Malaysia Roundup: ASEAN success, US bond sale, new expatriate rule

PM Anwar hails Malaysia’s successful ASEAN 2025 chairmanship

Prime Minister Anwar Ibrahim praised Malaysia’s 2025 ASEAN Chairmanship as a showcase of national unity, professionalism, and economic leadership. Speaking at the ASEAN Chairmanship Appreciation Ceremony, he thanked government staff, security forces, and even cleaning personnel for their contributions, highlighting smooth event management and cultural showcases. Anwar emphasised teamwork across races, religions, and ministries, linking success to clear policies, firm leadership, and anti-corruption measures. He stressed Malaysia’s desire to be recognised for economic management, AI adoption, and renewable energy initiatives, while also showing care for fellow ASEAN nations, including supporting Timor-Leste’s formal admission as the bloc’s 11th member.

Malaysia eyes first dollar bond sale since 2021 amid strong markets

Malaysia is considering issuing US dollar-denominated bonds this year, its first such sale since 2021, as global credit markets rally and borrowing costs ease. The Finance Ministry said it has sought proposals from banks, partly to refinance dollar bonds maturing in 2026, including a US$1 billion Islamic note due in April. The move comes as spreads on Asian dollar debt hit record lows and after Malaysia’s economy grew a stronger-than-expected 5.7% in the fourth quarter, lifting full-year growth above forecasts. However, officials expect growth to slow to 4–4.5% this year amid rising global volatility and geopolitical risks.

Tighter expatriate hiring rules set higher pay floors, tenure caps

Malaysia will revise its expatriate employment framework from June 1, 2026, tightening rules under the Employment Pass system to prioritise senior and specialist foreign talent. Minimum salary thresholds will rise sharply, with Category I roles requiring at least RM20,000 a month, while Category II and III posts face higher, more clearly defined pay bands. New limits will also cap expatriate tenure at up to 10 years for senior roles and five years for junior categories. The government says the changes address salary compression with local professionals and aim to strengthen skills transfer, succession planning and the progression of Malaysians into leadership roles.

Malaysia’s king urges unity, prioritises national interest amid autonomy debate

Malaysia’s King Sultan Ibrahim Sultan Iskandar urged lawmakers to prioritise national interests over state rights, calling for unity, restraint and maturity in resolving political differences. Addressing parliament on January 19, he said any education system seeking recognition must use the Malay language and reflect Malaysia’s history. He reaffirmed respect for state rights but stressed they must not override the country’s collective interests, citing the 1963 Malaysia Agreement as a foundation for cooperation between states and the federal government. His remarks come amid renewed autonomy demands from Sabah and Sarawak, and follow a court ruling ordering the federal government to settle Sabah’s long-disputed revenue share.

Laos, Thailand, Malaysia advance ASEAN power grid with cross-border deal

Laos, Thailand and Malaysia have signed a new electricity transmission agreement under the Laos-Thailand-Malaysia–Singapore Power Integration Project, marking a step forward in ASEAN’s regional energy integration. The deal enables the cross-border transmission of 100 megawatts of electricity from Laos to Singapore via existing power networks in Thailand and Malaysia, over a two-year contract period. Signed in Bangkok on Jan 14 by state power utilities from the three countries, the agreement advances the ASEAN Power Grid initiative, aimed at strengthening energy security, improving resource efficiency and supporting sustainable economic growth through regional electricity trade.