☕️ Trump's global tariffs blocked by US trade court

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

Johor has solidified its position as Malaysia's leading agricultural exporter, supplying over 70% of products valued at RM23.96 bil between 2023 and 2024. According to Zahari Sarip, the state agriculture, agro-based industry, and rural development committee chairman, these figures are based on data from the Malaysian Quarantine and Inspection Services Department (Maqis). He added that the export volume amounted to 6.8 mil tonnes of agricultural products, which were shipped through eight checkpoints across the state, firmly establishing Johor as the dominant force in agricultural trade.

In 2022, Malaysia recorded 219,015 active women-owned establishments, which constituted 20.1% of all registered establishments in the national economy, according to the Women-Owned Statistics from the Economic Census 2023. Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin noted that this figure represents an annual growth rate of 2.3% compared to the 187,265 establishments recorded in the 2015 census. The majority of these women-owned businesses, specifically 93.6% or 205,012 establishments, were concentrated in the services sector, followed by the manufacturing sector with 8,469 establishments, and the construction sector with 3,869 establishments.

Despite a decline in horse racing's overall popularity, the demand for high-end racehorses, particularly yearlings, remains strong, a trend attributed to the rising popularity of horse racing syndicates. Last year, auction house Keeneland's Sept yearling sale generated a record USD428 mil (RM1.8 bil). The average selling price per horse at this sale was USD150,548, marking a 5.2% increase year-over-year. While racehorses can have shorter careers due to injuries, the average lifespan for horses ranges from 25 to 30 years. The annual cost of caring for a thoroughbred can be substantial, reaching up to USD60,000.

3. IN MALAYSIA 🇲🇾

Tremors still felt after PKR election

PKR VP denies allegation that a group of MPs have stated non-confidence in the PM
PKR VP cum the Science, Technology and Innovation Minister Chang Lih Kang has denied the claim by Papagomo that a group of 11 PKR MPs, including Rafizi Ramli and Nik Nazmi have withdrawn their support for Anwar and will hold a media conference on May 30 about the matter. Chang added that Rafizi and Nik Nazmi’s resignations were in the spirit of democracy, and one need not read the actions beyond that. Even Nik Nazmi reiterated that even if he stepped down as minister, his loyalty remains with PKR.

Selangor’s exco lineup may be reshuffled
Whether or not Selangor Menteri Besar Amirudin Shari is promoted to the federal level, a reshuffle of the Selangor state government seems likely, mainly due to the outcome of the PKR elections. Speculation abounds stating that Seri Setia assemblyperson, Fahmi Ngah, may be dropped due to his defeat in the deputy chief of Petaling Jaya position and a spot in the central leadership committee. Among those being considered to replace Fahmi are assemblypersons Azmizam Zaman Huri (Pelabuhan Klang), Izuan Kassim (Kota Damansara), and Syed Ahmad Syed Abdul Rahman - better known as Altimet (Lembah Jaya).

Business news

Air Asia X profit drops
Once a PN17-designated company, AirAsia X Bhd (AAX) reported a decline in net profit in 1Q2025, down 37.34% compared to the previous period, from RM80.12 mil to RM50.21 mil. The drop in net profit was due to higher operating expenses, mainly for maintenance and overhaul. However, the revenue for 1Q2025 increased by 3.43% to RM940.08 mil, mainly thanks to higher passenger traffic, attributed to a higher capacity of 1.29 mil seats. Moving forward, AAX announced plans to ramp up capacity to Almaty, Kazakhstan and suspend its Nairobi, Kenya route.
View earnings here.

Farm Fresh squeezing more profit
The country’s darling company, Farm Fresh, recorded an 18.5% increase in net profit compared to the previous period, at RM28.35 mil in the three months ended Mar 31, 2025 (4QFY2025). Its revenue also rose 13.3% year-on-year to RM243.73 mil. All of this thanks to the introduction of new products (from ice cream to butter), expansion of its ice cream production capacity at its Taiping plant, increasing output of milk production at its Muadzam Shah farm, lower costs of dairy raw materials and improving margins from Australian operations.
View earnings here.

Ekuinas bounces back
Government-linked private equity firm Ekuiti Nasional Bhd (Ekuinas) recorded an increase in its portfolio core earnings by 3.3% in 2024, partially offsetting the 7% drop in 2023. This growth was mainly thanks to the strong results of:

• UNITAR Education Group, driven by its merger with Cosmopoint Group, led to a 77% jump in EBITDA, supported by higher international student enrolment and digital transformation initiatives.

• Medispec (M) Sdn Bhd recorded a 48.7% earnings growth thanks to its expansion and diversification strategy;

• Exabytes Capital Group registered a 30.9% bump in revenue, mainly driven by rising demand for digital infrastructure and cloud services.

Overall, Ekuinas has about RM4.9 bil invested in 47 companies.

BNM fines banks RM5 mil
Bank Negara Malaysia (BNM) rendered fines totalling nearly RM5 mil for failing to comply with financial service laws. The affected banks are HSBC (RM3.26 mil), Maybank (RM1.2 mil) and Bank Pembangunan Malaysia (RM493.5k). All banks paid their fines by Apr this year. It is a funny ordeal when it comes to penalising banks. If you fine too much, it will create a run in the market. But if your fine is too little, it would not matter. For example, Maybank’s net profit in FY2024 is RM10.09 bil. The penalty imposed by BNM was only about 0.01% of its net profit the previous year. So, obviously, the penalty will not make a dent and will probably be treated as another business cost. Manchester United’s loss to the ASEAN All Stars probably made a bigger damage to Maybank’s reputation, which was the main sponsor of the exhibition match. Watch (disappointing) match highlights here.

Shorts:

1. New Health DG facing tough issues
   Kuala Lumpur Hospital’s head of Emergency and Trauma Department, Dr Mahathar Abd Wahab, has been appointed director-general of Health effective Thursday. Despite being experienced in the healthcare industry for almost 30 years, it would be a daunting task for Dr Mahathar as he needs to navigate key issues such as the brain drain issue of medical officers, price transparency revolt by private clinics, among others.

2. Demolishing Highland Towers
   The Ampang Jaya Municipal Council (MPAJ) is waiting for the decision from the Ampang Magistrate Court, after the former filed a court order to proceed with the demolition of two long-abandoned blocks of the Highland Towers in Hulu Kelang, Selangor. The court is expected to provide its verdict in about two months’ time on Jul 25. Based on previous estimates, the demolition will cost between RM6 mil and RM7 mil. Before this, during PH 1.0 administration, there was a plan touted by then Housing and Local Government Minister Zuraida Kamaruddin to transform the site into a recreational park after demolition of the remaining towers. At the moment, the post-demolition plan is still unclear.

4. AROUND THE WORLD 🌎

Trump issues: blocked tariffs and revoked visas
Trump's tariffs blocked by US trade court 
The Court of International Trade has blocked US President Trump’s sweeping global tariffs, ruling that Trump did not have the authority to impose tariffs on nearly every country in the world. The Trump administration said it would appeal within minutes of the ruling. The ruling was based on two separate cases challenging the tariffs, with the first being a case on behalf of several small businesses, while the other was brought by a coalition of US state governments. Now, the US has 10 days to halt the tariffs, though most are currently suspended anyway.

This also strikes a blow against Trump’s trade policies, as he was in the middle of hammering out bilateral deals with other countries that only sought talks after the tariffs were announced. Meanwhile, stock markets gained in response to the news, though analysts said these gains may be short-lived.

Actually, this coincides nicely with a new Wall Street acronym: TACO. Its meaning? “Trump Always Chickens Out”, referring to how the market dips when Trump makes trade war declarations, then recovers when Trump makes a U-turn. Obviously, Trump isn’t happy with the acronym.

US State Department to "aggressively revoke" visas of Chinese students
The announcement came from US Secretary of State Marco Rubio, who unveiled the move through an X post and a statement. The post also stated that the revocation of visas will include Chinese students with connections to the Chinese Communist Party, as well as those studying in critical fields. The visa criteria will also be revised for applications from China and Hong Kong to enhance scrutiny. China’s Ministry of Foreign Affairs has criticised the move, calling it “unreasonable” and saying it “seriously damaged” the rights of Chinese students.

As an aside, Elon Musk confirmed he will be leaving the White House and his role as head of the Department of Government Efficiency (DOGE). Coincidentally, this happened a day after he openly expressed his disappointment in Trump’s budget bill, which he feels undermines DOGE’s mission. Musk reassured investors that he will be focusing more time on Tesla again after his DOGE stint.

AI affairs

CEO claims AI will take over 50% of entry-level office jobs, Mark Cuban disagrees
Dario Amodei, the CEO of AI firm Anthropic, cautioned that AI may eliminate 50% of entry-level white-collar jobs within the next five years. He stated that the “producers of this technology”, namely AI firms, have “a duty and an obligation to be honest about what is coming”, adding that unemployment could spike between 10% to 20% in the next five years. However, businessman and Shark Tank personality Mark Cuban disagrees, saying instead that AI will create jobs rather than destroy them. He also said that there will be new companies with new jobs that will come from AI, which will increase total employment. This is not the first time he has downplayed the effect AI will have on employment.

Grammarly receives USD1 bil to build its AI productivity platform
The parent of the writing assistant tool secured the USD1 bil (RM4.24 bil) in non-dilutive financing to expand its AI offerings and grow into a “comprehensive productivity platform”. The funds came from General Catalyst’s Customer Value Fund and would allow Grammarly to focus more of its resources, typically tied up in sales and marketing, towards product development. While General Catalyst doesn’t get a stake in Grammarly in this transaction, it will be receiving a percentage of the revenue from the funds being used in customer acquisition. Grammarly has an annual revenue of over USD700 mil and intends to eventually go public, though there are no plans as yet.

Shorts:

1. Bieber's wife inks USD1 bil (RM4.24 bil) deal to sell her make-up brand 
   Model Hailey Bieber will be selling the makeup brand she co-founded, named Rhode after her middle name, to e.l.f. Beauty in a USD1 bil deal. The buyer believes Rhode is “ready for rocketship growth”, and will be paying USD800 mil in cash and stock for the company, with a further USD200 mil dependent on future sales growth. The deal is expected to close later this year, with the model staying on as the firm’s chief creative officer.
   e.l.f. short for eye, lips and face

2. UK prosecutors lay 21 charges against the Tate brothers 
   Prosecutors have established the full list of 21 charges against the Tate brothers, which include rape, actual bodily harm, and human trafficking. The Crown Prosecution Service authorised the charges in 2024, before the extradition warrant was issued to bring them back from Romania, where they are under investigation for human trafficking, with Andrew also accused of rape.

3. Glacier buries Swiss village, 64-year-old missing 
   About 90% of the village of Blatten was buried under ice, mud, and rock when a chunk of glacier fell on the village, with its 300 residents losing everything. The village was evacuated earlier in the month, but the search is on for a 64-year-old man.

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5. FOR YOUR EYES 📺

On productivity - of the biological kind

1. Japan’s population crisis - no turning back?

2. Cure for couples who don’t have sex - take the ‘foreplay’ outside the room. Read full article here.

3. Men, here’s how to take control back.