☕️ US to consider granting Malaysia zero tariffs on palm oil, cocoa

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

The Inland Revenue Board (LHDN) found that, between January 1, 2024, to August 31, 2025, a total of 321 individuals owed about RM1.8 bil in additional taxes (RM5.61 mil per pax on average), with 1,033 companies owing about RM15.2 bil (RM14.71 mil per company on average), leading to a total of about RM17 bil owed, including penalties. Now, the agency is currently urging taxpayers to voluntarily disclose any non-compliance or errors in their tax information voluntarily. In exchange, LHDN will offer lower penalty rates compared to those imposed after audits or investigations. For context, the Income Tax Audit Framework usually applies a 15% penalty for voluntary disclosures made before an audit begins. With the current offer, the amount is reduced to 10%, though this is only for taxpayers who submit their first voluntary disclosure through an Amended Return Form, followed by an additional voluntary disclosure within six months from the due date for filing the Income Tax Return Form.

China has the world’s largest prison for journalists, with at least 124 media workers behind bars. The country is also ranked 178th out of 180 countries and territories in the 2025 Reporters Without Borders World Press Freedom Index. One of the latest cases involved the Chinese journalist who documented the early phases of the COVID-19 outbreak from the pandemic’s epicentre. Zhang Zhan, 42, had already served four years in prison for posting first-hand accounts from the central city of Wuhan on the early spread of the virus, sentenced on a charge of picking quarrels and provoking trouble. The same charge has been used again to sentence her to another four years, a mere three months after she was released.

What is the price of a national treasure? For a Malayan tiger, that price is apparently up to RM500,000 on the black market, which could go even higher if the carcass was already rendered into parts. Sadly, this is the kind of price tag that will keep the big cat firmly in the crosshairs of poachers. Recently, a dead tiger was found in the back of a car in Mersing, Johor, during a raid. Three suspects were arrested for failing to produce the special permit required to possess or keep the animal, leading the authorities to believe that the carcass was destined for the black market. According to the WWF, there are fewer than 150 wild Malayan tigers as of 2022.

3. IN MALAYSIA 🇲🇾

Trade negotiations with the US are on track
The chief negotiator for the official tariff negotiations, Mastura Ahmad Mustafa, said that the US has agreed to consider granting tariff exemptions - specifically zero tariff rates - on several commodity products not produced in the US, including palm oil and cocoa. On top of that, Malaysia also requested zero tariffs for furniture, as well as automotive and aerospace parts and components. However, Mastura added that for the trade deal that will be finalised by next month, key commodities - semiconductor and pharmaceuticals, will not be included as both sectors are included in the United States’ Section 232 of the Trade Expansion Act of 1962, where Uncle Sam can impose additional tariffs on the grounds of national security. Mind you, that semiconductors accounted for almost 70% of total exports to the US. It is good to get the low-hanging fruit, but do not forget the golden goose, please.

Our national embarrassment - FAM
The football global governing body, FIFA, has sanctioned and impose a 12-month ban to seven Malaysian national team players (warning: none of them sounds like a local name), namely, Garces, Gabriel Arrocha of Unionistas de Salamanca, Rodrigo Holgado of America de Cali and Imanol Machuca of Velez Sarsfield, as well as Joao Figueiredo, Jon Irazabal and Hector Hevel for allegedly using doctored documentation to play in an Asian Cup qualifier for Malaysia against Vietnam, where Harimau Malaya won 4-0. According to FIFA's Disciplinary Committee, the seven players breached Article 22 of the FIFA Disciplinary Code, which is concerned with forgery and falsification. On top of that, FAM also has to pay a fine of 350,000 Swiss francs (RM1.85 mil) while the players have been fined 2,000 Swiss francs each. The decision can be appealed before the FIFA Appeals Committee, and unsurprisingly, FAM will do so.

In responding to the matter, the Malaysian Anti-Corruption Commission (MACC) said that it will ‘duduk tepi padang’ and let FAM sort the matter. MACC stated that based on initial checks, this issue appears to relate to a technical process and does not fall under the MACC's purview. No offence, as per the MACC Act, has been identified thus far.

Business news

ZUS Coffee heads west
ZUS Coffee sets its goal to enter Pakistan and Morocco by 1H2026, in its vision to expand beyond ASEAN countries. Zus Coffee COO Venon Tian said that the company is targeting to increase the number of stores in Malaysia to 850. It also aims to have 20 stores in Thailand and 190 to 200 in the Philippines, where it currently operates. Zus Coffee is also planning to open up a shop in Indonesia in 1Q2025. Nonetheless, the local coffee brand will still surpass its 1,000-store mark by the end of the year. Here’s where Pakistan and Morocco are on the world map.

AirAsia is mulling the purchase of China’s Comac jets
AirAisa looks to be Comac’s first love. The Chinese airplane manufacturer’s dream of penetrating the international market is one step closer to reality as the Malaysian low-cost airline is in discussions to buy Comac’s C919 jets. This news was confirmed by AirAsia CEO Tony Fernandes at the Belt and Road Summit in Hong Kong. Fernandes added that these negotiations make AirAsia the "first foreign airline to be working with COMAC" on such a deal. Another low-cost player, Irish-based Ryanair, also flirted with the idea of adding the Chinese narrowbody twinjet to its fleet, which is currently dominated by aircraft from the Boeing 737 Next Generation (737NG) and 737 MAX families.

Oil is the new black gold for banks - sorta
Three banks - Maybank Bhd, CIMB Group Holdings Bhd and RHB Bank Bhd, emerged as substantial shareholders of Vantris Energy Bhd, the new name for Sapura Energy Bhd, following the completion of the oil and gas company’s regularisation plan. The restructuring is expected to cut total borrowings to about RM5.6 bil from RM10.8 bil and reduce annual interest costs by more than RM500 mil, or around 60%. After the restructuring exercise, Maybank holds a 20.27% stake in the company, while CIMB Group and RHB Bank own 12.13% and 7.21% of the company, respectively. No, the banks did not deliberately invest in this failed company - they had to swallow the pill to restructure their loans and turning it into equity.
Learn: Debt/Equity swap: Benefits and Impact on Bankruptcy

Shorts

1. Sabah, Sarawak parliamentary seats will be increased

   PM Anwar announced that the parliamentary seats in Sabah and Sarawak will be increased for the first time since 1993. However, PM Anwar stopped short of stating that the seats’ increase will follow the formula outlined in the 1963 Malaysia Agreement, where Sabah and Sarawak will occupy two-thirds of the Parliament.

2. Community service for minor littering from Jan 1 next year

   Housing and Local Government Minister Nga Kor Ming said that starting next year, all offenders involved in minor littering will need to serve community service of up to 12 hours within a six-month period, aiming to educate the public and raise awareness of environmental cleanliness, while preventing repeat offences. Nga said countries such as South Korea, Sweden, Singapore, and Japan had successfully implemented similar approaches.

3. The abandoned Putrajaya monorail bridge will no longer be a white elephant

   Federal Territories minister Dr Zaliha Mustafa announced that RM15 mil has been allocated to upgrade the 200-meter Putrajaya monorail bridge into a pedestrian walkway and cycling path starting next January. Being abandoned for more than 20 years, finally, the bridge will have a use, and the physical work is now halfway complete. Only the bridge connection, ramp and finishing touches remain.

4. AROUND THE WORLD 🌎

TikTok US for only USD14 bil?
Last Thursday, US President Donald Trump signed an executive order regarding his plans to sell Chinese-owned TikTok to a US entity. The deal, which must be completed within 120 days, would spin out TikTok US into a new joint venture where ByteDance’s stake would be reduced to less than 20% to satisfy US national security concerns. But what sent investors into shock and confusion was the valuation of the “TikTok US” company - a mere USD14bil that pales in comparison to previous estimates that scaled closer to USD40 bil. The valuation of the US business is far lower than the valuation for ByteDance overall, which is estimated to be about USD330bil. By comparison, Meta, which owns Facebook and Instagram, is valued at USD1.8tril.

A possible explanation: That USD14 bil valuation isn't the real number — at least not to ByteDance, the Chinese company that owns TikTok globally. A report by Bloomberg said that ByteDance would get at least 50% of US TikTok's profits if the deal goes through despite owning only 20%. Numerous details need to be fleshed out in the order too, including how the US entity would use TikTok's most important and coveted asset: its recommendation algorithm. Note that Trump did say it is going to be “American-operated all the way”. While Trump said his Chinese counterpart Xi Jinping has given his blessing, Beijing has yet to say publicly whether it has granted approval.

Wait a minute - has it really been because of the Chinese after all? 🤔 

Business

The quiet Chinese billionaire - iPhone 17 biggest winner
The biggest winner of the iPhone 17 launch has to be Wang Laisheng, cofounder and vice chairman of Luxshare Precision Industry, a China-based manufacturer that originally made cables and accessories for Apple products before getting the bump up to start assembling the iPhones. He had a great week in the market, with his fortune jumping significantly in the days since the launch of the iPhone 17 - a period that's seen Luxshare stock spike 32%. According to Forbes data, Wang's net worth is now USD14.3 bil. That's up from USD9 bil as of last Thursday's close, before the iPhone 17 launch. He added USD788 mil to his net worth on Wednesday alone as Luxshare stock rose another 7%. It is said that Luxshare has signed a deal with OpenAI to produce a consumer AI device, now that the company has “proven its worth” thanks to Apple.

Microsoft cancels Israeli military’s access to some of its services
Microsoft has confirmed that they have cancelled some services provided to the Israeli military, in response to joint investigation by The Guardian newspaper, +972 Magazine, and Hebrew-language outlet Local Call alleging that Israeli military’s Unit 8200 used Microsoft’s Azure cloud computing platform to store phone call data obtained through mass surveillance in war-torn Gaza and the occupied West Bank. The company said the firm had reviewed the allegations made in the report “based on two principles” and concluded that the Israeli military data storage violated the company’s terms of service, citing that they do not provide technology to facilitate mass surveillance of civilians and that they respect and protect the privacy rights of their customers. An ex-employee fired over protests against the company’s involvement in the Gaza war said that Microsoft has only disabled a small subset of services to only one unit in the Israeli military - the vast majority of Microsoft’s contract with the Israeli military remains intact.

AI can now pass the hardest level of the CFA exam
A new study developed by researchers from New York University Stern School of Business and GoodFin, an AI-powered wealth management platform, has discovered that technology underpinning a slew of artificial intelligence (AI) models is now advanced enough to pass even the most difficult Chartered Financial Analyst exam (CFA) Level III. It includes reasoning models like o4-mini, Gemini 2.5 Pro and Claude Opus, which were able to use “chain-of-thought prompting” to successfully pass. However, GoodFin CEO said that she does not think AI will ultimately replace the CFA, as there are parts where human skills are still needed such as forming context and intent, and understanding body languages and cues. For humans to pass the prestigious three-part exam, it typically takes around 1,000 hours of studying over the course of several years.

Shorts on Israel

1. Trump said he won’t allow Netanyahu to annex West Bank

   Far-right Israelis view annexation as a means of preventing a Palestinian state being created. Ultranationalists in Netanyahu's governing coalition have repeated calls for Israel to annex (meaning here) the West Bank - part of the Palestinian territories - outright. But, Trump said he is not letting it happen and added that they are getting “pretty close to having a deal on Gaza, and maybe even peace”. He will be meeting Netanyahu today, as Israel faces increasing global pressure to end the genocide in Gaza and occupation of the West Bank.

2. Colombia’s President Petro unshaken

   Colombian President Gustavo Petro’s visa to travel to the US has been revoked by the US, and he doesn’t care. Taking to social media X, he said that he is a free person and that the US “revoking it for denouncing genocide shows the US no longer respects international law”. The revocation came after what the US said as Petro’s “reckless and incendiary actions” in relation to a speech he gave to pro-Palestinian protesters outside the UN headquarters in New York city. Petro has been firm with his stance - in July, he reimposed a total ban on coal exports to Israel and severed diplomatic ties with Israel in 2024, citing the actions of its “genocidal” government in Gaza, including attacks on Palestinian aid seekers, which he said were reminiscent of the Holocaust.

5. FOR YOUR EYES 📺

1. Avatar: Fire and Ash new trailer drops.

2. How do people use ChatGPT?

3. Grand celebration - CNY and Ramadan Day #1 fall in the same week in 2026.