TL;DR
- PM slams PN election director Sanusi Nor for suggesting non-Malays could return to ancestral countries; Anwar calls such rhetoric divisive and reaffirms commitment to unity.
- Malaysia's economy surged 5.8% year-on-year in Q2 2026, driven by manufacturing and mining strength; IMD competitiveness ranking climbs to 15th globally.
- Ten semiconductor startups chosen for inaugural SemiconStart Malaysia programme with RM10 million backing and year-long incubation from July 2026.
- Malaysia poised to announce hosting of Formula One race in October at Sepang as replacement Bahrain Grand Prix, ending nine-year absence from F1 calendar.
Politics and policy
Prime Minister Anwar Ibrahim has condemned PN election director Sanusi Nor for suggesting non-Malays could "fall back" to ancestral countries, framing the remark as divisive and out of step with Malaysia's constitutional values. Anwar reasserted that Chinese and Indian communities "respect the constitution and are loyal citizens," pivoting the campaign narrative to attack PN credibility on unity grounds three weeks before the Negeri Sembilan polls (via Free Malaysia Today).
Negeri Sembilan's campaign is running in overdrive as early voting looms. The August 1 contest has crystallised around cost of living and economic anxiety, with all three main coalitions—Pakatan Harapan, Barisan Nasional and Perikatan Nasional—in genuine competition for the 36 seats after last month's bruising Johor loss dimmed Anwar's political calculus (via The Star).
Business and economy
Malaysia's economy hit its fastest pace in three quarters, expanding 5.8% year-on-year in Q2 2026 as manufacturing jumped 7.5% and mining roared back with 10.2% growth after contracting in Q1. The broad-based gains pushed first-half growth to 5.6%, double the 4.5% from a year earlier, signalling that the data centre boom and tech cycle upswing are delivering tangible gains (via The Star).
Competitiveness rankings are catching up. Malaysia jumped eight places to 15th in the 2026 International Institute for Management Development (IMD) World Competitiveness Ranking among 70 economies—its strongest performance in years and second-best in Southeast Asia after Singapore, ranking fourth globally in economic performance (via The Star).
Technology and industry
Ten semiconductor startups have been selected for Malaysia's inaugural SemiconStart programme, a year-long venture-building initiative running from July 2026 to June 2027 with RM10 million (about US$2.4 million) in initial backing and another RM10 million earmarked for the next cohort. Selected startups get up to RM1 million in incubation support, mentorship, and access to prototyping tools, designed to produce globally competitive chip firms (via New Straits Times).
Society
Orang Asli voters in Negeri Sembilan are becoming a contested bloc as candidates court the small but pivotal indigenous community in mixed constituencies, particularly Chennah where Orang Asli make up 5.9% of the electorate. Barisan's Siow Kong Choon is campaigning in Orang Asli villages, seeking to address longstanding grievances over housing, education and customary land recognition (via The Star).
Sports
Malaysia is poised to announce that Sepang will host Formula One in October, ending a nine-year hiatus from the F1 calendar. The race would slot in on October 4 as a replacement for the Bahrain Grand Prix—held in Malaysia but under the Bahrain name—sandwiched between Azerbaijan on September 26 and Singapore on October 11, marking the circuit's return since 2017 (via The Star).