☕️ Driving under the influence of drugs could soon be an offence

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

The population of Kuala Lumpur has surpassed 8.8 mil (25.8% of total population of 34.1 mil), with an annual growth rate of 2.25%, according to Dr. Zaliha Mustafa, Minister in the Prime Minister's Department (Federal Territories). The minister projected that the city's population would continue to rise, reaching 9.8 mil by 2030. With an area of 243 sq km, that means the density of KL is 36,214 people per sq km currently. Another 1 mil people by the end of the decade won’t do it any good. Semak.

Air pollution isn't just about traffic and coal plants — indoor fumes from solid fuels like wood and charcoal are significant. These household smokes cause nearly 4 mil premature deaths annually, mainly impacting women and children. The most affected are poor countries. A study by the Lancet in May highlighted North Korea, the Solomon Islands, and Vanuatu as having the highest mortality rates from indoor air pollution, with 240, 146, and 140 deaths per 100,000 people respectively in 2021.

RM153 bil market capitalisation was wiped out from Bursa Malaysia from the two-day drawdown that happened from last Friday to Monday. However, after the daunting decline, Malaysia stocks recovered slightly yesterday with the index settling at 1,567.91 points (a 2.05% increase from the day before). In the broader market, 974 stocks advanced, 307 retreated and 353 were unchanged.

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3. IN MALAYSIA 🇲🇾

UMNO taking the lead for Nenggiri polls
The by-election, happening on Aug 17, will be led by UMNO from the Unity Government side. Pakatan Harapan parties — DAP and PKR — will stay on the sideline. DAP’s Secretary General Anthony Loke said the party practises the spirit of cooperation and will help campaign for the Unity Government coalition's candidate if its assistance is needed in the by-election. However, Umno Supreme Council member Ahmad Maslan was quoted saying that the constituency only has 36 Chinese voters, saying there is no urgent need for DAP to campaign in Nenggiri. PKR Deputy President Rafizi Ramli said the best strategy is for UMNO to lead as the latter understands the local terrain better than anyone in Pakatan or PKR.

Khairy Jamaluddin said the lack of DAP’s presence may just help the Unity Government witness the first “flip” since the General Election in 2022. Notwithstanding, the influence of UMNO veteran Tengku Razaleigh Hamzah (Ku Li) could also be a crucial factor in determining the by-election’s outcome.

On-par salary with SG and VN for fresh engineers in Selangor
Selangor's new integrated circuit (IC) design park in Puchong offers competitive salaries for fresh engineering graduates, comparable to those in Singapore and Vietnam. According to Yong Kai Ping, CEO of the Selangor Information Technology and Digital Economy Corp (Sidec), undergraduate engineers can earn RM5,000 to RM6,000, while master's degree holders can expect RM7,000. The park, aiming to attract top talent of over 400 engineers, has received 3,300 resumes and is recruiting engineers with degrees in electrical and electronics, mechanical engineering, mechatronics, and computer sciences.

The Selangor state government is also looking to develop a second chip design park in Cyberjaya by the middle of next year as the newly opened site in Puchong is fully occupied. The park in Puchong is also the largest in Southeast Asia, spanning 60,000 sq ft, and is filled with global semiconductor players including MaiStorage, Skyechip, Weeroc, AppAsia ChipsBank and SensoremTek Sdn Bhd.

Hartalega off to a good start for its FY2025
Hartalega Holdings Bhd reported a net profit of RM31.9 mil for 1QFY2025 ended on June 30, 2024, compared to a RM52.5 mil loss recorded a year ago. Quarterly revenue increased by 33% to RM584 mil from RM440 mil recorded in the corresponding quarter last year. The recovery in sales volume and increase in average selling prices (ASP) during the quarter helped the group get off to a good start for its financial year. The group also proposed a 0.35 sen dividend per share, subject to approval at its next shareholders meeting on Sept 6. View the quarter results here.

Shorts

1. Meta apologises to PMX over “operational error”
   Prime Minister Anwar Ibrahim’s social media posts in which he expressed condolences to a Hamas official were incorrectly removed by Meta Platforms, prompting the social media giant to apologise. The content has since been restored. Meta designates Hamas as a “dangerous organisation” hence any content praising the group is banned.

2. ISPs outsmarting users, plugging the DNS loophole
   Some users have configured their internet settings to use alternative domain name service (DNS) servers such as Google or Cloudflare to access websites blocked by the Malaysian Communications and Multimedia Commission (MCMC). According to a report to Sinar Project, some ISPs have circumvented this loophole by redirecting back to the ISP’s own DNS service instead. Users will then see a connection timeout error.

3. Driving under the influence of drugs could soon be an offence
   Currently, drivers who are found driving under the influence of drugs but do not cause an accident will have their licenses suspended but they cannot be prosecuted. The government plans to amend Section 45A of the Road Transport Act 1987 to increase penalties for driving under the influence of drugs, even if no accident occurs. Transport Minister Anthony Loke Siew Fook stated that this proposal, intended to impose penalties similar to those for drunk driving (up to RM10,000 fine and two years imprisonment), will be discussed with relevant officials before being tabled in the third Parliament session in October.

4. AROUND THE WORLD 🌎

Blows traded as Middle East cauldron simmers
Exchanges between Israel and Lebanon-based Hezbollah have intensified amid the region’s tensions and fears that any escalation would lead to all-out war. Hezbollah has launched drone and rocket strikes into northern Israel but claimed that its retaliation for the killing of a top Hezbollah leader was yet to come. This follows Israel’s airstrike earlier that day on a house with four Hezbollah fighters. Israel is also continuing its operations in Gaza, where it claims to have killed 45 Hamas fighters over the past 24 hours.

Global leaders are counselling restraint, with the US calling for other countries to tell Iran that an escalation in the Middle East is not in Iran’s interests, and Russian President Vladimir Putin asking Iran’s Supreme Leader, Ayatollah Ali Khamenei, to have restraint and not attack Israeli civilians. According to its Foreign Minister, Abdallah Bou Habib, Lebanon is also working to prevent total war in the region.

Still, US interests in the region have taken fire, with at least five personnel wounded in a rocket attack against a military base in Iraq. There is no clear indication that the attack has anything to do with Iran, but the Iraqi military has captured a truck with a rocket launcher. Iraq, an ally to both the US and Iran, has condemned the attack and is working to find the attackers.

Meanwhile, the UN has fired nine employees of its agency for Palestinian refugees, UNRWA, as they “may have been involved” in the 7 October attack by Hamas. However, there is insufficient evidence to support Israel’s allegations against ten other UNRWA members. On a similar note, a UN expert has condemned Israel’s killing of Al Jazeera journalist Ismail Al-Ghoul and cameraman Ramy El Rify in Gaza. Israel claims the journalist was a member of Hamas that participated in the 7 October attack, but Al Jazeera has refuted these claims. Regardless, the deliberate targeting of journalists is a war crime, and the UN expert has called for Israel to be responsible for it.

Political Points

1. Kamala Harris picks Minnesota governor as running mate

   The Democratic presidential candidate has chosen Minnesota governor Tim Walz to be her running mate and vice president, with the idea that fielding a “progressive, plain speaker from America’s heartland” will help win over rural, white voters. So far, Walz has taken to calling Republican candidate Donald Trump and his running mate, J.D. Vance “weird”, and reminded voters that these two did not have the middle-class credentials they say they have, and that Trump and Vance were voices that spoke for book bans and against abortion rights.

2. Bangladesh president dissolves parliament, frees ex-PM

   President Mohammed Shahabuddin of Bangladesh has declared the dissolution of parliament, opening the way for an interim government to be put in place and for new elections to be held, following the resignation of Prime Minister Sheikh Hasina. Hasina fled the country after her resignation as protestors to her job quota policy were storming her palace. Meanwhile, the President has also announced that opposition leader and Hasina’s bitter rival, former Prime Minister Begum Khaleda Zia, is now freed from house arrest.

Tech Matters

1. US Judge: Google online search monopoly illegal

   The ruling states that Google has acted illegally to crush its competition and maintain a monopoly on online search and related advertising, considering that it holds about 90% of the online search market. So far, no penalties have been decided, with fines or other remedies to be decided at a later hearing. However, the US government has asked for “structural relief” which could mean the break-up of the company. Google has numerous agreements with companies, including Apple and Samsung, to be their default search engine, which includes payments to said companies to “maintain its monopoly”. Still, Google is looking to appeal the ruling, with Google’s president of global affairs stating that the decision recognises that Google has the best search engine, but concluded that Alphabet is not allowed to make the search engine easily available.

2. WSO2: a Sri Lankan success story, and the man behind it

   In May, private equity giant EQT acquired an open-source enterprise software firm in a deal valuing it at USD600 mil, though the deal is still subject to regulatory approvals. What’s interesting is that the firm, WSO2, was founded and grown in Sri Lanka, a nation not exactly known for its support of start-ups. Sanjiva Weerawarana built WSO2 from scratch in 2005 and was responsible for growing its annual recurring revenue to almost USD100 mil as its CEO. The firm looks set to ride the AI wave with its offerings and boasts names such as Samsung and AT&T among its clients. Still, Weerawarana has been using his status as a well-recognised businessman for good, by helping to shift local mindsets regarding working in driving jobs by being an Uber driver himself.

Business Highlights

1. Stock markets starting to steady after bloodshed

   Global stock markets are starting to find their footing again, albeit gingerly, as investors remain skittish from the uncertainty of the previous day’s aggressive sell-off. Tokyo’s Nikkei, one of the earliest victims, rebounded 10% to the relief of investors, but US stock futures remained volatile as markets are still spooked by a possible US recession. Main indexes on Wall Street have closed higher, with the US Federal Reserve helping matters with a dovish rate commentary. Nevertheless, US central bank policymakers have warned the Feds to cut rates to avoid a recession, considering the weaker-than-expected employment figures for July.

2. Uber reports profitable 2Q, bolstered by ride-sharing demand

   The ride-hailing giant reported USD10.7 bil in revenue, up 16%, with USD1.5 bil in adjusted core earnings, citing steady demand for its ride-sharing and food delivery services. The return to office and a consumer base that is more willing to leave the house meant that mobility saw a “standout second quarter” according to Uber CEO Dara Khosrowshahi. However, Uber remains conservative for the third quarter, forecasting gross bookings and adjusted core earnings that are below analysts’ estimates. Btw, Uber is turning into an ad behemoth, achieving a net revenue annual run rate of USD1 bil for its advertisement business.
   Read: Uber Announces Results for Second Quarter 2024

5. FOR YOUR EYES 📺

1. Two centuries ago in 1820, only 1 in 10 adults were literate (could read). Today, almost 9 out of 10 adults (87%) could read and write.

2. China’s 17-year-old no-splash diving queen Quan Hongchan retained her gold title in the women’s 10-metre platform event yesterday. Watch highlights before.