☕️ RM20 mil ransom paid, 13 suspects arrested in businessman's kidnapping

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

RM183.1 mil was collected in taxes from electronic cigarettes and vape products over three years, from 2021 to 2024, according to PM Anwar. This total includes both nicotine-containing and non-nicotine products. Anwar, who also serves as Finance Minister, noted that RM100.3 million of the total was generated from nicotine-containing smoking products. Both nicotine and non-nicotine liquids or gels used in electronic cigarettes and vapes are subject to an excise duty of 40 cents per milliliter.

HKD1.28 bil (RM710 mil) was the combined loss before income tax reported by Hong Kong’s eight virtual banks for the first six months of this year, according to filings released on September 30. Despite backing from major companies like Ant Group, Tencent, Xiaomi, Ping An Insurance, Industrial and Commercial Bank of China, Bank of China, and Standard Chartered, these banks have struggled to achieve consistent profitability over their four years of operation due to low transaction volumes. Collectively, they served over 2.2 million depositors in 2023, representing 8.8% of the retail banking market in the financial hub. However, by other metrics—total loans and advances, total assets, and deposit amounts—their market share is only 0.3%.

USD35,000 (RM151K) is the price of the limited edition Hibiki 40-Year-Old, unveiled at an evening gala in Paris. Suntory is promoting it as the most precious blended whisky in its 101-year history, marking Hibiki’s oldest age statement to date. Each of Hibiki’s age-statement blends utilizes a different cask style as the “lead actor” in the ensemble. For the Hibiki 40, the heart malt was matured in American white oak, which imparts its sunburnt orange hue and contributes honey and clove complexities to its elegant body.

3. IN MALAYSIA 🇲🇾

RM20 mil for the release of a kidnapped businessman
A property developer was ambushed at gunpoint by three masked men outside of his home in Johor Bahru on October 12, 2024, when he was leaving for a business trip. Initially, the kidnappers demanded a ransom of RM30 mil before being reduced to RM20 mil after negotiations. His family managed to gather RM5 mil and an acquaintance in Singapore transferred the remaining. 14 hours after the ransom was paid, the victim was released and he lodged a police report. A special Johor police task force arrested 13 suspects on October 22, 2024, and among them is a relative of the victim.

GISB under the spotlight with major developments
NFSW — graphic reading content ahead.

1. A Singaporean who used to be a member of GISB has put forth claims of being a sex slave for her husband for 14 years. Zoey (not her real name) was forced to marry a man older than her by 10 years at the age of 17. Despite being sexually and physically abused even while she was pregnant, her parents brainwashed her to stay and a divorce would bring shame to GISB. Zoey reached her breaking point when her 9 children could no longer endure the abuse which led her to lodge a police report and move to a safe house for abused women and children. She filed for divorce in 2021 before leaving for Singapore with her children.

2. 22 out of the 60 people who were detained under the Security Offences (Special Measures) Act 2012 (SOSMA) have been charged, said Inspector-General of Police. The duration of detention under SOSMA provides enough time for the police to investigate all the remaining detainees. He also added that the police would soon investigate claims that parties were monitoring shelters involving GISB. Among the 22 charged for being members of an organised criminal group are the CEO of GISB and his wife as well as the son of the Al-Arqam founder. The 13 men and 9 women understood the charges and the case will be investigated under SOSMA but no pleas were recorded. Judge Lailatul Zuraida has set December 23, 2024, for mention of the case and the trial will take place at the Kuala Lumpur High Court.

Business  

• The government will finalise sustainable development guidelines for data centres in the next three weeks. The guideline has a set metric for carbon, power, and water usage effectiveness, which will be one of the conditions for applying for government incentives. The government is looking to achieve their target of 70% renewable energy usage and net-zero emissions by 2050 through the guidelines. A total of 89 digital economy projects have been approved from 2021 to June 2024, amounting to RM131 bil. The country has a computing capacity of 0.62 gigawatts for data centres, which represents 0.6% of the overall electricity consumption. 

• The plan to merge the AirAsia brand management business into the Nasdaq-listed special purpose acquisition company (SPAC) for USD1.15 bil goes in vain as Capital A Bhd has called off its agreement with Aetherium Acquisition Corp. as it received a delisting notice from Nasqad’s hearing panel in June. Capital A aimed to enhance the value of Capital A International to improve its negative equity situation and move out of its Practice Note 17 status. Capital A chief executive officer Tony Fernandes had another plan — unlocking the value of Capital A’s aviation unit. Minority shareholders of Capital A and AAX have agreed to Capital A’s proposal to dispose of AirAsia Bhd and AirAsia Aviation Group Ltd to AAX at a value of RM6.8 bil. Capital A has recorded accumulated losses of RM12.87 bil and a negative total equity position of RM11.24 bil by the end of June.

Shorts

1. Hotel check-in hours are actually under the state government’s purview
   According to Tourism, Arts and Culture Minister Tiong King Sing, the issue of hotel check-ins and check-out is not under the control of the Tourism, Arts and Culture Minister but under the purview of the state government. The ministry is only able to look over the registration of tourism residential premises. However, the ministry discussed with hotel operators and found the issue was caused by the shortage of housekeeping workers. Tiong said his ministry will work with the Housing and Local Government Ministry, state governments and other stakeholders on the necessity to incorporate elements of control into Act 482

2. Training funds for pilot went missing
   The issue of missing funds allocated for pilot training had led the Majlis Amanah Rakyat (MARA) to lodge a police report. The agency is conducting an internal investigation to ensure accountability regarding the financial discrepancies. Reports claim that a Malaysia-based company was responsible for the financial transactions with the Czech Aviation Training Centre (CATC) which trains Malaysian students. The company failed to resolve matters with CATC leading students to enrol in local flight schools instead. Read more about the case here.

4. AROUND THE WORLD 🌎

Tyre under fire as Israel hits historic port
Israel landed at least four airstrikes on the historic port city of Tyre, with one hitting only a few hundred metres away from a Unesco World Heritage-listed Roman ruins. These strikes come after the IDF expanded its evacuation orders in the city, warning civilians that it was going to “act forcefully” against Hezbollah there. Tens of thousands of people have already fled the city due to the IDF campaign against Hezbollah, with Lebanon’s Minister of Culture already in touch with Unesco to call for the protection of the city’s heritage sites and people.

US Secretary of State Antony Blinken is already in the Middle East, meeting with Israeli and Saudi officials to discuss options to halt the fighting. His current line of approach is reminding Israel that they have already largely destroyed Hamas as a fighting force, especially with the elimination of most of its leadership, and should now be focusing on getting hostages home and ending the war for “an enduring strategic success”.

However, Blinken also had a warning for Israel. While the US has seen improvements in addressing the lack of humanitarian aid to Gaza, the steps were not enough. The ultimatum delivered last week called for Israel to surge aid into Northern Gaza or risk having some military support cut off. As it is, the polio vaccine campaign in northern Gaza, which previously depended on breaks in the fighting for the vaccines to be administered, has been postponed. The WHO said this was due to the Israeli siege, which attacked civilian infrastructure and made it impossible for families to bring their children for vaccination, or for health workers to operate.

Hair care, burgers, and turning planes around

• Dyson - from eletronics to consumer goods

  Nobody is sure if this is the right move, but Dyson is optimistic and pivoting into hair care - an already crowded market segment - after its success in building its image as an innovative, high-performance brand in hairstyling tools. It’s part of the company’s longer-term strategy to grow the business by diversifying into a new range of products. The company said that its goal is to introduce more than 20 new products over the next four years, as part of an investment made in 2022, when the group reportedly set aside GBP500 mil (RM2.8 bil) in its R&D budget for hair care innovations. Dyson is confident that their data and research in hair science will contribute to success in their foray into the new segment.

• McDonald's in hot water after E. coli kills one, sickens dozens

  The US Centers for Disease Control linked the E. coli outbreak to the fast-food chain’s popular Quarter Pounder hamburgers, with 49 people sickened, 10 hospitalised, and one dead across 10 states. The company pulled slivered onions and beef patties off the menu for several stores in response, with McDonald’s shares down 6%. A livestock trader was also quoted saying that the E. coli outbreak could pressure US cattle futures as well, due to the threat to the demand for beef.

• Kelly Ortberg wants to "Make Boeing Iconic Again"

  The new CEO stated his plan after the planemaker reported a widened loss of USD6.1 bil for the third quarter of the year, bogged down by a machinist strike and customer frustrations due to delivery delays. Ortberg said that the focus will be “fundamentally changing the culture, stabilising the business, and improving programme execution, while setting the foundation for the future of Boeing”, though he also prefaced this by saying it will take time. It probably didn’t help that a communications satellite built by Boeing broke up in orbit, with the operator, Intelsat, confirming the “total loss” of the satellite.

Hungary, the EU, and Big Tech

• Hungarian leader accuses EU of attempting to overthrow his government

  Hungarian PM Viktor Orban alleged the EU was behind the largest threat to his 14-year reign, and plans to impose the popular opposition party Tisza, led by political newcomer Peter Magyar, calling the party a “puppet government”. Orban has repeatedly clashed with EU leaders about his sovereign policies, which favoured a hard right slant. Magyar is said to have tapped into voter frustrations with Orban, accusing the government of corruption and running a propaganda machine.

• EU favourite for antitrust chief position vows stricter crackdown on Big Tech

  Teresa Ribera, who is earmarked as the next European Commission antitrust chief, vowed to intensify the EU’s crackdown on Big Tech and foreign companies receiving unfair state subsidies to buy EU peers or take part in EU tenders. She pledged to push for vigorous enforcement of the Digital Markets Act 2022 while shaping the policy to avoid “unduly long antitrust investigations”, which she says the EU cannot afford. Part of the solution will be the simplification of rules for state aid and the enforcement of foreign subsidy regulation.

Shorts:

1. HSBC CEO warns of redundancies among senior staff post-revamp

   CEO Georges Elhedery warned HSBC staff that some at the senior level should prepare themselves after the bank’s latest restructuring, as part of streamlining “duplicative senior roles” in a bid to cut costs. The bank will be merging some operations and splitting its geographic footprint into East and West as part of the restructuring as well.

2. Ex-Abercrombie CEO charged with running sex trafficking ring

   Former fashion brand CEO Mike Jeffries, along with his partner Matthew Smith and alleged middleman James Jacobson, were arrested following an investigation by the FBI, prompted by reports that Jeffries and his partner sexually exploited and abused men at events they host. Jeffries was accused of using his wealth, power, and status as CEO of Abercrombie and Fitch to “traffic men for his own sexual pleasure”.

5. FOR YOUR EYES 📺

1. Most people in the world—over 96%—live in the country where they were born. Only a few people move to live in another country for more than a year — international migrants. Since 1990, the number of international migrants has increased a lot, but because the world population has also grown, the percentage of migrants compared to everyone else has stayed about the same.

2. If you’re picking up Pickleball like yours truly did, you can check this video out on how to improve your skills, all at home!

3. PSA: New EPF scam. Beware!