☕️ House Arrest Bill - who qualifies to 'wfh'?

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

RM85.7 bil is the total investment required in research and development (R&D) to achieve the targets set by Malaysia’s National Science, Technology, and Innovation Policy (NSTIP) 2021-2030, according to the Ministry of Science, Technology, and Innovation (Mosti). The policy aims to increase the gross domestic expenditure on R&D (GERD) to 2.5% of GDP by 2025 and 3.5% by 2030. Currently, Malaysia’s GERD is about 1.0% of GDP, equivalent to RM13.48 bil, significantly lower than South Korea’s allocation of nearly 5.2% of its GDP, which amounted to RM368.09 bil in 2022.

The average American worker earns enough annually to purchase approximately 14,000 Big Macs, equating to about 590 calories per burger, which could feed ten adults for a year. In comparison, Swiss and Danish workers rank second and third in “MacWages,” respectively. At the other end, Mexican workers can afford about 2,500 Big Macs with their average annual wages. When adjusting for average hours worked, Americans earn the equivalent of about USD7.40 per hour, placing them third in the ranking. Danish workers top the list, earning USD8.10 per hour, followed by the Swiss. In Mexico, workers must labour for approximately 57 minutes to afford a single Big Mac.

A 56% increase in mentions of a “bottom” during this earnings season compared to the previous year suggests that corporate America is signaling a potential broadening of the U.S. stock rally beyond technology shares. Historically, such references have preceded a general improvement in earnings, according to Bank of America.

3. IN MALAYSIA 🇲🇾

Home Minister details House Arrest Bill in parliament
The proposed House Arrest Bill weirdly mentioned in Budget 2025, aims to address prison overcrowding by allowing remanded detainees awaiting trial to serve their time out of jail but under specific conditions like being monitored with electronic devices, as per the courts’ discretion.

However, certain categories of offenders will not qualify for this arrangement. Convicts set to serve 10 years or more in prison or on death row, perpetrators of national security offences and domestic violence, traffickers, and smugglers are not eligible for house arrest. Eligible offenders would need to remain at designated locations, such as their homes or care facilities, during their detention period.

The Cabinet, according to the Home Minister, has approved the bill in principle, with consultations with stakeholders to follow. When unveiled, the proposal drew flak from several parties as worries arose that ex-PM Najib Razak would be eligible for home arrest after a rumoured addendum that was part of his partial pardon- Saifuddin has struck the notion down, indicating the addendum was hearsay. You do the crime, you do the time.

Nephew of Pahang Sultan amongst others charged with assault
6 individuals accused of assaulting road construction worker Alias Awang at a stable in Kuantan on June 6 were charged today. The group allegedly attacked Alias with a knife, injuring him on his right thigh. He was reportedly also shot at by the Tengku, though the shot fortunately missed his right leg. The accused include a nephew of Pahang Sultan, Tengku Eddie Akasya, and a police officer named Mohd Fouzi. The charge carries a penalty of up to ten years in prison, a fine, or caning.

Alias, in his police report dated Nov 8, stated that he was lured to the scene by a phone call from someone linked to the royal family and was subsequently attacked by around 20 individuals. Talk about a low blow. The bail for each accused has been set at RM7,000, with the next court hearing scheduled for December 11. As the case garnered attention, Tengku Eddie’s cousin, the Pahang Crown Prince, demanded justice for Alias without regard to whoever the perpetrators were as “no one is above the law”.

Oh, the way the accused strutted in the court. 

GLC, GLICs to require ministerial approval for bonuses and benefits spending
All benefits, trips, and bonuses for GLCs and GLICs will now require ministerial approval, as announced by DPM Fadillah Yusof. Previously reserved for ministries, departments, and agencies, the new rule mandates that GLCs and GLICs submit proposals for any financial expenditures related to bonuses, incentives, or trips, which previously fell under the Cabinet's oversight only for ministries and agencies.

The announcement comes after reports that the CEO of Pelaburan Hartanah Bhd (PHB) received a substantial bonus of RM210,000 despite the company achieving only 42% of its key performance indicators. Additionally, PHB planned an overseas luxury trip for employees, which was cancelled after public scrutiny. Fadillah, later in his speech, clarified that the payment to the CEO was categorized as a special incentive rather than a bonus due to a successful long-term growth plan that increased profits to RM220.8 mil in 2023.

This “special incentive” has also caught the attention of the Public Accounts Committee (PAC), as its chairperson Mas Ermieyati Samsudin has publicly called for further investigative action into PHB’s executive bonuses spending.

Ekovest’s biggest shareholder mulling over selling multi-billion RM DUKE highway toll business 
According to sources close to the matter, Malaysian tycoon Lim Kang Hoo, the largest shareholder of Ekovest, is exploring the sale of a 60% stake in Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi), which could value the assets at up to RM5 bil. Kesturi holds a 54-year concession for the 34-kilometer Duta–Ulu Klang Expressway (DUKE).

Discussions regarding the sale are ongoing with a possibility that Ekovest may choose to retain its assets. The remaining 40% stake was purchased by the Employees Provident Fund (EPF) in 2017 for RM1.13 bil- the fund had already announced it was looking for exit options back in February. Ekovest has received approval from the EPF for an extension until February 2026 to implement a viable exit plan.

Shorts

1. Woeful week for FashionValet and its backers

   The bad news just doesn’t stop for FashionValet and its investors. PAC chairperson Mas Ermieyati announced on Thursday that the committee will be investigating the combined RM43.9 mil loss incurred by Khazanah and PNB for their venture in the company. Proceedings with representatives of both GLICs are expected to happen in the second week of December.

2. Shock for Waze users as app defaulted to Hebrew overnight
   Users opened Waze to dismay on Wednesday night as the language setting defaulted to Hebrew. Some users even reported that Waze was switching to Spanish and French, among other languages. The glitch was not isolated to Malaysia as it apparently affected users from other countries too. View an example of the incident here.
   Fun fact: Waze was formerly known as FreeMap Israel. Coincidence? Google acquired the Israeli startup in 2013 for USD1.3 bil.

4. AROUND THE WORLD 🌎

No end of war in sight for Gaza and Lebanon
As the Israel political drama unfolded, analysts believed that former Defence Minister Yoav Gallant’s sacking by Netanyahu was not going to make any big difference to the way the war on Gaza is prosecuted and that Israel is not pulling out of Gaza and Lebanon in the short term. 

It is obvious that Netanyahu has managed to remove one of the loudest voices in the government advocating for a ceasefire in Gaza. Gallant is known to prioritise saving the hostages, but Netanyahu wants a “total victory.” Netanyahu now has made sure that the voice of his new defence leadership is absolutely aligned with that of his — he has replaced the position with Israel Katz, who is seen as loyal to him only.

At the time of writing, Israel continues to raid Gaza and has killed 27 people since dawn yesterday. They also continued to bomb Beirut, in which Lebanon’s Health Ministry reported 40 people killed. Israel’s genocide in Gaza has killed at least 43,391 Palestinians and injured 102,347 since Oct 7, 2023. In Lebanon, at least 3,050 people have been killed and 13,658 wounded in Israeli attacks since the war on Gaza began.

Joe Biden is rushing more US taxpayer’s money to Ukraine while he is still in office
Meanwhile, US President Joe Biden is reportedly planning to rush billions of dollars in security assistance to Ukraine before he leaves office in January and before Trump returns to the White House (Trump is not as supportive of the Ukraine-Russia war as he is).

The US House has approved aid for Ukraine in April, including an allocation for weapons. Of the weapons transfer authority passed, USD4.3bil remains, in addition to USD2.8 bil worth of transfers lawmakers approved in previous spending measures and USD2 bil in funding for new weapons purchases. In total, that USD9 bil in military assistance would be a significant boost to Ukraine’s defence and Biden seems to be doing all he can to make sure this happens. Since Russia’s full-scale invasion of Ukraine in 2022, the US has already provided more than USD64.1 bil in military assistance to Ukraine, according to the latest data by the US Department of State.

Tech news:

1. OpenAI bought Chat.com to add into its collection of high-profile domain names

   OpenAI has bought Chat.com domain name for an undisclosed price from CTO and HubSpot co-founder Dharmesh Shah, who bought the domain last year for USD15.5 mil. Shah did announce earlier in the year that he had sold Chat.com, but he did not name the buyer until recently. He confirmed that OpenAI was the buyer and implied that he was paid in OpenAI shares. 

2. Meta’s move to boost revenue from messaging apps is paying off 

   Meta decided to acquire WhatsApp for a whopping USD22 bil 10 years ago, and now the company is reaping its rewards. In their Q3 earnings report, Meta confirmed that WhatsApp is the primary driver of a 48% year-over-year spike in non-advertising revenue from its family of apps, particularly from WhatsApp business messaging products. WhatsApp has been their key source of revenue growth since 2022. Non-ads revenue remains a tiny fraction of the total pie, adding USD434 mil in Q3 compared to USD39.9 bil in total Meta ad revenue. But it's growing at more than twice the rate as the company's ads business, pointing to an opportunity. Turning messaging into a money maker could be a huge win for Meta, which has invested billions into the category.

3. Swedish Truecaller’s founders step down as the spam-blocking app regains stock momentum

   Founders of Sweden’s most successful consumer technology companies Truecaller, Alan Mamedi and Nami Zarringhalam are stepping down from the helm of the day-to-day operations and will hand over control in January to Rishit Jhunjhunwala, the company’s product chief and head of its Indian business, but will remain with the company as strategic advisors and board members. Truecallers stock is now rebounding after a tough few years, where it lost value steadily following its IPO in 2021, and last year fell more than 32% overnight after the firm reported a 20% decline in quarterly advertising revenues. The stock has recovered well since then, nearly doubling in value, and Truecaller said its Q3 revenues rose 15% to SEK457.3 mil (USD42.3 mil). More significantly, advertising revenue increased 8% in the third quarter after several quarters of decline, alleviating concerns about its crucial ad revenue stream. 

Shorts:

1. Saudi Arabia’s Al-Jawf received its first-ever snow
   The arid desert in Saudi Arabia’s Al-Jawf region has reportedly received its inaugural snowfall - an unprecedented weather event that follows a period of intense rain and hail that revitalised valleys and created waterfalls. While authorities anticipate a vibrant and beautiful upcoming spring season, the Saudi weather department has issued warnings for continued severe weather in the coming days, with continuing thunderstorms, hail and strong winds. Saudi Arabia is not the only Middle Eastern country experiencing unusual weather patterns - neighbouring UAE also reported similar conditions that climate experts are attributing to the shift of low-pressure systems originating in the Arabian Sea, bringing wetter-than-usual weather to the typically dry region. View the scenery here.

2. Australian PM Anthony Albanese is banning social media for children under 16 years old

   In an unprecedented, world-leading move, Australian PM Anthony Albanese has recently announced plans to legislate a social media ban for children under 16 in Australia, which includes platforms Instagram and Facebook, TikTok and X, and probably also YouTube. He said that “social media is doing harm to our kids, and I’m calling time on it”. There will be no exemptions for children who have parental consent, and the responsibility falls on the socmed platforms to take reasonable steps to prevent access, he added. This is quite a commendable move.

3. Japan plans ‘conveyor belt road’ linking Tokyo and Osaka amid delivery driver shortage

   Authorities in Japan are considering building a “conveyor belt road” between Tokyo and Osaka - a “road” that will connect the capital with Osaka which is 515 km away. The road could cost up to JPY3.7 tril (EUR18.6 bil - EUR36.1 mil per km) to build, but officials are hoping that this would ease pressure on chronic labour shortage that is affecting everything from catering and retail to haulage and public transport, as well as help cut carbon emissions from transportations. Test runs are due to begin in 2027 or early 2028, with the road going into full operation in the middle of the next decade.

5. FOR YOUR EYES 📺

1. For the longest time, Google’s search business was believed to be invincible, with a near monopoly of 90%+ of market share. This might change as until recently, AI startups are releasing their own version of search engines, including OpenAI’s ChatGPT.

2. An interesting interview with Bryan Loo, founder of Tealive parent company Loob Holdings

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Checking out for the weekend with this last video here — probably the funniest Moonwalking video. Have a good weekend folks.