☕️ Auditor-General’s latest Series 3 report highlights serious fiscal issues - same sh*t, different year

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

A study by the Credit Counselling and Debt Management Agency (AKPK) found that financial abuse, at 4.8%, is the most prevalent form of Elder Abuse and Neglect, surpassing psychological (3.4%), physical (1.2%), neglect (1.1%), and sexual abuse (0.3%). The 2023 report also found that financial abuse frequently occurs alongside psychological abuse. This aligns with findings worldwide. What’s more alarming is that mortality rates among victims of financial abuse are higher compared to those of non-victims. Over a six-year follow-up, 27.1% of respondents passed away, with deaths disproportionately higher among those who suffered financial or combined financial and psychological abuse.

Between 2021 to 2023, the total cost of medical and health insurance/takaful (MHIT) claims jumped 73%, outpacing the 21% growth of premiums collected in that time. As a result, Malaysians saw an increase in their premiums last year, leading to our national bank introducing interim measures to ease the financial burden but ensure continued coverage. However, these measures are temporary and short-term, with the long-term solution addressing the reasons behind the high premiums. Arguably, no single party is to blame for the high premiums, yet everyone shares the blame. Still, the cost of private healthcare, which MHIT covers to some degree, is unregulated, leading to varying prices. A reform of the private healthcare sector is needed. To that end, the RESET blueprint, a collaborative effort by the Finance Ministry, Health Ministry, Bank Negara Malaysia, and key stakeholders, looks to curb rising medical inflation and reform the system.

Happy birthday to the richest man in Malaysia, Tan Sri Robert Kuok! The founder of the Kuok Brothers Group who is also known as the Sugar King, celebrated his 102nd birthday on October 6. Regarded as one of Asia’s most influential businessmen, his empire spans multiple sectors. From sugar, flour, and cooking oil to hotels, property, and IT, his businesses extend across the world, with listed companies in Malaysia, Singapore, and Hong Kong. Forbes listed the tycoon’s net worth at USD12.1 bil (RM51 bil), making him the 195th richest man in the world as of 2025. Described as energetic and sharp-minded even at his age, the Sugar King is currently supporting his grandson in leading a data centre development company which aims to double data centre capacity in Malaysia to 240 megawatts (MW).

3. IN MALAYSIA 🇲🇾

Sabah state assembly dissolves - state election incoming
It is official, folks. Sabah Chief Minister Hajiji Noor has announced the dissolution of the Sabah state assembly, paving the way for the 17th state elections to be held within 60 days (latest by December 5). The state elections will see 73 seats being contested by various political parties with the remaining 6 seats to be appointed by Sabah’s Governor and former Sabah state chief minister) Musa Aman. Issues such as the Sabah mining scandal (which has been linked to a number of key Sabahan politicians) and Zara Qairina’s tragic death are expected to take centre stage during the campaigning period.

One major issue plaguing the ruling Gabungan Rakyat Sabah (GRS) coalition is Parti Solidariti Tanah Airku (STAR) and Sabah Progressive Party’s intention to exit GRS. Due to prior disagreements with GRS cooperating with Pakatan Harapan, STAR President Jeffrey Kitingan led his party to exit the coalition, only for 2 of STAR’s deputy presidents and 3 of its assemblymen to declare their support for GRS.

Meanwhile, Sabah’s main opposition bloc Warisan has decided to fly solo, dispelling rumours of potential alliances. On the other hand, the Perikatan Nasional coalition from Peninsular Malaysia (comprising Bersatu and PAS) has yet to reveal its Sabahan chief minister candidate.

Perhaps former Parliament speaker and Sabah National Organisation President Pandikar Amin Mulia made a valid point when he said that choosing to rely solely on local parties was “politically unrealistic” and would not change the balance of power at the federal level, where the major decisions were made.

Auditor-General’s latest report highlights serious fiscal issues
The 2025 Auditor-General’s Report Series 3 (full report here) revealed some shocking facts in regards to the government’s expenditure, reporting that 157 projects across 18 ministries under the 12th Malaysia Plan were delayed as of December 31, 2024. In short, as the saying goes - same sh*t, different year. Here’s a breakdown of the key reveals:

• Education Ministry holds record for highest delayed projects - The ministry recorded the highest number of critically delayed projects under the 12th Malaysia Plan with a total of 46. Notably, one of these projects included the construction of a new classroom school, hostel and teachers’ quarters at SK Metalun, Sarawak, which also recorded the longest delay with 10 Extensions of Time totalling 785 days (2.15 years).

• Mismanagement of government vehicles under concession - The AG reported that as of Dec 31, 2024, a total of 6,028 vehicles were delivered between 1 and 508 days late, exceeding the 60-working-day delivery period. Also up to the time of the audit, there were no records indicating that any penalty claims had been made against the concession company, with uncollected penalties estimated at over RM54.5 mil.

• Malaysian Maritime Enforcement Agency’s maintenance fund allocation - RM229.9 mil or over 60% of the Malaysian Maritime Enforcement Agency’s maintenance funds in 2024 was spent on vessels over 30 years old, while RM78 mil or 54.4% of the funds were used to maintain boats between 11 to 20 years. The report highlighted that dependence on older assets increased maintenance risks and reduced the agency’s operational efficiency, and indicated systemic issues in its financial compliance and asset management.

• Eastern Sabah Security Command base completion way behind schedule - The Eastern Sabah Security Command forward operating base located in Pulau Mabul is only 41% complete despite being scheduled for completion in November 2024 (nearly 1 year ago). The delay was cited to have been caused by a delay in the construction of living quarters for Esscom staff, which in turn delayed the other aspects of this project. What’s even shocking is that the base was approved under the 11th Malaysia Plan (tabled by former Prime Minister Najib Razak back in 2015).

Law Minister: Separation of Attorney-General and Public Prosecutor’s roles to happen in 2026
Minister in the PM’s Department (Law and Institutional Reform) Azalina Othman confirmed the Malaysian government has set a clear timeline to fully separate the roles of the attorney-general and public prosecutor. This reform would happen in 2 stages - an amendment to the Federal Constitution to allow for the separation of powers, followed by the tabling of 2 bills - covering the establishment of the office of an independent public prosecutor, as well as remuneration of the attorney-general and the public prosecutor. If you are wondering why the separation of the attorney-general and public prosecutor is such a big deal, it boils down to both of their different roles - the AG serves as the legal advisor to the government of the day, while the public prosecutor is the principal prosecuting authority in the country and acts as an independent lawyer in criminal cases.
To learn more about the importance of separating these roles, read this piece by think tank IDEAS.

6 Malaysian states recognised as earthquake risk areas
Deputy Minister of Natural Resources and Environmental Sustainability Huang Tiong Sii stated that studies conducted by the Department of Mineral and Geoscience Malaysia (JMG) through active fault mapping and the Malaysian Seismotectonic Map found fault zones in six states that are vulnerable to earthquakes - Pahang, Terengganu, Perak, Negeri Sembilan, Sabah and Sarawak. JMG and the Malaysian Meteorology Department are working together to ensure a more effective early warning and disaster response system, with measures including the strengthening of 12 seismic stations nationwide, building 2 new stations in Johor and upgrading 4 new stations across the state.

4. AROUND THE WORLD 🌎

Netanyahu’s war politics
Israeli PM Benjamin Netanyahu is facing a backlash from his ultranationalist allies after he embraced US President Donald Trump’s 20-point plan to end the war. The plan calls for Gaza’s demilitarisation and rules out any future governing role for Hamas, though it allows its members to remain if they renounce violence and surrender their weapons. Hamas responded positively to the plan and is ready to negotiate, but the thought that Hamas would continue to exist enraged the ultranationalists. If the far-right ministers in Netanyahu’s government feel he has made too many concessions to end the war, the coalition could collapse a whole year before the next election, which must be held by October 2026. However, insisting on war would antagonise the families of hostages while alienating a war-weary Israeli public and the country’s international allies.

In other borders

French government collapses 14 hours after forming with PM’s resignation
France’s new PM, Sebastien Lecornu has resigned along with his government, 27 days after he took on the position and about 14 hours after he announced his cabinet line-up. This makes his administration the shortest-lived in modern French history. The resignation came after both allies and foes threatened to topple the new government, with Lecornu saying that meant he could not do his job. Opposition parties immediately urged President Emmanuel Macron to either resign or call for a snap parliamentary election. Lecornu marks Macron’s fifth PM in two years. Macron, in his ascent to power in 2017, had reshaped the political landscape of France, leading to a fragmented parliament since 2022. France has rarely suffered a political crisis so deep since the creation of its current system of government in 1958. France is not used to building coalitions and finding consensus.

Japanese shares hit new high on incoming PM’s expansionist fiscal plans
The Nikkei 225 Index soared 4.75%, breaking through three psychologically key thousand-point barriers for the first time ever. Conversely, the yen and long-term bonds tumbled, with the former falling almost 2% against the dollar and trading at an all-time low versus the euro. This is due to the new leader of the Liberal Democratic Party, Sanae Takaichi. She is all but confirmed as the new Japanese PM, and was considered to have the most expansionist fiscal and monetary agenda among the five candidates in the party elections to replace PM Shigeru Ishiba.

Stakes and prizes

AMD inks AI-chip supply deal with OpenAI, offers option to take a 10% stake
The chipmaker has signed a multi-year deal to supply AI chips to ChatGPT parent OpenAI that would bring in over USD100 bil over four years to AMD. The deal also has AMD offering OpenAI an opportunity to buy up to about 10% of the chipmaker. Following the news, AMD’s shares surged up to 38% ahead of the opening bell, giving it a market cap of USD368 bil. According to OpenAI CEO Sam Altman, the deal will help the AI firm build enough infrastructure to meet its needs. AMD’s share offer comes in the form of a warrant that gives OpenAI the ability to buy up to 160 mil AMD shares for one cent each over the course of the chip deal. Circular economy goes round and round. 

Scientists awarded Nobel Prize for discovering how human immune system identifies friend or foe
A team of three researchers shared the 2025 Nobel Prize in Physiology or Medicine for their discoveries explaining how the immune system distinguishes between hostile infections and the body’s own cells. The team discovered the presence of security guards of sorts that eliminate parts of the immune system that could attack the body, with their work already being used to develop new treatments for autoimmune diseases and cancer. The winners also shared a prize fund worth SEK11 mil (USD1.2 mil).

Shorts

1. Hundreds of trekkers escape sudden blizzard near Mount Everest
   Despite unusually heavy snow and rainfall pummeling the Himalayas, rescuers have safely guided hundreds of trekkers stranded by a blizzard near the eastern face of Mount Everest. So far, 250 trekkers have reached the township of Qudang, while contact has been made with the remaining trekkers, who number above 200.

2. Durga Puja installation crosses line with Air India tragedy theme

   A festival installation, or pandal, displayed during the recent Durga Puja celebrations has sparked outrage and drawn backlash. The brilliant minds who designed the pandal decided to make it a reimagining of the Air India Flight 171’s tragic crash. The pandal itself depicts half of an aircraft lodged into a structure. See the insensitive display here.

5. FOR YOUR EYES 📺

1. Review of Proton’s most affordable EV, e.MAS 5. Expected price range of RM60k-80k.

2. Probably our first-ever feng shui content. Not a believer, but the below has practical explanations - it’s just creepy.

sarajaneho

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3. If Queen composes Huntr/x’s Golden.

there_i_ruined_it

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