☕️ The USD1 bil unicorn growing and selling blueberries

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

35% – Homegrown music is gaining prominence in Indonesia's on-demand streaming market, reaching this share last year. This marks a significant 12 percentage point increase over three years, while the share of U.S. music declined to 26% and K-pop fell to 8%. Similar trends favouring local artists are evident in Thailand, indicating a growing appetite for domestic tunes across Southeast Asia. The broader Asian music market is projected by PwC to expand by approximately 20% to USD20.8 bil (RM91.33 bil) by 2028, highlighting the region's significant growth potential.

Nearly 70 years – The Searchers, a prominent Merseybeat band, will conclude their extensive touring history with their first-ever performance at the Glastonbury Festival. Formed in 1957, the Liverpool band, recognised as the “longest-running band in pop history,” achieved three UK number one hits. Their “Final Farewell Tour” will culminate at Glastonbury on June 27, marking their final ever show.

60% – A significant majority of general admission ticket buyers, representing this percentage, opted to utilise Coachella's payment plan system for the music and arts festival. This allowed attendees, among the estimated 80,000 to 100,000 who paid at least USD599 (RM2,600) for tickets, to secure their entry with an initial payment as low as USD49.99 to see headliners. Crazy how expensive entertainment has gotten.

3. IN MALAYSIA 🇲🇾

Malaysia and Indonesia agree on mutual halal certifications, but…
Deputy PM Ahmad Zahid Hamidi announced that both Putrajaya and Jakarta have agreed in principle to recognise each other's halal certifications moving forward. Labelling this decision as a ‘game changer’, Zahid said that now JAKIM’s halal logo can be used for halal products exported to Indonesia without requiring a separate SOP, and vice versa. This announcement was made during Zahid’s three-day official visit to Indonesia.

However, Malaysia may need to reconsider its decision to recognise Indonesia’s halal certification for goods imported to the country, as recently, JAKIM has ordered the immediate recall of several imported food products from Indonesia after tests revealed they contained porcine (pig) DNA. Interestingly, some of the products have been halal certified by Indonesia’s Halal Product Assurance Agency (BPJPH). To be fair, the matter was uncovered by BPJPH’s own investigation with another agency. Consumers are being encouraged to report sightings of the affected items through Jakim’s complaint portal here.

‘Bising-bising’ in court

Sapura family feud
In regard to the Sapura Holdings Sdn Bhd dissolution dispute, its founder, Shamsuddin Abdul Kadir, told the court that the company should still be considered as family-run, despite the inclusion of Rameli Musa, who is not a family member, as one of the shareholders. At the moment, Sapura Holdings is owned by Shamsuddin’s sons - Shahril and Shahriman (who both hold a 40.5% stake each), Brothers Capital Sdn Bhd (jointly owned by Shahril and Shahriman, controlling 15% of Sapura Holdings) and Rameli (owns the remaining 4%). The dispute started when Shahriman filed a petition to wind up Sapura Holdings to ensure fair asset distribution. However, the petition was then opposed by his brother Shahril, insisting that the firm is not a family company and would be unfair for the company to be wound up. Sapura Holdings is the parent company of more than 40 subsidiaries valued at RM832 mil. The group includes the listed entity Sapura Resources Bhd.

Kevin Morais murder: the doctor was the mastermind?
In the appeal against the death penalty sentence towards the alleged killers of Kevin Morais, Deputy Public Prosecutor Fuad Abdul Aziz told the Federal Court that one of the alleged killers, former military doctor Dr R. Kunaseegaran, was the mastermind behind Morais’ murder. Despite Kunaseegaran not participating in the crime, he did have a clear motive, as Morais had prosecuted Kunaseegaran on corruption charges previously. Fuad added that the other five appellants did not know Morais personally but received instructions from Kunaseegaran to execute the murder. Morais was reported missing on September 4, 2015, before his body was found in an oil drum filled with cement in Subang Jaya 12 days later.

Johor in the spotlight
Johor Investment, Trade, Consumer Affairs and Human Resources Committee chairman Lee Ting Han has announced that the Securities Commission (SC) has approved two family offices - CMY Capital Family Office and Yow Kee Family Office to be eligible for the 0% tax incentive, one of the perks of the Forest City’s Special Financial Zone (SFZ). The two family offices will be the pioneer family offices to operate within the Forest City SFZ. A family office is a private wealth management advisory firm that serves ultra-high-net-worth individuals (UHNWI).

Johor Menteri Besar Onn Hafiz Ghazi stated that after securing RM27.4 bil in new investments for 1Q2025, the state of Johor already has RM23 bil worth of projects in the pipeline for Apr alone. Onn Hafiz indicated that these figures signalled the increased confidence in the Johor-Singapore Special Economic Zone (JS-SEZ). Johor has set up the Invest Malaysia Facilitation Centre-Johor (IMFC-J) to reduce the red tape in approving investments, as what used to take up to 24 months from briefing to operations can now be achieved in just 13 to 14 months.

In the midst of the US snub, ‘Look East policy’ is alive and well
While most players are playing the ‘wait and see’ game amidst the ongoing US tariff armageddon, a China-based paper manufacturer, Zheijiang Jingxing Paper Joint Stock Co. Ltd, decided to double down on its investment in Malaysia by pouring RM1.9 bil into a phase two expansion of its operations in Banting, Selangor. The expansion will introduce advanced manufacturing lines supported by integrated thermal power, water treatment and wastewater management systems, bringing the Chinese firm’s total investment in Malaysia to RM3 bil. This new investment further develops the country’s paper manufacturing sector, which attracted RM877.9 mil in 2024.

A Japan-based advanced materials and component company, Ferrotec Holdings Corporation, is set to invest RM1 bil to expand its presence in Malaysia by constructing its second manufacturing facility in Kulim, Kedah. The second facility will create over 1,000 jobs and signal the company’s confidence in Malaysia’s semiconductor ecosystem. Cumulatively, including the new investment, Ferrotec has invested RM1.9 bil in Malaysia.

4. AROUND THE WORLD 🌎

Trump sends mixed signals — again

Trump to be "very nice" to China
The US president said there was no need to “play hardball” with Chinese President Xi, believing that, ultimately, China would “have to make a deal” to continue trading with the US. This comes after Beijing has indicated that Trump’s administration needs to rein in some members of its administration for disparaging remarks. Oh, Vance, your boss wants to make a deal with China, and you go ahead and call the Chinese “peasants”. Truly, wisdom chases you, but you run faster.

China tests Trump's patience over fentanyl
However, there is news that Trump’s patience is being tested by China due to the ongoing fentanyl talks, where US negotiators claim the Chinese are failing to negotiate in good faith and offering inadequate proposals. The US wants China to crack down on Chinese chemical manufacturers and sellers catering to the fentanyl trade, but China countered with concerns that over-regulation would stifle its burgeoning chemical industry, since the precursor chemicals for drugs also have legitimate uses. A US official has also warned that Trump could resort to more tariffs if he feels China is dragging its feet over the fentanyl issue. Hmm, that sounds like the opposite of “being nice” or “not playing hardball”. Truly, Trump has mastered the art of the deal by negotiating against himself with contradicting stances.

Chasing cars

Tesla earnings see 71% freefall
The EV maker is shying away from its previous positive sales growth for 2025, following a 71% freefall of its recent earnings to USD409 mil (RM1.8 bil) from USD1.4 bil in the same period a year ago. The earnings drop is being read as a sign that tariffs, an ageing vehicle lineup, and the political backlash against CEO Musk are having an effect on the Magnificent 7 company. Still, Tesla’s stock rose despite the results, as Musk announced that he will be “significantly” pulling back from his work with the US government starting in May.

Toyota makes USD2 bil (RM8.78 bil) EV investment in Shanghai
Meanwhile, Japanese automaker Toyota will be establishing a wholly-owned EV and EV battery plant in Shanghai worth USD2 bil, in a bid to build a bigger presence in the world’s largest auto market. The strategic cooperation agreement with the Shanghai government will see the plant established in Jinshan District, with the focus being the research and development, production, and sales of Lexus EVs and EV batteries.

Berry startup reaches USD1 bil (RM4.39 bil) valuation, backed by veteran investor Dalio 
Unicorn startup Fruitist, founded in 2012 as Agrovision, reached the USD1 bil valuation after reporting it has surpassed USD400 mil in annual sales, with over USD600 mil raised in venture capital. Among its backers is the family office of Bridgewater Associates founder and veteran investor Ray Dalio. Fruitist, known for its “snackable” long-lasting jumbo blueberries, is also reported to be considering going public as soon as this year, despite global trade conditions. CEO Steve Magami said the startup was created to solve the problem of the uneven quality of grocery store berries, which he blames on the business model of legacy produce players.

Shorts:

1. India launches major manhunt for Kashmir gunmen 
   Security forces are currently hunting a group of gunmen who opened fire on a crowd in the tourist destination Kashmir, killing at least 26 people and sparking global outrage. PM Modi, who cut short a state visit to Saudi Arabia, has decried the heinous act and pledged that the attackers will be brought to justice. Two interesting points. The attack happened a day after US VP Vance met Modi, and the gunmen were witnessed to be “clearly sparing women”.

2. Amazon next to slow down data centre plans 
   The tech giant is the next to ease off in the race to build AI data centres, following in the footsteps of Microsoft, with industry sources reporting that Amazon has paused discussions for certain new colocation data centre deals, especially international ones. This led to concerns being raised that hyperscalers are being more discerning with leasing large clusters of power.

3. Instagram's new feature helps you share those cringe reels 
   The new “Blend” feature lets you and your friend see each other’s Reels feeds, with Instagram catching on that users are DMing Reels back and forth between friends, rather than posting. Blend aims to facilitate this, but this also means that your Reels feed algorithm is now your personality. So, how have you been building your Reels feed?

5. FOR YOUR EYES 📺

1. Choir version of traditional Kelantanese music, Eh Wau Bule. Beautiful.

2. KPI: Keep Pretending It’s Important. Corporate acronyms in reality.

2. Trailers out:

   • Malaysia’s Batman - Keluang Man

   • Netflix’s Wednesday Season 2