☕️ Mystery continues: UM's dead, mutilated animals

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

5.22 bil air passengers are expected to travel worldwide in 2025, marking the first time the number of air travellers surpasses five billion. This represents a 6.7% increase from the 4.89 bil forecast for 2024, according to the International Air Transport Association (IATA). The average return airfare in 2025 is forecast to be 1.8% lower than in 2024. Additionally, the number of flights globally is set to hit 40 million for the first time, rising by 4.6% from 2024. Total revenues are set to exceed USD1 trillion for the first time in the coming year, at USD1.007 trillion. And yet, the airline industry is such a poor business to own where value creation is high, but value capture is low.
Learn: Value creation vs value capture

RM99.3 bil is the value of Malaysia’s palm oil and related product exports from January to November 2024, reflecting an increase of RM12.5 bil compared to the same period in 2023. Seven markets collectively accounted for 54.4% of Malaysia’s total palm oil exports in 2024, with India remaining the largest market at 2.9 mil tonnes (18.5%). The palm oil sector is Malaysia’s third-largest contributor to export value, following the electrical and electronics and oil and gas sectors.

Tenaga Nasional Bhd (TNB) announced a huge electricity tariff increase for the regulatory period 2025-2027 (RP4), increased by 14.2%, from 39.95 sen/kWh to 45.62 sen/kWh. TNB blames the increase in power generation cost, which will be generated mainly from gas and coal. For RP4, the CAPEX is set at RM42.82 bil (RP3: RM20.55 bil) and OPEX at RM20.78 bil (RP3: RM17.69 bil). The new electricity tariff will be effective July 1, 2025.

3. IN MALAYSIA 🇲🇾

The Lorry Dilemma: The First Time Anthony Loke Is Not There To Save the Day
According to the police, in the first 10 months of 2024, 825 lorries were involved in accidents that caused the death of 5,364 individuals. With nearly 3 lorries involved in an accident per day, that is three accidents too many. Bukit Aman Traffic Investigation and Enforcement Department (JSPT) Director, Mohd Yusri Hassan Basri said that lorries represented only 4.6% of the total vehicles involved in fatal accidents, whereas cars are still leading the chart at 86%. Only 177 commercial vehicles were seized and put out of circulation due to multiple offences such as carrying dangerous loads, no tyre threads, non-functioning signal lights and non-functioning brakes. Where are the police who were supposed to take out the 825 lorries before they went out to kill people?

Among the recent high-profile accidents involving lorries was the fatal tragic six-vehicle crash on the North-South Expressway in Ayer Keroh, Melaka that claimed the lives of seven victims. It all started when the right front tyre of a lorry came off and went into the middle lane of the highway. A tour bus hit the tyre, lost control, and veered into the opposite lane. As the bus veered into the opposite lane, it collided with a trailer. The collision caused the trailer to veer into the left lane, hitting the road barrier before colliding with the sedan and the MPV. You may ask, how the hell can a tyre come off a vehicle? Watch here how a lorry can still operate even if one of its tyres is holding dear life to the vehicle by only a bolt.

What is the solution to this dilemma (lorries involved in fatal accidents will at least kill 6 persons)? The National Institute of Occupational Safety and Health (NIOSH) has underlined a few no-brainer strategies to mitigate this issue:

1. Regular maintenance be mandatory for all heavy vehicles with strict supervision by the Computerised Vehicle Inspection Centre (Puspakom) to ensure they are roadworthy;

2. Heavier penalties need to be imposed by the Road Transport Department (JPJ);

3. Adopt the use of advanced monitoring technology such as Tyre Pressure Monitoring Systems (TPMS) and telematics so that mechanical problems are detected directly;

4. Implement regular training for lorry drivers on courteous driving, understanding of road laws and the application of absolute safety principles.

The Theriocide Story at UM Has Not Ended
As we thought that the case of mutilated cats at the University of Malaya (UM) has closed its books, think again as the police, out of all people, have made a U-turn and decided to open an investigation into the deaths of the cats, allegedly killed with sharp objects. Kuala Lumpur Police Chief Rusdi Mohd Isa stated that this new investigation was prompted by the revelation by animal activists claiming that the slain cat was cut using a sharp object. The animal activists - My Stray Rescue and animal activist Shima Aris said that based on a post-mortem conducted at a private veterinary clinic, the cats’ limbs were not mutilated by dogs.

While the authorities are still wrapping their head around the existing cats’ deaths, one cat and a dog have been found mutilated, as per the University of Malaya Student Union (KMUM). According to KMUM, it was suggested that at least two individuals may have carried out the crimes, operating discreetly to avoid detection. I still remember that as an alumni, UM is covered by CCTVs to its brim. How can the perpetrators get away multiple times?

Shorts

1. Telegram and WeChat take the lead in obtaining the Class License
   After the announcement that all social media and Internet messaging services with at least 8 mil registered users in Malaysia must apply for a Class Licence, Telegram and Tencent's WeChat are the early birds who have initiated the process of obtaining the license. December 31 is the deadline for all service providers to submit their applications and the Malaysian Communications and Multimedia Commission (MCMC) warned that failure to do so may lead to regulatory actions.

2. HKG-TPE knocked KUL-SIN off the perch as the busiest int’l route
   The Kuala Lumpur - Singapore route is no longer the busiest international airline route globally as the Hong Kong - Taipei route took the crown for 2024 with an impressive 6.8 mil seats (compared to KUL-SIN’s 5.4 mil seats). The HKG-TPE route recorded an outstanding 48% increase compared to 2023, mainly due to post-pandemic recovery. Based on the OAG’s Global Airline Schedules Data for 2024, 9 out of 10 top busiest international air routes are within the Asia continent, with the sole exception of the New York JFK - Heathrow route which sits at the 10th place, with 4.01 mil seats

   

   Credits: OAG

3. F&B businesses in Kelantan now need a halal certification before renewing their business license
   Kelantan intends to be the trailblazer in this country as the state government requires all food and beverage premises to obtain Malaysian Halal Certification before renewing business licences with local authorities. Kota Bharu Municipal Council-Islamic City will pioneer the move before it is replicated by other local authorities. At the moment, 453 certificates have been issued to businesses in the state from January until now. To understand why this move can fly in Kelantan, it has a population of 1.79 mil, of which 95.5% of them are Muslims. In comparison to more urbanised states such as Selangor (61.1%), Johor (59.7%) and Penang (45.5%), the demographics are more balanced.

4. AROUND THE WORLD 🌎

Israel kills more journalists in its effort to silence the media
Yesterday in the Nuseirat refugee camp, a clearly marked press broadcasting van and 5 journalists from the al-Quds Today channel who were covering events near al-Awda Hospital were mercilessly obliterated by an Israel air strike. One of them had been waiting for his wife in front of the hospital while she was in labour to give birth to their first child.

It was yet another attack by Israel targeting journalists, contributing to the long list of killed journalists numbers reported by authorities. Paris-based Reporters Without Borders earlier this month said more than 145 journalists had been killed by the Israeli army in Gaza since the start of the war in October 2023. The Palestinian Journalists Syndicate last week reported a higher death toll of 190 journalists killed and at least 400 injured since the war started.

Israel, which has not allowed foreign journalists to enter the Gaza Strip except on military embeds, has been condemned by several press freedom organisations, which now rate the Strip as the most dangerous part of the world for reporting. The Committee to Protect Journalists (CPJ) called on the international community to hold Israel accountable for its attacks against the media.

AI Things

• Is Google really using competitor Anthropic’s Claude to improve its Gemini AI?
  Instead of painstakingly having to evaluate AI responses, it appears that tech companies, in their race to build a better AI model, often evaluate against competitors, typically by running their own models through industry benchmarks. Correspondence at TechCrunch has reported that Google is comparing its Gemini answers against outputs produced by Anthropic’s competitor model Claude. Interestingly, Anthropic’s commercial terms of service forbid customers from accessing Claude “to build a competing product or service” or “train competing AI models” without approval from Anthropic. Google did not say if they have permission to access, but a spokesperson said that any suggestion that they have used Anthropic models to train Gemini is inaccurate.

• Terminator in the making - OpenAI said to have considered building its own humanoid robot
  A report from The Information has said that OpenAI, which in 2021 has quietly shut down its robotics division, is now exploring to build its own humanoid robot. The ChatGPT maker has in fact been involved for some time now, considering that they have invested in humanoid developer companies Figure and 1X, along with the “general purpose AI” firm Physical Intelligence. A lot has happened in the space since 2021 for sure - if OpenAI reopens its robotics division, it means that they will have a lot of catching up to do in an already competitive young category.

South Korea’s politics turning into real-life K-Drama
Following the impeachment of President Yoon Suk Yeol a few weeks ago, it appears that the acting president, Han Duck-soo is now also facing the same predicament: An impeachment motion filed by South Korea’s opposition Democratic party.

The motion claimed that Han has violated his duty as acting president, with his refusal to formally appoint 3 judges to fill in the constitutional court and establish two special probe bills to investigate Yoon’s short-lived imposition of martial law and graft allegations involving his wife, Kim Keon-hee. It added that such actions are “in violation of a public official’s duty to uphold the law and serve the public.”

If the opposition passes the impeachment motion against Han in Friday’s vote, it would mark the first time democratic South Korea has impeached an acting president. In his place, the finance minister, Choi Sang-mok, would step in as acting president.

South Koreans might be in a dilemma whether to watch Squid Game 2 or this unfolding political drama.

Shorts:

1. Alibaba x E-Mart to create USD4 bil e-commerce JV in Korea

   In efforts to better compete with Korea’s fast-paced online retail sector, Alibaba Group Holding Ltd has agreed to merge its operations in the country with E-Mart Inc’s e-commerce platform. AliExpress International and Gmarket are creating a 50-50 joint venture - a new entity that could be valued at about USD4 bil (RM17.89 bil). E-Mart shares rose 5.5% in Seoul, giving the company a market value of USD 1.4 bil. Alibaba’s Hong Kong-listed stock has gained around 11% this year, valuing the firm at more than USD 200 bill.

2. China to build world's largest hydropower dam in Tibet

   China is going to build the world’s largest hydropower dam on the eastern rim of the Tibetan plateau, which would eclipse the current world's largest Three Gorges dam in Central China. It will be located in the lower reaches of the Yarlung Zangbo River, and will produce 300 bil kilowatt-hours of electricity annually, a triple amount of the capacity of Three Gorges. While the project is expected to help China reach its carbon peaking and carbon neutrality goals and create jobs in Tibet, downstream nations India and Bangladesh are concerned about it potentially altering the local ecology and the flow and course of the river. The cost is not disclosed but is expected to exceed that of the Three Gorges Dam, which cost USD34.8 bil and displaced 1.4 mil people.

3. Brazil rescues workers from slave-like conditions at BYD car factory construction site

   Inspections by the Brazilian state ministry and authority have discovered 163 workers living in slave-like conditions at the construction site of an electric car factory for Chinese giant BYD, operated by Jinjiang Construction Brazil Ltd. BYD’s Brazilian subsidiary said it has “broken with immediate effect” its contract with the company, while authorities have organised an online hearing so that both parties can rectify the violations detected. Upon completion, the car factory is said to be the biggest electric car plant outside Asia, with a production capacity of 150,000 vehicles per year.

5. FOR YOUR EYES 📺

The polite, cute and capitalist world of animals

1. The politest penguin, waiting in line to walk on a blocked path

ciera.ybarra

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2. Meet Raja the elephant from Sri Lanka, popular for collecting toll before allowing vehicles to pass. The most capitalist animal ever, we believe.

3. Children’s music video Mot Con Vit (One Little Duck) became the first music video from Vietnam to hit 1 billion views. Baby shark alternative perhaps? Btw, who do you think is Malaysia’s Youtuber with the biggest following? If you guessed Uncle Roger (9.95 mil YT subscribers), you might be wrong. Based on our observation (we could be wrong too), it’s im_siowei (12.7 mil subscribers) - little-known in Malaysia but making a splash globally in the children content space. Impressive.