☕️ 13th Malaysia Plan tabled

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

New Zealand plans to double its international market by 2034 through the offering of incentives, such as relaxing rules around foreign students working part-time while studying. The government wants to “supercharge” the growth track of steadily increasing international enrolments since 2023, with the aim of having international students contributing NZD7.2 bil (RM18.1 bil) to the nation’s economy by 2034. This comes as Australia and the US, both popular international student destinations, look to reduce foreign students. 2024 saw 83,700 international students, and the goal is to have 119,000 students by 2034.

Meanwhile, in England, school suspensions and exclusions reached its highest level since 2006. Last year, suspensions and exclusions in state schools reached 954,952 and 10,885 respectively, marking increases of 21% and 16%, with “persistent disruptive behaviour” the most common reason students are sent home. This brings the total close to a million, with educators pointing out that schools are not able to address the causes of poor behaviour alone, as the reasons “often lie beyond the school gates and have their roots in wider challenges”, such as poverty and mental health conditions.

Locally, there are problems addressing mental health situations as well, considering Malaysia, with its population of about 35 mil, only has 400 clinical psychologists. The ratio is one clinical psychologist for every 87,500 individuals, far short of the World Health Organization’s recommended benchmark of one clinical psychologist for every 5,000 individuals. It does not help that the new generation that wants to fill that gap are stymied by stumbling blocks such as outdated systems, hefty costs, and unfair expectations, leading to many students reconsidering their options. There is also a lack of qualified clinical supervisors, meaning students often struggle to secure placements for their required internships as well.

3. IN MALAYSIA 🇲🇾

13th Malaysia Plan finally tabled in Parliament
Reportedly costing RM611 bil to implement, the newly announced 13th Malaysia Plan — which has the theme “Melakar Semula Pembangunan” — has set the following ambitious goals, among others:

• 4.5% to 5.5% annual growth in Gross Domestic Product (GDP);

• Decrease of Federal Government’s fiscal deficit to below 3% of GDP, with government debt not exceeding 60% of GDP;

• Average inflation rate to remain between 2% to 3% annually;

• 5.8% annual growth of gross exports, with broader trade opportunities;

• Electrical & Electronics product exports to approach RM1 tril by 2030;

• Manufacturing sector’s growth by 5.8% per year;

• Services sector’s growth by 5.2% per year;

• Agriculture sector’s growth by 1.5% per year;

• Mining and quarrying sectors’ expansion by 2.8% annually;

• Increase of halal export to RM80 bil, with the halal industry contributing 11% to GDP by 2030;

• Achieve high-income nation status and be among the world’s top 30 economies by 2030.

Early comments on the 13th Malaysia Plan include those from Finance Minister II Amir Hamzah Azizan who stated that the plan was a “bold step forward to grow the nation's economy to ensure opportunities for all Malaysians” and former Economy Minister Rafizi Ramli, who was ‘happy’ that almost all of the major policy reforms were retained in the revamped plan.

Chicken egg subsidies and water tariff adjustments begin today
Malaysians can expect to pay more for chicken eggs starting today, as the government is shifting to a phased and targeted subsidy approach to ensure supply security and price stability. The Ministry of Agriculture and Food Security reported that the government spent nearly RM2.5 bil to subsidise chicken egg prices between February 2022 and December 2024.

As part of the restructuring, the more affordable Special Grade Eggs will be introduced. Malaysians can still buy chicken eggs at competitive prices through the Agro Madani Sale and Rahmah Sale programmes, managed by the Federal Agricultural Marketing Authority and the Farmers’ Organisations Authority.

Meanwhile, all Penisular Malaysia states (except for Perak) will also be facing new water tariff rates today. This implementation follows an earlier reported request by the menteri besars and chief ministers to increase the tariff rates. The highest increase in minimum charges will take place in Perlis and Kelantan, whereas high consumption users will be affected the most in Terengganu.

New US tariff rate for Malaysia to be announced today
The US President is expected to announce a new tariff rate for Malaysia today following a call with Prime Minister Anwar Ibrahim, with both leaders spending some time on tariff-related issues. PM Anwar cautioned that Malaysia must remain vigilant as consumer prices and costs could rise if the tariff is not as expected. Malaysia’s economy could face a decline in exports, lower corporate earnings and reduced tax revenue. To date, countries which have successfully negotiated a lower tariff rate include the UK, Vietnam, Indonesia, the Philippines, Japan, and South Korea.

As an aside, US President Trump will be attending the upcoming 47th ASEAN Summit in October, according to PM Anwar. This confirmation came after Trump expressed his appreciation towards Malaysia’s role in facilitating a ceasefire in the Thailand-Cambodia border conflict which claimed at least 32 lives and has displaced 200,000 people.

Shorts

1. Malaysia's first ethnic Chinese lieutenant-general to retire next January
   Despite earlier news reports mentioning Lieutenant-General Johnny Lim Eng Seng’s retirement as a three-star general, he has clarified that his retirement is taking place in January 2026, adding that the news reports are “deceiving”. By the time of his retirement, he will have served 10 months as a lieutenant-general.

2. NGO Sisters in Islam drops "Islam" from its name
   Following an extraordinary general meeting, the Sisters in Islam NGO announced that it would be identified as SIS Forum (Malaysia) from now on, at the urging of the Sultan of Selangor. The Sultan had expressed disappointment at their decision to identify as the Sisters in Islam, saying that the use of “Islam” in their name could confuse Muslims. Despite the concession, the NGO’s Executive Director Rozana Isa said her team will continue advocating for gender equality and justice in Islamic family law. They won in court to keep their name, only for this to happen.

3. Bangladesh: No more investigating alleged exploitation of Malaysian-bound workers
   A high-ranking official in the Bangladeshi government revealed the country has agreed to stop its investigation over allegations of a syndicate exploiting labourers who wish to work in Malaysia. They claimed the decision was made during a meeting between representatives from the Bangladeshi government and the Malaysian Human Resources Ministry, following a letter purportedly sent by a senior official which read “ …we urge you to stop reinvestigating cases that had been dropped before this through formal mechanisms. This is to ensure Malaysia is able to preserve and improve our Trafficking in Persons ratings by showing our commitment to ethical recruitment processes”. Malaysia’s Human Resources Ministry has denied the existence of such a meeting.

4. AROUND THE WORLD 🌎

The “art” of the deal
More Trump tariff “surprises” as deadline approaches
On Wednesday, the US President announced tariffs of 15% on imports from South Korea that matched the rate for neighbour Japan, and a painful 25% levy on imports from India that was accompanied by criticism of its purchases of Russian energy and weapons. Trump further shocked markets with new tariff rules on copper, sinking prices in New York by a record after exempting the most widely traded forms of the metals from 50% tariffs. Most countries are still without a trade deal, and those who have one are lacking in details including potential exemptions, investment promises, and potential changes to rules of origin. US consumers and small businesses will soon face higher costs on shipments, as Trump announced tariffs would apply from Aug 29 on imports that are below USD800. However, things are looking favourable between the US and China, with Trump believing they will have a “very fair deal”, following talks in Sweden that strengthened trust and confidence between the two sides.

Trump making it difficult for Canada
Canada’s decision to recognise the Palestinian state in the UN General Assembly in September might cost them a trade deal with the US, with Trump saying that the decision will “make it very hard” for the US to strike a deal. Canada and the US are working on negotiating a trade deal by Aug 1 before Trump imposes a 35% tariff on all Canadian goods not covered by the US-Mexico-Canada trade agreement. Canada’s decision to recognise the Palestinian state came after a similar decision by the UK and France recently, with PM Carney saying that recognising Palestinian statehood was necessary to preserve hopes of a two-state solution to the Israeli-Palestinian conflict, a longstanding Canadian goal that was “being eroded before our eyes”. However, the decision came with a condition that Hamas plays no part in Palestinian politics and that the Palestinian Authority commits to reforms in the state.

Money-makers
Rolls-Royce thriving with 50% profit growth
Thanks to a boom in AI and weapons spending, Rolls-Royce has reported a 50% rise in half-year profits, propelling its shares up 10.5% on Thursday morning to a record high of GBP11.08 (USD15.67) each. It also drove the company’s valuation above GBP90 bil (USD119 bil) for the first time. The British jet-engine maker said that its earnings were driven in part by strong demand for its large engines business, since the firm is a key supplier for engines in fighter jets. Growing demand for power systems in AI data centres also boosted the firm’s power systems business. The company also recently received a boost from the UK government’s choice to have Rolls-Royce deliver the first small modular nuclear reactors (SMRs) — factory-produced nuclear power stations that aim to cut energy costs. For the half-year in question, the firm reported operating profits of GBP1.7 bil, with a revenue of GBP9.1 bil (USD12 bil).

Grab reports USD20 mil profit in Q2
Great times for Grab - the ride-hailing and food delivery company has recently reported a revenue of USD819 mil for the first six months of 2025, going above analyst expectations of USD811.3 mil. This led to a profit of USD20 mil for the quarter, compared with a USD68 mil loss in the same period last year. It turns out that Grab’s efforts to turn its platform into a super app – integrating ride-hailing, food and grocery delivery, and other digital services – has drawn a growing number of users willing to pay for its subscription plans. The company noted its strong performance in Indonesia, a market it had previously described as under-penetrated, aiming to capitalise on the country’s large population and grow market share. Grab’s market cap stands at USD20.5 bil (RM87.3 bil). Overpriced much? Check out Grab’s earnings deck here.

Beijing not adequately prepared for extreme weather
As Beijing continues to struggle with extreme rainfall and flooding, Chinese officials from the Communist party in the badly-affected northern district of Miyun have admitted in a press conference that there were “gaps” in the city’s preparatory plans for the deadly flood and extreme weather. At least 60 people died from the floods over the past week, with 31 deaths in an eldercare home in Miyun district. Nine people were still missing as of midday yesterday. City officials also said their disaster prevention plans had been imperfect and there were “shortcomings” in the infrastructure needed in the mountainous outlying districts of Beijing. Many flood victims said they did not receive advance warnings about the extreme weather. Beijing was battered with a year’s worth of rain that fell within a week, turning cars upside down and flooding homes. More than 80,000 people have been relocated and more than 100 villages lost power. In total, more than 300,000 people have been affected.

Shorts

1. Drones deliver escape vehicle to Ukrainian soldiers
   Ukrainian soldiers have reportedly used a first-person-view (FPV) drone to deliver an e-bike to help a soldier escape Russian-controlled territory, making it a rare instance of the use of such drones to deliver a vehicle in a war. FPV drones are typically used to deliver payloads of about 50 pounds (22.7kg), but carrying a 90-pound (40.8kg) e-bike has pushed it to the limits and shortened its range to roughly 2km. Three attempts were made to deliver the e-bike, which cost them two lost e-bikes worth around USD2,340 and two lost HeavyShot drones worth USD15,000 each.

2. USD10 bil discounted from student loans
   Australia passed a new law to wipe out student loans by 20% - that means a reduction of more than AUD16 mil (USD10.31 bil) in debt for 3 mil people paying for a student loan in the country. The government said that it is part of fulfilling their promise to mitigate the rising cost of living, as well as to “take a weight” off the backs of young people who placed their trust in the current administration during the elections. Millennials and Gen Zers made up 43% of the 18 mil people enrolled to vote in Australia’s May general election, outnumbering Baby Boomers.

3. “Cosmetic” change to Myanmar government
   Myanmar’s state media has announced that the decree allowing the military power to take over after the 2021 coup is now cancelled and the power has been transferred to a civilian-led interim government in preparation of an election in December. However, junta chief Min Aung Hlaing remains in charge and is put in the new role of “acting president”. Not much change in the status of the country then — analysts say that the change in power was just “cosmetic” and that there is not much known about the election plans ahead. Myanmar is still grappling with a civil war, with the military fighting to contain a rebellion and accused of widespread atrocities, which it denies.

5. FOR YOUR EYES 📺

1. Episode Landlords - the fight against racism. For some reason, the content couldn’t load, so visit here for the infographic.

2. The battle against slavery.

3. Mr Money interviews HYGR, a homegrown 8-figure FMCG brand. An inspiring listen for the weekend.

An accident without an accident. Happy weekend!

unlimited1_fun

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