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- ☕️ Malaysia plans to build its future with BRICS
☕️ Malaysia plans to build its future with BRICS
MITI to grant applications for open approved permits from Bumi firms. MACC: RM25 bil was saved from corruption. Thailand becomes first ASEAN country to legealise same-sex marriage.
We interrupt your morning coffee break with another Nvidia news - the AI poster child has now become the world’s most valuable company after overtaking Microsoft. Its market cap now stands at USD3.3 tril.
1. MARKET SUMMARY 📈
![](https://media.beehiiv.com/cdn-cgi/image/fit=scale-down,format=auto,onerror=redirect,quality=80/uploads/asset/file/c714c050-3eaf-4a9f-880d-b62b36d0c091/Screenshot_2024-06-19_at_7.43.14_AM.png?t=1718754201)
Information as of 0725 UTC+8 on June 19, 2024.
2. NUMBERS AT A GLANCE 🔢
The Malaysian Anti-Corruption Commission (MACC) chief commissioner Azam Baki said that RM25 bil was saved from corruption, from RM87 bil worth of projects, through repatriation of stolen assets and seizing property from those guilty of corruption. It’s not clear whether this includes 1MDB’s assets since Azam said that 70% or about RM29 bil had been repatriated (maths didn’t add up). Azam also added that poverty and low wages are not the top reasons for someone to engage in corruption. Azam emphasised that corruption happens because of greed, opportunity, and issues with governance. Azam stated that there is no use to keep increasing salaries in the hope that it will reduce corruption.
The ranks of “double-haters” — voters disliking both major party presidential candidates — are at a historic high, comprising 25% of the electorate, according to Pew Research Center. This is nearly double the number from 2020. In battleground states, Biden and Trump are nearly evenly split among these disillusioned voters, with Biden at 25% and Trump at 22%, per a May Bloomberg News/Morning Consult poll. The biggest threat to both candidates is voter apathy or a shift to an independent candidate like Robert F. Kennedy Jr., who is polling at 24% among these voters. This surge in discontent is driven by growing political polarisation.
It’s one thing to be a giant company. It’s another thing to own a chunk of a giant company. Warren Buffett’s stake (5.1%) in Apple is worth USD169 bil (as of last Thursday), surpassing the market value of more than 450 of the S&P 500 companies. This increase follows a surge in Apple's stock over the past six weeks. Berkshire Hathaway, Buffett's conglomerate, held approximately 790 mil Apple shares valued at USD135 bil as of the end of March 2024, according to company filings. With Apple's stock soaring 25% since then, closing at a record USD214 last Thursday, the company's total valuation reached USD3.29 trillion, just ahead of Microsoft.
3. IN MALAYSIA 🇲🇾
BRICS membership in the works for Malaysia
PM Anwar Ibrahim announced that Malaysia will soon start formal procedures to join the intergovernmental organisation BRICS (Brazil, Russia, India, China, and South Africa). Initially comprising only the 5 aforementioned countries, BRICS has expanded to include Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE as new members from Jan 1. Anwar emphasised that the potential membership in the geopolitical bloc would be strategically imperative given the Straits of Malacca’s position as a significant route connecting the Pacific and Indian Oceans. BRICS provides a check and balance against Western dominance, as Anwar states that the world is no longer unipolar (only focused on the West) in political discourse. Although there is no formal application process, new ‘applicants’ need to be green-lighted by all members to join the bloc. Malaysia is waiting for the final decision and feedback from the South African government. A crash course on BRICS below.
BRICS merujuk kepada kumpulan kerjasama ekonomi yang diterajui oleh Brazil, Rusia, India, China dan South Africa.
Matlamat BRICS adalah untuk mengurangkan dominasi/hegemoni US dan blok barat (G7) dalam ekonomi dunia.
Nak tahu baik ke tak baik, kena faham beberapa konsep dulu.
— Ayman Rashdan Wong (@AymanRashdanW)
2:00 AM • Jun 18, 2024
Chinese Premier Li Qiang’s visit to strengthen Malaysia-China diplomatic ties
Malaysia’s BRICs announcement is timely as China’s Premier Li Qiang arrived on June 18 for his first official visit to Malaysia since taking office in March last year. His visit coincides with the 50th anniversary of Malaysia-China diplomatic relations. Malaysia’s Ministry of Housing and Local Government and China’s Ministry of Housing and Urban-Rural Development will sign an MoU on housing, urban planning, and smart cities during the visit. Minister Nga Kor Ming explained that the agreement will cover cooperation in smart housing, urban development, urban mobility, livability, sustainability and smart city profiling. The aim is to share expertise and best practices to boost investment, stimulate economic growth, create jobs, and strengthen our bilateral relations.
Meanwhile, MITI Minister Tengku Zafrul announced that the Five-Year Programme for Economic and Trade Cooperation between China and Malaysia is also set to be signed during the visit. The program will enhance cooperation in high-level manufacturing, digital economy, robotics, innovation, start-ups, and agriculture R&D. Two MoUs are expected to be signed to strengthen investment cooperation in the digital economy and another on green development.
Trade and investment relations between both countries comprised 17.7% of Malaysia’s global trade, totalling RM450.84 bil in 2023. China has been Malaysia’s largest trading partner for 15 years. More than 82,000 jobs have been created for Malaysians from 496 manufacturing projects with participation from China.
MITI to grant applications for open approved permits from Bumi firms
Starting July 1, the Ministry of Investment, Trade and Industry (MITI) will grant open approved permits (AP) to Bumiputera firms, including those completely new to the automotive sector. An AP is an import permit facility granted by MITI to import reconditioned vehicles for sale in the domestic market. The initiative aims to provide more opportunities for Bumi entrepreneurs – to attract more firms to engage in the automotive industry and make the industry more competitive.
A move to empower the Bumiputera socio-economic agenda, as championed by the ministry. The companies must meet specific criteria, including being 100% Bumiputera-owned, in operation for at least two years, and having a minimum paid-up capital of RM1 mil. Minister Tengku Zafrul supports the AP system for its role in monitoring and supporting the national automotive industry, including data collection and policy enhancement.
No doubt it’s a lucrative market. But those familiar with this controversial AP industry, in particular, would know that capital and assistance could have been better allocated to aid Bumiputra entrepreneurs in other emerging industries with higher spillover effects.
JS-SEZ could counter brain drain problem to Singapore
Johor Indian Business Association (JIBA) president, P Sivakumar, suggests focusing on advanced manufacturing industries like robotics and AI within the Johor-Singapore Special Economic Zone (JS-SEZ) to counter the brain drain to Singapore. High-tech industries could raise local wages and retain talent in the country. Currently, around 300,000 Malaysians travel daily to work in Singapore for the sole benefit of better pay.
The workforce needed in these industries is not menial, and it should allow us to retain more professionals instead of supplying labour to SG. The JS-SEZ proposal includes 16 economic sectors across five local councils (JB, Iskandar Puteri, Pasir Gudang, Kulai, and Kota Tinggi). Sivakumar believes that Johor’s land and workforce can complement SG’s logistics and tech sectors. Thus, the zone should attract regional and international investors, leveraging SG role in the region as a financial and transport hub. The Small and Medium Enterprises Association (Samenta) supports the idea, suggesting that MNCs in the zone would benefit Malaysia’s workforce and manufacturing industry, advocating for favourable tax rates to attract foreign businesses.
In case you didn’t know: 1.13 mil (60.8%) out of 1.86 mil of Malaysians who migrated overseas chose to reside in Singapore as of 2022.
4. AROUND THE WORLD 🌎
Update on conflicts
The US wants to avert further conflicts in the Middle East
US envoy Amos Hochstein said the US is urgently seeking to calm a conflict that has been threatening to escalate. Iran-linked armed group Hezbollah and Israel have regularly traded fire across the Israel-Lebanon border since the Israel-Palestine conflict started in October 2023. Hochstein’s mission to convince the pair to progress towards peace looks ambitious because Hezbollah has said it will not halt its attacks into northern Israel unless there is a ceasefire in the Gaza Strip. Instead of playing the peacemaker role, maybe stop the financing role.3,500 children at risk of dying in Gaza
The World Health Organization (WHO) reported over 470 attacks on healthcare facilities in Gaza, which claimed 727 lives and injured 933. Gaza’s Government Media Office warned that the lack of aid, including food, nutritional supplements and vaccines, is putting the lives of 3,500 children at risk of dying from malnourishment. The United Nations (UN) Environment Programme’s preliminary assessment showed that the explosive weapons have generated 39 mil tonnes of debris. The conflict has created unprecedented soil, water and air pollution in the region.Russia is stirring the pot
It has been 24 years since Russian President Vladimir Putin visited Pyongyang — the last time he visited North Korea was in July 2000, four months after he was first elected president. This time it feels much different with rising tensions in the Middle East and the prolonged Russia-Ukraine conflict. At the invitation of North Korean leader Kim Jong Un, Putin’s two-day visit (June 18 and 19) is worrying the West — stemming concerns that Pyongyang is providing the munitions for the war in Ukraine in exchange for economic assistance and technology transfers to fuel its military modernisation programme. The concerns aren’t without basis. After Kim visited Russia’s east in September 2023, North Korea announced it had successfully put a spy satellite into orbit after two previous efforts ended in failure. Remnants of North Korean missiles have also been found in Ukraine. Any weapons trade with North Korea would violate multiple United Nations Security Council resolutions regarding its nuclear weapons program. Russia, a permanent member of the council, previously supported these resolutions.
The two big brothers — one struggling with property market, another with retail sales
China’s property market dragging its heels
China's latest property support measures have boosted transactions in its biggest cities, but smaller localities are still struggling. On May 17, China cut minimum mortgage rates and downpayments and directed municipalities to buy unsold apartments for social housing. This led to dozens of cities easing policies under the new guidelines. However, concerns remain due to poor home price data — prices were down 0.7% in May from the previous month, the steepest drop since October 2014. In annual terms, new home prices were down 3.9% from a year earlier, compared with a 3.1% slide in April. The data suggests the downturn may persist.
US retail sales growth in May below expectations
The US retail sales rose by 0.1% in May, falling short of the expected 0.3% increase, largely due to lower gasoline prices impacting service station receipts. This follows a revised 0.2% drop in April, previously reported as unchanged. While an early Easter has distorted recent sales figures, the overall trend shows slowing sales growth as higher prices and interest rates lead households to focus on essentials and reduce discretionary spending.
Shorts
The UK’s richest family on trial in Switzerland
Sometimes, the richest are sometimes the stingiest. The Hinduja family, worth an estimated GBP37 bil (USD47 bil), has been accused of exploitation and human trafficking in relation to their practice of importing servants from India to look after their children and household. Four members of the family are on trial in Switzerland for allegedly mistreating their servants in a villa in Geneva’s wealthy neighbourhood of Cologny. Their servants were paid as little as GBP7 for 18-hour days and had little freedom to leave the house.Apple says goodbye to its Pay Later loan scheme
Apple is ending its in-house “Buy Now, Pay Later” (BNPL) scheme in the US, which was launched just last year. Instead, the company will now offer payment plans through third-party credit and debit card lenders. Existing borrowers can still manage their payments using Apple's Wallet app. This move signifies a retreat from Apple's plans to offer traditional financial services. Previously, Apple Pay Later allowed US users to split purchases up to USD1,000 into four instalments over six weeks without interest or fees.Rare twin elephants born in Thailand
Elephants in Thailand are considered sacred, and when a twin elephants were born, it was described as a miracle. Caretakers were attending to the first male calf after the 36-year-old mother gave birth to it and only realised there was a female calf when they heard a loud thud. Twins occur only in 1% of elephant births and male-female are even more rare. Asian elephant is considered an endangered species due to poaching, illegal trade and habitat loss. TIL - there’s a difference between Asian and African elephants. The former have smaller ear rounds and hunched backs, whilst the latter has larger ears somewhat shaped like the African continent. View the comparison here.Thailand legalises same-sex marriage
Thailand's senate has voted to approve a marriage equality bill, clearing the final legislative hurdle for the country to become the first in Southeast Asia to recognize same-sex couples and third in Asia after Nepal and Taiwan. The bill, supported by an overwhelming majority of politicians in the upper house, grants full legal, financial, and medical rights to marriage partners of any gender. It now awaits the endorsement of King Maha Vajiralongkorn to become law. The legislation will come into force 120 days after it is published in the royal gazette, meaning the first same-sex weddings could take place in Thailand later this year.
5. FOR YOUR EYES 📺
Streaming platforms feeling the heat from rising prices as data reported over 50.4 mil cancellations of streaming services in the first three months of the year in the US.
A record number of Americans are now canceling their streaming subscriptions sherwood.news/culture/stream…
— chartr 📊 (@chartrdaily)
4:27 PM • Jun 17, 2024
The ‘one by one gentleman’ uncle who brought Malaysia to a halt for the last couple of weeks spoke to BFM about his story.
“Jangan jadikan ini isu perkauman.” - Tauke Kim Leong Mini Market mengenai insiden one by one gentleman.
💰🏃🏽 Bu$y Finding Modal - Episode 13
— BFM89.9 (@BFMradio)
10:32 AM • Jun 18, 2024
Fans of ‘Modern Family’, the cast is reunited - but for a Whatsapp commercial.
‘Modern Family’ cast reunites for a WhatsApp commercial.
— Pop Base (@PopBase)
10:43 AM • Jun 18, 2024