03/08/2026 09:21 am MYT
Personal consumption expenditure (PCE) in Jun rose by 0.3% month-on-month to a SAAR of US$22,184.1 bln. The growth was mainly driven by a 1.5% increase in spending on durable goods (table 1). PCE rose by 6.3% year-on-year in Jun (figure 1), while real PCE edged up by 0.4% month-on-month and 2.5% year-on-year.

Month-on-month, the PCE price index in Jun fell by 0.1%, while the core PCE index, which excludes food and energy, increased by 0.1%.

Year-on-year, the PCE price index expanded by 3.7% in Jun (figure 2). Energy prices surged by 15.8%, while food prices rose by 2.4%. The core PCE price index increased by 3.3% in Jun.

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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