☕️ Post-Sabah Election goodies for SMEs

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

Private Retirement Schemes (PRS) were introduced in Malaysia in 2012 and were meant to complement EPF by providing individuals with the flexibility to invest for their retirement through professionals. Such schemes were managed by licensed fund managers regulated by the Securities Commission Malaysia. More than a decade later, take-up has been modest. As of mid-2025, PRS’ assets under management stood at RM8.5 bil, with just over 645,000 members (RM13.18k average per member). Still, this is just a small fraction compared to EPF’s 16.5 mil contributors.
Learn: What is PRS?

780,000 individuals. That’s how many people in Malaysia are registered as “person with disabilities” (OKU). This makes up about 2.3% of the population. However, according to Health Minister Dr Dzulkefly Ahmad, this is significantly lower than the World Health Organisation’s estimate of the country’s OKU group of 16%. He finds the disparity in numbers completely unacceptable, as it means there are still those who are falling through the cracks and are left without the proper treatment or intervention. Definition of PWD here and tax relief for PWD here.

5,000 outlets in 14 countries. That’s how many outlets Malaysia-born home improvement retailer Mr DIY has operating globally. The business, which was founded in 2005, has grown into a household name with 1,500 outlets in Malaysia alone. Moving forward, CEO Adrian Ong shared that he hopes to triple the business in the next five years. He believes that keeping the customer happy and prices low will bring growth. He’s not wrong. Mr DIY Malaysia reported a revenue of RM1.2 bil for its most recent quarter, with a profit after tax of RM136.1 mil. Some other countries the retailer has presence in: Thailand, Indonesia, Philippines, India, Bangladesh, Poland (Eastern Europe, an area of long-term interest for further growth).

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3. IN MALAYSIA 🇲🇾

PTSD PSES - Post Sabah Election Syndrome
The tsunami of defeat had washed out the ruling Pakatan Harapan (PH) in the Sabah State Election, where PH (PKR and DAP) only won 1 out of 20 seats contested. Almost a complete wipeout in the ‘Negeri di Bawah Bayu’. To rub salt to the wound, even former Economy Minister, Rafizi Ramli, said in his podcast that warnings were given to PH’s top brass before the state election, but they were being ignored, and now those old warnings looked prescient. One example, PM Anwar Ibrahim’s personal involvement in campaigning vigorously across Sabah backfired spectacularly, amplifying perceptions of federal overreach and eroding his reformist credentials.

Whether as a result of the Sabah state elections or not, PM Anwar has responded quickly by announcing several immediate policy actions based on feedback from the business community gathered from the ground during the campaigning period. Amongst the changes:

To raise the e-invoicing threshold to RM1 mil: PM Anwar agreed that small and medium traders had struggled with the policy, which he agreed contributed to PH’s losses in urban Chinese areas.

To double allocations in speeding up tax refunds: PM Anwar said that Putrajaya will put aside RM4 bil, from the initial RM2 bil allocated. PM Anwar angkat bakul sendiri and stated that he is a leader who not only listens but responds. Leadership is a responsibility, not a privilege.

In a separate event, Human Resources Minister Steven Sim told the media that the Social Security Organisation (PERKESO) plans to exempt small and medium enterprises (SMEs) from mandatory job vacancy reporting following amendments to the Employment Insurance System Act. Sim added that the exemption is contingent on stakeholder consultations.

Overall, the PM Anwar-led government is trying to ease the burden of businesses in Malaysia, as the narrative during the Sabah State Election’s campaigning period was that Putrajaya is getting more and more anti-business. PM Anwar even went above and beyond by saying that all royalties from his new book will be channelled to poor students. The said book is titled ‘Rethinking Ourselves: Justice, Reform and Ignorance in Postnormal Times ‘. You can purchase the book here.

While we are on Sabah, there was some sad news coming from Sabah last week. Kinabatangan MP and veteran politician Bung Mokhtar Radin has passed away at the age of 66. Bung Moktar was admitted to a private hospital for a severe lung infection. His death comes barely six days after he retained his Lamag state seat in the November 29 Sabah election.

USA and Malaysia

Intel to invest more in Penang
PM Anwar announced that US chipmaker Intel will pour another RM860 mil into its Penang hub, for assembly and testing operations. The additional investment is on top of Intel’s previous RM12 bil investment to develop its advanced packaging plant in Penang, which is now 99% complete. The Intel plant is an important piece of Penang’s ambitions to position itself at the forefront of advanced packaging, IC design and other high-value semiconductor activities.

Trump mentioned Malaysia again
During US President Donald Trump’s announcement to approve the immediate production of compact vehicles in the US, Trump apparently takleh lupakan Malaysia out of his mind as his current decision on the country’s automobile industry took inspiration from the popularity of compact cars in Asian countries, after observing them on the roads during his recent trips to Malaysia, Japan, and South Korea. His exact words are - “If you go to Japan, where I just left, and if you go to South Korea, Malaysia and other countries, they have a very small car, sort of like the Beetle used to be with Volkswagen.”

Shorts

1. MCA to BN: Do not work with PH in GE16

   MCA President Wee Ka Siong sent a stern warning to BN to end its alliance with PH for the next general election, because if not, MCA may leave BN. Wee said that since coming into power, DAP and Harapan have made U-turns on countless issues, abandoning promise after promise. However, despite sounding the calls to leave BN, Wee said that MCA will not join Perikatan Nasional (PN). He highlighted the acrimony between PAS and the Chinese community, and noted that Chinese voters ‘strongly rejected’ the Islamist party.

2. Padang Serai MP to be charged with corruption

   The Malaysian Anti-Corruption Commission (MACC) will charge Padang Serai MP Azman Nasrudin for an alleged corruption case involving a Kedah state-owned cattle farming joint venture project. According to The Star, a hefty sum of RM400,000 was given as a bribe to facilitate the approval of land use rights for a feedlot project.

3. Singapore to open a consulate in Sarawak and Sabah

   During the 12th Malaysia–Singapore Leaders’ Retreat, Singapore’s PM Lawrence Wong announced that Malaysia has formally approved Singapore’s proposal to open consulates in Sabah and Sarawak, a move expected to deepen people-to-people ties and expand services for Singaporeans in East Malaysia. On energy cooperation, Wong said there was good momentum in the energy partnership between the two nations, citing the city-state’s approval to import low-carbon electricity from Sarawak.

4. AROUND THE WORLD 🌎

South East Asia floods

New heavy rain warning threatens recovery for Indonesia
The official death toll from the ongoing climate-fuelled flood disaster has climbed to more than 1,750 people in the worst-affected countries of Indonesia, Sri Lanka and Thailand, with Indonesia suffering the most. At least 908 people were confirmed dead and 410 were still missing, where more than 800,000 people have been displaced. Making matters worse, Indonesia’s meteorological agency warned that Aceh could see “very heavy rain” through Saturday, with North and West Sumatra also at risk. Starvation is also emerging as the gravest threat for victims.

Indonesia investigates companies suspected of violating forest regulations
The terrible flooding is a result of two typhoons and a cyclone that swept through the region at the same time, causing heavy rains, which experts say is becoming more likely due to climate change. Green groups blame deforestation linked to mining and logging for amplifying the damage. Following this, the Indonesian government proceeded to investigate up to 12 companies suspected of clearing forests around flood-hit areas in Sumatra, reviewing forest governance and considering a moratorium on new permits and revoking the licences of violators. To date, the government has halted the operations of mining services company PT Agincourt Resources, state-owned plantation firm PT Perkebunan Nusantara III and hydropower developer PT North Sumatera Hydro Energy and ordered them to conduct an environmental audit, after an aerial inspection revealed a massive land clearing upstream from where the companies operated that may have increased the risks of flooding and landslides in the area.

Russia x India - strengthening ties
Russian President Vladimir Putin said that Moscow is ready to offer India “uninterrupted fuel supplies”, but India, despite shaking hands with Russia to expand their trade and defence ties, received the comment quite cautiously. Russia also said it wants to import more Indian goods in an effort to grow trade to USD100 bil by 2030. India is the world’s top buyer of Russian arms and seaborne oil, but the country is still in talks with the US on a trade deal to cut punitive tariffs imposed by President Donald Trump on its goods over India’s purchases of Russian oil. The irony is that the US and EU still import billions of dollars’ worth of Russian energy and commodities, ranging from liquefied natural gas to enriched uranium, despite economic sanctions. Trump earlier doubled India’s tariff from 25% to 50% over India’s trading with Russia and India now doubled down on its relationship with Russia, albeit cautiously. Expect Trump to fire back over the next few days.

Colombia signs peace-building deal with Clan del Golfo drug gang
This is a one-of-a-kind peace brokering deal involving a country and…..a drug trafficking gang. A “Commitment to Peace” agreement has been reportedly signed between the Colombian government and the Clan del Golfo, also known by its self-designated name Gaitanista Army or AGC armed group, in Qatar’s capital, Doha. The gang is accused of shipping hundreds of tonnes of cocaine to the US and Europe each year.

In a joint statement on Friday, the Group of Facilitating States – Qatar, Norway, Spain, and Switzerland – said the signing “reflects compromise, responsibility, and commitment to alleviate the conditions for the civilian population and end armed conflict.” It explicitly links peace to the dismantling of the AGC’s criminal economy with a view to reintegrate child soldiers into Colombian society. The AGC is considered the largest illegal armed group in Colombia following the historic 2016 peace agreement with the now-dissolved Revolutionary Armed Forces of Colombia (FARC). This news was not widely reported in mainstream media though, wonder why that is? 🤔 

Shorts

1. South Korea launching app to track stalkers

   South Korea is amending the country’s electronic monitoring law so that stalking victims can track their stalkers in real-time on an app, if they are nearby. Victims can receive text message alerts when their stalkers are near, although not with an exact location. The justice ministry said it was also working on integrating the tracking system into the national emergency hotline, so police could be deployed to protect victims as needed. Critics have voiced concern over the pervasiveness of stalking in South Korea, which they see as part of a wider problem of violence against women - many of whom have been secretly filmed by spy cameras and faced hostile threats for being feminists.

2. Netflix to acquire Warner Bros for USD72 bil

   Streaming giant Netflix is set to acquire the film and streaming businesses of Warner Bros Discovery for USD72 bil in a major Hollywood deal that would probably “re-orient Hollywood”. Netflix said that by combining the library of Warner Bros shows and movies with the streaming platform’s series, they will be able to give audiences more of what they love and “help define the next century of storytelling”. Netflix estimates it will find USD2 bil to USD3 bil in savings, mostly through eliminating overlaps in the support and technology areas of the businesses. Major WB assets that is coming over to Netflix: Harry Potter, Lord of the Rings, DC Universe, Game of Thrones - view more here. Not a done deal yet as it still needs anti-trust clearance.
   Learn: What is anti-trust? 

   2010: How it started. 2025: How it’s going

3. Europe’s deadly Black Death plague was triggered by global climate shock

   A climate shock from a volcanic eruption around the year 1345 may have triggered Europe’s deadly Black Death plague that swept across Europe and killed up to half of the population. Scientists have studied clues preserved in tree rings which suggest the eruption triggered a climate shock and led to a string of events that brought the disease to medieval Europe. This “perfect storm” of a climate shock, famine and trade offers a reminder of how diseases can emerge and spread in a globalised and warmer world, according to experts. Sounds like the Covid-19 we had not too long ago. Read more of the findings here.

5. FOR YOUR EYES 📺

1. The 30 most valuable venture-backed private companies.

2. If and when AI bubble pops, what happens to Malaysian tech companies? A cover story here by The Edge (2020) on the Malaysian players in the semiconductor value chain.

3. What happens when Federal Territory Day in 2026 collides with Thaipusam collides with Sunday? AuntyHR explains, according to the law.

Have a good start to the week!