AI Edge Daily Briefing — 26 July 2026

KUALA LUMPUR, 26 JULY 2026 —

**Opening Read of the Day** As we begin the day, Malaysian investors are faced with a mix of news that could potentially impact the local market. The recent US tariffs have sent shockwaves through Bursa Malaysia, with the market retreating as investors digest the latest developments. However, not all news is bleak, as DBS predicts that Malaysia's growth may be faster than expected, with funds likely to continue pouring in.

**Stories that Matter** ### 1. Bursa Malaysia Retreats on US Tariffs The latest US tariffs have taken a toll on Bursa Malaysia, with the market closing lower across the board. This reaction is not surprising, given the potential impact of tariffs on Malaysian exports. As reported by NST Online, the market is still assessing the effects of these tariffs, and investors are adopting a cautious approach.

### 2. Faster-Than-Expected Growth On a more positive note, DBS predicts that Malaysia's growth may be faster than expected, with funds likely to continue pouring in. This forecast is a welcome boost to the local economy, and investors will be watching closely to see if this prediction holds true. According to The Edge Malaysia, this growth is expected to be driven by various factors, including increased investment and consumption.

### 3. Tariff Shock and Crude Oil Surge The tariff shock has been compounded by a surge in crude oil prices, adding pressure to the already fragile market sentiment. As reported by The Star, Bursa Malaysia closed lower on Friday, with investors struggling to come to terms with the impact of these external factors.

### 4. Capex Revival In a bid to drive investment, leaders are focusing on capex revival, as reported by The Star. This effort is crucial in attracting new investments and boosting economic growth. By driving investment, Malaysia can mitigate the effects of external shocks and maintain a stable economy.

### 5. US Section 301 Tariff Malaysia is among 17 economies subject to a lower 10% US Section 301 tariff, as reported by The Star. This development is a positive step, as it reduces the burden on Malaysian exporters and makes them more competitive in the US market.

**Market Sentiment** The overall market sentiment is mixed, with both positive and negative news influencing investor decisions. While the US tariffs have caused a retreat in Bursa Malaysia, the predicted faster-than-expected growth and capex revival efforts are expected to drive investment and boost the economy. The lower US Section 301 tariff is also a welcome development, reducing the burden on Malaysian exporters.

However, the surge in crude oil prices and fragile market sentiment are causes for concern, and investors will need to navigate these challenges carefully.

**Impact on Malaysia** The KLCI is likely to be affected by the recent US tariffs, with investors adopting a cautious approach. The ringgit may also be impacted, as the market reacts to the latest developments. Key sectors, such as exports and manufacturing, will be closely watched, as they are directly affected by the tariffs and crude oil prices.

However, the predicted faster-than-expected growth and capex revival efforts are expected to drive investment and boost the economy, mitigating the effects of external shocks.

**What to Watch** As we move forward, investors will need to keep a close eye on several key factors. The impact of the US tariffs on Bursa Malaysia and the Malaysian economy will be closely watched, as well as the predicted faster-than-expected growth and capex revival efforts. The surge in crude oil prices and fragile market sentiment will also be monitored, as they have the potential to impact investor decisions.

Additionally, the recognition of Bursa Malaysia by HKEX, unlocking secondary listings in Hong Kong, is a positive development that could attract new investments and boost the local market. With the Creative Economy Minister encouraging Malaysia Islamic Art and Design to strengthen the multiplier effect of the creative economy, investors will be watching to see how this initiative drives growth and investment in the creative sector.