Malaysia Roundup: PM Anwar’s phone call with Iran, inflation rate, Central Asia expansion

Iran seeks peace if Israel halts attacks, says Malaysian PM Anwar

Malaysian Prime Minister Anwar Ibrahim spoke by phone with Iranian President Masoud Pezeshkian on June 24 regarding the Iran-Israel conflict. According to Anwar, Pezeshkian expressed Iran’s willingness to cease military actions if Israel stops its attacks on Palestine and Iran. The Iranian president also asked Malaysia to convey this position to other Muslim countries to counter biased narratives.

Malaysia to impose 6% service tax on international private education

Starting July 1, 2025, Malaysia will implement a 6% service tax on private education services for international students under its revised Sales and Service Tax (SST) framework. The tax applies to preschools, schools, universities, and language centres. The Ministry of Finance clarified that the tax targets non-Malaysian students only; Malaysian students remain exempt. Private institutions with annual tuition exceeding RM60,000 (approximately US$14,155) must register for SST. All higher education and language centres serving international students must register, regardless of turnover.

Hyundai assumes full control of Malaysian operations

Hyundai Motor Company has established Hyundai Motor Malaysia (HMY), transitioning from a distributor-led model under Sime Darby Motors to a principal-led structure. The company now directly oversees brand operations in Malaysia, including marketing, sales, and customer experience. HMY’s new headquarters is located at Menara Affin TRX in Kuala Lumpur. According to HMY President Eric Lee, the move reflects a long-term commitment to positioning Malaysia as a strategic hub in ASEAN.

Lowest inflation rate in 51 months recorded

Malaysia recorded an inflation rate of 1.2% in May, the lowest in 51 months, according to official data released on Tuesday, June 24. The Department of Statistics Malaysia attributed the slower inflation to declining global oil prices, consistent with Malaysia’s status as an open economy. The producer price index fell by 3.4% in April, mainly driven by a 17.8% drop in the mining sector. Food and beverage prices, which make up 29.8% of the consumer price index, rose at a slower pace of 2.1% in May.

Malaysia explores Central Asia expansion via Uzbekistan

Malaysia plans to strengthen its market presence in Central Asia by positioning Uzbekistan as a strategic entry point, according to Deputy Prime Minister Datuk Seri Fadillah Yusof. During his four-day official visit, Fadillah highlighted potential collaboration in sectors including energy, palm oil, and Islamic finance. Engagements with Uzbek officials and business leaders resulted in agreements to promote trade and investment, particularly in renewable energy and carbon trading.