☕️ EPF reports 51% jump in investment income, but...

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

RM1,400 psf – That’s how much land costs in prime locations on Penang island by the end of Apr 2026, a marked increase from RM800 to RM900 psf in 2022. This premium pricing is driven by the scarcity of development land on the island. However, the high-end property market in Penang, particularly for homes priced above RM1 mil, has seen a noticeable uptick. An industry expert said that local demand remains robust, with homebuyers showing sustained confidence in the market.

RM1.136 bil – Penang’s medical tourism sector strengthened its position as a regional healthcare powerhouse by generating that much in revenue in 2025, boosted by a sharp rise in foreign patient arrivals. The sector recorded 527,176 foreign patients that year, up 25.94% from 418,608 in 2024. The revenue was generated by 16 private hospitals in the state and represented a 26.6% increase from 2024’s RM898 mil.

RM1.8 bil – Malaysia’s medical device industry contributes that much to the nation’s gross domestic product (GDP) each year as of Oct 2025, according to Health Minister Dr Dzulkefly Ahmad. He added that the sector has also created more than 130,000 high-skilled jobs. Malaysia’s medical device exports rose by 31% to RM37 bil in 2024. The industry has also drawn investor attention, with a total of RM20 bil in domestic and foreign investments between 2021 and 2024.

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3. IN MALAYSIA 🇲🇾

Malaysia issues RM1 bil compensation claim over cancelled NSM deal
Following Norway’s cancellation of the Naval Strike Missile (NSM) export licence, the Ministry of Defence (Mindef) has now issued a notice of demand to the Norwegian manufacturer seeking compensation. The claim covers both direct and indirect losses, with about EUR126 mil (RM583.47 mil) already paid and total compensation sought reaching around RM1 bil. The move comes after Norway revoked the export licence under new rules limiting defence exports to NATO members and selected partners, excluding Malaysia. Culprit? US. The missile contains a US-made gyroscope component that measures and maintains missile on course to its target, which Uncle Sam has restricted the sale.

Crime watch
Teen passengers allegedly attack e-hailing driver over fare in Melaka
A late-night e-hailing trip in Melaka turned violent on May 14 after a group of teenagers allegedly attacked their driver over a fare payment. The 41-year-old woman had picked up two boys aged 15 and 17, along with two 14-year-old girls, in Bukit Rambai after midnight for a ride to Kuala Sungai Baru town. The situation escalated when one passenger asked her to stop near a forest, saying he needed to meet someone and did not have money for online payment. The group allegedly assaulted the driver with solid objects while another suspect reached from the back seat to choke her and threatened her not to seek help. 

The victim managed to escape and drove away before filing a police report. She sustained swelling, bruises and scratches on her neck, with a medical examination confirming the injuries were caused by an assault. Police detained all four teenagers later that evening, and the case is being investigated under Section 324 of the Penal Code.

Male sexual harassment cases rising past 1,000 since 2024
Reports of sexual harassment involving male victims are climbing in Malaysia, with more than 1,000 complaints lodged with the Women, Family and Community Development Ministry since 2024, according to minister Nancy Shukri. Police data shows the same pattern, with cases rising from 477 in 2022 to 1,038 in 2025, a sharp jump showing how widespread the issue is. Some cases involve blatant unwanted physical contact, including one at a shopping complex, where a male shopper was allegedly grabbed from behind by a salesperson near a fitting room. 

Complaints have also reached the Tribunal for Anti-Sexual Harassment, which has recorded three male victim cases, with some rulings already in favour of complainants. The rise in reports suggests more victims are speaking up, and frankly, it is about time, because behaviour like this should not be brushed off as a joke or “harmless”. Families are urged to listen when children speak up about harassment, noting that some are now seeking help through channels such as the Talian Kasih 15999 or even digital tools like ChatGPT. 

Upin Ipin War: Malaysia vs Indonesia
Les’ Copaque Production has fired back at viral claims suggesting Upin & Ipin may have originated from Indonesia. Founder Burhanuddin Md Radzi dismissed the allegations as completely untrue, stressing the series has been fully developed and produced locally since 2007. The claims came from a viral video alleging that an Indonesian animation concept called “Si Arifin” existed first and was later acquired by Malaysia, something the studio strongly denies, saying no licence was ever sold or purchased and there is no link to the creator behind the claim. Les’ Copaque maintains the animated twins are an original Malaysian creation and firmly its intellectual property, shutting down the online controversy circulating across social media.

On a happier note, Les’ Copaque is also set to bring Upin & Ipin into real life with a theme park project in Genting Highlands. The development, a joint effort with King’s Park Management Sdn Bhd, has been in the works for years and is now moving closer to reality!

Our Money

EPF reports 51% jump in investment income, but….
Employees Provident Fund (EPF) said its investment income rose 51% year-on-year to RM27.73 bil in Q1 FY2026 after taking profits early to lock in gains before expected global market volatility. In simple terms, it sold some investments earlier than usual to secure returns while conditions were still good. EPF warned that this strong performance may not continue in the coming quarters as some of the gains were brought forward from later in the year. By segment, Simpanan Konvensional made RM22.63 bil, while Simpanan Shariah contributed RM5.1 bil. The biggest contributor was equities (company shares), which rose 88% to RM20.34 bil, followed by bonds and other fixed income at RM6.76 bil. International investments made up 55% of total income, showing the role of global markets. Read full announcement here.

SC and Bursa propose opening LEAP Market to retail investors with RM250k cap
The Securities Commission and Bursa Malaysia are proposing changes to the LEAP Market that could allow retail investors to trade on it for the first time since 2017. If approved, individuals can invest but with a limit of RM250,000 in total exposure, including RM100,000 per issuer in the primary market and RM100,000 per broker in the secondary market. The plan, known as LEAP Market 2.0, also includes easier fundraising routes for smaller companies, simpler disclosure rules and smoother upgrades to the ACE Market after at least two years, without needing an exit offer. Advisers may also be allowed to receive up to 50% of their fees in shares, under set limits. The SC said the changes aim to help more mid-sized companies raise funds and improve access to capital, while Bursa said it will widen participation but keep investor protection in place. Public feedback is also open until June 15. LEAP is the smallest market after ACE and Main Market.

4. AROUND THE WORLD 🌎

Sam Altman 1-0 Elon Musk
Elon Musk’s attempt to play the moral guardian of AI has backfired after a California jury tossed out his lawsuit against OpenAI and Sam Altman. Despite three weeks of testimony from tech heavyweights like Microsoft’s Satya Nadella, the jury took just two hours to reach a unanimous verdict — Musk simply waited too long to sue. Under the statute of limitations, his claims had already expired, meaning the court didn't even need to look at whether Altman actually deceived him. So, Musk lost on technical grounds.
Learn: What is statute of limitations?

The drama stems from Musk’s USD38 mil (RM151.16 mil) donation during OpenAI’s early days, which he claims was contingent on the company remaining a non-profit. Musk accused Altman of "looting a charity" by pivoting to a for-profit model with Microsoft’s backing, but Altman fired back in court, alleging Musk actually wanted total control for himself, even suggesting the company should pass to his children like a family heirloom. With legal experts noting that jury verdicts are notoriously difficult to overturn, Musk’s promised appeal looks like a long shot. Turns out even the world’s richest man can’t outrun a ticking clock.

'Ebola has tortured us': Fear as DR Congo outbreak spreads
The Democratic Republic of the Congo is facing a nightmare scenario as a new Ebola outbreak accelerates faster than health officials can track. While the official death toll stands at 131 with 513 suspected cases, the reality on the ground is likely much grimmer. Modelling from the MRC Centre for Global Infectious Disease Analysis suggests "substantial" under-detection, warning that the true number of cases could already exceed 1,000. The situation has crossed borders too, with one death already recorded in Uganda and a suspected case reaching Goma, a city of 850,000 people.

What makes this particularly scary is that we are dealing with the rare Bundibugyo strain, for which there is currently no approved vaccine. Unlike the Zaire strain that caused the massive 2014-2016 West Africa crisis, medical teams are essentially flying blind here. WHO representative Dr. Anne Ancia noted that the epicentre in Ituri province is a high-security risk zone with constant population movement, making contact tracing nearly impossible. Local residents have described the virus as "torture," with victims dying rapidly while communities scramble for basic supplies like face masks and clean water.

With Rwanda closing its borders and Uganda banning handshakes and hugging, the region is on high alert. Even the US is currently evacuating several citizens who were exposed. In a conflict-heavy region where health systems are already gasping for air, an invisible killer that liquefies organs is the last thing anyone needs. It’s a stark reminder that while the rest of the world has moved on to other headlines, some regions are still fighting for the most basic right to breathe without fear.

StanChart to cut more than 7,000 “lower-value human capital”, steps up AI adoption
Standard Chartered is trimming its headcount by more than 7,000 roles over the next four years as it leans heavily into artificial intelligence and automation. The bank plans to slash 15% of its corporate function roles by 2030, a move that CEO Bill Winters describes not as "cost-cutting," but as replacing "lower-value human capital" with technology. While the bank is currently riding high on record wealth revenue and hitting its 2026 financial targets a year early, the back-office staff in hubs like Kuala Lumpur, Chennai, and Bangalore are the ones facing the chopping block.

This pivot marks one of the first times a major global lender has explicitly linked mass redundancies to the AI revolution. For StanChart, which employs nearly 82,000 people globally, the goal is to transform into a slimmer, more profitable machine while fending off cyber threats and navigating geopolitical risks that already forced a USD190 mil (RM755.78 mil) provision for the Middle East conflict.

Trump holds off on bombing Iran after Gulf allies plead for time
Donald Trump has temporarily hit the pause button on a planned military strike against Iran, scheduled for a Tuesday rollout, after Gulf allies requested more room for diplomacy. The US President revealed that leaders from Saudi Arabia, Qatar, and the UAE specifically asked him to "hold off" on the bombardment, hoping that a deal can be reached to prevent further regional chaos. While Trump claims the delay is "hopefully maybe forever," the stakes remain incredibly high as the Strait of Hormuz, a chokepoint for 20% of global oil, remains effectively closed. Brent crude responded by dipping 1.4% to USD110.50 (RM439.55) a barrel, though prices are still up over 50% since this conflict kicked off. 

On one hand, Trump wants to stop Iran’s nuclear ambitions; on the other, the war is trashing the global economy and sending US pump prices to a four-year high just before the Nov midterms. Iran isn't exactly playing nice either, demanding an end to port blockades and war reparations while continuing to enrich uranium. Even as these "discussions" happen, things are literally on fire, the UAE’s Barakah nuclear plant was recently hit by a drone, forcing emergency generators into action.

A bit more on the mid-term elections:

Shorts:

1. Thailand shortens the welcome mat

   Thailand is officially cutting back on its generous 60-day visa-free stays, barely a year after extending them to lure tourists back. The Cabinet decided to slash the limit for over 90 countries, including the US and much of Europe, down to 30 or even 15 days on a case-by-country basis. While tourism accounts for over 10% of Thailand’s GDP, the government says the open-door policy has been exploited by transnational criminals involved in drug trafficking and illegal businesses. Foreign arrivals dipped 3.4% in Q1 2024 compared to last year, yet authorities are prioritising security over easy entry. No impact on Malaysians as we still get to enjoy the 30-day visa exemption like before.

2. Starbucks Korea sacks CEO over "Tank Day" PR disaster

   Starbucks Korea recently learned that history lessons are just as important as latte art after sacking CEO Sohn Jeong-hyun over a disastrous marketing campaign. The coffee chain launched a "Tank Day" promotion for large-volume tumblers on the exact anniversary of the 1980 Gwangju Uprising, a bloody crackdown where the military used actual tanks to crush pro-democracy protesters, leaving hundreds dead. To make matters worse, the ads featured the word "tak," a sound effect famously used by 1980s police to cover up the torture-death of a student activist. President Lee Jae Myung called the move "inhumane," and parent company Shinsegae didn't wait for the steam to settle before firing Sohn.

5. FOR YOUR EYES 📺

1. Rafizi on his breakup with Anwar.

2. The history of kongsi gelap. Involved the Chinese, British, and even the Malay royalty.

3. Check your earlobes. Might signal whether you are getting heart attack.