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AirBorneo to Launch in 2026 as Sarawak Aims to Strengthen ASEAN Links

Sarawak’s upcoming state-owned airline, AirBorneo, symbolises the region’s ambition to strengthen connectivity and economic cooperation across ASEAN, according to Premier Tan Sri Abang Johari Tun Openg. Speaking through Deputy Premier Datuk Amar Awang Tengah Ali Hasan during the gala dinner of the 33rd ASEAN Socio-Cultural Community (ASCC) Council Meeting on Thursday night, Abang Johari said the airline, expected to begin operations in 2026, would serve as a strategic platform for enhancing trade, tourism, and investment across Southeast Asia. “In line with our aspirations for regional connectivity, Sarawak is proud to announce the upcoming launch of our airline, AirBorneo,” the Premier stated. He emphasised that improved air links would not only make travel more convenient, but also streamline business across ASEAN capitals and major cities. This move forms part of Sarawak’s broader strategy to leverage its strategic location, rich resources, and strong cultural ties to drive regional growth and uplift livelihoods. In addition to the airline, Sarawak is also advancing major infrastructure projects to cement its role as a regional hub. These include the construction of a new international airport and a deep-sea port in Tanjung Embang, Kota Samarahan. “These developments will enhance both air and maritime connectivity, making Sarawak more attractive to investors, businesses, and tourists alike,” Abang Johari added. He further highlighted the importance of the Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP-EAGA), a subregional initiative aimed at complementing ASEAN’s economic integration efforts. Sarawak’s shared land borders with Brunei and Indonesia’s Kalimantan position it as a key player in the region’s cross-border development efforts. “The relocation of Indonesia’s capital to Kalimantan will generate significant economic spillover effects throughout Borneo, creating new prospects for investment, trade, and infrastructure growth,” he said. The gala dinner was also attended by Minister of Tourism, Arts and Culture Datuk Seri Tiong King Sing and ASEAN Secretary-General Dr Kao Kim Hourn. The ASCC Council Meeting, held from 22 to 26 April, brings together ministerial representatives from all 11 ASEAN nations, including the recently admitted Timor-Leste, to discuss pressing socio-cultural priorities across the region.

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SC and Bursa Malaysia Investigate Unauthorised Trades in Online Accounts

The Securities Commission Malaysia (SC) and Bursa Malaysia Bhd have confirmed that a number of brokers have reported incidents involving failed client logins and unauthorised trading activities through a limited number of online trading accounts. In a joint statement issued today, both regulators said they are working closely with the affected brokers to determine the root cause of the security breach. Immediate steps are being taken to strengthen account security and prevent further incidents. “Capital market regulators and brokers are maintaining a high level of vigilance. Investigations are ongoing, and additional measures will be introduced as needed,” the statement said. All brokers have been instructed to promptly notify clients and advise them to reset their passwords and login credentials. They have also been urged to adopt stricter security protocols, including multi-factor authentication and more robust password policies. “These actions are intended to minimise the risk of further unauthorised access or trading,” the statement added. Desplite the incident, both the SC and Bursa Malaysia assured investors that the integrity of the country’s capital market remains unaffected. Trading operations will continue as usual. “We remain fully committed to ensuring that the marketplace operates in a fair, secure, and orderly manner,” the regulators said. The statement comes as a reassurance to investors amidst heightened concerns over digital security in financial systems.

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KL Heritage Project Revives City’s Cultural Soul with Malaysia Madani Vision

The heart of Kuala Lumpur is set for a cultural revival under the KL Heritage Project, a central component of the Malaysia Madani Capital Heritage initiative, officially launched today by Prime Minister Datuk Seri Anwar Ibrahim. More than just a physical upgrade, the project aims to preserve the city’s rich cultural and historical character while reinforcing community values. According to Tunku Nashrul Abaidah, Senior Press Secretary to the Prime Minister, the initiative reflects the government’s commitment to building a city that is both creative and culturally vibrant. Speaking during the Prime Minister’s Office Daily Briefing, which was streamed live on the official Facebook pages of Anwar Ibrahim and PMO Malaysia, Tunku Nashrul said the Prime Minister views the KL Heritage Project as a symbol of restoring the city’s soul. He added that the initiative is in line with the Malaysia Madani aspiration, which prioritises development rooted in values and civilisation. Since taking office, the Prime Minister has consistently emphasised that development should not be defined solely by skyscrapers and mega projects, but by initiatives that improve people’s quality of life. “The KL Heritage Project is a reflection of that principle. It builds the future while preserving our roots and values. It strengthens cultural and heritage identity for the benefit of the people and for appreciation by tourists,” he said. He stressed that heritage preservation must go beyond maintaining historic sites. It should cultivate a deep sense of love and respect for the nation’s legacy, which in turn can yield significant social and economic returns. “The government will not allow or take lightly the loss of historical landmarks that hold great significance in the nation’s development,” he added. The project brings together a wide range of strategic partners, including Kuala Lumpur City Hall (DBKL), Think City, Khazanah Nasional, government-linked companies and investment bodies, as well as artists and cultural practitioners. All share a common goal: to make Kuala Lumpur a city for all and a true reflection of Malaysia’s identity. Through this collaborative effort, the KL Heritage Project aims to create a city that honours its past while embracing a progressive and inclusive future.

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Brazil’s Mixed Coffee Forecast Signals Supply Shifts for Asia in 2025/26

SINGAPORE: Brazil’s 2025/26 coffee crop projection reveals a modest overall increase in output, yet contrasting trends between Arabica and Conilon may significantly impact coffee sourcing and pricing strategies in Asian markets. Hedgepoint’s latest report revises Brazilian production to 63.8 million bags, just 0.6% higher than the previous cycle, with Arabica declining and Conilon surging.  Crop Update Details  The new crop update from Hedgepoint highlights regional weather anomalies that are shaping Brazil’s coffee outlook:  Arabica Outlook Downturned: Production forecasts for Arabica, the premium variety favored in specialty blends, have been cut from 42.6 to 39.6 million bags due to adverse weather. A dry flowering season and above-average temperatures in key areas such as Sul de Minas and São Paulo have stunted bean development. Conilon Strengthens: In contrast, Conilon (Robusta), a crucial variety for instant coffee and espresso blends, shows a 20% production increase to 24.2 million bags. Improved rainfall in Espírito Santo and other Conilon regions, paired with infrastructure investments like irrigation, boosted yields and farmer confidence.  Impact on Processing Yields: Despite early 2025 drought conditions, post-flowering rainfall has improved bean size expectations, potentially enhancing overall processing efficiency, especially in Cerrado and Minas Gerais.    For Asian buyers, this bifurcation matters. Arabica scarcity may tighten supplies and elevate prices, while increased Conilon output could offer relief for volume-driven segments.    “This year’s crop pattern is a tale of two varieties,” said Laleska Moda, Analyst at Hedgepoint. “As Arabica faces setbacks, Conilon’s resilience not only offsets some volume losses but also introduces flexibility into sourcing strategies for large Asian buyers seeking cost-effective alternatives.”  Key Statistics:  Arabica production down 8.4% from 24/25  Conilon output up 20% year-over-year  Arabica exports projected to drop 8.1% to 34.1 million bags  Conilon exports expected to rise 11.1% to 12.2 million bags  ABIC retail prices up 102% YoY in Q1 2025  Domestic demand for Arabica projected to drop by 20.1%, while Conilon usage rises 22.4%  Asian importers, especially in China, South Korea, and Japan, may increasingly blend Conilon to offset rising Arabica costs, driven by weather-induced shortages and high consumer prices.   

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Malaysia to Lower Growth Forecast, Seeks ‘Fair’ Trade Deal with US Amid Tariff Pressures

WASHINGTON:  Malaysia is preparing to revise down its 2025 economic growth forecast following new US-imposed tariffs that have clouded trade and investment prospects, Finance Minister II Amir Hamzah Azizan said during the IMF-World Bank spring meetings in Washington. The government’s current growth target of 4.5% to 5.5% is under review, with a revised outlook expected to be released in the coming months. “What’s transpired over the past three weeks has been probably a lot harder than what people anticipated,” Amir said in an interview. “It is likely that global trade will come down. The key question is: how deeply?” Malaysia’s first-quarter performance fell short of expectations, even before the US introduced new tariffs on trading partners earlier this month. The International Monetary Fund has projected 4.1% growth for the country this year. Trade Talks with US Begin This Week Malaysia will officially begin trade negotiations with the United States on Thursday, in a bid to avoid a looming 24% reciprocal tariff, which is currently under a 90-day suspension. The meeting will feature Malaysia’s Investment, Trade and Industry Minister Tengku Zafrul Aziz and US Trade Representative Jamieson Greer. Malaysia follows in the footsteps of Japan and Vietnam, which have also initiated formal discussions with the US. “Let’s put it all on the table and discuss what’s fair or what’s not fair,” Amir said, while declining to specify whether Malaysia might increase purchases of US goods to help offset the trade imbalance. While Malaysia maintains an overall trade surplus with the US, it runs a services trade deficit. Officials plan to stress Malaysia’s key role in global supply chains, particularly in semiconductors and as a base for US manufacturing operations. Economic Strategy Amid Global Headwinds Amir noted that while the US tariffs may dampen growth, Malaysia has room to maneuver. He pointed to fiscal space and increased investment from government-linked companies as buffers against external shocks. Despite a recent drop in oil prices, Malaysia is moving ahead with fuel subsidy reforms slated for mid-2025, introducing a two-tiered pricing model where only the wealthiest 15% of households will pay market rates. Amir also suggested that Malaysia could help bolster regional coordination as global trade dynamics shift. “We must be prepared to look at what we can, so long as it doesn’t disrupt the economic structure within the country.” As the current ASEAN chair, Prime Minister Anwar Ibrahim has pledged to lead efforts to craft a collective Southeast Asian response to the US tariff agenda.

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Binance Billionaire Zhao Urges Regulators to Relax Crypto Rules in KL Appearance

KUALA LUMPUR: Crypto’s wealthiest figure, Changpeng Zhao, better known as “CZ,” made a spirited appearance at the Ritz-Carlton Kuala Lumpur on Tuesday, just months after completing a sentence in a low-security California prison. His focus now? Advising governments on shaping more progressive, innovation-friendly crypto regulations. “How many are regulators or from regulatory backgrounds here? OK, not many. So we’re safe,” Zhao joked to a full house, signalling a more relaxed tone but underlining a serious mission. Zhao’s renewed public presence marks a dramatic turn from his 2023 guilty plea to anti-money laundering violations that, according to US officials, allowed criminal groups and terrorist organisations to exploit Binance. In the aftermath, he stepped down as CEO, paid a US$50 million fine, and pledged to focus on investments with “impact” over returns. Now, he is taking a more active role in policy advisory, recently appointed as an adviser to Pakistan and Kyrgyzstan. His Tuesday meeting with Malaysian Prime Minister Anwar Ibrahim centred on the country’s potential to become a regional crypto hub. “I always encourage governments to take a more relaxed approach,” Zhao said, citing crypto-friendly jurisdictions like Dubai and Bahrain as regulatory models. Shifting Global Mindsets Zhao highlighted how the shift in the United States’ political climate under a more crypto-positive Trump administration has influenced global regulatory strategies. “With the US being so pro-crypto right now, all other governments need to be slightly more competitive to retain talent, attract funds, and draw investment,” he said. “I encourage most governments to be a little more progressive than the US.” A Wall Street Journal report recently claimed that Trump family representatives had discussed taking a stake in Binance’s US arm—though Zhao’s spokesperson denied such talks. Nevertheless, Zhao has reportedly lobbied for a presidential pardon. Binance’s History in Malaysia Binance’s track record in Malaysia has been turbulent. In July 2021, the Securities Commission Malaysia reprimanded the exchange and Zhao for operating illegally in the country. Since then, Binance has recalibrated its local approach, including taking a minority stake in Malaysian crypto exchange MX Global, which co-hosted Tuesday’s event. Prime Minister Anwar, who met Zhao and Abu Dhabi officials earlier this year, has advocated for transforming Malaysia’s financial ecosystem by embracing blockchain and digital assets. “We must move away from outdated business models and the antiquated financial system,” Anwar stated on social media. He reaffirmed that the government is open to continued engagement with Bank Negara Malaysia, the Securities Commission, and the Digital Ministry to explore responsible innovation in the sector. What’s Next for CZ? Following his legal troubles, Zhao has pledged to channel his wealth and expertise into philanthropic and educational efforts. His latest project, Giggle Academy, aims to offer free online education, particularly to children in emerging markets like Africa. He envisions the platform enabling children to gain employment skills from the age of 14, though the proposal has raised concerns about child labour laws. “We don’t want to violate any laws about working age,” Zhao clarified. “Giggle doesn’t offer jobs today, but we plan to in the future. We’re also open to working with labour ministries to determine what’s appropriate.” Meanwhile, Binance Labs has been restructured into YZi Labs, now focused on managing the personal investments of Zhao and co-founder Yi He.–BLOOMBERG

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KL Tower Set for Reopening as Restoration Work Intensifies

KUALA LUMPUR : Restoration and maintenance works are in full swing at the iconic Kuala Lumpur Tower, as the new operator, LSH Service Masters Sdn Bhd (LSHSM), readies the national landmark for a safe and enhanced reopening. Following the conclusion of Menara Kuala Lumpur Sdn Bhd’s (MKLSB) operating concession on 31 March, LSHSM assumed operational control on 1 April under a 20-year concession granted through a government-led request for proposal (RFP) process. Despite the change in management, the government has reaffirmed that KL Tower remains a state-owned asset. LSHSM’s chief executive officer, Khairil Faizal Othman, said the works go beyond cosmetic upgrades and are aimed at fully restoring the 421-metre tower’s safety, infrastructure, and functionality to world-class standards. Ongoing upgrades include electrical and drainage system enhancements, cleaning of the glass dome, reinstallation of flagpoles and CCTV units, repainting of parapet walls, and refurbishment of the revolving restaurant and office spaces with new furnishings and equipment. A Facility Condition Assessment (FCA), completed on 21 April, was instrumental in identifying critical areas requiring immediate attention. “The assessment ensures we not only meet international safety benchmarks but also exceed the expectations of our future visitors,” Khairil Faizal said. The operator is currently working in close coordination with the Ministry of Communications to determine a suitable date for the official reopening. “We are expediting on-site work while maintaining regular dialogue with the ministry,” he said. “Our focus is to ensure a seamless reopening and deliver an upgraded experience that reflects the tower’s status as a premier tourist attraction. We are confident that we will achieve this once full operations resume,” he added. KL Tower, closed to the public since 17 April, typically welcomes between 1,000 to 1,500 visitors daily—many of them international tourists. The temporary closure has already made an impact on local tourism. Communications Minister Fahmi Fadzil had earlier confirmed the tower’s closure, citing safety and comfort as the top priorities behind the restoration efforts.

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Investors Brace for Malaysian Rate Cut as Trade War Pressure Mounts

KUALA LUMPUR : Investors are increasingly predicting that Malaysia, one of Southeast Asia’s last holdouts against interest rate cuts, will soon ease monetary policy as the economic toll from the global trade war intensifies. Pricing in the ringgit swaps market now reflects expectations of a 30 basis point rate cut by Bank Negara Malaysia (BNM) within the next six months — double the forecast from just a month ago. The sentiment was echoed in a recent auction of a three-year government bond, which saw a bid-to-cover ratio of 3.18 times, the highest since August for short-to-mid-term papers. A reduction in rates is expected to spur borrowing and investment activity, while signalling that BNM is growing increasingly concerned about the country’s growth outlook amid tariff-related uncertainty. “Ringgit rates market has increased dovish bets for BNM,” said Winson Phoon, Head of Fixed Income Research at Maybank Securities Pte Ltd. He added that a rate cut would likely make the three-year benchmark bond outperform other maturities on the yield curve. Maybank, Goldman Sachs, and CIMB Bank all anticipate a potential 25 basis point cut later this year, with Maybank expecting it to materialise by end-2025. Malaysia’s economy expanded 4.4% year-on-year in the first quarter — the slowest pace in a year and below market expectations. Inflation also remains muted, with March headline prices rising only 1.4%, the lowest increase in four years. The International Monetary Fund recently revised Malaysia’s 2025 growth forecast to 4.1%, down from earlier estimates and below the government’s current target of 4.5%-5.5%, which is now under review. Investor anticipation of policy easing could help attract more foreign inflows. In the first quarter, Malaysia recorded US$690 million in foreign investment into its conventional government bonds. By contrast, Thailand’s bond market received US$2.1 billion this month, as dovish sentiment around the Bank of Thailand gained traction. Elsewhere in the region, countries such as Indonesia, Thailand, the Philippines, and Singapore have already moved to ease monetary policy since the latter half of 2024. Although Bank Indonesia held rates steady this week, it signalled further room for easing. BNM’s governor has said that Malaysia has other policy tools to address the impact of US tariffs. Still, investors appear unconvinced, particularly as economic indicators soften and the US continues to tighten its trade stance. Despite US President Donald Trump’s 90-day tariff pause to allow for more negotiations, his broader trade policies still cast a shadow. This week, Washington imposed new solar tariffs on multiple countries, including a 34.4% duty on Malaysian manufacturers. The United States remains Malaysia’s second-largest export destination after China, making the stakes especially high. Trade Minister Tengku Zafrul Aziz is scheduled to meet US Trade Representative Jamieson Greer in Washington today, as Malaysia seeks exemptions or adjustments to the imposed tariffs. Malaysia, along with China, Vietnam, Hungary and Mexico, ranks among the most vulnerable emerging markets to tariff-related economic disruption, according to Goldman Sachs strategists Andrew Tilton and Kamakshya Trivedi.

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ASEAN Vision Strengthened as Malaysia and Indonesia Align on Key Issues

JAKARTA : In a meeting that went beyond formality and handshakes, Malaysia’s Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi and Indonesia’s President Prabowo Subianto reignited a long-standing personal and diplomatic bond, paving the way for stronger regional collaboration under the ASEAN banner. Held at the historic Istana Merdeka, the meeting wasn’t just a diplomatic courtesy. It was a reflection of a decades-long friendship — a foundation that allowed both leaders to delve into complex regional challenges, from economic uncertainty due to potential US tariffs to the humanitarian crisis unfolding in Gaza. The leaders reaffirmed a shared commitment to regional stability, ASEAN solidarity, and closer bilateral cooperation. Among the key breakthroughs was the mutual recognition of Malaysia’s halal certification by Indonesia, eliminating the need for new procedures and opening smoother paths for cross-border halal trade. In a joint vision for the halal economy, both nations agreed in principle to establish an ASEAN Halal Council—a move poised to unify and uplift the halal industry across Southeast Asia. Beyond trade, Ahmad Zahid also held discussions with Vice-President Gibran Rakabuming Raka, covering labour welfare, fisheries cooperation, and regional peace. Both countries agreed to honour a 2012 MoU that ensures fishermen unintentionally entering foreign waters will be warned, not punished—a continued sign of maritime goodwill. In education, Malaysia inked new Letters of Intent on TVET collaboration, enhancing ties with Jakarta and West Sumatra through partnerships involving UniKL and Education Malaysia Global Services. Economic growth was also on the agenda, with the two sides committing to joint ventures in the franchise sector to build a more competitive and resilient regional economy. Highlighting Malaysia’s regional vision, Ahmad Zahid launched the ASEAN Unity Drive 2025, focused on sustainable mobility and innovation, and held talks with ASEAN Secretary-General Dr Kao Kim Hourn, advocating for the One ASEAN, One Response disaster framework. Malaysia also offered to help ASEAN nations develop elite search and rescue teams modeled after its own SMART unit. Religious cooperation saw another leap forward, with support voiced for haj dam rituals to be performed in pilgrims’ home countries, and for permanent facilities to be built in Mina—ideas to be sensitively proposed to Saudi Arabia. As the region navigates geopolitical uncertainties, Ahmad Zahid’s visit reaffirmed Malaysia’s role as a diplomatic bridge-builder and regional unifier.

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Made in Malaysia? Not Quite — Inside the Global Game of Tariff Evasion

As the United States tightens its grip on Chinese imports with punishing new tariffs, a murky trade workaround is making waves—this time, with “Made in Malaysia” stamped across it. Online retailers across the globe are reporting a sharp surge in unsolicited offers from foreign logistics firms promising to help them sidestep steep U.S. tariffs. These questionable services—often pitched via social media—include falsifying shipment values, obscuring origins, and re-routing goods through third countries such as Malaysia to exploit lower duties.   “We can help you save on costs,” reads one message from a freight firm, offering to understate the value of an incoming shipment while acting as the importer of record. While such schemes aren’t new, their brazenness has escalated since former U.S. President Donald Trump slapped higher tariffs on China earlier this month. Now, merchants say the offers are not only more frequent, but increasingly aggressive. Aaron Rubin, an online seller of martial arts gear, recounted an offer from a freight brokerage that proposed declaring a shipment valued at US$30,000 as merely US$10,000. The trick would have slashed his tariff bill by nearly US$29,000. Rubin refused—and reported the firm to U.S. Customs—but fears less scrupulous competitors may give in to temptation. “If people start saving US$10,000 in tariffs per container, it quickly adds up to billions,” warned Rubin, who also runs the logistics software company ShipHero. A Chinese freight broker, speaking anonymously to avoid scrutiny, confirmed that many clients are now opting to ship Chinese-made goods through Malaysia, claiming them as locally manufactured—where tariffs are about 24%, far below the over 125% levied on Chinese goods. Others, they say, are pausing shipments altogether, watching and waiting to see if U.S. trade policies shift again. While U.S. Customs and Border Protection (CBP) declined to comment on enforcement strategies, experts warn the risk-reward calculus for desperate businesses is shifting. “Some are facing existential crises,” said William George of Import Genius. “They could be weighing the risk of paying fines against losing their livelihoods entirely.” Under U.S. law, falsifying customs documentation—whether it’s undervaluing shipments or misdeclaring origins—is illegal and punishable by both civil and criminal penalties. But enforcement relies heavily on tip-offs and self-disclosure through an online portal, making oversight especially challenging.

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