☕️ Malaysia's gig economy gets a boost: Grab subsidises SOCSO for drivers

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

Millions of migrants globally send remittances, which are financial or in-kind transfers, to support their families or communities in their home countries. Remittances have seen a significant increase, rising from USD128 bil in 2000 to USD831 bil in 2022, according to the World Bank. Notably, remittances to low- and middle-income countries reached USD656 bil in 2023, surpassing foreign direct investment and development aid. This highlights the crucial role remittances play in global financial support for developing regions. In 2023, the US was still the top country for money sent home by workers, according to the World Bank. The bank said the US’s strong labour market and attracted many migrants, leading to more money being sent back to their home countries.

The use of dating apps has seen a significant increase, with around 350 mil people worldwide having a dating app on their phone, up from 250 mil in 2018. In the U.S., 30% of adults have used online dating, with more than half of those aged 18 to 29. However, the appeal of online dating is waning, with app downloads dropping from 287 mil in 2020 to 237 mil in 2022, and monthly active users decreasing from 154 mil in 2021 to 137 mil in mid-2023.

Sri Lanka's upcoming presidential election on September 21 has drawn a record 39 candidates, reflecting the intense political climate amid the country's severe economic crisis. The incumbent, Ranil Wickremesinghe, is up against key challengers, including Sajith Premadasa, the opposition leader, and Anura Kumara Dissanayaka, a leftist leader with strong youth support. The high number of candidates underscores the uncertainty and public dissatisfaction in Sri Lanka as it faces economic hardships.

3. IN MALAYSIA 🇲🇾

Four Malaysian companies make the 2024 Forbes to Watch list
Four Malaysian companies have made a significant impact in the startup ecosystem, earning a spot on the Forbes Asia 100 to Watch 2024 list. These companies have successfully attracted investor interest, collectively raising an impressive USD47.7 mil (RM207.6 mil). Here’s a brief overview of the companies and what makes them stand out:

1. Applecrumby

   Founded in 2015 by Sean and Jesmine Tan, Applecrumby specialises in eco-friendly baby products, including chlorine-free diapers and wipes. The products are effectively marketed through TikTok Shop and Shopee, securing a USD4.2 mil investment in March 2024 from venture capital firm 500 Global, highlighting its growth potential in the e-commerce sector.

2. iMotorbike

   iMotorbike, another e-commerce and retail company making the list, is an online platform established in 2016 for buying and selling motorcycles in Malaysia and Vietnam. The company raised USD2.6 mil (RM11.3 mil) in a Series A funding round led by Gobi Partners in June 2023. iMotorbike’s partners with notable investors like Malaysia’s Penjana Kapital and America’s Seedstars, among others.

3. Paywatch

   In financial services, we have Paywatch. Founded in 2020 by brothers Richard and Alex Kim, the app allows employees to access their earnings in real time based on hours worked. For employers, Paywatch acts as an HR tool to track hours worked and tasks delegated to employees. The company raised USD30 mil (RM130.3 mil) in a funding round led by Third Prime, a venture firm based in New York’s financial district.

4. LiveIn

   Started in 2015 by CEO Keek Wen Khai, LiveIn helps young professionals find affordable housing in Southeast Asia. The company raised USD8.3 mil (RM36.1 mil) in a Pre-Series B funding round in December 2023, with an additional USD2.6 mil investment from Korea Investment Partners — think Airbnb, but for challenging house affordability issues through subletting.

Malaysia Boleh! (In a proud manner)

Malaysia's gig economy gets a boost: Grab subsidises SOCSO for drivers
Rejoice Grab drivers partners! Grab Malaysia has taken a significant step to enhance the welfare of its driver-partners by covering the remaining 10% of their Social Security Organisation (SOCSO) contributions. This initiative benefits all 180,000 drivers across the nation, with Grab contributing approximately RM4.2 mil to ensure they receive free social security coverage for the current year. The government initially sponsored 90% of these contributions, highlighting a collaborative effort to protect gig workers.

Human Resources Minister Steven Sim emphasised the urgent need to modernize social security protections for gig workers, as current laws are outdated in the face of evolving technological economies. In March 2024, PM Anwar Ibrahim tasked Steven Sim’s ministry with drafting a new Gig Workers Law, which is expected to be tabled end-2024. Aimed at providing better protections for workers, the proposed law will focus on four key areas: defining gig workers, establishing minimum compensation for phailing and ehailing workers, creating a grievance mechanism, and ensuring social security protections, particularly regarding social insurance and pensions.

Tech giants against government plan for social media licensing
The Asia Internet Coalition, an alliance that includes major tech companies like Google, Meta, and X, has urged the Malaysian government to pause its plan to require social media platforms with over eight million users to obtain a license. This proposal, announced by MCMC, aims to combat cybercrime but has raised concerns about its clarity and potential impact on innovation, as there has been an absence of formal public consultations. This has led to uncertainty about the obligations that social media platforms would face under these mysterious new regulations.

In an open letter to Prime Minister Anwar Ibrahim, the AIC Managing Director Jeff Paine described the licensing regime as "unworkable," arguing that it could impose undue burdens on businesses and stifle growth in the local digital economy, besides emphasising that no platform could be expected to register under the current conditions. The AIC acknowledged the government's commitment to addressing online harms- case in point, the unfortunate passing of Rajeswary Appahu, who committed suicide after distasteful comments on her Tiktok account.  However, the AIC stressed that the proposed implementation timeline lacks sufficient clarity and time for the industry to assess its implications.

Grab vehemently denied its involvement in the ‘protest’ by the major tech companies above. Grab mentioned it was neither informed nor consulted on an open letter the AIC sent to the PM. Furthermore, the proposed regulation does not impact its operations hence Grab did not provide any comments on this matter.

Shorts

1. Santan x MAS catering?

   Talks are brewing between Capital A (parent company of Airasia)’s Santan to provide in-flight catering services to Malaysia Airlines, or MAS. Although MAS has already engaged with other caterers, Capital A CEO Tony Fernandes still sees a world where his company provides zero-sugar and food services to our flag carrier airline as they are actively seeking new partnerships. This news comes after MAS terminated its prior agreement with Brahim Food Services Sdn Bhd after two decades.

2. Gang-style murder committed in Jasin

   A 24-year-old man was brutally murdered in a gangland-style attack at Jasin Hospital, as horrifyingly witnessed by medical staff and patients. The victim was initially assaulted by a group of masked men armed with machetes at a barber shop before he sought refuge at the hospital. They really want him dead badly - they followed him and continued their attack in the emergency department, resulting in his death later that evening. The victim's brother, who drove him to the hospital, fled in fear and reported the incident to the police. Authorities have arrested three suspects and are searching for two more, with investigations focusing on potential motives linked to gang feuds.

3. Another day, another shooting case?

   On August 23, a shooting at a restaurant in Bandar Bukit Tinggi Klang left a 45-year-old man injured. The victim was shot in the left hip by an assailant who arrived in a white MPV and opened fire on individuals sitting outside the establishment before fleeing the scene. Police recovered six bullet casings and are investigating the incident as an attempted murder, actively searching for the suspect. The victim was treated at Tengku Ampuan Rahimah Hospital and is reported to be in stable condition. Seriously guys, where did all the peace go?

4. AROUND THE WORLD 🌎

It’s the West against China, but was it China’s own doing?
Canada will impose a 100% tariff on Chinese-made electric vehicles (EVs) starting October 1, and a 25% duty on Chinese steel and aluminium from October 15. This move aligns with similar actions by the US and EU, accusing China of unfairly subsidising its EV industry, which Canada and its allies claim gives Chinese carmakers an unfair competitive edge. China’s said these tariffs are "trade protectionism" and violate World Trade Organization rules. The tariffs will also apply to Tesla vehicles made in Shanghai. Ouch.

Last year, China imposed export controls on key semiconductor materials, specifically gallium and germanium. This move is disrupting global supply chains and raising concerns about shortages in Western production of advanced chips and military hardware. These controls, introduced in response to US-led restrictions on advanced chip sales to China, have nearly doubled the prices of these minerals in Europe. With China controlling the majority of global supply — 98% of gallium and 60% of germanium — each shipment now requires approval, leading to significant delays and making long-term supply contracts difficult to maintain. China was using the restrictions to help it catch up with the US and other top countries in semiconductor technology, said a person from a company that uses a lot of semiconductor materials.

The answer to the rhetorical question of the sub-headline is no.

Australia caps new international students it accepts from 2025 onwards
On top of academic restrictions, the country down under will now restrict the number of new international student enrolments to 270,000 in 2025. Australia has around 717,500 international students, based on the latest government data from early 2024.

1. Enrolments at public universities will be pared back to 145,000 in 2025;

2. Private universities and non-university higher education providers will be able to enrol 30,000 new international students; and

3. Vocational education and training institutions will be limited to 95,000.

The government announced on Tuesday that each college and university will face its specific limits, with the largest cuts affecting vocational schools. This decision has upset many in the higher education field, with some universities calling it “economic vandalism.” However, the government believes this will enhance the quality and sustainability of the sector. The proposed cuts could cost the Australian economy USD4.1 bil, with 22,000 potential job losses in 2025.

You can’t really blame the government for making this move because there are some bad actors — colleges enrolling people who intend to work instead of study.

Conflict updates — There is still no end in sight

1. Russia-Ukraine: Ukraine has said its troops now control 1,294 square kilometres and 100 settlements in Russia's Kursk region, where Kyiv's soldiers have been carrying out an incursion since August 6. Ukraine's top commander, General Oleksandr Syrskyi, also said 594 Russian soldiers have been captured so far and that Ukrainian troops are continuing to advance in the region.

2. Israel-Palestine: Hamas has turned down new conditions from Israel in the Gaza ceasefire talks happening in Cairo, Egypt. This makes it less likely that there will be a breakthrough in the US-supported effort to end the 10-month war. A Hamas team left Cairo on Sunday after meeting with mediators and getting an update on the latest talks. Two Egyptian security sources told Reuters that the talks ended without an agreement, as neither Hamas nor Israel accepted the compromises suggested by the mediators.

Shorts

1. Overcorrection for PDD?
   PDD Holdings reported a significant 86% increase in second-quarter revenue to RMB97.06 bil (USD13.6 bil), but this fell short of Wall Street expectations of USD14.03 bil. Despite a strong surge in operating profit and attributable income, the company's stock experienced its largest one-day loss since its Nasdaq listing, plummeting by 28.57% after the disappointing revenue results, wiping out about USD55 bil in market cap.

2. Meta was under-pressure from Biden’s administration during Covid-19 days

   Meta Platforms CEO Mark Zuckerberg informed the US House Judiciary Committee that senior Biden administration officials had pressured Meta to censor COVID-19 content during the pandemic. He expressed regret for not resisting this pressure earlier and for some of the company’s decisions to remove certain content. Zuckerberg emphasised that he would push back against similar pressures in the future.

3. Microsoft purchases 100% of solar energy produced from over 1,000 public housing and government buildings
   Microsoft has signed a 20-year agreement to purchase 100% of the solar energy produced by EDP Renewables’ SolarNova 8 project in Singapore. The project, the largest solar initiative in Singapore, will install up to 200 megawatt-peak (MWp) of solar panels on over 1,000 public housing and government buildings. This marks the second clean energy agreement between Microsoft and EDP Renewables in Singapore. The SolarNova programme, launched in 2014, aims to accelerate solar photovoltaic system deployment across the country.

5. FOR YOUR EYES 📺

1. If you’re a tennis fan, we’ve got something right up your alley — the Stars of the (US) Open, where you can witness Alcaraz/Agassi versus Djokovic/McEnroe.

2. The full ‘Experience’ listing on Linkedin of NVIDIA CEO and co-founder Jensen Huang. If he were to seek for a new job, recruiters will question the 10-year gap between being a dishwasher and the CEO of this chip company called NVIDIA.

3. Malaysia’s largest IPO by proceeds in the past 10 years - view here.