05/08/2026 12:09 pm MYT
In Jul, the Australian Industry Index declined by 0.2 points from Jun to -29.9 (figure 1), indicating continued weakness in industrial conditions. The decline was mainly driven by a 5.3-point drop in employment from the previous month, which more than offset the improvements in activity, sales, and new orders (table 1).

The manufacturing index fell by 5.7 points to -19.6, while the construction sector index declined by 7.3 points to -40.6. The business services index increased by 4.9 points to -22.6 in Jul. Meanwhile, the industrial capacity utilisation rate increased to 74.0%.

Note from Publisher
This week, prime minister Anwar announced that the Malaysian government will subsidize artificial intelligence (AI) software subscriptions for students. Up to 100,000 Malaysian youths will receive free subscriptions to leading AI software for three months. The aim is to provide practical, hands-on experience, enabling students to develop critical skills in areas such as coding and AI engineering. This is part of the government’s efforts to make Malaysia a regional AI hub by 2030.
However, subsidizing AI tools is only a tiny step. A nation's ability to adopt, develop, and scale AI will increasingly determine its economic competitiveness and attractiveness to investors. Malaysia, like many developing countries, is lagging in the adoption of AI.
To build strong AI capabilities, Malaysia must invest in high-quality STEM education, world-class research universities, accessible investment capital, robust digital infrastructure, and a stable legal and regulatory framework. Equally important is fostering close collaboration among government, academia, and industry to accelerate AI innovation and adoption. Achieving these goals requires sustained commitment, strategic investment, a clear long-term vision, and a well-defined national roadmap. Building a competitive AI ecosystem is a marathon, not a sprint, and success will depend on consistent execution over many years.
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