☕️ First in Malaysia: Prosecuted for undergoing gender reassignment surgery in Kelantan

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

2025 was the third-warmest year on record, and no relief from the heat is expected in 2026, according to European scientists. Data from the European Centre for Medium-Range Weather Forecasts showed that the average global temperature in 2025 was 1.47 degrees Celsius above the pre-industrial level. 2024 was the warmest year on record, with 2023 ranking second. The period from 2023 to 2025 also marked the first time average temperatures exceeded the 1.5 degrees Celsius limit set out in the Paris Agreement over a three-year span.

Malaysia lost about 20% of its coral reefs, about 47,250 football fields worth, over the past three years, according to Reef Check Malaysia’s Annual Survey Report 2025. The report assessed 297 reef sites across the country and concluded that Malaysia is looking at an unsustainable loss of 10% of coral cover annually. The ongoing decline was attributed to multiple stressors, including the fourth Global Coral Bleaching Event in 2024, as well as unsustainable tourism activities, pollution, coastal development, and destructive fishing practices. Reef Check Malaysia called for stronger reef protection measures, particularly through reducing local stressors and expanding the role of coastal communities in conservation efforts. The group also called for a shift away from mass tourism towards more sustainable practices, stressing that it was ‘not anti-tourism, but pro-sustainable tourism’.

In energy news, TNB reported that it has the potential to deliver up to 5,000MW of data centre demand by 2035. Currently, TNB has 27,690MW of installed generation capacity, supported by 26,000km of transmission lines and 734,000km of distribution networks. TNB is strategically positioning Malaysia as a green data centre regional hub through initiatives such as Green Lane pathways, which accelerate data centre connections from 36 months to just 12, as well as dual-supply reliability frameworks and renewable energy integration. TNB has a set target of 10GW of renewable energy capacity by 2030, including 500MW of solar and 2.5GW of floating solar.

3. IN MALAYSIA 🇲🇾

First in Malaysia: Prosecuted for undergoing gender reassignment surgery in Kelantan

First-of-its-kind prosecution: Kelantan has recorded its first prosecution for the offence of gender transition under the Syariah Criminal Code Enactment (I) 2019, believed to be the first such case in Malaysia since the law was gazetted in 2020. The case involves a trans woman and was heard at the Kelantan Syariah Court in Kota Bharu last month. Under the enactment, sex reassignment surgery is prohibited for Muslims, with an exception only for intersex individuals. Justice For Sisters co-founder Thilaga Sulathireh said Kelantan is currently the only state with a specific provision criminalising sex reassignment.

Arrest, charge and penalties: Sources said the Kelantan Islamic Affairs Department arrested the accused earlier this year during an operation targeting an event involving transgender individuals. The accused pleaded not guilty and the case remains at the case-management stage. If convicted, the offence carries a fine of up to RM3,000, imprisonment of up to two years, or both. The details of the case have not been publicly disclosed to protect all parties involved.

Wider legal and policy context: The National Fatwa Council ruled in 1983 that gender change is forbidden under Islamic law, maintaining that a person’s legal gender remains unchanged after surgery. While the Court of Appeal ruled in 2014 that a Negeri Sembilan provision penalising Muslim men for posing as women was unconstitutional, the Federal Court later overturned the decision on technical grounds. More recently, federal authorities have signalled intentions to strengthen laws preventing sex reassignment, including proposals to classify gender change as a specific syariah offence and to regulate related online content.

From prison walls to palace hall and a PhD
Selangor ruler Sultan Sharafuddin Idris Shah granted an audience to Malik Yatam, a former prisoner who spent 24 years behind bars and was pardoned in Dec 2024, in conjunction with the Sultan’s birthday celebrations. The meeting, held in Petaling Jaya, marked the first time the Selangor ruler met a former inmate whom he had personally granted a full pardon. Malik was convicted at 14, after killing his employer during a fit of anger, and was subsequently ordered to be detained at the pleasure of the Sultan of Selangor, the state where the offence occurred.

He began serving his sentence in 2001 and later became the country’s first inmate to earn a doctorate while in prison. During his incarceration at Kajang Prison, Malik completed his SPM and went on to obtain a diploma, bachelor’s degree, master’s degree and a doctorate in business administration. According to the Selangor Royal Office, Sultan Sharafuddin enquired about Malik’s life after release and his future plans, and was deeply moved by his journey of reform.
For those interested, he shares his journey here in his TikTok account. In another similar story, we might get a Dr Najib Razak in the future - the disgraced former PM is pursuing a PhD in Economics behind bars.

Shorts

1. Health Ministry launches rare disease database

   Malaysia is setting up a national rare disease registry under the Health Ministry’s new policy framework to improve early diagnosis, strengthen clinical governance and expand access to specialised treatment. Health Minister Dzulkefly Ahmad said the registry will support continuity of care, sustainable financing and research, while giving visibility to an estimated 12,000 patients across nearly 500 types of rare diseases are currently receiving treatment nationwide.

2. MACC cracks down on alleged prison bribes

   The Malaysian Anti-Corruption Commission remanded 11 enforcement officers in Bintulu over allegations of soliciting and receiving bribes totalling around RM239,000 to protect and assist inmates. Arrested on Monday, the male suspects, aged between their 20s and 40s, allegedly accepted payments via bank transfers to family members from 2020 to 2025.

3. E-waste imports officially banned

   Malaysia has fully banned the importation of electronic waste, effective Wednesday, with e-waste now classified under the Absolute Prohibition category in the Customs (Prohibition of Imports) Order 2023. Previously, the director-general of the Department of Environment had the discretionary powers to grant exemptions for the importation of e-wastes. Anyways, short recap - the DOE DG and deputy DG have been detained by MACC over allegations of abuse of power and corruption related to e-waste management.

4. AROUND THE WORLD 🌎

Melinda Gates shares ‘painful times’ during marriage amid new Epstein files reveal
Billionaire philanthropist Melinda French Gates shared in a recent interview that the naming of her ex-husband, Bill Gates, in the latest Epstein files dredged up ‘painful times in her marriage’. She believes that the people named in the records, including her former husband, need to answer for them. Notably, Bill Gates, who is also the co-founder of Microsoft, has not been accused of wrongdoing by any of Epstein’s victims, and his name being included in the files does not imply criminal activity of any kind. US media have reported that, before their separation, Melinda was upset about her husband’s association with Epstein.

In the files, Bill Gates’ name came up in two emails in 2013, both of which appear to have been drafted by Epstein, and it is unclear whether or not they were ever sent to Gates. The first email was written as a resignation letter from the Bill and Melinda Gates Foundation while complaining about Epstein having to procure medicine for Gates ‘to deal with the consequences of sex with Russian girls’. The second complained about Gates having ended a friendship, and made further claims about Gates trying to cover up a sexually-transmitted infection, including from his then-wife, Melinda. Following the latest allegations of an STI, a spokesperson for Gates said the documents demonstrate Epstein’s frustration that he did not have an ongoing relationship with Gates, and revealed the lengths he would go to ‘entrap and defame’. The spokesperson also denied the claims of an STI, calling the claims absurd and completely false.

US, Iran to hold nuclear talks in Oman as Netanyahu warns of Iranian bad faith
The nuclear talks in Oman are expected to take place on Friday, even as a possible confrontation looms amid a US build-up of forces in the Middle East. US President Donald Trump has warned that ‘bad things’ would probably happen if a deal could not be reached, particularly as the US has already agreed to an Iranian request to move the talks from Turkey to Oman and for the scope of the talks to be narrowed. The talks will be between US Special Envoy Steve Witkoff and Iranian Foreign Minister Abbas Araqchi, with Trump’s son-in-law, Jared Kushner, also taking part. Trump had demanded three conditions for the resumption of talks: zero enrichment of uranium in Iran, limits on Tehran’s ballistic missile programme, and an end to Iran’s support for regional proxies. Iran has long said that all three demands are unacceptable infringements on its sovereignty.

On this matter, Israeli PM Benjamin Netanyahu offered advice to Witkoff, warning that Iran was unlikely to honour any potential agreement. In a meeting between the two, Netanyahu ‘made clear his position that Iran has repeatedly proven that its promises cannot be trusted’, according to a statement from the Israeli PM’s office.

Business

Anthropic’s new chatbot plug-ins trigger sell-off in data analytics and professional services
Global shares dipped as a sell-off in data analytics, professional services, and software providers deepened following Claude AI parent Anthropic’s launch of plug-ins for its Claude Cowork agent. These plug-ins raised worries about an AI-fuelled disruption to those industries. A chief markets strategist said this was the market telling those providers to address the AI threat to their business models, with the solution likely to involve partnerships with an AI provider. Meanwhile, precious metals saw an extended recovery, with spot gold reclaiming the USD5,000 (RM19,660) level, bringing gains to 9%, the largest such gain since late 2008. Silver also recovered from a vicious two-day sell-off to reach nearly USD90 per ounce.

Anti-embarrassment clause key to Pinault’s Puma exit
François-Henri Pinault recently sold his family’s controlling stake in sportswear brand Puma to China’s Anta for USD1.8 bil (RM7.1 bil), which was not as much as he wanted. However, sources revealed that the deal was sealed due to Anta throwing in a sweetener in the form of an ‘anti-embarrassment clause’ (or in our words, save-face clause). The sweetener was thrown in following a cool initial reaction to Anta’s offer of EUR35 (RM162) per share in cash for Pinault’s 29% stake. Anta agreed to pay Artemis, Pinault’s family business, an additional amount calculated under a formula, should anyone make a bid to buy more Puma shares or take the firm private within 15 months of the deal closing. This meant Artemis would not need to hold out for a higher price, but would still share in any near-term upside if a higher offer emerges later. Not too bad a deal for Pinault - have your cake and eat it too works for once. 

You have a 37% chance of avoiding cancer
The report (view here) from the World Health Organisation found that nearly 4 out of 10 cancer cases worldwide, or about 7 mil cases, were preventable. The report analysed 18.7 mil new cancer cases in 2022, and researchers found that 37% were linked to 30 modifiable risk factors, including smoking tobacco, infections like HPV and hepatitis B, and consuming alcohol. Stomach, lung, and cervical cancer accounted for almost half of all preventable cancers in the report. This report also follows the recent news that colon cancer is now the leading cause of cancer death in people under 50. Medical experts called for a diet rich in whole foods and reduced ultra-processed foods, such as the Mediterranean diet, which focuses on lean protein, fruits, vegetables, whole grains, nuts, and legumes. Other steps include exercising for at least 30 minutes every day, whether strength or cardio training, which has been found to prevent colon cancer resurgence.

5. FOR YOUR EYES 📺

MAS and AirAsia bosses talk

1. Capital A CEO Tony Fernandes shares more with FAQ Show on the group’s future post-restructuring into 5 core businesses: AirAsia (aviation), MOVE Digital (travel app, fintech services), Teleport (logistics, cargo), ADE (maintenance, repair and overhaul) and Capital A International (brand licensing and management). Watch more for couple of exclusive announcements by Tony.

2. Malaysia Airlines Group (MAG) CEO Captain Izham Ismail on BFM recounts his journey turning the company from being “technically bankrupt” to profitability since 2023. Full interview here. Up to Nov 2020, Khazanah has injected a total of RM28 bil into the group.