☕️ Vote BN, if no PN, says PN

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

2,050MW of electricity and 55.83 mil litres of water per day – These are the maximum levels of demand approved by the government for use by data centres in Malaysia as of April 2026. However, local data centres are only using 54% of the electricity and 51.4% of the water allocations. According to Energy Transition and Water Transformation Minister Fadillah Yusof, the government has measures in place to ensure the rapid growth of data centres does not affect water and electricity supplies for existing consumers.

48.5 mil litres – That’s how much reclaimed water Malaysia produces daily, and the government plans to raise output to 118 mil litres per day by 2030. According to Fadillah Yusof, who is also Deputy Prime Minister, a National Water Reclamation Policy is currently being drafted. The aim is to expand the use of recycled water for industrial activities, including data centres, while preserving treated water supplies for households. As for our resource-scarce neighbour, Singapore produces 760 mil litres - 15x more than us.

RM11.2 bil – That’s how much Malaysia has spent on subsidies for the widely used RON95 petrol over the first eight months since the rollout of the targeted subsidy approach. The Ministry of Finance said fuel consumption among about 14 mil eligible citizens reached a total of 11.1 bil litres as of end-May this year, with sales valued at about RM22.1 bil. Of that amount, RM11.2 bil was borne by the government as fuel subsidies.

3. IN MALAYSIA 🇲🇾

Government websites hacked
Several Malaysian government websites, including those of the Health Ministry (MOH), Malaysia Co-operative Societies Commission, Handicraft Development Corporation and the Women’s Development Department, were compromised following a cyberattack linked to a vulnerability in the Joomla content management system (CMS). The National Cyber Security Agency (Nacsa) said the flaw allowed attackers to gain unauthorised access by creating fake administrator profiles and executing malicious code on affected servers. This could lead to data theft, website defacement, backdoor access and even full takeover of hosting systems, putting the confidentiality, integrity and availability of government data at risk.

MOH confirmed the disruption was caused by a suspected cybersecurity incident and said investigations and recovery efforts are ongoing. It added that it is working with relevant agencies to strengthen cyber defences and prevent similar incidents. Users were temporarily directed to official social media channels for updates before the MOH website was restored.

Buatan Malaysia: Anti-drone tech
The Royal Malaysian Air Force (RMAF) has developed Birdie-X (cute but deadly name), Malaysia’s first anti-drone laser system, marking a major step in the country’s defence technology development. The project was created in response to rising threats from unmanned aircraft (US-Iran, Russia-Ukraine wars are good examples), which are now used not only for surveillance but also potential attacks on strategic assets. It was developed through collaboration between RMAF, the Defence Science and Technology Research Institute (STRIDE) under the Defence Ministry and local company Benua Defence Sdn Bhd, progressing through operational studies, concept design, system development and technical testing. Check out the birdie here.

The system also reflects efforts to reduce reliance on foreign military technology and is designed to counter small low-profile drones that are difficult to detect using conventional radar. It includes safety measures such as target-verification procedures, while STRIDE is conducting technical assessments to ensure compliance with international safety standards before deployment. The project is also seen as having commercial and export potential, supporting Malaysia’s long-term defence technology development.

Johor Election

PN says back BN if needed: The Johor state election campaign is off to a fiery start, with Pakatan Harapan (PH) and Perikatan Nasional (PN) exchanging criticism over campaign strategies and voter support. Perikatan election director Datuk Seri Muhammad Sanusi Md Nor urged voters to back Perikatan candidates wherever possible, describing PAS candidates as the coalition's strongest choice because they are free from corruption and scandals. He also called on voters not to support DAP, arguing that both PH and Barisan Nasional (BN) have failed to live up to their promises. However, Sanusi acknowledged that if Perikatan is not contesting a seat, voters should instead support BN as the "lesser evil" to prevent PH from securing victory. Perikatan is contesting 33 of Johor's 56 state seats, with candidates from PAS, Bersatu and other component parties.

PH blames PN tactics: Meanwhile, PH has blamed PN's selective election strategy for creating 14 direct contests between PH and BN, despite both coalitions being partners in the Federal Unity Government. PH Secretary-general Saifuddin Nasution Ismail said PN’s decision to contest only selected seats has given BN a clearer path in certain areas, although he stressed that outcomes depend heavily on local factors such as candidate appeal, demographics and constituency issues. PH said its focus is on winning enough seats to form the next Johor government rather than simply increasing opposition numbers. The coalition is expected to unveil its manifesto soon, focusing on economic growth, stability and balanced development. Campaigning continues until polling day on July 11, with about 2.7 mil voters eligible. A simple majority of 29 seats is needed to form the state government.

Shorts

1. LRT3 finally here, with free rides
   Commuters can enjoy free rides on the LRT3 Shah Alam Line and its feeder bus services from June 29 until July 31 following an announcement by PM Anwar Ibrahim. The new RM16.63 bil rail line is also supported by feeder buses, Rapid On-Demand services and accessible facilities for persons with disabilities. Watch the promotional video here - the ending got us.

2. RM53 mil AI chips seized

   Customs officials have seized AI chips worth RM52.9 mil at Kuala Lumpur International Airport (KLIA) after uncovering 72 server units falsely declared as computer components. The shipment, found on June 5, was allegedly being routed through Malaysia for re-export without the required permits under the Strategic Trade Act. Authorities also linked a separate case involving vape liquid worth RM1.19 mil hidden inside CPU casings, with investigations ongoing.

3. Hybrid work for civil servants

   The Cabinet has approved a Hybrid Work Day system for civil servants starting August 1, allowing staff to work two days from home and three days in the office under a new framework set by the Public Service Department. The arrangement replaces the existing work from home policy and will apply based on job suitability and departmental approval. Authorities said essential services will continue as normal while monitoring systems are introduced to maintain performance and integrity.

4. AROUND THE WORLD 🌎

Iran-US blame game continues, Israel-Lebanon not compromising
Iran and the US are back into fighting as they accuse each other of violating an increasingly precarious interim deal signed less than two weeks ago to end their war. Meanwhile, in Lebanon, Israel said it had struck Iran-backed Hezbollah militants in areas Tehran says are key to its peace deal with Washington. Israel, which is not a party to the US-Iran deal, and Lebanon have repeatedly agreed to US-brokered ceasefires, the latest on Friday. But these have had only limited effect, with Israel insisting it will not withdraw from Lebanese territory it has seized and Hezbollah repeatedly rejecting calls to give up its arms as long as Israeli troops remain in place. Despite mediated talks in Switzerland a week ago, all the fighting and recriminations have since resumed and intensified.

Tankers attacked
In the Strait of Hormuz, a Singapore-flagged container ship Ever Lovely suffered damaged after it was struck by an unknown projectile off the Omani coast in the Strait of Hormuz on Thursday. On Saturday, a Panama-flagged tanker was attacked by an Iranian drone. While hundreds of ships laden with oil have been stranded in the Gulf since the war, oil prices have tumbled close to pre-war levels as they began leaving over the past two weeks, thanks to the interim deal, albeit shaky and still filled with uncertainties.

Is Indonesia risking dirty money?
Experts are concerned that Indonesia’s move to apply legal protections for investors in President Prabowo Subianto’s sovereign wealth fund is risking questionable fund origins and further eroding the reputation of Southeast Asia’s largest economy. The new provision shields purchases of bonds from the fund, known as Danantara, from criminal, civil or tax probes. It also says bond records can’t be used for tax assessments or evidence in court proceedings. A major theme since Prabowo took office includes funnelling more assets and revenues from the country’s tycoons into state coffers. In that sense, the immunity offers a safe route for hidden funds, onshore or offshore, into Prabowo’s budget. But it also runs counter to his parallel goal of rooting out corruption. The PPATK, the country’s financial intelligence unit, has backed the law and doesn’t see it curbing the agency’s power, raising money-laundering risks or affecting Indonesia’s compliance with international standards.

AI

Samsung readies USD 648 bil to ride on South Korea AI boom
Samsung Group is set to reveal a 10-year investment plan that will pledge KRW1,000 tril (USD648 bil - about 1.5x Malaysia’s GDP) to anchor South Korea's next growth cycle, including a possible KRW300 tril push to build chip factories in the country's southwest. The investment would include AI data centres, batteries and displays. The initiative aims to turn South Korea's AI boom into a nationwide growth engine by easing infrastructure bottlenecks and jumpstarting jobs and advanced manufacturing beyond the capital. Although it has also fuelled debate over how the windfall should be shared, as Samsung Electronics and SK Hynix reap record profits.

OpenAI IPO will only happen next year
OpenAI’s IPO will have to wait until next year, as the company is reportedly considering holding off the public debut for now. OpenAI's advisers presented company executives with the option of waiting until 2027 to go public with a USD1 tril (RM4.1 tril) valuation, or lower the targeted valuation for a quicker listing. Separately, US President Donald Trump's administration has asked OpenAI to stagger the release of its new model over security concerns.

Shorts

1. Light aircraft crashed into Beijing’s tallest skyscraper

   A single-engine, two-seat light sport aircraft has collided with Beijing's tallest building while flying in the Chinese capital on Friday, killing the pilot and injuring 13 others who were not on board. The buildings 528-meters high, known as CITIC Tower or China Zun, in Beijing's Central Business District. The accidents are considered unusual for Beijing, where airspace is heavily restricted to both aircraft and drones. The last aircraft crash in Beijing was in 2022, when a tourist helicopter crashed during a flight between the Changping and Fangshan districts, killing the two pilots on board.

2. Virus found on fake China-made USB sticks sold online

   Nikkei Asia reported that fake USB sticks loaded with “China-linked” viruses have spread across online retailers, infecting computers at factories and research facilities in a variety of industries. The publication discovered about 8,400 of the lowest-rated reviews for the top 100 USB sticks listed as recommended products around April 21 on Amazon's Japan and US sites revealed two similar cases in Japan and 23 in the US since 2017, as complaints have increased since 2024. It is believed that a Japanese soldier had used the memory sticks infected with a virus on devices connected to secure systems for almost a year before it was discovered in February 2025.

3. UN issues warning of the rise of old and new drug productions

   The United Nations, through its latest World Drug Report by the UN Office on Drugs and Crime (UNODC), has warned that established and new narcotics are surging as traffickers exploit global instability to push into new markets. The UN notes that 755 types of new psychoactive substances (NPS) were in circulation in 2024, with 118 of them reported for the first time. Cocaine production is also at an all-time high, increasing fourfold within a decade to more than 4,000 tonnes of pure product in 2024. Methamphetamine trafficking is thought to be growing by 13% annually, based on drug seizures. The UN also warned that this could cause a permanent shift in the global market and risks “elevating levels of harm” to users.

5. FOR YOUR EYES 📺

1. National Geographic looked into the world of contract killing - assassins for hire.

2. FIFA World Cup knockout stage is here. See the Round of 32.

3. From black/white to neon yellow - David Attenborough (yes, that same one) had a hand in it.