☕️ MIC is in talks with PN

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

The prime office market in Kuala Lumpur did well for itself, with a slow but steady improvement in the second quarter of 2025. This came in the form of an average rent of RM6.02 per sq ft per month for prime offices in the city centre, according to real estate consultancy Knight Frank. This was an increase of 2.6% year-on-year, and reflects resilience in a selectively easing environment. The steady improvement is supported by demand for premium, transit-connected, and environmental, social, and governance (ESG)-compliant buildings. This is in line with trends across Southeast Asia, where leasing decisions are increasingly influenced by sustainability targets and portfolio consolidation strategies. KL was also recognised for offering best-in-class office specifications at significantly lower occupancy costs when compared to regional peers.

Unfortunately, the situation is not as rosy for Malaysia’s 733 malls and their collective 196.2 mil sq ft of net lettable area (NLA). Data from the Malaysia Shopping Malls Association shows that the highly fragmented market, with its real estate value of about RM153 bil, is dominated by smaller retail assets. 81.5% of the total establishments are accounted for by Malls below 500,000 sq ft. These also make up 54.4% of the country’s total NLA, which also highlights the significance of neighbourhood and mid-sized retail formats in Malaysia’s retail landscape. Malaysia’s central region remains the retail epicentre with 292 malls commanding 46.7% of Malaysia’s total retail space. This is followed by the southern region’s 162 malls and 22.1% of total retail space, then the northern region’s 138 malls, which make up 18.8%, followed by East Malaysia with 95 malls and 13%, and finally the east coast, with 46 malls and 6.3% of the national total. How a good/bad mall can affect property prices:

Equally worrying is how Malaysia’s household debt, which stood at RM1.65 tril at the end of March 2025. This is equal to 84.3% of Malaysia’s gross domestic product (GDP) at the end of March 2025, and also puts Malaysia’s household debt levels among the highest in Southeast Asia, second only to Thailand. The government believes that, while the debt level remains elevated, it is balanced by strong household assets. According to Deputy Finance Minister Lim Hui Ying, the household assets are valued at about RM3.45 tril during the same period, which is 2.1 times higher than total debt. She also said that the median debt service ratio for household loans at the end of 2024 was 34%. The debt service ratio measures how much of a person’s income goes towards paying loan repayments.

3. IN MALAYSIA 🇲🇾

Malaysian politics - wind/storm/breeze of change? 
After standing side-by-side with UMNO since pre-independence years since 1948, by being a part of the All-Malaya Council of Joint Action (AMCJA), guess all things must come to an end, as MIC president SA Vigneswaran has confirmed informal discussions with Perikatan Nasional (PN). Vigneswaran stated that while the party will decide its direction, it is still carefully studying its options before making a final decision. Observing MIC’s statements in the past few weeks, the party intended to capitalise on the Indian community’s buyer’s remorse syndrome, where some Indian voters regretted voting for PH. But at the same time, MIC still wants to have its safety net as a party. Recently, Kedah MIC passed a resolution to cooperate with the opposition coalition PN without ruling out the possibility of leaving BN.

Another opposition coalition?
Pejuang president Mukhriz Mahathir announced that, as a solution to PN’s lack of non-Malay support, a ‘loose coalition’ approach is proposed that would focus on contesting 50 to 60 seats in urban and suburban areas. The composition of the ‘loose coalition’ is not finalised, but it may see the likes of MUDA, the Malaysian Advancement Party, Parti Sosialis Malaysia, URIMAI and other small parties joining the coalition. This ‘loose coalition’ will be a part of the two-pronged solution with PN, where the coalition to canvas for non-Malay support, while PN helps deliver Malay votes. Mukhriz hinted that the goal was to split the non-Malay vote to allow for Malay voters to be the kingmakers.

Syed Saddiq hesitates to be the MUDA president again
Syed Saddiq Abdul Rahman has declined the offer to resume his role as MUDA president following his acquittal on corruption and money laundering charges. Syed Saddiq stated he needs more time to decide, as family and his Muar constituency come first. Previously, Syed Saddiq stepped down as MUDA president in 2023 during his corruption trial. The top MUDA seat has been warmed by Johor’s DUN Puteri Wangsa assemblywoman Amira Aisya.

Transportation news

Ipoh will be the first city to benefit from the nationwide TOD wave
PM Anwar Ibrahim has rolled out the Ipoh Sentral project, the first transit-oriented development (TOD) to be launched since the government announced plans for 30 such projects in the next five years. Ipoh Sentral will be adjacent to the Ipoh railway station, where the former will span across 27 hectares, carried out in a collaboration between Malaysian Resources Corporation Bhd and the Railway Assets Corporation. The project will break down into two phases- Phase 1 to focus on the preservation of a 6.3-acre green space, including landscape enhancement and recreational parks, while Phase 2- is a mixed development on 60 acres of land.
Learn: What is TOD?

KLIA Aerotrain will start its non-peak hours maintenance over a two-week period
Malaysia Airports MD Mohd Izani Ghani announced that the KL International Airport (KLIA) Aerotrain will undergo a scheduled overnight works for two weeks starting August 18. The works will be conducted from 12 AM until 5 AM, where the Aerotrain services will be temporarily unavailable and airside shuttle buses will be provided. Since the start of operations, the Aerotrain has transported over 2 mil passengers, accumulated more than 1,100 hours of service and completed 18,800 trips. So far, the ‘new’ Aerotrain journey has not been smooth, with key ‘hiccups’ since its relaunch. And we want nuclear power plants?

Shorts:

1. Scammers getting smarter - now turn to the loan shark route

   MCA Public Services and Complaints Bureau chief, Michael Chong, has warned the public to be extra careful as scammers are getting smarter and now targeting debtors by posing as fake loan sharks and convincing them to settle a fake debt. The scammers’ modus operandi work by contacting individuals who lodged police reports of harassment by real loan sharks. Then, the ‘fake’ loan sharks, a.k.a. the scammers, will contact the individuals, just mere hours after the police report was submitted, to offer discounts on their debts. Key question is this - How the hell do these scammers obtain information about the police reports?

2. The King says no to buying ‘flying coffins’

   Malaysian King, Sultan Iskandar, has ordered the Defence Ministry to cancel its proposal to purchase old Black Hawk helicopters, which are more than 30 years old. The King reminded Putrajaya not to repeat its past mistakes, such as the SkyHawk aircraft purchase. In 1982, Malaysia purchased 80 SkyHawk aircrafts, where 40 units were refurbished and the rest were kept in the US for spare parts. The service life of the airframes was quite short, as the fleet was retired in 1995 due to frequent maintenance issues and a high accident rate. Sultan Ibrahim hinted that intermediaries have been the ‘deep-state’ in military procurement, and the Defence Ministry is full of ‘agents’ or former generals turned ‘salespersons’, including textile sellers turning into hi-tech military suppliers.

3. EPF’s investment income rises by 22%

   The Employees Provident Fund (EPF) announced that for 2QFY2025, ended June 30, 2025, the pension fund recorded a 22% increase in its investment income, from RM16.91 bil to RM20.61 bil, compared to a year earlier. EPF CEO Ahmad Zulqarnain Onn attributed the win to its focus on high-quality assets, particularly in key domestic sectors. Equities (aka the stock market) remained its largest contributor, generating RM13.77 bil or 67% of total investment income.
   Full announcement here.

4. AROUND THE WORLD 🌎

No ceasefire deal between Russia - Ukraine yet
Nothing solid was achieved in the highly anticipated summit between Trump and Putin last Friday, particularly regarding the deal for ending the Russian-Ukraine war. But, Trump had said that they made “great progress” in Alaska. Putin was warmly welcomed on the red carpet as he arrived at the US airbase in Anchorage, Alaska, and then proceeded for a private talk for three hours with Trump. The two leaders then met the press and said that they had made progress on unspecified issues, offering no details and taking no questions from anyone.

Nevertheless, both parties reportedly agreed that the US could effectively offer Ukraine security guarantees, in a form of Article 5 in the NATO provision that says if one ally is attacked, it is considered an attack on all member states. That is if Ukraine is a NATO member, which Putin said is a red flag for Russia. Putin demanded that Ukraine give up territory that Russia seized in its three-year war, but was said to make some leeway with regards to the regions, which means that there is space for negotiations.

Trump held a phone call with Ukraine and subsequently spoke to several European and NATO leaders after the talks with Putin, and had advised Ukrainian President Volodymyr Zelenskyy to make a deal to end the war in Ukraine. Zelenskyy said that he plans to meet the US president in Washington next week. In the press conference in Anchorage, Trump had hoped that he would meet Putin again soon, but the stoic Russian leader replied with a surprising short answer in English : “Next time, in Moscow”. Catchy title for the next political thriller book.

Tech

The era of air taxi is nearer
Air taxi company Joby Aviation has reported a successful first test flight between two US airports, marking its progress toward commercial services in the country. Its electric aircraft took 12 minutes to fly within a distance of 11.5 miles (18.5km) apart. In addition to working with air traffic control, the flight showcased some key capabilities of the electric vertical-takeoff and landing vehicle (eVTOL). Being powered by electricity is not just a sustainability benefit but also means it can fly relatively quietly, unlike helicopters, which are heavily regulated in New York and other cities due to their noise. Joby has partnered with Delta Air Lines and Virgin Atlantic to help launch air taxi services soon.

AI designed antibiotics to kill superbugs
Researchers at the Massachusetts Institute of Technology (MIT) had discovered what might be a start to a "second golden age" in antibiotic discovery, after using generative AI to design antibiotics for the sexually transmitted infection gonorrhoea and for potentially-deadly MRSA (methicillin-resistant Staphylococcus aureus). The drugs were designed atom-by-atom by the AI and then manufactured for testing, in which it successfully killed bacteria in the lab and on infected mice, resulting in two new potential drugs. However, they are not ready for clinical trials and the drugs will require refinement – estimated to take another one to two year's work – before the long process of testing them in people could begin. Read the study here.

Roblox sued in the US
Popular gaming app Roblox is now facing a legal debacle after the US state of Louisana sued the company with accusations that it facilitates distribution of child sexual abuse material and the exploitation of minors. The lawsuit charges Roblox with “knowingly and intentionally” failing to implement basic safety controls to protect children, and said that the platform is overrun with harmful content and child predators. Roblox denies the allegation, and responded that they do work “continuously” to promote a safe online environment on the platform. The online gaming and creation platform was founded in 2004 and allows users to play, create and share virtual experiences. Nearly 82 mil people use Roblox daily, with more than half of them being younger than 18 years of age, according to the lawsuit.

Shorts:

1. Africa has had enough of the Mercator map

   The Mercator map projection needs to go - a map created by cartographer Gerardus Mercator for navigation that distorts continent sizes, enlarging areas near the poles like North America and Greenland while shrinking Africa and South America, subsequently leading to misinformation around the globe. Correct the Map campaign led by advocacy groups Africa No Filter and Speak Up Africa advocates for a truer version of the world map, urging organisations to adopt the 2018 Equal Earth projection, which tries to reflect countries’ true sizes. The African Union (AU) has now backed the campaign and is said to help advocate for wider map adoption globally and discuss collective actions with the AU member states.

2. McD Happy Meal Pokemon cards frenzy

   All hell broke loose when McDonald’s Japan released its Happy Meal with Pokemon trading cards earlier this month, which was quickly shut down before the first day ended due the chaos that ensued. Pokemon superfans scrambled to buy large quantities of the meals for resale, leading to congestion in stores and food waste as they only took the card and discarded the meals. Some even got into a heated argument. Scalpers later put the card on resale on websites for as much as 2,000 to 3,000 yen, nearly four times the original price.
   Fun fact: Did you know that in 1997, 12,000 children reported symptoms of illness across Japan after an episode of Pokemon?

5. FOR YOUR EYES 📺

Tech Support Day

1. The misconception about ‘incognito’ mode when browsing.

2. Seems like deleting isn’t permanent.

3. Couple of cool tricks on iPhone. Just learnt how to screenshot a full page, instead of just a section.

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