ASLI INSIGHTS: Asia Unpacked | 30 January 2026
From Malaysia’s education announcement, to Trump’s ultimatum to Iran, to China’s purge of a general, to OpenAI’s ambition plan and to the rise of EVs in the European Union.
Top news in Asia this week:
1. Malaysia Scraps Year One School Entry diagnostic assessment
Malaysia has officially scrapped the proposed mandatory diagnostic screening for six-year-olds entering Year One, following concerns it could be discriminatory and psychologically harmful. Prime Minister Anwar Ibrahim confirmed the decision, but the option for children to start school at age six remains to align with international benchmarks. Student readiness will now be assessed through continuous, holistic observation by teachers and parents. To manage the logistical challenges of this transition, the government has allocated RM800 million and plans to hire an additional 18,000 teachers to address classroom overcrowding and staffing needs.
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2. Trump Issues Ultimatum to Iran
President Donald Trump has warned Iran that "time is running out" to negotiate a nuclear deal, deploying a significant US naval "Armada" to the Gulf. Trump threatened severe consequences if Tehran refuses to abandon nuclear weapons. Conversely, Iranian officials declared their forces are ready to "immediately" retaliate against aggression, though they remain open to "fair" negotiations while denying they seek nuclear arms. These tensions coincide with US condemnation of Iran’s deadly crackdown on recent protests, with American officials suggesting the Iranian regime is increasingly vulnerable.
Read more:
https://www.bbc.com/news/articles/cly5pd459gko
https://www.theguardian.com/us-news/2026/jan/29/trump-administration-news-updates-today
3. China Purges Top General
China’s military leadership faces significant turmoil following the investigation of General Zhang Youxia, President Xi Jinping’s closest military ally, and General Liu Zhenli for "serious violations." While officially framed as an anti-corruption measure, reports allege Zhang leaked nuclear secrets and accepted bribes. This purge leaves the ruling Central Military Commission largely depleted, sparking debate among analysts regarding the regime's stability versus its commitment to rooting out graft. Despite the leadership crisis, experts believe China’s military modernization goals remain unchanged.
Read more:
https://www.theguardian.com/world/2026/jan/26/china-top-ranking-general-zhang-youxia-investigation
https://www.bbc.com/news/articles/c701kr5zqdqo
4. OpenAI eyeing fourth quarter IPO
OpenAI is accelerating plans for an initial public offering (IPO) by the fourth quarter of 2026, aiming to debut before rival Anthropic. Currently valued at approximately $500 billion, the ChatGPT maker is reportedly engaging in informal talks with bankers and expanding its finance team despite significant operational losses and a projected break-even date of 2030. Concurrently, OpenAI is seeking over $100 billion in pre-IPO funding, potentially raising its valuation to $830 billion, with Amazon and SoftBank in discussions to invest up to $50 billion and $30 billion, respectively.
Read more:
https://www.wsj.com/tech/ai/openai-ipo-anthropic-race-69f06a42?mod=hp_lead_pos1
5. EV Sales overtake Petrol for the first time in the EU
For the first time, fully electric vehicle (EV) sales in the European Union surpassed petrol cars in December 2025, capturing 22.6% of the market versus petrol's 22.5%. However, hybrids remained the dominant category, holding a 44% share. This shift occurred despite recent moves to relax the 2035 combustion engine ban. While Tesla’s registrations dropped significantly, Chinese rival BYD saw a massive surge. Analysts expect EV adoption to continue growing as manufacturers adapt to intensifying competition and evolving regulatory landscapes.
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