☕️ Narcos Malaysia: Police bust family-run drug syndicate, seize RM82 mil worth of drugs

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

RM6.48 bil – A government task force in Malaysia has successfully revived 89 private housing projects with this substantial combined gross development value in the first two months of 2025. Out of these, 82 previously categorised as "sick" have now obtained their Certificate of Completion and Compliance (CCC), while another seven are progressing smoothly due to the task force's intervention. As of February 2025, the task force was monitoring a total of 693 problematic private housing projects across the country.

Seven – According to a recent report, a strikingly low number of countries worldwide met the World Health Organization (WHO) air quality standards last year. The findings, compiled by IQAir from a vast network of 40,000 air quality monitoring stations across 138 countries, identified Chad, Bangladesh, Pakistan, India, and the Democratic Republic of the Congo as having the most severely polluted air. The report also suggests that the true extent of the problem could be even worse due to a lack of adequate air quality monitoring in many regions, particularly in Africa.

USD 10 bil (RM43.70 bil) – Spotify reported paying out this massive sum to the music industry in 2024. Their report highlighted that for the first time, artists receiving one in every million streams earned over USD10,000 on average, a tenfold increase compared to a decade prior. However, a separate report from Duetti, which Spotify disputes, claimed that Spotify's payout rate to artists was USD3 per 1,000 streams in 2024, significantly lower than platforms like Apple Music (USD6.20), Amazon Music (USD8.80), and YouTube (USD4.80) per 1,000 streams. Spotify has refuted the Duetti report, stating that the claims are "ridiculous and unfounded" and that they do not pay artists on a per-stream basis.

3. IN MALAYSIA 🇲🇾

To fresh graduates, here are some cues on where you should work

• GLICs adopted a living wage policy - Finance Minister II Amir Hamzah Azizan announced that six government-linked investment companies (GLICs), namely Khazanah Nasional Bhd, Permodalan Nasional Bhd (PNB), the Employees Provident Fund (EPF), Kumpulan Wang Persaraan (Diperbadankan) (KWAP), Lembaga Tabung Angkatan Tentera (LTAT) and Lembaga Tabung Haji (TH), have implemented a living wage policy for all their permanent Malaysian employees. The decision to adopt the RM3,100 living wage policy is part of the GEAR-uP initiative led by the Finance Ministry that seeks synergised efforts across GLICs to catalyse growth in key economic sectors in Malaysia. Why is the benchmark RM3,100? The figure is based on a comparative analysis of industry wages and cost of living standards as outlined in the Belanjawanku 2024/2025 Expenditure Guide, which indicates a minimum monthly expenditure needed for a good standard of living.

• Malaysia Aviation Group to dish out up to 2.5 months' bonus - Malaysia Aviation Group Bhd (MAG) will distribute up to 2.5 months’ salary in bonuses, thanks to its achievement in attaining a second consecutive annual profit, though not as impressive as the six months’ pay bonus in 2024. The Malaysia Airlines Bhd parent is handing out smaller bonuses this year due to lower earnings for the financial year ended Dec 31, 2024 (FY2024). The group reported a net profit of RM54 mil for FY2024, down 93% year-on-year due to an 18% capacity cut across its network in the fourth quarter.

Drug price display law enters full force on May Day
The Putrajaya-mandated drug price display law, which came into effect on May 1, will help consumers to be more informed in making decisions relating to their healthcare. Health Minister Dzulkefly Ahmad and Domestic Trade and Cost of Living Minister Armizan Ali, in a joint statement, said the price transparency mechanism will allow patients to compare prices of medication and exercise judgment in making their choice. However, the authorities will be lenient in their enforcement in the first three months to provide advocacy for health facilities to comply with the law. Doctors opposed the law and the Malaysian Medical Association (MMA) organised a mass protest on May 6. Their reason is that the sale of medication is what helps keep clinics afloat, as general practitioner (GP) fees have not been revised for the past 33 years. They added that the push for the law without revising GP fees will lead to 136,000 private healthcare workers suffering wage cuts, stagnant salaries, or losing their jobs, which could lead to reduced healthcare access for the B40, especially in rural areas.

Meanwhile, pharmacies in Penang have started to comply with the law. One such pharmacy, Welling Pharmacy Rock, said that it will ensure full compliance with the law in order to avoid being fined, while making efforts to ensure price tag visibility. Failure to comply with the order is punishable with up to RM100,000 in fines.

White- and blue-collar criminals in action

• MACC nab four in MEX Extension false claims probe

  The MACC has pulled in four people, including one with a ‘Datuk Seri’ title, to assist in its probe into the alleged submission of false claims amounting to RM360 mil related to the 18km Maju Expressway Extension. The RM360 mil was allegedly siphoned from the RM1.3 bil of funds (27.7% of the funds) raised via sukuk issuance by MEX II Sdn Bhd, an entity owned by Maju Holdings Sdn Bhd, to undertake the proposed 18km Putrajaya-KLIA Highway, also known as the MEX Extension. The project is intended to be a three-lane dual carriageway that will start at MEX's Putrajaya Interchange and merge onto the existing KLIA highway. The sukuk was issued to finance the MEX Extension. However, the project was delayed and eventually stalled due to cash flow issues. The MEX Extension was originally planned for completion by December 2019. Any project in the world will be stalled if almost 30% of the funds intended for the project are missing due to ‘false claims’.

• Narcos Malaysia: Police seize RM82 mil of narcotics, bust family-run drug syndicate

  Police uncovered RM82 mil worth of narcotics in a drug bust involving a family-run, internationally-linked drug syndicate, involving raids and multiple arrests in Cheras and Kajang. According to Bukit Aman Narcotics Crime Investigation Department (JSJN) acting director Deputy Commissioner Mat Zani @ Mohd Salahuddin Che Ali, the syndicate received the drugs — 2.165 tonnes of methamphetamine, ketamine, and ecstasy — from overseas via Port Klang (enough to supply 10.1 mil people, the size of Seoul), in gunny sacks mixed with fine plastic flakes. Then, the syndicate will coordinate, package and distribute the drugs for domestic and international markets such as South Korea and Japan. The police suspect the drugs originated from Latin America, with Malaysia used as a transit point. The police intend to work with the US Drug Enforcement Agency (DEA) on this matter and are investigating links to possible Latin American drug cartels.

Shorts

1. PM’s Office welcomes Kosovo President

   Right after entertaining the Maldives President, Putrajaya now welcomes Kosovo President Dr Vjosa Osmani Sadriu, who arrived yesterday for a four-day official visit. This is Osmani’s first official visit to this country since assuming the presidency in 2021. The relationship between Malaysia and Kosovo is quite special, as the former is one of the first Asian countries to recognise the latter, back in 2008. View Kosovo on map here.

2. Malaysia nabs top spot in open data assessment

   Communications Minister Fahmi Fadzil announced that Malaysia has leapfrogged from the 67th spot in the 2022/23 assessment period to the top spot in the 2024/25 period of the Open Data Inventory (Odin) ranking. Fahmi attributed this success mainly to the efforts of the Department of Statistics Malaysia (DOSM) in developing an inclusive, fact-based data ecosystem.

4. AROUND THE WORLD 🌎

US-Ukraine finally reach a minerals deal
Trump might have just gotten what he wants when it comes to Ukraine: access to its natural resources. Both countries have signed a long-awaited deal after months of negotiations that included a memorable US-Ukraine public shouting match two months ago. In essence, the agreement establishes a 50/50 partnership between the countries, where the US will play a role in attracting investments and technology while the resources remain the property of Ukraine, with a few other conditions added. It is still unclear if the deal includes an explicit security guarantee from the US, something Zelensky really wants for the country. Trump said that the deal represents payback for the money the US has spent on the war so far, which he claims was USD350 bil, but according to a BBC verification, the number was actually much lower. So what does Russia make of it? Well, Putin simply said that the deal was “not a concern” and added that Russia “undoubtedly have, I want to emphasise, significantly more resources of this kind than Ukraine". Nevertheless, he did say on TV earlier this year that Russia is ready to offer resources to the US if they are going to mine in Russia’s “new territories”.
Learn: What we know about US-Ukraine minerals deal

Economic woes
U.S. economy shrinks 0.3% in first quarter, but rebound expected - here’s why
America is starting to see the impact of Trump’s trade war, as the US Commerce Department reported its economy shrank at a 0.3% annual pace from January through March, the first drop in three years. In the first three months of 2025, US imports surged to the highest levels since the COVID-19 pandemic as businesses sought to stockpile inventory ahead of anticipated tariffs imposed by the Trump administration. However, experts are saying that the surge is likely to reverse in the second quarter, removing a weight on GDP. For that reason, the forecast is that April-June growth will rebound to a 2% gain. Still, many economists say that Trump’s massive import taxes and the erratic way he’s rolled them out will hurt growth in the second half of the year and that recession risks are rising.

China’s ‘involution’ trap is hurting nation’s competitiveness
China continues to grapple with “neijuan”, or involution - a self-defeating cycle of excessive competition in the market that is feared to be damaging the competitiveness of the nation’s economy. According to its state media, neijuan “traps all kinds of entities in a vicious cycle of low-price, low-quality, and ineffective repeated competition, ultimately damaging the overall competitiveness of related industries in China”. Among local governments, that type of self-defeating competition includes misguided efforts to attract businesses through unsustainable policies, such as offering excessive incentives like tax breaks and subsidies, resulting in rising debt and long-term risks. For businesses, “involution” manifests in excessive price wars, a lack of differentiation, and a focus on short-term profits at the expense of long-term innovation, which leads to resource waste, stagnation and lowered overall competitiveness. China’s Premier Li Qiang vowed in March to carry out a comprehensive crackdown on neijuan in an effort to fix the situation.

Grab raises full-year profit forecast as Q1 revenue beats estimates
Grab recently announced that its Q1 sales saw an 18% rise in revenue to USD773 mil, surpassing the average analyst estimate of USD766 mil, a sign that the Southeast Asian ride-hailing and food-delivery market might be a bright spot for a rattled tech industry. The firm reported a net profit of USD24 mil compared to a USD104 mil loss for the same period last year, on the back of higher net finance income and a narrowed operating loss of USD21 mil. Grab also raised its full-year earnings forecast, where the adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) will be as much as USD480 mil in 2025, rather than the previous projection of up to USD470 mil. Grab is trying to prove its cost-cutting measures are working, following the ways of its backer, Uber, in slashing jobs and lowering spending to chase profitability. Grab is also said to be considering a takeover of GoTo, its main regional competitor, at a valuation of more than USD7 bil. View earnings deck here.

Shorts:

1. EU courts says Malta's “golden passport” scheme breaks the law

   The EU’s Court of Justice has ruled that Malta’s “golden passport” scheme is against EU law, as it "amounts to rendering the acquisition of nationality a mere commercial transaction". The scheme allows a person to gain a Maltese passport and the right to live and work in any EU country by paying at least EUR600,000, buying or renting property of a certain value, and donating to charity. Although Malta said that it respects the ruling, the country is keen to keep the scheme as it has generated more than EUR1.4 bil for the country since 2015, helping the government establish a national fund to address the needs of both present and future generations in Malta.

2. Israel wildfires flare near Jerusalem for a second day

   Fanned by high temperatures and strong winds, the fires that broke near the Jerusalem-Tel Aviv highway on Wednesday continued to spread rapidly through wooded areas yesterday, prompting evacuations from at least five communities. European countries Italy and Cyprus have dispatched eight firefighting planes to Israel to support its emergency efforts, with fires continuing to burn in 11 hot spots near Jerusalem, with seven towns still under evacuation. Scenes of the fire here

5. FOR YOUR EYES 📺

1. It ain’t just nasi lemak inflating AF in the past 14 years. Whereas for wages, although it did rise, but not at the same pace as inflation. Interesting thread below by The Futurizts. The official DOSM analysis of the annual consumer price index here.

2. The Edge explains how to grow an EPF account through i-Saraan with a self-contribution of RM2.5k per year (RM208.33 per month) into RM500k by 60. Granted, there are various assumptions, but the key thing is to start early, at 14 years old.

3. What happens to your EPF after you are gone? Set up your nomination.

Have a good weekend - do not get caught up chasing dreams and remember to enjoy life!

peaceeverlasting43

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