What Work Should I Stop Doing Manually?

 

Because AI is moving work from:

-Search

-Analyze

-Design

-Present

 

Into:

 -Describe the outcome

-Give the context

-Let AI build the first version

-Review and improve the result

In 2026, the edge will go to people who build smarter systems around their work. Hard work still matters. But doing every step by hand is getting expensive. Which task are you still doing manually?

  

Reference:

Julia Danyal’s post on LinkedIn

Muted 1Q26 and the Hormuz Effects Ahead!

 

The first quarter (1Q26) reporting season for 2026 was undeniably weak, led by a surprisingly poor set of results from the banking sector as well as the consumer sector. Banking stocks like Malayan Banking Bhd and CIMB Group Holdings Bhd reported negative earnings growth year-on-year (y-o-y) of 4.1% and 2.9%, respectively. Bucking the trend, RHB Bank Bhd recorded a strong performance with a solid 14.2% y-o-y growth in net earnings.

 

Source: https://de.wikipedia.org

Among FBM KLCI stocks, outstanding earnings growth was seen in the telecommunications sector. In the utility sector, Tenaga Nasional Bhd saw a decent growth in earnings of 5.5% y-o-y, but YTL Power International Bhd posted a significant 42% drop in profits, namely driven by lower margins. Other notable surprises among FBM KLCI-linked companies were the lower earnings by newly listed Sunway Healthcare Holdings Bhd, due to one-off listing expenses as well as higher operating expenses. However, Press Metal Aluminium Holdings Bhd continues to ride the rise in commodity prices, as its earnings jumped 35.2% y-o-y on the back of higher aluminium prices.

Among plantation companies, Kuala Lumpur Kepong Bhd reported a weaker core profit, dragged by lower plantation earnings, while SD Guthrie Bhd’s earnings were impacted by lower profits from its upstream division. However, IOI Corp Bhd’s earnings were firmer by about 10% due to higher output and better oil extraction rate. 

Although corporate earnings showed a decent growth of 3.6% y-o-y for 1Q26, the pace of increase was slower than the preceding quarter’s 7.5% y-o-y growth.

On a quarter-to-quarter (q-o-q) basis, after expanding by 4.2% in the preceding quarter, earnings momentum reversed with contraction of 3.5% q-o-q. 

Most brokers lowered their FBM KLCI target, with consensus now looking at 1,766 points as the new fair value, against 1,775 points in the preceding quarter, based on earnings growth of approximately 7.9% for 2026 and a market price earnings multiple of 15.3 times. For 2027, earnings growth has been lowered marginally from the previous estimate of 7.5% to 6%. 

The closure of the Strait of Hormuz and the prolonged war in Iran have taken a toll on the global economic outlook. Countries have utilised their strategic petroleum reserve to offset supply uncertainties. The supply chain disruption will also take a toll on other commodities and goods that are imported from the region. 

The Organisation for Economic Cooperation and Development (OECD) recently lowered its 2026 global economic growth outlook to just 2.8% from the 3.6% that was achieved in 2025, while growth for 2027 is now projected at 3.1%. The OECD further warned that under a “prolonged disruption”, which assumes that the current disruptions to energy production and exports in the Gulf economies persist well into 2027, global growth may even slow to just 2.1% in 2026 and 1.8% in 2027. 

The elevated global oil price has also become a hot potato for the Federal Government to manage, as it has vowed to keep the current subsidy price, while ensuring that it maintains its fiscal prudence and does not raise the federal government’s debt level. A tough balancing act.

Given the external and domestic headwinds, the upcoming 2Q26 reporting season will remain a subdued quarter, and with the supply disruption and elevated global oil prices, a slower economic growth is likely to follow suit. 

Reference:

Muted 1Q26, weaker growth ahead, Pankaj C. Kumar, The Star, 13 June 2026

The Pressure on Malaysia’s Automotive Policy!

 

For Malaysia, there is a challenge to long-standing policy assumptions. The National Automotive Policy 2020 was drafted when China was still below the radar as a global automotive leader. However, the pace of change showcased in Beijing auto show suggests that the NAP needs to be reviewed, with an emphasis on outcomes rather than aspirations. 

Malaysia’s automotive landscape is closely tied to Proton, long seen as a symbol of national industrial ambition. Yet Proton’s strategic partnership with Geely highlights a deeper reality: the line between domestic and foreign capability is increasingly blurred.

 

Source: https://en.wikipedia.org 

Geely brings scale, advanced platforms, and access to China’s fast-moving innovation ecosystem — advantages that would be difficult for any standalone national automaker to replicate. 

This creates a policy tension. On one hand, there is a desire to protect domestic industry players to preserve jobs, local vendors, and national identity. On the other, excessive protection risks insulating the market from competition at a time when global benchmarks are rising quickly. The issue is not protection per se, but whether it remains fit for purpose in a dramatically different global environment. 

For Malaysian consumers, the implications are significant. First, the price-performance gap is likely to widen. Chinese-developed vehicles—particularly EVs and strong hybrids—are improving rapidly while becoming more affordable. If the domestic market is shielded from these trends, buyers may face higher prices or slower access to new technologies. 

Second, expectations around technology are shifting. Features such as advanced driver assistance systems, seamless infotainment integration, and over-the-air software updates are becoming standard in China-linked vehicles but may not be as readily available if competition is restrained. Malaysian buyers exposed to these advancements may begin to demand similar value across all segments. 

Third, consumer preferences could increasingly diverge from policy intent. Even with incentives or protective measures favouring national brands, buyers tend to gravitate toward vehicles that offer the best overall value. In a more connected and informed market, shielding consumers from global competition becomes harder to sustain. 

None of this suggests that Malaysia should abandon its ambition to build a strong domestic automotive industry. Rather, it points to the need for recalibration. Competing in today’s environment — and within Malaysia’s fragmented car market — may require less emphasis on local assembly and more focus on integration: deeper participation in regional supply chains, partnerships that accelerate technology transfer, and investments in high-value areas such as electrical and electronics, software, and mobility services. And working R&Ds on new concept vehicles. 

Development cycles are shorter, innovation is more iterative, and scale matters more than ever. Policies designed for a slower era risk is now falling out of sync with these realities. Malaysia  faces a choice. It can continue to anchor its automotive strategy in an industrial past shaped by protection and gradual upgrading, or it can adapt to a future defined by speed, openness, and intense competition. 

For Malaysian car buyers, the outcome of that choice will determine not just what they drive, but how much value they receive. 

Reference:

China’s car surge puts pressure on Malaysian policy and car buyers, Yamin Vong, FMT, 4 May 2026

Are Banks “Really” Helping MSMEs?

 

The turmoil in the oil market due to the Iran war has disrupted supply chains across many economies around the world. There is barely any country insulated from the effects of this supply chain-driven crisis. Malaysia, while a net energy exporter (oil and gas), remains a net importer of crude oil. This effectively means that our country’s economy is also affected by the supply chain crisis, with inflationary pressure creeping and unemployment rate spiking. 

In April, unemployment rate jumped 20% to around 7,000 people losing their jobs. The cracks are showing. Micro, small and medium enterprises (MSMEs) are again the most impacted category with cash-flow constraints, with some estimated to have an average runway of only six months amid the ongoing uncertainty. 

Source: https://www.wikiimpact.com 

MSMEs make up 40% of the country’s gross domestic product and employ nearly 48% of the workforce. We are seeing many announcements, including a RM5bil special funding allocation under the SME Stabilisation Relief Facility to help affected businesses manage their cash flow. Another would be the RM5bil guarantee facility provided by Credit Guarantee Corp Malaysia Bhd and Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP), bringing total support for the MSME sector to RM60bil. 

Speaking from personal experience, I have seen disappointing encounters when seeking bank financing for clients. The financing in green renewables or for scheduled waste have taken long periods for approval. Why? The client does not have a GLC or GLIC as its shareholder. The sector assumptions are not widely accepted. The size of the facility is too large. The risk unit of a bank is not ‘comfortable’ with the project profile. And so forth. 

Building my own business (financial advisory) from the ground up with no external fundraising, I can say that the banking system in Malaysia does not foster entrepreneurial endeavours. In fact, it is a major hurdle to MSMEs as the bank establishments are too entrenched following the post 1997 Asian financial crisis consolidation exercise. 

The banks prefer only to lend to highly profitable businesses that may not need it and deprive those who have genuine financing needs. They back winners or those who they think are winners. This is why regardless of whether it is an economic crisis such as Covid-19, the banks all remain highly profitable so much so they can afford to pay windfall dividends to shareholders and higher taxes to the government during the period. 

Some may argue that, with the government rolling out many programmes today, the situation must be different. While larger allocations may increase banks’ capacity to disburse loans, the more important question is who ultimately receives the financing. Many have been approached by relationship managers and bankers to take up special SME loan facilities with low interest rates, even though they do not need additional financing. This includes owners of listed companies and large private corporations. In many cases, financing is channelled through associated companies or subsidiaries of privately held groups. Even where traditional collateral may be lacking, banks are often willing to accept corporate guarantees from financially strong parent entities. What this effectively means is that banks hardly lose. They only finance profitable companies with little to no risk of default. In addition, many facilities remain collateral-backed and may require borrowers to purchase key-person insurance from related insurance providers at exorbitant premiums. As a result, banks can generate income not only from lending activities but also from associated financial products. 

If we truly want to foster entrepreneurship and help the MSMEs evolve into high-quality public-listed companies, this is not the way. There is a pressing need to have a larger pool of dedicated funds that invest directly in MSMEs. Beyond lending, these funds should provide equity financing and growth capital to promising businesses with the potential to scale. And use licensed corporate finance advisors (CFAs) to steer MSME on a pathway to success. Banks only look after their own balance sheet! If only they use CFAs with BNM’s approval to assist in the growth trajectory of MSMEs then we may have a dynamic landscape and more employment opportunities for fresh graduates. 

Reference:

Are banks truly helping MSMEs?, Ng Zhu Hann, The Star, 13 June 2026

 

Has Asia’s Factory Output Expanded?

 

Asia's factory activity expanded steadily in May on stockpiling by some companies to get ahead of supply shocks from the Middle East conflict. Surveys done showed that the war in the Middle East was straining global energy supplies and hitting vulnerable economies hardest.

Factory activity expanded in most Asian economies. China's private sector gauge grew for a sixth straight month and South Korea's hit the fastest pace in five years, highlighting a region-wide push to build buffers against potential conflict-led disruptions. 

Japan's factory activity also expanded with the PMI at 54.5 in May, slowing from April's more than four-year high of 55.1, though firms there reported the sharpest rise in input costs since September 2022 due to higher raw material prices driven by the Middle East war.

 

Source: https://en.wikipedia.org 

South Korea's PMI rose to its highest since March 2021 at 54.8 in May, up from 53.6 in April, again underlining firms' drive to lock in supplies as shipping disruptions tied to the Iran war jolt global trade. 

The U.S.-Israeli war on Iran, which began late in February, has upended trade, rattled financial markets and raised concerns over global energy supplies, particularly through the Strait of Hormuz, a key route for oil and gas shipments. 

In Vietnam, the factory PMI gauge rose to 52.8 from 50.5 in April, while that for Taiwan rose to 56.1 from 55.3, the surveys showed. The index for the Philippines also rose to 50.8 from 48.3 in April. 

The uncertainties in the world cause many to stock-up but this itself is a cost which will be borne by the consumer eventually. The sooner there is peace, we have a more sane world. But, alas, America is bent on war and tariffs which is just self-destruction! On its 250^th anniversary (of independence), there is little cause to celebrate with a president who only sees everything in transactional terms and focused on him. 

Reference:

Asia's factory output expands as firms stockpile buffers over Iran war risks, The Star,

1 Jun 2026

 

 

Strategic Thinking Models for Leaders

 Most leaders don’t fail because they lack effort. They fail because they lack clear thinking frameworks.

Here are 10 strategic thinking models every leader should have in their toolkit: 

1. SWOT Analysis → Know your strengths & blind spots

2. Porter’s Five Forces → Understand your competitive landscape

3. PESTLE Analysis → Scan the external environment

4. Blue Ocean Strategy → Create, don’t compete

5. BCG Matrix → Allocate resources wisely

6. Scenario Planning → Prepare for uncertainty

7. OODA Loop → Make faster, smarter decisions

8. McKinsey 7S → Align your organization

9. First Principles Thinking → Solve problems from the ground up

10. Ansoff Matrix → Choose the right growth path

The real advantage? Not knowing these models—but knowing when to use each one. Great leaders don’t guess. They think in systems.

  

 Reference:

10 Strategic Thinking Models for Leaders, Des H Rikhotso on Linkedin

Job Losses and Job Creation!

 

It was recently reported that 7,057 workers lost their jobs in April, up from 5,855 in March, though still below January’s 10,658. In its latest report, the Social Security Organisation said manufacturing remains the hardest-hit sector, accounting for more than a quarter of total job losses in April, followed by wholesale and retail trade as well as vehicle repair services.

 

 

In the above chart, critical talent shortages are mentioned as well as sectors actively recruiting. AI and semiconductors are creating demand. Digital capabilities are increasingly sought even outside traditional technology jobs. The market is moving toward tech-enabled roles, not only pure tech jobs. Workers in areas such as sales, finance, marketing, operations and administration are increasingly expected to use AI tools.

 

Job losses may need more detailed work, especially if it is manufacturing. Is this due to manufacturing plants closing and what skill sets do the workers have? If it is wholesale and retail trade then that’s more reflective of a general dampening in consumer demand. some of these workers could be re-trained but many may be too old or too fixed in their thinking!

 

Reference:

High-tech skills a buffer from cuts, Allison Lai, The Star, 27 May 2026