Merdeka!

 

There are several blessings as we count the days to Merdeka celebration. But we do have many areas that look like gaps between reality and vision; promise and performance; and politicians and ordinary folks! 

There are several “drags” and “accelerators” in a drive to unity. Many countries face similar issues, even the United States. The game is always to minimise the drags and enhance the accelerators. 

 

Source: https://commons.wikimedia.org

Unity is not something you can manufacture – it is a feeling; a commitment; a bond; and love for a place no matter what we face – economic, political or foreign interference. It has to be lead by the leadership in power; by the people who vote them in; and, the private/corporate sector operating in a country. 

I don’t have solution for all facets but in a small way, the private sector or corporates could do the following:

 

1.      Have Mesra sessions weekly in a corporate setting. Once a week at lunch time, the company organises a luncheon for its staff who will listen to a facilitator (or via video) on topics that relate to unity including:

a)                       Rukun Negara;

b)                       Cultures;

c)                       Festivals;

d)                       Affordability etc. 

The expositor uses 20-25 minutes to convey the message while the staff have a packaged lunch. Following that, the meeting breaks into groups of 8-10 persons per group to discuss the message and arrive at action steps, if feasible. These weekly meetings provide an avenue for bonding and harmony. Details could be discussed;

 

2.       2.  Have celebration awards for companies that encourage and promote unity in their places of work.   Individuals too could be given awards.

For corporates to subscribe to these ideas, incentives like partial reimbursement and/or tax relief will be helpful. 

I cannot say that the above will solve all our problems on unity but are small steps toward greater interaction and dialogue. Meanwhile, let us celebrate each other and enjoy the diversity of this land. Merdeka!

Currencies Performance (June 2026)

 

 

Currency markets have produced some striking winners and losers over the past year, with gains and declines approaching 20% against the U.S. dollar.

 

Highlighting sharp economic divides between regions, a new Deutsche Bank ranking tracks how 36 global currencies performed against the U.S. dollar over the year ending June 30, 2026. Colombia led the pack as the strongest performer, soaring 19.2%. Latin America captured both ends of the spectrum, with a massive 38.1 percentage-point performance gap separating Colombia from Argentina. On the flip side, Asian currencies suffered heavy losses due to escalating energy import expenses, filling six of the eight lowest spots. Malaysian ringgit, however, showed a positive 3.1% appreciation to the dollar.

Reference: Post by Stanley Epstein on LinkedIn

Too Many GLCs?

 

Malaysia has over 1800 GLCs, many of which are subsidiaries of statutory bodies and are not under the direct management of MOF, nor are their policy objectives well defined. It is this universe of GLCs which needs a review and stronger governance law, as their proliferation presents a significant fiscal risk, and takes up talent and resources which may be better utilised by SMEs that are seeking to grow in the private sector. This large network of government-linked companies (GLCs) is built on the premise that state ownership can accelerate development, protect strategic industries and generate returns for the public. 

There is merit to some of these arguments. Many GLCs are profitable, professionally managed and economically important. Investments in major companies have also generated significant dividends and capital gains for government institutions over the years. But the profitability of selected companies should not prevent Malaysia from confronting a more fundamental question.

 

Source: https://ms.wikipedia.org 

Why does the government need to own so many businesses in the first place? There is the crowding-out effect, government procurements go to GLCs, stunted growth of GLCs? How many are competitive in overseas markets? 

Several years ago, a-research led by Prof Edmund Terence Gomez showed that just seven federal government-linked investment companies or GLICs controlled over 68,000 companies directly and indirectly through minority interests. Why should the government continue to wield substantial influence over mature commercial institutions such as Malayan Banking Bhd and CIMB Group Holdings Bhd when these companies can stand on their own with greater private ownership?

Meanwhile, repeated episodes of financial mismanagement involving government-owned entities have shown what can happen when political influence, commercial decision-making and public money become too closely connected. The ongoing controversy surrounding Tabung Haji is a perfect example. 

Political appointments can weaken boards. Commercial decisions can be influenced by objectives that have little to do with profitability. Acquisitions can proceed despite questionable economics, while companies may accumulate debt because creditors assume that the government will eventually intervene. When problems become serious, taxpayers frequently bear at least part of the financial consequences. That’s called moral hazard. 

This creates a governance problem that cannot be solved merely by replacing directors after losses have occurred. Have you noticed no one is charged for misdemeanours? We have an Institute of Directors and courses for directors, but no one is culpable for mistakes. 

Divestments should therefore become a central part of GLC reform, not simply an occasional exercise conducted when the government needs revenue. There are companies where government ownership remains commercially lucrative or strategically justified. Certain infrastructure, utilities and businesses involving national security or essential public services may require substantial government participation. But substantial government ownership should become the exception rather than the default. A useful starting point would be to establish an ownership ceiling for government stakes in companies operating in competitive industries. 

Instead of allowing ministries, agencies or state governments to retain controlling interests indefinitely, Malaysia could consider limiting government ownership to perhaps 20% in companies where there is no compelling strategic reason for control. The government could continue benefitting from dividends and capital appreciation without necessarily controlling appointments, procurement, management strategy and corporate expenditure. 

The same reforms must apply to state governments. Discussion about GLC reforms in Malaysia tends to focus heavily on federal institutions, yet states have created extensive networks of corporations, subsidiaries, investment arms and development companies of their own. Some perform legitimate economic functions. Others operate in sectors where private companies are already capable of competing. Every additional state-owned company introduces another layer of directors, senior management, subsidiaries, procurement processes, related-party transactions and financial exposure requiring effective oversight. The issue becomes particularly important when political appointments extend into these companies. A board seat in a government company should never be treated as compensation for political service. Directors should be appointed because they possess the financial, industry, legal or operational expertise required to supervise a commercial organisation. 

Management should similarly be evaluated against measurable financial and operational targets. Malaysia cannot promote a culture of excellence while maintaining a system in which political access can influence appointments. Reforming GLCs therefore requires more than divestment. A proper monitoring framework should first identify every significant company owned directly or indirectly by federal and state governments. Their purpose should then be reviewed. Companies performing functions that can be carried out competitively by the private sector should face a clear presumption towards divestment. 

Companies serving genuine public policy objectives should have those objectives explicitly stated and their costs transparently accounted for. Commercial and social objectives should not be mixed without proper disclosure. If it is not commercially viable, then its social objectives is going to “drain” resources and its imminent closure. 

If a company is required to provide a public service below commercial returns, the cost should be clearly recognised rather than concealed within its corporate accounts. When state-controlled companies compete extensively across property, construction, financial services, plantations, infrastructure, hospitality and other sectors, private businesses may find themselves competing against shareholders with regulatory influence, cheaper access to financing or an implicit perception of government support. Reducing unnecessary state ownership can strengthen competition and expand opportunities for private capital. 

Malaysia does not need to abandon GLCs, but it needs to define their limits. But ownership should not automatically mean control, and control should not become permanent simply because it has existed for decades. The next stage of GLC reform should therefore ask a more difficult question than how these companies can be managed better: how many of them do the government really need to own at all? In addition, there are GLCs who refuse to divest small profitable subsidiaries to a primary bumiputra intrapreneur. Rationale is we need these subsidiaries for our overall profit! This is why bumiputra entrepreneurs are not emerging when GLCs shelter them with wrong motives. It is time to let go and move on! 

It needs a Commission to review every one of them and Prof. Terrence Gomez should chair such a commission which not only reviews but recommends next steps. Is Madani open to that? 

References:

Malaysia must shrink its GLCs, Ganeshwaran Kana, The Star, 15 August 2026 

Post by Alissa Rode on LinkedIn

 

 

Has the PM’s Job Changed?

 

Some people may keep asking why PMX looks strong on the world stage but weak at home. Some blame his personality. Some blame his choices. But if we zoom out, is there something bigger? 

There are those who say Malaysia’s political system has quietly transformed. This isn’t about PMX but the office itself. The old PM was a commander. The new PM is a coordinator.

 

Source: https://en.wikipedia.org

For decades, Malaysian prime ministers ruled with supermajorities. They could fire ministers, push reforms, and make decisions without worrying about their government collapsing before lunchtime. They had authority because the numbers were stable. Some say that era ended in 2018. The moment voters broke the old one-party dominance; the country entered a new phase. A coalition-heavy era where every government is stitched together like a patchwork quilt, full of different colours, textures, and agendas. And the PM became not a leader who commands, but a negotiator who survives. Is it impossible to be a strong PM in Malaysia today? 

The reality now may be: 

-One partner controls Borneo support

-Another controls Malay grassroots

-Another controls urban voters

-Another controls the budget levers

-Another holds the keys to legal outcomes 

Every block has leverage. Every block has demands. Every block can threaten to walk. 

In this environment, even a brilliant leader would struggle. Not because he is weak, but because the structure forces weakness. It’s like asking someone to drive a car with four different steering wheels. You can’t move forward without someone pulling left or right. 

When PMX talks in overseas forums, he sounds clear and decisive. Why? Because no coalition partner can interrupt him at the UN and say, “don’t say that”. No one can veto his message on Palestine, Islam, or ASEAN strategy. 

At home, every sentence has a political price. Every policy has a vote-buying cost. Every reform must pass through a dozen filters. The contrast isn’t about courage. It’s about freedom. 

The apologists will say what used to be a leadership role has now become a balancing act: 

-Keep Borneo happy

-Keep UMNO calm

-Keep DAP loyal

-Keep PKR stable

-Keep the opposition from poaching MPs

-Keep the economy moving

-Keep public trust alive 

People want bold reforms, tough decisions, and long-term plans. But the system rewards caution, compromise, and survival mode. 

So, what does this mean for the future? If Malaysians want decisive leadership again, then we must choose one of two paths: 

-Give a single coalition a clear majority; or

-accept that negotiation is now the default style of governance. 

If Malaysia remains fragmented, the PM will never be the main driver. He will be the one holding the steering wheel gently while every partner tugs from the side. And as some say, unless the political structure changes with it, no leader can escape the tightrope. 

Having said all that, it is better I think for a “weak” PM to challenge the “deep state”, the elites and the entrenched political warlords. Why? It is better to be a lion for a day than a lamb for a thousand years (an Italian proverb). Then again, what’s the point of an Election Manifesto if you can’t fulfil it? People are not stupid. They can see if “kata dikotakan”. And it is for the incumbent to show courage in this political malaise! 

(Adapted from a blog by an unknown author)

Sovereign Wealth Funds Manage USD 15.8 Trillion in Assets

 

The World’s Largest Sovereign Wealth Funds now manage $15.8 Trillion in assets. The latest ranking of the Top 50 Sovereign Wealth Funds highlights where some of the world’s largest pools of capital are managed. From Norway’s Norges Bank Investment Management ($2.06T) and China’s SAFE IC ($2.05T) to Saudi Arabia’s Public Investment Fund (PIF) ($1.21T) and Abu Dhabi Investment Authority ($1.19T), these institutions continue to play a major role in shaping global investments. For founders and investment professionals, understanding these organizations is valuable—not because they invest directly in every startup, but because they influence venture capital, private equity, infrastructure, healthcare, AI, energy, and emerging technologies through their investment strategies. If you’re raising capital, researching institutional investors, or building strategic fundraising campaigns, knowing the right capital sources is just as important as having a great pitch. 

 

 

Reference

Sovereign Wealth Funds Manage $15.8 Trillion, Investor Lead Hub on LinkedIn

Ageing: Alone and Silent!

 

After retiring, Joseph’s 85-year-old father settled into a routine of morning swims and hours spent watching television. His father later died by suicide, becoming part of a group that experts say needs greater attention: older men. 

Singapore’s latest suicide statistics showed that men accounted for three in four suicides among people aged 60 and above in 2024. Of the 120 people in that age group who died by suicide, 90 were men and 30 were women. Across all age groups, men accounted for nearly two-thirds of the 441 suicide deaths recorded that year. Experts said older men may become vulnerable through a combination of retirement, declining health, shrinking social circles and a reluctance to seek help.

 

Source: https://en.wikipedia.org

For many men, work is closely tied to identity, routine and their role as family providers. Retirement can therefore mean more than losing a job, as some men may also lose their sense of purpose and value within the family. 

Declining health can add to the strain as chronic illness, pain, disability and reduced mobility may lead to a loss of independence and a diminished sense of purpose. Chronic pain, disability, frailty, sensory impairment and progressive illnesses can lead to loss of independence, social isolation and a diminished sense of purpose. 

Experts also warned that living with family does not necessarily protect an older person from loneliness. Joseph’s father lived with him after retirement but rarely socialised outside his daily routine. He declined invitations to join activities at a community centre despite Joseph’s efforts to help him meet new people. 

Experts said older men may also be less likely to speak openly about emotional distress because many grew up with expectations that discouraged vulnerability. Depression may instead appear through poor sleep, loss of appetite, low energy, forgetfulness, physical complaints or a sudden change in behaviour. Families should take seriously comments such as “I’m a burden” or “There is no point anymore”, as well as signs including social withdrawal, neglect of personal care and losing interest in familiar activities. 

Experts said programmes built around practical activities, hobbies and shared skills may help older men connect more naturally than traditional support groups. Activities such as carpentry, bicycle repair, volunteering and mentoring can provide opportunities for older men to build friendships while retaining a sense of purpose. 

Singapore’s experience may also carry broader relevance as neighbouring Malaysia faces its own rapidly ageing population. The Department of Statistics Malaysia said the proportion of Malaysians aged 65 and above rose to 8.4 per cent this year from 8.0 per cent last year. Twelve Malaysian states have reached ageing status after the proportion of residents aged 65 and above exceeded seven per cent of their populations. Perak recorded the country’s highest proportion of older persons at 10.8 per cent, followed by Sarawak and Kedah at 9.7 per cent each, while Penang and Perlis both stood at 8.8 per cent. The government has designated ageing as a key pillar under the 13th Malaysia Plan and is identifying a pilot project to address the fiscal, care and wider challenges arising from an older population. 

Meanwhile, many old folks are left in care homes (or families) with little desire to find a new purpose in life. The ones that have planned retirement may have launched a second career or are learning a new language; or mastering a musical instrument; or volunteering in church or other para organisations. They live longer and are less likely to be despondent. Watching television and sleeping will lead to dementia and a loss of quality of life and a burden to caregivers. May we learn to be useful whatever our age. 

Reference:

Ageing, alone and silent: Why men 60 and above are Singapore's most at-risk group, Malay Mail, 2 August 2026

 

Understanding Malaysia's GLICs and GLCs

 

Switch on a light. Browse the internet. Fill up your car. Catch a train. Fly overseas. Save for retirement. Chances are you've interacted with Malaysia's Government-Linked Investment Companies (GLICs) and Government-Linked Companies (GLCs) several times before lunchtime. The terms GLIC and GLC are often used interchangeably but they are not the same. A GLIC is an investment institution that manages public, member or institutional funds. Malaysia's six major Federal GLICs are Khazanah Nasional, PNB, EPF (KWSP), LTAT, Tabung Haji and KWAP. A GLC is an operating company that delivers products and services across sectors such as energy, banking, telecommunications, transportation, aviation, infrastructure and agribusiness.

One of the most misunderstood aspects of Malaysia's corporate landscape is what actually qualifies as a GLC. There is no single official ownership percentage that automatically defines a company as a GLC. Some are directly owned by the Government of Malaysia while others are linked through one or more Federal GLICs with different levels of ownership, control and strategic influence. Whether through electricity, fuel, broadband, banking, public transport, airports or retirement savings, GLICs and GLCs play an important role in the daily lives of millions of Malaysians.

Beyond providing essential services, they support strategic industries, create employment, invest for long-term growth and contribute to Malaysia's economic development. As ownership structures and corporate relationships evolve over time, certain classifications may also change. For clarity and readability, the attached infographic (from an AI post) presents representative companies across key sectors within Malaysia's Federal GLIC ecosystem. It is intended as an educational overview and should not be interpreted as an exhaustive list of every government-linked company.

The key issue is accountability. There is no central agency to monitor their activities. In fact, the Government may not know the full number of GLCs in operation. And hopefully we don’t have scandals like 1 MDB in the near future.

 

Reference:

Understanding Malaysia's GLICs and GLCs on LinkedIn. This title was summarized by AI from the post.

Empowering Food Security!

 

A robust food system is critical for safeguarding national food security and public health (nutrition), improving livelihoods (farm income and price affordability), maintaining economic and social stability, and ensuring environmental sustainability. 

High reliance on imports (at least 60%) of its staple food (such as rice, wheat, dairy, and meat), the food price volatility, rising production costs, vulnerability to climate anomalies, the food supply chain disruptions and changing consumer demands and population growth place severe strain on global food systems. 

Source: https://www.wikiimpact.com

Modernising production systems, increasing self-sufficiency targets, and adopting new agritech to secure food supplies are key focus areas. Despite the government’s policy interventions through the National Agrofood Policy 2021-2030 (NAP 2.0) and the National Food Security Policy 2030 to transform the agrifood sector into a modern, high-value, tech-driven industry, the sector’s performance continues to remain suboptimal, resulting in persistent food import dependencies and vulnerabilities in national food security. 

Between 2021 and 2025, the broader agrifood sector, comprising livestock, marine fishing and aquaculture, as well as the “other agriculture” subsector (including paddy, vegetables, fruits, food crops and others), grew by a slower compound annual growth rate (CAGR) of 2.2% per annum, accounting for 3.5% of Malaysia’s gross domestic product (in 2025). Food imports had grown by a CAGR of 10.3% per annum in 2020 to 2025, to reach RM92.8bil in 2025 (an average of RM69.8bil per year in 2019 to 2024), making up 6.4% of total gross imports. The food deficit has widened progressively to incur the largest deficit of RM39.3bil in 2024 compared to a deficit of RM17.4bil in 2019 before registering a lower deficit of RM33.9bil in 2025. 

In 2024, Malaysia’s Self-Sufficiency Ratio has remained critically low for several key food items, including mutton, beef, ginger, mango, mushroom, chilli, and round cabbage. Meanwhile, apple, onion, and garlic continued to be largely imported due to cost constraints and agroecological factors. About 70% of Malaysia’s mutton supply is imported from Australia, while mango, coconut and beef are mainly imported from Thailand, Indonesia and India, respectively. 

Malaysia’s agrifood sector is constrained by both a limited availability of arable land and inefficient or unequal distribution of land among different commodities. While the country is resource-rich, the sector faces a structural imbalance where nearly 87% of agricultural land is used for commodity crops (like palm oil and rubber), leaving food crops lagging. Overall, the agrifood-related crops (excluding paddy and industrial crops such as coconut) constituted less than 5% of total planted areas. While poor soil quality and environmental sensitivities restrict agricultural developments, approximately 16% of Malaysia’s existing gazetted agricultural land is currently sitting idle. The Department of Agriculture reported that in 2019, there were 90,578 ha of abandoned land in Peninsular Malaysia, marking significant underutilisation of agricultural resources and a missed opportunity for food production. 

The establishment of Permanent Food Production Parks (TKPM) serves as a dedicated permanent food production zone. As at early December 2025, a total of 76 TKPM were established, with a total area of 10,568 ha. 

The government-linked companies (GLCs) with underutilised land assets should be encouraged to play a more active role in supporting the national food security objective by leasing suitable land to the agrifood growers and industry players. These public-private partnerships can help unlock idle or underutilised land for productive use. This whole idea of food security is not new. There have been several initiatives to improve food security but constraints of resources and political will usually hamper its implementation. 

Reference:

Empowering food security for tomorrow, Lee Heng Guie, The Star, 30 July 2026

 

 

Free Drama on Netflix?

 

(This article is an adaptation from a LinkedIn post by Sukhdev Singh, former Deputy Governor of Bank Negara Malaysia) 

Malaysians don't need Netflix because our politicians are such accomplished actors. They provide us with a constant stream of real-life drama. Tracking latest plots is a full-time job.  Take, for instance, the medical phenomenon that seems to afflict our political elite. It’s called "Subpoena-Induced Cardiac Arrest Syndrome” (“SICA”). SICA remains perfectly dormant while the patient is allegedly siphoning off public funds and enjoying a luxury lifestyle. It flares up just hours before a judge is due to hear criminal charges. Medical researchers remain fascinated. 

The syndrome has never been known to strike during election campaigns, overseas holidays or lavish dinners. However, sight of a courtroom can apparently trigger a full-scale physiological collapse. Fortunately, recovery is often just as miraculous once proceedings have been adjourned. It is truly a testament to the resilience of our elite that they can endure years of alleged money laundering and asset-declaration scandals without much headache. But the mention of a court date is enough to send them straight to the ICU of a private hospital or IJN.

For many of us, a medical certificate is merely a request for consideration. But for the political elite, it functions more like a "Get Out of Jail Free" card printed on premium hospital letterhead. The script has become so predictable that whenever a prominent politician is due in court, social media no longer speculates about the verdict. Instead, people wonder which private hospital the accused will check into. Humour has become our national coping mechanism. The alternative is despair. 

We are told that justice is blind. In Malaysia, however, it seems to possess remarkably good eyesight. It somehow never mistakes a Tan Sri or Datuk Seri for an ordinary taxpayer. Perhaps it is time to relocate courtrooms into private hospital VIP wards. It would save everyone the ambulance ride, the adjournment applications, and the elaborate choreography. We could become the first country where the Intensive Care Unit and the High Court share the same corridor.

 

 

Reference:

Malaysian Politicians Provide Free Drama on Netflix, Sukudhew (Sukhdave) Singh,

This title was summarized by AI from the post.

Pembinaan PFI: Financial “Engineering” or Financial Disaster?

 

The Malaysian Anti-Corruption Commission (MACC) is currently investigating Pembinaan PFI Sdn Bhd (“PFI”). The MACC investigation raises the spectre of another possible scandal blowing up in the aftermath of Barisan Nasional’s fall from power. At RM50.2 billion, PFI’s borrowings are on the same scale as 1MDB’s debt. It amounts to a quarter of the federal government’s committed government guarantees, which came to RM199.1 billion as announced on May 24. And further investigation may shed more light on what a strange and convoluted scheme is already to dip into local pension funds. 

The Employees Provident Fund (EPF) confirmed it lent RM21.16 billion to PFI and that all repayments are currently in order. While EPF’s lending to PFI is not a secret, its statement was understood to be a response to a renewed wave of viral WhatsApp messages alleging impropriety in its involvement with PFI. 

Source: https://en.wikipedia.org

The latest available data shows that PFI has an unsatisfied RM19.48 billion charge on its assets in favour of EPF, created on Aug 22, 2014. Another known lender to PFI is Retirement Fund Inc (KWAP), although the latest quantum was unclear at the time of writing. PFI is wholly owned by the Minister of Finance (MOF) Inc, the finance ministry’s corporate vehicle. 

It was essentially set up to borrow money on behalf of the federal government— that is, without adding to the government’s official debt figures. This is done by disguising loan repayments for the debt as “rental payments” from the Treasury to PFI, which was done via a leaseback arrangement involving government land. This way, the repayments are classified as operating expenditure in the government’s accounts, rather than debt servicing. 

On Aug 22, 2007, PFI inked a term loan facility from EPF for RM20 billion. The facility was for a 60-month period, and the interest rate was the prevailing rate of Malaysian Government Securities (MGS) plus 0.5% per annum, calculated on a six-monthly basis. A day earlier, PFI and the Federal Lands Commissioner (FLC) — which legally owns land on behalf of the federal government — had signed an agreement whereby PFI would lease 186 parcels of government land for a lump sum of RM20 billion. 

To create cash flow so it can repay the EPF term loan, PFI then proceeded to sublease the 186 land parcels back to the federal government for a total of RM29.18 billion, spread over 30 twice-yearly payments between 2013 and 2027. 

The rationale for the PFI arrangement is that it enables the government to raise additional money to fund its development programme. But this is done at the cost of kicking the repayments — with interest — down the road, with the debt pile now snowballing to RM50.2 billion. The scheme’s origins trace back to the time of then prime minister Tun Abdullah Ahmad Badawi, who had set out to execute infrastructure projects with the private finance initiative (PFI) model under the Ninth Malaysia Plan (9MP). Some RM20 billion was earmarked for PFI projects in 9MP. A private finance initiative (PFI) is basically a concessional procurement method whereby the government outsources the construction of public infrastructure to private contractors. In exchange for a concession to operate and maintain the infrastructure, the PFI concept means the private contractor would have to raise its own funding to complete the project. 

When will these schemes stop? Never, if you have politicians who have the same stripes as Najib. They are still there and surprisingly voters still vote them in! If you want a country to progress and have accountability in the system, then you need to come clean on many others like PFI. It beats me why PMX has not gone after those responsible and strengthen his position for another term? 

Reference:

Cover Story: A ‘secret’ government debt that has ballooned to RM50 billion, Khairie Hisyam Aliman / theedgemarkets.com, 26 Jul 2018

When Poverty Meets Pregnancy…!

 

At around 20 to 30 years, many young adults are just beginning to find their footing in life. Some are fresh graduates embarking on their first careers. Others are saving for a home, pursuing higher education or planning for marriage.  

But a recent viral video on X paints a different reality. In the clip, a young woman is seen sitting along a public walkway with a baby in her arms, selling small items to earn a living. When approached by a concerned passer-by, she is asked about her age. Her answer is just 23. What comes next is even more heartbreaking. She reveals that she already has three children. At an age when many are still trying to establish their own lives, she is already struggling to provide for three young children. Netizens who watched the video were equally touched by it.

 

Source: Wiki Impact

At just 23, this young mother has become the face of a struggle shared by many whose stories never make it onto social media. Her plight should not merely leave viewers feeling sorry for her. Instead, it should remind others that compassion is most meaningful when it is matched by understanding. 

Note also that the measure of a caring society lies not in how loudly it reacts to viral videos, but in how quietly it supports those who are struggling long after the cameras are gone. 

There are many others who suffer from mental issues, homelessness, drug dependence, insufficient income or wealth. We may not be able to solve all their problems. But surely Madani can devise a scheme for NGOs, voluntary organisations, churches and others to help directly in the areas they operate? It requires leadership and coordination. Otherwise, we must take on the responsibility to discern and contribute to the needs of the less fortunate without the government (of compassion)! 

Reference:

When poverty meets pregnancy, expect a tale of hardship and a stark lesson in family planning, CS Ming, Focus Malaysia, 29 July 2026

 

High Income Status: Chasing a Moving Goal?

 

Based on the latest data published by the World Bank using the Atlas method, Malaysia’s 2025 gross national income (GNI) per capita reached US$12,380. Although Malaysia’s GNI per capita improved by 6.5% last year, it fell short of the 2025 high-income nation status threshold of US$14,375 per capita by a wide margin, which is the threshold used by the World Bank based on 2025 GNI per capita for the financial year July 2026 to end June 2027. 

Thus, our per capita GNI in US dollar terms will still need to grow by 16.1% before we can be classified as a high-income nation and join 87 other nations that have already achieved the status based on the latest classification. As the high-income status threshold seems to increase by a few percent every year, our total GNI per capita will need to improve at a faster pace. As the measurement is in US dollar terms, the other variable that will have an impact on our GNI per capita is the exchange rate itself. For example, Malaysia’s GNI per capita in US dollar terms was also helped by the ringgit’s appreciation as our GNI in local currency terms rose by 4.3% year-on-year to RM1.95 trillion.

 

Source: https://www.wikihow.com

Malaysia’s GNI per capita has been rising at a compounded annual growth rate (CAGR) of 4.1% per annum over the past five years. Malaysia is on the right track in moving up the income threshold, thanks to concerted efforts in raising income and salaries of households and employees. In fact, over the past 25 years, Malaysia’s per capita income grew at a strong 5.2% CAGR, surpassing the 3.9% CAGR in the global high-income threshold. This allowed Malaysia to close the gap between our per capita income and the global threshold for a high-income nation. 

Malaysia came close to surpassing the global threshold for high-income status in 2014, falling just short by US$119 of the World Bank’s threshold of US$10,959 in per capita income. 2014 was also a period when the ringgit was stronger, allowing our per capita income in US dollar terms to grow much faster due to currency gains. 

For context and understanding, the GNI measurement adopted by the World Bank’s Atlas method is based on a three-year average exchange rate, adjusted for inflation based on a country’s inflation rate vis-a-vis developed economies. Hence, the calculated 2025 GNI per capita of US$12,380 is based on a three-year average US dollar-ringgit exchange rate of 4.4727 to arrive at RM58,524 per capita, which is higher than the reported GNI in ringgit terms for 2025 at RM57,200. The difference of 2.3% is likely related to the inflation-adjusted Atlas method used by the World Bank. 

Malaysia’s GNI per capita in US dollar terms would be much higher at US$13,665 if the average US dollar-ringgit exchange rate of 4.2829 for 2025 was used. Based on the current exchange rate, the GNI per capita for last year would have been at US$14,307 – just a whisker away from the high-income threshold of US$14,375. 

Malaysia’s journey towards achieving global recognition as a high-income nation has been a long one. We first entered the current income classification of upper middle-income economy in 1994 and have been stuck there for more than three decades. As the per capita income measurement is in US dollars, the average three-year exchange rate between the dollar and ringgit also makes a significant impact on our per capita income. 

Even assuming a modest 3% growth in the high-income per capita threshold and if Malaysia’s GNI per capita in US dollar terms grows by 5% per annum, it will take us another eight years before we are able to surpass the global threshold. Hence, even on an optimistic assumption, Malaysia will remain stuck in the upper middle-income category up to 2032 and only achieve high-income status by 2033. 

Achieving the high-income status can be said to mean that we have finally “arrived” after decades of being stuck in the upper middle-income category. The reality is that Malaysians remain poor as the median salary is at just RM3,027 per month (as of March 2026) or RM36,324 per year, which is RM20,876 or 36.5% below the GNI per capita level. Over 85% of the Malaysian labour force do not earn enough to fall within the income tax paying bracket. 

Malaysia’s gross domestic product (GDP), when measured on an income basis, shows compensation of employees (CE) remains low at just 33.9%, a marginal 0.3 percentage point increase from 33.6% recorded in 2024. (The target is to raise income share to 40% by 2030). For advanced economies, this accounts for 50% to 60% of GDP. 

Although CE grew by 5.8% in 2025, outpacing the GDP growth of 4.8% at current prices, the growth in CE has not been strong enough. At the current pace of increase, Malaysia’s target to hit CE of 40% by 2030 will be hard to achieve if real wage reforms are not carried out.

The other is income inequality. With a Gini coefficient of 0.39 (in 2024) we need to do much better in income redistribution. Most developed economies show disposable Gini scores of between 0.25 and 0.38. The average for the entire world is between 0.61 and 0.68. So, in that sense, we are better off! 

References:

The long climb to high income, Pankaj C. Kumar, The Star, 01 Aug 2026 

For most, EPF savings may no longer by enough, Alysha Edward, FMT, 3 February 2026