☕️ Return of Hishammuddin and KJ? Umno reunion talk gains momentum

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

3.38 mil – That’s Malaysia’s projected non-citizen population in 2025, or 9.9% of our total population. This represents a 0.5% decline compared with 2024, according to the Department of Statistics. This is also the first time the department has released “International Migration Statistics, Malaysia 2025” under the UN’s Recommendations on Statistics of International Migration and Temporary Mobility 2025. In the initial phase of Malaysia’s international migration statistics, the focus will be on migrant stock statistics, which include comprehensive data on the non-citizen population in Malaysia and Malaysian citizens abroad.

RM1.61 tril – Malaysia recorded exports of that amount in 2025, up 6.45% from RM1.51 tril in 2024. However, this was led by a 24.95% expansion in re-exports, while domestic exports only grew 2%, compared with 9.4% the previous year. This indicates that much of the growth in Malaysian exports did not come from goods made in Malaysia, but rather goods that are imported and repackaged, sorted, or graded in the country without undergoing any transformation process.

USD2,443 (RM9,567) – That’s the spot rate for a 40-foot container from Shanghai to Rotterdam. It is also 19% higher than the previous week’s spot rate, making it the steepest weekly gain in percentage terms since June 2025. The cost to ship goods in containers to Europe from China has jumped since the start of the Iran conflict. From China to the US, specifically Shanghai to Los Angeles, the rate was 4.2% higher than a week earlier at USD2,503. These rate hikes are due to the world’s major container carriers adding emergency fees and fuel surcharges to their long-haul rates. Since shipping lines have stopped transiting the Strait of Hormuz and are also avoiding the Red Sea, they are left with the longer route around southern Africa. Learn: What is a spot rate?

3. IN MALAYSIA 🇲🇾

Umno reunion talk gains momentum
Hishammuddin signals readiness to return: Former defence minister Hishammuddin Hussein has indicated he is ready to return to active duty in Umno if the party leadership lifts his suspension. In a video shared on Instagram, the Sembrong MP welcomed recent remarks by party president Zahid Hamidi about reviewing suspended leaders’ status. Hishammuddin stressed he never left the party despite a six-year suspension in Jan 2023 following the 15th general election and said he refrained from publicly criticising the party during this period. The suspension was imposed by Umno’s Supreme Council after several leaders were accused of acting against party interests. Hishammuddin previously served as Umno VP and held senior Cabinet roles, including defence and foreign minister. He added that if the leadership sincerely lifts the suspension, he is prepared to return and contribute to the party.

Khairy seeks path back to the party: At the same time, former health minister Khairy Jamaluddin is also exploring a return, submitting an appeal to rejoin Umno three years after his expulsion in Jan 2023. Zahid confirmed receiving the request, which will be referred to the party’s Jawatankuasa Penyatuan Rumah Bangsa, chaired by Defence Minister Khaled Nordin, for review. Khairy’s appeal comes as Umno promotes its Rumah Bangsa initiative to rebuild party unity. Since leaving Umno, Khairy has remained in public view through the Keluar Sekejap podcast with Shahril Hamdan and his role as a radio deejay on Hot FM. He previously served a decade as Umno Youth chief and held ministerial posts, including health minister from 2021 to 2022.

Banks roll out discounts before car loan rule change
Malaysian banks will offer goodwill discounts to customers who settle existing hire-purchase loans early, ahead of major changes in car financing. The initiative, announced by the Association of Banks in Malaysia, the Association of Islamic Banking and Financial Institutions Malaysia, and the Association of Development Finance Institutions of Malaysia, takes effect on June 1, 2026. The move coincides with the Hire Purchase (Amendment) Act 2026 (HPAA), which ends the long-used Rule of 78 method for new hire-purchase loans. This method front-loads interest, meaning early repayment often saves little. Under the new law, banks must adopt the reducing balance method, where interest is charged only on the remaining principal, making repayments more transparent and reflective of actual financing costs.

Banks have until Mar 31, 2027, to upgrade systems, with some continuing to offer loans under the Rule of 78 during the transition. The goodwill discounts apply to individuals and micro and small businesses with fixed-rate agreements signed before June 1, 2026, or during the transition, provided accounts are in good standing and not under legal action or debt management programmes. Each bank will calculate the discount based on loan tenure and timing of early settlement. Customers are encouraged to check whether the reducing balance method is available and to compare options using the effective interest rate, which reflects the actual cost of financing. To understand more about this new law, watch this.

Business
Corporate Mafia updates
Businessman Victor Chin has called for any probe into alleged corporate manipulation in Malaysia to examine enforcement agencies, including the MACC and the police, after authorities raided several premises linked to him last week. Cars and documents were seized as part of an ongoing investigation. While acknowledging a corporate mafia may exist, Chin insisted he is not part of it and said any royal commission of inquiry should also scrutinise authorities’ conduct, not just businessmen. The issue gained traction after a Bloomberg report alleged certain businessmen worked with MACC officials to pressure company founders and remove them through legal action. Both Chin and the MACC strongly deny the claims. Inspector-General of Police Datuk Seri Mohd Khalid Ismail confirmed that Bukit Aman’s Anti-Money Laundering (AMLA) Special Task Force inspected several premises connected to Chin, with investigations ongoing. Items seized reportedly included cars, jewellery, watches, cash in ringgit and foreign currencies, and related documents. Victor Chin explains his involvement in a number of public listed companies, including NexG Bhd, NexG Bina Bhd, MMAG Holdings Bhd, and Revenue Group Bhd.

PNB rejects Sunway bid for IJM stake
Permodalan Nasional Bhd (PNB) has rejected Sunway Bhd’s voluntary takeover offer for its 13.5% stake in IJM Corporation Bhd. PNB said the decision followed an independent evaluation based on commercial considerations and its fiduciary responsibility to protect unitholders. Sunway proposed acquiring all 3.51 bil IJM shares at RM3.15 per share in a deal worth about RM11 bil, through a combination of cash and new shares. IJM’s independent adviser concluded the offer was not fair, noting the price represented a discount of 46.1% to 51.4% compared with the estimated value of IJM shares, ranging from RM5.84 to RM6.48. GLICs own about 45% of IJM as of Jan 31, 2026.

Shorts:

1. DBKL halves hawker rentals
   Kuala Lumpur City Hall will cut rental rates for hawker sites and selected premises by 50% from Apr 1, 2026 until Dec 31, 2027, a move expected to benefit more than 10,000 small traders. Announced by Minister in the Prime Minister’s Department (Federal Territories) Hannah Yeoh, the initiative aims to ease rising operating costs and help keep everyday food prices manageable for city residents.

2. Gulf residents eye MM2H
   Malaysia is seeing rising interest from citizens of Gulf countries in the Malaysia My Second Home (MM2H) programme, driven by the nation’s geopolitical neutrality and Muslim-majority environment. Most enquiries come from Saudi Arabia, the UAE, Kuwait, Bahrain and Qatar, including professionals, retirees and parents seeking education opportunities. The programme has already contributed RM3.87 bil to the economy, with potential for further growth.

4. AROUND THE WORLD 🌎

The energy crisis
Trump adviser: Neutralising Iran would remove "terror premium" on oil
White House adviser Peter Navarro, who leads the White House Office of Trade and Manufacturing Policy, said neutralising Iran could make crude oil much cheaper by removing the threat posed by Tehran. Navarro said the threat had imposed a “terror premium” that inflated global oil prices for decades. He said the threat of Iran added a premium of USD5 to USD15 (RM19.65 to RM59) per barrel to crude prices. This has drawn scepticism from energy market specialists, with an analyst saying there was no verifiable evidence of such a premium, and that Navarro’s 13-page report ignores the costs associated with military action against Iran.

Hormuz closure forces UAE shut-ins as Trump calls for aid
The UAE’s daily oil output is down by more than half as the effective closure of the Strait of Hormuz due to the Iran conflict has forced widespread production shut-ins. This follows the halt to oil loading operations at the UAE port of Fujairah due to a drone attack. Before the war, UAE state oil giant ADNOC exported just over 1 mil barrels of Upper Zakum crude, just under 700,000 barrels of Das Blend, and about 230,000 barrels from the Umm Lulu field per day.

While US President Donald Trump has called for aid in securing and reopening the Strait of Hormuz, it remains a tall task, as shipping lanes are just two nautical miles wide. Ships also have to make a turn near Iranian islands and a mountainous coast that provides cover for Iranian forces. Iran’s conventional navy may have been largely destroyed, but the Islamic Revolutionary Guard Corps still has plenty of options to threaten the shipping lanes, such as drones, mines, and even jet-skis packed with explosives. Escorting three or four ships a day through the strait is feasible in the short term, but doing so sustainably for months would require more resources.

So far, no US allies have any plans to dispatch warships to the area to aid in either securing the strait or escorting ships, other than the EU, which is bolstering a naval mission called Aspides in the Middle East. Aspides, which means “shields” in Greek, was established in 2024 to protect ships from Yemen’s Houthi rebel group in the Red Sea.

Closer to home, just how important is Selat Melaka?

Global conflict
Israel has plans for at least three weeks of war as it hammers Iran with airstrikes
Israel said it has detailed plans for at least three more weeks of war, even as its military launched airstrikes hitting sites across Iran overnight. This comes as the Iran war enters its third week with no clear end in sight. Israel has framed its aims as limited to weakening Iran’s capacity to threaten Israel by striking ballistic missile infrastructure, nuclear facilities, and the security apparatus. It said it still has thousands of targets to hit inside Iran.

Elsewhere in the Middle East, Hamas representatives have met envoys from Trump’s Board of Peace in an effort to safeguard the Gaza ceasefire, which has come under serious strain since the US and Israel began bombing Iran. Sources said Hamas warned the board that the Palestinian militant group could back away from its previous promises under the Gaza ceasefire if Israel maintained new restrictions on Gaza imposed during the Iran war.

Trump wants to finish Iran war before tackling Cuba
The president believes that US tensions with Cuba will soon come to an end through either a deal between the two countries or the US doing “whatever we have to do”. The Trump administration has been pressuring Cuba, imposing an almost total fuel blockade that has exacerbated the country’s already hours-long blackouts. While there is speculation about a possible military overthrow of Cuba’s Communist regime, Trump said that he wants to finish the war with Iran before dealing with Cuba.

Elsewhere in the Americas, Ecuador has deployed more than 75,000 police officers and soldiers to four of the country’s most violence-wracked provinces. A night-time curfew was also declared as part of the government’s new phase in its war on criminal gangs.

Business
BlackRock launches USD100 mil initiative to develop American skilled trades
BlackRock, the world’s largest asset manager, announced a USD100 mil (RM393.1 mil) philanthropic initiative to expand economic opportunity and power the next generation of America’s skilled trades workers. The initiative aims to reach 50,000 workers over the next five years. The Future Builders initiative, funded by The BlackRock Foundation, looks to address urgent labour needs by connecting workers to skilled trades training, supporting them through completion and licensure, and helping participants build long-term financial security. This tackles the country’s growing demand for workers in skilled trades. BlackRock estimates that America needs USD10 tril in infrastructure investment by 2033 to modernise ageing systems and build new energy, digital, and AI infrastructure.

Disney targets Southeast Asian fanbase with floating theme park
The House of Mouse has launched the massive new Disney Adventure cruise ship from Singapore that will serve as a floating theme park for fans in Southeast Asia. The Adventure is among the world’s largest cruise ships, with a gross tonnage of 208,000 metric tonnes and a passenger capacity of 6,700 people. Each cruise will last three or four nights, sailing around the South China Sea and other areas before returning to Singapore. Disney has operated its cruise business primarily in the US, and basing the Adventure in Singapore is an opportunity to introduce Disney to new audiences.
Fun fact: There’s no Disney resort in Southeast Asia but we nearly had one. The story here how Singapore nearly got a Disneyland.

This move comes as US cruise operators struggle with rising oil prices, with analysts warning that Carnival Corp will be the biggest loser. Cruise lines rely on heavy fuel oil and marine gas oil, among other fuel types, and turn to hedging to lock in prices via financial contracts and protect against sudden swings. Carnival is the only major US cruise line that does not hedge fuel.

Organisations worldwide race to develop "AI-free" label
Organisations around the world are racing to develop a label for “human-made” products and services as part of the growing backlash against AI use. This is in response to fears that jobs or entire professions are being swept away in a wave of AI-powered automation. However, with the many competing labels as well as confusion over the definition of “AI-free”, consumers are in danger of being left confused unless a single standard can be agreed on.

5. FOR YOUR EYES 📺

Today in science

1. Where the ocean meets the sky - how far is that actually? Not that far it seems. Read more on the maths here.

2. Truth or myth - pluck one white hair and a thousand more will appear?

3. The rationale behind using GPS collar trackers on animals despite the perceived discomfort, danger etc. and why the alternative, microchip, isn’t appropriate.