☕️ Trump announces 90-day pause for some countries, dials it up for China to 125%

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

881 underaged marriages in three years – From 2022 to 2024, 881 underaged marriages were registered in Malaysia’s Syariah courts, with 518 girls and 363 boys involved, according to Senator Dr Mohd Na’im Mokhtar. The top states for such marriages were Kelantan (193), Selangor (133), Kedah (126), Terengganu (115), and Johor (73). Notably, 2024 saw the lowest number of child marriages at 52, a significant decline from 512 in 2023. The Syariah Court conducts thorough assessments before approving underaged marriages, reflecting efforts to address this sensitive issue.

USD3.3 mil (RM14.6 mil) – The world's most precise clock, the "Aether clock OC 020," has been launched in Japan, boasting unparalleled accuracy. This strontium optical lattice clock, capable of maintaining time within a one-second deviation over 10 bil years, is 100 times more accurate than current caesium atomic clocks. Manufactured by Shimadzu Corp., this compact, 250-litre device represents a significant leap in timekeeping technology.

If you have been dollar-cost averaging your investments — research by the Wall Street Journal shows that there is a 0.4 percentage point advantage – Dollar-cost averaging, while slightly outperforming a fixed-share strategy annually over long periods, presents a nuanced picture for investors. Specifically, over a 20-year horizon, dollar-cost averaging achieves 6.93% annualized returns compared to the fixed-share strategy's 6.53%. However, this strategy underperforms during market downturns, highlighting the importance of considering market cycles when choosing an investment approach.

3. IN MALAYSIA 🇲🇾

468 years in jail, RM180 mil fine, three strokes… and no mention of house arrest
A former Sarawak Welfare Department financial administrative assistant, Mohd Zairull Arzuan Mohd Shamsuddin Ja’afar was sentenced to a crazy platter of punishments - 468 years in jail, RM180 mil fine in default 36 months’ jail and three strokes of rotan after he pleaded guilty to all 39 charges of money laundering and criminal breach of trust (CBT) involving over RM16 mil. As the jail sentences will run concurrently, Mohd Zairull will spend at least 12 years in jail depending on whether he will be able to pay the RM180 mil fine, failing which he will need to complete another three years behind bars. How did this squirrel fall from the tree when over RM4 mil was being credited into his account based on his salary statement? While embezzlement of RM16 mil led to triple digits figure in jail time, another former leader enjoys the possibility of a house arrest after allegedly siphoning off billions of Ringgit from public funds.

Littoral good news
Turkish STM Defence is set to complete the ships of the Littoral Mission Ship Batch 2 (LMSB2) project by the middle of 2026 before handing over the completed and tested ship to the Royal Malaysian Navy at the end of 2027. The cost for the three ships of LMSB2 is about RM2.76 bil and it will be completed within a 3.5 years timeframe. Quite outstanding for the Turks to complete this feat because if we compared it to how our local shipbuilder fare, after more than a decade and RM1.4 bil spent, the Navy still has not received its first littoral combat ship (LCS).

Trump Tariffs - the Malaysian response

• BNM won’t cut OPR to address Trump tariffs
  BNM governor Abdul Rasheed Ghaffour told Bloomberg TV that the central bank has no plans to cut its overnight policy rate (OPR), in light of the crash and burn created by the new Trump tariff. Abdul Rasheed added that monetary policy is not the best tool to resolve trade wars and as a country, we have to rely on broader economic tools. BNM has kept the policy rate at 3% since May 2023.

• Putrajaya to discuss Trump tariffs on Monday
  Communications Minister Fahmi Fadzil stated that Putrajaya will wait until next Monday to give the kata putus on how to respond to the new tariff, as the ASEAN trade ministers are meeting this week. Consequently, a request for a diplomatic delegation and trade discussion will be made to Washington to negotiate a better deal for Malaysia and Southeast Asia as a whole. At the moment, finance ministers and central bank governors convened in Kuala Lumpur for the 12th ASEAN Finance Ministers and Central Bank Governors’ Meeting (AFMGM) from Apr 8 until Apr 10.

How to make our economy resilient:

• Investing in border regions
  PM Anwar Ibrahim stated that Malaysia is committed to investing in regions bordering its ASEAN neighbours to boost its economic growth. Among the border regions mooted are of course the Johor-Singapore Special Economic Zone and the border areas in the northern peninsula with Thailand and the Sabah-Sarawak border area with Kalimantan, Indonesia. PM Anwar said that two main factors in making border regions successful are lowering barriers and coordinating policy between two economies. PM Anwar lauded that over nearly six decades, ASEAN has withstood wars, crises, and coups, and still managed to inch forward, often frustratingly, but forward nonetheless, exuding his confidence in ASEAN to survive the Trump 2.0 presidency.

• Promoting medical tourism 
  Putrajaya is looking to further anchor Malaysia’s position as the region’s hospital moving forward. According to the Malaysia Healthcare Travel Council (MHTC), in 2023, more than 1 mil healthcare visitors checked into Malaysia’s healthcare institutions, spending almost USD500 mil (RM2.25 bil). In 1Q2025 alone, 1.52 mil international patients have been admitted, in line with the country’s goal to pocket USD2.7 bil (RM12.1 bil) by the end of the decade. Medical tourists coming to Malaysia now do not just hail from the traditional markets of Indonesia and China but also South Asia, the Middle East and even Europe.

Updates from the foreign relations column

• New British High Commissioner to Malaysia
  Career diplomat and former envoy to Iran and Qatar, Ajay Sharma has been appointed as the British High Commissioner to Malaysia. According to the statement by the High Commission flying the Union Jack at its office, during his 30-year career as a diplomat, Mr Sharma has been involved in several international negotiations, including as the UK Representative for a Cyprus Settlement 2021-2022 and as the Deputy Negotiator for the Iran Nuclear Deal (JCPOA). The former British High Commissioner to Malaysia, Alissa Terry, is promoted to become the private secretary (foreign affairs) to the UK Prime Minister Keir Starmer.

• President Xi is coming to Malaysia
  In the midst of a chaotic world, where countries are looking to move away from the US, Putrajaya announced that China President Xi Jinping will make an official visit to Malaysia from Apr 15 to 17. According to reports, Xi will embark on a Southeast Asian tour where he will visit two other nations—Vietnam and Cambodia. China is our largest trading partner for the 16th consecutive year since 2009 where our trade figure (export plus import) is at a whopping RM484.12 bil in 2024, representing 16.8% of Malaysia’s total trade. So, looking at the current dynamic, Malaysia is slated to move closer to the East.

4. AROUND THE WORLD 🌎

Trump Tariff Trauma

Trump gets his behind kissed as tariffs land
As the threatened Liberation Day tariffs came into effect, Trump acknowledged that the fallout from the decision has been “somewhat explosive”, but said money was “pouring in” because of the tariffs. Still, during his address at a Republican Party dinner, Trump shared that over 70 countries have contacted the Trump administration. He told the audience about how the countries were “dying to make a deal” as they were “calling us up, kissing my ass”.

China slapped with 104%, retaliates with 84%
China, which Trump believes will still try and contact him for a deal, has been hit with a whopping 84% reciprocal tax, making it a total of 104% when including the pre-existing 20%. In retaliation, Beijing has imposed an 84% tariff on US goods, marking the latest salvo in the US-China trade war. China has also filed a complaint with the World Trade Organization, warning that the situation has “dangerously escalated”.
Quick update: Trump announced earlier a 90-day pause on the full effect of tariffs for some countries, but dialled it up for China to 125%.

Is soy the answer? 
The EU, which saw a 20% tariff, will retaliate by targeting US aluminium and steel products, as well as American agricultural exports such as soybeans. These beans are identified as a “cornerstone of the US agricultural industry” and one of said industry’s largest revenue earners, with more than 500,000 soybean producers in the country. Of note is that the US is the world’s second-largest exporter of the crop, and contributed USD27 bil (RM121.39 bil) of US annual exports in 2023. The retaliation from China and the EU in targeting the segment has already been felt, with US soybean farmers calling for Trump to remove tariffs on China, the EU, and other top markets.

TSMC threatened with 100% tax
Another industry marred by the shadow of Trump is the semiconductor industry, more specifically for Taiwanese chipmaker TSMC. The US president told the company that it could either build its plants in the US or pay a “big tax” of up to 100%. It should be noted that TSMC had already revealed plans to make a fresh USD100 bil (RM449.6 bil) investment in the US that includes building five additional chip facilities in the coming years. As an aside, TSMC could face a penalty of at least USD1 bil to settle a US export control investigation over a chip it made that ended up inside a Huawei AI processor. Coincidence?

A joyless American Christmas? 
Another victim of the tariffs may well be Christmas, as Chinese producers of Christmas decorations revealed that there have been no orders so far from US clients, who are crucial to their business. The producers said US clients would have usually started sending in their orders by now. Those US retailers are almost completely reliant on China for those decorations, sourcing 87% of their stock from Chinese manufacturers. Guess the Americans are getting naked Christmas trees this year.

Chinese nationals in Ukraine, food outage in Gaza, aid needed in Myanmar

• Ukraine captures Chinese nationals fighting for Russia
  Two Chinese nationals have been arrested by Ukrainian forces, as they were fighting for the Russian army. Ukrainian intelligence has also confirmed that there are more Chinese soldiers in Russia’s army, which calls into question China’s declared “stance for peace”. Kyiv has called for China’s envoy to explain, marking the first official allegation from Ukraine that China is supplying Russia with manpower. This also comes as Russia launched a new offensive, with a large increase in assaults already observed.

• Gaza food running out after six-week blockade
  Food stockpiled during the Gaza-Israel ceasefire has just about run out following a six-week blockade by Israel, with aid agencies warning that they will have to stop distributing food within days unless more food is brought in, as all basic supplies have run out. Israel is denying that Gaza is facing a hunger crisis, accusing Hamas of exploiting aid, while maintaining the blockade with the statement that it will not transfer aid to the hands of terrorist organisations. It’s always never Israel’s fault. It’s always everyone else’s.

• Aid still needed in quake-hit Myanmar
  The Southeast Asian nation still needs medical assistance, field hospitals, and shelters, after the 7.7 magnitude quake that was one of the strongest quakes to hit Myanmar in a century. The Thai foreign minister, who visited the disaster area, shared that existing hospitals cannot operate at full capacity due to damage from the quake. However, even as the country is handling the crisis, Trump’s tariffs have kicked in, slapping a 44% tariff on Myanmar. Concerns were raised that the tariff will further cripple the country’s recovery.

Shorts

1. Universal Studios opens first European theme park 
   Europe’s first Universal theme park and resort will be opening in Bedford, England, in 2031. The park is expected to create 20,000 jobs during its construction, and a further 8,000 across the hospitality and creative sectors when it opens. The park is also expected to attract 8.5 mil visitors in its first year. The park will feature several themed lands, a 500-room hotel, and a retail, dining, and entertainment complex.

2. Dominican Republic nightclub collapse claims 113 
   Hundreds of rescue workers in the Dominican Republic continue to search for survivors after a nightclub roof collapsed. The latest count has 113 dead and over 150 injured, as the venue was hosting a concert by merengue singer Rubby Pérez, who has been confirmed dead. The estimate is that there were between 500 to 1,000 people in the venue when the roof collapsed.

3. Iran sees nose job boom 
   Women in Iran are turning to nose surgeries to conform to Western beauty standards by getting rid of the “Persian nose”. A rhinoplasty surgeon has confirmed it has become a cultural trend that signifies a boost in social status, adding that he performs up to 20 operations a week at his clinic. Considering how heavily-policed female bodies are in Iran, this makes some sense. Comedians Key and Peele saw this coming 12 years ago - watch the skit here (avoid if you are easily offended).

5. FOR YOUR EYES 📺

1. Discussion about corruption in an area of the government - GLCs

2. Putra Heights Inferno - What Happened?

3. Two crazy free kicks by Declan Rice (Arsenal)!