☕️ PM Anwar: Rent-seeking, sub-contracting, interference in procurement process to be criminalised

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

PM Anwar announced recently that the federal government’s debt is still within legal limits, with the fiscal deficit being narrowed. The federal government is also reducing its reliance on new borrowings. As of the end of June, Malaysia’s statutory debt stood at 62.7% of gross domestic product (GDP), below the legislated ceiling of 65%. Offshore borrowings totalled RM22.8 bil, well below the RM35 bil limit set by the External Loans Act 1963. Malaysian Treasury Bills are comfortably below limits at RM2 bil. However, PM Anwar also warned that the nation’s overall debt level will continue to rise to 64.6% of GDP, or RM1.2 tril. He stressed that this debt increase is primarily to finance development expenditure for long-term national benefit, not operating expenses. The government is targeting a fiscal deficit of 3.8% this year.

A total of RM14.8 bil had been withdrawn from EPF’s Flexible Account (Account 3), just over a year after its launch in May 2024. According to the Ministry of Finance, withdrawals were made by 4.6 mil EPF members, about 35.1% of the 13.2 mil members under the age of 55. The total remaining balance in the account reportedly stands at RM10.2 bil. Account 3 was meant to provide more flexible access to EPF savings for short-term financial needs. The government is still against any withdrawals from Account 1, meant for retirement use, but remains cognisant of the financial challenges faced by the public.
Word of the day: Cognisant – understanding or realising something.

Law and Institutional Reform Minister Azalina Othman Said revealed that civil servants made up the largest group of individuals arrested for accepting bribes in the past decade, while members of the public accounted for the most arrests for giving bribes. In a written parliamentary reply, she said that the MACC recorded 4,896 arrests for accepting bribes and 1,689 for giving bribes between 2015 and June 2025. Public servants topped the list with 2,965 cases, followed by the private sector at 1,101, members of the public at 680, GLC individuals at 119, and politicians at 31. For giving bribes, members of the public accounted for 1,061 cases, followed by the private sector at 511, GLCs at 64, public servants at 47, and politicians at 6.
View pie chart: Bribe giving vs bribe taking

Together with CapBay

Boost your duit, support Malaysian biz. All in a day’s work.
Looking to grow your wealth and help local businesses? CapBay’s peer-to-peer (P2P) investment platform let you do both — with net returns of 8.1% p.a. (after fees) and a super low default rate of just 0.6%. For context, the industry average is 2–3%.

Start with just RM10,000
Build a short-term portfolio with investment notes that mature in 3–6 months. CapBay’s Auto Invest spreads your money across 20+ industries, so you’re not putting all your telur in one basket. Oh, and Shariah-compliant options are available too.

Not like stocks
Unlike the stock market rollercoaster, P2P returns are tied to real SMEs and their repayment ability — not Elon’s tweets. CapBay uses AI-driven credit scoring to handpick reliable businesses and safeguard your investment.

Bonus round
This Merdeka month, get RM68 cashback for every RM10,000 you invest — plus a shot at winning goodies like a MacBook, Apple Watch, and more.

Learn more here and sign up here with code: MERDEKA68

3. IN MALAYSIA 🇲🇾

Biz
PNB’s RM6 bil sukuk boosts Merdeka 118 Precinct
Home to the world’s second-tallest tower, the Merdeka 118 precinct is getting fresh financial backing as PNB Merdeka Ventures Sdn Bhd rolls out a sukuk programme of up to RM6 bil. The company, a unit of PNB, will channel the funds towards refinancing existing sukuk and driving the next stage of the project’s development. The landmark already counts a 70% occupancy rate for its office space and has welcomed the Park Hyatt Kuala Lumpur, while its seven-storey mall is off to a strong start with around 70% of space committed ahead of its opening.

IGB plots Mid Valley-sized landmark in Johor Bahru
IGB Bhd is teaming up with Johor state-linked Southkey City Sdn Bhd (SCSB) to acquire two leasehold parcels next to Mid Valley Southkey in Johor Bahru for RM214.97 mil, with plans for a mixed-use project of retail, hospitality and commercial spaces under a new joint-venture, Enrich Horizon Sdn Bhd (70% of IGB, 30% of SCSB). Valued at RM250 per sq ft, the land has 75 years left on its lease, expiring in 2100. IGB will fund its RM173.1 mil share via cash or borrowings, while SCSB will cover its RM74.2 mil portion from land sale proceeds. The partners aim to leverage the Johor-Singapore Special Economic Zone and RTS Link due in 2026, with the deal pending approval from the Ministry of Economy and expected to complete in the first half of 2026, followed by construction financed through a mix of internal funds and external borrowings.

Scandal Watch
Top DBKL officer nabbed in 11-year bribery probe
A high-ranking DBKL officer, among the city council’s ‘Top 5’ management, has been arrested by the MACC in connection with an alleged bribery scheme dating back 11 years. The officer, in his 50s and holding a Jusa B grade post, was detained at his office in KL, following the earlier arrests of a company owner and a woman in her 40s who were picked up while giving their statements at MACC offices in Putrajaya and KL. Investigators believe the company owner had been paying bribes to the officer since 2014 in exchange for securing IT-related projects with the local authority. The crackdown also shows MACC seized RM150,000 in cash, four mobile devices, 2 luxury cars, designer handbags and shoes, while 19 bank accounts belonging to the suspects and their companies, worth over RM7 mil were frozen.

MUDA lodges police report against MACC Chief
A fresh storm has erupted over MACC after Muda lodged a police report against its chief, Azam Baki, for allegedly ignoring claims that a Sabah whistleblower was threatened into silence. Acting president Amira Aisya Abdul Aziz, who filed the report at Dang Wangi police headquarters said it was “a betrayal of the MACC institution” that Azam failed to act after Albert Tei revealed he had been warned by senior MACC officers in Oct 2024 not to expose illegal mining in Sabah. Joined by Lawyers for Liberty director Zaid, and Amira urged Malaysians to demand accountability, while Tei’s lawyer, Mahajoth Singh, said his client would only name the officer if given whistleblower protection. Despite recordings and evidence, MACC has dragged its feet, while Zaid questions the lack of a transparent probe and Mahajoth calling it a clear failure of duty under the MACC Act.

Tremors shake Segamat again, no damages reported
Morning commuters in Segamat and parts of southern Pahang must have been rattled when a mild 3.2-magnitude earthquake struck Johor at 8.59am. The quake struck 18km south of Segamat at a depth of 10km. No damage or casualties were reported, though authorities remain on alert. Residents who felt the tremors were encouraged to share their experience through an online MetMalaysia questionnaire to aid investigations (visit here). The incident follows a stronger 4.1-magnitude quake in Segamat on Aug 24 and a subsequent 2.8-magnitude tremor in Yong Peng that same morning, which is believed to be linked to reactivated ancient fault lines.

Anwar tables bill to clean up Government procurement
Determined to put an end to shady dealings in Government tenders, PM Anwar Ibrahim tabled the Government Procurement Bill for its second reading in the Parliament on Aug 25, pledging firm action against rent-seeking, subcontracting and interference in procurement exercises. Anwar, who is also Finance Minister, warned that offenders, whether ministers, public servants, retirees or contractors will face multimillion-ringgit fines or jail time. Anyone caught transferring or subcontracting awarded contracts risks a penalty of at least three times the contract value or RM1 mil, whichever is higher, and five years’ imprisonment. Failure to declare personal or beneficial ownership interests may attract fines of up to RM250,000 or five years in jail too, while disrupting the procurement process could result in penalties of RM500,000 or a similar prison term.

4. AROUND THE WORLD 🌎

Singaporean wins
JD.Com to lead USD1 bil REIT launch in Singapore
E-commerce giant JD.Com, through its property investment arm, plans to launch a Singapore-based real estate investment trust (REIT) with assets valued at over USD1 bil (RM4.23 bil). Sources also reported that the REIT will be set up with Swiss investment firm Partners Group and EZA Hill Property. The REIT could be listed on the Singapore Exchange as soon as next year and would be one of the largest new entrants in Singapore’s REIT space in over a year. This move signals growing confidence in the REIT sector, with the three partners looking to scale up the REIT across Southeast Asia, targeting acquisitions of industrial and logistics assets. JD.Com reported a revenue of USD49.8 bil for the second quarter of 2025, with a net income of USD1 bil.

Singapore's Sea reclaims title as SEA's most valuable listed firm
The title reclamation came on the back of a 300% comeback rally powered by Sea’s e-commerce arm, Shopee. Sea ended the day’s trading with a market capitalisation of USD111 bil (RM470.08 bil), with DBS bank closing hours later with a valuation of USD110.3 bil. Shares of Sea have more than quadrupled since the start of 2024, with the firm showing it is fending off rivals such as TikTok and Lazada, as well as against newcomers like Temu. The firm reported a quarterly revenue of USD5.3 bil for 2Q2025, with an operating income of USD487.7 mil (view earnings here).
Fun fact: Sea owns 49.99% of the recently launched digital bank, Ryt Bank, with the remaining owned by YTL Power International Bhd and a member of both the Selangor and Perlis royal households.

Fresh from China
Chinese chipmakers look to triple national output of AI chips
A rush to remove dependence on chipmaker Nvidia has led to China’s chipmakers looking to triple the country’s output of AI chips in 2026. Huawei aims to begin production at a plant dedicated to making AI chips by the end of the year, with two more facilities set to launch in 2026. While the plants are designed to specifically support Huawei, their ownership remains unclear. The combined output of the three potential plants could surpass the current production capacity of Semiconductor Manufacturing International Corporation (SMIC), which has also reported plans to double manufacturing capacity in 2026.

As an aside, the US has announced it is not looking to gain a stake in Nvidia, with US Treasury Secretary Scott Bessent saying he doesn’t think Nvidia needs financial support. However, Bessent did hint that the administration may take stakes in other industries.

Extreme rain causes USD2.2 bil in road damage in China 
China’s public purse takes another hit as extreme rainfall across parts of China caused over USD2.2 bil (RM9.32 bil) in road damage. The estimate covers damage to roads since the start of flood season, covering over two-thirds of China’s administrative divisions. As it stands, China’s Ministry of Emergency Management revealed that, in Jul alone, disasters have cost the government RMB52.2 bil (RM30.92 bil) in direct economic losses. China’s heavily indebted local governments are in ill shape to absorb climate-related damages, considering the trillions of dollars in liabilities they are already grappling with.

Private zoo, run by son of Asia's richest man, faces inquiry
Vantara Zoo is currently under investigation for allegations that animals were unlawfully acquired and mistreated. The inquiry will also examine possible violations of wildlife laws, as well as allegations of financial irregularities. While there was no proof to support the allegations, the Supreme Court of India ordered the inquiry because the authorities had been accused of failing in their duties. The private zoo, owned by the family of Asia’s richest man, Mukesh Ambani, and run by Ambani’s son Anant, has promised full cooperation with the authorities.

The zoo is spread over 3,500 acres and is home to some 2,000 species. Among the animals that call it home are 200 elephants, 300 big cats, more than 300 herbivores, and over 1,200 reptiles. The Ambani family, headed by oil-and-gas tycoon Mukesh Ambani, has a collective net worth of USD104 bil (RM440.1 bil). The fortune was amassed after shares in Ambani’s conglomerate, Reliance Industries, soared in 2017 thanks to better refining margins and high demand for the products of its telecom arm, Reliance Jio. Reliance Industries began as a humble textile business opened by Mukesh’s father, with Mukesh himself responsible for the business’s transformation into the multi-billion-dollar conglomerate it is today.

Shorts:

1. Swifties rejoice! Taylor Swift engaged
   Pop superstar Taylor Swift is now engaged to National Football League player Travis Kelce, according to a social media announcement made by the happy couple. No wedding date was announced, but the groom-to-be reportedly said the wedding will be “whenever Taylor says so”. Kelce is a tight end for the Kansas City Chiefs who helped the team win three Super Bowls. The duo’s engagement even received well-wishes from US President Donald Trump, who had tweeted “I hate Taylor Swift” almost a year ago. 30.2 mil likes on their IG post.

2. US asset manager to add USD5 bil to Spanish data centre expansion plan 
   Blackstone is looking to expand its planned project to build data centres in Spain’s Aragon, with the asset manager looking to pump in an additional USD5 bil (RM21.17 bil) into the region that is striving to become a major cloud computing hub. This follows an initial investment of EUR7.5 bil (USD8.7 bil or RM36.84 bil) over nine years that was disclosed in 2024. The second phase would take seven years to complete, according to Blackstone, with the first phase due to start in the second quarter of 2026.

5. FOR YOUR EYES 📺

1. Mama orca teaches baby orcas to hunt a blue whale. This cognitively complex animal has IQ equivalent to that of a 15- or 16-year-old human, based on evidence.

2. Parents, if you do post pictures of your kids, watch this deepfake awareness ad released in 2023.

3. Thursday wisdom.

themindattraction

40K followers

View more on Instagram