☕️ Putra Heights gas pipeline explosion out - no criminal elements

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

The total area of Permanent Reserved Forests (PRF) in Peninsular Malaysia has shown a consistent trend, even registering a slight increase since 2000. As of 2023, the total PRF area stands at 4,854,658.03 hectares (accounts for roughly 14.5% of Malaysia's entire land mass) according to data from the Peninsular Malaysia Forestry Department. This represents an increase of 2,638.54 hectares compared to the 2022 figures. Zahari Ibrahim, the Forestry Director-General, emphasised that illegal logging or uncontrolled tree felling are not significant factors contributing to changes in the PRF, and forest governance continues to be managed under established laws and frameworks. An additional 888,888.08 hectares (huat ar) are categorised as non-PRF forest area.

OpenAI CEO Sam Altman has offered insight into the energy and water consumption of ChatGPT, stating that an average query uses about 0.34 watt-hours of electricity. To put this in perspective, he noted that this amount of energy is comparable to what an oven would use in a little over one second, or a high-efficiency lightbulb would consume in a couple of minutes. Altman further revealed that an average ChatGPT query also uses approximately 0.000085 gallons of water, which he equated to roughly one-fifteenth of a teaspoon.

Labubu dolls, the grimacing elvish creatures sold in "blind boxes" by Chinese maker Pop Mart, have become a global phenomenon, with a rare variety fetching USD150,000 (RM633.9k) at an auction on June 10. Even at Pop Mart's flagship store in Shanghai, customers face week-long waits due to overwhelming demand. These collectable toys, which sell for as little as USD20 for common varieties, have garnered appreciation from celebrities like David Beckham and Rihanna. The immense popularity of Labubu has sent Pop Mart’s shares soaring by 170% since the beginning of the year, underscoring its success as one of a growing number of Chinese consumer brands gaining significant global traction.

3. IN MALAYSIA 🇲🇾

Putra Heights explosion: No foul play detected
After a lengthy wait, the police have announced their findings on the April 1 fire incident that occurred at the Putra Heights residential area. According to Selangor police chief Hussein Omar Khan, “no elements of foul play, sabotage or negligence” were found. Following this, the formation of a special task force is in the works to determine the responsible party for the fire, as well as the next steps. Meanwhile, DOSH (occupational safety and health department) petroleum safety division director Husdin Che Amat attributed the incident to unstable ground conditions, leading to the physical failures within the pipe, which in turn led to a gas leak and then the huge fire.

Surely, affected residents of the fire would not settle for such an answer? However, until more answers are unearthed, all they can do at the moment is wait and watch. The April 1 fire was reported to have soared as high as 30m, reaching 1,000 degrees Celsius. While there were no fatalities, over 150 victims had to seek treatment at hospitals. The Selangor MB had estimated property damages at around RM65.4 million.

Retiring Malaysian Chief Justice's successor still TBC
Despite Chief Justice Tengku Maimun Tuan Mat’s mandatory retirement being just a day away (on 2 July, to be exact), there is no official successor being named yet. Several parties, however, have commented on the issue. PM Anwar Ibrahim, for one, has hinted at an attempt to pressure the government to either extend or end specific tenures. Meanwhile, Malaysian Bar President Mohamad Ezri Abdul Wahab commented that the issue could have been avoided with “timely action”; Malaysia already had clear steps for managing such transitions, with acting appointments an option when necessary. Former Economy Minister Rafizi Ramli highlighted that 7 Federal Court judges are set to retire between July and Nov 2025, an unprecedented situation where more than half of the apex court bench will be vacant and could lead to a significant slowdown in the administration of justice across all court levels.

Tengku Maimun, who holds the distinction of serving as Malaysia’s first female top judge, boasts a rather illustrious career, with postings at the Attorney General's Chambers, Magistrates and Session Courts, the Court of Appeal, followed by an appointment to the Federal Court. She was appointed to the post of Chief Justice in 2019. Regardless, one cannot deny that she has a wealth of experience presiding over many high-profile cases, such as the late Karpal Singh’s sedition trial as well as former PM Najib Razak’s appeal in the SRC International Corruption case.

Business

South Korean conglomerate mulls selling stake in Malaysian business
SK Group, one of South Korea’s largest conglomerates with over 100,000 employees, is a significant foreign investor in Malaysia. With USD700mil (RM2.95bil) worth of investments committed in 2021 (followed by plans for additional investments in the following years), the conglomerate has taken an interest in Malaysia’s various industries such as electric vehicles and fintech. Hence, it does come as a surprise when SK was reported to be working with a financial adviser on a possible plan to sell its 30% minority stake in Cenviro Sdn Bhd (Khazanah is the majority shareholder), a local waste management company. The sale could value the company at RM1.27 bil.

Mighty supercar brand Ferrari loses lawsuit to… a Malaysian company
In a rather strange and cheesy tale of “Malaysia Boleh”, Italian supercar maker Ferrari lost a trademark lawsuit to Sunrise-Mark Sdn Bhd, which sells an energy drink product called “Wee Power”. The High Court ruled that Ferrari’s lawsuit against the Malaysian company had no grounds, given that the average consumer would not confuse both brands, despite their respective product logos featuring a horse (it’s different enough, trust us). See the side-by-side comparison of both logos here. Speaking of cheesy trademark lawsuits, some Malaysians may remember the McDonald-McCurry court case all those years ago. Read it here.

Shorts

1. Malaysia, Singapore unveil Rapid Transit System train car

   The Johor Bahru-Singapore Rapid Transit System, last reported to cost at least RM5.24bil, has given Malaysians and Singaporeans alike a first look at its driverless train cars. Built by China’s CRRC Zhuzhou Locomotive (which has a factory in Batu Gajah, Perak), the new four-car train, measuring 76.5 metres in length, is capable of carrying between 600 and 1,000 passengers during peak hours. Once the RTS line starts operations in 2026, it is expected to help alleviate the cross-border traffic by transporting passengers from Johor Bahru’s Bukit Chagar station to Singapore’s Woodlands North station within just 5 minutes! Here’s a short video of the RTS train car for your viewing pleasure.

2. Anti-corruption rally held in KL during long weekend

   While Malaysians were enjoying the long weekend, the Sekretariat Rakyat Benci Rasuah, a coalition of non-governmental organisations and student associations from local universities, rallied together in KL city to call for the strengthening of the legal system and for anti-corruption institutions to be made more independent. The rally, attended by about 100 supporters, grew tense when one of the participants lit a flare after delivering a speech, engulfing the area in red smoke. The scenario above would most certainly remind Malaysians of the recent Gempur Rasuah 2.0 Rally held by students of Universiti Malaysia Sabah, which saw a caricature of PMX burned.

4. AROUND THE WORLD 🌎

Trump: Immigration, TikTok, Fed chair

Immigration raids leave California farms at risk
A farmer shared that about 70% of the workers in California’s fields have been scared off due to raids by the US Immigration and Customs Enforcement (ICE), leading to produce going bad as there are no hands to harvest it, during peak harvest time, no less. Most economists and politicians acknowledge that many of America’s agricultural workers are illegal aliens, but this sharp reduction is likely to have “devastating impacts” on the food supply chain and farm-belt economies. Even Trump has u-turned on this, saying the raids on farmworkers and hotel workers have taken “good, long-time” workers away from those sectors. He also pledged to issue an order to address the impact, but maybe don’t hold your breath.

Trump's TikTok buyers
The US president shared that a group of “very wealthy people” have expressed interest in buying TikTok, though he says he will likely need China’s approval for the deal. This comes after Trump has repeatedly delayed a bill, forcing TikTok owner ByteDance to sell the app or have it banned in the US.

Trump wants Fed chair replaced ASAP
US Treasury Secretary Bessent has indicated he is open to replacing current Federal Reserve Chair Powell, at a time when Trump is looking to replace the Fed chair as soon as possible following flaring tensions. As it stands, there are already many names being floated as Powell’s successor, even though Powell’s term as Fed chair only ends in May next year. Trump has been calling with increasing frequency for rate cuts that would save the US government money, but Powell has said he wants to see “exactly where the cost of tariffs are going to be borne in various value chains” before he decides on rates. Basically, he wants to see who will take the hit from the tariff price hikes.

Money Talks

AI middle managers? Anthropic says "maybe"
In a recently published Project Vend report, AI firm Anthropic said it let its Claude AI manage an “automated store” in the office for a month to see how a large language model would run a business, offering a look at how AI handles complex business scenarios. Things started off okay, then derailed when the AI started sales of metal cubes, made a fake Venmo account, and had an AI identity crisis. However, the takeaway from this is that, while Anthropic wouldn’t hire their AI as an in-office vending agent, they believe that AI middle managers are plausibly on the horizon. While they did not know if AI middle managers would replace many existing jobs or spawn a new area of business, they do know that AI won’t have to be perfect to be adopted, but be “competitive with human performance at a lower cost”.

Coconut water firm's IPO boosted by Chinese consumer demand
Thai coconut water maker IFBH saw its shares on the Hong Kong Stock Exchange, initially priced at USD3.54 each, surge as much as 67% on their debut, valuing it at about USD1.34 bil. This is an indicator that niche consumer brands can still catch attention – and money – in a sluggish Chinese economy. Investors displayed clear enthusiasm, with the offering oversubscribed 2,682 times despite a broader slump in Chinese consumer spending. IFBH has been the top coconut water brand in China for five years in a row, at one point holding a third of the market share. In 2024, revenue shot up by 80% to USD157.6 mil, raking in net profit of USD33.3 mil - view financials here.

Shorts

1. Study: Up to 50 times more microplastics in glass bottles than plastic

   France’s food safety agency revealed that drinks sold in glass bottles contained more microplastics than those in plastic bottles. Researchers found an average of 100 microplastic particles per litre in glass bottles of soft drinks, lemonade, iced tea, and beer, which is between 5 to 50 times higher than the rate in plastic bottles or metal cans. The cause is apparently the caps of the bottles, which release particles due to friction and tiny scratches. Water and wine both contained few microplastics, even in glass bottles with caps.

2. Dalai Lama to reveal succession plan at major Buddhist gathering

   The Tibetan spiritual leader will be sharing details about his succession at a three-day gathering of Buddhist religious figures this week, in a move that could irk China. This involves looking at possible clues on where his successor, a boy or a girl, could be found following his death, with the Dalai Lama indicating there is some kind of “framework”. The Tibetan parliament-in-exile believes that, as much as China vilifies the Dalai Lama, they want to have the spiritual leader’s reincarnation “for political purposes”.

5. FOR YOUR EYES 📺

1. Xiaomi launches its AI glasses that can record photos and videos, act as an AI assistant and translator, make payments and can change lens colours too. Ray-Ban Meta vs Xiaomi - watch here. If you are wondering, it’s the same Facebook Meta - the tech giant was in talks to buy a 5% or USD5 bil stake in Ray-Ban owner EssilorLuxottica, which also owns Oakley.

2. Origins: Corporate Jargon. “Let’s double click on that” - that’s a first.