This article first appeared in The Edge Malaysia Weekly on July 6, 2026 - July 12, 2026
Voters in Johor will go to the polls on July 11, in an election that will see Pakatan Harapan and Barisan Nasional — partners in the current federal government — go head-to-head in all 56 state constituencies as they bid to form the next state government.
The Johor election is widely seen as an early barometer of the public sentiment towards the Madani administration led by Prime Minister Datuk Seri Anwar Ibrahim, who does not rule out the possibility of an early general election.
Investors will also be keeping a close watch on developments in the Middle East following days of renewed tit-for-tat strikes. Last Wednesday, Iran and the US concluded a round of indirect talks in Doha, although there were no signs of meaningful progress towards a lasting resolution.
On the monetary front, Bank Negara Malaysia is scheduled to announce its Overnight Policy Rate decision on Thursday following the Monetary Policy Committee meeting. Economists generally expect the key interest rate to remain unchanged at 2.75%.
UOB Global Economics and Markets Research expects the central bank to remain on hold, noting that core inflation continues to ease — indicating softer domestic demand — while headline inflation remains manageable supported by ongoing subsidies and lower global energy prices, contingent on easing oil supply security risks.
Ahead of the policy announcement, the central bank will release Malaysia’s international reserves position as at June 30 on Tuesday. International reserves slipped marginally to US$130.5 billion (RM526.9 billion) as at June 15.
Meanwhile, the Department of Statistics Malaysia is scheduled to release the May Industrial Production Index (IPI) and manufacturing statistics on Thursday. April’s IPI jumped 8.2% from a year ago, on the back of the rise in manufacturing activities and electricity generation.
This will be followed by the release of the labour force statistics and wholesale and retail trade data on Friday.
On Tuesday, the US Trade Representative is set to hear the proposal to impose an additional import duty from several countries, including Malaysia, over forced labour allegations. Recall that on June 2, the US proposed a 10% additional duty on imports from Malaysia, in a claim that Malaysia has failed to impose and effectively enforce a prohibition on imports made with forced labour.
Elsewhere in the region, Taiwan’s trade data, due to be released on Wednesday, will be closely watched amid the artificial intelligence supercycle. Bloomberg estimates show that its June exports are projected to expand 46.6% year on year compared with 51.7% in May, with an expected trade surplus of US$18.28 billion in June against US$17.91 billion in May.
In the US, the Federal Reserve will release its June Federal Open Market Committee’s (FOMC) minutes on Thursday. UOB says the market will look for insights on the division among FOMC participants with regard to the outlook of the Fed’s policy path, and whether the minutes will strike a more hawkish tone with the emphasis on concerns about above-target inflation, and officials’ willingness to keep enough policy room to tighten. This comes as a lukewarm US jobs report last week has softened expectations for an imminent rate hike from the Fed.
On the same day, the European Central Bank will publish the account of its June meeting, with the focus likely on how the easing of energy prices has dampened the need for further ECB policy tightening.
On the local corporate front, vending massage chair operator RNG Tech Bhd (KL:RESTNGO) is set to be listed on the ACE Market on Tuesday after its initial public offering was oversubscribed by 7.77 times. This will be followed by the listing of digital transformation solutions provider SRKK AI Bhd (KL:SRKKAI) on Thursday. Its public portion shares were oversubscribed by a whopping 312.3 times.
Companies holding their annual general meetings this week include JKG Land Bhd (KL:JKGLAND) and Quality Concrete Holdings Bhd (KL:QUALITY) on Wednesday, as well as KYM Holdings Bhd (KL:KYM) on Thursday. Talam Transform Bhd’s (KL:TALAMT) extraordinary general meeting (EGM) on Friday will see three shareholders — Ang Lam Poah (who is the CEO of JAKS Resources Bhd [KL:JAKS]), Loo Leong Fatt and Loo Foong Luan — seek to remove the property developer’s existing board and appoint new directors.
Printed circuit board manufacturer PNE PCB Bhd (KL:PNEPCB) will obtain shareholder approval at its EGM on Tuesday for its proposed diversification into the automotive retailing business and a RM40 million capital reduction, among others.
In the courts, former finance minister Datuk Seri Tengku Zafrul Abdul Aziz is expected to be the next prosecution witness when former prime minister Tan Sri Muhyiddin Yassin’s abuse of power trial over the Jana Wibawa project resumes at the Kuala Lumpur High Court on Monday.
Muhyiddin faces a total of seven charges, including four counts of abusing his position to obtain RM225.3 million in bribes linked to the project. The remaining three charges relate to allegedly receiving RM200 million in proceeds from unlawful activities.
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