☕️ Trump's tariff on Malaysia: 25%, up by 1%

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

Germany broke the world record for the largest string instrument ensemble when 1,353 musicians of all ages braved the rain to gather in the town hall square in Recklinghausen to perform Ludwig van Beethoven’s “Ode to Joy” (listen here) on July 6. This intergenerational event beat the previous record set in Hong Kong, when 1,021 people gathered in an event at Sha Tin Racecourse on May 5, 2018, to promote classical music among the youth in a show of how the power of music can promote positive change. Definitely something to be “joyful” for. Well done, Germany.

Less than a year after its launch, the Government-linked Enterprises Activation and Reform Programme (GEAR-uP) initiative has deployed a total of RM11 bil, a whole half of the RM22 bil in domestic direct investments identified, and 88% of the RM25 bil pledged by six major government-linked investment companies (GLICs). According to Finance Minister II Amir Hamzah Azizan, the funds are channelled into high-growth, high-value sectors such as semiconductors, energy transition, community upliftment, and talent development. The initiative, spearheaded by the Ministry of Finance, has also secured commitments from 34 GLICs and GLCs to provide at least a minimum monthly living wage of RM3,100 to 153,000 employees.

Superyacht sales boomed during the pandemic, hitting back-to-back record highs in 2022 and 2023. 1,024 new superyachts were built or on order around the world in 2022, a 25% increase from 2021. This was an all-time high at the time, then 2023 came along with 1,203 superyachts, another new record. The yachts are also getting bigger on average, according to Boat International magazine, with new yacht owners from the pandemic years trading up. Fun fact, Italian shipbuilders earned EUR8.3 bil (RM41.3 bil) in 2023 purely from superyachts, which could cost up to EUR295 mil (RM1.5 bil). The super-rich apparently switched to superyachts during the pandemic when luxury hotels were no longer an option, with the yachts now seen as “safe islands” for themselves and their relatives.

3. IN MALAYSIA 🇲🇾

Trump imposes 25% tariff on Malaysian imports
President Trump announced a 25% tariff on Malaysian imports beginning Aug 1. When it was first announced on Liberation Day, the rate was 24% and subsequently reduced to 10% during the negotiation period. In other words, for all the jogging done outside White House, the tariff rate got worse by 1%. The decision, formally conveyed to PMX in a letter yesterday, which addresses what Trump described as an “unsustainable trade deficit” fuelled by Malaysia’s tariff and non-tariff barriers. The letter, posted publicly on Trump’s Truth Social account, warns that attempts to bypass the duty via transshipments will also be penalised. Still, Trump offered a way out, companies willing to manufacture in the US would be exempt from the tariff, with Washington pledging expedited approvals. He added that if Malaysia raises its own tariffs, the US would match the increase atop the existing 25%. Despite the hardline tone, Trump expressed optimism about continued economic cooperation and hinted at flexibility, saying the tariffs could be revised depending on the evolving relationship.

Rafizi: AGC response fuels judicial crisis concerns
Former economy minister Rafizi Ramli said the Attorney-General’s Chambers’ (AGC) response to recent calls for a Royal Commission of Inquiry (RCI) into alleged judicial interference only reinforces public concerns of a “judicial crisis”. He claimed the AGC indirectly confirmed key issues, including delays in judicial appointments, disregard for Judicial Appointments Commission (JAC) nominations, protocol breaches and also allegations involving a Federal Court judge influencing court decisions. Rafizi also criticised the AGC for downplaying serious allegations while claiming confidentiality, arguing that only an RCI can credibly investigate the matter. He warned that continued delays in appointing new top judges fuel perceptions of executive overreach and undermine public trust in judicial independence.

China agrees to join ASEAN Nuclear-Free Zone
China has confirmed its readiness to sign the Southeast Asia Nuclear Weapon-Free Zone (SEANWFZ) Treaty without reservations, according to Foreign Minister Datuk Seri Mohamad Hasan. Two to three other nuclear-weapon states have also approached Malaysia, the current ASEAN chair, to resume discussions on the treaty. The SEANWFZ Commission Meeting, held during the 58th ASEAN Foreign Ministers’ Meeting, also approved Timor-Leste’s accession to the treaty, which will be formally announced at the 47th ASEAN Summit in October. The treaty, signed in 1995 and in force since 1997, aims to keep Southeast Asia free of nuclear weapons. Let’s keep it that way in perpetuity. 

Money Talks

Sime Darby to rebuild homes after gas blast
Sime Darby Properties has been appointed to rebuild homes damaged in the Putra Heights gas explosion, as it was the area’s original masterplan developer and has until June 2027 to complete rebuilding works. Of the affected homes, three in Taman Putra Harmoni will be rebuilt, 46 repaired, and 46 still under structural testing. 437 houses were identified affected by the incident and total value of losses and damage to residences where estimated at RM65.4 mil.

YTL Power invests RM10 bil in AI and eyes global reach
YTL Power has committed around RM10 bil to building up Malaysia’s artificial intelligence (AI) capabilities and it’s not stopping anytime soon. The company has invested heavily in one of the world’s largest data centre parks, top-tier GPU chips through a partnership with Nvidia, and is preparing to launch Malaysia’s very own large language model, ILMU 1.0. It’s also gearing up to introduce Ryt Bank, which will be the country’s first AI-powered digital bank. With 200 megawatts already up and running, with potential to scale to 600, YTL’s AI campus has attracted major international giants and is now home to the powerful GB200 Blackwell chips. There is also growing global interest in Malaysian-developed AI solutions, and the company is optimistic about expanding its technology and expertise to international markets.

RM50 subsidy for first-time life insurance buyers 
Young Malaysians looking to buy their first insurance plan still have time to benefit from the i-MULA 50 Starter Pack with over RM2.2 mil in subsidies remaining, according to the Life Insurance Association of Malaysia (LIAM). The programme offers a RM50 subsidy for first-time buyers of basic life insurance, with applications open till year end or until the RM5 mil fund runs out. Over 56,000 Malaysians have tapped into the initiative, which supports access to 33 affordable plans covering essential benefits like death, critical illness, disability, and hospital income. Annual premiums range from RM75 to RM600, with a minimum personal contribution of RM25. More info on the starter pack here.

4. AROUND THE WORLD 🌎

More cunning scheme from Israel
Israeli defence minister Israel Katz has “big” plans for displaced Palestinians in Gaza - a place he calls a “humanitarian city” for the Gazans to be forced into, amid the ruins of the city of Rafah. He said that Palestinians would go through “security screening” before entering, and once inside would not be allowed to leave. In other words, his plan is to force Gazans into “a concentration camp or a transit camp for Palestinians before they expel them” which legal experts and academics described as a blueprint for crimes against humanity. Since Trump made a suggestion to “clean out” the Gaza strip early this year, Israeli politicians including Netanyahu have enthusiastically promoted forced deportation, often presenting it as a US project. Their intention is to temporarily place the displaced people of Gaza at the “humanitarian transit areas”, before deporting them to other countries who are willing to “take in” the Palestinians. Sadly while they call it “voluntary”, people in Gaza are under so many coercive measures that no departure from the strip can be seen in legal terms as consensual.

Trump the “peacekeeper”
In Washington, Trump, who also hosted Netanyahu on Monday in a private dinner, said that the US has scheduled talks with Iran and “had seen good cooperation” with Israel’s neighbours on helping Palestinians. At the same time, Israeli officials held indirect negotiations with Hamas aimed at securing a US-brokered Gaza ceasefire and hostage-release deal. Netanyahu’s visit follows Trump’s prediction that such an agreement could be reached this week.

Meanwhile, adding to Trump’s apparent joyful and upbeat situation, during the meeting Netanyahu appeared to give Trump a letter that he said he had used to nominate the US President for the Nobel Peace Prize, which Trump accepted happily. Netanyahu said that “Trump is forging peace as we speak, in one country, in one region after the other”, hence the nomination. Trump after all made no secret of his irritation at missing out on the prestigious award. It is quite obvious that he is yearning for it, judging from his complaints about being overlooked for his mediating role in conflicts between India and Pakistan, Serbia and Kosovo as well as his efforts to “keep peace” between Egypt and Ethiopia.

Tariff “love” letter arrived for 14 countries
The US sent a letter to 14 countries regarding the tariffs on Monday, stating that the countries now face sharply higher tariffs, and now given a deadline of Aug 1 to strike a deal, with a hint that reprisals would draw a like-for-like response. Powerhouse suppliers such as Japan and South Korea were not spared, as well as minor trade players around the world. Suffering the same fate, Malaysia and Japan tariff has increased from 24% to 25%.

36-year-old APR founder is now South Korea’s latest billionaire
It only took a 15-seconds TikTok video by a Kardashian to propel APR Corp., a once-obscure Seoul-based startup, to the center of the K-beauty boom. The company is known for producing high-tech facial devices, and behind it is a 36-year-old Kim Byung Hoon, a tech entrepreneur-turned-beauty mogul whose company has made him South Korea’s newest billionaire. Kim's 31% stake in APR is worth about USD1.3bil, after the firm’s shares soared 200% this year.

Kim began by dabbling in mobile apps, after studying in California as an exchange student over a decade ago. He got hooked on entrepreneurship and launched APR in 2014. APR is now the second-largest publicly traded beauty firm in South Korea with a market capitalization of more than USD4 bil, after going public last year. More than 70% of APR’s revenue comes from overseas markets and the US is its biggest driver of growth outside South Korea - hence the endorsements from the likes of the Kardashians. On a bigger picture, South Korea is now the world’s 3rd largest cosmetics exporter but nevertheless, it is not immune to global trade pressures like the 25% Trump tariff effective Aug 1.

Shorts

1. The new chat app that can run without Internet
   Twitter co-founder and Block CEO Jack Dorsey said that he has come up with a new app called Bitchat - a messaging app that operates through Bluetooth mesh networks, allowing users to send messages without Wi-Fi or cell reception. Typically, Bluetooth can only work within 100 meters, but Dorsey claims that his app has an extended range that can relay messages up to 300 meters. The app now is open for beta-testing and still under review before it is released. Interestingly, another popular Bluetooth messaging app, Bridgefy, is also funded by a Twitter co-founder, Biz Stone.

2. AI addresses male infertility to help humans make babies

   Couples trying to conceive (TTC) and struggling with male infertility now have renewed hope thanks to a groundbreaking new AI intelligence system that is now able to analyse semen samples quicker and more accurately compared to human analysis. This means earlier and more effective interventions for affected couples, as well as the ability to detect viable sperm cells for fertility treatments. The AI system was developed by researchers at Columbia University Fertility Center, and to date an anonymous couple TTC for 18 years who underwent treatment with this system is now pregnant and expecting their baby in December.

3. Verdict: Erin Patterson is the Mushroom Murderer

   The verdict to the “mushroom murders” is now out - 50 year old Erin Patterson has been found guilty of killing three people by lacing a delicious Beef Wellington dish with lethal death cap mushrooms in July 2023. Patterson’s victims were the parents of her long-estranged husband’s, and her maternal aunty as well as her husband who survived the poisoning. Patterson herself is said to be “a bit of a super sleuth” and is an avid fan of true crime. She defended herself saying that what happened was a “terrible accident” but investigations found out that it was highly otherwise.

5. FOR YOUR EYES 📺

1. Pretty good reasons to look poor, or at least normal, especially when you are genuinely loaded (not IG loaded).

2. Give this guy a huge raise. Creative ad to promote awareness on testicular cancer - placing ads at the crotch section of footballers. Sponsored Balls!

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