Good morning, here's what you need to know today.

Key Highlights

• China's 'intrusion'
  
  

• Loan moratorium
  
  

• Sedition
  
  

China's 'intrusion'

A total of 16 Chinese military aircraft entered the airspace over Malaysia’s exclusive economic zone (EEZ) and flew near Beting Patinggi Ali (Luconia Shoals).

The aircraft did not respond to air traffic controllers in Kota Kinabalu as it approached near Malaysia’s national airspace, prompting the Royal Malaysian Air Force to scramble jets.

While the South China Sea has long seen overlapping claims - China has in recent years also laid claim to previously undisputed waters, including the Luconia Shoals.

Under international law, a country’s sovereignty under the EEZ extends 200 nautical miles out to sea. Luconia Shoals is 84 nautical miles off the coast of Sarawak.

However, China does not recognise this rule and instead goes by its own “nine-dash line”, which sees Beijing claiming most of the South China Sea.

Chinese ships have maintained a near-permanent presence in Malaysia’s EEZ as early as 2013.

In the past, Malaysia has taken a low-key approach to express its displeasure but China has become increasingly brazen.

The latest incident was revealed by the Royal Malaysian Air Force, which called it a threat to Malaysia’s sovereignty.

Subsequently, Foreign Minister Hishammuddin Hussein said Malaysia will lodge a formal diplomatic protest.

China has been speculated to be setting up an Air Defence Identification Zone (ADIZ) over the South China Sea, similar to the one it set up in the East China Sea in 2013 that covered territories in dispute with Japan and South Korea.

An ADIZ is an area that extends beyond a country’s national airspace. Aircraft within the area are monitored and must identify themselves to the country which set up the ADIZ.

HIGHLIGHTS

	China reports first human case of H10N3 bird flu The man is hospitalised with symptoms.
	Zairil and Nurul Izzah at loggerheads This was over the Penang land reclamation project.
	Facing RM1.8m suit, Prasarana assures it will cover medical bills The family of a seriously injured passenger is suing the firm.

Loan moratorium

The Association of Banks in Malaysia (ABM) said the three-month loan moratorium will only be offered to people who have lost their jobs.

This is slightly different from Prime Minister Muhyiddin Yassin’s announcement that the moratorium will apply to all B40 borrowers, small and medium enterprises (SMEs) that must close during the total lockdown and those who have lost their jobs.

However, the ABM said the B40 community can qualify for a commensurate reduction in monthly repayment if their income was impacted.

The commensurate reduction will also be offered to SMEs that must close during the total lockdown instead of a moratorium.

Finance Minister Tengku Zafrul Abdul Aziz said the government has no legal ability to force banks to give a blanket moratorium.

HIGHLIGHTS

	Alcoholic beverage factories ordered to shut 'Only basic necessities businesses can open.'
	Zafrul: Putrajaya has enough to fund the latest economic aid Funds will come from various sources.
	'Aid package timely, but falls short for businesses' The manufacturing group says it's not enough.

Sedition

PKR’s Pasir Gudang MP Hassan Abdul Karim criticised his party for "abandoning" a party member who is facing action for being critical of the Yang Di-Pertuan Agong.

Hassan said while the party may disagree with what Iswardy Morni had done, he reminded PKR of its anti-Sedition Act position.

Iswardy pleaded not guilty to making seditious comments with a tendency to insult the king.

The PKR member had in a video sarcastically commented about the ruler’s handling of the PN government and its Covid-19 response.

PKR had distanced itself from the video, stating that Iswardy does not hold any leadership position in the party.

HIGHLIGHTS

	Deputy IGP position to be filled within two weeks Home minister says names are shortlisted.
	Companies have three days to get new Miti letters Compounds will be issued after Thursday.
	Toyota, Honda temporarily halt production in M'sia This is due to the total lockdown.

A daily glance at Covid-19

• 7,105 new cases yesterday (June 1).
  
  
• Active cases crossed the 80,000-mark, doubling from 40,101 in 20 days.
  
  
• The infectivity rate declined to 1.07, the lowest since May 17. However, it must still be brought below 1.0 to stop the exponential growth in cases. 
  
  
• For trends on daily cases, tests, hospital beds capacity, vaccination progress and more, follow our Covid-19 tracker.
  
  

What else is happening?

• Some 800,000 civil servants will take a salary cut for three months in order to raise RM30 million for the National Disaster Relief Trust Fund amid the Covid-19 pandemic.
  
  
• The Malaysian Medical Association (MMA) criticised Science, Technology and Innovation Minister Khairy Jamaluddin for supposedly failing to engage general practitioners on the Covid-19 vaccination efforts but the Health Ministry's ProtectHealth Corp disputed this.
  
  
• Entrepreneur Lim Kok Wing passed away at age 75 after suffering a fall at his home.
  
  
• The government barred parents from bringing children aged 12 and under to public places during the total lockdown. The only exemption is education, exercise and emergencies.
  
  
• Health Ministry director-general Dr Noor Hisham Abdullah warned that the South Africa Covid-19 variant (Beta variant) is spreading fast. The variant is more resistant to current Covid-19 vaccines.
  
  
  

HIGHLIGHTS

	Zahid's visa graft trial postponed This is due to the total lockdown taking effect.
	Judicial commissioner recuses herself from Najib's case Liza Chan Sow Keng says she is an acquaintance of Najib.
	Giant panda gives birth to her third cub in Zoo Negara The cub's gender has yet to be determined.

What are people saying?

	Azhar's warped views on separation of powers By Ngeh Koo Ham
	There were 200,000 Neelofas? Really? By Andrew Sia
	Compassion for undocumented migrants By AG Kalidas

CARTOON KINI