☕️ No LoAward, LoAcceptance, LoIntent, yet can get govt contract collecting bail money

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

SGD1 (RM3.19) - The deal to acquire Shenton 101, which owns Singapore's Shenton House, will cost local property developer IOI Properties Group Bhd that much. The deal was with Shenton 101's sole Shareholder and Director, Lee Yeow Seng, who is also a major Shareholder and Group CEO of IOI Properties Group. Of course, there is more to the deal than just SGD1. IOI Properties will also be settling SGD217.06 mil worth of shareholder advances that Lee injected into Shenton 101 to acquire Shenton House. The property firm will also consolidate Shenton 101's SGD376.23 mil borrowings into its accounts upon completion of the deal. IOI Properties will be paying for the acquisition through internal funds.

RM61 bil - That is the value of Gamuda Bhd's construction order book, marking a record high for the company. This comes as the construction firm closed its financial year ended Jul 31, 2026, with a net profit topping RM1 bil for the second straight year. Gamuda reported a full-year net profit of RM1.05 bil, up 5% from RM1 bil a year earlier. A revenue of RM18.3 bil was also reported, a 15% increase from RM16 bil a year earlier. Gamuda attributed the growth in revenue and net profit to stronger contributions from domestic construction projects and high-margin quick-turnaround property projects in Vietnam.

RM8.85 bil - The Malaysia My Second Home (MM2H) programme generated that amount in economic value between Oct 1, 2024, and Aug 31. Of that amount, more than RM5 bil was in property purchases and RM3.82 bil in fixed deposits. According to Deputy Tourism, Arts and Culture Minister Chiew Choon Man, the MM2H programme received 7,650 applications in the same period, spread across the Platinum, Gold, Silver, and Special Economic Zone categories (learn more here). China led the applications with 3,847, followed by Taiwan with 1,054, and Hong Kong with 324. Moving forward, the programme will be expanding its reach to key target markets such as Hong Kong, Japan, and South Korea by organising overseas sales missions to these regions.

Now that’s a huge jump in application fee from Gold to Platinum.

3. IN MALAYSIA 🇲🇾

Zetrix failed to remit RM314 mil, JPJ also reducing reliance on MyEG and third-party agents
JPJ has suspended Zetrix AI and MyEG as collection agents after Zetrix failed to remit RM314 mil collected between May and Sept. This is more specific than the amount reported a day earlier, when the Transport Ministry said Zetrix owed Putrajaya more than RM200 mil accumulated since its three-year contract began in May 2023.

Transport Minister Anthony Loke said JPJ held four engagement sessions and issued 35 reminders, but the arrears remained unpaid. Zetrix issued a RM231 mil cheque in Sept, but the payment was not processed after the company told the bank not to proceed. Wah...more shenanigans here. The government is currently considering further action, including possible civil proceedings.

JPJ is also reducing its reliance on third-party collection agents. Around 20% of users still use agents such as MyEG, while more are being encouraged to deal directly with JPJ through MyJPJ. The app is expected to gain more features next month.

Warning - your blood pressure will increase in the coming few posts

eJamin ran five years without a contract
The Public Accounts Committee (PAC) found that eJamin, the online bail payment system operated by Pertama Digital Bhd through Dapat Vista Sdn Bhd, ran for five years without a formal government contract - no letter of appointment, letter of acceptance, letter of intent, or formal contract value. Apa pun takda. It was used at 192 courts, but bail money was paid into Dapat Vista’s commercial bank account instead of a government trust account. By the end of 2024, eJamin held RM193.71 mil in bail funds. PAC found that RM130.8 mil had been invested in instruments including sukuk without government approval, while RM62.3 mil remained in bank accounts. Dapat Vista earned about RM4 mil to RM5 mil in interest from the investments. PAC also flagged a RM557,258 discrepancy between eJamin records and Dapat Vista’s bank statements, along with the lack of a trustee structure, insurance and other safeguards. 20% of Dapat Vista is owned by HeiTech Padu Bhd, which is related to - Zetrix AI via a substantial common shareholder.

How the f did this go unnoticed for 5 years. The only bright side from this is the funds are still there, somewhat, and not converted into Hermes and Rolexes.

AG findings:
The debt and guarantees of the Federal Government
Federal debt and statutory guarantees both grew in 2025, but they represent very ‘different’ growth. Federal debt rose 5.9% to RM1.32 tril, while debt service charges increased 6.4% to RM53.71 bil. Even so, the fiscal deficit narrowed to 3.7% of GDP from 4.1% in 2024, and new borrowings fell 8.2% to RM185.577 bil. Statutory guarantees increased 9.8% to RM1.92 tril. Of this, RM1.57 tril covered contributors’ and depositors’ funds at bodies including EPF, Tabung Haji, Bank Simpanan Nasional and SSPN-i, while RM352.86 bil covered guaranteed loans.

Federal debt vs statutory guarantees - the difference
For context, federal debt is money the government has already borrowed and must repay. Statutory guarantees, on the other hand, only become government liabilities if the institutions or entities being guaranteed cannot meet their own obligations. Hence, it’s aka contingent liabilities.

Clean accounts, weak collections
The Auditor General (AG) gave the federal government’s 2025 financial statements an unmodified audit opinion, meaning the accounts were fairly presented. However, it also found weaknesses in how money owed to the government was being collected. Outstanding contractor advances stood at RM68.81 mil across 24 projects, with RM59.63 mil overdue for more than 10 years. Utility relocation costs worth RM90.50 mil also remained unpaid, including RM84.05 mil outstanding for more than 12 months. In addition, only 5% of RM9.273 bil in federal loan arrears was collected in 2025. The government also wrote off RM578.32 mil, comprising RM127.33 mil in principal and RM450.99 mil in interest and late-payment interest. The Auditor General called for stronger monitoring, enforcement and risk assessments.

LCS project slips behind schedule again
Malaysia’s version of financial Titanic perhaps, but we might be too kind with the comparison as not even a single ship was ever produced. The littoral combat ship (LCS) project was 7.55% behind schedule as of June 25, 2026, with all five vessels delayed by 30 to 108 days. LCS 1 was originally due for handover on Aug 26, with a revised target of Dec 26. Even if that date is met, the vessel could be handed over before reaching full operational capability because crew training and weapons systems would still be incomplete. One unresolved issue involves the Naval Strike Missile Launcher System after Norway permanently cancelled its export permit for the system. The five-ship project is now valued at RM11.23 bil, with RM8.56 bil already paid. The project was awarded on Dec 2011. As at 2022, the government paid RM6.08 bil or 66.6% of the contract’s RM9.13 bil value to get nothing.
Read: Many questions crop up in LCS saga (The Edge, Sep 2022)

Subsidy bill falls as welfare aid jumps
Federal subsidy spending fell 40.1% to RM23.43 bil in 2025, mainly as petroleum subsidies dropped. Petroleum product subsidies fell 45.2% to RM19.11 bil, helped by lower crude oil prices and the shift towards targeted diesel and petrol subsidies. Petrol subsidies fell 46.5% to RM10.51 bil, while diesel subsidies dropped 48.2% to RM5.98 bil. At the same time, grants and aid for individuals and families jumped to RM20.36 bil from RM4.24 bil. Cash assistance under STR, Sara and Budi Madani totalled RM15.51 bil. The Finance Ministry said savings from targeted diesel and RON95 subsidies were being channelled towards programmes supporting vulnerable groups. But due to Trump, this report, next year, will look ugly.

Shorts:

1. Caning still allowed in schools
   Caning remains permitted for male students in Malaysian schools for certain offences, Education Minister Fadhlina Sidek said. However, it can only be carried out by a headmaster, principal or authorised teacher and must follow strict procedures. It cannot be done in anger or cause injury.

2. Tougher Mat Rempit penalties from Nov
   Tougher penalties for Mat Rempit offences, including jail, are expected to take effect starting Nov 1. The Road Transport Department (RTD) said the Road Transport Act amendments have been approved by Parliament and are awaiting gazetting. The changes will strengthen enforcement against illegal racing, dangerous riding and other offences that endanger road users.

4. AROUND THE WORLD 🌎

Trump tries to strong-arm South Korea in Alaska LNG deal
“Tell them if they don't sign shortly, I'm going to double it up.” That is Trump’s ‘art of the deal’ regarding South Korea’s planned energy and infrastructure investment in the US, after he announced the country’s participation in a USD50 bil (RM204 bil) Alaskan Liquefied Natural Gas (LNG) project. South Korea said they are still assessing the project, but Trump seems keen to get the project moving forward. Though he did not specify what he’s going to ‘double up’ on. South Korea thinks it’s tariffs.

Then, he went ahead to announce that there is an additional USD8.4 bil (RM34.3 bil) enhanced oil recovery project. South Korea said that this was not part of the USD50 bil Alaskan project. Is Trump putting the cart before the horse? Well, the mid-term elections are coming up, and he’s probably looking to score some brownie points with voters.

Russia on cautious alert after researcher dies from plague
Russia has placed nearly 200 people under medical observation in Russia’s Irkutsk region in eastern Siberia after a Russian anti-plague institute employee died from an unspecified form of disease that could be a plague. The employee returned from a work trip to Buryatia, where an outbreak was reported near the border with Mongolia. The authorities are putting them under observation for suspected exposure to the plague and said that the employee was diagnosed with “pneumonia of unknown etiology” while the sanitary and epidemiological situation in the Irkutsk region remained stable. Luckily, they said that expanded testing had not detected microorganisms linked to the employee’s work.

Privacy and data breaches
Norway to temporarily ban use of AI smart glasses
Norway’s government is proposing a temporary ban on the use of AI glasses in selected places such as parks, beaches, museums, shopping centres, schools, playgrounds, youth clubs and public events. The government is concerned that people could be filmed, photographed, and audio-recorded without their knowledge.

Digitalisation and Public Governance Minister Torgeir Micaelsen said. "I am worried that new, powerful technology is being introduced where people risk being photographed, filmed or audio-recorded without knowing it.” However, it clarified that it is not aiming for a total ban and is looking to present a bill to parliament soon. An expert group will be set up to advise on permanent national regulation of body-worn technology.

Hans Anders halts sales of Meta’s glasses, worried about privacy
Hans Anders, a Dutch eyewear chain, is halting sales of Meta’s Ray-Ban smart glasses in the Netherlands and Belgium. The company said, “This decision follows the ongoing public and political debate surrounding smart glasses and the questions being raised about the conditions under which this technology can be used”. Netherlands’ privacy regulator said videos made with smart glasses showing identifiable people cannot generally be shared or published without their permission, which would be difficult to obtain in a public ​place. Consumer rights group Consumentenbond said it would take Meta to court unless the company complies with privacy law. Hans Anders is a subsidiary of Nexeye, and operates 776 stores across the Netherlands, Belgium, Germany, Austria and Sweden.

If you are recent to the newsletter, there’s this term called glassholes.

Daiwa’s information on 110,000 clients may have been leaked
It wasn’t Daiwa’s fault, but yes, about 110,000 clients’ information may have been stolen after the servers of an external vendor were hacked. Scala Communications said that it found evidence of client data being leaked due to unauthorised access. The information includes names and account numbers. Daiwa went on to say that this data can’t be used to access a securities account or conduct online trading and did not detect any inappropriate transactions associated with the leak. Most importantly, its own systems were not breached.

Data breach in Denmark exposes 8.8 mil people’s data
Denmark suffered a MAJOR data breach, where unauthorised individuals had access to 8.8 mil people’s personal data that includes names, addresses and personal identification numbers. They used a private Danish company’s legitimate access to search the Central Person Register (CPR) to access the data, but the access has since been blocked from the system. Authorities say it’s still too early to know who is behind it. The CPR is a cornerstone of Denmark’s highly digitised public sector and stores every resident’s unique 10-digit CPR number that is widely used to identify individuals when dealing with government agencies, banks and healthcare providers.

If we can make a reasonable guess, AI gone wild. The Australian government recently got hacked by OpenAI’s rogue AI agent.

Shorts:

1. Penguins propose to their partners with a pebble
   Forget a 24 carat diamond ring; pebbles are all the craze in the penguin kingdom. For the Adelie (Pygoscelis adeliae) and Gentoo penguins (Pygoscelis papua), the male penguin takes the lead by selecting a special pebble and dropping it on the feet of its female mate during courtship. This is a proposal. If the female is interested, she too will find a pebble. Then, they will go back and forth to collect pebbles to build a nest. What a way to build a love nest.
   Here’s a BBC Earth video that shows this:

2. The Nobel Prize for showing how nerve cells shape feelings
   Karl Deisseroth, Peter Hegemann and Georg Nagel have reached the pinnacle of science awards. They have been awarded the Nobel Prize in Physiology or Medicine for their work in optogenetics, specifically, revealing the links between neural circuits and specific memories, feelings and behaviours relevant for neurological and psychiatric disorders. Already, in clinical medicine, researchers are studying to use the method to try to restore sight for people with visual impairment. The three men will share the GBP900,000 (RM4.9 mil) prize money. Their research provides important insights into how the nervous system interacts with various cells in other areas of the body, such as in the heart and the gut. Let’s take a look at this momentous occasion with a first reaction from the scientists.

5. FOR YOUR EYES 📺

F1 Fever still on

1. No anthem, it’s ok. The crowd went on to sing the viral 33 Max Verstappen song (listen here) during the podium ceremony - you might have heard it before. Origins of this song here.

2. Interesting facts about Sepang Circuit.

3. Malaysia’s one and only F1 driver, Alex Yoong. From the man himself, how he got into F1.

4. Switching out gears. Cadillac F1 driver Valtteri Bottas cycled to Singapore for the next grand prix from KL.