☕️ 47% Malaysians believe country not on right track, political corruption #1 reason - Ipsos survey

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

RM40.1 bil — total property loan applications in February 2024, according to recent loan application data released by Bank Negara Malaysia. It is 19% lower YoY as prospective property purchasers took a breather in February. The cumulative loan applications in the first two months of 2024 reached RM91bil, an increase of 8% from the same period in 2023. Total approved loans during this period were RM37.8 bil, translating to an approval rate of 41.5%, up 14.2% YoY.

In 2021, Novo Nordisk, a Danish company, released data from a clinical trial where overweight or obese patients were given a weekly dose of its GLP-1-based diabetic drug called semaglutide, marketed under the name Ozempic, for 68 weeks. The results showed that participants had lost an average of 15% of their body weight, which was quite impressive. Consequently, the drugs that mimic the GLP-1 hormone have become blockbusters. Currently, there are only three approved GLP-1 drugs for treating overweight or obese individuals: liraglutide and semaglutide, developed by Novo; and tirzepatide, made by Eli Lilly.
Read: How GLP-1 works and weight-loss drug side effects

26% — the estimated annual growth rate of weight-loss drugs in the next five years. It’s a lucrative market as the world’s population gets heavier. The World Obesity Federation estimates that nearly 50% of the world's population will be overweight or obese by 2030. As a result, there is a growing demand for drugs that treat obesity. According to Bloomberg, these medications are expected to generate yearly sales of USD80 bil by 2030.
Here are some cost-effective and free methods to lose weight — walk more, take the stairs, consume/avoid refined carbs #notmedicaladvice. Sadly, the market size for these methods is USD0, at least for the pharma boys, hence they aren’t promoting it.

3. IN MALAYSIA 🇲🇾

Malaysia is heading in the wrong direction, according to survey
According to a survey by Ipsos Malaysia during the first quarter of the year, 47% of Malaysians believed that the country is not on the right track, double what was recorded in January last year.

Why? Most cited political corruption as the main reason (50%), ahead of inflation (38%), unemployment (32%) and poverty & social inequality (31%). Ipsos’ group managing director Arun Menon also added that consumer confidence is declining as most Malaysians become more wary of their finances and hesitate to spend. From an economic perspective, less consumer spending equals lower economic growth, which leads to a spiral into a gloomy future. Got to take this survey with quite a pinch of salt — its sample size is only 500.

Man charged again over alleged comments on 3R
Chiok Wai Loong, 34, the individual who allegedly commented on the controversial socks with the word Allah, was charged again under Section 233(1)(a) of the Communications and Multimedia Act 1998 at the High Court. Previously, the court quashed the initial charge on Chiok, where he pleaded guilty and was sentenced to six months in jail and fined RM12,000. However, Chiok was not represented by any lawyers at that time, and upon securing one, it was found that Chiok's confession was not clear, unconditional, and inadmissible.

Volcanoes and others ‘interrupts’ airliners
Due to the volcanic eruption at Mount Ruang in Indonesia (view on map), Malaysia Airlines (MAS) and AirAsia decided to cancel several flights between Sabah, Sarawak, and Kuala Lumpur International Airport. AirAsia alone also confirmed that they had cancelled 16 flights from KLIA to Tawau and Kota Kinabalu. The eruption of Mount Ruang led to the evacuation of more than 11,000 people and triggered a tsunami warning as Indonesian officials feared that part of the volcano could collapse into the sea. Watch the eruption below, which created a ligtning storm — looks apocalyptic. Here’s the science explaining the lightning.

Apart from an erupted volcano, a full-blown war in the Middle East could also negatively impact the local aviation industry. According to Maybank Investment Bank Research (Maybank IB), Malaysia Airports Holdings Bhd (MAHB), the owner of most airports in Malaysia, might lose up to 26% of its earnings if Middle Eastern passenger traffic ceases. MAHB's Middle Eastern traffic accounted for 7% of international passenger traffic at Kuala Lumpur International Airport (KLIA) and 28% at Istanbul Sabiha Gokcen (Turkey) in 2019. Low-cost airlines such as AirAsia X could also be affected as these companies are sensitive to cost hikes such as increase in jet fuel prices. The price of Brent crude oil rose above USD90 per barrel when Iran launched a retaliatory drone and missile strike towards Israel.

Non-paying residents must now operate boom gates on their own
The Federal Court sided with the Parkville Residents Association (RA) and denied the Petaling Jaya City Council (MBPJ) appeal to overturn a Court of Appeal decision allowing non-paying members to operate boom gates themselves without the assistance of security guards. The apex court stated that the appellate court correctly applied a 2015 Federal Court ruling in Au Kean Hoe v Persatuan Penduduk D’Villa Equestrian as a precedent. 

Business

1. Axiata Group Bhd and India’s Bharti Airtel Ltd decided to merge their Sri Lankan operations
   Under the share swap deal, Axiata’s unit Dialog Axiata will acquire a 100% stake in Airtel Lanka, with an issuance equivalent to 10.355% of Dialog shares to Bharti Airtel. This deal is part of Axiata’s overall strategy to consolidate businesses, boost profits, and strengthen its balance sheet. Bharti Airtel is India’s second-largest mobile network operator.

2. From wood maker to teamaker
   Timber manufacturer Auro Holdings Bhd is diversifying itself into the food and beverages (F&B) business by securing rights from HK Heycha Ltd to operate the Chinese tea chain 'HEYTEA' in Malaysia, with the first store opened in December last year in TRX. The loss-making company expects that the F&B business will contribute over 25% of its net profit in the future. Auro has been in the red for several years but has managed to trim its net loss to RM5.65 mi for the financial year ended Feb 28, 2022 (FY2023) from RM17.38 mil in FY2022. View its financials here.
   Heytea attempted for an USD500 mil IPO in Hong Kong back in 2021, but did not materialise. The company saw remarkable growth in 2023 as its number of outlets globally surged by 280% year-on-year (that’s nearly 3x) surpassing 3,200 outlets and also became the first tea beverage brand in the sector to amass 100 mil members.

4. AROUND THE WORLD 🌎

About Palestine

•  Palestine wants a full UN membership
  The Palestinian request for full UN membership is due to be voted on by the UN Security Council this Friday, though it is expected that the US will block this vote due to its alliance with Israel. Should it pass, the UN would effectively recognise a Palestinian state. Of the 15 members of the council, as many as 13 are reported to be supportive of the motion, which would force the US to use its veto. The US has defended its actions in the UN by taking the stance that establishing an independent Palestinian state should happen through direct negotiations between the parties, not at the UN.

• Peace talks “exploited and abused”
  Qatar is reassessing its role as a mediator between Israel and Hamas, with Prime Minister Sheikh Mohammed bin Abdul Rahman Al Thani claiming Qatar has been exploited and abused, with its efforts undermined “by those trying to score political points”. Talks have stagnated, with Hamas publicly rejecting the latest offer from mediators, leading to Qatar openly questioning the chances of talks succeeding.

• Israel hijacking UNRWA
  The head of the United Nations Agency for Palestinian Refugees (UNRWA) has stepped up to warn of an “insidious Israeli campaign” to dismantle the agency. Philippe Lazzarini called for protection from the UN, stating it had food and clean water ready to go but was being denied permission to deliver the aid despite consecutive orders by the International Court of Justice to increase the flow of aid into Gaza. The agency saw funding from several Western nations cut off after it faced Israeli allegations that 12 of its staff participated in the October 7 attack, for which Israel has provided no evidence.

• Google fires workers over protest against Israeli deal
  28 Google employees were dismissed after participating in protests against Project Nimbus. Said project is a joint contract between Google and Amazon to provide the Israeli government with AI and cloud services, valued at USD1.2 bil. The protests took place in Google’s New York and Sunnyvale, California offices and involved a ten-hour sit-in. Employees involved were informed that “physically impeding other employees’ work” and preventing access to facilities are “clear violations” of Google policies. However, some reports indicate several of those fired were outside Google’s offices when the protests took place.

Nestle adds sugar to low- and middle-income nations
Human rights watchdog Public Eye released a report alleging Nestle of adding sugar to two of its best-selling baby-food brands in low– and middle-income countries, products which are sugar-free in its home country of Switzerland and its main European markets. The brands Cerelac and Nido are advertised as essential to a child’s healthy development in its main markets of Africa, Asia, and Latin America. These included, on average, nearly 4 grams of sugar per serving. Notably,  seven of 15 countries did not declare that there was added sugar. Paediatricians and child nutrition experts denounced this double standard, considering the WHO issued warnings that early exposure to sugar leads babies to develop a life-long preference for sugary products, increasing the risk of obesity and other chronic illnesses.

US debt binge is bad for the world
As US debt continues to build, it holds the potential to distort the global economy, according to the International Monetary Fund. IMF, in its latest Fiscal Monitor report, said it expects the US deficit (expenses > income) to more than triple in other advanced economies by 2025, projecting to hit 7.1%. As the US gets more indebted, it has to offer high-interest rates to attract more investors to buy its bonds. This then pushes up global interest rates, leading to higher funding costs in the rest of the world, highlighting and worsening any existing fragilities and risks in the various economies.
View IMF report: Fiscal Policy in the Great Election Year

Shorts

1. Russian election attacks on US have begun
   Microsoft revealed data showing Russian online campaigns to influence the US voter base have been ramping up over the past 45 days, though at a slower pace compared to past elections. Accounts, shown to be linked to Russia, are disseminating content aimed to divide US voters, and includes criticising American support of Ukraine. Microsoft also believes this activity could increase in the coming months as the November election draws closer.

2. Demand for luxury Swiss watches plunge in key markets
   Monthly Swiss watch exports fell 16% by value in March to USD2.2 bil compared to a year before. This represents the biggest decline seen by the industry since 2020 and is attributed to the plunging demand for premium and luxury timepieces in key markets. China, the second biggest market, saw demand drop 42%, plunging past pandemic lockdown levels, while shipments to Hong Kong, another key market, fell 44%. Higher interest rates, shaky economic growth, and geopolitical conflicts have led potential buyers to reconsider splurging on luxury timepieces, leading to a drop in demand across all price categories.

3. Apple CEO visits Singapore to end SEA tour
   After Vietnam and Indonesia, Apple CEO Tim Cook will be visiting Singapore to meet incoming Prime Minister Lawrence Wong, as well as outgoing PM Lee Hsien Loong, according to a source. Apple, which currently has three brick-and-mortar stores in Singapore and two in Thailand, will soon be opening Malaysia’s first Apple Store. Looks like Mr Cook ain’t visiting Malaysia.

FOR YOUR EYES 📺

1. Robotics company Boston Dynamics is back with a new update, demonstrating its latest version of Atlas. BD released a video a few days ago capturing its journey from day 1 developing Atlas. Earlier, it was rather scary to see Terminator developing in real-time, that one day, we humans will be ruled by robots. Now, looking at wars around the world, what’s worse than having robots whipping us is humans using these autonomous robots in warfare to kill other humans. At least with a robot overlord, it will unite humanity. against them robocops.

2. Before the robots burn down our forest, check out this epic relaxing ride through a rainforest in Jambatan Gantung Lembah Purba (check out its IG here), Indonesia. It’s about 2.5 hours ride away from Jakarta. Have a good weekend folks. Exercise more with your partners. Stay healthy.

Testing 1 billion, 2 billion 👇