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- ☕️ Abang Johari teaching Sarawakians “how to fish” instead of handing them out
☕️ Abang Johari teaching Sarawakians “how to fish” instead of handing them out
RM871mil allocated to cover ICPT surcharge for businesses. MISC looking to acquire a major stake in Bumi Armada. Burberry, Swatch suffer as luxury demand in China falls.
1. MARKET SUMMARY 📈
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/20d68ae4-2e1e-4b12-bc63-fa67d1a7472e/Screenshot_2024-07-16_at_7.34.19_AM.png?t=1721086467)
Information as of 0720 UTC+8 on Jul 16, 2024.
2. NUMBERS AT A GLANCE 🔢
The Health Ministry of Malaysia reported that 88% of Malaysians aged 50 and above have never been screened for colorectal cancer. Health Ministry Medical Development Division director Dr Mohd Azman Yacob expressed concern over these statistics, highlighting that colorectal cancer is the second most common cancer among females and the most common among males, according to the National Cancer Society of Malaysia. Dr Mohd Azman said there were about 3,000 new colorectal cancer cases annually. Early detection can result in a 90% survival rate for those diagnosed at Stage 1 and 2. So get yourself screened.
If you’ve been beating yourself up for not having invested in Nvidia before the AI rally, don’t. Let us introduce you to someone who took profit way earlier — like missing out on USD150 bil of capital gains kind of early. That person is Masayoshi Son, founder of the legendary SoftBank Vision Fund. Son sold his 5% stake in Nvidia after a perilous drop in the stock threatened his fund’s performance but had he held on, it’s worth at least USD160 bil. Context matters though, in the span of two months, from Oct to Dec 2018, Nvidia lost 50% of its value. It is a good lesson for us — if you want to enjoy the returns, you need to be able to stomach the drawdowns.
An original watercolour illustration for the first edition of JK Rowling’s "Harry Potter and the Philosopher's Stone" became the most valuable Harry Potter item ever sold, fetching USD1.92 mil at a US auction. This artwork sold for over three times its expected price. Decades earlier, the illustrator received a commission of just USD650 for the cover art. The watercolour painting depicts the young wizard Harry going to Hogwarts from Platform 9¾ at King’s Cross station. View it here.
3. IN MALAYSIA 🇲🇾
RM871mil allocated to cover ICPT surcharge for businesses
The Madani government is allocating RM871 mil to help lower the Imbalance Cost Pass-Through (ICPT) surcharge rates for businesses in Peninsular Malaysia for the second half of 2024. Deputy Minister Akmal Nasrullah announced that the surcharge for commercial and industrial users is dropping by one sen, from 17 sen to 16 sen per kilowatt-hour (kWh), from July to Dec. For those using low-voltage power, like certain agriculture users and water/sewage operators, the surcharge is now down to 2.70 sen/kWh. Those using medium and high-voltage power will see the 16 sen/kWh rate. For households, electricity rates remain unchanged for the rest of the year if you use less than 1,500 kWh.
In total, they’re covering RM1.312 bil in electricity subsidies this period, but as bigger companies benefit more from the previous blanket subsidies, the govt is shifting to a more targeted subsidy approach. RM16.52 bil was spent on subsidies in 2022, and RM7.14 bil in 2023.
On politics
LGE pleads innocence in Albukhary tax break revocation
Former finance minister Lim Guan Eng testified in his defamation lawsuit against Muhyiddin Yassin regarding the alleged cancellation of tax breaks for Yayasan Albukhary during Lim’s time in office. Lim claims he never saw anything about revoking the tax breaks during his tenure and such issues only came to his attention if there was an appeal. He also clarified that LHDN operates independently from the Ministry of Finance. Both PM Anwar Ibrahim and the MOF have supported that Lim did not cancel the tax exemption for Yayasan Albukhary.
Updates on RUU355
RUU355 (Bill 355) aims to expand the Syariah Court’s jurisdiction from fines, short prison sentences, and a limited number of lashes to a broader scope, excluding the death penalty– amending the Syariah Courts (Criminal Jurisdiction) Act 1965. The Conference of Rulers wants the changes to be made carefully to avoid perceptions of being rushed or weak. PM Anwar Ibrahim had met with Sultan Nazrin of Perak, who chairs the National Council for Islamic Religious Affairs (MKI), to discuss the bill, and so far met with no objections from the Sultan or the Conference of Rulers. The Madani government plans to present the negotiation results on Bill 355 to MKI next month, but it is yet to be finalised as discussions still need to happen “at an international level” (unclear on what that means..) and then with the AGC and Conference of Rulers as it involves matters like Islam, customs, and citizenship. An oldie but a goodie. Read: How Hadi’s Bill will impact everyone.
MISC looking to acquire a major stake in Bumi Armada
MISC Bhd is believed to be interested in acquiring a substantial stake in Bumi Armada Bhd, though still in early talks. Bumi Armada is a major player in the floating production storage and offloading (FPSO) sector– with their biggest shareholders including billionaire Tatparanandam Ananda Krishnan with 34.58%, PNB with 13.25%, and privately-held Saluran Abadi Sdn Bhd with 6.08%. Bumi Armada wholly owns three FPSOs and jointly owns four others, which makes them, in a nutshell, a major player. As of the end of March, their assets totalled RM11.59 bil and reported a net profit of RM240.54 mil for Q1FY24. MISC, partly owned by Petronas, is notable in the industry too, with over 100 vessels and a significant stake in various other companies. MISC posted a net profit of RM759.9 mil and RM3.64 bil in revenue for Q1FY24.
Abang Johari teaching Sarawakians “how to fish” instead of handing them out
As the saying goes, give a man a fish, and you feed him for a day; teach a man to fish and you feed him for a lifetime. According to Sarawak Premier Abang Johari, those who graduate with the Unified Examination Certificate (UEC) can enrol in state-owned universities for free starting in 2026. The universities included in this free education scheme are Curtin University Malaysia Sarawak Campus, Swinburne University of Technology Sarawak Campus, Centre of Technology Excellence Sarawak (Centexs), and i-CATS University College. In his speech, he used an analogy saying Sarawak has plenty of ‘fish’, like carbon trading and hydrogen, but they need the people to ‘catch these fish’. The free education scheme is an investment for the locals to stay competitive and help the economy.
Learn: What is UEC?
Shorts:
PSA: 14 roads in KL to close for the King’s installation
In lieu of the King’s installation, 14 roads in KL will temporarily close this Saturday, July 20. Roads involved are: Jalan Tun Razak, Jalan Kia Peng, Jalan Raja Chulan, Jalan Ampang, Jalan Sultan Ismail, Sultan Iskandar Expressway, Jalan Tuanku Abdul Halim, Jalan Semantan, Jalan Damansara, Jalan Istana, KL-Seremban Expressway, Jalan Kuching (southbound), Dato Onn Roundabout & Jalan Parlimen. Roads will close in stages starting at 8AM for the ceremony and later at 8PM for the Royal Banquet. Plan your journey accordingly, folks!
The Socks Saga meets its (almost) end
KK Supermart & Superstore Sdn Bhd and their supplier Xin Jian Chang Sdn Bhd were slapped with a fine of RM60,000 each by the Shah Alam Sessions Court after pleading guilty. KK Mart’s founders, Chai Kee Kan and his wife Loh Siew Mui, with three directors of Xin Jian Chang, were granted an acquittal and the prosecution dropped the charges against them after the Attorney General’s Chambers accepted their representation letters.
20 accounts frozen pending influencers’ investigation
MACC is on a roll. 20 bank accounts worth over RM740,000 were frozen as they dig into a case involving a married influencer couple and two others who are suspected of misusing public donation funds. The accounts belong to individuals and companies that allegedly received money from the public through an online fundraising platform. It seems like the MACC’s Anti-Money Laundering (AML) Division might freeze more accounts soon as the investigation progresses. The court has extended the remand for the couple and two others for three extra days.
4. AROUND THE WORLD 🌎
The Trump Turnaround
The assassination attempt on presidential hopeful Donald Trump has led to a surge of support for the former president, with Republicans calling out President Joe Biden and the Democrats for “creating a rhetorical environment conducive to the violence”. The failed assassination still supports several themes being pushed by Trump’s campaign team, primarily that he is a victim protecting US citizens against being persecuted by politics and that Trump will be an able leader in the face of Biden’s perceived inability to continue leading the country. Still, investigative authorities have yet to discover the motivation behind the attempt by the shooter 20-year-old Thomas Matthew Crooks.
Do you think the Secret Service yelled “Donald Duck” when the first shot was heard?
Beyond the political sphere, the main indices of Wall Street – The Dow Jones, S&P 500, and Nasdaq – rallied with investors believing that Trump will win his second term, with sentiment further boosted by hopes for a Fed rate cut to alleviate pressure. Another reported surge was the share value of Trump’s social media company, Truth Social, owned through Trump Media. Pre-market trading opened with shares rocketing up to 70%.
Bitcoin also rallied to a two-week high following the assassination attempt as crypto investors bought into the better odds for Trump. The presidential hopeful has presented himself as an advocate of cryptocurrency, having slammed the attempts by Biden’s administration to regulate the crypto sector. However, he has not offered details on his own proposed crypto policies.
Gaza Conflict Updates
An Israeli airstrike, purportedly targeting Hamas military chief Mohammed Deif and his deputy, struck a designated humanitarian zone in Gaza, leaving at least 90 dead with over 300 injured in the refugee tent area. The attack has been denounced by UN chief Antonio Guterres, with Hamas also denying that the strike killed Deif. Even Israeli PM Netanyahu admitted he wasn’t sure if the strike killed Deif.
As it stands, the Gaza peace talks have been halted after three days of intense negotiations failed to produce a viable outcome, with sources at the talks stating that Israeli mediators were only at the talks as a formality to placate public opinion. On the other hand, Hamas stated it has not withdrawn from ceasefire talks with Israel despite several attacks, including the strike on the tent complex, and instead accused Israel of trying to derail ceasefire deal efforts by mediators and the US by stepping up its attacks in Gaza.
Palestinian President Mahmoud Abbas of Palestine’s Fatah faction (as opposed to Hamas) has stepped forward to point fingers at Israel and the US for being responsible for the attack on the tent complex. However, he also accused Hamas of being party to the continued conflict due to Hamas “escaping national unity”, showing that tensions are again rising between the two Palestinian factions despite the efforts of Arab mediators led by Egypt. Hamas stated that, by Abbas’ statement, he “has chosen to be in the same trench with the occupation".
Business Highlights
Google parent in talks to buy cybersecurity firm Wiz in USD23 bil deal
Should the deal go through, it would mark the acquisition as tech giant Alphabet’s largest one to date. However, a source revealed that an agreement has not been reached and that it is still possible for talks to end without a deal. The acquisition of the cloud and cybersecurity firm – which was valued at USD12 bil during a May funding round – would bolster Google’s efforts to catch up to Microsoft and Amazon in the increasingly competitive cloud market.
Burberry, Swatch suffer as luxury demand in China falls
Watchmaker Swatch – which also makes Tissot, Longines, and Omega watches – reported a steep drop in first-half sales, leading to a 70% drop in earnings, while luxury brand Burberry announced a change of CEO following a 21% drop in retail revenue. Both brands pointed to a downturn in demand for luxury goods, particularly in the Chinese market. Chinese consumers have been watching their spending as China’s economy continues to miss the mark, with the nation reporting a second-quarter GDP growth of 4.7%, missing estimations of a 5.1% growth.
Shorts
Kenyan authorities arrest "serial killer" after gruesome discovery of mutilated bodies
The arrest of Jomaisi Khalisia follows the discovery of nine mutilated female bodies at a disused quarry turned rubbish dump, with police saying Khalisia confessed to having “lured, killed, and disposed of 42 female bodies” at the dumping site, starting from 2022 with his most recent murder dated to last week.Kuwait reports oil discovery worth three years of national production
The Kuwait Petroleum Corporation announced a giant oil discovery in the Al-Nokhatha field, east of the Kuwaiti island of Failaka. Oil reserves are estimated at 3.2 bil barrels, worth about three years of the nation’s entire production. Preliminary estimates of hydrocarbon reserves showed approximately 2.1 bil barrels of light oil and 5.1 tril standard cubic feet of gas.Veteran communist veteran Oli returns as fifth Nepali PM in five years
K.P. Sharma Oli, who heads the moderate Communist Party of Nepal, hopes to ensure political stability in Nepal, which has been politically unstable since a 239-year-old monarchy was abolished in 2008. Oli’s new government would be the country’s 14th, with the current term being Oli’s fourth.
5. FOR YOUR EYES 📺
Only MrBeast can pull this kind of stunt off — gathering mega star YouTubers to fight for USD1,000,000.
Flying is a highly carbon-intensive activity but contributes only 2.5% of the world’s carbon emissions because a very small percentage of the global population actually flies. Studies estimate that only about 10% of people worldwide fly in most years, explaining the relatively small contribution to overall emissions despite the high carbon intensity of aviation.
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Credits: Our World in Data