Daily Briefing — 25 September 2026

The day in brief

Malaysia’s AI-driven growth outlook dominates today’s market mood, with Moody’s flagging that the country will outpace most Asia-Pacific peers in 2026 as its integration into the artificial-intelligence supply chain cushions the economy. That optimism underpins a modest rally in the ringgit, which closed higher against most major currencies while slipping slightly versus the US dollar, and fuels confidence that sectors tied to technology and export demand may see continued support.

At the same time, energy markets are volatile: Brent crude slipped to US$102.16 a barrel amid heightened tensions in the Strait of Hormuz, keeping oil prices elevated, while crude palm oil futures fell for a third consecutive session, with the October contract down RM38 to RM4,601 per tonne. The divergent moves in fossil-fuel and palm-oil markets reflect global supply-risk dynamics and domestic price pressures, influencing both exporters and consumers.

Together, the AI-growth narrative and the mixed energy signals shape a cautious optimism. Investors and businesses will watch for any shift in the AI supply-chain outlook, further movements in oil-related geopolitics, and domestic policy responses to palm-oil price swings, as these factors will determine whether today’s upbeat sentiment endures.

• Moody’s: AI boom to lift Malaysia’s 2026 growth despite slower Asia-Pacific outlook
• Ringgit closes higher against major currencies, dips slightly vs. US dollar
• Oil extends rally as US-Iran standoff keeps Strait of Hormuz tensions high
• Crude palm oil futures fall for third straight day on Bursa Malaysia Derivatives

Numbers to know

• FBM KLCI: 1,672.31 points, down 0.25% on the day (last close)
• USD/MYR: 4.0840 ringgit per US dollar, down 0.09% on the day (the ringgit is stronger against the dollar)
• Brent: 107.03 US dollars, up 3.83% on the day
• Gold: 4,310.10 US dollars, down 0.19% on the day
• Bitcoin: 84,311 US dollars, down 0.08% on the day
• S&P 500: 7,704.13 points, down 0.02% on the day
• Straits Times: 5,683.37 points, down 0.46% on the day (last close)
• Hang Seng: 24,761.13 points, down 0.29% on the day (last close)
• Nikkei 225: 65,513.99 points, up 0.76% on the day (last close)
• RON95: RM4.57 per litre, up RM0.20 on the week
• RON97: RM5.05 per litre, up RM0.20 on the week
• Diesel: RM5.42 per litre, up RM0.15 on the week

Markets and money

The KLCI slipped 0.25% to 1,672.31 points while the ringgit edged stronger, closing at 4.0840 per US dollar, down 0.09% on the day – the first gain against the greenback in recent sessions. The modest appreciation reflects a mix of local and global cues. Brent crude jumped 3.83% to US$107.03, buoyed by heightened tensions in the Strait of Hormuz that kept oil markets tight. Higher oil prices feed through to domestic fuel, with RON95 and RON97 each up RM0.20 on the week and diesel up RM0.15, adding pressure on transport costs.

At the same time, crude palm oil futures fell for a third straight session, the October contract slipping RM38 to RM4,601 per tonne. The drop eases a key input cost for food manufacturers and may temper the near-term rise in edible-oil prices that have surged almost 20% over the past year.

For Malaysians, a stronger ringgit reduces the cost of imported goods and foreign debt servicing, while the KLCI dip signals cautious investor sentiment amid volatile commodity prices. The combination of rising Brent and falling CPO suggests a split impact: higher energy bills but potentially lower food-price inflation.

If the US-Iran standoff eases, Brent could retreat, relieving fuel-price pressure. Conversely, any further escalation in Middle-East tensions or a rebound in global demand for palm oil could push oil and food costs higher, weakening the ringgit and pressuring the KLCI. Monitoring geopolitical developments and commodity price trends will be key to gauging the next move.

• Ringgit closes higher against major currencies, dips slightly vs. US dollar
• Oil extends rally as US-Iran standoff keeps Strait of Hormuz tensions high
• 5 stocks likely to benefit after government cuts edible oil import duties
• Crude palm oil futures fall for third straight day on Bursa Malaysia Derivatives

Government and policy

The federal court was asked to hear two separate constitutional challenges concerning oil-and-gas legislation – one from Petronas and another from the Sarawak state government – rather than a joint hearing, a move that could reshape the legal framework governing resource rights in the state. If the court rules in favour of either party, the precedent may alter how future legislation is drafted and how revenue from hydrocarbons is shared, affecting operators, state authorities and downstream industries.

At the same time, the Registrar of Societies issued a deregistration notice to the Perikatan Nasional coalition, giving it 30 days to explain why it should not be struck off the register. The notice signals heightened scrutiny of political parties and could force the coalition to restructure or dissolve, with implications for its members, supporters and the broader parliamentary balance.

Prime Minister Datuk Seri Anwar Ibrahim used a visit to Hangzhou to reiterate “deep-rooted trust and mutual confidence” in Malaysia’s relationship with China and praised President Xi’s leadership. While the statement is diplomatic, it underscores the government’s intent to maintain strong bilateral ties, which may influence trade negotiations, investment flows and regional cooperation.

What follows: the federal court will schedule hearings for the two challenges, and the coalition must submit its defence to the registrar within the stipulated period. The outcomes will determine whether legislative reforms are needed for the oil-and-gas sector and whether Perikatan Nasional can continue operating as a registered political entity.

• Petronas, Sarawak govt seek separate hearings for O&G legal challenges
• PM Anwar reaffirms deep trust in ties with China, praises Xi’s leadership
• Perikatan Nasional receives deregistration notice from Registrar of Societies

Around the states

In Melaka, former Senate president Rais Yatim is expected to be charged at the Melaka sessions court tomorrow, with the hearing set for 9 a.m. before judge Raja Noor Adilla Raja Mahyaldin. The case adds a high-profile legal proceeding to the state’s court docket and may draw public attention to issues of accountability among senior politicians.

Penang mourns the death of Idrus Ibrahim, the 83-year-old elder brother of Prime Minister Datuk Seri Anwar Ibrahim, who died of age-related causes on 24 September. The Penang governor has formally expressed condolences to the Prime Minister and his family; the passing is likely to generate local media focus and public tributes, reflecting the family’s ties to the state.

In Selangor, Datuk Adi Azuan Abdul Ghani, chief operating officer of Lembaga Tabung Haji, appeared before the Shah Alam Sessions Court on three charges under Section 165 of the Penal Code. The appearance brings a corporate executive’s legal trouble to the state’s capital, potentially affecting the reputation of the pilgrim-fund institution and prompting scrutiny of its governance.

• Petronas, Sarawak govt seek separate hearings for O&G legal challenges
• Rais Yatim expected to be charged in Melaka tomorrow
• Penang governor extends condolences over passing of Idrus Ibrahim
• Cikgu Idrus remembered by many for his principles and noble character

Society and public life

Malaysian parents and healthcare providers face a new clinical consideration regarding paediatric medication. A recent study indicates that children taking GLP-1 drugs for weight loss, prediabetes or type 2 diabetes may suffer from nutritional deficiencies. With nearly one in six affected, this suggests a need for closer monitoring of dietary intake alongside pharmacological treatment. Families should weigh the benefits of these medications against the risk of overlooked nutrient gaps, particularly as these drugs become more common in youth care.

In the education sector, Universiti Kebangsaan Malaysia and BlackBerry have launched Cyber Pathways, a professional certification programme aimed at strengthening the national cybersecurity workforce. This initiative addresses a critical skills gap, offering students a direct pathway into a high-demand technical field. For graduates, the risk of underemployment in a digital economy is mitigated by acquiring specialised, industry-recognised credentials that align with corporate security needs.

On the environmental front, the recurring issue of smoke haze in the region highlights the gap between policy and practice. Despite existing frameworks, the problem persists, underscoring the need for more robust regional cooperation. This has immediate implications for public health and daily life, as air quality directly affects respiratory well-being and outdoor activities.

Additionally, Malaysia is leading a regional push for integrated lung health initiatives across ASEAN. This collaborative effort aims to build on previous global health resolutions, potentially improving access to respiratory care and preventive services for citizens in the region.

• UKM and BlackBerry launch Cyber Pathways to boost Malaysia’s cybersecurity workforce pipeline
• ASEAN’s regional clout dims amid rising rivalries, China’s shadow
• GLP-1 weight-loss and diabetes drugs tied to nutrient deficiencies in 1 in 6 kids
• Malaysia takes lead in Southeast Asia’s push for integrated lung health initiatives

The world, through a Malaysian lens

Oil prices spiked recently, a factor cited alongside Federal Reserve rate hike expectations that pushed the U.S. dollar to its strongest level in nearly two months. The same oil surge contributed to global market sell-offs, with European indices like the DAX and CAC 40 opening lower on Thursday.

Energy costs are also rising in Europe, where average diesel prices hit a record €2.23 per litre, up from €2.16 the previous week.

On the security front, reports indicate the U.S. is preparing for a potential conflict with Iran, with 40,000 one-ton-class bombs reportedly earmarked for Israel. Finally, the Trump-Xi summit focused on rare earths, but talks fell short of a deal.

• US Prepares for Potential Iran Conflict as Reports Circulate of 40,000 Bombs Earmarked for Israel
• Global markets sell off as oil volatility and US bond yields weigh
• dollar rises to two‑month high on Fed hike outlook and oil price surge
• Rare Earths Take Center Stage at Trump-Xi Summit as Talks Fall Short of Deal

This briefing summarises DomainFork reporting and adds analysis. It is information, not investment advice.