☕️ Communications Minister ready to name and shame telco CEOs

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

43.5 mil traffic summonses, totalling RM6.5 bil, remain unpaid nationwide, according to Bukit Aman. This is part of a larger total of 135.9 mil summonses worth RM20.3 bil issued for traffic offences since 1990. One-third, wow. In 2024 alone, 4.3 mil summonses worth RM646.1 mil have been issued, primarily for offences such as obstructing traffic and disregarding traffic signs.

In 2021, Russia exported approximately 200 bil cubic meters (bcm) of natural gas, with 69% of this volume delivered via pipelines to Europe. This reliance on pipeline infrastructure has posed challenges, especially as geopolitical tensions have affected traditional supply routes. To adapt, Russia has been increasing its production of liquefied natural gas (LNG), enabling it to ship gas to alternative markets beyond Europe via an ultra-modern export facility, Arctic LNG 2 — but this has also hit a snag as the sanctions have deprived Arctic LNG 2 of key technology, tankers and clients.

21 concerts featuring international artists are expected to be held in Malaysia next year, with an anticipated 160,500 attendees, according to the Communication Ministry. This projection is based on pre-application records from event organizers as of October 31. The ministry expects these events to generate an economic impact of RM80.25 mil, benefiting sectors such as hotels, rentals, transport, and food. Radiohead? Nurul Izzah did say she intended to bring Radiohead to perform in Malaysia, but that was six years ago.

3. IN MALAYSIA 🇲🇾

PADU registration opening again for RON95 subsidy
The second phase of registration for the PADU program will commence after the Cabinet approves some key eligibility criteria that are still under refinement, according to Economy Minister Rafizi Ramli. Ongoing discussions between the Ministry of Economy and the Ministry of Finance focus on finalizing these criteria, particularly concerning the targeted RON95 fuel subsidy. After the Cabinet agrees on the eligibility criteria, the Ministry of Economy will announce a timeline for reopening PADU registration.

Rafizi noted that the initial registration period from Jan to March that saw approximately 55% household coverage, many high-income earners chose not to register, believing they wouldn’t qualify for subsidies, while low-income families made up the majority of registrants. However, the government has since announced that the RON95 subsidy cutoff begins with the T15 group and now expects those in the M40 to register in droves, according to the Minister. The first phase of PADU recorded over 10.5 mil individuals updating their information.

Petronas Chemicals Group (PCHEM) sinks into the red for the first time since its listing 14 years ago
The third quarter of FY2024 has proven rough for PCHEM in an exchange filing, as it reported a net loss of RM789 mil, its first-ever quarterly loss since going public more than a decade ago. PCHEM’s poor performance was primarily attributed to an unrealised foreign exchange loss totalling RM1.1 bil - the company would have posted an estimated profit after tax of RM352 mil without these exchange rate fluctuations.

Here’s when a stronger MYR has an adverse impact. Managing director, Mazuin Ismail, stated that the depreciation of the US dollar adversely affected the company's financial performance as PCHEM’s investment in partnership with Saudi Aramco in Pengerang Petrochemical Company Sdn Bhd (PPC), is conducted in USD. If the US dollar were to strengthen in the coming months, there could be a partial reversal of the unrealised losses experienced in Q3. Despite the losses, PCG saw an 18% year-on-year increase in revenue to RM7.99 bil, driven by higher sales volumes and product prices. Their plant utilization rate also improved significantly, rising from 15% to 92%. View earnings announcement here.

Communications Minister ready to name and shame telco CEOs!
Fahmi Fadzil has called for an overhaul of Phase 2 of the National Digital Network (Jendela) initiative to enhance its effectiveness. Launched in 2020, Jendela is a non-commercial government initiative aimed at improving telecommunications coverage and service quality, particularly in rural areas where access remains a challenge. 

Phase 1 was riddled with concerns - in Sabah, for example, only 215 (56.3%) of the planned 382 towers were completed, of which only 130 towers were ‘on air’. Some completed towers have remained inactive for over nine months, according to Fahmi, who criticized major telco companies for their lack of punctuality and commitment. As a repercussion for failing to deliver, Fahmi is ready to name and shame the CEOs of these telcos. Hold them accountable!

He also plans to instruct the Malaysian Communications and Multimedia Commission (MCMC) to inform all MPs and ADUNs about which telecommunications companies have failed to complete their assigned work after tower construction. 

Posthumous acquittal for Daim Zainuddin
The criminal charge against the late former finance minister Daim Zainuddin for failing to declare his assets has been dropped following his death. Sessions Court judge Azura Alwi granted a discharge and acquittal after the prosecution decided not to pursue the matter, stating that Daim's bail of RM280,000 is void and will be refunded.

Interestingly, Daim's counsel expressed that his client’s death wish was for the trial to continue, emphasizing the importance of clearing his name from what he perceived as baseless and politically motivated charges. In a statement on Tuesday, Daim’s widow Na’imah Abdul Khalid gave a press statement asking for the continuation of the case, as she was confident Daim would be exonerated. The prosecution, however, argued that it was within their discretion to discontinue the case, according to the Federal Constitution.

Shorts

1. New IC in final phase of development

   The upgraded identity card set to replace the current design introduced in 2012 is in its final phase of development, according to Deputy Home Minister Shamsul Anuar. The new design is modernized by incorporating more laser engravings and advanced holograms, in line with the latest security developments. The new IC design is hoped to curb identify fraud, misuse, and data leaks.

2. You might have to pay to get a physical copy of your driving license next year

   As driving licenses become digitized in the myJPJ app, people who still want a physical license might be required to pay for one, according to Transport Minister Anthony Loke. The fee has not been disclosed. The myJPJ app looks promising though, as it has facilitated over one million road tax and license renewals, with revenue reaching RM120 million.

3. Heavy rain for East Coast

   MetMalaysia has issued a severe continuous rain warning for Kelantan, Terengganu and Pahang until Nov 23. The affected areas in some states are as below:

   • Pahang: Jerantut, Kuantan, Pekan, Rompin

   • Kelantan: Tumpat, Pasir Mas, Kota Bharu, Jeli, Tanah Merah, Bachok, Machang, Pasir Putih, Kuala Krai

4. AROUND THE WORLD 🌎

A potential truce, and Netanyahu's cash incentive

An Israel-bound envoy
US envoy Amos Hochstein will be travelling to Israel in a bid to secure a ceasefire between Israel and Lebanon’s Hezbollah, following additional progress in talks with Lebanon’s Parliament Speaker. This also follows both sides agreeing to a US ceasefire proposal, though both had comments to make on the initial draft. Hochstein believes there is a “real opportunity” to end the conflict, and that a ceasefire is “now within our grasp”.

Big cash rewards and a safe exit
Meanwhile, Israeli PM Benjamin Netanyahu is now offering a cash reward of USD5 mil (RM22.36 mil) and a safe way out of Gaza as incentives for each captive released from Gaza and those that help free Israelis held by Hamas, with the safe exit also including the helper’s family. He announced this during a visit to Gaza to view the IDF’s Netzarim Corridor, where he also promised that Israel “will bring them all back”. Israel estimates that about 101 captives remain in Gaza, though about one-third are believed to be dead. The offer also comes as mass protests in Israel call for the return of the captives and a ceasefire with Gaza, though Netanyahu has been adamant that a military option is the only way to bring the captives home. So what was that bit about Israel having destroyed Hamas’ military capabilities and that Hamas will not rule Gaza after the war, then?

Civilian harm discussions?
Senior US and Israeli officials will be holding talks to discuss concerns over civilian harm in Israel’s war in Gaza, with the first information-gathering talk to happen in early Dec. This follows US officials identifying nearly 500 potential incidents of harm to civilians in Gaza due to US-provided weapons. A step forward, maybe, but it won’t bring back the children who lost their lives in the conflict.

Do something, Pope Francis!
Iranian President Masoud Pezeshkian called on the religious leader to “encourage world leaders, especially Christian governments” to stop the “criminal Israeli regime” from continuing its aggressions. The message was delivered by an Iranian delegation participating in a religious dialogue event at the Vatican.

Putin okay with a Trump-orchestrated deal
Sources indicated that Russian President Vladimir Putin is open to discussing a Ukraine ceasefire deal with US-President-elect Donald Trump, who has promised to put a swift end to the conflict. However, Putin will not be making any major territorial concessions and insists that Ukraine give up its ambitions of joining NATO. In return, Putin is likely willing to freeze the conflict along the front lines, with room for negotiation over the four eastern regions of Donetsk, Luhansk, Zaporizhzhia and Kherson. Still, Putin expressed concern that a short-lived ceasefire would only allow the West to rearm Ukraine.

Nuclear warning!
As it is, the world is still reacting to Putin’s approval of a new nuclear doctrine, which lowered the threshold for a nuclear strike as a response to a broader range of conventional attacks in response to the US giving Ukraine the go-ahead to use its missiles to strike deeper into Russia. So far, some of the voices have called the doctrine change another threat of nuclear escalation, with several calling the move irresponsible. On the other hand, the Kremlin has shared that a special secure communication line in place to deflate crises between Russia and the US is not being used, even as nuclear risks rise amid the highest tensions between Russia and the West in decades. Anyone remember Red Alert 2?

This video below gives me chills

Stop pushing, West
The head of Russia’s Foreign Intelligence Service, Sergei Naryshkin, has stepped up with his own piece, saying that Russia would “punish any NATO states” that help Ukraine strike deep into Russia with long-range weapons, adding that the West risked “disastrous consequences”. This also comes as US President Joe Biden approved the provision of anti-personnel land mines to Ukraine in a bid to help slow Russian advances, in addition to the anti-tank mines it already provides.

Embassy closures
The US has shut its embassy in Kyiv due to “specific information of a potential significant air attack”, with the Italian and Greek embassies doing the same. The French embassy remains open but warned its citizens to be cautious. Kyiv is in a state of tension as the city waits for a retaliatory strike from Russia after Ukraine’s long-range missile attack.

Fraud in the big leagues

• Forbes-listed founder faces federal fraud charges
  Prosecutors charged Joanna Smith-Griffin, founder of education AI chatbot firm AllHere Education, with defrauding investors to get USD10 mil (RM44.72 mil) in investments. The startup founder, who was on the 2021 Forbes 30 Under 30 list for education, was accused of deceiving investors for years about her firm’s revenue numbers and clients. Currently, AllHere Education is in bankruptcy proceedings. This ranking seems to be a good indicator of potential fraudsters - read below.

• Bill Hwang faces massive US fraud sentencing
  Prosecutors are pushing for a 21-year prison term for the former billionaire investor, and for Hwang to forfeit USD12.35 bil (RM55.22 bil) and make restitution to victims. This follows Hwang’s conviction of 10 criminal charges including wire fraud, securities fraud, and market manipulation. Hwang was accused of costing Wall Street banks over USD10 bil after his fund management firm Archegos Capital Management collapsed.

Monopoly? Where?

• US DoJ plans to force Google to sell Chrome
  The US Department of Justice will ask a judge to force Google to sell off its internet browser, Chrome, as well as require measures related to AI and Google’s Android smartphone operating system. This comes after the judge ruled that Google illegally monopolised the search market. The move to make Google sell Chrome would also be one of the most aggressive attempts by the Biden administration to curb Big Tech monopolies, but the re-election of Donald Trump could change the course of this case. Another big loser if this happens - Apple, as Google pays it a huge sum of money every year.

• Apple to ask federal judge to dismiss DoJ case of smartphone monopoly
  The tech giant is moving to dismiss the case by stating that its limitations on developer access to its technology were reasonable, while being forced to share its technology with competitors would only chill innovation. Prosecutors accused Apple of locking users in and keeping competition out by limiting interoperability. As an aside, Apple has made a USD100 mil (RM447.15 mil) investment proposal to Indonesia to build a plant to manufacture accessories and components there. This comes after the nation banned iPhone 16 sales over Apple’s failure to meet local rules on components.

5. FOR YOUR EYES 📺

1. Sea levels have risen by 25cm since 1880. Sea levels are rising for two main reasons. First, when water gets warmer, it takes up more space. Second, ice on land, like glaciers and ice sheets, melts and adds more water to the oceans. Climate change is making both of these things happen faster.

2. Snip snip — interesting zoomed-out view. Some region are more snip happy than others.