☕️ 8,076 students skipped SPM in 2024

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

38 mil international visitors —Malaysia surpassed its pre-pandemic record of 35 mil in 2019, according to Tourism Minister Datuk Seri Tiong King Sing. This surge pushed visitor receipts past RM100 bil for the first time, hitting RM106.7 bil. In 2024, Malaysia recorded 25 mil tourists, a 24.2% increase from 20.1 mil in 2023. Wait a minute, it doesn’t add up. Well, the remaining is actually the number of excursionists, which rose to 12,944,517. Excursionists are visitors who arrive and leave on the same day (e.g. transits, day trips). On another note, The average spending per tourist hit a new high of RM4,086.60 — a 23.8% increase from the pre-pandemic level in 2019 (RM3,300.40).

RM2.3 bil levy collected — Human Resource Development Corporation (HRD Corp) achieved its highest collection in 32 years, up from RM2.1 bil in 2023, says Human Resources Minister Steven Sim. RM2.27 bil was approved for use, a 30% increase from RM1.7 bil in 2023. Additionally, 85% of levy claims were disbursed, marking another 30% rise from the previous year. Sim shared that HRD intends to streamline its services by expediting levy grant approval times to one hour this year and cutting levy payment processing time from seven days to three days.

18,181 deaths (15.2%) — Pneumonia became Malaysia’s leading cause of all medically-certified deaths in 2023, surpassing coronary heart disease for the first time in two decades. Out of 196,965 total deaths recorded in 2023, 119,652 (60.7%) were medically certified. Pneumonia was the top cause of death among females (7,815 cases, 16.4%), seniors (14,377 deaths, 19.3%), and the Chinese community (16.4%).

3. IN MALAYSIA 🇲🇾

8,076 students skipped SPM in 2024
In a written response to the Parliament, Education Minister Fadhlina Sidek stated that about 2% of the total number of students who registered for at least 6 subjects for SPM 2024 did not sit for any written examination papers. Out of the 8,076 students who skipped SPM entirely, about 77% of them came from the Ministry of Education’s schools. The main reasons for absenteeism in the 2024 SPM exams include employment, family issues, health problems, death, and relocation abroad. Fadhlina also revealed that her ministry has introduced intervention programmes to identify at-risk students, involving all stakeholders, including teachers, parents, communities, and even the private sector. But, we cannot deny the fact that a 2% exam dropout rate is a huge amount, given that we need a lot of skilled talent to drive the economy. Malaysia needs 50,000 skilled engineers, but Malaysian universities are producing only about 5,000 engineers annually. A lower supply base from schools will make the situation worse.

All things Johor

• Sunway Bhd has inked a deal to develop a mixed-used development worth RM2.6 bil adjacent to the Bukit Chagar station under the Johor Bahru–Singapore Rapid Transit System (RTS). The transit-oriented project will involve the construction of four residential and commercial towers, with Sunway also getting the rights to build a mall. Under the agreement with Mass Rapid Transit Corporation Sdn Bhd (MRT Corp), the state-owned RTS project owner will receive a payment of RM450.8 mil as development rights value subject to adjustments. Transfer of development rights (TDR) is one institutional innovation that can balance the conflict between public and private interests. The principle of TDR is to allow the unused development rights of a site to be transferred from the area where the government wants to see less development to the area where the government seeks more development. In the case of this Sunway project, Sunway outright purchased development rights from MRT Corp to increase the development density of the project.

• Putrajaya is saying nay to LRT and yay to an elevated Autonomous Rapid Transit (ART) system, which could soon disperse traffic from the upcoming Rapid Transit System Link (RTS Link). Transport Minister Anthony Loke announced that the Government will open an RFP (request for proposal) soon. Loke justified the ART over the LRT move as the elevated ART is more flexible because the lanes could be utilised by rail and bus. It is also easier and faster to build ART as compared to a LRT system. Watch here - an ART in action in Sarawak.

• Data centre giant AirTrunk, recently acquired by Blackstone for USD24 bil (RM107 bil), has decided to go big in Malaysia by establishing a USD2.5 bil (RM11.1bil) facility to support artificial intelligence and cloud computing services. The new facility in Johor will be AirTrunk’s second in the country as the company increases its investment in Malaysia to USD3.5 bil (RM15.6 bil). AirTrunk did not disclose which clients would be the tenants in the facility, but it is already finalised.

All things military

• Home Minister Saifuddin Nasution said that both Putrajaya and THHE Destini have mutually agreed to terminate the agreement for the latter to supply three Offshore Patrol Vessels (OPV) for the Malaysian Maritime Enforcement Agency (MMEA). The initial contract worth RM738.9 mil, signed in 2017, was for the firm to supply, deliver, test and commission three OPVs within 3.5 years. Unfortunately, after spending more than RM750 mil, Putrajaya only received one ship dubbed KM Tun Fatimah, which was also behind schedule. When will they learn? After the case of the ‘stealth’ littoral combat ship and the ‘invisible’ Blackhawk helicopter, now we have the case of counting errors in building offshore patrol vessels.

  Fortunately for MMEA, Putrajaya has chosen Turkiye’s Desan Shipyard to build the agency’s multi-purpose mission ship (MPMS). The MPMS ship is expected to be operational by 1Q2027 and will significantly boost MMEA’s operational capabilities as the ship can operate non-stop for 30 days. As per Budget 2025, Putrajaya has allocated RM350 mil for the MPMS acquisition.

• In answering the public’s queries, Law Minister Azalina Othman provided three main reasons why Putrajaya is spending RM16 bil to lease 28 military helicopters instead of outright purchasing them. The three reasons are -

  • To quickly replace ageing assets. According to Azalina, many helicopters used by government agencies, including the Malaysian Armed Forces, were between 12 and 32 years old.

  • To significantly increase readiness levels. Azalina cited a 2017 Universiti Teknologi Malaysia study titled Aircraft Acquisition Conceptual Framework, which found that the Royal Malaysian Air Force's (RMAF) aircraft readiness was at just 43% between 2011 and 2015 compared to the minimum 70% mark.

  • Fiscal considerations. Azalina stated that leasing the helicopters allows the government to optimise spending by distributing costs more sustainably over 15 years. This includes maintenance, insurance coverage, and training for more than 1,300 personnel.

  
  For comparison, the cost of a military-grade Airbus H225M, the most used helicopter in RMAF, is about RM300 mil per unit with all the bells and whistles. The total outright purchase cost for 28 Airbus H225M would amount to RM8.4 bil. Mind you that the hypothetical RM8.4 bil cost does not include the 15-year maintenance cost.

KWAP brings home the (halal) bacon
The Retirement Fund Inc (KWAP) recorded its highest-ever investment income at RM18 bil for FY2024, reporting a total return of 12%. The bulk of those returns came from stock market investments, attaining 21.9%, while domestic investments generated returns of 12.9%, with the international portfolio delivering returns of 9%. With a fund size of RM185.6 bil, public equity comprised 51.7% of KWAP's total investment assets, followed by fixed income at 32.4%, private equity at 5.4%, real estate at 5.2% and infrastructure at 2.2%. The balance of 3.3% was allocated for cash management for liquidity purposes. Geographically, 74.6% of KWAP's investment assets were in Malaysia, while international markets accounted for 25.4% of its portfolio.
View the full announcement here.

4. AROUND THE WORLD 🌎

Gaza ceasefire continues to hold
For a moment, the fragile ceasefire in Gaza threatened to shatter, following Hamas claiming that Israel had violated multiple conditions of the ceasefire and that Hamas would not be releasing the next batch of Israeli captives. Israel threatened to resume attacks as a response to the decision. Egyptian and Qatari mediators scrambled to salvage the deal, with a Hamas delegation flying into Cairo for the discussions. Soon after, Egyptian and Qatari reports mentioned that mediators had bridged the gaps between the two sides and both were committed to continue implementing the ceasefire deal. The Israeli captives are now to be freed as planned and the ceasefire still holds.

Intelligence reports: Israel likely to attack Iran by mid-year
The Washington Post had recently reported, citing multiple intelligence reports, that Israel is likely to launch a preemptive attack on Iran’s nuclear programme by mid-year, which would mean escalated tensions and a risk of a wider conflict in the region. It would also set back Iran’s nuclear programme by weeks or months.

The US under President Barack Obama and European allies negotiated an agreement with Iran to halt its nuclear programme. Still, Trump, in his first term in office and encouraged by Israeli Prime Minister Benjamin Netanyahu, withdrew the US from the landmark accord and ordered sanctions reimposed on Tehran in 2018. Iran has since restarted its nuclear programme and is enriching uranium, according to the UN International Atomic Energy Agency.

Iran and Israel engaged in tit-for-tat strikes in 2024, amid wider tensions over Israel’s war in Gaza. The intelligence reports envisioned two potential strike options that each would involve the US providing aerial refuelling support and intelligence.

No comment has come from any of the parties involved so far.

Trump’s doings:

• Trump-Putin call lowers “heat” of war, but at Ukraine's expense

  Things do not seem to be in Ukraine’s favour in relation to Trump, who seems to want to end the Russian-Ukraine war as soon as he can but obviously has his priorities somewhere else. The US president had a cordial and seemingly constructive call with Russia’s Putin on Wednesday and, shortly after, US Defence Secretary Pete Hegseth came up with terms for where the US stands on peace for Ukraine: No US troops for Ukraine in any future security arrangement, no likelihood of Ukraine joining NATO, and no realistic possibility of returning to its pre-2014 borders. Makes the promise to sustain NATO support “for as long as it takes” ring hollow, hm?

• Musk’s DOGE team triggers cybersecurity concerns

  Washington’s security establishment is very disturbed by the reality that DOGE is staffed primarily with individuals connected to Musk’s companies, namely young tech professionals in their 20s, none of whom have been vetted or have government experience. Ever since taking office, Musk’s DOGE team has been taking control of essential US government systems, including the payment system, the United States Agency for International Development (USAID), the Department of Education, and the General Services Administration (GSA), which manages much of the government’s infrastructure and building portfolio. Cybersecurity experts are worried that “too much power” has been given to the DOGE team, and their lack of understanding of the intricacies of the government system could leave the country vulnerable to cyber criminals and foes weaponising the mistakes.

• Thousands of people working at African jeans factories face uncertainty as Trump shrinks US aid
  Jeans brands like Wrangler and Levi’s are pure Americana, but the manufacturing actually takes place in the United Aryan factory, on the outskirts of Kenya’s capital Nairobi. The factory is dependent on the socioeconomic benefits and trade advantages from the African Growth and Opportunity Act (AGOA), a 25-year-old US law that is going to expire in September. The AGOA gives duty-free access to thousands of goods made on the continent, particularly clothes. It is now up to Trump whether to renew or extend it, a decision that could heavily affect the livelihoods of hundreds of thousands of Africans. People are afraid that he won’t, as Trump is known for his free-trade scepticism. This factory ships up to eight million pairs of jeans to the US annually, among millions of other items.

Shorts

1. No more talks for Honda-Nissan multi-billion dollar merging

   The merging of Nissan and Honda now officially exists only in dreams, after both firms failed to agree on the tie-up. The Japanese carmakers initially aimed to combine their businesses to fight against competition from rival firms, especially in China. Had they combined, the auto group would have been worth USD 60 bil and become the world’s 4th largest by vehicle sales, after Toyota, Volkswagen and Hyundai. However, the companies said they will continue partnering on electric vehicles.

2. Villagers called to evacuate amid Indonesia’s Mount Lewotobi eruption threat

   Indonesian authorities believe that Mount Lewotobi Laki-Laki in Flores Island may erupt anytime soon, judging from the results of visual monitoring and increased volcanic and seismic activity. The alert level was raised to its highest level yesterday, calling for evacuation from areas up to 6 km around the crater. There is also a possibility of hazardous lahar floods, a type of mud or debris flow that could devastate anything in its path. Flores Island is a rather beautiful place and part of the Komodo National Park, home to the Komodo dragon.

3. 4 dead after suspected gas explosion at Taiwan mall

   An explosion at central Taiwan’s Shin Kong Mitsukoshi mall yesterday resulted in 4 deaths and left more than 20 injured. The cause of the explosion was suspected to be a gas leak, from when a gas tank was being replaced at the mall’s food court. The casualties were said to be from the falling debris that hit the victims as they exited the building. Investigations were still ongoing at the time of writing. SCMP has a video up showing the blast and its aftermath, available here.

5. FOR YOUR EYES 📺

1. Pro’s guide on what to do when you are being followed

2. Interesting history on why do clocks turn clockwise