☕️ Malaysia’s billion-ringgit chip dreams powered by UK’s ARM

1. MARKET SUMMARY 📈

Of the 18 Bursa Malaysia indices, only one is positive year-to-date — view chart here.

2. NUMBERS AT A GLANCE 🔢

RM217.46 bil – Malaysia’s property sector saw a remarkable surge in 2024, with total transaction value more than doubling the government’s RM100 bil target. That’s a 10.48% year-on-year increase in transaction value. Housing and Local Government Minister Nga Kor Ming attributed this growth to low interest rates, positive investor sentiment, and a stabilizing economic outlook. Additionally, the National Housing Department approved development advertising permits for 195,962 units in 2024, representing a gross development value (GDV) of RM130.55 bil, signaling robust confidence in the property market’s future.

1.3% chance of impact – Asteroid 2024 YR4, large enough to devastate a city, has a small but notable chance of colliding with Earth on December 22, 2032, according to NASA. With odds of 1 in 77, this marks the planet’s most significant known impact threat in two decades. While the likelihood remains low, a risk above 1% is rare and has already prompted international planetary-defense preparations. The asteroid’s potential trajectory underscores the importance of continued vigilance in monitoring near-Earth objects.

USD6 tril (RM26.58 tril) – the amount individuals across wealthy nations are set to inherit, reflecting a resurgence in the value of inheritances. After declining for much of the 20th century, inheritances have rebounded, now averaging 10% of GDP in rich countries, up from historic lows. The share of wealth derived from inheritance is also climbing, with UBS reporting that 53 people became billionaires through inheritance in 2023, nearing the 84 who achieved billionaire status through work. This trend underscores the growing role of inherited wealth in shaping economic inequality and opportunity in the modern era. The lucky sperm club.

3. IN MALAYSIA 🇲🇾

Malaysia’s billion-ringgit chip dreams powered by UK’s ARM
Malaysia is set to elevate its semiconductor industry via a decade-long partnership with UK-based ARM Holdings Plc. Prime Minister Anwar Ibrahim announced that the agreement grants Malaysia access to semiconductor design licenses and technology, marking a major step in strengthening the country’s chip sector. A key initiative under this collaboration is the development of "Made by Malaysia" AI chips, which will be designed, manufactured, tested, and assembled locally. To support this, the government plans to train 10,000 IC design engineers, ensuring a strong talent pipeline for the industry. The partnership will provide selected Malaysian companies with access to ARM’s technology and intellectual property, enabling the development of locally designed semiconductor products. Additionally, ARM will establish its first ASEAN office in Kuala Lumpur, expanding its presence in the region.

Consequently, Malaysia is investing USD250 mil (RM1.1 bil) over the next decade to build a homegrown AI and semiconductor ecosystem in partnership with ARM. This initiative aims to develop Malaysia’s first locally designed chip and provide access to ARM’s technology. According to Bloomberg, Malaysia targets 10 chip companies generating USD20 bil in annual revenue. While currently a hub for chip testing and packaging, Malaysia seeks to break into chip design through this collaboration. ARM, 90% owned by Japan’s SoftBank, has issued 6,800 patents and sold over 300 bil ARM-based chips globally. Malaysia will be the first ASEAN country to host an ARM office, enhancing its regional semiconductor presence and strengthening its position in the tech industry.

Tribunal officer's mysterious death shocks Putrajaya
A 45-year-old tribunal officer from the Attorney General’s Chambers was found dead in his office at the Treasury Department, Putrajaya today. His neck and legs were bound with cable ties. Kuala Lumpur police chief Commissioner Rusdi Mohd Isa confirmed receiving a distress call this morning around 10.56am. Police found the victim lying on the office floor, but ‘no criminal elements have been identified so far’. The case is classified as sudden death, pending a post-mortem. Authorities urge the public to avoid speculation and encourage anyone with information to contact the KL or Putrajaya police hotlines. The Finance Ministry has expressed condolences and pledged full cooperation in the investigation.

Bukit Aman targets landlords aiding scam syndicates
Bukit Aman is cracking down on scam call centres, warning that landlords, JMBs, and security firms will be held accountable if such operations are found on their premises. CCID director Comm Datuk Seri Ramli Mohamed Yoosuf stated that some property owners knowingly allow these activities. Authorities will now investigate and charge enablers under Section 120(B) of the Penal Code. Recent raids in Kuala Lumpur led to the arrest of 11 Chinese nationals running scams, including fake lucky draws and investment frauds. Ramli urged landlords to conduct thorough background checks, stressing that ignorance will no longer be an excuse.

Biz Buzz

• GSC eyes stronger recovery as blockbusters return
  Golden Screen Cinemas (GSC) is gearing up for a strong 2025, fueled by the return of Hollywood blockbusters and a promising lineup of local and international films. GSC is owned by PPB Group Bhd (controlled by Malaysia’s richest - Robert Kuok). The company, which saw setbacks due to the Hollywood strikes in 2023, expects a surge in moviegoers between April and August. CEO Koh Mei Lee highlighted the growing appeal of local films, which are set to contribute 30% of box office revenue. To reduce reliance on Hollywood content, the company has partnered with top producers to co-create diverse local titles.

  Beyond ticket sales, which account for 50% of revenue, F&B contributes 30% and other sources contribute 20%, GSC is diversifying through events, business functions, and membership perks for its 3.7 mil members. The company currently holds a 51% market share in Malaysia and is expanding its presence in Vietnam, where admissions jumped 30% last year. In FY2024, PPB’s cinema division contributed RM587 mil in revenue (+3% year-on-year) and a profit of RM3.66 mil, compared to a loss of RM120.4 mil due to impairment from a year earlier.

• AirAsia expands fleet amid strong ASEAN travel demand
  AirAsia Aviation Group is set to add 14 new aircraft in 2025, including four from Airbus and ten from leasing companies, to meet rising travel demands in ASEAN countries. The expansion aligns with its goal of carrying 70 mil passengers in FY2025, surpassing the region's projected aviation growth rate. As part of Capital A’s corporate restructuring, AirAsia Aviation Group is being transferred to AirAsia X Bhd to help Capital A exit its PN17 status. Meanwhile, AirAsia is enhancing connectivity, optimising its network, and exploring new global destinations. The fleet expansion, including next-generation Airbus models, will boost efficiency, reduce costs, and solidify AirAsia’s dominance as a key regional low-cost carrier.

4. AROUND THE WORLD 🌎

Ukrainian fallout
The turnaround
In an address to Congress, US President Trump revealed he had received a letter from Ukrainian President Zelenskyy, expressing a willingness to come to the negotiating table. Trump also revealed that he was part of “serious discussions with Russia” that saw “strong signals that they are ready for peace”. However, the US president did not reveal any more details on his plan to end the conflict, other than saying “if you want to end wars you have to talk to both sides”. Rich, coming from the guy who talked to the Kremlin without Kyiv present.

Still, the letter was seen as a “good, positive first step” in convincing Trump to restore aid to Ukraine, but needs to see confidence-building measures first. This comes after Ukraine signaled it was ready to sign a minerals deal, but also alongside the revelation that the CIA had cut intelligence to Ukraine in what is possibly part of the US cutting off military aid to Ukraine, severely affecting its ability to fight Russia.

Over in Europe
On the other side of the pond, UK PM Starmer is hoping to be a bridge between Europe and the US, and has called for “cool heads”, tapping into his lawyering skills to put forth a dispassionate and methodical approach both in meeting Trump as well as attending the European summit. Starmer was also revealed as the one who had coached Zelenskyy on how to start repairing the rift caused by the heated exchange.

Meanwhile, the European Commission has proposed to borrow up to EUR150 bil (RM710.92 bil) to lend to EU governments under a rearmament plan driven by fears of Russia’s war footing and uncertainty of US protection in the event of hostilities. The proposal is part of a package that could mobilise up to EUR800 bil for European defence.

Elsewhere in Europe, Trump has stated yet again that he wants to make Greenland part of the US. Greenland’s PM Egede politely refused, saying that the Greenlanders will be the ones to determine their future, not the American leader. As an aside, Taiwan has looked to Ukrainian companies for contingency planning assistance, in the face of China’s heightened threats. Could it be because Taiwan has seen how easily the US pulled back its promise of support for Ukraine?

The USD22.8 bil Panama deal
A group backed by investment firm BlackRock has agreed to buy a majority stake in the Hong Kong subsidiary that runs ports along either side of the Panama Canal, giving the US firm control over key docks. The deal, valued at USD22.8 bil (RM100.99 bil), was made between the investor group and Hong Kong-based CK Hutchison.

This might be where Trump met his match in the art of the deal, though. Hong Kong billionaire Li Ka-shing, who leads CK Hutchison, was already aware of the pressure from the US over two ports in particular, and decided to sell the bulk of the shares in the subsidiary to the BlackRock group, exiting a geopolitically sensitive area with a boatload of cash – USD19 bil, to be specific, with the rest of the USD22.8 bil used to pay off some shareholder loans.

Still, Trump is celebrating, calling the deal the start of his administration reclaiming the Panama Canal. Of course, Panamanian President Mulino has called Trump a liar for saying that, asserting that the Panama Canal is not in the process of being reclaimed, as it is Panamanian and will continue to be so.

E-commerce, Castrol, and a Coreweave IPO

• Sea sees second successive year of surplus
  Shopee’s parent company Sea reported a profit of USD447.8 mil (RM1.98 bil) for 2024, up 175.2% from 2023’s USD162.7 mil. Revenue also grew 28.8% to USD16.8 bil compared to the previous year’s USD13.1 bil. The group’s CEO expects all of its businesses to remain “profitable and self-sufficient” moving forward.

• Saudi Aramco exploring acquisition of BP’s Castrol unit 
  Saudi Aramco is in the early stages of considering a potential bid for the lubricant business, at a time when BP is mulling a possible sale of Castrol, among other options. Should the lubricant unit go on sale, its expected value is between USD6 bil (RM26.58 bil) to USD8 bil. BP is also currently targeting USD20 bil in divestments by 2027, part of its CEO’s strategy to reduce capital expenditure and cut costs.

• Nvidia-backed cloud firm aims for IPO 
  CoreWeave, a cloud computing firm backed by chipmaker Nvidia, has filed for an IPO, revealing that it saw an eight-fold surge in revenue for 2024. This surge saw the firm reporting a revenue of USD1.92 bil (RM8.50 bil) for the year, compared to 2023’s USD228.9 mil. However, its losses also widened to USD863.4 mil in 2024 compared to 2023’s USD593.7 mil. It is reported that the firm is looking to raise more than USD3 bil from the sale share, with analysts of the opinion that the IPO “should be one of the headlines of 2025”.

  CoreWeave also announced that it is acquiring AI developer platform Weights & Biases in a deal reported to be valued around USD1.7 bil. For CoreWeave, the move would help extend its cloud platform ahead of its IPO. Weights & Biases provides solutions for AI model training, evaluation, and monitoring, counting OpenAI and Meta among its clients.

Shorts:

1. Serbia opposition sets off flares, smoke bombs in parliament
   Opposition lawmakers threw smoke grenades and tear gas during the spring session of parliament, in a move meant to protest against the government and support demonstrating students. Two lawmakers were injured, with one suffering a stroke. Watch here.

2. Apple launches new MacBook Air with latest M4 chip 
   The new M4 chips allow Apple to offer Apple Intelligence features at a lower price point, in a move to persuade consumers to upgrade their devices and spur sales. The base model will be priced at USD999 compared to the previous generation’s USD1,099.

3. Trump makes 13-year-old cancer survivor a Secret Service agent 
   During his address to Congress, US President Trump unveiled the newest member of the US Secret Service, 13-year-old DJ Daniel, who was diagnosed with brain cancer in 2018 and given 5 months to live. He was officially made an agent during the event, which follows how he has been made an honorary law enforcement officer several times already. The cancer survivor had always dreamed of becoming a police officer.

5. FOR YOUR EYES 📺

1. In a volatile financial and political market , always remember, cash is king

2. The 33-year Ramadan cycle. The holy month begins 10-12 days earlier each year. 2030 will be interesting as we will be observing Ramadan twice in a single year.