☕️ Bloomberg breaks down the wealth of Malaysia's new king

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

How are your New Year resolutions coming along? Are meditation apps not working their magic on you? Well, you may want to consider this hobby — freediving. The sport is now growing in popularity around the world, with over 20,000 people having been certified as freedivers in recent years. Scuba Schools International (SSI) has seen a steady 10% annual increase in the number of individuals receiving their first freediving certification. The practice of freediving has been linked to several mental and therapeutic benefits. A study by academics at Atilim University in Turkey in 2013 found that individuals who practice freediving tend to exhibit lower levels of stress and anxiety compared to those who do not.
Watch trailer: The Science of Freediving (Netflix)

USD2.1 bil (RM9.93 bil) — the size of the whale-watching industry. An estimated 13 mil people go whale watching every year, but the odds of it are rather low. Whale conservationist Ted Cheeseman said on most of these trips, people only get to see 2% of the whale for 2% of the time. In order to encourage people to go whale watching, HappyWhale, a research company, has developed a unique platform that allows users to upload spotted whales onto its website. The platform uses artificial intelligence (AI) software to search through its extensive database of over 70,000 whales and can identify the exact species of the whale in the uploaded picture.

A recent survey conducted by the Japan External Trade Organization (Jetro) revealed that 64% of Japanese companies in Malaysia are struggling with a worker shortage. The survey, which covered approximately 300 Japanese companies in Malaysia, further indicated that this shortage is primarily affecting the manufacturing and retail sectors. Interestingly, the survey also found that over 50% of Japanese companies in Malaysia are considering expanding their businesses over the next one to two years despite this labour shortage issue.

3. IN MALAYSIA 🇲🇾

Aman Palestin strikes back
Regarding the alleged misappropriation of RM70 mil by Aman Palestin, the humanitarian body has filed for a judicial review against the Malaysian Anti-Corruption Commission (MACC) and the Malaysian Government's action of freezing 41 bank accounts. Aman Palestin stated that the freezing of those accounts amounting to RM15 mil has led to the dampening of the organisation’s effort to provide aid to the victims of the Hamas-Israel war in the Gaza Strip.

In another MACC-related news, the anti-corruption body has frozen several bank accounts holding tens of millions of Ringgit, belonging to a ‘Tan Sri’, in regards to a MACC investigation into an RM4 bil government fleet supply and management contract. Earlier this month, the house belonging to the ‘Tan Sri’ was raided by MACC.

Putrajaya rolled out new things

1. Diesel subsidy fleet card pilot project — In a move to study the provision of subsidised diesel quotas to the land transport (goods) sector, government spokesman Fahmi Fadzil announced that the Ministry of Domestic Trade and Cost of Living has initiated the fleet card pilot program for diesel subsidies, effective on Thursday. The six selected goods companies for the pilot project are Perceptive Logistics Sdn Bhd, Multimodal Freight Sdn Bhd, Mun Chuen Transport Sdn Bhd, Tan Swee Hee Sdn Bhd, Sim Yew Enterprise Sdn Bhd and Rantau Panjang Haulage Sdn Bhd.

2. Migration Repatriation Program — Home Minister Saifudin Nasution Ismail said that his ministry will launch the Migration Repatriation Program on March 1. The program enables undocumented foreigners to be sent back to their home countries without being prosecuted after the migrants have settled any outstanding compound. One interesting fact that Saifudin said during his announcement of the program is that 77% of our foreign labour comes from Nepal, Bangladesh and Indonesia.

3. While talking about migrants, recently, the Negeri Sembilan state government has announced the banning of foreign workers from living in residential areas. The local government development, housing and transport committee chairman, J Arul Kumar, said that employers have until the end of the year to relocate their workers to commercial zones or centralised living quarters (CLQs). Arul said the CLQs built must be fenced, constantly monitored and equipped with basic facilities.

4. New electricity tariff study — Deputy PM II cum Energy Transition and Public Utilities Minister Fadillah Yusof said that MyPower Corp, a special purpose agency created to organise the key reforms of the Malaysian Electricity Supply Industry (MESI) initiative, is initiating a study to reform the electricity tariff structure that will reflect the actual cost of electricity supply. The new tariff structure is slated to be adopted by 2025.

Business news

1. Malaysia-based renewable energy developer and one of the largest in Southeast Asia Ditrolic Energy Holdings Sdn Bhd has forged a partnership with BlackRock’s Climate Finance Partnership (CFP) that led to the securing of RM3.1 bil in commitments from a global consortium of investors to support Ditrolic’s expansion plan. The said expansion plan includes the realisation of 1GW+ of solar projects in Asia and the investment into Ditrolic’s flagship 360° Clean Energy Solution, EnerLoop, as well as integration of technologies such as Carbon Tracking, Battery Energy Storage System and Green Electricity Sales.

2. TotalEnergies SE agreed to take over OMV AG’s 50% stake in SapuraOMV worth RM4.2 bil, which will further anchor TotalEnergies’ presence in the region. Currently, SapuraOMV has production and development assets in shallow waters off Malaysia, as well as exploration interests in Mexico, Australia and New Zealand.

3. Bursa Malaysia Bhd is confident that the bourse operator can capture 42 initial public offerings (IPOs) in 2024, even though Bursa failed to meet its 39 IPOs target in 2023. Despite the bourse operator's failure to meet its IPO quantity target in 2023, it did exceed the IPO market capitalisation target of RM10 bil by recording RM13.6 bil in 2023. This year, Bursa Malaysia is setting a RM13 bil goal of total IPO market capitalisation.

Shorts

1. Communications Minister Fahmi Fadzil reiterated that the planned concert by Ed Sheeran on February 24 will proceed as scheduled. Fahmi said that he respected the Penang Mufti’s call to boycott the concert as Ed Sheeran is a strong LGBT supporter, but Fahmi backed the Government’s decision to proceed based on the consultation with the Committee for the Application for Filming and Performance by Foreign Artistes. The committee involves 16 agencies to decide on the application for any foreign artist performance. The Malaysian Islamic Development Department and Home Ministry are among the 16 agencies.

2. Amidst the rumours, Petronas has dismissed the talk of a potential return of the Sepang Circuit to the Formula One calendar in 2026. The national oil and gas company confirmed that no discussion has been conducted on the matter. The Formula One last featured the Sepang Circuit in 2017 before Sepang withdrew from organising the sport due to high costs and dwindling ticket sales. Another shocking F1 news - read further below.

4. AROUND THE WORLD 🌎

Elon Musk’s pay cut, USD55.8 bil ‘poorer’
A Delaware judge ruled to strike down Elon Musk’s record-breaking USD55.8 bil pay package, calling it an “unfathomable sum” that was unfair to shareholders after the lawsuit was brought by a shareholder who called the largest-ever pay package over the top. Absent this pay package, Musk will be poorer by USD56 bil, dropping his net worth to USD154.3 bil, making him the third-richest person in the world. The ruling means Tesla will need to come up with a new compensation plan for Musk, although it can appeal. During the trial, Musk argued that his compensation would allow him to fund his interplanetary ambition. 

In 2018, Musk was given a 10-year grant of stock options subject to him hitting 12 targets — the structure of the pay package here (Tesla has removed it from its site). Musk achieved all 12 targets five years ahead of schedule in 2023, prompting the judge to question whether the board ever asked if such a gargantuan compensation plan is necessary for Tesla to retain Musk to achieve its goals. 

The judge’s ruling is 201 pages long — read it here if you are curious over the technicalities of Musk getting poorer.

Tech investments: First unicorns of its industries

• The first AR unicorn: Xreal
  Xreal, the Alibaba-backed augmented reality (AR) glasses startup raised USD60 mil in new funding, valuing it at more than USD1 bil. The startup has raised a total of USD300 mil since its founding in 2017. This new round made Xreal the first company to achieve unicorn status in the AR glasses industry, the company claims. What is AR? Think Iron Man’s helmet — overlaying digital content over the real world. Since 2017, it has shipped 350,000 AR glasses. Its latest model, the Air 2 Ultra (buy it here, product review here), ships in March at a starting price of USD699 (RM3.3k), a fraction of Apple’s Vision Pro which sells for USD3,500 (RM16.5k). 

  Despite the price, Apple has sold around 200,000 Vision Pro headsets, translating to revenue of at least USD700 mil. Check out the Vision Pro demo in the promotional video below - the features and experience seem mindblowing (the video is made by Apple btw, so reality could differ!). 

• The first (potential) humanoid robotics unicorn: Figure AI
  Microsoft and ChatGPT maker OpenAI are said to be funding Skynet Figure AI, a humanoid robotics startup up to USD500 mil, which could value it at USD1.9 bil, potentially making it the first humanoid robotics unicorn. The company was founded only in 2022 and staffed by top roboticists from Tesla and Boston Dynamics (maker of robot doggos). Figure AI signed a partnership with BMW earlier this month to trial its humanoid robots in its automotive production. Watch its robot making coffee here.

New discovery in the world of animals and plants

• Why insects are attracted to artificial light?
  Scientists might have discovered the answer after so long. They used high-speed cameras and motion capture to observe flying insects like butterflies, moths and dragonflies at night and noticed that the insects would turn their back toward the light, and if the light was below or horizontal to their flight path, it often caused them to fly in circles or crash. This suggests that the light source is used as a way to orient themselves to the sky from the light above, called dorsal light response. When an artificial light is introduced, it could cause confusion to these insects. That said, it’s still not clear what attracts them to artificial light from a far distance. Read the research here. 

• How plants ‘speak’ with one another to warn of danger
  When danger is near, animals communicate among themselves. Just like animals, plants also do communicate but not through sound. Plants release chemicals that they can transmit through the air, which to us humans smell like freshly cut grass to us. For the first time, scientists have captured this ‘conversation’ via camera, which captured healthy plants that received these warning messages lit up when it detected the chemicals under special microscopes. These types of chemicals are known as volatile organic compounds. Some plants were harmed in this study in the name of advancing science. Read the research here.

Shorts

1. Enhanced Games - Olympics on steroids, literally
   The Enhanced Games announced that it has raised funding, including investors such as PayPal and Palantir co-founder Peter Thiel. It welcomes the use of performance-enhancing drugs, “renovating the Olympic model for the 21st century”, it said in its press release. The organisation on its website described itself as believing in the use of “medical and scientific process of elevating humanity to its full potential”. We are starting to imagine Shaolin Soccer at Bukot Jalil Stadium. 

2. Social media giant CEOs grilled over online child safety
   CEOs from Meta, TikTok, X, Snap and Discord were grilled by US lawmakers over the dangers that children and teens face using social media platforms. Lawmakers are accusing these platforms of not doing enough to protect minors, such as blocking sexual predators and preventing teen suicide. A highlight of the testimony - a US senator kept pressing TkTok CEO Chew Shou Zi about his links with the Chinese Communist Party, although Chew repeatedly asserted that he is a Singaporean - watch here.

3. Shocking F1 Move: Hamilton to leave Mercedes for Ferrari
   The 7-time world champion will leave Mercedes after this season and join Ferarri, replacing Carlos Sainz, for the 2025 Formula 1 season. He is the most successful driver in F1 history with 103 wins and 104 pole positions, though he has not won a race since Dec 2021. Michael Schumacher is the only other driver with 7 world titles.

Weekend read: The Billionaire Sultan Set to Gain Even More Power in Malaysia
Bloomberg’s cover story estimates the family of the Sultan of Johor to be worth a massive USD5.7 bil (RM26.9 bil). This would rank him and his family #4 in Forbes Malaysia Rich List 2023, ahead of Ananda Krishnan. A huge portion of their wealth is attributed to prime land in Singapore worth USD4 bil (RM18.9 bil) - Tyersall Park, a land size almost 3x the size of White House grounds next to the Botanic Gardens. Read on to see a further breakdown of their wealth.

5. FOR YOUR EYES 📺

1. As Malaysia awaits an announcement from the Pardons Board, Douglas Lim’s Pandans Board is drafting an announcement for an altogether different issue.

2. Malaysian students did not fare well in the 2022 PISA education assessment. What’s happening with our current education system?

3. This is impressive — Coldplay performed Yellow with sign language interpreters, providing accessibility to their performance to hearing-impaired concert-goers in Singapore!