☕️ PMX: No land was given to Indonesia

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

The Home Ministry reported that a sum of RM2.77 bil was lost to financial scams in 2025, the highest amount over the past three years. 2023 saw losses of up to RM1.28 bil, with the number rising to RM1.57 bil in 2024. The losses stemmed from various scam tactics, including phone scams, love scams, e-commerce crimes, e-financing scams, as well as non-existent loans and investment schemes. In addition to increasing enforcement and strengthening inter-agency cooperation, the ministry is studying the possibility of amending existing laws. These include provisions under the Penal Code, the Communications and Multimedia Act, as well as legislation related to money laundering. This would allow penalties and seizures to be further carried out against online scams. In China, they execute scammers.

Meanwhile, the Inland Revenue Board (LHDN) reported that there are currently 14,858 Malaysian tax residents with a combined total of over RM10 bil in undisclosed offshore financial accounts (RM673k on average per person). These tax residents have yet to file tax returns via the Income Tax Return Form. The identification was made through the international exchange of financial account information involving cooperation between over 100 countries. These offshore accounts are held across several jurisdictions, including Luxembourg, Hong Kong, Guernsey, the Cayman Islands, the Bahamas, and Bermuda.

LHDN also discovered RM1.4 bil in previously unreported income through its e-Invoice review since the system was rolled out on Aug 1, 2024. More than 500,000 cases of potential underreporting, where taxpayers’ financial capacities did not match existing tax records, were identified. Reminders encouraging voluntary disclosure were issued, leading to 17,188 taxpayers submitting backdated income declarations, contributing RM290 mil in tax revenue. Since the system’s rollout, 979 mil e-invoices have been submitted by 184,325 taxpayers.

Together with Affin Bank

This weekend, AFFIN is throwing a big one, and you’re invited 🎉
The AFFIN Universe: 50th Anniversary Showcase takes over MITEC KL on Feb 7 & 8, with live performances, shopping, family activities, and conversations that actually matter.

Catch Mr Money and Financial Faiz on a live podcast discussion panel, breaking down real-world money topics with zero fluff and plenty of perspective.

Entry is free and open to all, from 10am to 10pm.

Celebrate, learn, and maybe even win something along the way.

See you at Hall 9, MITEC, Kuala Lumpur.

3. IN MALAYSIA 🇲🇾

PMX: No land was given to Indonesia
PM Anwar Ibrahim told Parliament that no sovereign land was ceded to Indonesia in the ongoing and longstanding land dispute talks between Malaysia and Indonesia. He denied the allegation that his administration gave away 5,207 hectares of land (which is about the size of San Marino) along the Sabah-Kalimantan border to Indonesia, saying that any such trade-off would have been based on international conventions and agreements. Let’s break down the land dispute.

The land being disputed by Malaysia and Indonesia belongs to no country
The disputed land, particularly in the southwestern part of Sabah and Pulau Sebatik off the coast of Tawau do not actually belong to any nation, legally known as Outstanding Border Problems (OBP). Both countries have been in long, slow-burning negotiations over two OBPs - the Sungai Sinapad-Sungai Sesai OBP and Pulau Sebatik OBP. After 47 years, both countries agreed on the final boundaries based on conventions and past agreements.

The present boundary is based on two rivers in colonial-era treaties
The British (who used to govern Sabah) and the Dutch (who ruled Kalimantan and Indonesia back then) agreed in 1915 to set the boundaries of their respective territories based on the estuary of Sungai Sinapad and Sungai Sesai. However, river estuaries changed over time and after meticulous re-mapping of the area, it was agreed that Malaysia would obtain 780ha in the Sungai Sinapad-Sungai Sesai OBP, while Indonesia would get 5,207ha. As Indonesia has traditionally governed the OBP all this time, the Jakarta-administered villages - Kampung Kabulangor, Kampung Lepaga, and Kampung Tetagas- will now be a part of Malaysian territory.

Misusing power for money
Duo remanded for allegedly misappropriating RM600,000 in fundraising payments
The Malaysian Anti-Corruption Commission (MACC) has remanded two individuals, including an independent preacher, in Sungai Petani, Kedah, for allegedly misappropriating RM600,000 in fundraising payments for an educational and missionary (dakwah) institution. According to the MACC investigation, it was found that the company’s managing director allegedly colluded with the finance and accounting head to approve a RM600,000 payment to the former as fundraising fees.

NGO secretary remanded for abuse of power over RM4.2 mil in funds
Meanwhile, in Putrajaya, MACC has remanded a secretary of a non-governmental organisation (NGO) suspected of abusing his position to misappropriate about RM4.2 mil belonging to the organisation. The suspect allegedly approved and transferred the funds into the accounts of two other companies. Individuals in the management of the NGO reportedly have vested interests in those two companies. On top of that, the NGO is known to receive public donations for humanitarian missions in Gaza, leading investigations to also focus on public fund misappropriation.

Business
Proton enters plug-in hybrid EV segment with new e.MAS 7 PHEV
Proton now has a product for consumers who want the smoothness of driving an EV without the charging anxiety with the launch of its first plug-in hybrid electric vehicle (PHEV), dubbed the Proton e.MAS 7 PHEV. It is expected to ride on the success of the fully-electric e.MAS 7, the country’s best-selling EV, which has sold more than 9,000 units. The price for the e.MAS 7 PHEV ranges between RM110k for its most basic spec and around RM130k for all the bells and whistles.

PETRONAS-Shell-Petros dispute clarified, PETRONAS still primary recipient
The dispute started when Shell MDS received invoices from both PETRONAS and Petros for the same gas supply in late 2024. After that, a lower court allowed Shell MDS to pause the payments until the dispute is resolved, as the company was concerned it would be forced to pay twice or face operational shutdown. However, in September 2025, the Court of Appeal lifted the pause and ruled that Shell MDS should pay PETRONAS the outstanding amounts. Unfortunately, the wording of the Court of Appeal’s ruling was unclear, and Shell MDS argued that the wording should be made precise for corporate governance purposes. Essentially, Shell MDS needs a clear legal instruction to justify transferring nearly RM1 bil in outstanding sum and interest to PETRONAS. For now, until further notice, PETRONAS remains the primary recipient of payments by Shell MDS, estimated at RM70 mil to RM80 mil per month.

US trade deal not yet ratified by the US
Investment, Trade and Industry Minister Johari Ghani told Parliament that the trade deal signed with the US last October, commonly known as ART, has not taken effect yet, as Washington is trying to secure similar deals with other countries in the region. At the same time, Johari added that he would get a caucus to review the deal, and is inviting any MP who is keen to take part as well. He is also open to attending any relevant parliamentary select committee hearing if summoned.

Shorts

1. Datuk gets two-year jail sentence for having framed tiger skin

   Judge Mohd Zaki Mohd Salleh sentenced Datuk Seri Ng Sing Huat to a two-year jail sentence and a RM300k fine for illegally possessing a framed tiger skin. The framed tiger skin was seized in August 2022 following a public tip-off, and it was subsequently determined through DNA testing to be genuinely that of a tiger. The deputy public prosecutor, Amanina Mohd Anuar, argued that the tiger was a silent victim, unable to defend itself against poachers or seek justice in court. The judge acknowledged this, and said that the sentence given should serve as a reminder to others not to do the same.

2. New armed forces chief to appeal to PM for operational funds

   The newly-minted Chief of the Defence Force, Malek Razak Sulaiman, stated that the temporary ban by Putrajaya on all procurement for the military and police has affected the armed forces’ ongoing operations. Malek said that the armed forces will submit an application to the PM within a week to release funding for operational purposes, as any prolonged delay could affect overall readiness. Malek estimated that the operational expenditure would be around RM5 bil for the armed forces - RM2 bil for the army, and RM1.5 bil each for the navy and the air force.

4. AROUND THE WORLD 🌎

A new nuclear age - US, Russia now “free” to use nuclear arms
The New START treaty between the US and Russia expired yesterday, which means that both countries are no longer bound to any limitations when it comes to using their nuclear arsenals. Neither country has renewed its commitment. The United Nations is calling for an urgent return to the table to sign a new treaty, amid surging global geopolitical instability. Note that the US and Russia possess the overwhelming majority of the global nuclear stockpile.

The expiry is a worrying signal for more than five decades of arms control and could threaten the 1970 Nuclear Non-Proliferation Treaty (NPT), which is up for review this year. In the NPT, states without nuclear weapons pledged not to acquire them, as long as the nuclear-armed states made good-faith efforts to disarm.

The New START treaty was signed between then presidents Barack Obama and Dmitry Medvedev in 2010. Russian President Vladimir Putin had asked US President Donald Trump for an extension of the treaty for one year, which Trump did not pursue. While Russia acknowledged that it is no longer bound to the treaty, it also said that it intends to act responsibly and prudently, but warns that it is ready to take “decisive” countermeasures if its national security is threatened.

The US wants to involve China, but will they join the table?
China’s nuclear arsenal is growing quickly, with an estimated 550 strategic nuclear launchers, compared to 800 each for Russia and the US. However, international efforts to get Beijing to join fresh talks have failed so far. China stated yesterday that the nation won’t be joining any nuclear talks “at this stage”, citing that their nuclear capabilities are of a “totally different scale as those of the United States and Russia”. Nevertheless, China said that it “always maintained that the advancement of arms control and disarmament must adhere to the principles of maintaining global strategic stability”.

China reminds the US about Taiwan
On another note, President Xi Jinping of China has told the US to be more “prudent” when it comes to supplying arms to Taiwan. Xi reiterated China’s stance that it must safeguard its sovereignty and territorial integrity, and it will never allow Taiwan to be separated. In December, the US State Department announced its largest-ever arms sales package to Taiwan, valued at more than USD11.1 bil (RM43.81 bil) and including missiles, artillery systems, and drones. The package is yet to be approved by Congress.

DOJ’s Epstein fails
Epstein files release cause irreparable harm to victims by compromising identities
The release of the Epstein files on the US Department of Justice (DOJ) website appeared to have a serious flaw in redactions, resulting in the compromise of the victims’ identities. Lawyers for the victims said that it has “turned upside down” the lives of nearly 100 survivors. They called the release “the single most egregious violation of victim privacy in one day in United States history”. The files included email addresses and nude photos where the names and faces of potential victims could be identified. The DOJ said it had taken down all the flagged files and that the mistakes were due to “technical or human error”. Sounds like a convenient excuse. The department said it was continuing to examine new requests and checking whether any other documents need further redaction.

Nude images remained
After the warnings and requests from victims’ lawyers, BBC Verify has discovered that unredacted images and videos showing nudity released in the Epstein files still remained online for days. BBC Verify also found that several images of identifiable people were still online on Wednesday, despite the US government stating it was tackling the issue of incomplete redactions the previous day. Four of the images identified by BBC Verify showed partially clothed young women with their faces and bodies unredacted. There are also photos of other people that appear to have been redacted in some documents but left unredacted elsewhere.

Asian hackers infiltrated 37 nations
A research report by cybersecurity firm Palo Alto Networks, Inc. revealed that an Asian cyber-espionage group has spent the past year breaking into computer systems belonging to governments and critical infrastructure organisations in more than 37 countries. The report said that the group has infiltrated the networks of 70 organisations, including 5 national law enforcement and border control agencies. The hackers are suspected of being active in many countries around the world, including Malaysia. The research also revealed that the hackers’ actions coincided with issues and events of particular import to the government of China, and one suspected breach came the day after the US military and law enforcement captured the Venezuelan leader, Nicolas Maduro. The full report is available here.

Draco Malfoy for the Year of the Horse
As the Year of the Horse approaches, Harry Potter’s iconic villain, Draco Malfoy, has become an unlikely lunar new year icon across China. Malfoy’s name is transliterated as “mǎ ěr fú” in Mandarin, where the first character means “horse” while the final character, “fú”, means “fortune” or “blessing” – a powerful symbol found across lunar new year celebrations. What an auspicious name. The wordplay has sparked a wave of memes, fan art, decorations, and themed merchandise across Chinese social media. On another note, Warner Bros. Discovery announced last year that it was going to build a Harry Potter studio tour in Shanghai, larger than the franchise’s existing studio tours in London and Tokyo, which is expected to open in 2027.

5. FOR YOUR EYES 📺

This weekend, invest some time for your health

1. Hemorrhoids (BM: buasir) in cute animation.

2. Best practice with dish sponges.

3. Women go through menopause, men go through - andropause. More here on testing for it.

4. How to grow old better so you won’t be so fragile as you age.