☕️ PM Anwar to host ASEAN x GCC x China Summit in May

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

29,000 – The alleged cutting of centuries-old chinar trees (view here) in Kashmir has ignited public outcry, contrasting sharply with the government's claim of routine pruning. The chinar, an iconic symbol of the valley, faces an uncertain future, despite efforts to preserve it. A project to geotag these trees has identified approximately 29,000 so far, with thousands more remaining to be mapped. The discrepancy between government records and on-the-ground observations highlights the challenge of accurately assessing the chinar's declining population.

60% – A significant majority of young Africans express dissatisfaction with the current state of democracy, revealing a growing disillusionment with "Western-style democracy." This sentiment is compounded by low political party affiliation, with only 37% identifying with a party, a decline from previous generations. Simultaneously, half of the young people surveyed plan to emigrate within five years, driven by a search for better opportunities abroad. America and Europe are the most desired destinations, underscoring a critical talent drain from the continent.

USD21 bil (RM92.83) – The Bond film franchise, spanning 60 years, continues to be a lucrative asset, having grossed this impressive sum in today's money. Even during pandemic-related cinema challenges, "No Time to Die" (2021) earned USD900 million. Amazon has recently acquired creative control of the Bond franchise, reportedly for a nine-figure sum, which signals the enduring marketability of the iconic spy series.

3. IN MALAYSIA 🇲🇾

Malaysia decided not to retaliate against the US but it does not mean that we are not responding
PM Anwar will be making history as the first Malaysian PM to host the ASEAN-Gulf Cooperation Council (GCC) Summit in Kuala Lumpur next month. The Gulf Cooperation Council (GCC) is a regional, intergovernmental organisation of six Arab Gulf states: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. PM Anwar is also inviting China to the summit, clearly indicating Malaysia’s intention to pave a new tripartite alliance to counter the US’ unpredictability. Previously, the maiden ASEAN-GCC Summit was held in October 2023 in Riyadh, Saudi Arabia where the ASEAN and GCC leaders welcomed the ASEAN-GCC Framework of Cooperation (FOC) (2024-2028).

Foreign Minister Mohamad Hassan also added that the Summit will further strengthen the tripartite economic ties between ASEAN, the GCC and China. This alliance could also give access to ASEAN products and services to new markets, countering US trade restrictions. Instead of relying on the old narrative that the Global South needs the Global North to grow its economy, this tripartite alliance can further develop the South-South economic bloc, where East Asia, Southeast Asia and West Asia countries cooperate with each other to attain economic prosperity. Key statistics about this proposed new tripartite alliance:

• In 2023, ASEAN-China trade was valued at USD700 bil. During the same year, ASEAN-GCC trade was at USD130.7 bil and GCC-China was recorded at USD316.4 bil;

• The combined GDP of ASEAN, GCC and China was USD23.7 tril in 2023, making it the largest economic bloc in the world and constitutes about 22.3% of the total world GDP;

• ASEAN-GCC-China would make up a large market, with an estimated population of 2.15 bil people.

However, ASEAN needs to be wary of its approach to GCC as the latter is a loose organisation where member states can pursue their own foreign policies individually. Unlike a supranational organisation like the European Union (EU) or a charter-based organisation like ASEAN, GCC is a loose cannon. If memory serves you well, even Qatar, a member of the GCC, faced an economic boycott by other GCC members in 2017, up to the point Saudi Arabia intended to dredge a canal at the Saudi Arabia-Qatar border, so that there is a physical separation between the two states.

Before the tripartite alliance can happen, we first need to be aligned with China
In preparing for the arrival of Chinese President Xi Jinping for his official visit to Malaysia from Tuesday until Thursday this week, a total of 17 roads across Klang Valley will be closed or diverted temporarily, which will last between 30 to 45 minutes to allow safe passage for the Chinese delegation. According to the Federal Police Traffic Enforcement and Investigation Department Director Mohd Yusri Hassan Basri, below are the details of the roads involved:

To all, please plan your journey, especially for those who have important meetings or catching a flight. Fortunately, in Malaysia, if you think you may be late for your flight, you are in luck as per the Malaysian Aviation Commission (Mavcom), even the airliners were late. Mavcom announced that according to their data for January 2025, all four Malaysia-based airlines operating out of the Kuala Lumpur International Airport (KLIA) performed below the target of 85% on-time performance (OTP) for the international sector. Except for Malaysia Airlines, AirAsia, AirAsia X and Batik recorded improvements in their OTPs in January 2025, compared to December 2024.

When it comes to domestic flights, Mavcom said only AirAsiaX met the target of 85% OTP in January. On the other hand, similar to its international performance, Malaysia Airlines also performed poorly in the domestic sector, where the country’s flag carrier saw a deterioration in punctuality for its domestic flights in January, recording an OTP of 79.9%, down from 86.1% in December and 85.2% in November.

Road safety enforcement where?

• 15 vehicles bulldozed by a lorry with a brake failure
  Sepang deputy police chief Supt Shan Gopal Krishnan stated that a total of 15 vehicles on the slip road from the Serenia Toll Plaza heading towards Cyberjaya, were mowed by a lorry last Saturday. The incident happened when a lorry with a brake failure rammed into 15 vehicles that were waiting to exit the Serenia Toll Plaza. Fortunately, no casualty was recorded. View the incident here.

• A good samaritan was killed by a drunk driver
  Seri Alam OCPD Asst Comm Mohd Sohaimi Ishak said that a man who had stopped to assist a motorcyclist involved in a crash was killed after being hit by a car driven by a man under the influence of alcohol. The deadly event happened at KM16 of the Jalan Johor Baru-Kota Tinggi. The driver of the killer car only sustained minor facial injuries.

4. AROUND THE WORLD 🌎

Trade War: China’s POV

Trump exempts smartphones and computers from new tariffs
Last Saturday, the Trump administration surprisingly (or rather, unsurprisingly to us) announced that they are exempting smartphones, computers and some other electronic devices from "reciprocal" tariffs, including the 125% levies imposed on Chinese imports. The move came after concerns from US tech companies that the price of gadgets could skyrocket, as many of them are made in China. These goods would also be excluded from Trump's 10% global tariff on most countries. This marked the first significant reprieve of any kind in Trump's tariffs on China. Meanwhile, big techs like Apple and NVIDIA can now breathe a sigh of relief, albeit a temporary one. The exemptions cover almost USD390 bil (RM1.72 tril) in US imports based on official US 2024 trade statistics, including more than USD101 bil from China, according to analysts data compilation.

On a separate note, Apple’s iPhone 16 is now finally available in Indonesia after the months-long ban. After rejecting an initial USD100 mil investment deemed to lack “fairness”, Indonesia is now happy that the company has agreed to invest USD150 mil in building two facilities in Bandung to produce accessories and another in Batam for AirTags. Apple had also committed to building a semiconductor research and development centre in Indonesia.

JD.com pledges USD27bil to help tariff-hit Chinese exporters go local
In an effort to support Chinese sellers amid tariff escalation between China and the US, Chinese retail giant JD.com has pledged to invest at least CNY200 bil (USD27 bil) over the next year to help Chinese exporters sell more goods domestically. The company will buy products from these businesses and set up a special area on its online marketplaces specifically for these items to draw more customer traffic. It has already begun recruiting prospective sellers. The company reported CNY41.3 bil (USD5.7 bil) in net profit last year, up 71% on the year, with sales rising 7% to CNY1.16 tril (USD158.8 bil).

TikTok drives ByteDance’s 29% revenue growth
Despite its predicament in the US, ByteDance revenue was reported to jump 29% to USD155 bil in 2024, after its infamous app TikTok drove a worldwide expansion that helped offset an economic downturn back home in China. Its international sales grew by a much quicker 63% to USD39 bil, contributing to roughly a quarter of the top line. ByteDance’s net profit for the year edged up to around USD33 bil. Some of ByteDance’s biggest investors value the firm at over USD400 bil on their books, while the firm plans to buy back employee shares at a USD312 bil valuation.
Read: How TikTok’s parent, ByteDance, became an AI powerhouse

Millions told to stay indoors as strong winds lash China
China residents braced for wind gusts of up to 150km/h over the weekend, the strongest in the Chinese capital for more than half a century. The strong gale hit Beijing and northern China on Saturday, forcing the closure of attractions and historic sites and cancellations of hundreds of flights and suspension of train operations. Millions were urged to stay indoors starting Friday, with some state media outlets warning that people weighing less than 50kg may be "easily blown away". China measures wind speed on a scale that goes from one to 17. A level 11 can cause "serious damage", while a level 12 wind brings "extreme destruction". The winds last weekend were expected to range from level 11 to 13.

China on US trade war: “We don’t care. China has been here for 5,000 years. Most of the time, there was no United States and we survived. If the US wants to bully China, we will deal with the situation without the US and we expect to survive for another 5,000 years”.

On the fashion front

• Prada braves tariff uncertainty to clinch USD1.4 bil deal for Versace
  Having defied a slowdown in luxury demand, Prada decided to buy its smaller rival Versace from Capri Holdings for USD1.38 bil, marking the unification of the 2 biggest names in Italian fashion. A win-win situation for both - Prada is said to be seeking expansion while Versace itself has been operating at a loss in recent quarters. The merging is also expected to bring in more revenues, with a possibly interesting fusion of Prada’s minimalist design and Versace’s more flamboyant, baroque-style prints. The price Prada has agreed to pay for Versace, which includes debt, is a big discount to the roughly USD2.15 bil including debt that US-based Capri, then known as Michael Kors, paid for Versace in 2018 when it was sold by the Versace family and Blackstone.

• China's Anta to acquire Germany's Jack Wolfskin amid US trade war
  Chinese apparel group Anta and German’s Jack Wolfskin's owner Topgolf Callaway Brands separately announced last week that Anta will acquire the latter on a base price of USD290 mil in cash, subject to netting working capital and other adjustments. Fujian-based company Anta has been acquiring foreign brands for years. It now has Fila, Amer Sports, Descente and Kolon Sports under its umbrella. Alongside domestic rivals like Li Ning and Xtep International Holdings, Anta has become a formidable competitor against Western multinational brands Nike and Adidas in mainland China, where demands are slumping. Founded in 1991, the Hong Kong-listed company reported last month that it brought in CNY70.8 bil (USD9.7 bil) in annual revenue last year, 13.6% higher on the year, with a net profit of CNY15.5 bil (USD2.1 bil), up 52.4%. Meanwhile, with the acquisition Topgolf Callaway is actually disposing of a loss-making business unit at a discount, where it bought Wolfskin in 2019 for EUR418mil at the time.

Shorts

1. ‘Science nerd’ may face jail for importing plutonium into home

   Science can be very fascinating, but an obsession could lead one into trouble. A Sydney man, Emmanuel Lidden, now could face jail time after ordering radioactive material over the internet, thanks to his obsession with collecting all the elements of the periodic table.

   The importation sparked a major hazmat alert, with Australian Border Force (ABF) officials, firefighters, police and paramedics all attending the scene in Aug 2023. Lidden pleaded guilty to offences under Australia’s Nuclear Non-Proliferation Act that carry a possible 10-year jail sentence.
   Microsoft founder Bill Gates was also into building his own periodic table - minus radioactive elements.

2. Batman and Robin go after ‘bad men’ in London

   A police inspector and his sidekick constable donned a Batman and a Robin costume as undercover in their operation to catch low-level scammers swindling tourists in the centre of London. Unaware of their presence, the scammers who were running an illegal gambling operation in the form of an entertainment game similar to a “cup-and-ball game” were successfully caught in their act. The police said that the operation was part of a wider crackdown on illegal gambling on Westminster Bridge, which stretches between the Houses of Parliament and an area housing tourist attractions, including the London Aquarium.

5. FOR YOUR EYES 📺

1. If you’ve been on X, you may have seen snippets of Naval Ravikant on Chris Williamson’s podcast. If you have a minute, please take a pause and think about this line — “Not wanting something is as good as having it.” Do it during your toilet breaks or random walks that you take — what have you been wanting in the last 6 months? Mine — is an IKEA Symfonisk (not sponsored) and I’ve been a slave to it (checking the IKEA website daily for sale, the joke’s on me).

2. Malaysia, Singapore vs Trump’s Tariffs

3. Disclaimer: Not Financial Advice. Not sure what is Grindr — learn here.