☕️ MACC probes 'Tan Sri' in alleged RM500 mil money laundering of Sapura Energy Shares

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

16.6% – ASEAN maintained its position as China's largest trading partner in the first quarter of 2025, accounting for a significant portion of China's total foreign trade volume. The total trade between China and ASEAN for this period reached RMB1.71 trillion yuan (~RM1 trillion), marking a 7.1% year-on-year increase. Notably, Vietnam emerged as China's largest trading partner within ASEAN, with a trade volume of RMB0.46 trillion (RM27 bil), reflecting a 10.5% growth. Manufacturing products constituted the vast majority (90.1%) of China's trade with ASEAN countries.

USD 1.03 trillion (~RM4.4 trillion) – This is the staggering estimated amount lost globally to scams in 2023, according to a report by the Global Anti-Scam Alliance. The report also highlighted the low success rate of recovery, with only 4% of victims managing to fully retrieve their funds. Southeast Asian nations, including Cambodia and Myanmar, have become significant hubs for scam operations, which are alarmingly connected to human trafficking. In response to the growing prevalence of scams, banks, utilities, and financial payment providers are facing increasing pressure to enhance their customer protection measures.

There is a significant negative impact of missing even a small number of the market’s best-performing days on investment returns over the long term (2000-2024). A fully invested USD100,000 would have grown to USD568,212 — a return of 468.2%. Missing just the 5 best days reduces the final value to USD366,380, and missing more best days leads to progressively lower returns, even resulting in a loss if the 60 best days were missed. The central message is that staying invested ("time in the market") is crucial for maximising returns, as opposed to trying to time the market. Read: Missing the best days in the market

3. IN MALAYSIA 🇲🇾

Business news
BNM lowers reserve ratio to 14-year low
Bank Negara Malaysia (BNM) has announced that, despite the ruckus President Trump has caused in the global markets, its Monetary Policy Committee has decided to keep the overnight policy rate (OPR) at 3%, unchanged since May 2023. However, BNM has instead slashed its statutory reserve requirement ratio (SRR) by 100 basis points from 2% to 1%, the lowest level in 14 years. The SRR is the rate to calculate the minimum balance banking institutions need to keep in their Statutory Reserve Accounts (SRA). Lowering the SRR allows banks to lend out more money, and BNM expects the move to release RM19 bil into the banking system. In our attempt to oversimplify things, reducing the SRR is one of BNM’s economic expansionary tools, akin to slashing tax rates or increasing government expenditure. Same same but different.

Proton, Perodua tease new EV offerings
At the Malaysia Autoshow 2025, Proton Holdings Bhd has teased its new electric vehicle (EV) model dubbed the e.MAS 5, set to officially launch in 4Q2025. The B-segment hatchback will be offered in five different colour options and priced above RM100,000, according to an executive. During the autoshow, Proton’s local competitor, Perodua, also gave a sneak peek of its first EV, which is set to compete directly with e.MAS 5. While obviously Proton’s new EV is just a rebadge of Geely’s existing EV lineup, Perodua’s new model is developed locally by Malaysians at Rawang, Selangor, as Daihatsu has no suitable donor car for Perodua’s first EV. This EV is expected to be priced below RM80,000, but without the battery, and the company has now confirmed that Perodua’s EV will offer Battery-as-a-Service (BaaS) battery leasing – a first in Malaysia. Think subscription, like Netflix, but for EV batteries.

Shorts

1. Trenchless technology push could mean pipes fixed without digging up roads
   The days of uneven paved roads due to underground works may be over, as Deputy PM Fadillah Yusof said that Putrajaya is diving deeper into adopting trenchless technology to enable faster and safer construction of underground utilities such as sewerage systems, water pipelines, and telecommunications networks. Fadillah added that technology such as pipe jacking has made it possible to move away from the traditional method of digging up roads every time you want to install new pipes. Pipe jacking/microtunnelling is a non-disruptive method of installing utility tunnels and conduits by thrusting pipes through the ground. It is the same concept as tunnelling for the MRT Putrajaya Line, but at a much smaller scale.

2. Beleaguered Sapura now faces Tan Sri money laundering probe
   Bagaikan jatuh ditimpa tangga for the Sapura Group of Companies as they keep being barraged with one problem after another. First family disputes, and now the Malaysian Anti-Corruption Commission (MACC) is investigating a prominent figure for its involvement in laundering RM500 mil, believed to be linked to shares in Sapura Energy Bhd. The investigations point towards elements of corruption involving investments following the merger of SapuraKencana Petroleum Bhd and Sapuracrest Petroleum Bhd, which later became known as Sapura Energy Bhd. So far, 83 bank accounts belonging to five individuals and 15 companies, which amount to RM158.26 mil, have been frozen by the authorities.

4. AROUND THE WORLD 🌎

Trump things
US official warns Washington may advance Saudi-Israel deal without Israel
Trump is set to visit several Middle East countries next week, covering Saudi Arabia, Qatar and the United Arab Emirates. As the date looms, a senior US official has issued a warning that Washington will likely move forward with its deal with Saudi Arabia without Israel’s involvement, unless Israel changes its course. It seems like Trump is increasingly frustrated with Israel’s stance on the stalled ceasefire talks. The US official also said that Israel could pay “a much heavier price” if it continues to oppose a ceasefire deal. The proposed US-Saudi Arabia-Israel deal requires Saudi Arabia to formally recognise Israel, despite its long-time stance for a full Israeli withdrawal from occupied Palestine. In return, the US would offer Saudi Arabia a defence pact and access to advanced weapons, while urging Riyadh to scale back its growing ties with China and Russia. Also, the US promises support for a Saudi civil nuclear programme, though disagreements over uranium enrichment remain unresolved.

Trump will decide name for ‘Persian Gulf’ during Middle East visit
So “heavy” is Trump’s responsibility, and he also needs to decide what name the US will use to refer to the Persian Gulf during his upcoming visit to the Middle East. US media have reported the name will be the “Gulf of Arabia” or the “Arabian Gulf” as used by the Arab nations. While it seems like a petty matter of nomenclature, the name of the waterway has long been a source of tensions between Arab nations and Iran. Iran argues that the Persian Gulf is the appropriate name in light of historical evidence, including ancient maps, that show it is part of its territory, while the Arabic countries in the Gulf refer to it as “Arabian Gulf” or “the Gulf”. Note that in one of his first actions as president, Trump in January signed an executive order to rename the Gulf of Mexico as the “Gulf of America”.

UK is the first country to strike a tariff deal with the US
Meanwhile, the UK and the US are set to announce the first "full and comprehensive" trade agreement to lower the US-imposed tariff, making the UK the first country to strike a deal related to mitigating the new tariffs, which may offer relief to the British economy. The scope of the agreement is likely to be narrow, with Britain expected to secure lower tariffs on a tranche of steel and auto exports. In return, Britain is likely to offer some access to agricultural markets, with the US also seeking a cut to Britain’s digital sales tax, which affects US tech giants. Updates to follow as the event unfolds.

Apple says searches are shrinking and AI is now preferred over Google
AI might already be taking over Google’s search engine these days, judging by a statement from an Apple executive, who said that usage shrank for the first time ever in April for their Safari browser. He also said that Apple would likely add AI engines as search alternatives on its devices over time. It is believed that this could be a major reason why investors have been pouring money into AI companies like OpenAI at increasingly huge valuations: They're hoping that, at a minimum, they'll be able to carve out some of Google's ownership of the stock market. Note that Google is worth USD2 tril today. Google’s shares fell more than 7% shortly after the statement, but the company released its own statement disputing Apple’s claim, saying that they continue to see “overall query growth in search”, including an increase in total queries from Apple’s devices and platforms.

Shorts:

1. Sotheby's halts Buddha jewels auction after India’s legal threat
   The auction of hundreds of sacred jewels linked to the Buddha's remains, which is claimed to be among the most astonishing archaeological finds of the modern era, has been postponed by auction house Sotheby’s as the sale has ruffled India’s feathers. The artefacts were unearthed nearly 130 years ago by a British man in the area of Uttar Pradesh, hence the claim by the Indian government that the relics constituted "inalienable religious and cultural heritage of India and the global Buddhist community”. India is kind of right about this one.

2. Liam Payne left a staggering GBP24 mil fortune
   One Direction singer Liam Payne, who died in Argentina in October 2024, left a huge fortune but did not leave a will. The money, property and possessions he left are worth more than GBP24 mil (USD31.9 mil). The initial total gross value of his estate was GBP28.6 mil, but reduced to GBP24.3 mil after deducting debts and expenses. He was never married, but had a child, now 8 years old, with her partner Cheryl from Girls Aloud, who has also been appointed as an administrator of his estate along with music industry lawyer Richard Bray, albeit with limited authority.

3. India and Pakistan are major military spenders, and they both have nukes
   As India and Pakistan continue to exchange fire, the world is wary that a prolonged dispute could lead to a disastrous outcome, considering both countries are major military spenders and are armed with nuclear weapons. An interesting explainer article published by Al Jazeera shines some light on their military standings. According to Global Firepower’s 2025 military strength rankings, India is the fourth-strongest military power in the world, and Pakistan is ranked as the 12th strongest. But here’s to hoping that this conflict subsides soon.
   There are 9 countries in the world with nuclear weapons - the list here.

4. New Pope elected

   Meet Pope Leo XIV (14). The new pope is Robert Prevost, the first American pontiff, who is 69 years old. He was an American missionary who spent his career ministering in Peru and led the Vatican’s powerful office of bishops.

5. FOR YOUR EYES 📺

1. An interesting perspective — how animals get CT scan (computed tomography, aka CAT scan).

2. What’s driving the cost of health insurance? An interview with Mark, the CEO of Life Insurance Association of Malaysia (LIAM), with Mr Money TV.

Some cuteness overload to end the week. Happy long weekend folks!