☕️ Dear Malaysians, our future retirement is not okay

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

USD400 billion (RM1.7 trillion) is the net worth milestone Elon Musk reached, becoming the first person to achieve this level of wealth. That’s about the same as the whole Malaysian economy of USD399 bil in 2023. This comes after an insider share sale of his privately held SpaceX, which boosted his fortune by USD50 bil, along with a rally in Tesla shares. Musk’s wealth surged by USD62.8 bil in a single day, marking the largest one-day jump in history. This leap contributed to the combined fortunes of the world’s 500 richest people surpassing USD10 tril, a value comparable to the combined GDP of Germany, Japan, and Australia. Yes, combined.

25,000 jobs are available in Malaysia’s rail industry, including the maintenance, repair, and overhaul (MRO) sector, according to Deputy Prime Minister Ahmad Zahid Hamidi. These jobs offer an average starting salary of RM3,000 and a promising career path. The government has made strategic investments in the MRT, LRT, RTS Link, and ECRL services, aiming to make rail transportation the country’s main mode of travel with a target of 40% rail travel by 2030. The demand for workers in the rail MRO sector is expected to rise, especially if the Singapore-Kuala Lumpur High-Speed Rail project is approved.

One-fifth of adults aged 16 to 65 in the rich world perform no better in tests of maths and reading than what would be expected of a primary school pupil, according to a study by the OECD. The study found that many adults have become less literate over the past decade. The OECD’s “Survey of Adult Skills”, which tests 160,000 adults across 31 countries and regions in numeracy, literacy, and problem-solving, assesses if individuals have the skills needed to thrive in jobs and daily life. Read: Do Adults Have the Skills They Need to Thrive in a Changing World?

3. IN MALAYSIA 🇲🇾

Dear Malaysians, our future retirement is not okay
The Belanjawanku 2024/2025, which is a guide developed by EPF and the Social Wellbeing Research Centre (SWRC) at the University of Malaya, revealed that a single elderly person needs RM2,690 a month to maintain a reasonable standard of living in retirement, equivalent to RM650,000 in retirement savings (if you are more than 50 years old and you are no closer to the amount, be prepared for a lifelong learning working). Additionally, based on the previous basic savings benchmark of RM240,000 by age 55 (the new benchmark is revised up to RM390,000), only 36% of its active members in formal jobs have saved enough. As of November 2024, EPF has 8.69 mil of active members. Assuming 80% are in formal jobs, so there are about 5.56 mil members that still have not achieved the minimum savings benchmark. Active members refer to members who contributed at least once in the last 12 months.

Within the Belanjawanku 2024/2025, EPF also includes the Retirement Income Adequacy (RIA) Framework which introduces the recommended savings level based on three tiers, comprising ‘basic’, ‘adequate’ and ‘enhanced’ levels of savings. Below are the details:

The RIA Framework, which is set to be implemented in January 2026, allows members to set savings targets that reflect different retirement lifestyles and aspirations.

Politicians getting the 12.12 promo at the court

• In regards to Deputy PM Ahmad Zahid Hamidi’s Foreign Visa System (VLN) corruption case, the prosecution informed the Court of Appeal that they were making a U-turn and decided to drop their appeal. With this, the Shah Alam High Court’s decision two years ago, to grant Zahid a discharge amounting to an acquittal (DAA) remains. The prosecution justifies their decision by stating that they have no evidence that Zahid is guilty. To refresh everyone's mind, previously, Zahid faced a total of 40 counts, 33 counts for receiving bribes amounting to RM43.6 mil in return for extending Ultra Kirana Sdn Bhd’s contract as the operator of a one-stop centre service in China and the VLN system and 7 counts for receiving RM3.14 mil in cash from Ultra Kirana.

• On the other hand, guess that Syed Saddiq missed the 12.12 promo as lawyers of the Muar MP felt that the judge had been prejudiced against Syed Saadiq for taking more than a year to deliver the guilty verdict to him for misappropriating over RM1 mil of Bersatu’s fund. Consequently, Syed Saddiq’s lawyers filed a petition stating that Judge Azhar Abdul Hamid did not consider all the defences as required by the law, breaching Section 182a of the Criminal Procedure Code, that resulted in the guilty sentence given (seven years in jail, two strokes of the rotan, and fine of RM10 mil). Saddiq has filed his petition of appeal listing 18 reasons why he should be acquitted and discharged.

It will be a jam PAC-k year for 2025
The Public Accounts Committee (PAC) chaired by Masjid Tanah MP Mas Ermieyati Samsudin announced that 2025 will not be a quiet year as the committee has planned five new proceedings into:

• Kuala Lumpur’s land development;

• The impact of private healthcare price increases on public hospitals;

• The procurement of electric trains through an RM10.7 billion leasing agreement with China;

• The privatisation of Malaysia Airports Holdings Bhd;

• Unspecified domestic investments by Khazanah Nasional Bhd

The final two new planned proceedings touch heavily on Khazanah Nasional, who has been in the spotlight for the wrong reasons. However, at the top level, the country’s sovereign wealth fund recorded an earnings before interest and tax (EBIT) of RM5.9 bil in FY2023, a 270% increase compared to FY2022, where Khazanah registered an EBIT of only RM1.6 bil. Globally, according to the Sovereign Wealth Fund Institute, Khazanah is the 36th largest in the world. Comparatively, according to the World Bank, Malaysia is the 35th largest economy in the world, based on nominal GDP. Is Khazanah underperforming?

Business

• Transport Minister Anthony Loke announced that Malaysia Airports Holdings Berhad (MAHB) is planning to add a few terminals and a fourth runway at the Kuala Lumpur International Airport (KLIA). Below are the details of MAHB’s long-term plans:

  • To increase the capacity of KLIA 1 from 30 mil passengers per annum (mppa) to 59 mppa;

  • To expand the capacity of KLIA 2 from 45 mppa to 67 mppa;

  • To create a fourth runaway;

  • To construct a new Terminal 3;

  • To build a Private Premium Terminal which is a special terminal for passengers who want to get the premium services at the airport;

  • To establish a Haj and Umrah Terminal that has a capacity of 5 mppa where immigration inspection by the Saudi Arabian government will be implemented at KLIA (pre-clearance).

• Italian oil supermajor Eni SpA, on behalf of the joint venture (JV) with Malaysia’s Petroliam Nasional Bhd (Petronas) and Japan’s Euglena Co Ltd, has awarded an RM4.43 bil contract to South Korean engineering firm Samsung E&A to build a refinery in Malaysia to produce sustainable aviation fuel (SAF) and other biofuels. The biorefinery that will be built at the Pengerang Integrated Complex in Johor, is set to be completed by 2H2028. European Union (EU), Singapore and South Korea are expected to be the main customers of the biorefinery’s products.

• According to The Edge, based on the sale of U Mobile’s stake that was previously owned by Singapore’s Straits Mobile Investments Pte Ltd, the 5G tender-winning telco company is valued at RM7.5 bil. At the time when Straits Mobile first acquired the 33% stake in U Mobile for RM625 mil back in 2010, U Mobile was valued at a mere RM1.9 bil. This means that the Singaporean company made almost 4x ROI. Kenyang.

4. AROUND THE WORLD 🌎

Robotaxi startup Cruise is crashing
General Motors has announced that they are backing-off from Cruise, even after they have invested more than USD10 bil in the robotaxi startup since 2016. Cruise has a fleet of driverless Chevrolet Bolt robotaxi operating on the road, after getting a green light from regulators in San Francisco in August 2023. However, Cruise was banned from operating in California just months later, after one of its cars seriously injured a pedestrian.

This may have triggered GM’s doubt in the investments, with its CEO citing “hefty costs of fleet operation” and a “considerable time and expense required to scale a robotaxi business in an increasingly competitive market”. Analysts believe that GM’s move also potentially implies that other rival robotaxi companies like Tesla and Waymo have better tech.

Adding salt to wound, after GM, Honda Motors also announced that they are ending its capital tie-up with Cruise, where the Japanese automaker had invested USD852 mil. This crushes the ambition to bring the robotaxis services to Japan.

Meanwhile, GM’s decision continues to ripple through the market, extending to Cruise's minority investors including Microsoft, which made an investment in Cruise in 2021. Microsoft will take USD800 mil impairment charge as a result of GM’s actions, according to a regulatory filing.

Temasek to lead a USD282 mil fund-raising round for Rebel Foods India
India food start-up, Rebel Foods has announced a USD210 mil funding round led by  Singapore’s investment company Temasek, ahead of an IPO by 2026. The Series G round includes the sale of new and existing stock, allowing current shareholders to sell some of their holdings. Specialising in online-only restaurants, the Mumbai-based company is now valued at USD1.4 bil. The start-up operates in 75 cities in India, where it serves customers from 450 dark kitchens, named so because they have no waiters or tables. It targets to increase its facilities to 800 by 2029, covering a total of 200 cities including in Britain and UAE where it is already operating from. As innovative as it gets, Rebel Foods also goes retro as it is the franchise holder of US fast-food chain Wendy’s in India, with more than 160 stores and it plans to bring more global brands into India.

China’s Xiaohongshu crosses USD1bil in profit
Xiaohongshu, the Chinese version of Instagram that gained popularity among younger Chinese during the pandemic, is on track to double its profits to more than USD1 bil (RM4.4bil) in 2024, ahead of a potential IPO. The strong results are likely to revive speculation around the market debut of a startup valued at USD20 bil in its last funding round in 2021. The app’s rapid growth comes in part at the expense of incumbent e-commerce leaders Alibaba Group Holding Ltd. and JD.com Inc, where it went through an explosive growth through getting influencers to sell products to millions of users. Amid the economic downturn in China, Xiaohongshu has grown around 300 mil monthly active users, and is one of just a few Chinese internet leaders to remain privately held, which means that its not obligated to disclose its finances, and not subject to independent audit.

Myanmar’s 2021 coup led to its opium harvest decline
Did you know that Myanmar is actually the world’s biggest producer of opium? In 2023, it harvested 1,080 tonnes of the narcotic — more than double that of previous leader Afghanistan after the Taliban government cracked down on poppy cultivation. In 2024 so far, Myanmar has produced 955 tonnes. 

Poppies flourish in Myanmar’s remote borderlands, where ethnic minority armed groups and criminal outfits refine them into heroin and law enforcement turns a blind eye to the billion-dollar trade. The authorities face severe challenges in curbing the poppy cultivation.

However a recent report by the UN has said that its harvest has declined for the first time since the 2021 coup, showing a “strong correlation” between reduced harvest and escalating conflict in traditional poppy-farming regions. 

While it may be received as good news in the fight against narcotics, the country’s economy has tanked since the coup, with the World Bank this week forecasting a 1% contraction in the fiscal year ending March 2025. The coup also triggered social and economic turmoil, and the armed conflict across the country and has displaced more than 3 mil people.

Shorts

1. Australia to tax tech giants who does not pay for the news on their site

   After the ban of social media to under 16s, Australia has announced that big tech firms who are earning more than AUD 250mil annually have to pay for local news that drives traffic to their site, or risk being charged a hefty tax for not doing so, effective Jan 2025. The government said that it is to assist traditional media companies waging a battle for survival as their content is made freely available on these platforms, wiping out precious advertising dollars and making hundreds of Australian journalists lose their jobs.

2. Saudi Arabia is the 2034 World Cup host

   FIFA has confirmed that Saudi Arabia would be the host for the 2034 men’s football World Cup, a decision that came last Wednesday via a FIFA Congress meeting online. The English, Scottish and Welsh FA supported the bid without any qualms, but the Swiss FA and Danish FA supported and demanded for human rights improvement by FIFA. Amnesty International condemned the decision to hold the 2034 World Cup in Saudi and released a joint statement on behalf of 21 separate organisations. The centenary tournament host was awarded to Spain, Portugal and Morocco who will be joint hosts for the 2030 tournament.
   For your weekend entertainment - a collection of the worst misses in football. Even Cristiano Ronaldo could miss an open goal, so don’t beat yourself too hard if you failed a simple task recently.

5. FOR YOUR EYES 📺

X Sports at your desk

1. Watching this wingsuit jump POV from a mountain peak into a village even at my desk got my heart racing.

2. Hot air balloon + slide in the sky