☕ Madani Deposit Initiative Proposal: RM30K for First-Home Buyers

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

A new study by BlackBerry Ltd found that 79% of Malaysian software supply chains experienced cyberattacks in the past 12 months, higher than the global average of 76%. The survey, which involved 100 Malaysian companies, revealed that operating systems (30%) and IoT/connected components (19%) were identified as the most vulnerable areas. Is your company secured against cybersecurity risk?

Malaysia is on track to achieve its target of RM3.6 bil in revenue from the data centre industry by 2025, according to Deputy Communications Minister Teo Nie Ching. The country has attracted significant investments, with RM114.7 bil approved between 2021 and 2023, leading to over 2,325 high-value job opportunities. Additionally, RM76 bil in data centre-related investments were approved by the Malaysian Investment Development Authority from 2021 to March 2024, signalling strong industry growth. View: How Malaysia stacks up against peers in data centre development

Hong Kong’s real estate slump has sharply reduced government revenue from land auctions, a key source of funding for the city. At its peak, land sales brought in HKD164.8 bil, contributing nearly one-third of government revenue. However, in the latest fiscal year, revenue from land sales plummeted to HKD19.6 bil (RM11 bil), 77% below the budget estimate for 2023-24. This decline threatens Hong Kong's low-tax system, which has been integral to its status as a global business hub.

3. IN MALAYSIA 🇲🇾

Former PM Muhyiddin Yassin could be in hot soup
The Attorney-General’s Chambers now have the investigation papers of former PM Muhyiddin Yassin’s speech during the Nenggiri by-election which allegedly touched on issues related to race, religion and royalty (3R). Muhyiddin gave his statement to the case and submitted the 115 statutory declarations (SDs) signed by federal lawmakers who said they would back him to be prime minister after GE15 to the police. While Umno supreme council member Mohd Puad Zarkashi hinted that the 115 SDs could be real, but the water is under the bridge.

Since we’re on the topic of politics — UMNO president & Barisan Nasional chairperson Ahmad Zahid Hamidi is already getting excited about GE16, which shouldn’t happen for until at least two more years. Zahid said the party’s candidates will use the classic BN “dacing” symbol for the next GE.

Group of YTL companies making it rain for FY2024

1. YTL Corp Bhd reported a 2.5% drop in net profit for the fourth financial quarter ending June 30, 2024, with RM534.48 mil compared to RM548.03 mil in the same period the previous year. Earnings per share fell to 4.86 sen from 5.0 sen, and revenue decreased by 10.2% to RM8.27 bil. The declines were attributed to lower revenue in its construction, cement, building materials, and property investment divisions, partly due to reduced project activity and the absence of one-off revenues. Despite that, the group ended FY2024 on a positive footing with a net profit of RM2.14 bil — 95.5% increase YoY. Shareholders will also get a positive note as the group declared an interim dividend of 4.5 sen per share for FY2024, payable on November 29.
   View: YTL Corp Berhad 4QFY2024 results

2. YTL Power International Bhd's net profit for 4QFY2024 fell by 5.6% to RM1.07 bil, down from RM1.14 bil in the same quarter the previous year. This decline was mainly due to lower contributions from its power generation and investment holding segments. The company's revenue also decreased by 10.5% to RM6.34 bil. Earnings per share dropped to 13.16 sen from 14.02 sen. Overall, YTL Power saw a good FY2024 — with a net profit of RM3.46 bil, a 70.8% increase YoY. YTL Power also decided to reward its shareholders and declared a second interim dividend of 4 sen per share, payable on November 29, 2024.
   View: YTL Power International Berhad 4QFY2024 results

Shorts

1. The killer of AmBank founder’s death sentence upheld
   The Federal Court upheld the death penalty of a former tow truck driver, Koong Swee Kwan, convicted of murdering AmBank founder Hussain Ahmad Najadi 11 years ago. Justice Harmindar said that the court ought to think about kindness and mercy when deciding if a death sentence should be changed to a lesser punishment. He also mentioned that the death penalty should only be used in very rare cases. However, Koong’s case was an exceptional case — the murder was carried out execution-style where the deceased suffered seven gunshot wounds to the chest in broad daylight. The act was evidently premediated to ensure the deceased did not survive.

2. Nga has ambitious dreams for FY2025 — 33 proposals submitted to MoF
   Minister of Housing and Local Government Nga Kor Ming said his ministry has submitted 33 proposals worth RM1 bil to the Ministry of Finance for the 2025 Budget Initiative. One of the key ones is the Madani Deposit initiative, where a deposit of up to RM30,000 will be given to first home buyers to ease the monthly payment commitment of first-time home buyers, especially the B40 and M40 group. Another is 100 Madani Recreation Parks to be equipped sports equipment and jogging tracks in residential areas.

   Is it really necessary to slap the Madani branding to everything?

3. K-town in Forest City
   Korean investment firm GG56 Korea Ltd is set to invest USD1 bil in Forest City, Malaysia, to establish the country's first Korean Culture Town. This ambitious project will feature K-Content Production Studios, an international Cultural District, and a world-class residential area. The initiative follows a memorandum of agreement with Forest City's master developer, Country Garden Pacificview Sdn Bhd, marking a significant step in promoting cultural exchange and tourism between Korea and Malaysia.

4. AROUND THE WORLD 🌎

Bank cooperation breakdown as Gaza ceasefire remains elusive
The Palestinian Monetary Authority reported that Israeli banks are no longer accepting shekel cash deposits from the West Bank, a move that could leave Palestinians without access to vital goods and services. The deposits of accumulated shekel bank notes to Israeli banks are how Palestinian banks and merchants have been able to make financial transfers. The refusal to accept these cash deposits leaves Palestinians with no means of paying for goods and services through official banking channels (Bitcoin or stablecoin perhaps?).

This comes as US Secretary of State Antony Blinken ends his Middle East whirlwind trip with no ratified Gaza ceasefire deal. Still, Washington believes ceasefire talks will continue this week, with Blinken urging Hamas to accept the bridging proposal US President Joe Biden offered. Blinken also denied an Axios report where Israeli PM Benjamin Netanyahu convinced him to keep Israeli troops in Gaza, with Blinken saying that the US “does not accept any long-term occupation of Gaza by Israel”.

Israel, who Blinken claims to have accepted the bridging proposal, continues to mount operations even as ceasefire talks continue, with dozens more killed right after Blinken’s visit ends. The Israeli military has also issued new evacuation orders to the overcrowded area of Deir Al-Balah in central Gaza, saying the area is becoming a “dangerous combat zone”.

How the tables have turned, Russia
Ukraine launched its largest-ever drone offensive on Moscow with at least 11 drones shot down, according to officials. No injuries or damage were reported in the aftermath. This comes as part of a wider drone strike involving about 45 drones. Ukraine continues its invasion of the Russian Kursk region, the largest foreign attack on Russian territory since World War 2. This move has been a morale booster for Ukrainian forces after a failed counteroffensive last year, and Kyiv intends to exchange the captured territory for Ukrainian prisoners of war.

Beyond force of arms, Russia has responded to the Kursk incursion by shutting down any possibilities of talks between Ukraine and Russia “until Ukraine is completely defeated on the battlefield”, according to the deputy head of Russia’s Security Council, Dmitry Medvedev. Meanwhile, Sergei Chemezov, CEO of the Rostec corporation and close ally of Russian President Vladimir Putin, believes “the West, led by the US, provokes war” by supplying arms to Ukraine. He also stated that Russia feels confident and has enough weapons more than two years into the Ukrainian war. Rostec is also a primary supplier of Russian weapons for the conflict.

As an aside, Ukraine’s parliament has voted to ratify the Rome Statute, allowing the country to join the International Criminal Court, the next step in Ukraine’s journey to hopefully join the European Union. Joining the ICC would also allow Kyiv to “more effectively punish” suspected Russian war criminals. The ICC has issued arrest warrants for Putin and ex-defence minister Sergei Shoigu.

Business highlights

1. Qatar Airways buys 25% stake in South Africa's Airlink

   Doha-based Qatar Airways made the acquisition as it looks to expand its presence in Africa, increasing its capacity and marketing reach in a single stroke. The purchase, which was made at an undisclosed price, marks Qatar Airways’ latest acquisition in the region. Currently, Qatar Airways is reported to be finalising a deal to buy 49% of RwandAir and will have a 60% stake in a new airport being built near Rwanda’s capital. Qatar Airways also owns stakes in Latam Airlines and Cathay Pacific Airways, is the largest shareholder of British Airways owner IAG, and is looking to buy 20% of Virgin Australia Airlines. Thumbs in many pies there, Qatar Airways.

2. Australia approves exporting solar power to Singapore

   The go-ahead was given for a USD13.5 bil plan for solar farm operator SunCable to ship 6 gigawatts of energy from the north of Australia to Singapore via a 4,300km undersea cable, with a final investment decision expected in 2027, and the electricity supply to begin in the early 2030s. SunCable, owned by Atlassian co-founder Mike Cannon-Brookes said the approval was “a vote of confidence” for the project, but did not provide details of the firm’s financing plans. For the environmentally conscious, the plan was only approved with strict conditions, including the avoidance of the habitat of the greater bilby (aka Australia’s Easter bunny).

3. New EVs contribute USD869 mil to Xiaomi results

   The tech giant reported higher-than-expected revenue for its recent second quarter, with its new EVs contributing USD869 mil to its total revenue of USD12.5 bil — almost 7%. Xiaomi announced its entry into EVs in 2021 and started shipping its SU7 model in early April, with 27,307 vehicles delivered. This marks the EV segment’s first contribution to the firm’s financias, though the segment itself is still loss-making. Still, Xiaomi President Lu Weibing stated his confidence that the firm will reach its target of 120,000 vehicles delivered by the end of the year. The firm reported an adjusted net profit of USD865.9 mil, beating analysts’ estimates.

Shorts

1. Thai MP faces investigation for slapping reporter
   Senator Tewarit Maneechai has called for a parliamentary investigation into veteran politician and ex-army chief Prawit Wongsuwon, a member of the Palang Pracharat Party, who was recorded striking a reporter after she asked him a question. Prawit is a central figure in Thailand’s political scene and was involved in the country’s last two coups. A party spokesperson said that Prawit was only teasing the reporter, claiming to be someone she is close to. Watch the incident here.

2. Obamas endorse Kamala Harris
   Former President Barack Obama and his wife, Michelle, urged Americans to vote for Kamala Harris in the upcoming November election. America’s first Black president, a Democrat himself, also threw jabs at Republican presidential candidate Donald Trump, who had taken the top seat after Obama’s own reign. He called Trump’s leadership “bluster and bumbling and chaos”. Ouch!

3. India's commerce minister calls out e-commerce firms for predatory pricing
   Piyush Goyal said the e-commerce sector has seen rapid growth but at the cost of disrupting “millions of brick and mortar stores” due to the industry’s predatory pricing practices. He also singled out Amazon in particular and claimed the e-commerce giant was hiding its losses as “investments” to India. However, Goyal did not provide evidence. Notable is that Amazon and Walmart’s Flipkart are not allowed to sell directly to the Indian people, instead only allowed a marketplace that links to local sellers.

5. FOR YOUR EYES 📺

1. How prevalent is homelessness in the OECD countries? The chart shows that over 300 out of every 100,000 people are homeless in France, but in Finland, it's less than 20. In about half of the countries, more than 100 out of every 100,000 people are homeless. This means more than one in every thousand people.

2. Reflecting on moments that shaped his life, actor Ethan Hawke examines how courageous expression promotes healing and connection with one another — and invites you to discover your own unabashed creativity. "There is no path till you walk it," he says.