☕️ Selangor Royal dilemma - Tengku Zafrul says decree not binding, Tony Pua says follow law and constitution, but not decrees

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

USD28.3 mil (RM99.25 mil) a year – Star footballer Lionel Messi remains the highest-paid player in Major League Soccer, earning that amount annually at his current club, Inter Miami. Messi recently signed a contract extension with Inter Miami, which will keep him at the club through the 2028 season. Messi’s salary is also more than double that of the next-highest-paid player, Son Heung-min. Son, who signed with Los Angeles FC last Aug, has a base salary of USD10.36 mil, with a total guaranteed compensation of USD11.2 mil.

14-1 – Football team Johor Darul Ta’zim (JDT) scored a total of 14 goals in their recent match against Kelantan’s The Real Warriors, capping a stellar season for the club. Not only did the victory secure JDT’s 12th consecutive Super League title with an unbeaten run, the team also matched the world record for most unbeaten league matches at 108. The team now shares that distinction with the Ivory Coast club ASEC Mimosas, which established the record in 1994.

10 seconds to disaster – In a recent match between Al-Nassr and Al-Hilal, the top two teams in the Saudi Pro League, Cristiano Ronaldo, who captains Al-Nassr, could only watch in dismay as Al-Hilal celebrated an own-goal by Al-Nassr keeper Bento in the final 10 seconds of the match, ending it in a 1-1 draw. Winning the match would have secured the league title for Al-Nassr. Still, Ronaldo’s team currently holds a five-point advantage with one round left in the league standings. However, the draw has left Al-Hilal with a slim chance of snatching the title for themselves.

3. IN MALAYSIA 🇲🇾

The Selangor Royal dilemma
Pakatan Harapan (PH) politicians are contradicting themselves when it comes to the decree issued by the Selangor Sultan Sharafuddin Idris Shah, which advised all Selangor assemblymen, especially Seri Kembangan assemblyman Wong Siew Ki of DAP and former Selangor executive councillor Ronnie Liu Tian Khiew, to visit Dataran Selangor twice a month to read and understand the Rukun Negara displayed. The decree was not unprompted but stemmed from the kerfuffle over Selangor’s proposed large-scale pig farming project in Bukit Tagar. While the statement given by the Selangor King is noticeable, the responses by the politicians are even more interesting -

Selangor MB warns against ‘selective loyalty’
Selangor MB Amirudin Shari warns others not to disregard the Selangor ruler’s views, even when they conflict with their respective political interests. He added that one should not sow hatred between races or question the framework of the Constitution for political gain.

Tengku Zafrul said the decree is not binding
Former minister and a current PKR member, Tengku Zafrul Abdul Aziz, said that the Selangor ruler’s remarks should not be misconstrued as a binding decree or political interference. Tengku Zafrul added that the Selangor sultan’s words should be seen as a call to bring the people closer together, strengthen harmony, and distance the state and country from a political culture that divides society to achieve a narrow agenda.

Tony Pua said Malaysia practices a constitutional monarchy system
Soon after the Selangor Sultan issued the decree, DAP veteran Tony Pua stated via a Facebook post that he is loyal to the king and country and will abide by the rule of law based on our supreme Constitution but not decrees. His statement was not received well by many parties, as some 59 police reports have been lodged against him nationwide. The Selangor police chief, Comm Shazeli Kahar, said that investigations are being conducted and Pua will be called in to give a statement.

Business news
Batu Kawan Bhd acquires a substantial stake in MKH Bhd
Batu Kawan Bhd through its wholly-owned subsidiary Ehitmore Holdings Sdn Bhd will spend RM549.8 mil or RM2 per share to acquire a 47.7% stake in MKH Bhd. With that, Batu Kawan also triggered the mandatory general offer (MGO) of RM2 per share for MKH, with the intention to privatise the company should it secure a 90% stake. Additionally, MKH and its subsidiaries collectively hold a 65.3% stake in MKH Oil Palm (MKHOP). When the proposed MGO for MKH becomes unconditional, Batu Kawan will be obliged to undertake an MGO for MKHOP at 64.78 sen. However, the group intends to maintain MKH Oil Palm’s listing on the Main Market. The acquisition, including the 47.7% stake purchase and MGO, will cost Batu Kawan up to RM1.15 bil and it will be funded by bank borrowings.
Fun fact: Batu Kawan controls one of the nation’s largest oil palm plantation companies, Kuala Lumpur Kepong Bhd (KLK - market cap of RM22.5 bil)

Transport Ministry - three Borneo air routes not Public Service Obligations (PSO)
After the Sarawak State Government blamed Putrajaya for the absence of AirBorneo flight services for the Kuching-Sibu, Kuching-Miri and Kuching-Bintulu routes, the Transport Ministry said that the three routes do not meet the criteria under the definition of Public Service Obligations (PSO), as the routes are also commercially operated by AirAsia or Malaysia Airlines and between two major cities. Thus, flights on these routes should not receive subsidies, similar to any inter-city flight in Peninsular Malaysia.

MOT added that if AirBorneo wants to operate the three routes, the company can submit applications to provide flight services on a commercial basis and not as PSO. In Malaysia, Public Service Obligations (PSO) refer to government-mandated requirements for companies to provide essential services to remote or economically non-viable areas in exchange for state subsidies.

Shorts:

1. US denies ‘campur tangan’ in Norway’s cancelled missile sale to Malaysia
   Washington denied claims that the US played a role in Norway’s decision to cancel a missile sale to Malaysia, as the missile contains American-made components, placing them under US export restrictions. Washington reiterated that it supports the acquisition of the missile by Malaysia. Based on the statement given by the chargé d’affaires of the US embassy in Malaysia, David H Gamble, the United States facilitated the integration of necessary guidance components for NSM to Kongsberg in 2024 to ensure delivery of the system to Malaysia. Previously, Norway cancelled the USD146.4 mil (RM580.1 mil) deal due to tightening oversight of its defence technology in response to major shifts in European and global security, despite Putrajaya having paid 95% of the contract value.

2. NFA on IJM Chairman
   The Malaysian Anti-Corruption Commission (MACC) new chief commissioner, Abd Halim Aman stated that the MACC’s investigation into IJM chairman Krishnan Tan had been classified as ‘no further action’ after finding no elements of criminal conduct, misconduct or breaches of corporate governance. Krishnan Tan was previously accused of laundering RM2.5 bil in funds. In a separate matter, Abd Halim said that the investigation related to Sunway Bhd’s bid to take over IJM Corp Bhd is still ongoing, even though two months ago, Sunway claimed that it had received formal notification from MACC that the company did nothing wrong.

3. No by-elections for Pandan and Setiawangsa
   After former ministers Rafizi Ramli and Nik Nazmi Nik Ahmad vacated their parliamentary seats, Election Commission (EC) chairman Ramlan Harun has confirmed that no by-elections will be held for the Pandan and Setiawangsa parliamentary seats. His statement is also supported by the Dewan Rakyat Speaker, Dr Johari Abdul, in line with Article 54(1) of the Federal Constitution. A casual vacancy doesn't automatically trigger a by-election once the current parliamentary term has already crossed the three-year mark. GE15 was held in Nov 2022, so Parliament passed that threshold in Nov 2025. There is, however, a discretionary escape hatch. Under the second provision of Article 54(1), the Speaker can still notify the Election Commission that a by-election is necessary if the vacancy affects the numerical strength of the ruling majority.

4. AROUND THE WORLD 🌎

SpaceX Specials
SpaceX files for historic USD75 bil IPO
Elon Musk’s SpaceX has filed for the largest-ever initial public offering (IPO) which would eclipse the USD29.4 bil (RM116.49 bil) IPO record set by Saudi Aramco in 2019. The company targets a staggering USD75 bil in its listing, at a valuation of more than USD2 tril.

Interestingly, SpaceX’s S-1 paperwork, a required step before an initial public offering, lays out a sweeping vision for Musk's future space empire. Parts of it read like a sci-fi manifesto, with a blueprint for an extraterrestrial economy that includes:

• Point-to-point travel on Earth

• Space tourism

• Passenger and cargo transport to the moon and Mars

• Energy production on the moon and Mars

• Manufacturing on the moon and Mars

• In-orbit manufacturing

• Asteroid mining

Much of the sci-fi-like technology SpaceX detailed is "unproven" or does not yet exist, so they have been excluded from formal market estimates because their timing and scale are uncertain. Still, SpaceX said they could one day represent "multi-trillion-dollar economic opportunities."

Flying from Kuala Lumpur to Kuala London under an hour - SpaceX shows the future:

First trillionaire in the making
The filing also revealed billions in losses and a super-voting share plan that will allow Musk to keep the rocket, satellite and AI giant under his control. Based on the implied share count in the filing, Musk's two performance awards could be worth roughly USD737 bil if fully vested. Also, as the Chief Technical Officer and Chairman of the board, Musk holds 85.1% of the combined voting power on company matters, based on his 5,569,053,075 shares.

A solid revenue stream: SpaceX has recently inked a deal with Anthropic, which agreed to pay USD1.25 bil a month (USD15 bil per year) through May 2029 for SpaceX's Colossus and Colossus 2 data centres to run tools for Anthropic’s growing customer base. SpaceX expects more similar deals in the future.

Collateral wins from the IPO: Antonio Gracias, one of Elon Musk's oldest friends and closest business allies, is said to be gaining a massive multi-billion-dollar windfall from SpaceX's IPO. Gracias owns more than 500 mil shares of SpaceX stock through investment firms affiliated with his private equity firm, Valor Equity Partners. Based on a conservative estimate, those holdings would be worth roughly USD91.6 bil.

Shorts:

1. NVIDIA shares slide despite USD58.3 bil profit
   NVIDIA has delivered another huge quarterly profit and a sales outlook that topped analyst estimates, with its first-quarter profit hitting USD58.3 bil (RM231.01 bil) on revenue of USD81.6 bil (71.4% net margins!). The company also announced a USD80 bil share buyback programme. However, NVIDIA shares fell 1.3% in extended trading on May 20 after a lukewarm investor reaction, as some investors are not convinced that its AI computing sector will endure into 2027 and 2028. NVIDIA now faces growing competition across Silicon Valley, with Advanced Micro Devices (AMD) having rival processors, and Broadcom and Alphabet’s Google are attacking the market with their own technology.

2. Lawsuit over, OpenAI to file for IPO soon
   ChatGPT creator OpenAI is reportedly working with Goldman Sachs and Morgan Stanley on a confidential IPO filing as soon as May 22, now that the lawsuit filed by Elon Musk has been rejected by a jury. OpenAI has been laying the groundwork to go public as soon as 2026 as part of a broader effort to raise more capital and pay for its costly push for more chips, data centres and talent. The IPO could value the company at as much as USD1 tril (RM3.96 tril).

3. Pizza Hut's franchisee sues the company for a problematic AI system
   Franchisee Chaac Pizza Northeast has filed a lawsuit against Pizza Hut and accuses it of forcing stores to adopt its new AI system, Dragontail, which has apparently turned what was once a speedy delivery system into a “cold, late-arriving mess”. The AI system is a delivery-management platform that Pizza Hut described as using AI to "optimise" food delivery, but Chaac alleges the system caused "cascading operational breakdowns and customer dissatisfaction". Chaac said that the fallout exceeded USD100 mil (RM396.24 mil) in lost business and enterprise value, and is seeking more than USD100 mil in damages, plus attorneys' fees and other relief.

5. FOR YOUR EYES 📺

KYF - Know Your Food

1. 1 base product - milk. X derivatives.

2. Turns out, some types of sugar can be healthy (relatively).

3. KYC - know your coffee beyond the standard latte, americano, capuccino.

Build your dreams. Make flying carpets. Have a good weekend!