, and SGD5 for senior citizens aged 67 and above. Singapore last activated its subsidies in 2015, when Indonesian forest fires drove up illnesses and led to school closures and flight cancellations.
   Meanwhile, in Malaysia, schools reopened Monday in most areas but remain closed across southern Johor state and parts of Kuala Lumpur and central Selangor state. Malaysian low-cost carrier Firefly cancelled flights between Sultan Abdul Aziz Shah Airport near Kuala Lumpur and Singapore’s Seletar Airport from Saturday to Monday as a “precautionary safety measure”.

5. FOR YOUR EYES 📺

1. Origins: Rooster Bowl

2. Max vs 100 - Verstappen from P101 to P1 in “world’s biggest go-kart race”, as claimed by Red Bull.

3. How about checking the sun before buying your property?