☕️ Malaysia Money Stories: Withdraw EPF to pay housing loan - good or bad idea?

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

Food is a top priority for Malaysian travellers in Japan, with a recent survey showing that Gen Z spends 37% and millennials spend 27% of their travel budget at convenience stores such as Lawson, 7 Eleven and Family Mart. The survey, by Wise, highlights how these stores are a popular choice for Malaysians, particularly millennials (ages 28-43) and Gen Z (12-37), during their trips to Japan.

Americans spent a staggering USD186 bil on their pets last year, surpassing the amount spent on childcare, according to the Bureau of Economic Analysis. This figure includes expenses like food, vet visits, toys, and grooming. Pet spending soared during the COVID-19 pandemic, driven by an influx of pet adoptions and increased spending on their care. Between 2019 and 2023, pet spending grew at a compound annual rate of 11%, significantly outpacing the 6% growth in overall consumer spending and the 5% growth in pet spending from the previous decade.

Global voter turnout has dropped by nearly 10 percentage points, from 65.2% in 2008 to 55.5% in 2023, according to a report on democracy by Stockholm-based International IDEA. The report highlights a concerning trend of diminishing voter participation and increasing scepticism about election results. Out of the 173 countries examined, almost half show a significant decline in key democratic elements, such as holding credible elections and maintaining press freedom, as noted by the think tank’s Secretary-General, Casas-Zamora.

3. IN MALAYSIA 🇲🇾

After almost 20 years, the final sentence for Altantunya’s murderer has been decided
The Federal Court has decided to commute Altantunya Shaariibuu’s murderer, Azilah Hadri death sentence to 40 years in jail and 12 rotan strokes. The decision by the court was given after Altantunya’s father, Shaariibuu Setev provided a letter supporting swapping the death sentence with jail time, as the father believed in the sanctity of human life. Azilah would likely finish serving his jail sentence in 2034, after remission, as the jail sentence is to run from the date of his arrest on Nov 1, 2006. For those that may have missed the train on this tragic murder, Altantuya, 28, was murdered in a deserted area in Shah Alam, Selangor, in October 2006. Her remains were blown up with military-grade explosives. Until today, who made the order to call a hit on her remains a mystery.

GISB Saga - Rearrest
Federal Criminal Investigation Department (CID) director Commissioner Mohd Shuhaily Mohd Zain told the media that sixteen individuals linked to the Global Ikhwan Services and Business Holdings (GISB) were rearrested yesterday. The GISB 16, including the group’s CEO and his wife, are now among the 58 individuals detained under the Security Offences (Special Measures) Act 2012 (Sosma). During the investigation, almost RM19.9 mil worth of assets have been frozen and another RM52.4 mil worth of properties in 10 different countries, are also under the microscope. Undoubtedly, GISB is a true business empire, but it is driven by the wrong reasons - allegedly free child labour and unpaid taxes.

Putrajaya may have the solution to reverse the negative impact of AI
Human Resource Minister Steven Sim said that according to a report created by Talent Corp, up to 600,000 workers from 10 key industries could be displaced as artificial intelligence, digitalisation and green technology begin to shape the future of work. However, Sim added that with upskilling and reskilling, the soon-to-be retrenched workers can transition into new roles that emerged from the disruptions of new technologies.

The future of AI and other new technologies disrupting the workforce may come sooner than expected as The Malaysian Reserve (TMR) has reported that more than 500 employees of Bytedance Ltd working in Malaysia, had been left unemployed, after receiving termination emails from the company. Most workers are content moderators catering to Southeast Asia and other regions. The big-scale workforce retrenchment may be prompted by the increased utilisation of automated systems and artificial intelligence to moderate content on its platform, TikTok. Content moderators are the ones who review and monitor user-generated content on online platforms to ensure that it meets certain standards and guidelines. It is one of those roles that are routine-based and process-oriented. If you think your work fits those criteria, be proactive and start learning new skills as your job may no longer exist in the future.

Public Bank acquires late founder’s stake in insurer for RM1.72 bil cash
Public Bank Bhd has acquired a 44.15% stake in LPI Capital Bhd for RM1.72 bil cash. Both Public Bank and LPI were founded by the late Teh Hong Piow and Teh’s estate and its private vehicle Consolidated Teh Holdings Sdn Bhd, which holds 44.15% of LPI. The stake in LPI was purchased at RM9.80 per share, at a 25% discount compared to LPI’s stock price of RM13 prior to the stock being suspended for trading. Following the acquisition of LPI, Public Bank CEO Dr Tay Ah Lek told the media that the bank is still thirsty for more merger and acquisition (M&A) opportunities, especially in the new Indo-China markets.

In another news regarding Public Bank, the daughter of the late founder, Diona Teh Li Shian stated that the estate of her late founder and Consolidated Teh Holdings will reduce their stake in the bank down to 10% in the next five years, in compliance with the Financial Services Act. At the moment, both the estate and the private vehicle own 23.41% of Public Bank. The grandfather rule allowed by BNM now only applies to 2 banking giants after the passing of Teh Hong Piow- the 82-year-old founder of Hong Leong, Quek Leng Chan, and former chairman of AmBank Group, 85-year-old Azman Hashim.

Shorts

1. Warning to the northern states of the Peninsular and Sabah as the Malaysian Meteorological Department (MetMalaysia) predicted a slightly above-average rainfall, from November up until February. So, please be cautious and alert to your surroundings, especially to those living in one of the 5,648 flood-prone hotspots identified by the Fire and Rescue Department. Anywhere there are trees, avoid parking your car - if King Myvi can’t fight nature, your Ferrari stands a lower chance.

2. Data centres are not only hotcakes in Johor and the Klang Valley but a special border development zone in Kedah dubbed Delapan has also stolen a piece of the pie after real estate advisory firm AREA Group of Companies acquired 30 acres of industrial in Delapan to develop the first phase of its hyperscale data centre campus called AREA Data Centre Campus (ADCC). AREA Group's ultimate plan is to buy up 156 acres of land in Delapan to develop the entire phases of ADCC which will have an estimated gross development value (GDV) of USD15 bil (RM64.3 bil).

3. The LHDN-UTAR drama has not ended yet, even though PM Anwar Ibrahim has cancelled Universiti Tunku Abdul Rahman's (UTAR) RM83 mil outstanding tax bill. In an interesting turn of events, the Treasury issued a letter stating that from the Year of Assessment 2024 onwards, UTAR needs to pay its taxes. Based on the letter, it is clear that the Treasury resonated with LHDN’s stance that UTAR and UTAR Education Foundation are two separate entities. Only UTAR Education Foundation, which wholly owns UTAR, has received tax-exempt status since 2003.

4. AROUND THE WORLD 🌎

What's with Israel and breaking international laws?
Israel just wants to kill anything that gets in its way. The UN Interim Force in Lebanon (UNIFIL) saw three of its positions coming under fire from Israeli forces, with two UNIFIL personnel injured and the task force’s equipment and vehicles damaged, according to the peacekeepers. UNIFIL is following up with Israeli forces regarding the incidents, with no response or comment so far. UNIFIL also stated that any deliberate attack on peacekeepers is a grave violation of international humanitarian law. This comes as the top UN official in Lebanon pushed for the enforcement of UN resolution 1701, which states that there would be no armed forces along the southern Lebanese border other than Lebanese troops.

A UN inquiry has also accused Israel of war crimes and the crime against humanity of extermination due to a “concerted policy” of destroying Gaza’s healthcare system with its “relentless and deliberate attacks on medical personnel and facilities”, including the torture of said personnel.

Meanwhile, the US State Department warned that it was unacceptable for the Israeli invasion of Lebanon to “turn into another Gaza”, in response to Israeli PM Netanyahu’s words warning the Lebanese people. A spokesperson said there should be “no kind of military action in Lebanon that looks anything like Gaza and leaves a result anything like Gaza”.

As an aside, the Netherlands is being sued by Palestinian human rights organisations, Dutch social justice NGOs, and Jewish organisations who do not support the Israeli government. The groups are filing a legal complaint against the state for its “alleged failure to prevent Israel from committing possible genocide in Gaza and other violations of international law”, arguing that the Netherlands has a legal obligation to do everything in its power. So why is no one suing Big Brother US?

The Gulf states have also lobbied for the US to stop Israel from attacking Iran’s oil sites, as they are concerned that their own oil facilities could come under fire from Tehran’s proxies should the conflict escalate. This also follows Iran warning Saudi Arabia that it “could not guarantee the safety of the kingdom’s oil facilities” if they help Israel in carrying out an attack. This definitely sounds like a threat.

Worldly affairs

1. Indian business titan Ratan Tata dies at age 86

   The former chairman of the Tata Group, credited with transforming the group into an internationally renowned conglomerate generating USD100 bil a year in revenue with a wide-ranging portfolio, passed away at the age of 86, after being hospitalised for “age-related medical conditions”. Current Tata chairman N Chandrasekaran confirmed the businessman’s death but did not provide a cause of death.

   Tata took over as group chairman in 1991, working his way up from being a worker on the shop floor for over 29 years. His time as chairman saw the group expand its global footprint to include luxury brands such as Jaguar and Land Rover.
   Interesting point: when he was opposed by older board members, he instituted a company retirement age policy.

   Tata was cremated with full state honours at a funeral attended by corporate leaders, politicians, and celebrities. Maharashtra state also declared a day of mourning, with thousands turning up to pay their respects in Mumbai, where his funeral was held.
   Fun fact: Tata owns Jaguar and Land Rover, after acquiring the then-failing automaker from Ford for USD2.3 bil

2. Hurricane Milton exits Florida, leaving millions without power

   The weather phenomenon passed through the US state of Florida, leaving at least 19 tornadoes and multiple destroyed homes in its wake, with at least four dead. The hurricane also knocked out the electric supply to more than 3 million homes and businesses across the state, some of which were already waiting for days after Hurricane Helene passed through the area two weeks prior. A silver lining is that the Tampa Bay area, which was predicted to be affected by “catastrophic flooding”, was spared said flooding.

   As an aside, US President Biden has denied claims on social media that the US government was secretly controlling the weather and engineered Hurricane Milton, calling the claims “beyond ridiculous” and saying “it’s so stupid, it’s got to stop”. What do they think they have, the Weather Control Device from Red Alert 2?

   Meanwhile, BBC has also taken a ribbing, particularly for its weather app, where a fault led to incorrect forecasts of hurricane-force winds and apocalyptic temperatures across the globe. The fault prompted BBC presenters to take to social media to explain the glitch, which was caused by a fault in the third party that supplies BBC Weather with its data.

   This new house pet is probably not the best welcome home after a hurricane.

Shorts:

1. Tennis star Nadal announces retirement

   22-time Grand Slam winner Rafael Nadal announced his retirement, which was expected after he was forced away from the court for several months due to injury. The 38-year-old will be making his last appearance for Spain at the Davis Cup Finals in November.

2. Airline pilot dies mid-flight

   A 59-year-old Turkish Airlines pilot died mid-flight during a flight from Seattle to Istanbul, leading to an emergency landing in New York. The crew made the decision after a failed medical intervention, and the incident has highlighted the importance of aircraft operating with multiple pilots.

3. Teen breaks record by climbing Earth's 14 highest peaks

   Nepalese teenager Nima Rinji Sherpa, aged 18, broke the world record as the youngest mountaineer to reach the top of the world’s 14 highest peaks, known as the “eight-thousanders” for their height of more than 8,000 metres above sea level. He also performed the feat in 740 days.

5. FOR YOUR EYES 📺

1. Withdrawing from EPF to pay home loan - good or bad idea? An anonymous sharing on Malaysia Money Stories - a safe place for Malaysians to share their financial wins and struggles.

2. Ali Wong is back at it again with another comedy special, talking about her life after her divorce.

3. Yesterday, 10/10 was World Mental Health Day. Our thread below on suicide and mental health.