☕️ US to Malaysia: 4 conditions to secure a tariff deal

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

RM3 – This is the current price of Koh Tang Huang's char kway teow, a testament to his cost-conscious approach, having only raised it by 50 sen four months ago after maintaining a price of RM2.50 for the preceding 15 years. This minimal increase comes at a time of soaring food prices, highlighting Koh's long-standing affordability, especially considering his father sold the same dish for just 30 sen when Koh was young. Something most businesses need to emulate.

61% – A concerning majority of Malaysians report facing difficulty in securing RM1,000 for emergency expenses, highlighting a lack of financial preparedness for unexpected shocks. Bank Negara's Financial Capability and Inclusion Demand Side Survey 2024 also indicates that 35% of Malaysians feel they lack adequate financial protection against adverse or catastrophic events, underscoring a widespread vulnerability to financial instability. The survey further reveals that the bottom 40% income group (B40) allocates a significant 52% of their income to basic necessities, leaving a limited buffer for unforeseen circumstances.

USD13.8 mil (RM58.7 mil) – A long-forgotten masterpiece by Indian painter MF Husain, titled Untitled (Gram Yatra), achieved this unprecedented price at a Christie's auction in New York, setting a new record for Indian art. This sprawling 14-foot-wide mural surpassed the previous record of USD7.4 mil held by Amrita Sher-Gil's The Story Teller. Painted in 1954 and depicting vivid scenes of Indian village life, the artwork had remained unnoticed for nearly five decades in a Norwegian hospital before its rediscovery. The sale marks a significant moment for modern South Asian art, recognising Husain's pivotal role in Indian modernism.

3. IN MALAYSIA 🇲🇾

Updates on Malaysia-US tariff negotiations

US to Malaysia: 4 conditions to secure a tariff deal
MITI Minister Tengku Zafrul Abdul Aziz has revealed that Washington has four conditions for Malaysia to receive reductions on the tariffs imposed by the US. Zafrul stated in a Press conference, after a special parliamentary sitting on the tariffs, that the US has agreed to reduce the tariffs, should both parties succeed in a win-win situation in the negotiations.

Washington’s four demands for the tariffs to be reduced, include addressing the US’ trade deficit, non-tariff barriers, technology safeguards, and investments. According to Washington, the US had a trade deficit with Malaysia amounting to RM105.25 bil. Furthermore, the US highlighted non-tariff barriers such as the long process to obtain a halal certification.

Washington also stressed the importance of safeguarding their technology, and ensuring it would not be used by ‘disapproved‘ countries. Microchips, for example, should not be shipped or smuggled by Malaysia to other nations.

The final demand involves US-approved investments by Malaysia, with Zafrul quoting the PM yesterday, about government-linked and government-linked investment companies alone have invested close to RM189.4 bil into the US.

Malaysian Government pledges RM1.5 bil in guarantees and financing against US tariffs 
Following that, the government stated it will raise the allocation for Business Financing Guarantee Scheme to provide aid to SMEs affected by the recent US tariffs. SMEs will receive assistance in securing commercial bank loans, PM Anwar Ibrahim said at a parliamentary session yesterday. The government will also push RM500 mil through development financial institutions to increase soft loan funds to support affected SMEs.

MITI to be only issuer of certificates of origin for exports to the US
MITI has been named the sole provider of certificates of origin for exports to the US in order to prevent illicit transshipment through Malaysia. This change will start today, with the issuing of certificates by business councils, chambers, or associations appointed by MITI to cease immediately.

The change comes as the ministry continues its ongoing investigation into questionable transshipment practices through the nation, with particular focus in the solar sector, following reports that certain exporters might have been using Malaysia as a transshipment hub to bypass US tariffs on third-country goods. While a formal free trade agreement does not exist between the US and Malaysia, Tengku Zafrul stated that existing frameworks provide MITI with the authority to regulate the issuance of certificates of origin.

Business today

Sunway announces newest and 10th mall in the country, to open in Sept Announcing the 10th mall in their roster, Sunway Malls reveals Sunway Square Mall, launching officially in Sept 2025. The new mall is located within Sunway City Kuala Lumpur, roughly 1 km away from its sister mall, Sunway Pyramid, and has already attained a 95% leasing rate through its 300,000 square feet of net lettable area across four floors, according to a Press release in late April.

The mall already includes 150 shops, and offers 3,000 integrated parking bays. Mainly comprised of entertainment and leisure spots, as well as key tenants such as Village Grocer, BUMP Bouldering, TGV Cinemas, The Library by BookXcess, COUNT, KKV, Tutu Toe Dance Academy and GoFit.

The mall reflects Sunway Malls’ views on what urban dwellers desire, as it caters to drivers such as leisure, food, and entertainment. According to Sunway Malls CEO HC Chan, he believes consumers today are on the lookout for places to engage, to experience what they see on their screens and share it.

Gamuda sells 157.42 hectares of land for RM455.23 mil to Google affiliate
Gamuda Bhd has sold land spanning 157.42 hectares, or 389 acres, in Port Dickson, originally bought for RM424.4 mil in Dec 2024 to Google affiliate Pearl Computing Malaysia Sdn Bhd for RM455.23 mil (RM26.87 per sq feet). The land will now be used for a major data centre project, with Gamuda to oversee RM1 bil worth of development.

The development will cover enabling works on the land, including earthwork and external infrastructure. A new water treatment plant with a production capacity of 65 mil litres a day is included as well. With earthworks projected to be completed in the third quarter of 2025, and the water treatment plant in the second quarter of 2027, as well as the off-river storage facility in the fourth quarter of 2028.

Survey: private clinics mark up meds prices up to 75 percent
A Berita Harian survey has revealed that private clinics are charging significantly higher prices compared to pharmacies, ranging anywhere between 23 percent to 75 percent, covering common and long-term medication. Comparisons include 500mg paracetamol tablets being sold for RM1 per tablet at private clinics, while pharmacies offer them at 25 sen. A box of atorvastatin - cholesterol meds - with 30 tablets is RM160 at clinics, and RM122 at pharmacies.

Dr. Boi Saidi B Abd Razak, President of the Islamic Doctors Organisation of Malaysia (PERDIM), stated that this was due to the fact that pharmacies bought in bulk, allowing for lower prices from suppliers. Following that with the additional costs of private clinics, he stated that the price difference was not excessively high.

Former BNM governor: Fresh grads should be earning RM7,000-8,000.
Former BNM governor Muhammad Ibrahim has been reported stating that fresh graduates of today, based on simple calculation, currently earn only around RM2k to RM3k monthly, compared to the starting salary of RM1.3k he received in 1984. The equivalent salary for university graduates today, he believes, totals to RM7,000 - RM8,000 monthly, taking into account the annual inflation rate of 5%.

Ibrahim also stated that Malaysians’ real wages have decreased nearly threefold in the last 40 years, and that without serious overhaul of Malaysia’s education and training system, as well as economic structure, future generations would be stuck in a country turned into a net exporter of labour rather than talent.

As Malaysia itself has been stuck in a middle-income trap for years, a combination of multiple structural issues has led to the failure to generate high-quality and high-paying jobs. Made worse by brain drain, many Malaysians have fled to Singapore, the Middle East, Australia, and New Zealand. Also highlighted were the number of Malaysian labourers in Singapore, not commuting from Malaysia over for high-ranking roles, but for the better wages of manual labour.

4. AROUND THE WORLD 🌎

Trump's America, where the Constitution may not matter

US President "doesn't know" if he should uphold the US Constitution
US President Trump again drew criticism when he said he “did not know” if he should uphold the supreme law of the US, the US Constitution. The flak came from his fellow Republicans as well, with Senator Rand Paul, a self-described constitutional conservative, criticising the statement with an X post of his own. This also follows Trump suggesting he would take on a third term, which drew sharp questions from legal and constitutional scholars, especially after he said there are “methods” to make it happen. He has also denied considering a third term, contradicting his previous statement of “not joking” when he said he wanted to serve a third term. I mean, he really does like law and order. He even ordered the restoration of Alcatraz as a working prison!

100% tariffs on foreign movies, says Trump
On tariffs, Trump has decided that America’s movie industry is “dying a very fast death”, due to a “concerted effort” by other countries offering incentives to attract filmmakers and studios. This has been described as a “National Security threat”, with Trump authorising 100% tariffs on movies made in foreign countries. So far, no details have been revealed, such as whether or not this would apply to American-made movies shot outside the US, or to streaming platforms like Netflix. In response, the UK has engaged the Trump administration for further clarification. New Zealand and Australia have also vowed to advocate for their film industries, considering their popularity as filming locations.

War never changes

Putin "hopes" Ukraine situation does not go nuclear
The Russian president said that there has been no need for nuclear weapons so far in Ukraine, and “hopes” it stays that way. Putin also said Russia has enough “strength and means” to bring the war with Ukraine to a “logical conclusion with the outcome Russia requires”. These comments also come ahead of his unilateral three-day ceasefire starting May 8 to celebrate the victory of the Soviet Union and its allies over Nazi Germany in WW II. Ukrainian President Zelenskyy does not believe Russia will keep to the ceasefire. However, Zelenskyy does believe that a ceasefire with Russia was possible at any moment, and called on his allies to apply greater pressure on Moscow, such as more sanctions or more support for Ukraine, to make it happen.

Israel to expand Gaza ground offensive
Israel’s security cabinet has voted to scale up the offensive against Hamas in Gaza to the point of taking the entire enclave and holding its territories in a “gradual” plan that would “take months”. The plan would continue until Hamas is either defeated or agrees to disarm and leave Gaza, options that Hamas have ruled out.

Meanwhile, Hamas has executed several alleged looters after several incidents where heavily-armed gangs attacked food stores and community kitchens in Gaza. Hamas also accused some of them of working with Israel, which has blockaded Gaza from aid for the past two months. Makes you wonder if one of Pope Francis’ final wishes will ever be made possible. His wish involved turning one of his popemobiles into a mobile health clinic for children in Gaza, which will now only be deployed “once humanitarian access to Gaza is feasible”.

Shoe deals and Chip bills

Skechers to go private in USD9 bil (RM37.8 bil) deal
The footwear brand will be taken private by investment firm 3G Capital in a USD9.4 bil deal that offered USD63 per Skechers share in cash. This comes as the firm is dealing with the impact of steep US tariffs and the erratic trade policy of the current administration. The deal is expected to close in the third quarter of 2025, and will be paid for in a combination of cash provided by 3G Capital and debt financing.

Upcoming bill will require location verification of AI chips
US lawmaker Bill Foster plans to introduce a bill that aims to address reports of widespread smuggling of Nvidia chips into China by making it necessary for chipmakers to build in location tracking into their chips, so that their locations can be verified post-sale. Foster stated that the technology already exists. Google already tracks the location of its in-house AI chips for security purposes, according to sources.

Shorts:

1. Sacred Buddhist jewels go on auction, ethicality questioned
   A cache of nearly 1,800 pearls, rubies, topaz, sapphires, and patterned gold sheets, unearthed in northern India and said to be linked to Buddha’s mortal remains, will be going on auction in Hong Kong. However, the ethicality of the sale has been called into question, on whether such treasures that are part of the history of India and Buddhism can actually be sold just like that. Documentary of Buddha’s remains below.

2. Record-breaking Lady Gaga concert sees bomb attack foiled

   Over 2 mil people attended a free Lady Gaga concert in Rio de Janeiro, paid for by city officials in a bid to revitalise the city’s economy, with the expectation that the concert will bring in USD100 mil (RM420 mil). This also broke the record for the highest-attended concert by a female artist in history, with the previous record holder being Madonna. Incidentally, Madonna set that record in 2024 to an audience of 1.6 mil at Copacabana beach in Rio de Janeiro, a concert that was also paid for by the city. Lady Gaga’s concert was also targeted for a bomb attack by a group looking to gain notoriety on social media, but the plan was foiled by Brazilian police, who arrested the person responsible for the plan. Just how big is the crowd? Watch here.

5. FOR YOUR EYES 📺

1. The 10,500-drone light show in Ho Chi Minh that shattered a Guinness World Record turned into a disaster as the drones start falling from the sky. Still looks good though.

2. Each time Boston Dynamics posts an update on its robotics programme, the improvements are by no means little. See Atlas busting some breakdance moves.

3. Ad battle: Farm Fresh vs Magnum