☕️ Anwar x Putin meeting at EEF

1. MARKET SUMMARY 📈

The US markets were closed in conjunction with Labour Day.

2. NUMBERS AT A GLANCE 🔢

RM718 mil in compensation was disbursed for work-related incidents by the Social Security Organisation (SOCSO) as of June this year, according to HR Minister Steven Sim. For comparison, total compensation under the Employment Injury Scheme in 2023 exceeded RM1.39 bil. During the same period this year, 41,278 accidents were reported, with half involving industrial accidents and the remaining related to commuting. 515 of these involved fatalities - 31.7% (163 deaths) due to industrial accidents and 68.3% (352 deaths) related to commuting. Separately, 6,443 traffic fatalities were recorded in 2023 (~18 deaths per day on average), according to Transport Minister Anthony Loke.

Port Klang, the second-largest port in Southeast Asia, comprising of Northport and Westports, advanced to 11th place in the 2023 rankings of the world’s top 100 busiest container ports, according to Llyod’s List (view list here). The port handled 14.06 mil TEUs (20-foot equivalent units), marking a 6.3% increase from the 13.22 mil TEUs recorded in 2022. This growth has elevated Port Klang to one of the top 3 largest transshipment hubs in Asia, excluding China, further signifying Malaysia’s increasing influence in international trade.

Europe recorded 4,637 attacks on its ATM, of which 714 (15.4%) were bombing attacks. That’s nearly 2 ATM bombings per day. The rise in incidents is now at their highest level in the past 5 years. In the US, an average bank ATM holds between USD50,000 and USD200,000, making it a considerable payout for a criminal if successful. In Europe, attacks are concentrated in Germany due to its fragmented instead of centralised banking network systems. As such, communication between banks is limited and incident reports are not effectively communicated among the banks. Experts opined that ATM bombings have grown in frequency partly because during the pandemic, people figured out they could get away with attacks when nobody was looking.

3. IN MALAYSIA 🇲🇾

Government lays out conditions for opposition to receive funding
The Malaysian government has outlined seven prerequisites before Perikatan Nasional (PN) MPs receive financial allocations for its constituents, according to PN's chief whip, Takiyuddin Hassan. The conditions include requiring all PN MPs to declare their assets, besides supporting the government until the end of the current parliamentary term. The memorandum of understanding (MOU) also addresses sensitive topics related to religion, race, and royalty, collectively known as the "3R" issues.

Takiyuddin expressed confusion over the relevance of these conditions to the allocation of funds, emphasising that PN, despite being in opposition, remains a legitimate parliamentary entity. He noted that previous administrations allocated funding to all MPs, irrespective of their political alignment, and questioned why asset declarations are now required from opposition MPs, a practice typically reserved for government officials.

The draft MOU was received from Deputy PM Fadillah Yusof's office on August 6, but discussions have been delayed as the draft was received during the recent Nenggiri by-elections. Takiyuddin indicated that a meeting would soon be held to review the conditions, with a decision expected by the end of the month. PM Anwar Ibrahim has stated that the issue of fund allocation should be straightforward, asserting that the conditions are standard in negotiations and democratic practices. The funding amount for opposition MPs remains undisclosed for now.

New Saga in SG4?
The four PN-led states- Terengganu, Kelantan, Kedah, and Perlis- have established a jointly-owned company named SG4 Group Sdn Bhd to promote economic collaboration and resource-sharing. Former PM Mahathir Mohamad serves as an advisor to SG4 and emphasizes that this initiative aims to uplift these economically disadvantaged states, who each own 25% of SG4. The Group will focus on five key sectors: infrastructure and logistics, trade and investment, agriculture and food security, education and human capital, and new revenue sources.

Mahathir highlighted the rich natural resources in these states, such as rare earth elements in Terengganu, Kelantan, and Kedah, and dolomite in Perlis, which can be processed for economic benefit. He clarified that SG4 is not intended to circumvent the federal government but rather to address the needs of states that have been overlooked in wealth distribution. SG4 executive secretary Takiyuddin Hassan noted that the company aims to attract foreign investment and create equitable wealth distribution among the states. It’s one thing to have resources and wealth, and it’s altogether another thing to properly govern it.

Shorts

1. Anwar to meet Putin at EEF
   PM Anwar Ibrahim will attend the Eastern Economic Forum (EEF) in Vladivostok, Russia, from September 3-6, where he intends to meet with President Vladimir Putin to discuss economic cooperation and Malaysia's independent position. Anwar's participation underscores Malaysia's efforts to strengthen international partnerships and explore economic opportunities with Russia.

2. MAS flight U-turn

   A MAS flight bound for Incheon Airport in Seoul had to return to Kuala Lumpur International Airport shortly after takeoff. Flight MH66 departed just after midnight on September 1 and returned around 1:30 AM, according to data hosted on Flightradar24. This has become an alarming trend for MAS; just 2 weeks ago, MH128 bound for KL from Melbourne had to divert due to engine problems.

3. MCMC blocks SMS messages

   Effective September 1, MCMC is implementing a directive to block SMS messages containing prohibited content; such content includes hyperlinks, personal information requests, and callback numbers. This measure aims to protect users from the increasing threat of SMS-based scams perpetrated by criminals impersonating legitimate entities. Members of the public who continue to receive such messages are encouraged to report them to the MCMC, as there are currently no options to access blocked SMS to prevent potential online fraud — here’s how to. 

4. AROUND THE WORLD 🌎

Israelis on strike, call for ceasefire NOW!
The ongoing Israeli protests, the largest since the start of the war, were sparked by the recovery of six dead hostages by Israeli forces. Israeli authorities said the six hostages were shot dead 48-72 hours before they were found. The protests are also accompanied by a general strike, called by Histradut, Israel’s largest trade union, which represents about 800,000 workers, (that’s about 8% of Israel’s 9.6 mil population) and backed by main manufacturers and entrepreneurs in the tech sector, effectively shutting down large parts of the country’s economy. 

The protesters are chanting “Now!” as they direct their anger at Israeli PM Benjamin Netanyahu, demanding that he bring the remaining hostages home by reaching a ceasefire deal, of which negotiations have been going on for months. Netanyahu has blamed Hamas, stating that “Whoever murders hostages does not want a deal”. Of course, Israel has been bombing the entirety of Gaza, where the hostages were held, for almost a year while negotiating for a ceasefire.

Even Netanyahu’s defence minister, Yoav Gallant, urged Netanyahu to conclude a ceasefire deal, echoing the people as he called for the political-security cabinet to convene immediately and reverse the decision made to insist on keeping troops in the Philadelphi corridor, a stretch of land along the southern edge of Gaza, which borders Egypt. Netanyahu’s insistence on keeping troops here to ‘prevent Hamas from smuggling weapons in’ has been seen as one of the major obstacles to a ceasefire deal.

US President Joe Biden, who has been pushing for a ceasefire, also went on record saying he thought Netanyahu was not doing enough to reach a ceasefire and hostage release deal with Hamas.

APAC Action

• Indonesian coffee chain wants SEA
  Indonesia’s Kopi Kenangan, Southeast Asia’s first F&B unicorn*, aims to expand aggressively in the coming years, according to co-founder and CEO Edward Tirtanata. The goal is to hit 3,000 sales points by 2028, triple the current number. Tirtanata also aims to raise at least USD100 mil in pre-IPO funding by 2028 and get Kopi Kenangan listed by 2029. The unicorn saw a revenue of USD106 mil in 2023, which the CEO expects to quadruple to USD430 mil by 2028.

  *Unicorn = private company with USD1 bil valuation

• Japan refuses four-day workweek

  The Japanese government’s initiative to reduce overwork and address labour shortages has met significant resistance. Three years in, only about 8% of companies in Japan allow employees to take three or more days off a week. However, employees are also hesitant to opt in, which is attributed to societal pressure for employees to put the companies before themselves. This spells trouble for Japan’s low birth rates and ageing population, as overworking decreases the chances of dating, marrying, and having children. Who’s got the time for more productive activities?

Tech updates

• Huawei plans to upstage Apple's new iPhone with product launch

  Huawei is looking to hold a product launch event mere hours after Apple’s annual iPhone reveal on Sep 10. Apple is expected to unveil its iPhone 16 lineup, but it remains unclear as to what Huawei might be launching. However, a company executive has posted on social media that it is an “epoch-making product” that is “leading, innovative, and disruptive”. The executive also described the product as “turning science fiction into reality”.
  
  Even though current CEO Tim Cook is not slated to leave any time soon, potential successors have already been identified, with the top two being COO Jeff Williams and this guy called John Ternus, Apple’s senior VP of hardware engineering.

• Tesla's sales of China-made EVs rise 3% in August

  The 3% increase year-on-year was pushed by a 17% increase in deliveries of Tesla’s China-made Model 3 and Model Y vehicles from July. This boost to EV sales comes as extended incentives are being offered to local buyers, with Tesla also gaining from winning over government backing. Tesla’s vehicles have won endorsements from several local governments, with China’s top auto industry association stating the data collection in Tesla vehicles in China was compliant with regulations, which could lead to Tesla vehicles being allowed to enter some government compounds they were previously banned from. Btw, Model Y Performance is on RM30k discount in Malaysia.

• Intel CEO to pitch plans to trim company

  Sources revealed that Pat Gelsinger, alongside other executives, will be presenting a plan to Intel’s board of directors later this month to trim the company, slicing off unnecessary businesses and revamping capital spending, in a bid to turn around the company. Intel’s latest quarterly results led to the firm pausing dividend payments and cutting 15% of staff to save USD10 bil. The tech giant reported a revenue of USD12.8 bil for the quarter, down 1%.

Shorts:

1. Iraq cracks down on lottery-based suicide cult
   The Allahiyah Movement, also known as the “Qurban” group, is thought to have formed in early 2020, with as many as 2,500 followers. Initial gatherings seemed innocent enough, similar to other Shia Islamic movements in Iraq. However, 2021 saw reports of young men associated with the group hanging themselves in religious buildings, which the group selected by drawing lots. The government has since cracked down on the group, arresting members across the country.

2. Iran probe finds bad weather caused ex-president's helicopter crash

   The helicopter crash in May was caused by the “complex climatic and atmospheric conditions of the region in the spring”, according to the final report of the Supreme Board of the General Staff of the Armed Forces. The helicopter was carrying then-president Ebrahim Raisi and his entourage, with his death led to snap elections. The report also noted there were no signs of sabotage in any of the helicopter’s parts and systems.

3. Australian ex-childcare worker pleads guilty to 307 counts of sexual abuse

   Former childcare worker Ashley Paul Griffith pleaded guilty to 307 charges of raping, sexually abusing, and exploiting 60 children, many of whom were under the age of 12, between 2003 and 2022. It took the judge over two hours to read out the charges, with police accusing him of being one of Australia’s worst-ever paedophiles after charges were made public last year. He was initially faced with 1,623 offences against 91 children, though some charges were dropped. He was first arrested in 2022 for making child porn.

5. FOR YOUR EYES 📺

1. Happy belated 94th birthday, Warren Buffett! The legendary investor was born on a day before Merdeka on Aug 30 1930. His company Berkshire Hathaway crossed the USD1 tril market cap threshold just 2 days before the “Oracle of Omaha” birthday. This also makes Berkshire the first non-tech company in the US to achieve this milestone. A compilation below of the best content about Buffett and Berkshire.

2. Communism, socialism, capitalism and corporatio — all explained with 2 cows.