☕️ HRD Corp threatens The Edge with legal action

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

Deputy Prime Minister Ahmad Zahid Hamidi announced that 20,000 CCTV cameras will need to be installed in Kuala Lumpur for surveillance and safety purposes from now until the 13th Malaysia Plan (2026-2030). This initiative is based on police findings indicating a 6.83% increase in road accident rates. Currently, there are 5,000 cameras already installed in the city. Ahmad Zahid, also the rural and regional development minister, emphasised the need for enhanced monitoring to improve safety and reduce accidents. DBKL will be watching you.

In the second quarter, BlackRock hit a record USD10.65 tril in assets under management, boosted by rising client asset values and significant investments in the company's ETFs. The benchmark S&P 500 index increased by about 4% during the reported quarter, contributing to this growth. This figure was up from USD9.43 trillion a year earlier and USD10.5 trillion in the previous quarter. Additionally, BlackRock's total revenue increased by 8%, reaching USD4.81 bil. View earnings here.

In Africa, 600 mil people (43% of the population) lack reliable electricity for basic needs. Even those with grid access face frequent outages, with over three-quarters of African firms experiencing power disruptions. Two-fifths of these firms cite electricity as their main business constraint. Reliable power could significantly boost economic growth: had sub-Saharan African countries had South Africa's reliable power from 1995 to 2007, the region's GDP growth per person could have been two percentage points higher, more than doubling the actual rate, according to one academic paper. Be grateful to TNB.

3. IN MALAYSIA 🇲🇾

Some PAC drama

1. HRD Corp threatens The Edge with legal action

   The Human Resource Development Corp (HRD Corp) is threatening to sue The Edge and one of its writers for alleged defamation on the findings of the Public Accounts Committee (PAC) and the Auditor General (AG). The Edge published two issues related to HRD Corp and the PAC report earlier this month. The first one claimed that the PAC found shady property deals that included the purchase of a building for RM154 mil without board approval, and the second on HRD Corp’s questionable investments. The Edge essentially suggested that HRD Corp was mismanaging its funds and disregarded proper procedures based on their findings from the PAC and AG. As HRD Corp did not take this lightly, they fired back with a legal letter with claims of defamation and damaged reputation. The Edge is asked to issue an apology, take down the articles, and pay for the damages. The Edge maintains their stance and will defend any suits that come their way.

2. PAC gears up for investigations after AG Report
   The PAC is gearing up for new investigations this month following the issues highlighted in the 2024 Auditor General’s Report. Investigations will delve into several ministries– namely for water resource management, rural water supply projects, the paddy and rice industry and armed forces’ operations. PAC will also look into Mara Incorporated’s operations. PAC presented a report about follow-up actions with the Education Ministry and the Public Works Department (JKR), specifically on how they’ve responded to recommendations to fix up dilapidated schools. Although some measures were taken, more effort is needed. But isn’t that how it goes for almost everything in our country?

Future plans for Malaysia’s waters

1. No to water extraction, yes to water reclamation

   The National Water Services Commission (SPAN) says that Malaysia needs to reduce its reliance on natural water resources and start investing in new but existing water sources like water reclamation. As of now, we get water from surface water, dams, and some underground sources. However, big changes are needed as we face climate change and its challenges to our water resources. We could look at alternative sources – reclaimed water, rainwater harvesting, reducing non-revenue water (which is treated water that is never consumed), and a zero-discharge policy. This is in tandem with the boom in data centres over the past three years, which utilises large volumes of water to cool equipment. Water reclamation (reusing water) is already practised in Singapore and the US, where data centres in Silicon Valley use reclaimed water for cooling purposes. Since we get heavy rains, rainwater harvesting is a great alternative, too.

   Read: Wastewater becomes a resource in Silicon Valley

2. Our agreements with Singapore are to be reviewed

   The government will review all its agreements with Singapore on selling water from Johor at an unreasonably low price. The deal has existed since 1962, where we sell raw water to Singapore for just 3 sen per 1,000 gallons. Tun M pointed out that the 61-year deal is equivalent to giving Singapore a huge subsidy on water, and I cannot agree more. Under the 1962 Johor-Singapore Water Agreement, Singapore buys raw water from us at a bargain price, and Malaysia may repurchase treated water from them at 50 sen per 1,000 gallons. The deal is set to last until 2061. The govt agrees that a review needs to be done to renegotiate and avoid future financial losses. We really need to pay more attention to our resources. And also the people who are negotiating the deals.

Court allows stateless persons to marry legally
The absence of a MyKad should not deter stateless persons from getting legally married, and the High Court has precisely delivered. Previously, those without their IC could not officially register their marriage, but a case in Perak has convinced the High Court to make this momentous change. Three generations were stuck stateless as the women could not register their marriages to Malaysians, leaving their children without citizenship. The court’s ruling to allow the marriages to be registered means that their children can avoid becoming stateless and illegitimate. Thus, giving them opportunities that their stateless parent was denied. But the struggle is far from over; the government has appealed the High Court’s decision and so, the family’s fight to be recognised as Malaysians continues.

Rumour has it: Maxis wants U-Mobile
Maxis Bhd, controlled by billionaire T Ananda Krishnan, is allegedly thinking of buying out U Mobile to help with Maxis’s expansion. However, the discussions are still in the early stages and decisions are yet to be made. U Mobile is partly owned by Vincent Tan and Singapore Technologies Telemedia, backed by Temasek Holdings from Singapore. Sources say they’re asking for over RM10 bil for U Mobile, but Tan said that U Mobile is not interested and instead plans on going public with an initial public offering (IPO) at the end of July. U Mobile is our youngest telco player and has over 4,000 4G sites and a network ready for 5G, along with services in fintech and digital payments. It recently signed an agreement to acquire a stake in Digital Nasional Bhd, a state-owned company building 5G infrastructure in Malaysia. Maxis taking a page out of CelcomDigi’s playbook?

4. AROUND THE WORLD 🌎

American Affairs

1. While Joe Biden’s camp is struggling to cover the US president’s bad choice of words, the Donald Trump camp is pushing ahead with full steam. Trump has named Republican and Ohio Senator JD Vance, 39, as his vice-presidential nominee. Mr. Vance, a Yale-educated venture capitalist and author of the bestselling memoir-turned-film “Hillbilly Elegy,” won a U.S. Senate seat in the 2022 midterm elections with Donald Trump's endorsement. The election marked Vance's first time being elected to public office. Despite previously criticising Trump and suggesting he could be “America's Hitler,” Mr. Vance has become a strong supporter.

   Former President Trump has strategically chosen his running mate to focus on winning key industrial Midwest battleground states such as Pennsylvania, Michigan, and Wisconsin. In the Senate, Mr. Vance has shown scepticism toward aid to Ukraine and introduced legislation targeting universities where students protested the Gaza war or employed undocumented immigrants. His alignment with Trump and his policies is evident, despite previous criticisms.

   Read: Who is JD Vance?

2. Notwithstanding, Trump is also being backed by one of the richest people on earth, Elon Musk. Musk formally endorsed his support for Trump as the next US president after the shooting incident. According to the Wall Street Journal, Musk plans to donate approximately USD45 mil each month to a new super political-action committee (Super PAC) — named America PAC — that supports Trump’s election bid, beginning next month. Though individual campaign donations in the US are capped at USD3,300 per person, political mega-donors can circumvent this limit by contributing to political action committees (PACs). These PACs support candidates and allow for much larger donations, effectively bypassing the restrictions on individual contributions.

3. Joe Biden is trying, too. The US President announced aproposal to cap annual rent increases at 5% for the next two years. The proposal applies to corporate landlords, defined as those who own more than 50 units and they have two options — either obey or risk losing valuable tax credits. However, this is merely a campaign promise. To enact this, the proposal first needs to pass both chambers of Congress, which doesn’t seem likely before the November presidential election. It’s a good election candy though — a recent report noted rents have increased by 26% since early 2020. Americans face a severe housing affordability crisis, with renters particularly hard hit.

Thailand wants more tourists
Thailand has expanded its visa-free entry scheme to 93 countries and territories to boost its tourism industry. Under this new scheme, visitors can stay for up to 60 days. Previously, only passport holders from 57 countries enjoyed visa-free entry. Despite recording 17.5 mil foreign tourist arrivals in the first half of 2024— a 35% increase from the same period last year — the figures remain below pre-pandemic levels. Tourism revenue during this period was THB858 bil (USD23.6 bil), less than a quarter of the government’s target.

However, tourists may be wary of recent incidents in its capital city, Bangkok. Last October, a shooting happened at the Siam Paragon, one of the city’s most famous shopping centres. The incident claimed two lives and injured five others. Just last night, the Associated Press reported that six were found dead at a luxury hotel in Bangkok — two Vietnamese Americans and four Vietnamese nationals. They were believed to have succumbed to poisoning.

Shorts

1. Goldman Sachs aims to raise USD2 bil in its first Asia-focused private equity fund

   Sources revealed that the bank is aiming to deepen its exposure to the region as it is home to the world’s fastest-growing economies. The fund has been marketed to sovereign wealth funds, pension funds, and private investors, with a goal of a first close by the fourth quarter. The fund will also primarily focus on investment opportunities in Japan with half of its capital allocated there. Other key markets include India, South Korea, and Australia.

2. Southgate resigns
   After not bringing it home, England manager Gareth Southgate decided to hang his boots. Southgate managed 102 games for his country in eight years in charge, winning 61 games, drawing 24 and losing 17. Southgate is the only manager, apart from the 1966 World Cup winner Sir Alf Ramsey, to lead the England men's team into a major tournament final. Newcastle manager Eddie Howe, former Brighton and Chelsea boss Graham Potter, and ex-Chelsea and Tottenham manager Mauricio Pochettino are among the early favourites.

3. Four Pakistanis killed in Oman
   In a rare act of violence in Oman, at least four people were killed and 30 wounded after a shooting at a mosque in Wadi al-Kabir, a district east of the capital city Muscat. It occurred during the Muslim day of Ashura when Shia Muslims commemorate the seventh-century battlefield martyrdom of Imam Hussein, the grandson of Prophet Muhammad. No motive or potential suspects were identified in the attack. A state of emergency was declared in the area.

4. Singapore authorities are still on the hunt for Jho Low
   Although Low and his family made a deal with the US Justice Department in June to settle some civil cases, Singapore says it doesn’t affect their criminal investigation. The Interpol Red Notice to find and arrest Low is still active, and Singapore has a warrant out for his arrest since charging him in absentia in 2016. Singapore has managed to secure court orders to send RM358.32 mil of seized 1MDB money back to us, but there’s still SGD164 mil worth of 1MDB-related assets in Singapore frozen.

5. FOR YOUR EYES 📺

1. Flying soon? You may want to check which are some of the most turbulent routes in the world. Turbulence is measured in eddy dissipation rate (edr). The turbulence levels are light (0-20), moderate (20-40), severe (40-80) and extreme (80-100).

2. When someone says they’re “OTW” next time and they’re late, show them this.