Analysis

Malaysia’s Budget 2027 offers tax relief for middle-income earners and small and medium-sized enterprises (SMEs), alongside incentives for strategic industries, as the government seeks to stimulate economic activity while narrowing the fiscal deficit, according to PwC Malaysia tax leader Steve Chia.

MBSB Research has maintained its neutral recommendation on Malaysia’s technology sector, citing strong semiconductor demand driven by artificial intelligence (AI) and data center infrastructure spending, but warned that a severe talent shortage, rising regional competition and potential AI regulation could limit earnings growth.

The artificial intelligence (AI) investment cycle is entering a second phase in 2026, with demand broadening beyond GPUs to inference, AI agents and commercial applications, creating new opportunities across optical connectivity, power, advanced packaging and semiconductor equipment, Kenanga Research said on Monday.

Singapore’s electric vehicle (EV) transition is entering a more mature, policy-dependent phase, with sales forecast to rise 34.3 percent in 2026 as government incentives, cheaper models from China and expanding charging infrastructure support adoption, BMI Country Risk And Industry Research said on Thursday.

Grid investment is accelerating across developed East Asia as power networks struggle to keep pace with rapid renewable energy deployment, while slower spending in Indonesia and Thailand risks constraining renewables growth and widening the gap with regional peers, BMI Country Risk and Industry Research said.

Electric vehicle (EV) adoption across Asia-Pacific is set to broaden beyond China into India, Thailand, Indonesia, Malaysia and Vietnam, even as weaker demand in Mainland China weighs on overall regional vehicle sales in 2026, BMI Country Risk and Industry Research said on Monday.

The Philippines is set for a significant expansion of data center capacity, with 221MW of planned projects and 43MW under construction, as operators increasingly develop larger, higher-density facilities designed to support artificial intelligence (AI) workloads, BMI Country Risk and Industry Research said on last Friday.

Asia-Pacific’s economic growth is expected to remain resilient as an artificial intelligence (AI)-driven technology export boom supports the region, although weak domestic demand in China, elevated energy prices and tighter US monetary policy pose risks, S&P Global Ratings said on Tuesday.

Malaysia's cut in the system access charge for firm renewable energy supply is expected to accelerate the rollout of corporate renewable energy projects, with solar engineering, procurement and construction (EPCC) awards potentially starting from the fourth quarter of 2026, according to research houses.

A faster and more aggressive shift towards net-zero emissions could increase corporate credit risks across ASEAN+3 economies, particularly in energy-intensive sectors, while a more gradual climate transition may give companies greater time to adjust their operations and financial positions, according to the ASEAN+3 Macroeconomic Research Office (AMRO)…