☕️ US lawmakers target Malaysia over Israel stance

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

3.04 mil – That’s the number of active Employees Provident Fund (EPF) members aged 18 to 60 who have reached the basic savings target of RM390,000 at age 60 as of May 31, according to Deputy Finance Minister Liew Chin Tong. These members make up 38.3% of the fund’s 7.94 mil members, and this is an improvement over the 35% or 2.71 mil members of 7.74 mil as of May 31, 2025.

RM5.3 bil – 8 mil Malaysians, 40% of whom are aged 30 and below, owe that much to Buy Now, Pay Later (BNPL) operators as of the end of Mar 2026. This marks an increase of about RM400 mil in just three months from the loan balance of RM4.9 bil at the end of 2025. Of the total owed, RM181 mil, or 3.4%, are overdue loans. It was also noted that overall, BNPL debt remains low, at around 0.3% of total household debt at the end of 2025. The government has taken note of this growth and is of the view that the development of the BNPL sector needs to be accompanied by strong consumer protection to ensure that credit facilities continue to be used prudently and responsibly. A measure by the government is to require BNPL operators to obtain a licence from the Consumer Credit Commission to ensure that only providers that meet regulatory, governance, and consumer protection requirements are allowed to operate.

82.8 mil – That’s the number of Brazilians who are struggling with debt repayment as of Mar 2026, a 10% increase from the same period in 2025, and comprising nearly half of the country’s adult population. In May, the Brazilian government responded by launching a large-scale debt restructuring programme that effectively acts as a debt amnesty, offering relief through debt reduction and easier repayment terms. Brazil has been facing a worsening household debt crisis, with consumer finances strained by high interest rates and rapid fintech expansion, to the point that a surge in defaults became imminent. The high interest rates follow seven consecutive rate hikes by Brazil’s central bank, Banco Central do Brasil, with the policy rate reaching the 15% level in Jun 2025 for the first time in 20 years. It finally declared a rate cut in Mar 2026, the first in 22 months.

3. IN MALAYSIA 🇲🇾

Epstein-linked port chief sparks backlash
Pressure is mounting on Malaysian tycoon Tan Sri Syed Mokhtar Al-Bukhary after 31 civil society organisations urged him to revoke the appointment of Sultan Ahmed Bin Sulayem as executive chairman of MMC Port Holdings. The calls come after Reuters reported that the former DP World chief was set to lead Malaysia's largest port operator, just five months after stepping down from the Dubai-based logistics giant following scrutiny over his email exchanges with the late Jeffrey Epstein. Sultan Ahmed has not publicly commented on the matter, while Syed Mokhtar, MMC Corporation and MMC Port have also remained silent. His appointment has also sparked widespread criticism on social media, with many questioning whether he is a suitable choice to oversee one of the country's most strategic assets.

The groups argued that the appointment could expose Malaysia to unnecessary geopolitical and financial risks. They pointed out that several international institutions, including a UK development finance agency and Canada's second-largest pension fund, La Caisse, had already suspended new investments with DP World over Sultan Ahmed's alleged links to Epstein. They questioned why he should be considered essential to MMC Port if DP World itself had moved on without him. Transport Minister Anthony Loke said the government could not interfere in the management of private companies, adding that its role was limited to regulating the shareholding structure of firms operating concessions and strategic national assets. Read the letter here.

Former aide sought 5% cut from PDRM tender
A Sessions Court heard claims that a former political secretary to then home minister Hamzah Zainudin allegedly sought 5% of a RM381 mil PDRM maintenance and spare parts tender as political funding for Bersatu. Nexuscorpgroup Sdn Bhd director Ismuni Johari testified that the request was conveyed by Sayed Amir Muzzakkir Al Sayed Mohamad during a meeting in May 2020. According to Ismuni, the payment was allegedly requested in return for helping the company secure the tender. He told the court that he agreed to the arrangement because he and the company's managing director believed the tender would not have been awarded without Sayed Amir Muzzakkir's assistance. He also said the company later proposed paying the amount by instalments after objecting to an initial request for a lump sum payment due to cash flow constraints.

Ismuni also testified that he later signed a Project Advisory Agreement involving another company that he believed was linked to Sayed Amir Muzzakkir, although he did not know who prepared the document. He added that he was not involved in making any payments or preparing the tender documents, saying those responsibilities were handled by the company's managing director. During cross-examination, Ismuni stood by his account and rejected suggestions that the meeting never took place or that his testimony was fabricated. Sayed Amir Muzzakkir has pleaded not guilty to three corruption charges involving RM350,000, including accepting and soliciting bribes linked to the RM381 mil PDRM tender.

US lawmakers target Malaysia over Israel stance
Malaysia's diplomatic stance on Israel has drawn fresh attention after eight US congressmen urged Washington to suspend military training funds unless Putrajaya reverses what they described as a discriminatory policy towards Israeli citizens within 15 days. In a letter to US Secretary of State Marco Rubio, the lawmakers called for the suspension of the International Military Education and Training (IMET) programme, which provides professional military training in the United States for around 50 Malaysian military personnel each year. They also urged the US State Department to review broader security and economic ties with Malaysia, arguing that the country's longstanding refusal to recognise Israel and recent remarks by PM Anwar Ibrahim warranted a reassessment of bilateral cooperation. The congressmen said US support should come with an expectation that Malaysia would not target citizens of one of Washington's closest allies based solely on their nationality.

The letter followed Anwar's statement on Jul 15 that Malaysian authorities would track down and deport any Israeli nationals found to be involved with Network School after allegations surfaced that Israelis had entered Malaysia using passports from other countries. The Johor government later revoked the school's operating licence, forcing it to cease operations. Besides calling for a freeze on military training funds, the lawmakers also asked the State Department to clarify what action it planned to take in response to Anwar's remarks. They further accused Malaysia of maintaining ties with Hamas and alleged that members of the group had previously trained on Malaysian soil.

Shorts:

1. PAS orders support for BN candidates
   PAS has instructed its members to support selected BN candidates in the upcoming Negeri Sembilan election, signalling closer cooperation between BN and PN. PAS Secretary-General Takiyuddin Hassan urged members to back candidates in Gemencheh, Gemas and Repah, saying the directive applies to all PN component parties. He said the strategy mirrors the Johor state election and aims to strengthen the coalition's chances of defeating PH in Negeri Sembilan.

2. Network School heads to Kazakhstan
   Network School is moving ahead with plans to establish a new campus in Kazakhstan, just a day after being ordered to cease operations in Johor's Forest City. Founder Balaji Srinivasan announced that a memorandum of understanding had been signed with the Kazakh government to develop an artificial intelligence hub focused on education, research and start-ups. The move follows Johor's decision to revoke the school's licence over licensing breaches and concerns over alleged Israeli links to the programme.

4. AROUND THE WORLD 🌎

OpenAI model went rogue and pulled a Skynet
It seems eerily similar to Skynet in the Terminator movie series. OpenAI said that an autonomous agent powered by its AI models ‘escaped containment’ in a controlled environment and hacked into AI startup Hugging Face. Luckily, it didn’t hack into the country’s nuclear department and trigger a nuclear war like Skynet did.

According to OpenAI, the breakout was ‘an unprecedented cyber incident, involving state-of-the-art cyber capabilities’. Hugging Face is a platform used to host open-source large language models and datasets, and its cofounder Clement Delangue said last week that he suspected the hack ‘might have come from a frontier lab, given the sophistication of the agent. Turns out it did.’

OpenAI has since promised that it was reinforcing its safeguards, but people are worried. Katie Moussouris, CEO of Luta Security, said that ‘labs and government evaluators need to work on the ability to contain, monitor, and disclose to affected parties when an AI pulls another Houdini, ideally before it harms a third party. None exist today.’
Let’s hope we don’t need to send Arnold Schwarzenegger back to the past in the future.

Yet another AI chip deal between AMD and Anthropic
It seems like AI companies are not worried about the rise of the machines at all. They doubled down again as AMD and Anthropic have signed a deal for “tens of billions of dollars’ worth of artificial intelligence servers”. Anthropic will purchase up to 2 gigawatts of AMD’s Instinct MI450, while AMD will invest up to USD5 bil (RM20.43 bil) in Anthropic. Yes, this is the fabled circular deal that the AI industry is addicted to. Not only that, but AMD is also in talks to provide a financial backstop for Anthropic’s future data-centre leases. This means that AMD could back Anthropic’s leases or debt. In other words, a guarantee. 
Learn: Why supercomputing facilities/AI chips are now measured in gigawatts.

Singapore’s twin ministers to co-lead trade ministry
Is the co-CEO management trend also entering government? In Singapore’s cabinet reshuffle, PM Lawrence Wong has appointed two ministers to co-run the Trade Ministry. Tan See Leng will move from the Manpower Ministry to helm the Trade Ministry with existing Trade Minister Gan Kim Yong. Oddly enough, Gan Kim Yong is the Deputy PM, whom Lawrence Wong appointed two years ago. Is this an episode from Game of Thrones that we need to know about? Regardless, Gan will oversee trade and broader economic strategy while Tan will oversee energy and industry.

Jasmin Lau will be appointed as the acting Manpower Minister to replace Tan See Leng. The reshuffle is Wong’s third one since becoming PM in 2024. Predictably, he still retains his portfolio as Finance Minister. When you control the money, you control the power. Home Affairs Minister K Shanmugam will take on an additional role as Senior Minister.

The US
Rubio said Iran is not serious about ending the war
Four tankers carrying Saudi crude oil to Asia reversed course in the Red Sea as the Houthis in Yemen threatened them. The Houthis are aligned with Iran. Pakistan, which is the mediator, has condemned the Houthi threat to block Saudi oil exports. Rubio, in a meeting with Southeast Asia foreign ministers in Manila, had this to say, ‘The problem we're having right now is that they're not serious about talks.’

So, it’s not just the Strait of Hormuz that is being blocked now; the Red Sea is too. The only way out now is through the Suez Canal, which adds weeks to shipments. Mediators have presented Iran with a 10-day ceasefire proposal, but both the US and Iran continue to exchange strikes. Oil prices are up to a six-week high as Brent crude futures are at USD94 (RM384.18) per barrel. Trump is not backing down either, as he has renewed threats to attack Iran’s nuclear facilities in Natanz. Iran, of course, pledged to retaliate.

Is Trump looking to tariffs again?
TACO (Trump Always Chickens Out) trade? It seems like Trump is keen to impose fresh levies on products from dozens of economies when Trump’s 10% global duties expire this Friday. This information comes from ‘people familiar with the matter’, so it has not been confirmed yet. In May 2026, Trump proposed new tariffs of at least 10% on 60 trading partners, citing ‘lax forced-labour standards’. When the Supreme Court declared Trump tariffs illegal earlier in the year, he enacted a 10% import surcharge that can last for 150 days to address the balance of payments deficit.

Meanwhile, on the ‘forced-labour’ front, US Trade Representative Jamieson Greer said final implementation of the investigation is imminent but did not provide specifics. This already sounds like a ‘convenient’ reason with little backing and justification. In any case, Trump’s reasoning for tariffs remains the same - rebuild American manufacturing and protect domestic industries. One wonders how much of those priorities have progressed so far.

All about Football
Bezos looking to get a piece of Liverpool
The world’s fourth richest man, Jeff Bezos, is interested in joining a consortium led by former Queens Park Rangers co-owner Amit Bhatia to buy a stake in Liverpool for GBP1.35 bil (RM7.4 bil) from Fenway Sports Group. Liverpool is currently valued at GBP4.5 bil. Bhatia is looking for funding from investors and is believed to have secured financial backing from his father-in-law, Lakshmi Mittal, who is an Indian steel magnate.

Bezos has previously explored bids for NFL teams Seattle Seahawks and Washington Commanders but never followed through. Amazon had live UK rights for 20 Premier League games each season until last year, and broadcasts Champions League in several European countries. With the sudden explosion in interest in football in America, Bezos might be keen to capitalise on this.

La Liga president criticises FIFA president
The jabs have started. La Liga president Javier Tebas has called for FIFA president Gianni Infantino to step down. His claim? FIFA is destroying ‘the football industry’. His issues? World Cup hydration breaks, lengthy half-time intervals, postponement of suspension for US striker Folarin Balogun, and the proposed expansion to 64 teams for the next World Cup.

And he implied the C word (corruption) when he claimed that FIFA’s election system is ‘rotten at its core’. Infantino is standing for re-election for a fourth term at FIFA’s Mar congress. And Tebas said that he has ‘heard many people who are against Infantino, who disagree with what he’s doing.’ He believed that the intervention by Trump for Balogun could have been a solid case to bring down Infantino. But at the end of the day, money talks. Infantino’s 64-team proposal is expected to rake in even more money for FIFA, while its hydration and half-time breaks have been a cash cow for commercials to air.

5. FOR YOUR EYES 📺

About ____

1. About the place name Bangsar - has some Belgian roots.

2. About the Bali breakup curse for unmarried couple. What is it about? Read the comments - a Balinese gave an interesting story from a local’s perspective.

3. About the Asian/oriental flush when drinking alcohol. It’s a big cancer warning sign due to gene mutation common amongst Asians.

4. About intonation. ‘I never said he ate my a**’ - where you emphasise makes a big difference in the meaning.