☕️ US-MY Tariff: 25 going on 19

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

Malaysia saw a 48% increase year-on-year in the number of initial public offerings (IPOs) in the first half of 2025, which translates to 32 listings with the proceeds raised increasing 109% to USD940 mil (RM4 bil). These findings by Deloitte place Malaysia in first place among its Southeast Asian neighbours for IPO performance in the first half of 2025. The IPO outlook for Malaysia remains optimistic for the rest of 2025, with Bursa Malaysia on track to its full-year target of 60 listings, though US trade tariffs and geopolitical tensions have introduced uncertainty, with the possibility of investors taking a more cautious stance and companies opting to delay their IPO plans.

Bursa Malaysia also reported an overall market capitalisation of over RM1.9 tril in the first half of 2025, with the average daily trading value of retail investors stable at around RM450 mil, in line with pre-COVID-19 levels. However, Bursa Malaysia CEO Fad’l Mohamed emphasised that the priority is to build retail investors who are “knowledgeable, responsible, and confident about their investments”. He also stressed the need to raise awareness about the growing issue of investment fraud. Also notable is that there are only 1.4 mil retail investors in Malaysia, making up less than 5% of our population.

Permodalan Nasional Bhd (PNB) has been named the top Malaysian sovereign investor, with a global rank of 17th place in the 2025 Governance, Sustainability, and Resilience (GSR) Scoreboard published by US research firm Global SWF. Latest scores here. The Scoreboard is the recognised measuring stick of best practices among state-owned investors, and evaluates more than 200 sovereign wealth funds worldwide. PNB received a score of 84%, with a perfect 10/10 for sustainability in recognition of its climate targets, environmental, social, and governance (ESG) integration, and transparency in reporting. PNB’s latest integrated report shows that the fund’s total assets under management rose to RM348.3 bil in 2024.

3. IN MALAYSIA 🇲🇾

Tariff: 25 going on 19
Investment and Trade Minister Tengku Zafrul Abdul Aziz announced that Washington has reduced the tariff imposed on all Malaysian products exported to the US, from 25% down to 19% (Malaysian semiconductors and pharmaceutical exports to the United States are exempted from tariffs). However, it does not come free, as it looks like the US is getting the better side of the deal:

• More than 11,000 US products coming into Malaysia starting August 8 will have zero or reduced tariff rates imposed. He said among the US agriculture products that will have zero tariffs are dairy, poultry products, fruits and sanitary products;

• However, the halal standards imposed by the Malaysian Islamic Development Department (Jakim) will not be compromised, and the excise duties on three big items such as cars, tobacco and alcohol, will remain on all imported goods to Malaysia.

Zafrul also added that the big-ticket item purchases, such as the firm order for 30 Boeing 737 aircraft by Malaysia Aviation Group (MAG), are not part of the trade deal with the US, but instead are just being used as a leveraging tool during the trade negotiations, as the purchase was announced beforehand in March 2025. PM Anwar Ibrahim also defended MAG’s aircraft purchase as it is a sign that the company is recovering and not being used as a scapegoat in trade negotiations. Plus, from a helicopter view, any airliner only has two companies to buy aircraft from - either the US’ Boeing or the French Airbus.

But does a 6 percentage point reduction make any difference? According to the Star, 19% or 25%, losses and reduced profits are inevitable. Where does the 19% tariff rate put Malaysia in the global supply chain and among ASEAN economies? Vietnam, heavily reliant on the United States market for exports, faced a 20% tariff rate. For Cambodia, Indonesia, the Philippines and Thailand, it’s 19%, similar to Malaysia. Singapore has a baseline tariff rate of 10%. So, does the Johor-Singapore Special Economic Zone (JS-SEZ) still look sexy to Singapore? We do not have that answer.

Bringing Singapore closer

Cross-border e-hailing proposed 
Johor Menteri Besar Onn Hafiz Ghazi revealed that during his visit to Singapore recently, the proposal to introduce cross-border e-hailing was discussed as the service offers more flexible, on-demand mobility options for users and has the potential to ease congestion on major routes. According to certain sources, during peak periods, it would take between 1-3 hours to go either way.

Plan for the cross-border bus to start at 4 AM
Singapore’s Land Transport Authority (LTA) is reviewing a request from Malaysia to begin cross-border bus services from Johor Bahru an hour earlier at 4 AM. Johor Works, Transportation, Infrastructure, and Communication Committee chairman Mohamad Fazli Mohamad Salleh previously stated that the aim is to ease early-morning congestion.

RTS Link 2, anyone? 
During Johor Menteri Besar Onn Hafiz Ghazi’s visit to Singapore, he mooted the idea of constructing a second Rapid Transit System (RTS2) link connecting Iskandar Puteri in Johor and Tuas in Singapore to further strengthen cross-border mobility. The current RTS Link, soon to connect Johor Bahru and Woodlands, Singapore, will be operational in 2027 and cost about RM3.16 bil to build.

Even with the current RTS Link that will be officiated in 2027, Keretapi Tanah Melayu (KTM) said that it will expand its 40km Kempas Baru-to-Pasir Gudang (KBPG) line that currently serves only freight operations to include passenger services by 2026. This will start with the establishment of two passenger stations. The passengerised KBPG Line will act as a stop-gap measure as the planned elevated autonomous rapid transit (ART) system for Johor Bahru is still not being confirmed.

In regard to the Electric Train Service (ETS) from Kuala Lumpur to JB Sentral, there is still no news on the official opening date. An inspection by The Star along 180km alignment from Segamat to JB Sentral recently found that it is impossible for ETS services to reach the southern city anytime this quarter, as significant electrification and signalling works remain incomplete. Previously, the 192km stretch from Gemas to Johor Baru had been touted by some to be ready for service by August, with Transport Minister Anthony Loke saying so earlier in the year. Hm, janji Madani.

Shorts

1. Another death from bullying? 
   Bruises on a large part of Zara Qairini Mahathir’s back was discovered. Zara was the deceased girl who allegedly suffered from bullying. With the discovery of new information, the mother of the child is calling upon the police to reopen investigations into her daughter's death. Previously, Home Minister Saifuddin Nasution stated that police have completed their investigation and will be submitting the investigation papers to the Attorney-General's Chambers.

2. The King to visit Russia 
   At the invitation of Russian President Vladimir Putin, King of Malaysia, Sultan Ibrahim, will visit Russia from August 5 to 10, becoming the first Malaysian Head of State to conduct a state visit to Russia since the establishment of diplomatic relations in 1967. The head of state of Malaysia is the Yang di-Pertuan Agong (King), a position currently held by Sultan Ibrahim. The Prime Minister is the head of government.

3. A teenager getting paid RM4.1 mil over medical negligence at birth
   16 years after being born with avoidable severe brain damage, a teenager has been awarded RM4.1 mil in damages after the court decided that the owner of a private maternity home and a doctor were liable for medical negligence. The facts of the case were that the mother went to the maternity home, which is also a clinic, at about 10 AM on September 28, 2009 and was advised to undergo a C-section by the doctor as the umbilical cord was surrounding the baby’s neck. However, the procedure only started at 7 PM, which led to complications on the baby.

4. AROUND THE WORLD 🌎

A weekend of Trump, Tantrums, Trump:

Trump fires Bureau of Labor Statistics boss
Erika McEntarfer, the director of the Bureau of Labor Statistics (BLS) has been fired by Trump, because he is not happy with the numbers produced by the agency regarding the monthly job figures. He alleged that the figures were manipulated to make him and the Republicans “look bad”. McEntarfer was previously hired by ex-President Joe Biden. The latest jobs report showed that just 73,000 jobs were added last month and that 258,000 fewer jobs were created in May and June than previously estimated. It suggested that the economy has sharply weakened during Trump’s tenure, a pattern consistent with a slowdown in economic growth during the first half of the year and an increase in inflation during June that appeared to reflect the price pressures created by the president’s tariffs.

Trump calls to cancel the Fed’s Jerome Powell
Also in another case of “unhappiness with the numbers”, Trump has escalated his attacks on Federal Reserve (aka the Fed) Chairman Jerome Powell by calling for the board to take control from Powell and lower interest rates immediately. Earlier this week, Powell announced that interest rates would remain steady at 4.25% to 4.5%, citing a risk of inflation linked to Trump’s trade policies as the reason behind his decision not to drop interest rates. To understand how the Fed works : when it sees the need to accelerate economic activity, the Fed cuts interest rates to lower the cost of borrowing and pump money into the economy. Conversely, when prices rise too rapidly, the Fed raises interest rates to bring the cost of living under control. It is also supposed to operate independently of political officials, hence the continued resentment in Trump.

Trump ordered new positions of US nuclear submarines
Trump's frustration over Russia’s lack of progress towards peace in Ukraine goes on. In recent weeks, the US President has been enmeshed in an escalating war of words with Dmitry Medvedev, who currently serves as the deputy chairman of Russia’s Security Council. Both have been engaging in provocative statements towards each other, with references made to nuclear weapons systems capabilities and prospects of war. It then led to Trump ordering two US nuclear submarines to shift their locations relative to Russia, saying in Truth Social that it was “just in case these foolish and inflammatory statements are more than just that”.

Bonus: Trump surprises Switzerland, new exquisite ballroom for the White House
Switzerland has been slapped with a whopping 39% tariff by Trump - making it globally the 4th highest behind Syria, Laos and Myanmar so far. The news came as a big shock and confusion to the country, who just weeks ago was exuding confidence that it was likely to be second on the list after the UK to strike a trade deal with Washington, with a possible 10% tariff instead of the earlier 31% imposed by Trump on “Liberation Day”. Separately, the White House is going to build a new ballroom worth USD200 mil, adjacent to a “modernised” East Wing of the White House, which houses the offices of First Lady Melania Trump and other key White House posts. Apparently it is a fulfillment of yet another long time desire of Trump, who will be donating the money for the works alongside other anonymous donors.

Tesla 33% at fault, to pay USD243mil over fatal Autopilot crash
Tesla Inc. has suffered its first significant court loss related to its driver-assistance technology, where it was told to pay USD243 mil in a lawsuit over a 2019 Autopilot crash in Florida. The jury in Miami federal court found that Tesla was 33% to blame for the collision where a Tesla Model S ran a stop sign and rammed into a couple, killing a young woman and seriously injuring the boyfriend. Tesla was ordered to pay USD42.5 mil to compensate the victims for their losses and USD200 mil for punitive damages. Tesla argued that the verdict was wrong and that the driver of the Model S was entirely at fault for failing to heed the warnings in the owner’s manual that drivers must stay engaged, even during autopilot.

Shorts

1. Slovenia is tired of waiting for EU, announced arms embargo on Israel

   Slovenia (view on map) has taken the step to become the first country in the EU to ban the import, export and transit of weapons to and from Israel, a move that according to the country, was made independently because the EU bloc was “unable to adopt concrete measures … due to internal disagreements and disunity”. Early in July, Slovenia was also the first to ban two far-right Israeli ministers from entering the country and declared them persona non-grata, and recognised the Palestinian state in June 2024 after Ireland, Norway and Spain. Bravo, Slovenia.

2. Indonesian begins freeing hundreds of prisoners

   President Prabowo Subianto’s wide-ranging clemency plan, reportedly aimed at building national solidarity, has begun as the government announced the first group of 1,178 inmates were to be released this Friday. Political prisoners and inmates with mental and chronic health illnesses, older people, juveniles and those convicted of blasphemy or insulting the country’s leader are prioritised in the pardons. Barely 2 months after taking office, Prabowo announced clemency to some 44,000 inmates nationwide, most of them imprisoned for political reasons, as a way to help unify the country.

3. Son Heung-min is leaving Tottenham

   In a heartfelt press conference in Seoul, Tottenham Hotspur captain Son Heung-min announced that he is leaving the club this summer, ending a long 10-year stay with the English Premier League club. Son has been one of the biggest stars of the Premier League, scoring 173 goals in 454 competitive appearances for Tottenham. He was made captain in 2023 by former head coach Ange Postecoglou and helped the club lift its Europa League title, a first trophy since 2008. Son did not specify any plans for the future, except a confirmation that he would be playing for his home country South Korea in the FIFA World Cup next year. Collection of his goals below:

5. FOR YOUR EYES 📺

Today on jobs

1. Infuencer Sai on a 30-day challenge to try out different work. This is an interesting one - a 3D (dirty, dangerous, difficult) job, as a garbage collector. To all these workers, thank you for your service.

sai_cx

156K followers

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2. Norland Nanny - the James Bond of babysitting. How the more than a century-old institution train elite nannies in its 4-year programme with self-defence, advanced driving skills. To hire one of them could cost up to USD200,000 (RM855k) per year.

3. You good enough to join the CIA?