Malaysia’s 15 million “Ghost Vehicles”

 

According to figures from the relevant government sources, there were over 38 million registered vehicles against a population of just 34 million – a ratio of more than 1,100 vehicles per 1,000 people. (This article is adapted from a letter by Yap Yok Foo to FMT). 

By per capita income, Malaysia does not rank among the world’s highest. Our motor vehicle taxes are among the steepest, cheaper only than Singapore’s. How could we possibly have more vehicles than citizens? The road transport department (JPJ) runs a meticulous system for registering new vehicles, but a shockingly poor one for deleting old ones.

 

Source: https://en.wikipedia.org

 

Compiled from global transport data aggregates, including from the World Bank, International Organisation of Motor Vehicle Manufacturers and Malaysian transport ministry updates.

 

The answer does not lie in a sudden explosion of wealth or multi-car garage ownership. It lies in a systemic, bureaucratic anomaly. The root cause of Malaysia’s bloated motorisation rate is the way data is catalogued. JPJ, formerly known as the Registrar and Inspector of Motor Vehicles, apparently has a register for birth, but none for death. Unlike developed nations that clean their registries annually, Malaysia includes virtually every vehicle ever registered that has not been explicitly reported as scrapped. In essence, millions of “zombie vehicles” – rusted chassis sitting in remote kampungs, decades-old motorcycles abandoned in back alleys and vehicles long cannibalised for parts in scrapyards – remain permanently active in JPJ books. This oversight warps international comparisons. When evaluating the metric of motor vehicles per 1,000 inhabitants, Malaysia appears neck-and-neck with the most motorised nations on earth. 

Malaysia’s tax structure deepens the mystery. The country imposes some of the world’s highest excise duties on imported vehicles, second only to Singapore within the region. While this protects local manufacturers like Proton and Perodua, it makes automotive acquisition a serious financial commitment. Logically, high costs should suppress a vehicle population. The fact that the register says otherwise exposes the lack of an exit pathway for old metal. 

The problem is simple. There is no penalty for failing to report a scrapped vehicle – in fact, there is a significant disincentive. To deregister a dead car, an owner must tow it to a Puspakom inspection centre (recently liberalised) to verify chassis and engine numbers. A person with a rusting hulk in their backyard is not going to pay for a tow truck. Instead, they abandon it on public roads or sell it to a scrapyard for cannibalisation. The result? The vehicle remains “alive” in JPJ’s database and the local council is at a loss to do what is needed to tow the car away. 

To transform Malaysia’s transport data from a work of fiction into a reliable planning asset, the transport ministry must implement structured, pragmatic systemic updates. 

1. Automated ‘dead car’ purge

The most immediate fix is a rolling bureaucratic sunset clause. Any vehicle that has failed to renew its road tax (annual licence) for five consecutive years should be automatically classified as inactive or dead, and purged from active transport planning databases.

2. Liberalising inspection and scrapping incentives

The recent steps toward liberalising the vehicle inspection market by breaking old monopolies must be extended to include authorised treatment facilities for end-of-life vehicles. If local certified scrapyards are given the legal digital authority to deregister a vehicle instantly via a smartphone app upon receipt, the friction vanishes. Owners could even be offered minor tax rebates on their next vehicle purchase if they turn in an old clunker to a certified facility. 

3. Unlocking federal revenue

Automated deregistration would instantly free up an immense archive of alpha-numeric combinations. The government could systematically reclaim these dormant, high-value license plates and re-release them through the JPJ e-Bid system. This clean-up process turns a data maintenance chore into a multi-million-ringgit revenue generator for the national treasury. 

Let us not be a country that forgets to bury its dead. Zombies exist on paper. Isn’t it better to auction those zombie plates? Like “JT 1”? ha-ha.  It is time to stop counting ghosts and start counting real vehicles. Our roads – and our Treasury – will need that for planning the future! 

Reference:

Malaysia’s 15 million ‘ghost vehicles’: why our car statistics are a myth, Yap Kok Foo, Letter to the Editor, FMT, 24 June 2026

 

Raising the Ceiling, Raising the Floor

 

Malaysia has expanded education, employment, and incomes over two decades of steady growth. Yet real wage gains, while broadly aligned with productivity, have been modest relative to rising education, aspirations, and living costs. 

The Special Issue of the Malaysia Economic Monitor by the World Bank argues that Malaysia’s central challenge is no longer job creation per se. With labour force participation at historically high levels and unemployment remaining low, the economy has demonstrated a strong capacity to generate jobs in aggregate. The more pressing challenge, rather, is the creation and scaling of high-quality, and well-matched roles which result in significant wage growth. This means jobs in higher value-added activities generated by productive firms that are able to pay higher wages, which allow workers to better utilize and upgrade their skills, and which support durable gains in purchasing power. 

Durable wage growth is the product of a virtuous cycle linking opportunity creation with capability building. It cannot be delivered by wage-setting policies alone. On the opportunity side, this means an ecosystem where productive businesses can enter and expand; on the capability side, it means skilling and upskilling the workforce in line with the opportunities created. Productivity growth—driven by firm upgrading, the business environment, and effective use of skills—is the binding constraint. Evidence from Malaysia confirms this: labor productivity has lagged real wage growth, particularly when examined on per worker basis, though with notable variation across states and groups of workers.

 

 

Rising skills-related underemployment over the last decade signals that high-productivity job creation is not keeping pace with rising workforce capabilities. Despite some improvement in recent years, more than one-third of tertiary-educated workers are now employed in jobs below their qualification level, weakening the translation of human capital into higher productivity and earnings. This primarily reflects demand-side constraints—firms not creating enough high-skill, high-productivity jobs to absorb an increasingly educated workforce. Skills mismatches and capability gaps, however, compound the problem. 

As said before, Malaysia needs to invest more in R&D and create an environment for innovation and invention. Our R&D is at 1.0% (or thereabouts) of GDP. Other nations are above 3.0%. Next, our education system from school to tertiary is not geared for the future. Both Ministers of Education and Higher Education cannot envisage the future! 

Reference:

Malaysia Economic Monitor, World Bank Group, April 2026

 

Time to Halt New Data Centres?

 

Malaysia's rise as a regional data-centre hub has been hailed as evidence that the country is becoming a major player in the digital economy. Many Ministers proudly announce billions of ringgit in investments from global technology giants. State governments compete to attract new projects. Consultants celebrate Johor's emergence as Southeast Asia's data-centre capital. One fundamental question however, is being neglected: Should Malaysia continue approving new data centres when many Malaysians still face concerns over water security, electricity reliability and rising utility costs?

 

Source: https://wikilabs.asia

Before arguing for a moratorium, it is important to establish the scale of Malaysia's data-centre boom and the growing concerns over electricity and water security. Malaysia has emerged as Southeast Asia's fastest-growing data-centre hub, driven largely by demand from global technology companies relocating capacity from Singapore and expanding AI infrastructure. Key figures include:

 

·           Between 2021 and June 2025, the federal government approved 143 data-centre projects with total investments of RM144.4 billion.

·           As of early 2026, Malaysia reportedly had 34 operational data centres and 33 more under development, according to Malaysia Digital Investment Department data.

·           Johor, Selangor and Negeri Sembilan together host around 101 data centres, with Johor accounting for about 72 facilities, making it the country's main data-centre hub.

·           Johor alone had 51 approved projects by late 2025, of which 17 were operational and 11 under construction.

Malaysia's operational data-centre capacity is projected to grow from roughly 1,025 megawatts (MW) at the end of 2025 to more than 2,000 MW by the end of 2026, with an additional 3,500 MW in the pipeline. 

By the end of 2024, 38 projects had already secured electricity supply agreements with a combined maximum demand of 5.9 gigawatts (GW), equivalent to approximately 43% of Tenaga Nasional's contracted capacity. 

Malaysia's National Water Services Commission (SPAN) estimates that 104 data centres could require approximately 876 million litres of water daily for cooling purposes. 

At the same time, Malaysia is already experiencing record electricity demand. Reuters reported in May 2026 that power demand in Peninsular Malaysia rose by 11.5% year-on-year, driven partly by data-centre expansion and extreme heat. Energy analysts expect electricity demand to continue growing by about 4% annually, largely because of data centres.  The federal and state governments should impose a moratorium on approving new data centres until they can guarantee adequate energy and water supplies for citizens and local industries. 

Unlike manufacturing plants that create large numbers of jobs and extensive supply chains, modern hyperscale data centres consume enormous quantities of electricity and water while employing relatively few workers once construction is completed.  This growth is being driven largely by artificial intelligence, cloud computing and the relocation of facilities from Singapore, where land, water and energy constraints have forced policymakers to slow expansion.  

The crucial question is not whether Malaysia can eventually generate more electricity. The question is whether Malaysian households and local industries should compete with foreign-owned data centres for power supply. No government should approve projects that could jeopardise domestic energy security. 

Before a single new data-centre licence is granted, the government should publicly demonstrate:

·                     sufficient reserve electricity margins;

·                     guaranteed domestic supply for households;

·                     no increase in electricity tariffs arising from data-centre demand;

·                     adequate grid infrastructure; and

·                     clear renewable-energy commitments from operators. 

Without such guarantees, citizens are effectively subsidising private digital infrastructure. Should they not pay a higher tariff for both power and water? They (data centres) should subsidise building of new facilities. 

Malaysia is not alone in facing this dilemma. Many governments are beginning to ask whether the economic benefits justify the environmental and infrastructure costs. Malaysia should ask the same questions:

 

·                     What is the real return to society from these projects?

·                     How many permanent jobs do they create?

·                     How much tax revenue do they generate after incentives?

·                     What are the long-term costs to water systems, electricity networks and public infrastructure?

The federal government and state governments should jointly suspend approvals for new data centres until the following conditions are met:

 

·                     Independent assessments confirm adequate long-term electricity supply.

·                     Independent assessments confirm adequate water availability.

·                     Citizens' domestic consumption is guaranteed priority access.

·                     Data-centre operators pay the full environmental and infrastructure costs they impose.

·                     Mandatory renewable-energy targets are enforced.

·                     Full transparency is provided regarding water and electricity consumption.

·                     Highter tariffs for data centres. 

Malaysia should embrace digital development, but not at the expense of its people. Economic growth must serve society, not the other way around. When electricity and water become scarce, the first responsibility of government is to citizens, not foreign investors.  

Reference:

Put Malaysians first: Time to halt new data centres, Kua Kia Soong, MalaysiaNow, 26 June 2026

 

Are Politicians Tearing This Country Apart?

 

PMX recently reminded Malaysians that the ethnic diversity in the country remained one of its greatest strengths and asked Malaysians not to allow racial sentiments propagated by certain leaders to undermine the nation’s strength. But the ordinary rakyat wish to inform that this advice should be directed specifically to politicians, whoever and whichever political party they are from. 

An overnight roadside mechanic widely known as "Abang Minyak Hitam Jalanan," helped fix a stranded motorcycle belonging to a single father, Dicky Lau. And when Dicky couldn't pay the RM145 fee, the kind mechanic let it go as a blessing. That is not an isolated nor a coincidental case. Things like this happen throughout the country daily regardless of time and day. It is just not reported or reported but not as widely as the above case.

 

https://www.wikiimpact.com / The Sun

 On the ground, the everyday reality is one of organic, daily harmony—colleagues eating together at the mamak, neighbours celebrating each other’s festivals, and communities pulling together during floods or crises. This core unity is undeniable. Grassroots unity is highly resilient. Generally, most ordinary Malaysians inherently understand the value of a multiracial society and actively practice mutual respect. 

In contrast, political bickering—whether between competing Malay-based parties fighting for the same voter base or coalitions scapegoating minorities—often overshadows real economic or social issues. Like clockwork, once too frequently, some down and out and mentally ill politician will issue some hate speech to fracture this unity. 

For this small group of politicians, they find it useful to frame issues through narrow ethnic or religious lenses as it is easier for them to mobilize support through fear and communal rallying cries than to compete purely on policy, governance, or economic progress. This small group of politicians consistently manufacture friction meant to create artificial distrust amongst the ordinary rakyat. To them, upliftment of one community must come at the expense of another. 

It is especially during election time that we have extremist views – I will not sit with that particular party or person; or, there is a sudden realisation that garbage must be separated between halal and non-halal; or, we must not hold any celebration that may invoke sensitivities of another group? To secure votes, politicians have no qualms. Once elected, it is about unity, harmony and peace. Thank God for good sense at the grassroot level. 

Reference:

Opinion: It is the politicians that are tearing this country apart, not ordinary Malaysians, FLK, Newswav, 27 June 2026

What Are The 5 Investments Themes That Will Define Malaysia in 2026?

 

Malaysia heads into 2H 2026 with a record RM426.7 bill in approved investments in 2025, a freshly launched 13th Malaysia Plan (13MP) and a government that means business on digital infrastructure and economic transformation. The five investment themes shaping Malaysia in 2026 with an assessment of what the headlines leave out:

 

https://en.wikipedia.org/wiki/Economy_of_Malaysia 

Theme 1: Infrastructure – The execution story 

Malaysia’s 13th Malaysia Plan (13MP) (2026-2030) commits RM430 bill in development expenditure with 53% allocated to the economy. The GEAR-uP programme tasks six core GLICs – including Khazanah Nasional Bhd , the Employees Provident Fund (EPF) and Permodalan Nasional; Bhd (PNB) – to deploy RM120 bil in domestic investments alongside RM61 bil via public-private partnerships. Construction, utilities, transport connectivity and energy transition names are the clear beneficiaries. CIMB Securities, Maybank and RHB have all flagged infrastructure as a multi-year earnings driver with players like Gamuda Bhd, IJM Corp Bhd and YTL Power International Bhd well-positioned across different segments of the pipeline.

 

The Risk? Plans are not projects. Malaysia has a distinguished history of announcing infrastructure mega-projects and revising, deferring or cancelling them. The 13MP allocates ambitiously, hence execution depends on fiscal discipline, project governance and procurement integrity. Investors should track contract awards – not just government budgets – before pricing in earnings. 

 

Theme 2: AI & data centres – Southeast Asia’s best kept secret 

Malaysia captured 32% of Southeast Asia’s AI funding between H2 2024 and H1 2025 — US$759 mil. Microsoft, Google, Amazon Web Services and Nvidia have all made substantial commitments. YTL Power and Nvidia inked a US$2.36 bil AI (artificial intelligence) infrastructure deal in July 2025. Malaysia’s first Nvidia-powered AI data centre in Johor became operational in October 2025. 

The Risk? AI hype cycles are real. The FBM KLCI fell 14.2% in April 2025 when US export controls on AI chips rattled sentiment despite Malaysia’s strong fundamentals. Power supply constraints, water usage concerns around data centres and global tariff volatility can disrupt project timelines significantly. The AI play in Malaysia is real. But investors buying at peak optimism have historically paid for it.

 

Theme 3: REITs – The quiet outperformer 

The KLREIT index rose 8.3% in 2025 versus the FBM KLCI’s 2.3% gain with the fundamentals for 2026 remain constructive. Bank Negara Malaysia’s (BNM) surprise 25bps OPR (overnight policy rate) cut in July 2025 – its first rate cut in five years – improved REIT valuations directly. Maybank projects average REIT dividend yields of 6.1% for 2026. With distribution yields in the 6%-7% range, Malaysian REITs offer what most equity investors are desperately looking for: visible income in an uncertain market. 

The Risk? REIT valuations have already re-rated. Dividend yield spreads over the 10-year MGS (Malaysian Government Securities) have narrowed toward their long-term averages.vIf global interest rates rise again – or if Visit Malaysia 2026 (VM2026) tourism numbers disappoint due to geopolitical tensions and higher airfare, the tailwind reverses quickly. REITs are not bonds. They carry asset-specific, occupancy and interest rate risk that investors should price properly.

 

Theme 4: Tourism – Real catalyst, real ceiling 

VM2026 is not a tagline – it is a government-backed demand catalyst with RM60 mil allocated for events and campaigns, RM10 mil in concert incentives and a formal target of 47 million tourist arrivals. Tourism already contributes over 15% of Malaysia’s GDP (gross domestic product). Johor-based assets benefit additionally from Singaporean cross-border spending and improved connectivity. 

The Risk?  Tourism is acutely sensitive to external shocks – Middle East tensions, flight disruptions or a global growth slowdown can compress arrivals fast. RHB Research cautioned that rising airfares from geopolitical pressures could dampen long-haul travel. VM2026 targets are aspirational. Investors should model downside scenarios, not just the campaign posters.

 

Theme 5: Small-caps – Recovery play or value trap? 

The FBM Small Cap Index fell 11.3% while the FBM Mid 70 fell 9.9% in 2025, dramatically under-performing the FBM KLCI’s near-flat performance. After that kind of drawdown, valuations are trading below long-term averages Small-caps offer recovery potential in 2026 – but the upside will come through careful stock selection, not a broad-based re-rating. 

The Risk? Many Malaysian small-caps small caps a decade of stagnant earnings, margin compression from Chinese and Vietnamese competition and governance gaps that institutional investors have quietly walked away from. 

Valuation discount alone is not a thesis. Without earnings quality, visible cash flow and credible management, cheap can get cheaper. This is a stock-picker’s market, not a rising-tide story.

 

Bottom Line 

Malaysia’s 2026 investment story is compelling – anchored by policy commitment, FDI (foreign direct investment) momentum and a government that has put its balance sheet where its ambitions are. But real problems are execution, red-tape, external developments, margin squeeze and the “fashionable” sector tendency to jump into what’s new and exciting in the market like AI. It was gloves manufacturing in the 80s, golf courses and IPPs in the 90s, dot com companies in the early 2000s, renewables in the 2020s and so forth. But we need the basics revisited – education, infrastructure and connectivity, job creation for Malaysians and a more efficient civil service. 

Reference:

5 Investment themes that will define Malaysia in 2026 – and the risks nobody talks about, Aida Lim Abdullah, Focus Malaysia, 9 June 2026