☕️ Deputy PM: Malaysia's public transport usage rate only 25%

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

The floods that struck Malaysia in 2024 resulted in substantial losses, totaling RM933.4 mil, according to figures released by the Department of Statistics Malaysia (DOSM). Among the states, Kelantan experienced the most significant damage, with losses amounting to RM139 mil specifically in residential properties. The three districts within Kelantan that were most severely impacted were Pasir Mas, with losses of RM46.2 mil, followed by Tumpat at RM31.7 mil, and Kota Bharu with RM19.2 mil in damages.

"A Minecraft Movie" has become a significant success, estimated to have grossed USD900 mil worldwide. This makes it the highest-grossing movie of the year so far. This strongly suggests that Hollywood has finally overcome its long-standing “video game adaptation curse.” An anonymous studio executive noted that video games have now "replaced comic books as the next frontier of IP to be explored," emphasising that "fan service" – staying true to the game's characters, setting, and details – is key to creating successful video game movies, similar to the approach taken with superhero films during the Marvel Cinematic Universe era.

In India, road accidents are a daily occurrence reported in newspapers, highlighting a critical issue where, in 2023, over 172,000 people tragically died on the country's roads. This equates to an average of 474 deaths each day, or almost one every three minutes. Contributing to the high number of fatalities on India's roads in 2023 was a lack of basic safety measures, with 54,000 deaths attributed to individuals not wearing helmets and 16,000 to not wearing seatbelts. In 2021, drivers with learner permits or no valid license were involved in 13% of accidents. Furthermore, many vehicles on Indian roads are old and lack fundamental safety features such as seatbelts, let alone airbags.

3. IN MALAYSIA 🇲🇾

Traffic jam woes
The “fast, furious traffic”, a “red road”, was “a road of rapid, restless travel”, a “chaotic, crazy road” - a tongue twister, much? Yes, that is all to verbalise how severe our traffic congestion issue is. According to Deputy PM Ahmad Zahid Hamidi, the public transport usage rate in Malaysia is at a measly 25%, a langit dan bumi comparison, if we compare it to Singapore (67%), South Korea’s Seoul (63%) and Japan’s Tokyo (73%). It should not be surprising that, in a year, an average Malaysian in Kuala Lumpur spends at least 162 hours (6.75 days btw, or 1.85% of a year) in traffic congestion, according to the Tom Tom traffic index. Deputy PM Zahid admitted that only a combination of a reliable system and comprehensive awareness campaigns can nudge Malaysians to use public transport more often. However, change will not happen overnight, as there are currently more cars than people in Malaysia. At the end of 2024, there were 38.7 mil registered vehicles in the country vs the 34.1 mil population in Malaysia.

But what exactly has the government done to reduce road congestion, and have they worked?

• Short-term solution: The launch of the Rapid KL On-Demand service in 2024, a van-based system that adjusts routes based on real-time commuter requests, and the expansion of bus lanes on major roads such as Jalan Ampang and Jalan Genting Klang. Did it work? - Arguable. Despite the average daily number of passengers using public transport increasing by 24% in 2024, ridership merely returned to the levels seen before the COVID-19 pandemic.

• Medium-term solution: The soon-to-be-open 38km LRT3 line connecting Bandar Utama in Petaling Jaya to Johan Setia in Klang. Verdict? - Need to wait until it becomes operational in 3Q2025.

• Long-term solution: Putrajaya recently greenlit the MRT3 Circle Line project that will integrate MRT Kajang Line, MRT Putrajaya Line and other rail networks. Putrajaya is also mulling introducing congestion charges, but Loke indicated that such a policy will only be introduced after a ‘satisfactory’ public transport system is in place.

While the intra-city connectivity solutions within the Klang Valley have yet to produce convincing results to tone down the congestion issue, there has already been a call by international partners to enhance our inter-city and international public transport network. Thailand's ambassador to Malaysia, Lada Phumas, has recommended that the East Coast Rail Link (ECRL) project, which starts in Kota Bharu, be extended to the Sungai Golok border. Phumas added that there is already an existing rail station at Sungai Golok, so it is a low-hanging fruit to lengthen the ECRL’s alignment to the Thailand-Malaysia border. She stated that improved rail connectivity would provide a more affordable and efficient alternative for freight transport, compared to air and road options.

GISB CEO is getting closer to jail rather than heaven
The Federal Court today rejected a habeas corpus application by Global Ikhwan Services and Business Holdings (GISB) CEO Nasiruddin Ali and his wife, Azura Yusof, in regard to the duo’s detention under the Security Offences (Special Measures) Act 2012 (Sosma). The panel of judges, led by Chief Justice Tengku Maimun Tuan Mat, made the unanimous ruling after finding that the application had no merit. The Apex Court decision maintained the previous decision of the Johor Bahru High Court, which relayed the same decision in January 2025. Habeas corpus is a common-law writ used to correct violations of personal liberty by directing judicial inquiry into the legality of a detention. In short, “are you sure you have a good reason to arrest me?”

PM Anwar seeks stronger aviation ties with Russia
During his official visit to Russia, PM Anwar Ibrahim has invited Russian airlines, including Aeroflot, to resume direct flights to Malaysia as soon as possible. Aeroflot has stopped flying to KLIA since 2001, mainly due to losses from poor passenger loads and the redeployment of the aircraft to more viable routes. Founded on Mar 17, 1923, Aeroflot is among the world’s oldest airlines and one of Russia’s most recognised brands. In 2024, Aeroflot carried 30.1 mil passengers; 55.3 mil if other Aeroflot Group airlines are included. As a comparison, Malaysia Aviation Group, the parent company of Malaysia Airlines and FireFly, registered 16.6 mil passengers in 2024.

A funny exchange between PM Anwar and Putin on second wife - watch here.

Business news

• Proton launches RM4.8 mil Xchange Programme

  Proton Holdings Bhd has allocated RM4.8 mil to launch its ‘cash for clunkers’ initiative, dubbed the Proton Xchange Programme, to trade in old and unusable vehicles in exchange for a RM2,000 cash rebate (2,400 vehicles at most) in purchasing new Proton models, including the Proton e.MAS 7. According to Proton, vehicles must be at least 15 years old and in a condition deemed uneconomical to repair for continued safe use in order to qualify for the incentive.

• Malaysia, Japan ink deals worth RM1.34 bil in green bioeconomy partnership milestone

  Malaysian Bioeconomy Development Corporation (Bioeconomy Corp) has announced that Malaysia and Japan have signed RM1.34 bil worth of deals involving the development of renewable energy and the commercialisation of sustainable biotechnology products. Japanese companies such as Sumitomo Corporation, IHI Plant Services Corporation, and Respect Co Ltd are involved in the deals with multiple Malaysian companies.

• Awantec receives full and final settlement over scrapped SKIN project

  AwanBiru Technology Bhd (Awantec) has finally received its full and final settlement from Putrajaya, worth RM201.45 mil, due to the cancelled RM3.5 bil National Immigration Control System (SKIN) project. The SKIN project, initially awarded to Awantec in 2017, was a 15-year contract to upgrade Malaysia’s immigration system. However, it was later cancelled by the PH 1.0 administration led by Tun Dr Mahathir in 2018 to cut costs.

4. AROUND THE WORLD 🌎

The Art of The Deal - Live in Middle East
US, Qatar announce deals worth more than USD243.5 bil on aviation and defence
The pomp and pageantry continued as Trump touched down in Doha, Qatar on Wednesday. He met Qatari leader Tamim bin Hamad Al Thani, and the two proceeded with talks and praises, subsequently announcing deals amounting to more than USD243.5 bil. It is believed that these deals laid the groundwork for a bigger USD1.2 tril economic pledge between the two nations.

The first deal was made by Qatar Airways, securing an order to buy 210 aircraft from US manufacturer Boeing, namely the Boeing 777X and 787 planes with GE Aerospace engines worth USD96 bil - the largest order of jets in the history of Boeing.

Next are the defence deals - where the governments signed off on a USD1 bil agreement for Raytheon, a major American defence contractor, to provide counter-drone capabilities to Qatar. The agreement would make Qatar the first international customer for Raytheon’s integrated defeat system designed to counter unmanned aircraft. General Atomics secured a nearly USD2 bil agreement for Qatar to acquire MQ-9B drones. The two countries signed a statement of intent to bolster security partnerships that outlines more than USD28 bil in potential investments.

After ending his visit with a speech to the US troops at the Al-Udeid Air Base - the largest US military base in the region - Trump headed to Abu Dhabi in the United Arab Emirates (UAE) with hopes to seal a deal related to the exports of Nvidia AI chips to the Arab nation with big AI dreams.

Business
Starbucks is exploring options for its huge China business
Starbucks Corp. is reportedly assessing its business in China and considering options for the business in the region, including a possible stake sale. The company has reportedly contacted private equity firms to get the ball rolling, along with other entities to look at growth options for the business. If any transaction comes to fruition, the value of the assets could hit several billion dollars. Starbucks, which had more than 7,750 stores in China as of the end of March, generated about USD740 mil net revenue in the country in the quarter through March, while its close domestic competitor Luckin Coffee’s net revenue was USD1.2 bil in the same period. Starbucks did not make any further comments regarding the issue, but a representative stated that they are “committed to China” for the long term.

Trump wants Apple to stop moving iPhone production to India
In a comment made during his visit to the Middle East, Trump mentioned that Apple is now building all over India, and he is not particularly happy about it. He added that India has one of the highest tariff barriers in the world and it’s very hard to sell American products in the planet’s most populous country. However, he also noted that India has made an offer to drop the tariffs on US goods as part of the new tariff deal. Ultimately, Trump revealed that Apple will be “upping their production in the United States”.

Question is - is it really that easy to move production to the US? Apple had plans to import most of the iPhones it sells in the US from India by the end of next year, a move made to mitigate risks related to tariffs in China and to avoid geopolitical tensions. In fact, Apple has been moving away from China since the COVID-19 lockdowns, and the current situation only led to Apple accelerating its efforts. The bulk of India-made iPhones are assembled at Foxconn Technology Group’s factory in southern India, where Apple assembled USD22 bil worth of iPhones in India in the 12 months through March, increasing production by nearly 60% over the previous year.

Shorts:

1. UnitedHealth under probe for possible Medicare fraud

   The US Justice Department is now probing insurance company UnitedHealth for possible Medicare fraud, a type of fraud where insurers allegedly exaggerate how sick their patients are to boost profits under their Medicare Advantage programmes. UnitedHealth faced allegations in a long-running civil Medicare fraud case that it improperly overcharged the US government by more than USD2 bil. Last year, its CEO, Brian Thompson, was shot and killed by a man, allegedly Luigi Mangione. Some celebrated Mangione as he had drawn attention to steep US healthcare costs and the power of health insurers to refuse payment for some treatments.

2. Singapore’s Changi Airport to develop mega terminal as tourism booms in Asia

   Singapore is set to expand its world-renowned Changi Airport as it announced the development of a 5th terminal, expected to be operational in the mid-2030’s. The new terminal will allow the airport to handle 140 mil passengers per year from its current capacity of 90 mil passengers. PM Lawrence Wong said that the decision is to ride on the “rising trajectory” of air travel in Asia, and feed into its plan to increase tourism revenue in the city-state from a record-breaking USD29.8 bil in 2024 to between USD47 bil and USD50 bil in the next 15 years. Majulah Singapura.

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3. Mexican beauty influencer shot dead during TikTok live stream
   A young Mexican social media influencer was shot dead by a man in her workplace while she was live-streaming on TikTok - a case that is being investigated as femicide in a country that faces high levels of gender-based violence. She had nearly 200,000 followers across Instagram and TikTok, with her content focusing mostly on beauty and makeup. Latest data by the United Nations cited that Mexico has the fourth-highest rates of femicide in Latin America and the Caribbean, at 1.3 such deaths for every 100,000 women in 2023.
   Femicide: the intentional killing with a gender-related motivation

5. FOR YOUR EYES 📺

1. It is no secret that we’re big fans of Morgan Housel — if you’re in the mood to reflect, this is a great set of questions to learn about yourself. I did it over the long weekend. Surprise yourself.

2. Daft Punk’s One More Time came out more than 20 years ago — be amazed by how it was sampled.

3. There are merits not to using your phone the first thing in the morning (other than disabling your alarm).