☕️ Negeri Sembilan: From royal crisis to political crisis now

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

USD49.2 bil (RM196.4 bil) – Wall Street executives saw their bonuses jump 9%, reaching a new record, according to estimates from New York State Comptroller Tom DiNapoli. The average bonus climbed 6% to USD246,900 as dealmakers, traders, and wealth managers were buoyed by strong trading, underwriting, and management fees, despite geopolitical uncertainty and markets affected by tariffs. The securities industry also saw profits soar more than 30% to USD65.1 bil.

3.75x ROI – Singapore’s sovereign wealth fund invested SGD241.5 mil (RM750 mil) in Sunway Healthcare for a 16% stake in 2021. Following Sunway Healthcare’s listing on Bursa Malaysia, which was also Malaysia’s biggest IPO in a decade, GIC stands to earn around 3.75 times its investment, and that is excluding dividends. The sovereign wealth fund recorded a real rate of return of 3.8% a year for the 20 years to Mar 31, 2025. Its other investments include Asia Healthcare Holdings from India, Metro Pacific Healthcare in the Philippines, Nhi Dong 315 and Vinmec in Vietnam, and Devoted Healthcare in the US.
Learn: What is real rate of return?

Sixth most valuable Bursa-listed company – Press Metal, the local aluminium producer, saw its shares rise by as much as 41 sen or 5.08% to hit record high before closing at RM8.42 on Apr 24. At its closing price, the firm was valued at RM69.38 bil, up RM9.97 bil from its market capitalisation on Mar 2, the first trading day after the US and Israel attacked Iran. So far, the stock has surged 19% this year, supported by stronger aluminium prices and less competition, as the closure of the Strait of Hormuz has forced major Gulf smelters to scale back production. Recently, Press Metal’s owners, the Koon siblings, claimed second place on Forbes’ 2026 Malaysia’s 50 Richest list.

3. IN MALAYSIA 🇲🇾

Negeri Sembilan crisis escalates
MB holds on as alliances shift: Aminuddin Harun is staying on as Negeri Sembilan Menteri Besar despite losing majority support, saying he will continue running a minority government until a clear decision is made. His position comes as the state’s political landscape grows more tense following a dispute involving Tuanku Muhriz Tuanku Munawir and the wider royal institution. While the administration continues its duties, uncertainty remains over the state assembly, which has been adjourned without a new date, leaving governance in limbo.

UMNO’s withdrawal: The situation escalated after all 14 Umno assemblymen withdrew their support for Aminuddin, citing loss of confidence amid the ongoing royal dispute. The move immediately shifted the balance of power in the 36-seat assembly and set off negotiations between coalitions over who could command a majority.

BN claims simple majority with PN backing: From there, BN claimed it had secured enough numbers to form a new state government after PN’s five assemblymen signalled willingness to cooperate. That gives BN and PN a combined 19 seats, just above the simple majority threshold. BN said it welcomed PN’s readiness to work together in what it described as an extraordinary situation, stressing the need for a stable administration to be formed quickly. With this alignment, the PH-led government is now left with 17 seats, below the majority line, increasing pressure on the current administration.

Zahid speaks up: Barisan Nasional chairman Ahmad Zahid Hamidi later said that the prospect of an early general election will be discussed within Umno. He said the 14 assemblymen had acted on their own and that the party leadership was only informed shortly before the decision. He added that Umno will respect the decision, with further discussions to be held at the party’s political bureau and Supreme Council, and that he will meet PM Anwar soon on the matter.

PN–Umno alliance Incoming?: Earlier, Perikatan Nasional expressed openness to working with Umno in forming a new state government, arguing that stability must take priority as the crisis continues. Discussions around a realignment are now gaining traction, while PH is weighing its options, including appointing a new leader or calling for a snap election. Party leaders said the decision was driven by loss of confidence and concerns over governance and stability amid the ongoing royal dispute. That move ultimately set off a rapid reshaping of alliances, pushing Negeri Sembilan into a full-blown political crisis that now hinges on how coalitions reposition in the coming days.

“No Comment” on Najib's move
Former PM Najib Razak’s legal situation took another turn, after reports surfaced that he had withdrawn his bid for house arrest and was linked to a possible fresh pardon bid. However, his lawyer Shafee Abdullah refused to comment on the matter. Speaking after proceedings at the Court of Appeal in Putrajaya, he repeatedly said there were matters beyond his knowledge and stressed that he could not comment. He added that the only accurate statement was simply “I cannot comment”, pushing back on repeated questions from the media.

The silence follows earlier reports that Najib, who is serving his sentence linked to the SRC International case, had withdrawn his appeal for an addendum order that would have allowed him to serve his sentence under house arrest. There were also claims, based on unnamed sources, that a new pardon application had been filed. Shafee had already dismissed those suggestions previously and again questioned why the issue was being revisited. He said earlier statements already covered the matter and offered no further details, leaving the situation unresolved and open to speculation.

Tealive owner puts IPO on hold
Tealive owner Loob Holding Sdn Bhd has shelved its long-planned IPO after years of delays, choosing instead to focus on business expansion. Its CEO Bryan Loo confirmed that the group has paused its listing plans following a strategic review, with attention now shifting to fast-moving consumer goods and upstream development over the next 18 months. The group had aimed to go public following its June 2025 submission but has opted for more time to strengthen its business.

Loob is best known for operating the Tealive chain, one of the largest beverage brands in the region, along with Bask Bear Coffee, which focuses on coffee and toasties. Performance-wise, revenue for FY2025 fell to RM489.99 mil from RM591.24 mil the year before, while net profit dropped more than 58% to RM21.46 mil. Margins also narrowed to 4.4%, reflecting higher costs and tougher competition. Despite this, dividends remained high at RM60.56 mil. Backed by private equity firm Creador, Loob continues to operate over 900 Tealive outlets and 120 Bask Bear stores, with future listing plans now dependent on how its next phase of growth develops.

Sabah backs MyKAS for stateless workers
Masiung Banah, the Kuamut assemblyman and chairman of the Gabungan Rakyat Sabah Backbenchers Club, has voiced support for the MyKAS initiative for stateless and undocumented individuals in Sabah. Speaking during the state legislative assembly sitting in Kota Kinabalu, he said the policy would help provide legal documentation so this group can work legally and contribute to the economy instead of remaining outside the system. He said many sectors, particularly plantations and manufacturing, continue to face labour shortages, while undocumented individuals often already have the skills required. With proper documentation, they would be able to work legally, contribute to household incomes and be included in the formal tax system. He also noted that improved economic conditions could help reduce crime linked to financial hardship.

According to the National Registration Department, MyKAS is issued to individuals born in Malaysia whose citizenship status cannot be determined, offering identification without granting full citizenship rights. Holders must still meet strict requirements before progressing to permanent residency or citizenship, with their status reviewed every five years under constitutional guidelines.

4. AROUND THE WORLD 🌎

All about AI
China blocks Meta's USD2 bil acquisition of AI startup Manus
China’s National Development and Reform Commission ordered the cancellation of Meta Platforms’ USD2 bil (RM7.91 bil) acquisition of agentic AI start-up Manus. This move unwinds a controversial deal that has drawn flak for the leakage of technology to the US.

The decision is likely to be a damper on China’s burgeoning AI sector and comes mere weeks before a high-profile summit between US President Donald Trump and China’s Xi Jinping. The deal, which was largely completed, was initially lauded as a template for start-ups with global aspirations but has since been criticised for the loss of valuable technology to a geopolitical rival. Meta now faces the challenge of reversing the deal, which will be difficult given that Manus employees have joined Meta, capital has been transferred, and the start-up’s executives have already moved into Meta's Singapore offices. Exiting investors, including Tencent, ZhenFund and Hongshan, have also received their proceeds.

ChatGPT smartphone coming your way
Qualcomm and MediaTek will be working with OpenAI to develop smartphone processors, and the news has seen Qualcomm’s shares up 13% in premarket trading. The two firms are also co-development partners on an AI-first smartphone that OpenAI is planning, with mass production likely in 2028. China’s Luxshare, an Apple supplier, has been tapped as the exclusive system design and manufacturing partner for the device. This follows OpenAI acquiring former Apple designer Jony Ive’s start-up io Products for USD6.5 bil (RM25.69 bil), with Ive leading the AI giant’s efforts in exploring consumer AI devices.

South Africa withdraws AI policy over AI-hallucinated sources
According to Minister of Communications and Digital Technologies Solly Malatsi, the first draft of the national AI policy was revealed to have fictitious sources in its reference list. He said the most plausible explanation is that the citations were included without proper verification, which has compromised the integrity and credibility of the draft policy. The policy was unveiled this month for public comment before finalisation, and was meant to position South Africa as a continental leader in AI innovation. It contained plans to establish new institutions, including a National AI Commission, an AI Ethics Board, and an AI Regulatory Authority. Malatsi said there would be consequences for those responsible for drafting the policy.

Sri Lankan crime
Monks arrested for carrying 110kg of cannabis
Officials discovered 110kg of cannabis concealed in the luggage of 22 monks, leading to their arrest at a Sri Lankan airport in Colombo. Customs officials said each monk was found with around 5kg of the potent Kush variant of the drug hidden within false walls in their luggage. The monks, who were mainly students, were returning from Thailand after being treated to an all-expenses-paid four-day holiday by an unnamed sponsor when they were detained. A 23rd monk, believed to be the trip organiser, has since been arrested in Colombo as well. This monk, who did not join the trip, had told the other monks that the “parcels are a donation” and that a van would collect the packages. This is thought to be the first time a group of monks has been arrested on suspicion of smuggling drugs into the country through the airport.

Hackers breach finance ministry, steal USD2.5 mil
Sri Lankan authorities have launched an investigation after hackers breached the finance ministry’s computer systems and stole USD2.5 mil (RM9.88 mil). The funds were part of a bilateral debt repayment to Australia, with settlement due in Sept 2025. Authorities believe the diversion took place sometime in Jan, though details are only now emerging. The Finance Ministry Secretary told media that Sri Lanka had made the payments, but the criminals had intervened and diverted it to other bank accounts. Four senior officers at the Public Debt Management Office have been suspended. Investigators believe the hackers tampered with email-based payment instructions in the sovereign debt payment process. Sri Lankan officials only realised the amount was missing after the Australian creditor complained that the debt payment had not been received.

Netanyahu's rivals to join forces in upcoming election
Two former Israeli prime ministers, right-wing Naftali Bennett and centrist Yair Lapid, have announced the merger of their parties ahead of elections expected later this year. The alliance is an attempt to oust current Israeli PM Benjamin Netanyahu’s coalition government. The new party will be called “Together” and will be led by Bennett.

The duo has joined forces before, when they ended Netanyahu’s successive 12-year tenure in a 2021 election, though they could only form a coalition government with a thin majority that was deeply divided over major issues. That coalition government survived barely 18 months. However, Netanyahu has lost voter confidence due to his actions that have plunged the Middle East into turmoil and seen Israel fighting on multiple fronts, leading to predictions that he will lose the next election, which is due by the end of Oct. By the way, Bennett said he will not be ceding any land to “enemies” if he wins. This refers to the Palestinian goal of establishing an independent state in territories occupied by Israel.

Kenyan runner Sabastian Sawe first to run sub-two-hour competitive marathon
The 31-year-old crossed the finish line at the London Marathon in one hour 59 minutes 30 seconds, more than a minute faster than the previous record of two hours and 35 seconds, set in 2023 by the late Kelvin Kiptum. While Eliud Kipchoge became the first man to run a marathon in under two hours in 2019, his time was not record-eligible as it was held under controlled conditions. Sabastian Sawe crossed the halfway point already on world record pace and was able to speed up over the second half of the marathon to run even faster than Kipchoge’s time. The runner-up of the race, debutant Yomif Kejelcha, became the second man to run a marathon under two hours in race conditions, finishing in one hour 59 minutes 41 seconds.

Another winner of the race is Adidas, after Sawe said that new Adidas shoes helped him win the race. He ran while wearing the brand’s Adizero Adios Pro Evo 3 trainers, which Adidas said is 30% lighter than its predecessors. Sawe raised his USD500 (RM1,976.25) shoes aloft, which had “WR” and “sub-2” written on them in black marker, after the race, praising them for their lightness and comfort. Check out the shoes here.

5. FOR YOUR EYES 📺

Tales of the trade

1. The USD3 bil F&B giant from Jollibee.

2. Humble beginnings of the RM130 mil Malaysian shoe brand.

3. Another Malaysian corporate history by Doitduit. TIL: Sunway was offered casino license twice, and twice it was turned down by founder Jeffrey Cheah.