☕️ Is Malaysia in a foreign media warfare?

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

The life insurance industry in Malaysia experienced robust growth in 2023, with new business total premiums increasing by 11.6% to RM13.4 bil, up from RM12 bil in 2022. This growth was attributed to a strong performance in group policies, which saw an increase of 14.5% to RM5.1 bil, and investment-linked policies, which grew by 13.6% to RM6.2 bil. The overall new business sum assured also showed strong growth, with an increase of 9.4% to RM544.4 bil in 2023, up from RM497.7 bil in the previous year.

In terms of these life insurance claims, the total payout increased significantly by 14.9% to RM15.4 bil in 2023, compared to RM13.4 bil in 2022. This was primarily driven by a 41.4% hike in disability payments and a 26.2% rise in medical claims. The increase in claims payout was due to a high medical inflation rate in Malaysia. The higher medical claims are expected to add pressure on premium increases in the future. This information was provided by the Life Insurance Association of Malaysia (LIAM) in a statement released on Thursday.

Nigerian chess master Tunde Onakoya has set a new record for the longest chess marathon, playing for 58 consecutive hours under the bright lights of New York's iconic Times Square. His goal is to raise USD1 mil to support chess education for millions of children. Hundreds of supporters from the Nigerian community in the city showed up to cheer him on, including Nigerian Afrobeats star Davido. The previous world record recognised by Guinness World Records was set in 2018 by Norwegian duo Hallvard Haug Flatebø and Sjur Ferkingstad, lasting for 56 hours, 9 minutes, and 37 seconds. Watch it here.

3. IN MALAYSIA 🇲🇾

Is Malaysia in a foreign media warfare?

PM Anwar Ibrahim lambasted the news coming out from Singapore-based The Straits Times that stated Putrajaya will allegedly cut fuel subsidies mere weeks after the conclusion of the Kuala Kubu Baharu by-election on May 11. Although PM Anwar respected the principle of freedom of speech, news outlets need to be cautious when churning news from unverified sources.

This is not the first time unverified news from foreign outlets become a hot topic in Malaysia. Previously, US-based Bloomberg released an article stating that a plan was allegedly put in place to build a casino in Forest City in a bid to revitalise the multi-billion Ringgit development project. The attacks of unverified news towards the country by foreign news outlets are suspected to be motivated by Malaysia’s persistent stance against Israel in the ongoing Gaza-Israel war. However, Malaysia is not standing idly by in the face of these attacks. The police will be questioning the chief editor of the foreign news outlet over a report on the alleged plans to build a casino in Forest City. The investigation will be conducted under Section 4(1) of the Sedition Act, Section 500 of the Penal Code and Section 233 of the Communication and Multimedia Act 1998.

Putrajaya may need to brace itself for another ‘attack’ from abroad as the US Treasury Department’s undersecretary for terrorism and financial intelligence, Brian Nelson, will be paying Malaysia a visit to address the rising concerns of increased funding towards Iran and its proxies via the Malaysian financial system. Previously, the US Treasury Department imposed sanctions on four Malaysia-based companies it accused of being fronts supporting Iran's production of drones.

All about Penang

1. Guess former Penang Chief Minister Lim Guan Eng’s public pressure against the current Penang Chief Minister Chow Kon Yeow paid off as the latter announced the state plan to establish its own one million sq ft integrated circuit (IC) design and digital park at the Bayan Lepas Industrial Park. The project will involve an investment of RM655 mil and is set to be completed by 2027

2. Mass Rapid Transit Corporation (MRT Corp) CEO Mohd Zarif Hashim reassured that the minor amendment to the original plan for Penang’s first light rail transit (LRT) project will not negatively impact the project’s construction timeline, as there was no need for the resubmission of the environmental impact assessment (EIA). In the latest report released by MRT Corp, the alignment will begin from Penang Sentral on Penang mainland to the proposed first station on Penang island – Macallum. Nonetheless, MRT Corp will still engage with all relevant agencies to finalise the alignment following the minor amendments.

3. After several previous fiascos between Penang and its neighbouring state Kedah, over the supply of water from the latter to the former, now Perak is Penang’s new hero as the Perak Government has agreed to supply water to Penang through the yet-to-be-built Kerian Integrated Green Industrial Park. Although it was not stated that the water would be supplied in its raw form or treated, Penang needed it nonetheless. This is because Sungai Muda in Kedah, where 80% of Penang’s water come from, is expected to dry up by 2030.

4. While we mentioned Kedah, its Menteri Besar, Muhammad Sanusi Md Nor, in a blockbuster and breaking news, apologised to PM Anwar Ibrahim for making inappropriate remarks that could jeopardise the hablumminnas (relationship with other people) during the state-level Madani Aidilfitri celebration on Saturday night. Sanusi hopes that moving forward, Putrajaya will always give attention to and not sideline Kedah. Sanusi perhaps felt a little envious of his peer on the East Coast, as Kelantan recently received federal government approval to turn Sultan Ismail Petra Airport into an international airport when his Kulim Airport plan was previously pushed aside by Putrajaya.

Malaysia is not playing around against non-palm oil bias
Plantation Industries and Commodities Minister Johari Abdul Ghani said that stern action will be taken against retailers, distributors and importers who are dealing products with labels that discriminate against palm oil products. So how stern? Industry players that have biases against palm oil in their products can be fined up to RM250,000 under the Trade Descriptions (Prohibition of Use of Statement, Expression or Indication) (Oil Palm Product and Palm Oil Goods) Regulations 2022.

Previously, a convenience store in Putrajaya was raided by the authority for the suspected sale of food products with the words ‘No Palm Oil’ on the packaging. The inventory of the product worth RM897.60 was confiscated. Johari added that stores can still sell the same product as long as they remove or cover the ‘No Palm Oil’ wording.

Shorts

1. Two survived a light aircraft crash in Sungkai
   The police have identified the two survivors of the crashed Cessna 172 light training aircraft at Sungkai, Perak as 26-year-old flight instructor Captain Shahrul Imran Surea and 20-year-old trainee Ho Jia Lee. Both survivors suffered non-critical injuries.

2. Michele Yeoh presented the Presidential Medal of Freedom
   Michelle Yeoh became the first Malaysian to receive the Presidential Medal of Freedom, the highest civilian award in the United States, from US President Joe Biden. The award aims to recognise individuals who provide meritorious contributions to the security or national interests of the United States, world peace, cultural or other significant public or private endeavours. As for Michelle Yeoh, she was the first Asian to win an Oscar for Best Actress in the movie Everything Everywhere All At Once.

4. AROUND THE WORLD 🌎

Gaza: Trade, ‘sent’ back to the 1980s

• Turkey cuts off all import, export with Israel
  Turkey has decided to stop all of its export and import activities with Israel, with the Turkish Ministry of Trade citing that it is due to the worsening humanitarian crisis in Gaza. For context, the trade volume between the two countries amounts to USD 6.8 bil in 2023.

  The trade restriction was also imposed over what Turkey said was  Israel’s refusal to allow Ankara to take part in airdrops of aid for Gaza and for Israel’s war on the enclave. The ministry also said that it will strictly and decisively implement these new measures until the Israeli Government allows an uninterrupted and sufficient flow of humanitarian aid to Gaza.

• Gaza ‘sent’ back to the 80s
  “We are almost back in the 80s” — according to officials at the UN Development Programme (UNDP), the level of destruction in Gaza has not been since World War II, and all investments in human development for the last 40 years in Gaza have been wiped out. Essentially, as the world progresses, Gaza is sent back to the 80s due to the war. Human development index has regressed by 40 years (factors include years of gains in schooling, education attainment, health and life expectancy at birth).

  The UNDP has recently estimated that the overall cost of post-war reconstruction in Gaza would be at least between USD 40 to 50 bil. More than 70% of all housing has been destroyed, and there are about 37 mil tonnes of debris that need to be removed. For comparison, during the 2014 Israel-Hamas war, about 2.4 mil tonnes of debris were removed.

Apple’s Q2 Performance and The Big Share Buyback

Apple released its Q2 performance last Friday. Here’s what we know:

• Revenue across the company declined 4% to USD90.8 bil, the biggest slump in more than a year. Pre-tax profit was flat at USD28 bil.

• Demand for Apple’s smartphones has dropped by more than 10% in the first three months of this year, while its overall sales fell in almost every country across the globe (except for Europe). Apple sells a lot of iPhones — USD45.96 bil in Q2 alone (50.7% of total revenue).

• Overall sales in the critical greater China market dropped by 8% to USD16.37 bil.

View its Q2 financial statements here.

The Big Share Buyback
Apple is quick in its effort to regain its footing by announcing the biggest stock buyback in stock market history, amounting to USD 110 bil or about 4% of its market cap of USD2.83 tril. This beat its earlier record last year of USD90 bil. The announcement immediately sent their stock back up to 7% in extended trade. Apple also raised its dividend 4% to USD0.25 per share.

Just how big is this USD110 bil? For a start, it’s a whole lot more than its Q2 revenue. That pile of cash could also buy Boeing or Airbnb.

Apple also has Google to thank for its massive revenue. In separate Apple-related news, Google parent Alphabet Inc. paid Apple Inc. USD20 bil for Google to remain the default search engine in the Safari browser, as revealed in newly unsealed court documents in the Justice Department's antitrust lawsuit against Google

Science: To the dark side of the moon, self-medicating Dr. Orangutan

• China launches space probe to study the dark side of the moon
  China has recently launched an unprecedented 53-day mission on Chang’e-6 probe, in its world-first attempt to study the mysterious “darker side” of the moon that never faces Earth. Its mission is to retrieve lunar rocks and soil from the far side of the moon. The sample's geological age would be approximately four billion years.

  Scientists and officials from France, Italy, Pakistan and the European Space Agency (ESA) attended the launch, with all of them having moon-studying payloads on Chang’e-6, except the US as the tension with China is extended even into space. China is barred by US law from any collaboration with US space agency NASA without congressional approval.
  In the world of Transformers, we know what is hiding on the dark side of the moon - Decepticons.

• Wounded orangutan seen using plant as medicine
  A research team in the Gunung Leuser National Park, Indonesia, captured for the first time in history a creature in the wild treating an injury with a medicinal plant. They spotted a wounded orangutan named Rakus displaying human-like self-medicating behaviour. It was seen treating his large cheek wound by repeatedly applying Akar Kuning (an anti-inflammatory and anti-bacterial plant used to treat malaria and diabetes) to help the wound heal. The researchers saw no sign of infection; the wound closed within five days and fully healed after a month. Watch Dr Rakus in action here.

Shorts

1. Reader's Digest closes after 86 years
   It’s game over for the much-loved Reader’s Digest, as announced by its editor-in-chief Eva Mackevic on her LinkedIn page recently. The company has succumbed to the financial pressures of today's unforgiving magazine publishing landscape and can no longer continue to operate. By its 40th anniversary, the magazine had 40 international editions with total circulation of 23 mil, printed in 13 languages and even Braille.

2. Myanmar stops men from working abroad as the war intensifies
   Myanmar’s military government announced on Thursday that they will no longer allow conscription-age men to travel out of the country for work. All applications for work permits are also suspended. Back in February, Myanmar’s junta had imposed a national conscription order following months of losses in its ongoing civil war. Since then, nearly 100,000 men have applied for work permits within the span of three months in an effort to flee the country and escape the national conscription. The war has so far killed thousands and displaced at least 2.6 mil people, according to the UN.

5. FOR YOUR EYES 📺

1. The ballpoint pen - an interesting history. The iconic Bic Cristal pen that popularised the ballpoint pen has sold more than 100 bill units since it was launched in 1950. Société Bic S.A., the French company that manufactures the pen generates about EUR2 bil revenue annually. Watch the below to learn why it’s called ballpoint pen and the interesting engineering behind it (even the hexagonal shape of the pen’s casing is designed to prevent it from rolling over).

2. Exclusive interview: CNBC’s Managing Asia interviews Lee Yeow Chor, the managing director and CEO of IOI Corporation Bhd, one of Malaysia’s largest conglomerates. Together with his brother, they inherited this property and the palm oil empire built by their late father Lee Shin Cheng. The brothers are worth a combined USD5.35 bil (RM25.5 bil) according to Forbes.