☕️ Amidst Iranflation, PM Anwar pledges to maintain RON95 at RM1.99

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

USD3.7 bil (RM146.63 bil) – The US-Israeli war on Iran is estimated to have cost Washington that amount in its first 100 hours alone, averaging USD891.4 mil per day. Costs are also rising at a rate of USD758.1 mil per day. An analysis by the Center for Strategic and International Studies, a Washington-based think tank, showed that most of the USD3.7 bil was driven by the huge expenditure of munitions. The analysts also said that only USD200 mil of the amount was budgeted for. This meant that the Pentagon will probably need to request more funding soon to cover the unbudgeted costs, which will likely be a political challenge for the Trump administration and a focal point for those opposing the war.

RM933.36 mil – PM Anwar Ibrahim said this was the amount the government paid out between 2020 and 2025 due to errant or negligent civil servants. The court-ordered payments followed rulings involving offences, negligence and wrongful acts committed by government officers or agencies. To minimise such liabilities, the relevant ministries will conduct detailed investigations to identify the cause and chronology of the cases that led to the damages paid out.

CHF7.8 mil (RM39.71 mil) – That’s how much the Swiss government will pay to the severely injured survivors and bereaved families of the New Year bar fire in the ski resort of Crans-Montana. The fire killed 41 people and injured more than 100 others. The Swiss government called this a solidarity contribution to provide swift financial support to victims and serve as a gesture of compassion. The funds will be split among 156 individuals most severely affected by the fire, with each receiving CHF50,000.

3. IN MALAYSIA 🇲🇾

Muhyiddin trial begins over RM232.5 mil Jana Wibawa funds
Prosecutors outline case linked to party accounts: The corruption trial of Muhyiddin Yassin officially began at the Kuala Lumpur High Court, with prosecutors alleging that hundreds of millions of ringgit linked to government projects ended up in Bersatu accounts. Deputy Public Prosecutor Wan Shaharuddin Wan Ladin said the funds did not enter Muhyiddin’s personal accounts but were deposited into party accounts while he served simultaneously as Prime Minister and party president. The party allegedly received RM232.5 mil tied to the Jana Wibawa programme, introduced during the Covid‑19 pandemic to speed up projects for Bumiputera contractors and stimulate the economy. Prosecutors said such contributions would not have occurred if Muhyiddin had not held both positions. The court also heard that former Finance Minister Tengku Zafrul acted based on official minutes issued by Muhyiddin.

Charges and legal battle leading to trial: Muhyiddin faces four counts of abuse of power and three money‑laundering charges. He is accused of soliciting RM232.5 mil from Bukhary Equity Sdn Bhd, Nepturis Sdn Bhd, Mamfor Sdn Bhd, and an individual, Datuk Azman Yusoff, between Mar 2020 and Aug 2021. He also allegedly received RM200 mil in unlawful proceeds deposited into Bersatu’s accounts between Feb 2021 and Jul 2022. If convicted, he could face up to 20 years jail for abuse of power and 15 years for money laundering. The High Court quashed the abuse of power charges in 2023, but the Court of Appeal reinstated them in Feb 2024. Muhyiddin’s attempt to seek acquittal through the Attorney‑General’s Chambers in 2025 was rejected. He also faces a separate sedition charge over remarks made in Aug 2024.

Women’s Day special
Survey points to brighter future for young women: A new Ipsos survey shows Malaysians are optimistic about the prospects for young women. Released ahead of International Women’s Day 2026, the survey found 60% of Malaysians believe young women today will enjoy a better life than their mothers’ generation, higher than the global average of 55%. The survey, conducted among 500 adults aged 18 to 74, also highlighted changing attitudes at home. Many support shared household responsibilities, though earning money is still largely seen as a male role. Women are seen as having greater freedom in personal expression, such as how they dress and spend leisure time, while men are perceived to have wider career options. Support for women holding leadership positions is also rising, with 56% saying governments and organisations would perform better with more female leaders, up from 53% in 2025.

RM3 bil fund launched to support women entrepreneurs: At the same time, the government has allocated RM3 bil under the Women Entrepreneurs Economic Fund (Dewi) to help 300,000 Malaysian women (an average of RM10k per woman) grow their businesses. Launched on International Women’s Day 2026, the initiative provides financing ranging from RM1,000 to RM3 mil for women‑owned micro, small and medium enterprises nationwide. The ministry expects the programme to benefit up to 300,000 women and aims to strengthen the SME sector while creating opportunities for women to expand their ventures and contribute to the economy.

RM6.3 tril capital market growth plan unveiled
The Securities Commission Malaysia has unveiled a plan to expand the country’s capital market from RM4.3 tril in Dec 2025 to between RM5.8 tril and RM6.3 tril by 2030, aiming for an annual growth rate of 6% to 8%. SC chairman Mohammad Faiz Azmi said growth will come from new company listings, more corporate bond financing, and greater participation from institutional investors. The market is already showing improvement, with foreign investors putting in RM207 bil last year and another RM25 bil flowing into Malaysia’s bond market. The FTSE Bursa Malaysia KLCI has climbed above 1,700 points, a level not seen since 2019.

The masterplan focuses on boosting market activity, making investing more accessible, supporting sustainable financing, and tapping regional opportunities. Plans include increasing company valuations through the value‑up initiative, encouraging more trading, and widening financing access for mid‑tier companies and SMEs. The initiative also supports Malaysia’s RM1.2 tril renewable energy transition and aims to attract more ASEAN‑focused exchange‑traded funds and foreign investors.

For the full report, click here. For the report highlights, click here.

Shorts:

1. Anwar pledges to maintain RON95 at RM1.99
   PM Anwar Ibrahim said the government will do its utmost to keep RON95 petrol at RM1.99 per litre despite rising global oil prices. Brent crude has climbed to around USD100 (RM396.55) per barrel, but Malaysia’s price remains stable. Anwar urged Malaysians to practice prudent spending amid global economic uncertainty and stressed that Malaysia opposes violence and destabilisation in the Middle East.

2. Don’t hide in bathrooms during fire
   FT Minister Hannah Yeoh has warned residents in high‑density housing not to seek refuge in bathrooms after several fatalities in KL. Fire and Rescue Department data showed three deaths in 2024 and five in 2025 involved victims found in bathrooms. Yeoh said smoke inhalation, not burns, is the main cause of death, and bathrooms have poor ventilation and limited exits. Fire incidents in strata residences have risen, reaching 86 cases in 2025. Electrical faults and uncertified devices are among the most common causes of these fires.

3. JPJ launches online seized vehicle auction app
   The Road Transport Department has unveiled the JPJvBID app to manage public auctions of seized and forfeited vehicles online, aiming to boost transparency and efficiency. Selangor will pilot the auction with 30 vehicles, including motorcycles, cars and scrap vehicles. Physical inspections are not allowed, and bidders must rely on images in the app. The app launches on Mar 10, with the first auction running from Apr 1 to 5.

4. AROUND THE WORLD 🌎

All about the oil
Prepare for "weeks, maybe months" of higher oil prices
The US-Israeli war on Iran could leave businesses and consumers worldwide facing weeks or months of higher fuel prices, even if the war ends quickly, as suppliers deal with damaged facilities, disrupted logistics, and elevated risks to shipping. This is a global economic threat and a political vulnerability for US President Donald Trump, as the midterm elections loom and voters feel the pinch of higher energy bills and another Middle East war. The war with Iran has led to a blockade of the Strait of Hormuz, forcing the region’s top oil producers to suspend shipments of as much as 140 mil barrels of oil. This has led to oil and gas storage facilities in the Gulf filling rapidly, with oilfields in Iraq and Kuwait already forced to cut oil production. If the oilfields are forced to shut down production, it would take a while for them to return to normal. This could be anywhere from days to months, depending on several factors.

Quick throwback to the Arab oil embargo back in 1973, when Arab members of OPEC, led by Saudi Arabia, stopped oil exports to the US and other countries supporting Israel during the Yom Kippur War. The result? The price of a barrel of oil more than tripled, the US experienced its first fuel shortage since World War II, and a global recession driven by the oil shock and stagflation.

Iran's choice of supreme leader may indicate long war
However, a short war may not be on the cards, as the choice of Iran’s new supreme leader signals that hardliners remain firmly in charge, appearing to close off any path to a swift end to war. The new supreme leader, Mojtaba Khamenei, is the son of the previous supreme leader. Trump sees his appointment as unacceptable and told the media that if the new supreme leader does not meet US approval, “he’s not going to last long”.

Vet Rep Senator: We're going to make a tonne of money
Veteran Republican senator Lindsey Graham has gone on record to say that when the Iranian regime goes down, there will be a new Middle East where the US is going to “make a tonne of money”. Graham is a Trump ally and someone who has been pushing for war against Iran for decades. He is also one of Congress’ most vocal supporters of Israel. He appeared to suggest that the abduction of Venezuelan leader Nicolás Maduro and the attack on Iran were aimed at securing control over the oil supplies of the two countries. Graham said that the US having a partnership with 31% of the world’s known oil reserves is “China’s nightmare”.

The initials (OIL) reportedly prompted the renaming of Operation Iraqi Liberation to Operation Iraqi Freedom.

Business
Oil prices surge, bond selloff takes hold
Oil prices hit their highest since Jul 2022, reaching as much as USD111 (RM440) per barrel, as a result of the expanding US-Israeli war on Iran. Major oil producers have cut supply for fear of prolonged disruption to shipping through the Strait of Hormuz chokepoint, which has been blockaded by Tehran. Analysts predict that the UAE and Saudi Arabia will also have to cut output soon as storage capacity runs out.

As oil prices soared, investors began selling off bonds over concerns of inflation risks and what it could mean for the interest rate outlook. As prices fell, bond yields rose. Three-year Australian government bond yields surged to 4.59%, the highest since 2011, while 10-year yields reached 4.98%. Tokyo also saw Japanese government bond yields jump across the curve, even as the yen felt the pressure from the surge in oil prices.

Over in import-reliant Bangladesh, the government has closed all public and private universities across the country and launched fuel rationing as part of emergency measures to conserve electricity and fuel as it relies on imports for 95% of its energy needs. They also brought forward the Eid al-Fitr holidays to ease traffic congestion and prevent fuel wastage.

Airline shares face mounting pressure as oil passes above USD100
Airlines were another casualty of surging oil prices, with airfares soaring while airline shares dropped. The conflict and high oil prices have sparked fears of a deep travel slump and the potential for the widespread grounding of planes, leading to a sell-off in airline shares. Deutsche Bank analysts noted that a sharp spike in jet fuel costs in 2005 in the aftermath of hurricanes Katrina and Rita led to widespread and significant damage to the airline industry, resulting in major airlines Delta and Northwest filing for bankruptcy that same year. The rising oil prices from the Iran conflict could lead to such a situation if the pressure keeps mounting. Air Asia X tanked 14% yesterday.

Iranflation: Asian central banks thrown into uncertainty
In the post-Trump tariff world of 2025 and inflation moderating, Asian central banks were set to pause or slow rate cuts in 2026. However, the Iranian conflict has cast uncertainty on that outlook. Of the oil that flows through the Strait of Hormuz, nearly 90% goes to Asian countries. However, with that sea lane now closed by Tehran, stock markets across Asia have been volatile, with the region’s currencies coming under selling pressure.

5. FOR YOUR EYES 📺

1. The economics of airlines. London-NY is an eight-hour flight journey.

2. KTM Saloon Coach - its equivalent of first-class cabin.