☕️ 100% chips tariff: Is Malaysia exempted?

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

South Park creators Trey Parker and Matt Stone inked a deal with Paramount+ for the streaming platform to show all 26 previous seasons of the cartoon along with 50 new episodes. The deal was reportedly worth USD1.5 bil (RM6.4 bil), which marks the conclusion of a months-long bidding war between major streaming platforms. Paramount and its CBS network came under fire recently for cancelling The Late Show with Stephen Colbert, with the move rumoured to be part of a settlement with US President Trump. Not sure it worked out for Paramount, since the first episode of the new South Park immediately mocked Trump (NSFW), with the show now also made largely unavailable in China.

There is a new record for the longest distance lightning flash, when a megaflash on Oct 22, 2017, stretched for 829km across the US. The previous record of 768km, which also happened in the US, occurred on Apr 29, 2020 and was certified as a record in 2022. Both records have a margin of error of plus or minus 8km. The UN World Meteorological Organization, which certified the records, said the megaflash underlined the power of lightning and demonstrated how flashes can be dangerous far from the original storm.

The iPhone was first launched in 2007, and 18 years later, Apple sold its 3 billionth phone. It took Apple 9 years to sell the billionth iPhone, which it reached in 2016, meaning that the tech giant sold 2 bil iPhones in the 9 years after that. However, the sales milestone is offset by the firm struggling in the stock market this year, falling behind Nvidia and Microsoft as the market’s most highly-valued businesses. Of note is that the latest quarter saw stronger iPhone sales than expected, contributing USD44.6 bil (RM190.8 bil) to Apple’s revenue for the quarter, which came in at USD94 bil (RM402.1 bil). Guess all those rumours about the iPhone being insanely expensive if made in the US helped sales.

3. IN MALAYSIA 🇲🇾

100% tariff on chips: No use negotiating at this point
US President Donald Trump announced a 100% tariff on semiconductor imports right after Malaysia negotiated a 19% tariff — of which semiconductor products were exempt from any tariffs. No one’s smiling at this, because 60% of Malaysia’s exports to the US are in the electrical and electronic (E&E) sector, and of that amount, 68% are semiconductors. Of that 68%, 65% are exported by American companies operating in Malaysia. In response to Trump’s announcement, Investment and Trade Minister Tengku Zafrul stated that Malaysian semiconductor exports to the US are exempt from the 100% tariff. However, Tengku Zafrul added that he is also seeking clarifications from US authorities to clear the air. So, kau tak sure lah sebenarnya. In 2024, Malaysia exported nearly RM120 bil worth of E&E goods to the US, accounting for about 20% of the nation’s total E&E exports. Of this, semiconductor products alone contributed RM60.6 bil.

Something is fishy inside the undersea tunnel
A key prosecution witness to Lim Guan Eng’s corruption trial was attacked by 10 men, who stormed his home in Petaling Jaya on Wednesday. The police have ruled the incident as a clear-cut robbery and that no witness tampering was involved. However, the so-called ‘robbery’ happened just days before the trial resumption date on August 19 and one of the robbers also allegedly told the witness to “stay at home and not become a hero”. Previously, Lim was accused of soliciting a 10% cut of company profits from Consortium Zenith Construction Sdn Bhd’s director and receiving RM3.3 mil, as well as involvement in the disposal of two state land plots linked to the Penang Undersea Tunnel project.

Healthcare news
Tobacco tax hike?
PM Anwar Ibrahim announced that the Government is considering increasing the tobacco tax, which already accounts for 58.6% of the retail price of cigarettes. He added that the hike aligns with Putrajaya’s commitments to public health and fiscal reform. Plus the last time the tobacco tax has been increased was back in 2015.

Auctioned off or not, the hospital still jalan
Hospital Islam Az-Zahrah, owned by Medi-Circle Sdn Bhd, will still be operating as usual even though RM200,000 worth of assets were auctioned off earlier this week. The assets included two vans, medical equipment, office furniture, computers, cabinets, television sets, air-conditioners, and sofa sets. The chain events that led to the public auction stem from the failure of the hospital to pay RM8.32 mil in damages, after the hospital lost a suit, which found the hospital liable for the condition of a baby girl born at 26 weeks gestation in 2003, who has since been diagnosed with spastic quadriplegic cerebral palsy.

Business news
MUI to say bye to its hotel
Malayan United Industries Bhd (MUI) has struck a deal to sell Corus Hotel KL at a price tag of between RM250 mil to RM280 mil. The sale, if materialised, will not be a surprise as MUI has been on a divestment journey for the past few years. Last year, MUI sold a 389.7-acre parcel of land near Port Dickson to Gamuda Bhd, along with a stockbroking and asset management business as well as a holiday resort in Port Dickson through the sale of Pan Malaysia Holdings Bhd. However, MUI still owns the Corus Hotel Hyde Park in London with a carry value of RM932.54 mil.

Another digital bank goes live
KAF Digital Bank Bhd will be the second Islamic digital bank to receive approval from BNM to start its operations today. The digital bank is operated by a consortium comprising KAF IB and four fintech and tech-based partners — Carsome, MoneyMatch, Jirnexu and StoreHub.

Khazanah to support growth for mid-tier companies
Khazanah Nasional Bhd will be launching its MTC Growth Innovation Programme (MGIP) starting 3Q2025 under the Dana Impak initiative, targeting mid-tier companies (MTCs). With an initial target of impacting 100 companies, the programme is for Malaysian-owned private companies with an annual revenue between RM20 mil to RM500 mil (depending on industry — services or manufacturing), a profitable track record, and a demonstrated commitment to innovation. Interested? Click here.

Shorts

1. Kuala Lumpur - Johor Bahru KTM ETS still on track
   Despite the rumours, Transport Minister Anthony Loke stated that the KTM electrification and double-tracking project (ETDP) is not suffering any delays. At the moment, the first phase of the KTM ETS alignment from Gemas to Segamat opened in March 2025. The second phase will be from Segamat to Kluang, which is intended to open before August 31, while the third phase, Kluang to JB Sentral, will be ready by year-end. The completion of the 192-km Gemas-JB Sentral ETDP will allow ETS trains to travel the entire length of the West Coast Line.

2. PLUS to test a new barrierless toll system
   North-South Expressway (NSE) operator PLUS Malaysia is set to pilot the barrierless toll booth system using automatic number plate recognition (ANPR) technology. If successful, the ANPR pilot will serve as a key component in Malaysia’s nationwide multi-lane fast flow (MLFF) toll system, which authorities aim to roll out by 2027. Users must download a free mobile app, register their vehicle number, and link a payment method such as a credit or debit card to participate in the pilot.

4. AROUND THE WORLD 🌎

Trump’s tariff things:
100% tariffs on chips and semiconductors, South Korea exempted
During a press event at the Oval Office on Wednesday, Trump announced that he plans to impose a tariff of approximately 100% on any imported chips and semiconductors arriving in the US, though this is not a formal announcement. However, on the exemption list is South Korea, who will face the most favourable US tariff rates on chips under the trade deal between Washington and Seoul, according to South Korea’s top trade envoy. Apparently, companies that had made a commitment to manufacture in the US or were in the process of doing so will be exempted. Samsung has invested in two chip fabrication plants in Austin and Taylor, Texas, while SK Hynix has announced plans to build an advanced chip packaging plant and research and development facility for artificial intelligence products in Indiana. Also exempted is Taiwan’s TSMC, which has factories in the US.

Apple to invest a total of USD600 bil in the US
Also in the Oval Office was Apple CEO Tim Cook, who stood beside Trump as the president announced an additional USD100 bil to Apple's investment figure in the US - an increase from the initial investment of USD500 bil announced in February. Cook confirmed the increase, saying he had signed new agreements with 10 companies in the US to kickstart more manufacturing. This was good news for Trump as it serves his plans to reshore manufacturing back to the US, and he credited the increased investment to his “America First” policy agenda. In April, Apple had announced plans to move the assembly of the majority of the phones it sells in the US to India by the end of next year - an effort to reduce the company’s reliance on China as its trade war with the US heats up. However, Trump is now irked with India and has recently announced a whopping 50% tariff over its imports of Russian oil.

Is Trump really winning?
Expert analysis on Trump’s trade war shows that, while he appears to be winning, significant challenges to the US economy remain. It includes whether US trading partners will make good on investment and goods-purchase commitments, how much tariffs will drive up inflation or hinder demand and growth, and whether the courts allow many of his ad-hoc levies to stand. American consumers have shown themselves to be more resilient than expected, but some recent data indicate the tariffs are already affecting jobs, growth, and inflation. Even with a “still-strong” economy to support a more aggressive tariff strategy, Trump's tariffs, tax cuts, deregulation, and policies to boost energy production would take time to play out.

In China:
iQiyi plans USD300 mil listing in Hong Kong
iQiyi aka the “Netflix of China”, may soon become the latest US-listed Chinese firm to tap investors closer to China, amid renewed geopolitical uncertainty and a resurgence in Hong Kong’s equity markets. The company is reportedly seeking to raise up to USD300 mil via a second listing in Hong Kong’s market. It was also said that the Netflix-style streaming platform, backed by Baidu Inc, has begun talks with global banks about a potential offering later this year. iQiyi streams everything from period dramas to Hollywood films, competes with Tencent Holdings Ltd and Alibaba Group Holding Ltd, and reportedly has over 400 million monthly active users. The platform reported a revenue of USD990.3 mil for the first quarter of 2025, with an operating income of USD47.1 mil.

China unleashes military ‘robot wolves’
Chinese “robodogs” have apparently gone through an upgrade, resulting in gun-toting quadruped military “wolf” robots designed to stealthily approach enemies, fire precise shots on targets, and work in rough terrain. China has said that it can replace human soldiers in dangerous conditions, as it is able to climb up flights of stairs, carry heavy backpacks and launch attacks, and have improved “reconnaissance and strike capabilities”. Some experts said that China might already have the upper hand over the US when it comes to robotics with how much it has supported the sector. Wonder if this will ruffle Trump’s feathers too?

Shorts:

1. Italy to build world's longest suspension bridge to Sicily
   The Italian government has finally said yes to the USD15.6 bil development of the Messina Bridge - the world’s longest suspension bridge that will connect the island of Sicily to the Calabria region at the tip of southern Italy’s boot-like peninsula. The bridge will span 3.3 km and stretch between two 400-metre high towers, and will be able to withstand earthquakes. Rome hopes to classify the bridge as a military expenditure counting towards the Nato target of 5% of GDP spent on defence. Despite being proposed more than 50 years ago, various reasons had caused the project to stall and it has long faced stern opposition even until now.

2. Titan implosion disaster a ‘preventable tragedy’
   The US Coast Guard has released the report of a two-year investigation into the implosion of OceanGate submersible Titan in 2023, which killed five people on-board including the company's CEO Stockton Rush. In essence, the report attributed the accident to poor safety practices, lack of oversight and toxic safety culture in the OceanGate workplace. Investigators also found the Titan’s design, certification, maintenance, and inspection process were all inadequate. The investigation team chairman said that he is optimistic that the investigation’s outcome would help to prevent future tragedies especially in the submersible industry.

3. Thai tycoon and Chinese developers indicted over building collapse
   Thai prosecutors indicted several responsible parties linked to the collapse of a partly-finished government building during a deadly earthquake in Bangkok in March. Premchai Karnasuta, president of Italian-Thai Development Pcl, along with China Railway No 10 (Thailand) Co and 21 other defendants, were formally charged for professional negligence causing the deaths of 89 workers, with some also facing charges of document forgery and violations of building-control regulations. The building was the only major structure in Bangkok to fully collapse after the magnitude 7.7 quake. Investigators concluded that flaws in design and construction methods caused the collapse. Ironically, the building was intended to be the new HQ of Thailand’s State Audit Office.

5. FOR YOUR EYES 📺

After 6 Aug (Hiroshima), tomorrow (9 Aug) marks the 80th anniversary of the atomic bombing of Nagasaki. Let’s take a look at the type of Imperial Japan back then.

1. Japanese army’s willingness to die rather than surrender that a second atomic bomb was needed was one of the strategic reasons.

2. The very very dark side of Japan back in WWII. Worse than the Nazi? Watch the next one on Unit 731.

3. If you don’t have stomache for brutal atrocities beyond your imagination through human experimentation, avoid this documentary on Japan’s Unit 731 (warning - graphic) during WWII.

Our apologies for such content for the weekend, but it’s a reminder to us all that war has nothing good to offer. Anyways, enjoy your weekend with your kids with this simple entertaiment.

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