☕️ SST u-turns di sana sini

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

Prime Minister Anwar Ibrahim has achieved a positive approval rating of 55%, according to a recent survey conducted by research firm Merdeka Center in May. This notable increase is attributed to a perception among Malaysians that the country is on more stable ground, with easing political turbulence and Anwar now leading a government with a two-thirds parliamentary majority. The survey, which polled 1,208 registered voters across various ethnic groups, also reported that the federal government's approval rating stands at 50% as of May, a significant improvement from just 40% in June last year. Merdeka Center highlighted Anwar's efforts in enhancing Malaysia's global profile, citing instances such as his hosting of Chinese President Xi Jinping and Malaysia's upcoming chairmanship of ASEAN in 2025, as factors contributing to his bolstered image both domestically and internationally.

India has rapidly emerged as the world's second-largest market for air conditioners in 2024, surpassing Japan for the first time. Demand in India reached 11.94 mil units, outstripping Japan's 10.18 mil units, according to data from the Japan Refrigeration and Air Conditioning Industry Association. China remains the global leader, with its demand of 47.44 mil units in 2023 accounting for roughly a third of the worldwide total. This surge in India is particularly striking given that its market was only about half the size of Japan's in 2019, with 5.87 mil units sold. The increased adoption of air conditioners in India, one of the world's hottest countries with temperatures recently topping 50°C, reflects a shift from viewing them as a luxury to a necessity, driven by extreme heat and rising incomes.

The number of people forcibly displaced by war and persecution globally surged to over 122 million by the end of April 2025. This grim record, confirmed by the U.N. refugee agency (UNHCR), reflects a failure to resolve protracted conflicts, particularly in Sudan, Myanmar, and Ukraine. Filippo Grandi, the UN High Commissioner for Refugees, reported that global displacement increased by over 2 mil people compared to the previous year, despite nearly 2 mil Syrians returning home after the collapse of Bashar al-Assad's rule. This mounting crisis is exacerbated by a severe funding shortfall, with aid for refugees having fallen to levels last seen in 2015, leaving millions more vulnerable and without adequate support.

3. IN MALAYSIA 🇲🇾

SST u-turns di sini sana

Apples and oranges are now exempt 
According to a few sources, after much public outcry, apples and oranges will be exempt from the sales and service tax (SST) to provide healthy options to low-income groups. Apart from apples and oranges, mandarin oranges and dates will also be off the SST list. However, it is still unclear whether the exemption will be extended to other imported fruits.

Beauty services are off the board of stuff to tax 
After carefully considering public and industry feedback, beauty services including manicure, pedicure, facial services, barbers and hairdressers will also be exempt from being SST-ed. Additionally, Putrajaya also increased the annual income threshold for companies offering leasing/rental services or financial services, from RM500,000 to RM1 mil. This means that companies that offer such services and earn less than six figures per annum will not have to incur the SST charge.

Gold also off the SST hook
Treasury Secretary-General Johan Mahmood Merican announced that, due to cultural and economic reasons, gold will also be exempt from SST. This is because gold is often used as a medium for investment or savings. Apart from that, from a cultural perspective, gold plays an important role in various communities, often given as symbolic gifts or blessings during significant life events such as the birth of a child or weddings.

Body count for politicians involved in the Sabah mining license scandal has risen to 15
According to MalaysiaKini, allegedly, another six politicians from two local parties have been linked to the Sabah mining license scandal. It was mooted that the total bribes given to the six individuals amounted to RM3.96 mil. The source had further alleged that one of them received the highest amount of RM1.78 mil, followed by two who received RM600,000 each. The other three allegedly received RM530,000, RM300,000 and RM150,000. So, respectively, if they purchased a car with their alleged bribe money, one can buy from a Honda Civic up to a Rolls-Royce Cullinan. Imagine being willing to risk your reputation and jail time for a Honda Civic.

In responding to the scandal and in an attempt to make itself relevant, Sabah UMNO's strategic communications Rosman Ahir Zaman described the scandal that allegedly linked 15 politicians from the ruling Gabungan Rakyat Sabah (GRS) as nothing short of ‘madness’ and a ‘cancer’ towards the Sabah state government. Perhaps Rosman forgot that in a not-too-distant past, Sabah UMNO chief Bung Mokhtar Radin himself was embroiled in a corruption case related to Felcra.

While we are on the topic of corruption, the Malaysian Anti-Corruption Commission (MACC) is aiming for a bonanza year, targeting the forfeiture of at least USD1 bil (RM4.23 bil) worth of assets owned by the late Daim Zainuddin, which are housed in five other countries. MACC plans to send a restraining order request to the respective countries using the Mutual Assistance in Criminal Matters Act 2002. The agency will work with foreign authorities to obtain more information, such as the source of funds and a money trail analysis.

Island trouble

Pulau Perhentian: Three dead, including two children, died in the waters off Pulau Perhentian, Terengganu, when the boat they were on capsized due to bad weather. Based on initial investigations by the police, all fifteen individuals who were on the boat did not wear life jackets. The driver of the boat, in his 20s, tested positive for drugs and has five records for drug-related offences, was detained to assist the investigation.

Pulau Tioman: Further down south at Pulau Tioman, Pahang, a Universiti Tun Hussein Onn Malaysia (UTHM) lecturer who was reported missing while diving, was finally found safe. Rompin police chief Superintendent Sharif Shaif Mondoi said the lecturer, identified as Eliza M. Yusup, was swept by the current about 1.4 kilometres away from her original location before swimming to safety just 30 minutes before midnight. The lecturer was reported missing around noon the same day.

PSA — to those who intend to do sea activities off the coast of Terengganu, please do be careful, as the Malaysian Meteorological Department (MetMalaysia) reported that frequent rain and thunderstorms will hit Terengganu and the East Coast states from yesterday until this Saturday.

Shorts

1. 36 Bangladeshis linked to a foreign militant network arrested 
   Home Minister Saifuddin Nasution Ismail announced that the Malaysian police have squashed a foreign militant network operating in the country via the arrest of 36 Bangladeshis. The militant group is said to promote radical activities based on extremist beliefs and violent ideology. Saifuddin Nasution added that the group had also established recruitment cells within their own community to indoctrinate radical beliefs, raise funds for terrorist activities, and work to overthrow the legitimate government in their home country.

2. Border Control & Protection Agency (AKPS) finally has a head 
   Bukit Aman Criminal Investigation Department (CID) director Comm Mohd Shuhaily Mohd Zain will be the new director-general of AKPS, under a two-year term, effective tomorrow. In return, Johor police chief Comm M. Kumar has been tapped to succeed Comm Mohd Shuhaily as CID Director. Announced during Budget 2025, AKPS will be the sole agency in charge of safeguarding the country’s border, with an initial allocation of RM24.9 mil. At the moment, Malaysia has 114 entry points across the country.

4. AROUND THE WORLD 🌎

Eyes Back on Gaza

Trump: Predicts ceasefire soon, calls Israeli PM a “Great Hero”
In a recent interview with reporters, Trump made a surprising statement that he believes a ceasefire in Gaza between Israel and Hamas could be reached within a week. But there weren't many details about it. Reporters are saying that the talk of a ceasefire increased exponentially after the ceasefire between Israel and Iran. The Trump administration advocates for Netanyahu to agree to some sort of ceasefire in exchange for normalisation deals with Arab states, which the Israeli PM is really not very keen about. Hamas, on the other hand, requires that Israel stop its war and withdraw from areas it seized in Gaza after breaking the last ceasefire in March. Also, naturally, for Israel not to break the ceasefire again.

Please forgive Netanyahu?
Meanwhile, in another statement, Trump called for Israel to pardon Netanyahu or cancel his corruption trial, calling him a Great Hero, who has done “so much for Israel”. Note that Netanyahu was indicted in 2019 in Israel on charges of bribery, fraud and breach of trust – all of which he denies. The trial began in 2020 and involves three criminal cases. He has pleaded not guilty. At this point, it would be mind-boggling for anyone to forgive this war criminal, really.

Slaughter masquerading behind humanitarian aid
The statement of a possible ceasefire came amid a report by Israeli newspaper Haaretz saying that the Israeli soldiers were ordered to shoot at unarmed Palestinians seeking humanitarian aid at the sites run by the scandalous Israeli-and United States-backed Gaza Humanitarian Foundation (GHF). The revelation triggered international condemnation of the Israeli army. At least 549 Palestinians have been killed and 4,066 injured while waiting for food aid distributed at the sites, as reported by the Gaza Government Media Office. Medical charity Doctors Without Borders (MSF) branded the situation as “slaughter masquerading as humanitarian aid”. How much more dystopian can this situation be?

Auto: Uber, Tesla in the news

It’s an Uber world: Sneakily takes more cut, might also buy Pony.ai
Uber is doing all it can to strengthen its position in the ride-hailing market, but could it be at the expense of its drivers? A recent study by academics at the University of Oxford and the non-profit gig worker organisation Worker Info Exchange (WIE) had disclosed that many Uber drivers have earned “substantially less” an hour since the app introduced a “dynamic pricing” algorithm in 2023, which is said to adjust trip prices in real time based on several factors.

The new system has resulted in Uber taking a variable cut, or “take rate”, of 29% of a fare on average, rising to more than 50% in some cases. The 29% figure appears to correlate with disclosures within Uber’s latest quarterly results figures, which show that the company made USD1.2bil of income from its operations in the first three months of this year. Meanwhile, the WIE estimates that UK Uber drivers lost out on USD1.6bil in pay, as a result of Uber increasing its share of the fare, during the 12 months to March 2025. For context, the report analysed a mass of data relating to 1.5mil trips provided by 258 UK Uber drivers. More details in the report here.  

Separately, Uber is also said to be in talks to acquire the US subsidiary of a Chinese autonomous vehicle company Pony.ai. Interestingly, its partner in this deal is Uber’s co-founder, who was forced out in a boardroom coup 8 years ago. Pony.ai has its main presence in China and has permits to operate robot taxis and trucks in the US and China. It went public in 2024 in the US, raising USD260mil in a share sale. Its market capitalization stands at around USD4.5bil.

New Tesla Model Y delivers itself to its customer
Elon Musk enthusiastically announced Tesla’s latest achievement on X as it accomplished a major self-driving milestone: Its first fully autonomous Model Y drove itself to its new home in Texas. Tesla’s engineer informed that the Model Y achieved a maximum speed of 72 miles per hour (116 km/h) on the highway. While Musk might consider this a first for an autonomous car, self-driving freight trucks from Aurora have actually been operating in Texas since early May, including traversing Interstate 45, where the typical speed limit is between 70 and 75 miles per hour. Autonomous cars company Waymo were granted regulatory approval to start testing its driverless capabilities on freeways in 2024, but its robotaxis can't take riders on the highway yet as testing is still underway.

Shorts

1. Trump says he is ending Canada trade talks

   Trump has put an abrupt end to the ongoing trade talks between the two North American nations, citing that the reason for it is the enforcement of an unprecedented 3% digital services tax by Canada. He also said that he would announce new tariffs on goods crossing the border within the next week. The said Canadian tax will cost American digital companies such as Amazon, Apple and Google, more than USD2 bil a year, even if they are not really present physically in the country. The US is Canada's top trade partner, buying more than USD400bil in goods last year under a longstanding free trade agreement.

2. Guizhou half-submerged for the second time in a week

   The city of Rongjiang in China’s southwestern Guizhou province continues to battle with massive flooding, after heavy rain struck the province again and caused it to flood for the second time this week. The flooding earlier this week had left six dead and forced more than 80,000 people to flee their homes. More than 40,000 residents had been urgently evacuated following the second flooding. Rongjiang is located at the confluence of three rivers and is home to 300,000 residents. The peak water level in the rivers earlier last week reached 256m, the highest since 1954. View the submerged city here. Worried that this could happen to KL one fine day. 
   In other news, watch a drone rescuing a man trapped in floodwaters here.

3. A Norwegian royal suspect

   The stepson of Norway’s future king, Marius Borg Høiby, is now a suspect of 3 rapes and 23 other offences, according to a 10-month investigations by the Norwegian police. Høiby, 28, does not have any royal title or official duties, and was arrested on Aug 4 last year on suspicion of assault. Amongst the offences police said Høiby was suspected of were four counts of sexually offensive behaviour, one count of abuse in a close relationship and two counts of bodily harm. His case has now been handed to the prosecutors, who will decide whether to press charges. Royalty should never mean immunity. View his photo here. Don’t judge a book by its cover - but sometimes, there’s an exception right?

5. FOR YOUR EYES 📺

1. Once a long while ago, Jordan, Lebanon and Kuwait hosted Palestinians, providing them refuge from Israel. Didn’t turn out too well for the hosts later on, resulting in chaos. Interesting history, another perspective on why Arab countries do not want to accept all Gaza refugees, but not the fault of the refugees.

2. Discovered 101 new ways to use the treadmill thanks to athletes.

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