Where Does Malaysia Stand in the Global Economic Rebuilding?

Economic

Summary:

As the world undergoes a messy reordering of economic and geopolitical power, Malaysia—a nation deeply dependent on global trade—is at a critical crossroads....

Malaysia and the End of Frictionless Globalization

The collapse of the post-Cold War era's "frictionless globalization" is not an abrupt crash but a prolonged recalibration of global systems—fueled by rising tariffs, slowing trade, financial stress, and renewed geopolitical rivalry. For Malaysia, a country with a trade-to-GDP ratio exceeding 130%, this reconfiguration strikes at its economic core. As major trading partners like China, Japan, and Singapore face domestic and structural challenges, Malaysia finds itself squeezed by weakened exports, reduced services demand, and dwindling investment flows.

More critically, the global shift toward protectionism and “reshoring” of production risks marginalizing Malaysia from the global supply chains that once propelled its growth. In this new paradigm, access to markets, capital, and technology is increasingly dictated by geopolitics—not economic efficiency.

Pivot or Perish: Domestic Economic Strategy Under Pressure

According to economist Samirul Ariff Othman, Malaysia must urgently pivot from an outdated export-led model toward resilient domestic foundations. This means a new fiscal stimulus to boost household consumption, strengthen micro and small businesses, and invest in sectors like digital technology, renewable energy, and advanced manufacturing. Such investments must also be tied to industrial localization strategies, strategic supply chain reconfiguration, and targeted FDI through a “China +1” positioning.

Yet fiscal constraints remain. Malaysia’s Fiscal Responsibility Act caps federal debt at 60% of GDP—a ceiling already tested during the pandemic. Rising subsidies, budget deficits, and the politically sensitive PADU subsidy reform program pose immediate policy dilemmas. Delay in addressing these imbalances may deepen the long-term damage.

Recalibrating Foreign Policy in a Divided World

Beyond economics, Malaysia must reposition its foreign policy to thrive in a fragmented world. It cannot rely too heavily on the U.S.-led Indo-Pacific architecture, nor can it afford dependence on China's gravitational pull. Instead, a smart, flexible, multi-vector diplomacy is needed.

This entails deepening trade integration within ASEAN, securing security and tech partnerships with Japan, South Korea, and India, and engaging Europe on green economic cooperation. Malaysia should also become an active architect of new “minilateral” agreements—practical, fast-moving pacts with like-minded countries on trade, innovation, and technology. ASEAN, meanwhile, must evolve from a symbolic bloc to a strategic buffer with real economic and diplomatic muscle.

No Illusions, Only Hard Choices Ahead

The Cold War-era model of open trade, financial convergence, and shared prosperity is being dismantled and rebuilt. Trade routes will be weaponized, currencies contested, and tech standards divided along geopolitical lines. Middle powers like Malaysia will be forced to choose, hedge, or shape outcomes. But time is short, and old certainties have vanished.

Malaysia’s future hinges not on returning to what was, but on adapting to what is coming. The country must lead its own transformation—or be led by the currents of powers far stronger and less forgiving.

To stay updated on all economic events of today, please check out our Economic calendar

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Warren Takunda

Cryptocurrency

Key takeaways:

Memecoins like Fartcoin, WIF, SPX6900, and Popcat are outperforming Bitcoin in the short term amid renewed crypto market euphoria.

Bullish technical patterns signal more upside for top-performing memecoins.

Popcat stands out with a potential 350% rally, while Fartcoin and WIF also eye significant gains in the coming weeks.

Bitcoin has surged 7.35% over the past three days, hitting a new all-time high near $112,000 on May 22, but memecoins are stealing the spotlight.

Fueled by BTC’s rally, several high-risk tokens are posting even larger gains, stoking possibilities that they could continue to outperform Bitcoin as the crypto bull run accelerates.

Fartcoin ascending channel hints at more gains

Solana-based Fartcoin (FARTCOIN) memecoin has surged 30% in the last three days to hit $1.57 as of May 22, its highest level in the last four months.

The rally extends Fartcoin’s strong year-to-date (YTD) performance—up 74.50%—amid the ongoing memecoin frenzy. In comparison, Bitcoin has risen 18% so far in 2025.

Technically, Fartcoin is trading within a well-defined ascending channel that began forming in early March, suggesting sustained bullish momentum. These 4 Memecoins Can Outperform Bitcoin This Cycle_1

These 4 Memecoins Can Outperform Bitcoin This Cycle_1

FARTCOIN/USDT daily price chart. Source: TradingView

The memecoin has also broken above its 50-day exponential moving average (50-day EMA; the red wave), currently near $1.06, a key support level in uptrends.

FARTCOIN’s relative strength index (RSI) was hovering near 64 as of May 22, suggesting there is room to run before selling conditions emerge near the overbought threshold at 70.

If the uptrend holds, Fartcoin could retest the channel’s upper boundary near $2.74 by June, up 80% from the current price levels.

Dogwifhat price could double

Like FARTCOIN, Dogwifhat has outperformed Bitcoin during the recent rally, up over 27% in the past three days. But the Solana memecoin has underperformed the top cryptocurrency year-to-date, down about 38%.

But a bull pennant formation may put Dogwifhat in a position to catch up in the coming weeks.

As of May 22, WIF’s price was testing the pennant’s upper trendline for a breakout, with its technical target at around $2.50, up about 125% from the current price levels. These 4 Memecoins Can Outperform Bitcoin This Cycle_2

These 4 Memecoins Can Outperform Bitcoin This Cycle_2

WIF/USDT daily price chart. Source: TradingView

The upside target aligns with the 0.5 Fibonacci retracement line, which has served as resistance during WIF’s consolidation phase between November 2024 and January 2025.

SPX6900 eyes 50% gains following breakout

Ethereum-based SPX6900 (SPX6900) has surged 35% in the last three days, paring its 2025 losses. It is, therefore, underperforming Bitcoin on a YTD timeframe but, like WIF, shows the potential of outperforming BTC this cycle in percentage terms.

At the core of this bullish outlook is SPX6900’s ongoing bullish reversal attempts. As of May 22, the memecoin had entered the breakout stage of its prevailing ascending triangle pattern, eyeing a rally toward $1.34 by June. These 4 Memecoins Can Outperform Bitcoin This Cycle_3

These 4 Memecoins Can Outperform Bitcoin This Cycle_3

SPX6900/USDT daily price chart. Source: TradingView

The upside target is up 50% from the current price levels, which was the resistance in January.

Popcat preps 350% rally setup

Solana’s Popcat gained 30% during Bitcoin’s rally, reaching its record high, but it remains an underperformer YTD.

However, a convincing cup-and-handle formation on POPCAT’s daily chart increases its potential of outperforming Bitcoin in the coming weeks or months. These 4 Memecoins Can Outperform Bitcoin This Cycle_4

These 4 Memecoins Can Outperform Bitcoin This Cycle_4

POPCAT/USDT daily price chart. Source: TradingView

As of May 22, the memecoin was testing the pattern’s neckline at $0.57 for a breakout toward $2.50, up by over 350%. This target is obtained by adding the neckline—a potential breakout point—to the cup-and-handle’s maximum height.

Source: Cointelegraph

Risk Warnings and Disclaimers

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Adam

Commodity

The gold market could struggle to attract fresh safe-haven flows as preliminary economic data points to a modest recovery in activity across both the service and manufacturing sectors.

S&P Global reported on Tuesday that its flash Purchasing Managers Index (PMI) for the service sector rose in May to 52.3, up from April’s reading of 50.8. The data beat expectations, as economists had forecast a reading of around 51.

Activity in the manufacturing sector also improved at a similar pace, with the PMI rising to 52.3, up from the previous month’s reading of 50.2. The improvement in manufacturing was a bigger surprise compared to services, as economists had expected a contraction.

While the data will ease some fears of a major economic slowdown, the report noted that sentiment remains subdued.

“US business activity growth and expectations for future output improved from lows seen in April, according to flash PMI survey data for May. However, they both remained historically subdued amid ongoing concerns over the detrimental impact of tariffs on demand, supply chains, and prices,” the report said.

The gold market is seeing renewed selling pressure in its initial reaction to the better-than-expected data. The precious metal is struggling to hold key near-term resistance. Spot gold last traded at $3,292.70 an ounce, down 0.63% on the day.

While activity has improved, the report noted that President Donald Trump’s import tariffs have cast a long shadow over sentiment and are impacting prices.

“Prices charged for goods and services surged to an extent not seen since August 2022, overwhelmingly linked to tariffs,” the report said.

At the same time, although optimism has improved, the report noted that uncertainty continues to flow through the economy.

“Overall optimism was still slightly below the average seen in 2024, attributable to reports of supply worries, rising prices, ongoing uncertainty, and concerns over detrimental impacts from government policies, including tariffs and spending cuts,” the report said.

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said that some of the activity could be front-loaded as the current 90-day deadline approaches.

“In particular, concerns over tariff-related supply shortages and price rises led to the largest accumulation of input inventories recorded since survey data were first available 18 years ago,” he said in the report. “Supply chain delays are now more prevalent than at any time since the pandemic led to widespread shortages in 2022, and prices charged for both goods and services have spiked higher as firms and their suppliers seek to pass on tariff levies to customers.”

Source: kitco

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Daniel Carter

Political

The 51-44 vote Thursday rolls back an Environmental Protection Agency waiver issued under former President Joe Biden allowing California to enact emissions standards even stricter than the US government's requirements to increase sales of electric and other zero-emission vehicles.

The decision to repeal waivers for the state automobile programs overturns a decades-old practice — enshrined in the Clean Air Act of 1970 — of allowing the most populous US state to set stringent pollution standards that go beyond federal government requirements. That authority, first envisioned as a way to help California combat smog, has helped put Sacramento in the driver's seat, designing pollution curbs that apply widely across the nation in other states that have opted to follow along.

The California requirements, which drew opposition from automakers, fuel producers and Trump himself, were also set to be applied in New York, Washington and other states that agreed to follow suit. Opponents of California's rules — which include automaker Toyota Motor Corp., the American Fuel and Petrochemical Manufacturers trade group and the US Chamber of Commerce — have said they are unachievable.

“Over the past two decades, California has used its waiver authority to push its extreme climate policies on the rest of the country, which was never the intent of the Clean Air Act,” said Senator Shelley Moore Capito, a West Virgina Republican. “The decision to limit consumer choice, increase car prices, and cost hundreds of thousands of jobs was made by California, and approved by a federal administration that had already been rejected by the American voters.”

The measure, which was passed by the House earlier this month, comes as Trump has criticized electric vehicles, claiming they don't work and will benefit China and Mexico while hurting American autoworkers. His administration has begun to undo Biden-era climate and environmental policies, including ones that prompt a shift to fossil-fuel free vehicles.

The move to repeal the California requirements, which were designed to slash planet-warming pollution, more than halving greenhouse gas emissions from light-duty vehicles in the state by 2040, drew fire from groups like the Natural Resources Defense Council.

“This vote is an unprecedented and reckless attack on states' legal authority to address the pollution causing asthma, lung disease and heart conditions,” said Manish Bapna, the environmental group's president. “After a multi-million dollar lobbying campaign from Big Oil, Republicans readily jettisoned their long-held view that states can best enact measures that reflect the values and interests of their residents.”

The vote to repeal defied a ruling by the Senate parliamentarian, a nonpartisan interpreter of the chamber's rules and procedures, that the EPA waivers are not eligible for repeal using the Congressional Review Act, the special procedure Republicans are utilizing to undo the California standards. The act allows for lawmakers to rescind Biden-era measures that were finalized in the last few months of his presidency.

Republicans used a controversial procedural move to skirt the ruling, drawing vehement opposition from Senate Democrats, who said that would set a new precedent about what the Senate could do using a simple majority vote.

“It is going nuclear,” Minority Leader Chuck Schumer said Wednesday night, adding that it would allow Republicans to hijack the rules, erode “away at the Senate and undermine this institution they claim to care about.”

Source: Bloomberg Europe

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Adam

Economic

China–U.S. Trade War

US Flash PMIs beat forecasts as tariffs fuel inflation. Manufacturing and services rise to 52.3, but soaring prices raise Fed policy tightening risks.

Tariffs Drive Price Surge Even as US Output Recovers, S&P Global Flash PMI Shows

US business activity picked up in May, with both manufacturing and services sectors showing improved output, according to S&P Global’s flash PMI data. However, this growth came at a steep cost as price pressures surged—driven overwhelmingly by tariff effects—raising inflation concerns across markets.

OPEC-Like Inventory Moves as Manufacturers Front-Run Tariff Effects

The S&P Global Flash US Manufacturing PMI climbed to 52.3 in May, a three-month high and the strongest reading since June 2022. Output rebounded modestly, but the standout driver of the headline gain was a record jump in input inventories. Manufacturers bulked up supplies in anticipation of further tariff-related disruptions, reminiscent of stockpiling seen during OPEC-induced oil uncertainty. Supplier delivery times also lengthened to the worst level since October 2022, reflecting strained supply chains.

Federal Reserve in Focus as Price Pressures Mount

Price acceleration was broad-based. Manufacturing output prices recorded their sharpest monthly rise since September 2022, while services posted the highest increase in charges since April 2023. These moves, directly tied to tariffs on imported goods, pushed overall selling prices to levels not seen since August 2022—likely drawing fresh attention from the Federal Reserve. Input costs followed suit, with manufacturing seeing the fastest rise since August 2022 and services the steepest since June 2023.

Export Weakness and Labor Cuts Signal Underlying Fragility

Despite output gains, external demand remains weak. Exports fell for a second consecutive month, with services exports dropping at the fastest rate since early 2020, outside of pandemic periods. Employment also turned negative: services cut payrolls for the second time in four months, and manufacturing posted back-to-back declines. These data suggest firms are bracing for weaker forward demand and margin pressures.

Services Rebound Adds Support, But Demand Is Still Domestic-Led

The US Services PMI business activity index rose to 52.3, up from 50.8 in April. The uptick was driven mainly by stronger domestic orders as foreign sales weakened. Service sector confidence improved to a four-month high, supported by the temporary pause on new tariffs and improved growth prospects. Still, sentiment remains below the 2024 average due to persistent policy and price uncertainties.

Market Outlook: Bullish Short-Term, Inflation Risks Rising

The flash PMI data point to a short-term bullish outlook on US output, especially in manufacturing, fueled by inventory build-ups and stronger domestic orders. However, accelerating price pressures linked to tariffs raise the risk of inflationary headwinds, which could prompt tighter Fed policy. Traders should watch closely for the Fed’s response and final PMI data in early June.

Source: fxempire

To stay updated on all economic events of today, please check out our Economic calendar

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Gerik

Economic

Commodity

Mild Weather and Shoulder Season Curb Demand

One of the primary reasons behind the recent drop in U.S. natural gas prices is the weather. According to Art Hogan, Chief Market Strategist at B. Riley Wealth, temperatures have remained moderate—neither cold enough to drive heating demand nor hot enough to significantly boost air conditioning usage. Phil Flynn of PRICE Futures Group echoed this, noting that the market is in the "shoulder season," a period when both heating and cooling demand are typically subdued.

This low-demand period coincides with the end of maintenance cycles at many gas facilities, meaning production is starting to ramp up again just as consumption slows, exacerbating the oversupply.

Technical Pressure and Rising Production Amplify Declines

Eli Rubin of EBW Analytics Group reports that June gas futures fell by over 22 cents in the latest session, touching a key support level of $3.098 per mmBtu. Over the past six trading days, the contract has lost more than 68 cents. Technical indicators, Rubin warns, continue to point toward a bearish outlook.

Adding to market pressure is a rebound in U.S. gas output, which recently hit a monthly high. Although the increase in production is not massive, it is significant enough to make investors nervous given the existing weak demand.

Rubin also notes that cooling demand in the next two weeks is projected to be about 10 Cooling Degree Days (CDD) below the 30-year average, indicating that air conditioning needs will remain low in the short term.

Short-Term Weakness, Mid-Term Recovery Potential

Looking ahead, Rubin expects further price volatility in the near term due to investor repositioning ahead of Memorial Day and the upcoming June futures contract expiry. However, he remains cautiously optimistic about a rebound if hotter weather materializes in late June.

Should temperatures rise and inventories remain at current moderate levels, the market may find support. Yet, other bearish factors remain in play, such as high spring storage levels and rapid injection rates that have already exceeded 100 billion cubic feet (Bcf).

Sabine Pass Maintenance and Storage Surge Pose Headwinds

Another bearish element is the upcoming maintenance at the Sabine Pass LNG export facility. Rubin estimates this could add up to 2 Bcf/day of excess supply into the domestic market during June—above the five-year seasonal average.

Though spot demand in parts of the Midwest could rise temporarily due to a predicted cold snap (e.g., Minneapolis dropping below 50°F after touching nearly 90°F the week prior), widespread support from cooling demand has not yet emerged.

U.S. natural gas prices are under pressure from a classic oversupply and underdemand scenario intensified by seasonal factors and investor sentiment. While short-term technicals suggest more weakness, the path to recovery hinges on whether the summer heat arrives early enough to revive cooling demand and absorb rising supply. Until then, volatility is likely to persist.

Source: AFP

To stay updated on all economic events of today, please check out our Economic calendar

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Damon

Cryptocurrency

Bitcoin has just broken a legendary ceiling at $111,000, heightening hopes for a financial revolution. But behind this euphoria, the threat of a sudden crash looms. This new record reveals both the strength and fragility of a market disrupted by scarcity, regulation, and global tensions.

In brief

Bitcoin surpassed $111,000, driven by post-halving scarcity and enhanced institutional adoption through ETFs.
Macroeconomic risks, such as a strong dollar and geopolitical tensions, could trigger a sharp correction.
Regulatory developments, notably the GENIUS law, and institutional interest will heavily influence bitcoin’s future trajectory.

The bitcoin rocket takes off and could soon reach the stars

Bitcoin, after smashing a crazy record at $110,000, has just shattered a new historic record by surpassing the symbolic $111,000 mark. This milestone evokes a dual emotion: the euphoria of a major asset becoming essential and the tension of a market where risks accumulate in the background. Among the factors driving the rise, we have:

The halving

This periodic event that halves the creation of new bitcoins is beginning to heavily weigh on the available supply. Indeed, this contraction in quantity injected fuels intense upward pressure.

The decrease of bitcoins on exchanges

Meanwhile, BTC availability on trading platforms is dwindling, intensifying the scarcity effect. Investors now face a market where bitcoins for sale are rare, mechanically boosting its valuation. This could further propel BTC to new heights.

Bitcoin availability on trading platforms in decline.

Why could BTC soon collapse despite $111,000?

Despite its decentralized aura, bitcoin remains sensitive to the upheavals of major economic powers, and these factors could abruptly halt BTC’s progress:

A strengthening dollar, with the DXY index rising more than 5% in three months, makes foreign assets more expensive and dampens appetite for bitcoin, often causing pullbacks;
Geopolitical tensions, like the US-China conflict and crises in the Middle East, increase volatility of risky assets, making BTC vulnerable to sudden movements linked to political events.

These external factors could shake investor confidence and trigger violent corrections.

Institutional hope to save BTC?

Ryan Lee, chief analyst at Bitget Research, points out that institutional adoption and the rise of Bitcoin spot ETFs provide strong market support. However, he reminds us that BTC’s trajectory is far from linear:

Bitcoin has reached a new historic high, surpassing $110,000, with accelerating institutional adoption and increasing regulatory clarity. The demand for Bitcoin spot ETFs continues to rise, amplified by a tightening post-halving supply that sharpens market dynamics and sets the stage for further price appreciation […] Bitcoin’s momentum seems strong for now, but the path ahead will still be fraught with obstacles.

Additionally, the progress of the GENIUS law, currently under investor scrutiny, will play a decisive role in reinforcing or weakening this BTC momentum.

Bitcoin outlook in the short and medium term

In the short and medium term, the scenario remains fragile. Some analysts even forecast volatility reaching 30% in the coming months, with a risk of a temporary pullback that could bring bitcoin down to around $90,000 before a possible rebound. The key for investors is to adopt a flexible stance, attentive to macroeconomic and regulatory signals. Confidence in BTC relies mainly on a precarious balance between financial innovation and an uncertain global context.

Bitcoin’s recent surge to $111,000 is not just a new record but a turning point revealing a new reality: a crypto driven by institutional investors. Moreover, the bold bet by several states on funds like Strategy could propel BTC to $500,000, further increasing institutional interest. Will this new momentum mark the beginning of an era or precipitate a major correction? Only time will tell.