☕️ Rafizi says I am here to stay, if...

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

113,000 – This is the number of individuals and businesses that received assistance through AKPK's Debt Management Programme (DMP) between 2023 and 2024. AKPK's latest report revealed that these newly approved cases were supported by over RM3.2 bil in collections. Notably, in 2023 alone, the DMP approved a record high of 52,057 individual cases, marking an increase of over 50% compared to the 34,670 cases approved in 2022. This figure includes mandatory referrals from financial institutions.

70,421 – The number of Japanese residents in Thailand has decreased by 14.7% to this figure in the three years leading up to Oct 2024, according to official statistics. This decline is part of a broader trend across Southeast Asia, with the number of Japanese expats also falling in Indonesia, the Philippines, Vietnam, and Malaysia for at least the past four years. This shift is partly attributed to Japanese companies increasingly relying on local managers to better cater to local market preferences, a change from the traditional practice of sending Japanese nationals on overseas assignments. Additionally, the rise in dual-income couples in Japan has made overseas transfers less appealing as partners are often reluctant to interrupt their own careers.

USD16 bil (RM67.82 bil) – Southeast Asia's private equity (PE) market experienced a significant rebound in 2024, with the total value of deals surging by this amount, representing a 60% increase compared to the previous year. This recovery aligns with broader trends observed across most Asia Pacific markets. According to Bain & Company's Southeast Asia PE report, this surge in deal value was primarily driven by substantial investments in digital infrastructure within Singapore and Indonesia. Despite the considerable increase in deal value, the total number of deals saw a slight decline, indicating persistent challenges in the regional deal-making landscape.

3. IN MALAYSIA 🇲🇾

Rafizi says I am here to stay, if…
Economy Minister Rafizi Ramli said that he will defend his PKR deputy presidency and welcomed any challengers for the position, which may include Saifuddin Nasution Ismail and Nurul Izzah Anwar. Rafizi added that both Saifuddin and PM Anwar Ibrahim have advised him to contest in the party’s polls, which will be concluded by the end of the month. Before he made the decision to defend his deputy presidency, Rafizi had expressed his willingness to step aside (from his ministership) to prepare the party for GE16 to both PM Anwar and Saifuddin. Without being bound by cabinet and government rules, he can campaign freely and assertively in the lead-up to GE16. Some might speculate he is reacting to recent disappointments as his camp went through a tsunami of defeats in the PKR grassroots elections.

Rafizi’s potential challenger for the PKR No.2 position and the future successor of PM Anwar Ibrahim, Nurul Izzah Anwar, has accumulated numerous supporters from the grassroots level as of late. However, a political analyst who is also a fellow of UiTM Institution of Malay Rulers Chair, Jayum Jawan, said the move can make PKR be seen as a nepotistic party as Nurul Izzah’s father, Anwar Ibrahim, is its president and the prime minister. Jayum added that calling for Nurul Izzah to contest is against the spirit of reformasi and opens the Pandora's box of cronyism within the party. With all this drama, is PKR really ‘parti derita‘ (party of agony) as touted?

ASEAN summit: Some schools will be virtual, some workers to WFH
Communications Minister Fahmi Fadzil announced that schools located on routes to be affected by the upcoming two-day ASEAN Summit will be closed, but students and teachers will still be in classes, albeit virtually. The Ministry of Education will release the list of schools that will be closed soon. Additionally, the government has encouraged both private and public employers to work from home on those two days.

The 46th ASEAN Summit, which is held biannually, will return to Kuala Lumpur on May 26 and 27 at the Kuala Lumpur Convention Centre (KLCC). About 20,000 people will gather at KLCC, including 19 heads of state and government, from ASEAN countries, Gulf nations and China. This round of the ASEAN Summit will, of course, be focusing on Trump’s tariffs and how the region is expected to respond to the matter, amongst others.

Business news

‘Amal Trust’ operator charged RM3.16 mil
The SC has reprimanded businessman Razrul Anwar Rusli at the Kuala Lumpur Sessions Court for defrauding five investors of RM3.159 mil in a fictitious investment scheme known as ‘Amal Trust’. The dubious fund was allegedly being claimed as Shariah-compliant bonds that offer high returns. Interestingly, Razrul was a former Johor Bahru division deputy chief of the Bersatu party.

No dumping of synthetic polymer imports
Malaysia has imposed a five-year anti-dumping duty on polyethylene terephthalate (PET) imports from Indonesia (37.44%) and China (2.29% to 11.74%). Dumping refers to a situation where a company or country sells goods in a foreign market at a price lower than the price they charge in their own domestic market, or even below their cost of production. The Ministry of Investment, Trade and Industry (Miti) has found out that the dumping activities have negatively impacted the domestic producers that manufacture similar products. The decision to impose the anti-dumping duty was made based on a petition filed by a local producer, Recron (M) Sdn Bhd. China did not respond tit for tat, but instead our big brother replied with kindness. Malaysians travelling to China may soon enjoy visa-free entry to China for a cumulative stay of up to 90 days, pending the finalisation of the Mutual Visa Exemption Agreement between both nations. The extension builds on the current reciprocal agreement, which allows nationals of China and Malaysia to make visa-free visits to each other for a stay of up to 30 days.

PayNet searching for unicorns with Fintech Hub
PayNet has launched the Fintech Hub to nurture the next Google, Apple or Grab and to support Malaysian fintech startups with access to funding, mentorship, strategic partners, and essential resources to help them succeed. The Fintech Hub is also expected to unlock up to RM5 bil of intangible value for the local fintech. To those interested, learn more here.

4. AROUND THE WORLD 🌎

India-Pakistan Conflict

India launches missiles, Pakistan vows retaliation
Missile strikes from India landed in Pakistan and Pakistani Kashmir in the most severe escalation seen between the two countries in over 20 years. India said the missiles struck nine “terrorist infrastructure” sites used for recruiting, training, and indoctrination linked to Islamist militant groups Jaish-e-Mohammed and Lashkar-e-Taiba, as part of “Operation Sindoor”. Pakistan has vowed to retaliate, saying the missiles killed at least 26 and wounded 46 others, and that none of the sites hit were militant camps. Heavy gunfire and intense shelling have also been exchanged across the de facto border in Kashmir, according to police and witnesses. The scale of this round of retaliation is far greater than previous actions taken by India, and an analyst believes a sizable Pakistani response is to be expected.

Airlines conduct mass flight reroutes across Asia
The escalation into open conflict between India and Pakistan has also triggered major airlines to conduct mass flight reroutes to avoid the conflict zone, with Indian carriers already barred from Pakistani airspace. Other airlines have increasingly either cancelled flights or adjusted international routes to bypass Pakistani airspace, leading to major detours and European refuelling stops for long-haul flights. Malaysia Airlines and Batik Air suspended routes involving Pakistani airports as well. The reroutes left the airspace above Pakistan clear of most aircraft.

US diplomacy

Ice-breaker trade talks for US, China
US Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will be meeting China’s vice premier and economic tsar, He Lifeng, in Geneva, Switzerland, with the talks hopefully a first step towards resolving the US-China trade war disrupting the global economy. The two sides are expected to discuss reductions to the broader tariffs, along with duties on specific products, export controls, and Trump’s decision to end de minimis exemptions on low-value imports, according to sources. Shortly after the talks were announced, Beijing announced a raft of stimulus measures, including interest rate cuts and a major liquidity injection, in a bid to shore up the Chinese economy before the talks. Analysts believe the “tactical” stimulus measures would create more leverage for China in the form of timely domestic support.

Israel, US discuss possibility of US-led administration for Gaza
Sources indicate that the two nations have discussed the possibility of a temporary post-war administration led by Washington in Gaza, essentially a transitional government headed by a US official until the area has been demilitarised and stabilised, with a viable Palestinian administration in place. These talks remain preliminary and would depend on the situation on the ground. The sources have compared this to the Coalition Provisional Authority in Iraq, which was seen as an occupying force by the locals, leading to a growing insurgency that the authority failed to contain. It remains unclear who brought up the topic.

Meta matters

Facebook alleged of detecting when teen girls delete selfies to show beauty ads
The allegations were made by former Facebook insider Sarah Wynn-Williams, who blew the whistle through her book titled “Careless People”, with Facebook said to have been looking for ways to expand its ad-targeting abilities to 13-17 year-olds across Facebook and Instagram. A further allegation surfaced that Facebook created a pitch deck for advertisers claiming they could exploit “moments of psychological vulnerability” in users, and even tracked when teen girls deleted selfies, so the algorithm could serve them beauty ads at that moment. This method was also allegedly used to target young mothers and mapped to the emotional indexes of racial groups. Absolutely dystopian, utterly sick.

WhatsApp wins lawsuit against spyware maker NSO Group
This marks a huge legal win for WhatsApp, considering NSO has to fork over almost USD168 mil (RM712.15) in damages to the chat platform. WhatsApp initially asked for over USD400,000, calculated based on the time employees had to dedicate to fend off, investigate, and push patches addressing the attacks. The platform’s spokesperson also called the victory a historical one, as “the first victory against illegal spyware that threatens the safety and privacy of everyone”.

Shorts:

1. Disney announces new Abu Dhabi theme park

   Plans were unveiled for a whole new resort in Abu Dhabi, in partnership with regional “immersive experiences” leader Miral. This also marks the first new park since 2016’s Shanghai. So far, there are no clear dates, though Disney has remarked that their partner Miral is eager to move quickly. Disney recorded strong earnings in its recent quarterly results, released right before the announcement of the Abu Dhabi theme park. Revenue came in at USD23.6 bil (RM100 bil), up 7%, with an operating income of USD4.4 bil.

2. US DOJ suggests sale of two Google ad products to break monopoly

   The US Department of Justice (DOJ) is proposing that Google sell two of its advertising products, AdX and DoubleClick for Publishers, to break up its monopoly and restore competition to the ad tech space. The DOJ also wants Google to avoid running an ad exchange for 10 years after the sale of AdX. This follows a judge's ruling that Google is guilty of “willfully acquiring and maintaining monopoly power” in the digital ad space last month.

3. Uber CEO: Robotaxis busier than 99% of human drivers in Austin

   Uber CEO Dara Khosrowshahi revealed that the 100 or so Waymo robotaxis operating on the Uber app are busier than “over 99% of all drivers in Austin” in terms of completed trips per day. The CEO also revealed that Uber and Waymo plan to scale the autonomous fleet to hundreds of Waymos in the coming months, ahead of the launch of the robotaxis in Atlanta later this year.

5. FOR YOUR EYES 📺

1. Singapore PM Lawrence Wong addressing concerns about foreign interference in Singapore’s domestic affairs. The whole 7 minutes is worth watching, especially the second half.
   TIL: Identity Politics — politicians who appeal for support based on race or religion and champion the interests of that particular group over other groups, and over everything else.

2. Bill Gates in Singapore, eating at a hawker centre. Watch him here giving durian a go. He’s in Singapore for big business to attend the Philanthropy Asia Summit 2025 and announced that the Gates Foundation will open an office in Singapore.

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