☕️ MOF confirms budget cuts

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

19.67 seconds for the 200m – Australian teen Gout Gout clocked that time in the 200m sprint to set a new under-20 world record. This marks his first official time under 20 seconds, after a wind-assisted 19.84 seconds last season. This official record also puts him ahead of Jamaican eight-time Olympic champion Usain Bolt’s time of 19.93 seconds in 2004. The previous fastest under-20 time was 19.69 seconds, set by US sprinter Erriyon Knighton.

USD3 bil (RM11.85 bil) – Deloitte reported that global revenue in women’s elite sports will pass the USD3 bil mark for the first time in 2026, marking a 25% increase from last year, when the segment generated USD2.4 bil worldwide, mainly through basketball and football, which each brought in 35% of the total. This also follows meteoric growth of 248% from 2022 to 2025. Deloitte estimates that a quarter of the revenues will come from broadcast, with matchday revenues contributing 30%.

GBP80 mil (RM426.84 mil) – That’s how much Brighton & Hove Albion will be paying to construct Europe’s first purpose-built women’s football stadium. The plans were released recently, with the club hoping to open the stadium for the start of the 2030-31 season. The stadium will also be one of only three purpose-built women’s football stadiums in the world. It will feature changing rooms, pitch standards, and recovery spaces meant to “support elite female players”.

3. IN MALAYSIA 🇲🇾

SkyeChip gears up for market debut
Riding hot on the AI craze. Penang-based semiconductor design firm SkyeChip Bhd is lining up a Main Market debut on Bursa Malaysia, aiming to raise up to RM352 mil, valuing it at RM1.58 bil, as it rides Malaysia’s push into higher-value chipmaking. Priced at an indicative 88 sen per share, the IPO is made up entirely of new shares, meaning existing shareholders are staying put rather than cashing out. Retail investors have until May 6 to get in, while institutional applications close a day later on May 7, with the final price to be determined through bookbuilding. The company is scheduled to list on May 20. At its core, SkyeChip focuses on integrated circuit design, particularly silicon intellectual property that can be licensed and embedded into customers’ chips, alongside developing custom semiconductors. The timing is no coincidence, as Malaysia looks to move beyond lower-margin back-end services and establish itself further up the semiconductor value chain, where returns are significantly higher.

More than 60% of the IPO proceeds, about RM211.5 mil, is earmarked for research and development, 16% will go into expanding operational facilities and strengthening computing infrastructure, while the rest will be channelled into licensing tools, working capital, and listing expenses. Its CEO Datuk Fong Swee Kiang framed the listing as part of a broader national ambition, positioning the company as a homegrown contributor to Malaysia’s semiconductor goals.

Malaysia gov spending squeeze starts
Spending tightens as subsidy bill spikes
The government is moving to tighten public spending as rising fuel subsidies continue to strain public finances, with all ministries instructed to trim operating expenditure and review programmes. Fahmi Fadzil said the directive reflects economic pressure linked to ongoing tensions in the Middle East, which have disrupted global energy flows and pushed up costs. Ministries have been told to submit proposed budget cuts by May 15 as part of a coordinated review led by the MOF.

The urgency comes as subsidy spending has surged to about RM7 bil a month, compared with roughly RM700 mil before disruptions in the Strait of Hormuz. RON95 fuel subsidies have increased from RM300 mil to RM4 bil monthly, while diesel subsidies have risen from RM400 mil to RM3 bil, covering key sectors such as agriculture, fisheries, and logistics to keep essential goods affordable. Fahmi said the government is reviewing both RON95 and diesel subsidy structures to ensure better alignment, while studying more targeted mechanisms for diesel in East Malaysia, where subsidised pricing remains in place.

MOF outlines concrete cuts and fiscal reset
Meanwhile, MOF has outlined more detailed cost-cutting measures, instructing ministries and agencies to reassess remaining 2026 allocations. The plan includes a 10% reduction in spending on services, supplies, and assets, cuts to salaries and allowances tied to unfilled positions, and a 20% reduction for federal statutory bodies and government-linked companies.

This follows reports that the government has ordered RM10 bil to be slashed from the original RM229 bil approved as operational expenses under Budget 2026.

Of these, RM3.06 bil could come from the Health Ministry’s RM46.5 bil budget, while RM2.39 bil could come from the Higher Education Ministry’s RM18.6 bil budget. The Treasury could be cutting RM664 mil from its own budget, while the Home Ministry and Defence Ministry could reduce their budget by RM647 mil and RM508 mil, respectively.

Officials said the move is aimed at reprioritising spending without affecting essential services, as higher crude oil prices driven by geopolitical tensions continue to increase logistics costs and pressure the overall cost of living.

If you value your kidneys, don’t eat instant noodles every day
Eating instant noodles may not kill you, but research shows that frequent consumption can have long-term effects on the body, especially the kidneys, due to consistently high sodium intake. In Malaysia, instant noodles are deeply embedded in daily life, with around 3.6 mil packets consumed every day in 2025, making it a regular meal option for students, office workers, and households looking for quick and affordable food. The market is largely led by Maggi, which accounts for about 2.5 mil servings daily and is present in roughly 9 out of 10 Malaysian homes (according to Nestlé Malaysia).

The health concern highlighted in medical research is not occasional consumption but habitual intake. Studies show that a single serving of instant noodles can contain salt levels that approach or exceed the World Health Organisation’s recommended daily limit of 2,000 mg. This matters because the kidneys, which filter about 200 litres of blood daily, must work harder to remove excess sodium, which can raise blood pressure and gradually strain kidney function over time.

Medical reviews have linked high sodium intake to a higher risk of chronic kidney disease, even in otherwise healthy individuals. With Malaysians averaging around 47 servings per person annually, the issue is less about instant noodles themselves and more about how often they are consumed in a diet where they have become a regular, not occasional, meal option.

Shorts:

1. Malaysian Indians hardest to scam
   Malaysian Indians are among the least likely to fall for scams, according to Penang police, with their questioning mindset said to play a key role. Penang Commercial Crime Investigation Department deputy chief Pang Meng Tuck said victims from this group tend to challenge suspicious claims with constant questioning, making it harder for scammers to maintain their story. Arrested scammers also said many attempts are abandoned midway due to this. Always good to question! Be curious!

2. Serial husband abuse case
   A 43-year-old man in Kedah has been arrested after allegedly assaulting his wife, causing a miscarriage. Police said he is understood to have been married nine times and still has three wives, with all his partners being civil servants. Authorities said he specifically targets spouses with stable jobs as he does not have steady employment, describing this as part of his modus operandi. He also has a long criminal record.

3. LHDN extends tax deadline to May 15
   Malaysia’s Inland Revenue Board (LHDN) has extended the tax filing deadline for the Year of Assessment 2025 to May 15, giving taxpayers an extra 15 days to file via e-Filing. LHDN said the extension was intended to improve accuracy and reduce system congestion, while warning penalties still apply for late submission.

4. AROUND THE WORLD 🌎

UAE to leave OPEC next month
The Gulf state will end nearly 60 years of its membership in the Organisation of the Petroleum Exporting Countries (OPEC), with the UAE saying the exit would help it meet growing global energy demand in the long term more flexibly, following recent investments to boost its production capacity. The exit is seen as a blow to the cartel, which oversees oil production and has a major influence on global prices.

The UAE represents 15% of the cartel’s capacity as its fourth-largest oil producer and was one of its most compliant members. The departure means the UAE will also leave OPEC+, the wider alliance that includes 10 other non-OPEC countries. OPEC will be left with 11 members following the UAE’s departure. The UAE has also announced that, while it is currently reassessing its role and contributions across multilateral organisations, it is not considering any further withdrawals at this time. Still, the UAE’s exit means a higher likelihood of cheaper oil in the future, but only after the whole Strait of Hormuz situation is resolved.

OpenAI allegedly misses revenue targets, report triggers AI stock declines
A WSJ report that OpenAI has fallen short of internal growth expectations has led to the share prices of companies tied to AI infrastructure falling by up to 10%. Nvidia saw a dip of more than 1%, while the SoftBank Group, one of OpenAI’s largest investors, fell about 10%, with other notable names such as Oracle, Advanced Micro Devices, and CoreWeave falling somewhere in between.

The report also alleged that the shortfall had led to internal concern about whether OpenAI can keep pace with the financial commitments required to build data centres and secure long-term computing capacity. The article also reported that finance chief Sarah Friar warned colleagues that the company could face difficulty funding future agreements if revenue growth does not accelerate.

OpenAI has pushed back on the report, calling it “ridiculous” and saying the firm was “totally aligned” on the strategy of buying as much computing capacity as it can. A statement also said the business was “firing on all cylinders” and that the mood internally is “incredibly positive”.

Fishy business
eFishery founder gets 9-year jail term in Indonesia fraud case
Indonesia’s Bandung District Court handed eFishery founder Gibran Huzaifah a nine-year prison sentence and a fine of IDR1 bil (RM272,616), bringing a close to the high-profile USD300 mil (RM1.19 bil) financial scandal. Gibran was found guilty of embezzlement and money laundering.

The eFishery scandal saw one of Southeast Asia’s most celebrated start-ups become one of the region’s biggest failures, dealing a blow to several of the world’s highest-profile investors, including Singapore’s Temasek, Japan’s SoftBank Group, and Abu Dhabi’s 42XFund.

Malaysia’s own KWAP had a hand in eFishery, having provided USD47.7 mil in funding during the start-up’s Series D round. The eFishery scandal also followed the loss of RM43.9 mil by Khazanah Nasional Bhd and Permodalan Nasional Bhd from investing in fashion e-commerce platform FashionValet Sdn Bhd. The platform failed, with the founders also charged with allegedly transferring RM8 mil from the company’s accounts to their own company.

Indonesian authorities raid daycare centre, reveal 'culture of abuse'
The Yogyakarta police have accused 13 people of multiple counts of child protection offences at the Little Aresha daycare centre, including the centre’s principal, the head of the Little Aresha Foundation, and its caregivers. The accusations follow a raid on the daycare centre, with footage of the raid showing children with their hands and feet tied, with no clothes and only wearing diapers.

The raid happened after a former employee lodged a police report claiming that children had suffered inhumane treatment there. Of the 103 children enrolled in the daycare, at least 53 are believed to be victims of physical abuse or neglect, with the majority of victims under two years old. Police also confirmed that the centre did not have an operating permit, and this incident has unleashed a fresh wave of public anger, heightening scrutiny of the country’s daycare centres. Viewer discretion advised - watch the incident here.

Shorts:

1. Japan zoo staffer allegedly dumps wife's body in zoo incinerator
   A popular Japanese zoo delayed its summer opening after an employee told police that he had disposed of his wife’s body in the zoo’s incinerator, which was used to dispose of animal carcasses. Authorities had been searching for the wife since a friend reported her disappearance to the police. The zoo remains closed pending investigations.

2. Scientists find first clue of why 11 cancers are on the rise in young people
   A study by the Institute of Cancer Research and Imperial College London found that increasing levels of obesity, which have been on the rise since the 1990s, aligned with the increase in cancer cases among younger people. This was compared with other known factors that increase cancer risk, such as smoking levels, alcohol consumption, and levels of physical exercise. However, this is an imperfect answer. The study acknowledges that while 20 of every 100 extra bowel cancer cases may be due to excess weight, the other 80 cases are still unexplained.

3. Japan plans experiment to transmit space-based solar power to Earth
   The Japan Aerospace Exploration Agency, Japan Space Systems, and other organisations will conduct an experiment to transmit electricity generated with solar panels in space down to Earth using microwaves, with the experiment expected to take place as soon as this fiscal year. This is a potential world first that would address power shortages and aid in future lunar exploration. The experiment has been dubbed the Ohisama Project, named after a Japanese word for the sun.

5. FOR YOUR EYES 📺

Have a productive weekend

1. Dr Rena Malik (urologist, pelvic surgeon, sexual health expert) on the Diary of The CEO dispensing sexual health advice. Healthy sex helps with general health. Full interview here.

2. Happy wife, happy life - learn more about this African technique, Kunyaza. Dr Rachael explains the science.

3. Hope you are scoring well this weekend. Meanwhile, PSG beat Bayern Munich 5-4 in the first leg of the Champions League semi-final, making it the highest-scoring match ever at this stage of the competition.

We are off for Labour Day. See you next week!