☕️ Local films 1 - 0 Hollywood at the box office

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

JPY29.1 bil (RM746.37 mil) – That was the total value of Japan’s agricultural, forestry, fishery, and food exports to Malaysia in 2025, a 26.3% increase year-on-year compared with 2024. This also ranks Malaysia in 10th place among all export destinations for these products from Japan, up from 13th place previously. Malaysia has been highlighted as a key market for Japan in Southeast Asia, according to the Japan External Trade Organisation, and success here could serve as a valuable framework for promoting Japanese cuisine and food products across Asean and other Muslim-majority markets.

At least 4,300 – The current Ebola outbreak in the Democratic Republic of Congo, declared 15 May this year, is on track to surpass the deadliest outbreak of the disease ever, having recorded at least 4,300 cases, of which more than 2,000 resulted in deaths (~46.5% death rate). According to the World Health Organisation (WHO), the 2026 outbreak, at its current pace, would “eclipse” the 2014-2016 outbreak, which killed at least 11,000 people. The organisation hoped to reverse the spread of the disease within three months, but warned that this meant bringing transmission under control, not ending the outbreak entirely. While the outbreak was only officially declared in May, health officials believe it began at least three months before. The current outbreak is caused by the rare Bundibugyo species of Ebola, for which there is no approved vaccine or recognised therapeutic treatment.

USD850 (RM3,451.08) – This was the European spot price of a kg of yttrium, a rare-earth metal used in electronics and defence applications, when it hit a record high earlier in Feb. In comparison, the price of a kg of yttrium in Feb 2025 was USD6, meaning the price rose over 140 times in the course of a year. The surge in price was due to China imposing export controls on seven rare earths in Apr 2025, one of which was yttrium. China also accounted for the majority of yttrium production, leading to a supply-demand imbalance that was especially concerning due to the high consumption of the metal. Yttrium is commonly used in LEDs and medical laser devices as well as coatings for components of semiconductor-manufacturing equipment. It is also used to enhance heat resistance in aircraft engines. European yttrium spot prices went on to reach a new high of USD1,100 per kg as of May.

3. IN MALAYSIA 🇲🇾

Friends today, enemies tomorrow
PH might ally with BN for Melaka state election
An enemy of my enemy is my friend. Pakatan Harapan (PH) is opening its doors to discuss electoral cooperation with Barisan Nasional (BN) for the upcoming Melaka state election, according to PH Secretary-General Saifuddin Nasution Ismail. But it is unclear who PH will ally with, as it just opened up negotiations last week with any party to form a coalition.

Melaka PH Chairman Adly Zahari said that two series of meetings were held so far to assess the coalition’s prospects. PH has not started any talks with Melaka BN yet, but Saifuddin seems optimistic as he said, ‘Ab Rauf (Melaka Chief Minister) is an old friend of mine, and we are constantly in touch … and I make it a point to drop by his house for asam pedas whenever I am in Melaka’. So far, nothing is set in stone yet. Most of PH’s preparations for the state election are done internally. We do know that Saifuddin will probably be eating asam pedas. But will he feel the heat if BN refuses to cooperate with PH?

Awaiting PN’s response.

UMNO’s ‘electoral gain’ moves are not backstabbing
While PH is hoping for cooperation with BN in Melaka, things are moving in the opposite direction for UMNO. UMNO Supreme Council Member Ahmad Maslan came out to say that UMNO’s political moves in several states are ‘strategic measures’ to maximise electoral gains, not acts of betrayal. At the recent PKR national convention, some have claimed that Umno was dishonest and was ‘backstabbing’. Along these lines, it seems that loyalty is never part of strategic measures.

Ahmad was shrewd enough to say that there were no agreements with PH at the state levels in Johor, Negri Sembilan and Melaka. So, technically (or politically), the party can pursue strategies that offer the best chance of victory. He went on and said that UMNO remains committed to the unity government at the federal level, in line with the agreement signed. Basically, he’s saying that whatever happens at the federal level stays at the federal level but don’t question UMNO on what it does at the state level.

Higher minimum wage incoming?
Good news? The Malaysian government is reviewing the RM1,700 minimum wage, according to Human Resources Minister R. Ramanan. As usual, this will take into account things like the poverty line income, median wage, consumer price index, labour productivity and unemployment rate. Minimum wages are reviewed once every two years. Two other issues were raised: living wage and progressive wage policy. The living wage was first discussed by Bank Negara Malaysia in 2018 (starting from RM2.7k per month for a single adult). It basically specifies the wage needed to afford an acceptable standard of living.

Department of Statistics Malaysia (DOSM) publishes a statistic called Decent Living Expenditure that takes into account location, demographic and household spending patterns. Meanwhile, about 5,910 employers have applied to participate in the Progressive Wage System program, with 4,025 raising their employees’ salaries and submitting claims for government incentives. The program has benefited 51,363 workers so far.

Let’s hope that the minimum wage can be adjusted upwards again to benefit most Malaysians. More than 1.8 mil workers have wages that are below RM2,000 per month.

Local films 1 - 0 Hollywood
It’s not often Malaysians watch more Malaysian films than Hollywood or foreign films but 2026 might be the year. According to the National Film Development Corporation Malaysia (Finas), local films recorded 7.55 mil admissions through Jul, higher than the 6.94 mil admissions for Hollywood releases. Five Malaysian films have crossed the RM10 mil mark, which are:

1. Tarung: Unforgiven (RM20.6 mil)

2. Polong (RM15 mil)

3. Libang Libu (RM14.1 mil)

4. Malaikat Malam (RM12.2 mil)

5. Ah Beng vs Liang Po Po (RM10 mil)

At least for now, Malaysians are showing up more to support local films and helping them achieve commercial success. Local productions are holding the top spot for weeks, beating out foreign films like Mortal Kombat II and Michael. And they have more to look forward to. Chelot: Terbang is an action-crime thriller biopic inspired by the legendary Malaysian rally driver Karamjit Singh. Others include Baga: Tomorrow Belongs to No One, Takluk 2: Op Daulat, and Kudrat 1968.
However, local films might face some really intense competition by the year-end as Avengers: Doomsday is slated for release on Dec 17.

Chelot: Terbang trailer:

Got milk? Dutch Lady scores highest profit in five years
Dutch Lady is back with the milk. Profit for Q2 rose by 63.2% to RM38.2 mil, the highest in five years. Meanwhile, revenue was also up by 3% to RM386.6 mil due to higher sales from its core liquid milk range. Based on its Q2 report, it no longer has ‘transition-related one-off costs incurred’ in 2025. These one-off costs were related to the construction and commissioning of the new distribution centre in Bandar Enstek which has been fully operational since Jul 2025.

Dutch Lady said that demand for essential nutrition products remains resilient but warned that inflationary pressures and shifting consumer spending could affect purchasing behaviours. It will keep an eye on raw materials pricing and manage its supplies amid geopolitical uncertainties (this probably refers to the Middle East conflict) and commodity price volatility. Its 2026 outlook has not changed much as it reiterates that it is ‘cautiously optimistic’, consistent with its Q1 2026 outlook.

At RM35, market cap stands at RM2.02 bil. View earnings here.

4. AROUND THE WORLD 🌎

Trunpopular
President Donald Trump’s approval rating has fallen to the lowest level of his presidency, with just 33% of respondents approving of Trump’s job performance. The poll, conducted over the course of four days, found 64% of Americans disapproved of how he is handling his job. An overwhelming majority of Americans are also concerned by the continuing war on Iran, mostly economically, as it has dramatically impacted the country’s gasoline prices, up nearly a third compared to a year ago. Moreover, a Politico poll has recently revealed just a third of self-identified Make America Great Again (MAGA) voters, typically the most unquestioning of Trump’s base, felt the economic costs of the war with Iran were worth it.

Trump threatens to bomb US ally Oman
Meanwhile, Trump has threatened to bomb Oman - a US ally - if it "gets in the way" of his administration's own talks with Iran. The US and Oman have been negotiating separately with Tehran to reopen the Strait of Hormuz, with Oman remaining a neutral country in the conflict. In an interview with Fox, Trump was quoted as saying: "If Oman gets in the way, we'll bomb the sh*t out of them", although it was not clear what Trump thinks would constitute getting in the way of his ambitions for a deal.

Trump administration will “not allow Gaza to be rebuilt” until Hamas disarms
Trump’s son-in-law and special envoy Jared Kushner has said that Trump’s administration will not allow reconstruction in the devastated Gaza Strip until Hamas gives up its weapons. He also added that the US is not going to restrict Israel’s right to defend itself if there are any imminent threats. Meanwhile, Israel has been launching near-daily attacks on Gaza, killing at least 1,265 people in the enclave since a “ceasefire” came into effect last year. Although Hamas has agreed to disarm in a US-backed process that includes Israeli withdrawal, Israel has rejected the proposal, saying that it would not make any concessions until Gaza is fully demilitarised. In other words, Israel wants to stay until Hamas is fully out, but it is not clear if they will ever leave.

Biz:
Anytime Fitness Asia’s owner weighing USD400 mil sale
Anytime Fitness Asia’s owner, Inspire Brands Asia, is considering selling the gym operator in a deal that could be valued at USD400 mil (RM1.62 bil), including debt. The company runs Anytime Fitness in eight Asian markets, backed by some of the top submaster franchisees in the region as well as Exacta Capital Partners and Aura Group. Anytime Fitness Asia has a network of over 600 clubs across Singapore, the Philippines, Hong Kong, Malaysia, Indonesia, Taiwan, Thailand and Vietnam, including more than 150 company-owned locations.

Google bought Spirit Airlines' old data for USD10 mil to improve its AI
Google’s Alphabet has won a bankruptcy auction for Spirit Airlines' internal business records with a USD10 mil (RM40.6 mil) bid, beating rival Mercor who bid at USD7.5 mil. Google said the treasure trove will help them improve their products and AI models. The enterprise data is said to include millions of company emails, chats, lines of code, algorithms and metadata, pricing models, flight behaviour data, revenue, employee productivity records, audit and fraud data, as well as millions of payroll records, with employee data dating back to 1986. Knowledge and data are power.

Porsche to phase out electric Taycan
German sports car maker Porsche will be phasing out the Taycan, its flagship fully electric model, by 2030, due to declining sales. Car sales have dropped from nearly 41,000 in 2023 to just 16,000 last year, and only 6,000 in the first half of 2026. The Taycan was launched in 2019 to mark the company’s embarkation on a major shift away from combustion engines. It is one of Porsche's two fully electric models currently on sale, alongside the Macan Electric SUV launched in 2024. In the bigger picture, the entire German car industry is in crisis as it battles weak demand in Europe, volatile US trade policy, tepid demand for e-vehicles and fierce competition from Chinese rivals.

Shorts:

1. British PM Burnham duped by White House impostor
   British PM Andy Burnham has reportedly had a conversation with someone who was posing as the US White House Chief of Staff Susie Wiles, although sources said that they were “of no significance”. The British Embassy in the US was reportedly extremely concerned about the incident, but the White House confirmed that the incident had “nothing to do with the Chief of Staff’s devices being hacked”. Last year, the FBI warned of “malicious actors” misusing AI to impersonate senior government officials as it launched an investigation into an imposter who posed as Wiles and contacted senior Republicans and business officials.

2. South Korea president calls for military independence over US
   Trump has decided to “substantially reduce” the Ulchi Freedom Shield joint military exercises with South Korea - one of two main annual exercises held by South Korea and the US - citing a “good relationship” with North Korean Kim Jong-un. In response, South Korean President Lee Jae Myung has renewed his push to regain independent control of the military from the US in the event of war, as well as urging faster progress in acquiring nuclear-powered submarines for the South Korean army. Today, South Korea hosts Camp Humphreys, the largest American military base outside the US and the two militaries have been training and operating together closely since the armistice of the Korean War.

5. FOR YOUR EYES 📺

Scary, scarier, and scariest

1. TLDR on Hungry Ghost Festival. Traditions during this period is out of habit or fear. The origins of it was established as a period of compassion, remembrance, and balance between the 2 realms (human and underworld) that temporarily overlap.

2. Olympics for Robots is here - the 2nd World Humanoid Robot Games set to open this Saturday in Beijing, featuring 2,056 robots from 16 countries, 51 events. The scary part - seeing these robots marching.

3. The scariest - being 24 years old, 10x your fund performance in 2 years, then blow it up from USD45 bil down to USD10 bil - few days before your wedding. Welcome to life of wunderkind Leopold Aschenbrenner and his AI hedge fund, Situational Awareness.