☕️ New 'funny' biz uncovered in KLIA

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

400,000 borrowers of Malaysia's National Higher Education Fund Corporation (PTPTN) have never made a single repayment on their student loans. This staggering figure was revealed by Higher Education Minister Zambry Abd Kadir, who stated that the total outstanding debt from these non-paying borrowers has now reached a colossal RM5 bil. The Minister specified that this significant sum involves individuals who completed their studies 10 years ago or more, indicating a long-standing issue with loan recovery from the very beginning of their repayment period.

The share of tasks in online job postings that Artificial Intelligence can already perform or augment has declined by 19% over the past three years, according to economist Zanele Munyikwa at Revelio Labs. Her analysis suggests that this drop primarily occurred because companies are simply hiring fewer people for roles where AI can be applied. Further segmenting occupations, Munyikwa found that since OpenAI released ChatGPT in 2022, there has been a general decline in job openings. However, the downturn in hiring has been notably steeper for "high-exposure" roles—those with many AI-doable tasks—experiencing a 31% decrease, compared to a 25% decline for "low-exposure" roles. This indicates that jobs susceptible to AI automation are disappearing from job boards at a faster rate than those less impacted by AI capabilities.

The US Army has successfully met its annual recruiting goal of 61,000 new active duty soldiers, achieving this milestone a remarkable four months ahead of the end of fiscal year 2025 in September. This accomplishment, for a goal 10% higher than last year's 55,000 recruits, signifies a crucial turning point for the Army, reflecting what they call a "renewed sense of patriotism and purpose among America’s youth." This surge follows several years of intensified recruiting efforts aimed at addressing past shortfalls, including adjustments to rules regarding tattoos, prior medical conditions, and drug use. After falling short of its 2023 goal by about 11,000 recruits, the Army narrowly met its 55,000 target in 2024.

3. IN MALAYSIA 🇲🇾

Malaysiakini once again uncovers ‘funny’ biz in KLIA
This time, it’s “phantom travellers”. In its latest report, Malaysiakini uncovered a mysterious syndicate that helps low-ranking civil servants embark on travels to distant destinations without having their immigration records updated. These civil servants who seem to have obtained a substantial amount of money via less than legal means wish to avoid scrutiny from their boss - civil servants are required to report travel abroad, especially if it involves countries that require visas. Hence, they resorted to paying between a “service fee” of RM1,000 to RM1,500 to pass through the immigration counter without having their passports stamped. One longtime “beneficiary” of this syndicate, only known as “Thanos” has been able to travel abroad and domestically despite only officially earning between RM2,000 to RM2,500. The source was reported as saying that the corruption among civil servants at KLIA was “beyond redemption”.

In another case in the same location, a man from India was detained at KLIA’s Terminal 1 for attempting to smuggle four black-handed gibbons (view here) worth approximately RM30,000. The man who was caught had attempted smuggling the animals inside his luggage. Poor monkey.

Transportation matters

CAAM, Mavcom to become single entity
According to Transport Minister Anthony Loke, the Civil Aviation Authority of Malaysia (CAAM) is set to become an independent,self-funded body, with the eventual goal of taking over the Malaysian Aviation Commission’s (Mavcom) role and become the sole aviation authority by August 1. CAAM is in charge of technical and safety aspects of the industry, whilst Mavcom is responsible for its economic and commercial aspects (where your complaints about certain airlines go to). This will help CAAM remain financially sustainable, in addition to having more decision-making power. CAAM, as a combined entity, is expected to rake in RM400 mil to RM420 mil in 2025, up from RM100 mil to RM110 mil in previous years and over a 10-year period, the government will enjoy cost synergies of RM1.5 bil to RM2 bil. Also, not too long ago there was a report that a former Mavcom head was allegedly paid 4x more than the PM.

ECRL’s unexpected bottleneck - site theft 
The 665 km East Coast Rail Link, which is projected to be completed by December next year (currently 82,45% complete), is facing unexpected setbacks - theft of equipment and communication cables. 1,200 m of signalling cables and 81 outdoor transformers have been reported stolen so far. Although cable theft and vandalism are common problems, the ECRL track relies on custom-made equipment, with delivery taking up to 6 months. Since the start of implementing communication systems on the track, at least 7 locations have experienced theft and could potentially affect project delivery. In the UK, train tracks suffer about GBP20 mil (RM114.4 mil) a year due to cable theft.

Overseas support for Johor-Singapore Special Economic Zone intensifies
During the closing ceremony of the Nikkei Forum held at Iskandar Puteri, Johor, Japanese Ambassador to Malaysia H.E Noriyuki Shikata said that Japan was ready to help Johor ease anticipated traffic congestion from the Johor-Singapore Special Economic Zone’s anticipated rapid economic development. For this purpose, Japan was prepared to utilise its artificial intelligence-driven traffic control systems and digitally optimised public transportation networks.

Japan’s offer seems to be an encouraging sign that the Johor-Singapore Special Economic Zone project is taking off, especially when Singapore’s businesses such as UOB Bank and OCBC Bank, have made big investments. OCBC Bank in particular, has committed over RM11 billion worth of financial support to Johor’s business since the start of 2024, with an extra RM3 billion in financing across the real estate, oil and gas, manufacturing and data centres sectors within the state.

Shorts

1. Police foil country’s first-known cocaine vape distribution syndicate
   The syndicate, which was believed to have been operating since March 2025, was finally caught, with a search of their vehicle revealing almost 5,000 vape cartridges filled with liquid suspected to be cocaine. According to the police, the total street value is estimated to be at RM7.29 million (RM1,470 on average per cartridge). While this syndicate's distribution MO was rather creative, Malaysian police had recorded its biggest drug bust ever in Jan 2025 when they seized RM1.06 billion worth of meth at Port Klang.

2. FashionValet trial set for April 2026

   In case you forgot, FashionValet Sdn Bhd founders Datin Vivy Sofinas (aka Vivy Yusof) and her husband, Datuk Fadzarudin Shah Anuar, are facing criminal breach of trust charges of RM8 million. To recap, the “wife- husband” duo claimed trial for being accused of misappropriating funds entrusted to them by GLICs Khazanah and PNB, when they transferred RM8 million from FashionValet to 30 Maple Sdn Bhd. Shahril Hamdan, one half of the Keluar Sekejap podcast, produced a solo episode on this issue.

3. KL Foodie owner files for IPO
   Foodie Media Berhad, the media group behind 34 lifestyle brands such as KL Foodie, Penang Foodie, Johor Foodie etc. has filed for its IPO (view prospectus here) on the ACE Market of Bursa Malaysia. One of the key shareholders includes Bryan Loo, the founder of Tealive and Bask Bear (who has his own IPO plans). Check out an interesting interview by Doitduit with the company’s co-founders here. WIld margins!

4. AROUND THE WORLD 🌎

Will the Strait of Hormuz be sealed?
The EU’s top diplomat is most concerned about Iran closing the Strait of Hormuz (view here) in retaliation for the US joining Israel in an armed offensive against Iran’s nuclear programme sites. The closure would be “extremely dangerous and not good for anybody”, considering that about 20% of the world’s oil and gas demand flows through the strait. Even now, vessels are speeding through the strait, pausing outside it, or altering their route to avoid it altogether. At least two supertankers have made U-turns, and shipping rates for supertankers, which can carry 2 million barrels of oil, have more than doubled in a week to over USD60,000 a day.

This has led to oil prices reaching a five-month high as uncertainty grows over the supply of crude oil coming from Iran, which is OPEC’s third-largest crude producer. Some analysts believe that, should the Strait of Hormuz really be closed off, the risk premium could surge, pushing Brent oil prices above USD100 per barrel, with Asia particularly exposed to this risk.

The US is not immune either, with fresh uncertainty affecting the outlook for inflation and economic activity, with the immediate effect from the attacks materialising as a spike in energy prices, which would apply pressure on households’ ability to spend, leading to slower GDP growth. In response, US State Secretary Rubio has called on China to prevent Iran from closing the strait, encouraging them to call Iran, since China depends on Iran for oil. Somehow, it does not feel like Rubio’s call is out of concern for China’s economic well-being…

UN Security Council meets as nations respond
The UN Security Council met at the request of Iran to discuss the US strikes on Iran, with Russia, China, and Pakistan calling for a resolution for an immediate and unconditional ceasefire in the Middle East. Iran’s UN ambassador accused Israel and the US of destroying diplomacy, that the US allegations of nuclear weapons are unfounded, and that the nuclear non-proliferation treaty "has been manipulated into a political weapon”. China believes the US attack has damaged Washington’s credibility and warned that the situation could spiral out of control.

Russian President Putin also told the Iranian foreign minister that there was no justification for the US attack, and that Russia would try to help the Iranian people, even as the Kremlin condemned the strikes. The Iranian foreign minister was in Moscow to request Russian aid after the strikes, with the minister carrying a letter from Supreme Leader Ayatollah Ali Khamenei seeking Putin’s backing and for Russia to do more.

Then we have Pakistan, which has condemned Trump for bombing Iran a day after promising to nominate him for a Nobel Peace Prize for ending a four-day conflict with India last month. Interestingly, Australia’s PM has supported the strike on Iran, saying it agreed that Iran cannot be allowed to have a nuclear weapon, but now calls for de-escalation and a return to diplomacy.

How Chinese AI and vapes dodge US customs

US officials claim DeepSeek helps China's military and evaded export controls
The AI firm is alleged to be aiding China’s military and intelligence operations, according to a senior US official, who added that DeepSeek is looking to use Southeast Asian shell companies to access high-end semiconductors that cannot be shipped to China under US rules. The link between DeepSeek and the Chinese government has not been previously reported and comes amid a large-scale US-China trade war. DeepSeek is also alleged of sharing user information and statistics with Beijing’s surveillance apparatus, including data from American users. DeepSeek was also reportedly referenced over 150 times in procurement records for China’s People’s Liberation Army.

Illegal Chinese vapes enter US through mislabeling and one small customs brokerage
A single customs brokerage, over the course of four years, became a go-to broker for the Chinese vape industry in the US, helping to import millions of unauthorised Chinese-made vapes last year alone. This one firm handled 60% of all shipments of vapes and vape parts from China to the US, with a lot of them having Food and Drug Administration authorisation. Unauthorised vapes often arrive in the US disguised as other items like shoes and toys, before going out to a group of middlemen based on US soil. These include some customs brokers and distributors that sometimes take steps to avoid detection.
Btw, an interesting long-read by Bloomberg on the Chinese billionaire behind the vape industry and also a funny fact that the world’s largest producer of cigarettes, China National Tobacco Corp., is also an arm of the government body that regulates tobacco and e-cigarettes in China. 

Shorts

1. Suicide bomber kills 25 in Syrian church attack

   At least 25 were killed and 63 others wounded when a man opened fire with a weapon at the Greek Orthodox Church of the Prophet Elias in Damascus, Syria. The attack happened during a Sunday evening service, with the man detonating an explosive vest after opening fire. Authorities believe the attacker is affiliated with the Islamic State jihadist group, but the group has made no immediate claim. This marks the first such attack since Islamist-led rebel forces overthrew the former Syrian leader in December, ending a 13-year-long civil war.

2. Palestine Action group now on par with Hamas, al-Qaeda

   The UK government has made it a criminal offence to belong to the pro-Palestinian campaign group Palestine Action under anti-terrorism laws, placing the group on par with terrorist groups like al-Qaeda, ISIS, and Hamas. Anyone caught promoting the group, arranging meetings, or carrying its logo in public could face up to 14 years in jail. This follows the escapades of two of the group’s members, who broke into a Royal Air Force base then damaged and vandalised two aircraft, making this the group’s most high-profile move to date. Police allege the group, which regularly targets Israel-linked firms in Britain, have caused millions of pounds of criminal damage.

5. FOR YOUR EYES 📺

1. Check out the first person to ever take a Tesla Robotaxi ride.

2. Salman Ahmed, aka the Mr Bean of Bangladesh. Top-tier impersonation, even with the voice. Check out his IG account here.

jrbean6510

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