☕️ 1 day and 2 ministerial resignations

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

Malaysia's halal product exports saw a significant increase, reaching RM61.79 bil in 2024, a 15% rise from the RM53.72 bil recorded in the same period of 2023. Investment, Trade and Industry Minister Tengku Zafrul Aziz highlighted that Malaysia has maintained its leading position in the Global Islamic Economy Indicator rankings for a decade, surpassing countries like Saudi Arabia, Indonesia, and the United Arab Emirates. He attributed Malaysia's strength to its Islamic finance, halal food, and media and recreation sectors. The halal industry is projected to contribute 10.8% or RM231 bil to Malaysia's gross domestic product (GDP) by 2030, driven by a strong halal ecosystem spanning food, finance, and travel.

The “world's largest” video game cheating ring, known as "Chicken Drumstick," allegedly raked in USD77 mil (RM326 mil) from selling cheats. Police have identified two individuals, He and Wang, as part of what they claim of managing the organisation's finances and daily operations, including profit distribution, money collection, and communication with the mastermind, known as "Catfish." However, Catfish asserts that he is the primary developer and brains behind this multi-million dollar video game cheating empire, offering a rare insight into this secretive and quasi-illegal industry.

Drug trafficking and abuse in Kelantan are at alarming levels, with arrest, remand, and conviction data showing a consistent upward trend since 2022. Home Minister Saifuddin Nasution Ismail stated that based on United Nations Office on Drugs and Crime (UNODC) standards, Kelantan, with a population of 1.8 mil, has recorded approximately 23,000 drug abuse cases. This translates to a ratio of over 1,000 cases per 100,000 people, significantly exceeding the national average of 566. He also noted that Kelantan is one of four border states, including Kedah, Perlis, and Terengganu, that report the highest number of drug-related incidents.

3. IN MALAYSIA 🇲🇾

Resignation roulette

What’s next for Rafizi? - He resigns. Rafizi Ramli is truly a man of his word as he resigns from his ministerial position as the Economy Minister, effective June 17. Rafizi stated that he will be utilising the remainder of his annual leave from yesterday until June 16. Even a minister has annual leave - just like us, he needs his boss, PMX, to approve his leave. Rafizi justified his resignation by mentioning that it is the practice in countries that uphold democratic principles that party leaders who lose internal elections should make way for those who have been given a new mandate. This follows his loss to Nurul Izzah Anwar for the PKR deputy president position. Despite not having positions in PKR and the Cabinet, Rafizi is still the MP for the Pandan constituency.

Who follows Rafizi? - Nik Nazmi. Another PKR’s election loser, Setiawangsa MP Nik Nazmi Nik Ahmad, also tendered his resignation as the Natural Resources and Environmental Sustainability Minister, effective July 4. Just like Rafizi, Nik Nazmi will also see out his final days as a minister by going on leave. Party over public priorities for both Rafizi and Nik?

Former minister asked PM Anwar to resign — Former Law Minister Zaid Ibrahim has urged PM Anwar to step aside as the Federal Court is mulling over the PM’s eligibility for legal immunity, concerning the civil suit initiated by his former research assistant, Yusoff Rawther. Previously, PM Anwar Ibrahim sought a definitive ruling from Malaysia’s highest court on whether Articles 39, 40, and 43 of the Federal Constitution provide him with qualified immunity against legal action. PM Anwar is requesting the High Court to conduct a ‘threshold inquiry’ to determine whether the legal proceedings should be halted or dismissed to preserve constitutional governance.

Is a Cabinet crisis looming for PM Anwar? This is because apart from the resignation of Rafizi and Nik Nazmi, PM Anwar will also lose another minister at the end of the year as the International Trade and Industry Minister Tengku Zafrul must resign from his ministerial position as his tenure as a senator is expiring soon. So, what’s next? There have been rumours that Selangor Menteri Besar Amirudin Shari will make his transfer from Shah Alam FC to Putrajaya FC. Another, here we go soon, would be the newly minted PKR Youth Chief Muhammad Kamil Abdul Munim, who is touted to become either a minister or a deputy minister.

Malaysia, Indonesia to work towards a common halal logo globally
Deputy PM Ahmad Zahid Hamidi announced that both Malaysia and Indonesia are leading the discussion to consolidate the halal logo at the global level. The proposal will be one of the main agendas during the World Halal Council meeting that will be held in Saudi Arabia in November. Within the proposal, Deputy PM Ahmad Zahid stated that instead of having different halal logos in each country, the standard used by the Malaysian Islamic Development Department (Jakim) will be set as the benchmark on how halal certifications are issued. Jakim has a very high standard of halal certification as well, which has been recognised by 88 halal bodies globally.

At the domestic level, to further strengthen the country’s halal industry, MITI Minister Tengku Zafrul said that his ministry is studying the proposed merger of the Halal Development Corporation (HDC) and the Malaysia External Trade Development Corporation (MATRADE). Tengku Zafrul stated that he wants MATRADE to focus more on halal trade in terms of providing access to halal products, while HDC focuses more on halal development. Tengku Zafrul also said that the proposal to create a Halal Commission will be presented to the Cabinet soon. However, the objectives of establishing the commission are still unclear.

Shorts

1. A atep towards seamless ASEAN CIQ 

   A good step in promoting more intra-ASEAN trade as Malaysia, Thailand and Indonesia have signed the Framework of Cooperation (FoC) in Customs, Immigration and Quarantine (CIQ) under the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT). The FoC will ensure more uniform and business-friendly formalities to promote more seamless movement of goods and people across borders.

2. Microsoft launched first cloud region in Malaysia
   As part of Microsoft’s RM9.3 bil investment in Malaysia, the US-based tech giant has launched its first cloud region in the country, dubbed the ‘Malaysia West Cloud Region’, which will feature three AI-ready availability zones located in the Greater Kuala Lumpur area. A Microsoft cloud region typically comprises hubs of data centres hosting the company’s cloud services, such as Microsoft Azure, Microsoft 365, and Dynamics 365/Power Platform. Microsoft will also soon establish the Microsoft National AI Innovation Centre, in partnership with Malaysia’s National AI Office (NAIO) and the Petronas Leadership Centre.

3. Nation’s first and only federal nicotine manufacturing license
   Ispire Malaysia Sdn Bhd, which is a subsidiary of the Nasdaq-listed, US-based Ispire Technology Inc., claims that it is the only company in Malaysia that has secured full authorisation for export, import, and production of nicotine products. Ispire’s manufacturing facility in Senai, Johor, once fully completed, will have the capacity to produce up to 61 mil devices or 107 mil pods per month. Btw, the California-based company is an e-cigarette and cannabis vape company.

4. AROUND THE WORLD 🌎

The pressure's mounting, Israel

Over 800 legal experts co-sign open letter call for UK sanctions on Israel
A letter to UK PM Starmer was signed by the senior legal figures, who included lawyers, academics, and former judges, with the letter calling for the UK government to impose sanctions to “prevent and punish genocide” in Gaza. The letter stated that Israel is committing “serious violations of international law” in Gaza, including war crimes, crimes against humanity, and serious violations of international humanitarian law.

Netanyahu announces elimination of Hamas Gaza chief
Amid a backdrop of global pressure pushing for an end to the war in Gaza, Israeli PM Netanyahu announced that Hamas Gaza chief Mohammad Sinwar, younger brother of former leader Yahya Sinwar, has been eliminated. Mohammad Sinwar was promoted to the upper echelons after his brother was killed in combat during the war. Yahya himself took on the leadership position after his predecessor, Ismail Haniyeh, was killed by Israel.

Economic business

Germany overtakes Japan as world's top lender
After 34 years of holding the top spot, Japan lost its position as the world’s top creditor to Germany, even though its net external assets hit a record high of USD3.7 tril in 2024, an increase of 12.9% from the previous year. However, Germany’s net external assets came up to USD3.9 tril. The Japanese government has downplayed the event, saying that there are many factors that determine net external assets, and that with Japan’s net foreign assets steadily increasing, the change in ranking should not be taken as a change in Japan’s position.

China developer to dispose of 48 shopping malls in USD6.9 bil deal
Dalian Wanda Group plans to dispose of 48 shopping malls to a joint venture led by Hong Kong investment firm PAG in a USD6.9 bil deal, with the major Chinese commercial property developer shedding assets to raise cash amid a slumping real estate market. The PAG joint venture is made up of five firms, one of which is Tencent Holdings. Upon the expected completion of the deal in 2H2025, the joint venture will acquire shares in 48 regional companies that back Wanda Plaza malls across China. This disposal also ties into the developer’s plan of growing through asset management instead of asset ownership. As of 2024, the group manages 513 Wanda Plazas across China, up 15 from the year before.

xAI to deploy Grok on Telegram in USD300 mil deal
The deal sees Musk’s AI startup (which also acquired X recently) paying Telegram USD300 mil to deploy the Grok chatbot on the messaging app, intending to tap Telegram’s users and sharpen its competitive edge in the AI market. The deal is for one year, with xAI also giving Telegram half of any subscriptions made through the platform. The USD300 mil will be paid for in cash and stock, according to Telegram founder Durov.

Trump administration halts student visa appointments, preps to expand social media vetting
US embassies around the world have been ordered to stop scheduling appointments for student visas as the Trump administration prepares to expand its social media vetting of the applicants. This comes amid a Trump crackdown on some of America’s most elite universities, with the US president believing these universities to be “too left-wing” after they “failed to combat antisemitism” when pro-Palestinian protests unfolded on campuses. In response, China has called on the US to protect the “legitimate rights and interests” of international students. There was no indication given as to when the pause would end. But one thing is more likely - a u-turn coming soon.

Shorts

1. Sudan reports 172 dead from cholera in past week

   Authorities reported that 90% of the 2,300 cases reported over the past three weeks were in Khartoum state, where the water and electricity supply have been severely disrupted due to drone strikes blamed on the paramilitary Rapid Support Forces. Residents were forced to turn to unsafe water sources, even as Sudan’s fragile healthcare system is pushed to the breaking point due to the war. Authorities estimate hundreds of billions of dollars’ worth of reconstruction would be needed. Cholera is a disease that is spread through water and could cause serious diarrhoea and dehydration - learn more here.

2. iPad finally gets WhatsApp app

   Users will finally get the iPad-specific version of Meta’s messaging app, WhatsApp, belatedly offering a larger-format experience to users with Apple tablets. The app supports multitasking features like Split View and can handle video calls with as many as 32 participants.

3. Philippine musician Freddie Aquilar dies at age 72

   The Filipino folk music icon was reported to have passed away at the Philippine Heart Centre. He is known for his international hit “Anak” (listen here), which became the best-selling Philippine music record of all time with over 33 million copies sold worldwide. The song was also translated into 51 languages, with an estimated 100 versions across 23 languages recorded.

5. FOR YOUR EYES 📺

1. Often, we hear people getting lost in the vast ocean. How about getting lost in the clouds, 9,000 m above ground? This Chinese paraglider survived to tell tale - and recorded it too. His adventure didn’t end there - Chinese authorities are now investigating him for potential flight violation. For a short while, I suspected it was AI. Seeing is no longer believing anymore.  

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2. The world’s largest asset managers. For comparison, the size of Malaysia’s capital market was RM4.2 tril (USD1 tril) in 2024.