☕️ Cost of diesel subsidy: RM1 bil/mth, RM135 mil siphoned away

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

Diesel subsidies cost the Malaysian government RM1 bil a month, with daily losses from leakages amounting to RM4.5 mil, according to Finance Minister II Amir Hamzah Azizan. That’s RM135 mil a month — 13.5% of subsidies go to waste. He stated that implementing a targeted diesel subsidy is a key reform under the Ekonomi Madani framework, aiming to ensure sustainable fiscal management and address significant leakages while maintaining the welfare of the rakyat.

Nearly 29,000 companies have registered for the diesel fleet card, despite no specific date set for the diesel subsidy rationalisation exercise this year. The card, obtainable via mysubsidi.kpdn.gov.my, is part of the Subsidised Diesel Control System (SKDS) 2.0 scheme. The scheme covers 33 categories of vehicles, including 10 from the public transportation sector and the remainder from the goods transportation sector.

According to estimates by the (US) White House Council of Economic Advisers, Americans are spending more than USD90 bil a year—more than USD650 per household—on junk fees. This is more than the GDP of over 100 countries — slightly lower than Guatemala’s USD95 bil. These fees include live event tickets, internet and cable fees, apartment rentals, banking fees and more and are usually added at the end of the purchase, making it tougher for consumers to compare for the best offers.

3. IN MALAYSIA 🇲🇾

PMX visited Japan last week and bagged some goodies
Japan has been the country’s fourth-largest trading partner for nine consecutive years. In 2023, trade with Japan stood at around RM35 bil and one-third involved liquified natural gas. Last week, during Prime Minister Anwar Ibrahim’s working visit to the land of the rising sun, the PM announced RM1.45 bil in potential investments and RM550 mil in potential exports from meetings with seven Japanese companies. Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz said one of the companies planning to invest in Malaysia is from the semiconductor industry. Tengku Zafrul also added the trade between the two is expected to increase with additional investments semiconductor and renewable energy sectors.

Why are such visits important? As of 2023, a total of 2,810 manufacturing projects with Japanese participation have been implemented, with total investments valued at RM102.11 bil, creating 344,120 job opportunities.

Gig Workers Commission Bill to be tabled in July 2024
Prime Minister Anwar Ibrahim announced that the Gig Workers Commission bill will be tabled in the Dewan Rakyat in July. The decision follows a proposal from youths in the gig economy sector. The bill aims to protect the rights of 1.12 mil gig workers, address social needs, resolve contract disputes, and promote career advancement for this group. The establishment of the Gig Workers Commission aims to address six key areas: relevant legislation, a grievance mechanism, commission structure and functions, financial implications, wage rate determination, and social protection and occupational safety and health.

Business

1. Maybank reported RM2.49 bil in net profit for its 1QFY2024

   Malayan Banking Bhd reported a net profit of RM2.49 bil for the first quarter ended March 31, 2024 (1QFY2024), 9.8% higher than a year before. Net interest income (difference between interest earned from borrowers and interest paid to depositors) increased by 4.5% year-on-year to RM5.24 bil. Non-interest income surged by 78% to RM3.05 bil compared to 1QFY2023, mainly due to RM995.5 mil in mark-to-market gains from revaluing financial liabilities at fair value. No dividend was announced. Maybank’s market cap stands at RM120.4 bil, making it the most valuable Bursa-listed company. View earnings here.

2. Aeon Bank (M) Bhd - a new Islamic digital bank launched over the weekend
   The first Islamic digital bank in Malaysia, Aeon Bank (M) Bhd, officially launched on Sunday. The bank aims to provide simplified and inclusive Shariah-compliant digital banking solutions to all Malaysians, such as savings accounts, retirement savings plans, various borrowing options, and payment services. The bank currently offers Savings Account-i, Savings Pots with customisable optimisation features, and budgeting tools. Opening an account with Aeon Bank from now until August 31, 2024, offers five perks:

   1. Customers who activate their account will be entitled to a sign-up bonus of 3,000 Aeon Points (RM15);

   2. 3X Aeon Points with transactions using the Aeon Bank x Visa Debit Card-i;

   3. The profit rate for its Savings Account-i will be 3.88% per annum;

   4. Waiver for annual Aeon points membership program (RM12); and

   5. Fee waiver for the debit card (RM12).

Shorts

1. Malaysia's April inflation at 1.8% for third consecutive month

   The Department of Statistics Malaysia (DoSM) attributed the increase in inflation last month because of hikes in restaurant and accommodation services (3.5%), personal care, social protection and miscellaneous goods and services (3.1%) and housing, water, electricity, gas and other fuels (3.0%) prices. Did you feel the pinch or are you just numb at this point?

2. Another by-election will be happening, this time in Penang
   Sungai Bakap state assemblyman Nor Zamri, 56, passed away last Friday while receiving treatment at the Intensive Care Unit of Seberang Jaya Hospital due to inflammation in the stomach. Last August, Nor Zamri, the Nibong Tebal PAS chairman, won the Sungai Bakap seat in the state election by defeating Pakatan Harapan candidate Nurhidayah Che Rose with a 1,563-vote majority. The Election Commission (EC) will be notified of the vacancy today. This would be an interesting election to observe as to whether the green wave up north is still persisting.

3. Friday sermon’s alternative take on boycott
   The sermon quoted Perak mufti Wan Zahidi Wan Teh’s views, stating that the current boycott movement was not in line with Prophet Muhammad’s teachings and could lead towards cruelty. The text, prepared by the Perak Islamic Religious Department, stated Al-Quran stressed the need to use wisdom and reasoning when it comes to proselytisation. The sermon also mentioned how the recent boycott had impacted people, including Muslims, who had their salaries cut and lost jobs.

4. Is it nepotism when there are merits?
   The land public transport agency (Apad) and federal regulators approved two companies for a new demand-responsive transit (DRT) system in the Klang Valley. The DRT system is meant to solve last-mile connectivity problems. One of the companies, Asia Mobility Technologies Sdn Bhd, is run by Youth and Sports Minister Hannah Yeoh’s husband, Ramachandran Muniandy. This resulted in certain parties claiming preferential treatment in the tender process. Selangor Investment, Trade and Mobility Committee chairman Ng Sze Han said the companies were selected based on their experience in rolling out their proof of concept earlier, debunking claims of preferential treatment.

4. AROUND THE WORLD 🌎

Eyes on Sudan: UN experts calls world attention to the Sudan genocide
UN experts are reporting a “Rwanda-like” genocide in Sudan (view on map here)based on a recent UN analysis of the increasing risk factors in the country, and it may be overlooked as attention is currently more focused on conflicts in Ukraine and Gaza.

Circumstances of genocide are possibly already occurring, where more than 700 deaths have been reported in 10 days by medical charity in the besieged city of El Fasher, the last major urban centre in the Darfur region that remains in the hands of Sudan's army. Fighting has intensified in the El Fasher in recent days, where many civilians were targeted based on their ethnicity.

The Sudan military has been fighting the paramilitary Rapid Support Forces (RSF) for more than a year in a civil war that has killed thousands and forced millions from their homes. A report by Human Rights Watch said ethnic cleansing and crimes against humanity had been committed against ethnic Massalit and non-Arab communities in the region by the paramilitary forces and its Arab allies.

The current violence has erupted out of a long history of tensions over resources between non-Arab farming communities, including the Masalit, and Arab pastoralist communities.

Rescuers race to rescue villagers trapped in deadly landslide
Rescue work continues, albeit challengingly, as hundreds are feared dead over the massive landslide that swept through a village in northern Papua New Guinea (view on map here) around 3am local time Friday morning. The landslide buried hundreds of homes in the highlands of Enga, in the north of the island nation in the southwest Pacific.

The landslide created debris up to 8m deep, affecting more than 200 sq km of land (for comparison, KL covers an area of 243 sq km), including 150m of the main highway into Enga Province, reported humanitarian agency Care Australia. It is approximately the size of three to four football fields.

Relief efforts have been hampered by difficult terrain and damage to main roads. Parts of the affected area are only accessible via helicopter. Nearly 4,000 people lived in the area but the agency warned that the number affected was "likely to be higher" because of an influx of people escaping tribal conflicts in neighbouring areas. Other villages could also be at risk if the landslide continues down the mountain.

As of today, the International Organization for Migration has increased its estimate of the death from 100 to more than 670 people.

Need perspective? Here’s a video of the aftermath of the devastating landslide.

Robe-wearing DJ NewJeansNim might be praised at home, but not really welcomed outside
The region is divided when it comes to monk-DJ NewJeansNim (his IG here). He is welcomed and doing a great job at reigniting love for Buddhism among the younger generation in South Korea, but in Southeast Asia he is deemed to be denigrating the religion with his combination of electronic dance music and Buddhist mantras while donning the cleric robe in his performance.

Also known as Youn Sung-Ho, the 47-year-old comedian-turned-musician has riled devouts of Buddhism in Singapore and Malaysia with his genre. On May 19th, the Singapore Buddhist Federation called for NewJeansNim’s two performances at a disco club in June to be cancelled, while in early May, a dance club in Kuala Lumpur cancelled his second set following complaints by both senior Buddhist clergy and politicians.

According to Buddhism experts, there are significant differences between East Asia and Southeast Asia when it comes to expectations about the roles and conduct of Buddhist monks. By contrast, Buddhists in Southeast Asia are conservative and find it offensive for a non-ordained person to be dressed and performing in monastic robes in the name of Buddhism, what’s more when it is against Buddhism’s precepts. But in East Asia, with the decline of the religion, the Buddhist community are more open to creative ways to inspire interest in Buddhism among the younger generation, including innovative methods like Youn’s.

Shorts

1. No sign of foul play found in Raisi helicopter crash so far

   A preliminary report by Iranian military investigators has so far found no evidence of criminal activity in the helicopter crash that killed late President Ebrahim Raisi and seven others last week. The report stated that the craft had caught fire after hitting an elevated area and no bullet holes or suspicious content was observed. The helicopter wreckage was found in Iran’s mountainous northwest, and it was an ageing Bell helicopter. Sadly, due to foreign sanctions on Iran since 1979, it has been difficult for the country to obtain aircraft parts or new aircraft. Nevertheless, the investigation has not yet concluded and is still ongoing.

2. February deadly blaze allegedly started by Chilean firefighter

   Chilean authorities have detained a firefighter and a forestry official on suspicion of arson triggering a deadly fire tragedy last February. The massive fire had broken out on February 2nd around the coastal city of Vina del Mar, 110 km northwest of Chile’s capital Santiago. Dubbed the second deadliest fire of this century, the inferno killed 137 people and wiped out a famous botanical garden founded in 1931, while 1,600 people were left homeless. Materials used to start the fire were found in the house of one of the suspects, said prosecutors. Investigators were also probing potential links to other arson incidents. The motive is still unclear but it was a clear intentional attack.
   Fun fact: Chile is the longest country in the world, extending 39 degrees of latitude. View on map here.

3. Dogecoin dog Kabosu dies after 14 years as a lovable meme

   The world bids farewell to Doge, aka Kabosu, a much-loved Japanese shiba inu dog who died peacefully in her sleep on May 24. She has been suffering from leukaemia and liver disease since 2022. Kabosu was estimated to be 18 years old and was a rescued dog. Her meme began in 2010 when her photo went viral after being posted online, where the meme is typically used with goofy broken English to reveal the inner thoughts of Kabosu. The picture also later became an NFT digital artwork that sold for USD 4 mil and inspired Dogecoin, now the eighth most valuable cryptocurrency with a market capitalisation of USD23 bil. Rest in peace, Kabo-chan.

4. Weight-loss jabs are not a quick-fix, experts warn governments

   While drugs such as semaglutide are remarkable for weight loss in the majority of people, such medications, aka GLP1 receptor agonists, were designed to treat obesity, not prevent it, says geneticist and expert on obesity and the brain control of food intake at University of Cambridge. It is also at risk of being used as a cop-out by governments to avoid making hard policy choices to prevent obesity instead of making difficult policy decisions such as subsidising healthy foods and regulating placements and advertisements of unhealthy foods. Ultimately, prevention always remains better, cheaper and more sustainable than cure. It’s hard to ignore the quickest (but not necessarily safest) solutions in this era of instant gratification, no?

5. FOR YOUR EYES 📺

1. Turbulence during a flight can be detected and hence avoided. In the recent SIA incident, unfortunately, it experienced clear-air turbulence, which could not be detected. Channel News Asia explains further in the video below, retracing the incident.

2. A short documentary on the business of personal bodyguards and security by BFM. If you are in need of a Home Ministry-licensed bodyguard, a non-armed bodyguard costs about RM5-6k a month, and an armed bodyguard costs about RM11-12k a month.