☕️ Malaysia’s barrierless toll system delayed until 2027

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

The Malaysian government was crowned the overall top bond issuer for the second quarter of 2025, with total issuances amounting to RM40 bil. The title of most actively traded bond went to the government’s as well, with the bond valued at RM475.1 bil. These rankings come courtesy of Bond Pricing Agency Malaysia’s (BPAM) Bond League Tables. On the corporate side, Saracap Ventures was named the top corporate bond issuer, with RM1.75 bil issued, while Cagamas issued the most actively traded corporate bond, valued at RM1 bil. The top arranger is CIMB Investment Bank, with RM12.6 bil in value across 115 issuances. Top sukuk issuer went to the Public Sector Home Financing Board with RM4.8 bil in bonds issued, while top traded sukuk went to Danainfra Nasional, with the sukuk worth RM9.4 bil.

Still on bonds, the government has indicated it may slow bond issuance in the next six months in order to meet its narrower budget deficit planned for the year, with gross issuance expected to moderate to RM90 bil issued at most. Meanwhile, foreign holdings saw their biggest surge ever with a fresh record high of RM282.4 bil in May, which is about 22.5% of the government’s total issued bonds. The government is attempting to trim its long-running budget shortfall as a proportion of economic output to 3.8% this year from 4.3% last year.
Learn: Bonds: How they work and how to invest

Meanwhile, swan numbers on the River Thames in England are back on the up, after two years of worrying decline. The traditional counting of the swans, called “swan upping”, saw 115 young swans this year, compared to the 86 from 2024, a sign that the disappearance of the avians is being reversed. The swans’ numbers plunged 45% due to the bird flu and human cruelty, with reports including mentions of swans being attacked by catapults and air guns. The King’s Swan Marker was delighted with the findings, as the fall in numbers meant the classic image of swans on the Thames became an increasingly rare sight.

3. IN MALAYSIA 🇲🇾

Series U-Turn: No tax on high-value goods amid industry pushback and definition disputes
Malaysia’s long-anticipated High-Value Goods Tax (HVGT), originally set to take effect on May 1, has been shelved after the MOF failed to table the HVGT Bill in the recently concluded parliamentary session. First proposed in the revised Budget 2023 and expected to generate RM700 mil annually, the tax was to apply a 5%–10% rate on luxury items such as jewellery and watches. However, ongoing disagreements over the definition and price threshold of ‘high-value goods’ despite consultations with retailers and tax professionals have delayed its rollout. Retailers, particularly jewellers, have raised concerns that a low threshold could hurt working-class buyers who view gold as an investment or gift. The Malaysia Gold Association has proposed a RM50,000 threshold and a 5% rate to cushion the impact. Parliament will reconvene from June 24 to Jul 18, but no new date for implementation has been confirmed.

Malaysia’s barrierless toll system delayed until 2027
Malaysia’s long-awaited barrierless toll system, known as the multi-lane free flow (MLFF), is now only expected to roll out by 2027 at the earliest, according to the Works Ministry. The delay stems from the need for new regulations, and Cabinet approval before formal talks with highway concessionaires begin. First proposed nearly 20 years ago, the system aims to ease congestion by allowing vehicles to pass tolls without stopping, using RFID and number plate recognition. Despite previous pilot runs by operators like PLUS and Amanah Lebuhraya Rakyat, no government-led trials have taken place, with officials cautioning against premature moves without legal backing. A regulator under the Malaysian Highway Authority will eventually oversee the rollout.
As for Singapore, our neighbour implemented it in 1998.

Kwasa Land awards RM8.3bil township project in Kwasa Damansara to LBS
Kwasa Land, a wholly owned subsidiary of EPF, has awarded development rights worth RM8.3 bil to LBS Bina Group for a 14-year residential project in Kwasa Damansara. According to the agreement, LBS will develop 192 acres across 11 freehold parcels into nearly 3,000 units of condos and landed homes, with the land rights alone valued at RM1.2 bil. The site, located in PJ West, will include a community forest with trails, lookout points and parks, and is part of a larger 2,257-acre master-planned township featuring MRT access, 25,000 housing units, and 250 acres of green space. This latest deal brings Kwasa Land’s total partnerships to 17 developers with a combined GDV topping RM40 bil.

Aviation Expansion
Batik Air expands Subang hub with direct flights to Bangkok and Kuching
Batik Air has launched direct flights from Subang to Bangkok and Kuching, reinforcing plans to turn Subang into a key travel hub. The inaugural Bangkok flight was welcomed on Jul 28, with the airline now offering 5 direct routes from Subang, including to Penang, Kota Baru, Kota Kinabalu, and Tawau. CEO Datuk Chandran Rama stated the initiative gives travellers more flexibility and a convenient alternative to KLIA. Tourism Malaysia’s Datuk Manoharan Periasamy praised the timing, noting it supports preparations for Visit Malaysia 2026 and strengthens regional access, especially from Thailand, one of Malaysia’s top source markets.

Firefly shifts jet operations to KLIA, keeps turboprop services at Subang
Firefly, Malaysia Aviation Group’s regional airline, will shift its jet operations from Subang Airport (SZB) to KLIA Terminal 1 starting Aug 19, while maintaining turboprop flights from SZB. This motion begins with a flight to Tawau, followed by routes to Kuching and Kota Kinabalu, Singapore, Johor Bahru, Kota Bharu and Terengganu, and Sibu. Services from KLIA to Penang will rise from twice weekly to six times next month, and ten by Nov 2025. MAG will contact affected passengers directly with refund or travel options. Group MD Datuk Captain Izham said the shift consolidates KLIA’s role as a national hub, while SZB remains key for domestic turboprop routes.

Biz
Felda crosses 90% threshold to delist FGV after second privatisation bid
Felda has succeeded in its second bid to privatise FGV Holdings Bhd after raising its stake to 91.73%, crossing the 90% threshold required to delist the plantation giant from Bursa Malaysia. Trading in FGV shares will be suspended after market close on Aug 15, with the RM1.30 per share offer the same as Felda’s first attempt in 2020 remaining open for acceptance until 5pm that day. Once one of Malaysia’s largest IPOs, debuting in 2012 at RM4.55 per share and raising RM10.5bil, FGV has since struggled with poor acquisitions and losses. Although independent valuations placed the firm’s value between RM1.83–RM1.99 per share, shareholders have now capitulated, marking the end of FGV’s 13-year presence on the stock exchange. Well, a quiet exit for a giant that never quite lived up to its early promise.  

BNM fines three banks over RM7.29 mil for outages and compliance failures
Bank Negara Malaysia has fined three lenders a combined RM7.29 mil for breaches of financial regulations. Bank Islam was hit with a RM3.45 mil penalty for repeated service outages from Jun 1, 2023 to Dec 31, 2024, and for lapses in sanctions screening, including failing to flag a designated entity’s account in time. Bank Rakyat and Bank Simpanan Nasional were also fined RM2.85 mil and RM995,000 respectively for similar disruptions, which affected online transactions and ATM services. BNM pointed out the poor system recovery processes and weak compliance oversight, warning it will take action against institutions that fall short of expectations.

4. AROUND THE WORLD 🌎

Tsunamis hit Hawaii, Japan, after Russian quake
Tsunamis have landed in the US Hawaiian Islands and the northern coasts of Japan following a magnitude 8.8 earthquake off Russia’s Far Eastern coast, with a 4m-tall tsunami damaging buildings and injuring several people in the Kamchatka Peninsula. In response to the quake, marked as the strongest in decades, Japanese authorities evacuated most of its eastern seaboard, with parts of Hawaii also ordered to evacuate.

In the US, waves as high as 1.2m hit Hawaii, though authorities reported that no major waves were expected to strike the state, downgrading its tsunami warning. In Japan, the first reported wave measured around 30 cm, hitting the main northern island of Hokkaido, with authorities warning that waves of up to 3m could hit all the way down the northern and eastern coasts of Japan.

Warnings have since been downgraded in Japan as well, though residents in parts of coastal Pacific, Asian, and Latin American areas remain ready for potential tsunamis, with warnings of waves ranging between 1m to 4m in areas under threat.

UK to recognise Palestinian state unless Israel meets conditions 
UK PM Keir Starmer announced that the UK will recognise a Palestinian state in Sept, unless Israel takes “substantive steps” to end the “appalling situation” in Gaza. There are also other conditions attached, such as agreeing to a ceasefire, committing to a long-term sustainable peace centred on a two-state solution, and allowing the UN to restart the supply of aid. Israel has pushed back against this, with PM Netanyahu saying the move “rewards Hamas’ monstrous terrorism”. In return, Israel is mulling annexing parts of Gaza to increase pressure on Hamas, a move that will deal a severe blow to Palestinian hopes of statehood on land that Israel now occupies.

In other British announcements, the UK’s Channel 4 is delving into documentaries that tell stories “at the edges of modern morality”. The most recent one features Tia Billinger, aka Bonnie Blue, and is titled “1,000 Men and Me: The Bonnie Blue Story”. For further context, Billinger is one of the top earners on OnlyFans, earning between up to GBP2 mil (USD2.7 mil or RM11.45 mil) a month. The article, worth reading, somewhat.

Trump’s tariffs at 25% for India 
US President Trump announced that India, the world’s fifth-largest economy, will be slapped with a 25% tariff on goods as of Aug 1, along with an unspecified penalty, with no details given. Trump called India’s non-monetary trade barriers “the most strenuous and obnoxious of any country”, while calling them out on purchasing most of their military equipment and energy from Russia. This follows multiple rounds of negotiations between the Trump and Modi administrations, and marks India as the latest nation to face higher tariffs under the Liberation Day trade policy. This also follows earlier commitments by Modi and Trump to conclude phase one of a trade deal by autumn 2025 and expand bilateral trade to USD500 bil (RM2.12 tril) by 2030.

Adidas warns of USD229.5 mil (RM973.08 mil) increase in cost 
The sportswear giant reported it took a hit due to Trump’s tariffs, but did not confirm if it will pass on those hits to consumers, due to concern that rising prices could dampen demand. The firm shared that the tariffs had a “negative impact in the double-digit euro millions” on the quarter, without sharing a specific number. However, it did share that the tariffs will lead to an additional EUR200 mil (USD229.5 mil or RM 973.08 mil) in costs for the second half of the year. Still, the CEO insisted that the start of the year had been good for Adidas, with a “more than 90% increase” in second-quarter profits due to strong sales of its sports and lifestyle offerings. Net profit attributable to shareholders for the quarter came in at EUR369 mil (USD423.5 mil), up from EUR190 mil (USD218.1 mil) a year earlier, while sales rose 2% to EUR5.9 bil (USD6.8 bil).

Mercedes-Benz quarterly profit down 70%
The German automaker attributed the plunge to weak sales in China and the US tariffs, leading to the firm lowering its full-year revenue outlook. For the quarter, the automaker’s net profit came in at EUR957 mil (USD1.1 bil or RM4.66 bil), far below the EUR1.5 bil (USD1.7 bil) expected by analysts. The impact of the tariffs was felt here, as Mercedes-Benz reported it would have hit a profit margin of 6.6% compared to 5.1% after Trump’s tariffs of 25% on imported cars were calculated. The automaker’s sales dropped 12% in the US throughout the quarter. However, sales fell 19% in China, in the face of strong local competitors like BYD.

Singapore's Temasek ups stake in Italian luxury brand Zegna to 10%
The state-owned investment firm will be increasing its stake in the Ermenegildo Zegna Group to 10% as part of its exploration into investment opportunities in Europe, where the volatility from Trump’s trade tariffs has led to some companies being more attractive on valuation grounds. The deal is said to be worth USD126.4 mil (RM535.94 mil). However, it was made clear by the fashion house’s chairman and CEO, Zegna, that the company is “not for sale”, the family is still in control, and that was not going to change. The luxury brand’s revenue for the second quarter was EUR468.9 mil (USD538 mil), down 6% year-on-year. For Temasek, the firm saw its net portfolio reach SGD434 bil (USD335.6 bil) at the end of Mar, an increase of SGD45 bil (USD34.8 bil) from the year before. 2024 also saw the firm’s largest annual divestments to date, clocking SGD42 bil (USD32.5 bil).

AI food for thought
OpenAI launches Study Mode to help students
In a bid to promote critical thinking among students, OpenAI launched a new feature within ChatGPT called “Study Mode”. The feature, when enabled, will see ChatGPT asking users questions to test their understanding and even refuse to offer direct answers unless students engage with the material. The firm expects to introduce the feature to subscribers of its educational package, a group mostly made up of young people whose school admin’s purchased a plan for the whole student body. This is the firm’s attempt to address how students use ChatGPT, hoping that the feature will improve ChatGPT as a learning tool. The firm is also considering parental or administrative controls in the future.

Microsoft study finds AI chatbots most likely to automate comms tasks
A study by the tech giant analysing which careers would most and least likely be affected by generative AI and large language models (LLMs). The answer? Jobs involving providing and communicating information, such as translators, historians, and writers. On the other end of the spectrum are phlebotomists, nursing assistants, and hazardous materials removal workers. However, the researchers warned that the study only covered LLMs, and that it does not mean physical jobs will not be affected, though the study agrees with past research that office jobs will be more affected. The study was conducted based on 200,000 conversations between users in the US and Microsoft’s Copilot chatbot.
For the full research study, head here.

5. FOR YOUR EYES 📺

Today on brands

1. Brand collab #1: Duolingo x Luckin Coffee.

2. Brand collab 2: adidas Originals x Dorophy Tang’s pandas.

3. The elements. Bridgepink soon?