☕️ Government proposes EPF-funded health insurance scheme

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

Malaysia's unemployment rate dropped to 3% in April, down from 3.1% in March, reaching its lowest point in 10 years. According to the Department of Statistics Malaysia (DOSM), the number of unemployed persons decreased by 0.7%, totaling 525,900 in April 2025, compared to 529,600 in March. Chief Statistician Dr Mohd Uzir Mahidin also noted that the overall labour force continued its upward trend, growing by 0.2% to 17.34 mil persons in April, up from 17.31 mil in March. This consistent improvement reflects a positive and strengthening employment landscape for the nation.

The global economy is facing its slowest decade for growth since the 1960s, a downturn the World Bank attributes partly to the effects of Donald Trump's tariffs. The bank’s latest predictions reveal widespread concern, with nearly two-thirds of countries seeing their growth forecasts cut compared to six months ago. The World Bank now forecasts global growth of only 2.3% in 2025, a 0.4% reduction from its January prediction, with a slightly higher 2.6% expected for 2027. Major economies including Japan, Europe, and the US have all been downgraded in this twice-yearly report. This bleak outlook aligns with a recent downgrade from the OECD, which now expects global growth to slow to a "modest" 2.9%, down from its previous forecast of 3.1%.

Pavel Durov, CEO and cofounder of Telegram, has revealed he has over 100 children, whom he plans to eventually share his billions with. The messaging platform boss told French outlet Le Point that he is the "official father" to six children from three partners, with the remainder of his numerous offspring, spread across 12 countries, resulting from sperm donation. The Russian-born entrepreneur, whose net worth is estimated at almost USD14 bil, explained he drafted a will at just 40 years old due to the inherent risks of his work and having "enemies from within powerful states."

3. IN MALAYSIA 🇲🇾

Major electricity reform - cheaper power bill coming soon
Come July 1, the new electricity rates for the period 2025 to 2027 will kick in and benefitting over 23.6 mil domestic users. The purpose of this restructuring is to balance between energy reliability, affordability and sustainability of the energy sector. As for us consumers consuming below 1,000 kWh, we won’t be affected much. In fact, can expect some savings (see table below). Some highlights of the restructuring:

1. Tariff categories will be based on voltage levels instead of customer activity types (eg. commercial, industrial).

2. Greater transparency in your bill with itemised components. There will be 3 main cost components: generation charge (e.g. fuel costs), network charge (cost of delivering power to premises) and retail charge (cost of customer service, billing, accounts management).

3. Time of Use scheme enhanced for customers with smart meter installations. You can time your energy consumption based on peak/off-period period to optimise your bill. Off-peak period runs from 10 pm to 2 pm (16 hours), for all seven days. Good news for EV drivers. 

 More info on TNB’s site here.

Government proposes EPF-funded health insurance scheme
Last week, Health Minister Dr Dzulkefly Ahmad said the government will propose a health insurance scheme, to be funded through Account 2 of members’ EPF, and it will be voluntary and not mandatory. This initiative aims to provided a broad option of insurance coverage, as currently, 32% of healthcare costs are paid out-of-pocket by patients without insurance protection. This model is nothing new as it draws inspiration from our countries, like our neighbour, Singapore, where members of its Central Provident Fund (CPF) can draw on their retirement savings to pay for medical expenses and health insurance premiums.

DAP Senator RA Lingeshwaran raised serious concerns over this scheme. Although it would ease the financial burden of people, this move could undermine the fundamental purpose of the EPF and affect the financial security of Malaysians post-retirement. Also, insurance companies could exploit this scheme by raising premiums, knowing that these policies would be EPF-funded. Instead, he proposed for the government to rein in healthcare costs, especially at private hospitals that are reaping high profits.

Najib gets DNAA in SRC International money laundering case 
The High Court has granted disgraced former PM Najib Razak a discharge not amounting to acquittal (DNAA) in his second SRC International Sdn Bhd case involving RM27 mil money laundering charges. Najib is not entirely off the hook. With a DNAA, the charges are temporarily dropped and prosecution are free to re-charge Najib.

So why did the court grant this DNAA then? In short, it was pending for too long and became unfair to Najib. This case was initiated in 2019 and has yet to enter trial. Despite 6 years, not even a single witness testimony was pursued with “plethora of postponements”, signalling that the prosecution is not ready with the case, according to judge K Muniandy. The judge added that once someone is charged, it cannot be “hanging over his head for an indeterminate or indefinite period” as it would be “harsh and illegal”. Either prosectuon is real inept or something else is brewing. 

Shorts

1. Coming to you this July 1: The Return of the KLIA Aerotrain
   Transport Minister Anthony Loke finally announced the return of KLIA Aerotrain this July 1. The aerotrain has been out of service since March 2023. There will be 3 Aerotrain sets, with 2 running concurrently while one remains on standby. Still not too optimistic on the reliability of this new system, knowing how Malaysia treats its infrastructure. In any case, the current bus shuttle system will still run concurrently as a mitigation measure.

2. Self-driving e-hailing coming soon
   The B in BAT (Baidu, Alibaba, Tencent) is reported to launch its Apollo Go robotaxi service in Malaysia and Singapore as early as this year. It is currently seeking for potential partners such as mobility service providers, local taxi companies and third-party fleet operators for an asset-light approach. Apollo Go has deployed more than 1,000 self-driving vehicles worldwide, mostly in China. It has clocked 11 mil rides by the first quarter of the year, surpassing Alphabet’s Waymo.

3. New IGP appointed
   Bukit Aman Special Branch director Datuk Seri Mohd Khalid Ibrahim has been appointed as the next. Inspector General Police, effective today, replacing Tan Sri Razarudin Husain, whose 2-year contract has come to an end. The Special Branch is an intelligence agency attached to the Royal Malaysia Police (PDRM) and is empowered to acquire and develop intelligence on internal and external threats to the nation. On another note, the outgoing IGP has called for the police force to be parked under its own ministry, in line with practices in other major countries. The proposal has been submitted to PM Anwar and Home Minister for consideration.

4. AROUND THE WORLD 🌎

Trump takes us one step closer to WWIII

Iranian nuclear sites "obliterated", says Trump
The US president said Iran’s main nuclear sites were “obliterated” overnight with strikes using bunker-busting bombs dropped by B2 stealth bombers, marking the US throwing in behind Israel’s offensive against Iran. Trump called the operation a “spectacular military success” and also warned Iran against retaliation, saying more devastating attacks will come if Iran does not agree to peace. Tehran has vowed to defend itself, responding with a volley of missiles at Israel. Iran has also called the US attack a “grave violation of international law” that will have “everlasting consequences”. The Malaysian government has previously ordered the immediate closure of Malaysia’s embassy in Iran and recalled all staff due to the escalating tensions.

Trump says nuke intelligence "wrong"
Trump also said his director of national intelligence was “wrong” when she testified that Iran was not building a nuclear weapon and that Iranian Supreme Leader Ayatollah Ali Khamenei had not reauthorised Iran’s suspended nuclear weapons programme. Trump had previously cast doubt on his national intelligence director, saying he did not care that the intelligence community’s findings contradicted his own claims that Iran was in the late stages of developing a nuclear weapon. Though the director later defended Trump, her statement that America has intelligence that Iran is “at the point that it can produce a nuclear weapon within weeks to months, if they decide to finalise the assembly” does not address her previous assessment that Iran is not building such a weapon.

Joining the fight a huge gamble for "peace"
Trump is also taking a huge and dramatic gamble by stepping into the Iran-Israel conflict, saying he hoped the strike would “open the door to a more lasting peace” where Iran “no longer had the potential to become a nuclear power”. The thing is, his previous warning to Iran to “unconditionally surrender” had a two-week time limit, but this was dramatically shortened to two days. Following the strike, Trump said that there were “many targets left” and that the US would go after them with “speed, precision, and skill” if Iran refused to abandon its nuclear programme. The US defence secretary has clearly stated that the strike on the nuclear sites is not a prelude to a regime change, adding that messages had been sent to Tehran encouraging them to negotiate.

Trump has also drawn criticism from his own countrymen, with not only Democrats but also some fellow Republicans questioning his move to throw the US into the conflict. Democrats accused Trump of violating the US Constitution by launching the military attacks without Congressional approval. He also allegedly violated the War Powers Resolution of 1973, which curbs the president’s war-making powers, and there was no legal justification for strikes. Funny that Pakistan wants to recommend Trump for the Nobel Peace Prize, considering he ordered the strike.

Another funny throwback where Trump says Obama will attack Iran due to “his inability to negotiate properly”.

Of Tesla and Labubu

Tesla to build first grid-scale power plant in China
An agreement was inked between Tesla Shanghai, Shanghai authorities, and China Kangfu International Leasing Co to build Tesla’s first grid-scale energy storage power station project in mainland China. The project, which costs USD556.4 mil, will help with the flexible adjustment of grid resources, and “effectively solve pressures relating to urban power supply”. The project is expected to become the largest grid-side energy storage project in China. Such energy storage systems help to enhance stability in the electricity grid at a time when there are greater supplies of solar and wind power.

Labubu shares dip as Chinese authorities call for more oversight
Pop Mart International, the company behind the Labubu blind-boxes, saw its shares falling over 5% on two consecutive days, following a Chinese state media commentary that reignited concerns over the blind-box toy sector. Pop Mart is a leader in this sector, being famed for its wildly popular Labubu dolls. The commentary urged tighter regulation of “blind cards” and “mystery boxes” and highlighted concerns that such products could lead to addictive buying behaviour among minors. While Pop Mart was not named specifically, investors were rattled. Still, Pop Mart’s shares have surged nearly 170% in 2025, due to the pop-culture frenzy over its figurines. The company is still worth a cool USD40 bil.

Shorts

1. Hot air balloon crash in Brazil kills at least 8

   The tourist hot air balloon with 21 on board caught fire before crashing in the city of Praia Grande. At least 8 are dead, with the survivors rushed to the hospital. Sobrevoar, the company responsible for the balloon, defended the pilot, but also stated it was suspending all operations for an indefinite period. This follows a separate incident last week, where a balloon came down in São Paulo state, killing one and injuring 11 others. Watch incident here (warning - graphic).

2. NHS plans to DNA test babies to assess disease risk

   The UK healthcare system will be mapping the DNA of every newborn baby in England for the next ten years to assess their risk of hundreds of diseases, and is part of a government drive towards predicting and preventing illness, which will also see USD874.8 mil invested in DNA research for all patients by 2030. This will also serve to ease pressure on services and provide faster diagnoses.

3. FedEx founder dies aged 80

   Frederick Smith, founder and executive chairman of FedEx, died at the age of 80, according to an announcement by the company’s CEO. Born in 1944, Smith founded 1973 after serving in the US Marine Corps. The company started with 389 staff and 14 small planes, and now has over 500,000 employees, with a fleet of 705 aircraft and 200,000 vehicles. Fred Smith did famously take the company’s remaining $5,000 to Las Vegas in the early 1970s and turned it into about $27,000 playing blackjack. That money covered a critical fuel payment and bought time to secure additional funding. Watch Fred sharing his story here.

5. FOR YOUR EYES 📺

UBS released its latest Global Wealth Report 2025

1. Where wealth resides

2. Wealth per adult.

3. The global wealth pyramid

Pacu Jalur is Indonesia’s version of the dragon boat race, with an extra dose of vibe. Have a good week ahead and vibe hard like the dancing kid leading the boat.

lokimitdermaske

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