☕️ PAS splits with Bersatu; Zahid rules out UMNO-PAS alliance

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

283% – Average monthly household expenditure on health-related insurance in Malaysia rose by that much in just two years. According to the Department of Statistics, households went from paying an average of RM24.13 in 2022 to RM92.46 in 2024, reflecting the extent of rising healthcare costs in the country. Economists say the spike in average spending is due to several factors besides rising healthcare costs, such as higher premiums and greater health awareness among Malaysians.

16% – The 2026 Global Medical Trend Rates Report by Aon showed that Malaysia’s medical inflation rate is projected to reach 16% this year. Among the six ASEAN countries in the report, Malaysia ranks second highest in terms of medical inflation, trailing only Indonesia, which is projected to see a rate of 16.9%. The 16% figure also marks Malaysia’s highest rate since 2021 and breaks a three-year plateau where medical inflation held steady at 15%.

More than 340,000 – That’s the number of Medical and Health Insurance/Takaful (MHIT) policies that were cancelled or surrendered by policyholders between Jan 2024 and Jun 2025, after coverage was repriced upwards to reflect medical inflation, making premiums unaffordable for those policyholders. The number accounts for about 5.2% of MHIT coverage, but this should also be viewed alongside other information, such as how only about 20% of the population has medical insurance coverage. Another notable figure is that about 13.7%, or 4.4 mil, of Malaysia’s population was aged 60 and above in 2025. With Malaysia expected to add about one mil elderly people every five years, it becomes concerning if a large number of elderly people are unable to afford medical insurance, not only for their quality of life, but also for the strain on public healthcare.

3. IN MALAYSIA 🇲🇾

Malaysia’s unpaid care work valued at RM379 bil annually
Looking after children, elderly parents or family members at home may not come with a paycheck, but the government says its economic value is too big to ignore. Women, Family and Community Development Minister Nancy Shukri said unpaid care and domestic work in Malaysia is estimated to be worth RM379 bil a year, yet around 3.2 mil Malaysians, mostly women, remain unable to fully participate in the workforce because of caregiving responsibilities.

The expansion of childcare, eldercare and support services is no longer just a social issue but an economic one, noting better care infrastructure could potentially contribute RM77 bil annually, or about 5% of GDP. The government is also working on national care standards for older persons and people with disabilities, which are expected to be introduced in Oct to improve quality, safety and consistency across care services.

Politics
PAS breaks up with Bersatu
The cracks within Perikatan Nasional appear to have widened, with PAS announcing that it is ending its political cooperation with Bersatu. The decision was made following a special meeting of the party’s central working committee, with PAS now set to reassess the future of its relationship with Bersatu based on current political developments.

While PAS says it remains committed to the broader goal of Muslim unity and is open to exploring electoral cooperation in future elections, the announcement marks a significant shift after months of tension between the two parties. The relationship has been strained since the Perlis Menteri Besar reshuffle late last year, with disagreements later spilling into leadership changes within Perikatan Nasional and growing public criticism between both camps.

UMNO says no more to PAS
Looks like Muafakat Nasional is staying firmly in the history books. Umno president Ahmad Zahid Hamidi has dismissed any possibility of reviving the Umno-PAS alliance, saying the chapter is closed for good, whether it is “MN 1.0 or 2.0”. Muafakat Nasional has since been registered as an NGO, and Zahid stressed that Umno has no intention of reviving the political cooperation.

On Negeri Sembilan, Zahid also confirmed that Barisan Nasional will contest all 36 state seats on its own in the upcoming election after Pakatan Harapan announced plans to field candidates in every constituency.

RON95 Budi95 quota stays at 200 litres* (t&c apply)
The 200-litre monthly fuel quota under the Budi Madani RON95 programme is staying put for now, with the government indicating that a review would only be considered if global oil prices surge to between USD200 (RM812.36) and USD300 a barrel. 

The quota was reduced from 300 litres to 200 litres in Apr as subsidy costs climbed amid disruptions to global oil supplies linked to the US-Iran conflict. Despite ongoing volatility in energy markets, the government will continue measures to cushion the impact on consumers and secure fuel supplies ahead of time. Eligible recipients under the Budi95 programme can currently purchase subsidised RON95 petrol at RM1.99 per litre.

Sime Darby Property launches RM1.25 bil fund for data centres and industrial assets
Sime Darby Property is making a bigger push into Malaysia’s fast-growing data centre and industrial sector with the launch of a new fund that could invest up to RM1.25 bil in projects within its own townships. The fund, called New Economy Venture, has already secured backing from EPF, LTAT and Great Eastern, with Sime Darby Property itself also committing capital. 

The move is part of the company’s strategy to generate more recurring income from high-demand assets such as data centres and warehouses, rather than relying solely on property sales. Two initial projects have already been lined up in the City of Elmina and Elmina Business Park, with construction expected to be completed in the second half of 2027. Sime Darby Property's investment arm currently manages assets worth RM4.4 bil.

Tanco extends slide as nearly RM6 bil in market value is wiped out
It’s been a rough few days for Tanco Holdings. The property developer’s shares plunged another 30%, extending a four-day sell-off that has wiped out nearly RM6 bil in market value since June 4. The stock closed at 80 sen after touching its daily lower limit and is now back around levels last seen in Sept 2025. 

The sharp drop also triggered an automatic suspension of intraday short selling. Amid the slide, executive director Edwin Tan Kium Suan purchased 7.64 mil shares at the day’s lowest price. Tanco stated there are ongoing discussions and negotiations involving the company, but nothing concrete enough to announce yet. The dramatic fall comes after a strong run earlier this year, when the stock surged more than 50% by the end of May despite questions from some market watchers about its rapid rise.

Shorts:

1. Police warnings on fake BTS ticket scams
   Ain’t just fake love - it’s fake tickets now.. Bukit Aman is warning fans to be cautious after spotting a rise in fake ticket offers online, especially for coveted categories like VIP, Soundcheck and Priority Access. Many of these deals appear before official sales even begin, often backed by claims of insider access, special quotas or convincing-looking booking screenshots. The catch? Once the money is transferred, the tickets never arrive and the seller disappears. So far, 41 cases involving losses of nearly RM96,000 have been reported (average RM2.34k per case!). For ARMYs hoping to secure a seat, this is probably one of those times where sticking to official ticketing channels is the safest move.

2. Young Malaysian pair claims another top 10 scalp at Australian Open
   Malaysia’s rising women’s doubles pair, Low Zi Yu and Noraqilah Maisarah Ramdan, have pulled off another impressive upset at the Australian Open, taking down Taiwan’s world number eight pair Hsieh Pei Shan-Hung En Tzu in a hard-fought three-game match. The win marks their second victory over a world top 10 pair this year, adding to their growing reputation as one of the country’s most exciting young badminton partnerships. It also served as sweet revenge after the Taiwanese duo knocked them out of the Badminton Asia Championships earlier this year. At just 15 and 19 years old respectively, Zi Yu and Noraqilah continue to punch above their ranking and are quickly becoming a pair to watch on the international stage.

3. Government mulls stricter action on graphic accident videos online
   That graphic accident video that keeps popping up on your feed? The government may soon want social media platforms to treat that as a form of online harm. The proposal comes after the recent Kedah crash that claimed six lives, with dashcam footage of the incident spreading widely across social media. Beyond concerns about upsetting viewers, there are also questions about the impact on victims’ families and whether such content could interfere with investigations. One challenge, however, is that platforms do not always catch harmful content written in local languages, making moderation trickier.

4. AROUND THE WORLD 🌎

IPO Talk
OpenAI opens its books ahead of IPO
It’s one blockbuster after another. OpenAI has confidentially filed for an IPO with the US Securities and Exchange Commission. Goldman Sachs and Morgan Stanley are helping OpenAI to list, possibly in the autumn/fall period (Oct–Dec). However, OpenAI has not confirmed exactly when. Just last week, Anthropic also did the same thing, and was valued at about USD965 bil (RM3.92 tril) after it closed its latest funding round.

And yes, the elephant in the room. Elon Musk is also preparing to list SpaceX at a valuation of USD1.75 tril with the first trading day possibly on June 12. What do they all have in common? They are all heavily involved with the AI boom. OpenAI’s ChatGPT is the most recognisable AI model out there.

The big question for OpenAI is how its financials are looking. Previously, the company was reportedly missing internal revenue and user targets. And of course, investors want to know how much of a loss OpenAI has sustained until now.

SpaceX, from its prospectus, has lost USD41 bil in total and is expected to lose even more as it seeks to increase investments into AI. OpenAI’s books are probably going to be heavily scrutinised once they are released for public viewing.

Perplexity AI still wants to list in 2028
Perplexity AI is sticking to its plan to go public in 2028 despite potential moves by competitors, such as OpenAI and Anthropic, to list this year. Investors are wondering whether Perplexity could change its mind depending on the interest in these two companies. SpaceX listing this week would definitely give an indication to OpenAI and Anthropic on investor interest.

You’re on the list! US accuses Baba, BYD and Baidu
In the Pentagon’s latest 1260H list, the US has accused Alibaba, BYD and Baidu of ‘supporting China’s military’. All three companies opposed this designation and would seek all means to remove themselves from the list.

While the list doesn’t really have immediate legal repercussions, it does have an impact on investor sentiment. The 1260H is used as a warning to US investors and is typically a prelude to trade restrictions.

The US uses the list to restrict companies’ ability to contract with the US military or receive research funding. In Feb, these three companies were included but removed shortly after.

Starbucks targets the afternoon crowd
Starbucks is trying to bring in the afternoon crowd by … blending its Refresher drinks? It is expanding its Refresher line, which is estimated to be worth USD2 bil (RM8.12 bil) as it seeks to turn the company around after slumping for the past few years. New CEO Brian Niccol is trying to catch on to Gen-Z and millennial trends on social media by introducing new beverages and reverting to Starbucks’ traditional values that brought it so much success.

The Refresher is iced juice and tea drinks mixed with fruits and is highly customisable. As the summer season approaches, it hopes to capitalise on the afternoon crowds that are increasingly driven by Instagram and TikTok trends.

First-ever elixir of life?
More than 2,000 years ago, Emperor Shih Huang Ti ordered a nationwide hunt for the elixir of life. He did not succeed. If he were alive today, he would have been thrilled to find that Boston-based biotech startup Life Biosciences has injected the world’s first-ever reverse-ageing drug into a human.

Here’s how it works. It activates three genes that ‘partially reprogramme’ old cells, prompting them to behave as if they were younger. This is done to rejuvenate old organs. In the case of glaucoma, which can cause blindness, it could activate proteins to enable regeneration of the optic nerves that connect the eye to the brain. If it is successful, it could change how the medical industry treats diseases.

Sam Bankman-Fried banking on Trump pardon
Sam Bankman-Fried is betting on an unlikely move - trying to get a Trump pardon. He is currently in jail for fraud in his cryptocurrency company, FTX, and is serving 25 years behind bars. He has submitted an application for a pardon to the Department of Justice. To be clear, he’s seeking a “pardon after completion of sentence”, meaning he would be forgiven after he serves his jail sentence, instead of a commutation, which is a shortening of a criminal sentence.

FTX collapsed in 2022, as Sam was using customer deposits as though they were his own funds. Earlier in the year, Trump was actually asked whether he would pardon Sam. He just said no.

Iran fans' World Cup ticket allocation revoked
Geopolitics extends into sports. Iran’s allocation of fan tickets for the World Cup was revoked days before the tournament. The World Cup is being held in the US, Canada and Mexico. Iran is accusing the US of denying visas to key members of the football team’s staff. The Iranian football team also relocated its training camp to Mexico from Tucson, Arizona, claiming the US was unwilling to host them.

Iran’s football federation, according to FIFA regulations, was entitled to receive 8% of tickets for their matches to distribute to supporters. The US said that anyone with links to the Islamic Revolutionary Guard Corps (IRGC) would face entry restrictions.

5. FOR YOUR EYES 📺

1. Crazy Rich Asians. Inside the USD30 mil wedding of a Chinese billionaire casino heir and supermodel. The first wedding to be held in 1,000 years at the historic Mont Saint Michael Abbey in the Normandy region of France.

2. Buying a home soon? How about changing your mind and not buying from them instead?

3. Which brands you thought came from another country?