☕️ The impact of US-Iran war on Malaysia

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

USD550 bil (RM2.17 tril) – That is the estimated valuation of TikTok parent ByteDance, based on the sale of an equity stake in the Chinese tech giant by investment firm General Atlantic. This sale also marks the first stake divestment since the Trump administration cleared the sale of the US interests of ByteDance’s TikTok unit in January. The valuation is a 66% jump since a share buyback last year priced ByteDance at more than USD330 bil. General Atlantic first invested in ByteDance in 2017 when the company was valued at around USD20 bil. More details about the sale, such as the size of the stake, were not disclosed.

1.405 bil – China’s population fell for a fourth consecutive year to reach that level, a record low, and experts are warning of further decline. The country’s population dropped by 3.39 mil in 2025, a faster decline than in 2024. The total number of births dropped to 7.92 mil in 2025, down 17% from 9.54 mil in 2024. The number of deaths rose to 11.31 mil from 10.93 mil in 2024, marking a death rate of 8.04 per 1,000 people, the highest since 1968. China’s population has been shrinking since 2022 and is ageing rapidly, with people aged over 60 accounting for around 23%. By 2035, the number of over-60s is expected to hit 400 mil.

Around 8 years – That’s how long it took China’s largest cafe chain, Luckin Coffee, to reach 30,000 stores worldwide. That is six times faster than Starbucks, which took 48 years to reach the 30,000-store mark after opening its first location in 1971. Starbucks had a network of 41,118 locations at the end of 2025. Coincidentally, both brands opened their 30,000th store in Shenzhen. However, local competitors such as Luckin have forced Starbucks onto the back foot in China. As a result, the US coffee chain announced last year that it would sell 60% of its operations in China to a local investment fund.

3. IN MALAYSIA 🇲🇾

More than 60% of Malaysian exporters to be affected by Middle East tensions
A survey by the Malaysia External Trade Development Corporation (Matrade) found that more than 60% of Malaysian exporters are expected to be affected by the ongoing conflict in the Middle East. Many companies foresee disruptions in their supply chains, including shipment delays and higher shipping and insurance costs. The survey covered a mix of businesses, comprising 53.7% micro, small and medium enterprises, 32.7% mid-tier companies and 13.6% multinational corporations. Respondents also expressed concern over falling sales, order cancellations and rising raw material costs, particularly for plastics linked to crude oil. Around 39% of exporters currently send goods to the region, mainly to the United Arab Emirates and Saudi Arabia, prompting many to consider diversifying into other markets.

Matrade has also activated its offices in Dubai, Jeddah and Cairo to provide exporters with market updates and logistical support amid the ongoing Middle East tensions. Companies have been advised to explore alternative shipping routes, including the Port of Fujairah in the UAE and the Port of Salalah in Oman, as well as land-based transport where possible. Matrade chairman Reezal Merican said the survey underscores the importance of adopting more resilient and flexible trade strategies, such as virtual business-matching sessions through the agency’s Virtual eBizMatch platform. Matrade is also encouraging deeper intra-ASEAN trade under the ASEAN Trade in Goods Agreement (ATIGA), allowing exporters to redirect goods to nearby and more stable markets.

TPG weighs options for Asia OneHealthcare
The healthcare sector is getting hot. Private equity giant TPG Inc is reportedly exploring options for Asia OneHealthcare Sdn Bhd, including a sale or initial public offering, amid increasing deal activity for private equity-owned assets. Sources said the firm has consulted advisers working on Sunway Healthcare Holdings Bhd’s IPO to assess potential options. Early discussions have suggested that the Kuala Lumpur-based healthcare provider could be valued at up to RM30 bil if a deal proceeds. The discussions are still at an early stage, and TPG may also choose to keep its stake.

Asia OneHealthcare previously sold a group of hospitals to TPG and Hong Leong Group for USD1.2 bil (RM4.73 bil) in 2019, when it was still known as Columbia Asia Healthcare. The firm later grew organically and through acquisitions, with a notable deal being the RM5.7 bil purchase of a hospital unit owned by Ramsay Health Care Ltd and Sime Darby Bhd in 2023. Other Asia OneHealthcare shareholders include the Abu Dhabi Investment Authority and Malaysia’s Employees Provident Fund (EPF). TPG has also been active in other regional deals, including selling a majority stake in XCL Education Holdings Pte Ltd to KKR & Co for USD1.3 bil.

Malaysian athletes rewarded for gold medal wins
Malaysia’s 2015 and 2017 SEA Games women’s basketball gold medallists have each received a RM300,000 condominium unit, with an extra RM30,000 per unit for renovations, bringing the total value of the reward to more than RM6 mil. Nineteen recipients will benefit in total, comprising 16 players and coaches, as well as three long-serving Malaysian Basketball Association staff members: Chin Chai Ngor, Sim Sin Heng and Lee Kheng. The units are located at LEVIA Residence in Cheras. Association president Lee Tian Hock, who is also the founder of Matrix Concepts, said the reward honours the dedication and hard work of both the players and staff. He added that condo units will be offered again if the national team wins gold at the 2027 SEA Games, in a bid to encourage athletes to maintain winning standards.

This is not the first time private sponsors have offered prizes for gold medal athletes in Malaysia. For the 2024 Paris Olympics, private sponsors boosted the prize pool by RM2 mil to a total of around RM6 mil in cash and kind if a Malaysian won a gold medal. If the gold medal had been won in either the men’s doubles or mixed doubles, the medallists would have walked away with an extra RM1 mil, courtesy of their training sponsor.

Malaysiakini board: RM3 mil misappropriated, police report made
The management firm of news portal Malaysiakini, Mkini Group Sdn Bhd, has filed a police report after discovering that RM3 mil from its subsidiaries had been diverted to third-party entities suspected of running unlicensed investment schemes. The irregularities, which occurred between March 2023 and March 2024, were reportedly carried out by former key employees. The diversions went unnoticed as the audited accounts for 2023 and 2024 recorded the funds as fixed deposits with a licensed bank. An internal investigation, conducted with the help of independent legal counsel and financial consultants, uncovered the misappropriation. Following the findings, the board filed a police report and briefed management and staff. Steven Gan, Malaysiakini’s former editor-in-chief, described the incident as a heavy blow and said the company is determined to recover the funds and tighten oversight. Former CEO Premesh Chandran added that the diversion affected reserves built up over the past decade, but confirmed that core operations remain intact.

4. AROUND THE WORLD 🌎

US Senate fails to halt Trump’s war on Iran
Just when the world thought there was hope to end the Iran war, the US Senate failed to pass a resolution to stop US President Donald Trump’s war effort. The failed 47-52 procedural vote marks another major setback for opponents of Trump’s military pursuits abroad and underscores Republicans’ embrace of the president’s campaign. Under Article II of the US Constitution, presidents can only launch such attacks in self-defence in response to an immediate threat. Otherwise, Congress has the sole power to declare war. Under the 1973 War Powers Act, US presidents must seek congressional approval after committing US troops to military actions for more than 60 days. Alas, although there are no solid justifications for the war, Congress still lost the vote. But honestly, at this point, are these laws honoured anymore?

US will ‘rain missiles’, ‘death and destruction’ on Iran
The US is claiming an early victory for its campaign against Iran. Pentagon chief Pete Hegseth said that the US military is loosening the rules of engagement and operating with little restraint. He added that it was “never meant to be a fair fight”, saying the US is punching Iran while it is down, and that it is “exactly how it should be”. Responding to the statements, Iran’s Foreign Ministry spokesperson Esmaeil Baghaei said Hegseth’s remarks amounted to an admission of war crimes and crimes against humanity, referring to a “NAZI mentality that unleashes in cold blood, death & destruction on another nation just to ‘satisfy the desires’ of his boss”. While the US said it does not target civilians, a strike hit a girls’ school in the southern city of Minab on February 28, killing 165 people. The Pentagon said that it is “investigating” the incident. Iranian officials have reported many attacks by the US and Israel on civilian targets, including schools and hospitals, across the country.

US Military anti-narcotics operation begins in Ecuador
Meanwhile, Trump’s anti-narcotics operations continue in Latin America, now through a collaboration with Ecuador to combat “terrorists” in the South American country. The scope of the Ecuadorian operation is not yet known, but several US news outlets have reported that it is limited to supporting Ecuadorian troops through logistics and intelligence for the moment.

China in five years
Yesterday, President Xi Jinping unveiled a sweeping roadmap for the country’s economic and political future in a gathering with China’s political elite in Beijing. Details of the 15th Five-Year Plan were also presented, outlining goals for growth, budgets, industrial policy and defence. This is seen as a clear signal of Xi’s determination to propel China towards technological dominance.

However, the country also set its lowest economic growth target since 1991. The goal is a range of 4.5% to 5%, slightly below the 5% rate achieved in 2025. Analysts say Beijing’s new growth target reflects that it is “being realistic” as it deals with complex domestic challenges and a difficult global trade environment.

Others include accelerated efforts to “seize the commanding heights of science and technological development”, improve combat readiness and capabilities, and a USD44 bil (RM173.6 bil) injection into state-owned banks to guard against systemic risks and boost financing for technology companies. China also aspires to become a “childbirth-friendly society”, boost its food security and accelerate cuts in carbon intensity over the next five years.

While China might have lost two cheap oil sources this year, Iran and Venezuela, the country is positive that it is now far less dependent on fossil fuels, as it has for several years been transitioning to renewable energy.

Shorts

1. Feeling cute, might buy MacBook Neo

   Apple debuted the MacBook Neo yesterday. It is a colourful, lightweight laptop powered by iPhone-grade A18 Pro chip, making it the company’s most affordable laptop ever. Priced at USD599 (around RM2,360 - Malaysian prices here), the MacBook Neo is a budget MacBook that is a clear attempt to challenge Google Chromebooks and entry-level Windows machines that dominate classrooms and first-time buyer markets. The base model comes with 256 gigabytes of storage, while a version priced at USD100 higher doubles that capacity and adds Touch ID. It comes in attractive colours like indigo, blush, citrus and silver, with dual side-firing speakers. Apple also said it delivers up to 16 hours of battery life, and has a 13-inch display.

2. Are you ready for another ‘Game of Thrones’?

   The disappointment of Game of Thrones’ original series finale might still linger among fans, but something new is coming. The Seven Kingdoms, a prequel film to Game of Thrones, is said to have entered the development phase at Warner Bros, with screenwriting by Beau Willimon, whose previous credits include the political grit of House of Cards and the critically-acclaimed Star Wars spin-off, Andor. The narrative is expected to chronicle King Aegon Targaryen’s brutal and legendary conquest of Westeros. Meanwhile, HBO is also reportedly exploring a television series inspired by the same historical era.

5. FOR YOUR EYES 📺

1. Mr Money’s interview with fashion entrepreneur Christy Ng, the founder of fast-growing, RM300 mil fashion brand Christy Ng.

2. Legendary investor Warren Buffett stepped down as CEO of Berkshire Hathaway after six long decades, generating a return for shareholders of 6,100,000% (aka 61,000x). Greg Abel has stepped up to be the CEO and published first annual letter (read here) and highlighted 4 of Buffett’s most successful stock picks.

3. Weekend read - how China produces top talents, including the likes of ByteDance (TikTok parent) and Meituan’s founders. Full article here.