☕️ Jul 12: DAP special congress to decide whether to resign from all govt

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

USD240 mil (RM936.72 mil). That’s how much Fibrebond founder Graham Walker gave to his employees after selling the business to power management firm Eaton. The amount represented 15% of the USD1.7 bil that he sold the company for. This meant an average bonus of about USD443,000 (RM1.73 mil) for each of his 540 full-time employees, to be paid out over five years as long as they stay at the company. Fibrebond makes enclosures for electrical equipment. With the sale, the company will shift its focus to building enclosures for data centres.

RM268. That’s how much tourists can save using the Melaka Tourism Passport, which was introduced by the state government. It was launched in conjunction with Visit Melaka 2.0 and Visit Malaysia 2026. The passport covers 63 tourism products, with discounts of up to 80%. The goal is to draw 19 mil tourists and visitors to Melaka in 2026. The 63 tourism products comprise 35 tourist attractions; 15 hotels, resorts, chalets, and homestays; four restaurants and cafés; four shopping centres; and five health tourism packages. The passport even offers ‘Treat and Travel’ packages involving four private hospitals in the state as part of efforts to attract medical tourists. The passport is priced at RM5 - that’s a nearly 53x ROI assuming you use everything. Want one? You can get a Melaka Tourism Passport at either Zoo Melaka or the Tourism Melaka Kiosk at Stadthuys.

99 dogs. That’s how many dogs were brought home in 90 days through the pet-finder AI tool Search Party on Ring Doorbells, according to Amazon CEO Andy Jassy. The tool uses doorbell cameras linked to Ring, Amazon’s smart doorbell security system. However, some called the system ‘dystopian’, with some social media users saying they felt overly surveilled. Jassy wrote that privacy remains in the homeowner’s control, as they get to decide whether to share any footage of a potential missing dog. The AI is trained on ‘tens of thousands’ of dog videos so it can recognise different breeds, sizes, fur patterns, body features, unique marks, shape, and colour.

3. IN MALAYSIA 🇲🇾

TB outbreak
What’s the worst thing that can happen when two of the biggest gatherings of people are happening at the same time - the CNY gathering and Malaysians flocking to Ramadan bazaars? The answer is a TB outbreak. The Health Ministry stated that as of February 21 (Saturday), a total of 596 new tuberculosis cases were reported nationwide (from February 8 to 14), bringing the total of TB cases to 3,161. The breakdown of cases shows that Sabah recorded the highest number with 755 cases, followed by Selangor with 596 and Sarawak with 332 cases. The Health Ministry added that, unlike influenza or Covid-19, TB spreads more slowly and usually requires prolonged and repeated exposure. So, the ministry said that there is no need to sound the alarm bells yet. Tuberculosis (TB) is a serious, contagious infection caused by Mycobacterium tuberculosis bacteria, primarily affecting the lungs.

In responding to the new TB threat, Health Minister Dzulkefly Ahmad said that the supplies of TB medicine are adequate at the moment. Yes, tuberculosis (TB) is preventable and curable. With proper and timely medical treatment, the vast majority of people with TB can be successfully cured.

Part 4: Azam Baki sues Bloomberg, demanding RM100 mil damages
The Malaysian Anti-Corruption Commission (MACC) chief commissioner Azam Baki was summoned by a special committee to his shareholdings in Velocity Capital Partner Berhad. Chief Secretary to the Government Shamsul Azri Abu Bakar said the committee led by Attorney-General Dusuki Mokhtar is scrutinising the compliance and regularity of the 17.7 mil shares of Velocity Capital Partner Bhd that Azam purchased at around RM1.5 mil, well above the RM100k threshold allowed for Malaysian public servants. Other than that, at one point, Azam Baki also owned 4.52 mil shares in Awanbiru, which has a cloud service provider (CSP) agreement with Putrajaya.

Bloomberg published its investigation on Feb 10 that kickstarted this whole saga and Azam Baki is now suing Bloomberg for defamation, demanding RM100 mil and a public apology.

An interesting perspective by Rafizi Ramli on this matter, even if the whole transaction is legal - the risk of ‘open for business’.

DAP to decide whether to vacate all government posts or not
DAP Secretary-General, Anthony Loke stated that a special congress will be organised on July 12 to decide whether its leaders should resign from all government posts while continuing to support the unity government in Parliament. Contrary to normal convention, where decisions are made by its Central Executive Committee (CEC), now DAP will leave it to its 4,000+ central delegates to vote on the matter. At the moment, DAP holds five ministerial and seven deputy ministerial posts, four senatorships, one chief ministership, one state ministership and 21 state executive councillor positions, along with hundreds of local council and village appointments. However, the timing is quite uncanny as the special congress will only be held after the planned Johor and Melaka state elections. Wait and see strategy.

Fast-tracked second chances for a targeted group of bankrupt individuals
Law Minister Azalina Othman said that Putrajaya has introduced the ‘Second Chance Fast Track Policy’ aimed at providing an express pathway to help 1) single parents; 2) microloan entrepreneurs; 3) victims of scammers, and 4) housing loan borrowers of abandoned projects, to discharge their bankrupt status. Having declared bankruptcy can be a death sentence for some, as the impact can include seizure of assets, frozen bank accounts, a RM1,000 credit limit, and being barred from working in certain professions. The Insolvency Department successfully resolved 204,487 bankruptcy discharge cases last year, up from 176,851 in 2024.

4. AROUND THE WORLD 🌎

Trump: Tariffs made illegal, China visit

US Supreme Court struck down tariffs 
Following the Supreme Court’s decision that struck down his tariff last Friday, Trump threw a tantrum during a news conference by accusing it of being “swayed by foreign interests”. He then proceeded to attack the justices, denouncing the liberal members as a “disgrace to our nation” and the conservatives who sided with them as “unpatriotic and disloyal” to the Constitution. Nevertheless, he asserted that he will maintain the levies through alternative means, arguing that another law, the Trade Expansion Act of 1962, gave him the legal basis to continue his global tariffs. Shortly after, he used the Trade Expansion Act to impose a 10% global tariff for 150 days, replacing some of the tariffs that were struck down by the court. Then, yesterday, Trump increased the percentage to 15%, a maximum allowed under the never-used trade law. The 10% tariffs were set to come into force on Tuesday, Feb 24, but it is unclear if the new 15% tariffs will also begin at the same time.

Trump to visit China
At Beijing’s invitation, Trump will travel to China from Mar 31 to Apr 2, marking the first official visit by a US president since 2017. Trump and Chinese President Xi Jinping have respectively described “excellent” and “good communication” between the two countries in recent months. Tariffs will likely be on the agenda in Beijing, along with China’s response to the US’s trade threats, including no longer buying soybeans, which was previously the top US export to China.

Changing tides for Spain from US to China
Spain is reportedly planning to build more political and financial links to China, in light of the US shaking the global economic order. The tactic is part of a new Asia-Pacific strategy that outlines Madrid’s priorities for the next three years. The document is said to be calling for more high-level meetings and economic exchanges between Spain and China, while encouraging other European countries to coordinate on their relationship with Beijing. PM Pedro Sánchez will also visit China soon after Trump, marking his fourth appearance in just over three years. While there, the prime minister is expected to meet President Xi Jinping and will be accompanied by Spanish business leaders. The strategy reaffirms Spain’s position as Europe’s leader on efforts to deepen ties to China, and also its willingness to rebuff Trump administration warnings in doing so. You do you.

Business

Thai hotel empire plans for USD 1 bil REIT, unit IPO to cut debt
Thailand’s largest hotel and restaurant chain operator, Minor International Pcl is said to be setting up its first real estate investment trust (REIT) worth about USD1 bil, with the possible listing of its restaurant unit, Minor Food Pcl, in Hong Kong to raise funds for debt repayment. The company will sell 14 hotels in Europe and Thailand into the REIT, with the trust to be listed in Singapore in the second half of this year. One of Asia’s largest hospitality groups, the company aims to increase the number of hotels under management from 850 by 2028 from 636 last year and to operate more than 4,000 restaurants in the same timeline, up from nearly 3,000 last year. Minor, whose hotels in Thailand were featured in the hit series White Lotus, has been cutting debt to ease investor concerns after its 2018 acquisition of NH Hotel Group SA significantly increased liabilities.

Speaking of Thai hotels, the co-founder of British fast-fashion retailer Asos, Quentin Griffiths, has died after a fall from a balcony of a hotel in Pattaya, Thailand, last week. Police said initial investigations suggested suicide, and there were no indications of foul play.

If you are new to investing, REIT is a good and easy way to get started investing. In simplified terms, by investing in REIT, you are entitled to the rental income of a portfolio of properties (i.e. malls, data centres). Learn more here.

AI beneficiaries: Toilet maker, food seasoning
While we often think that the AI boom mostly benefits big techs and chipmakers, in Japan, the boom is apparently “flushing gains” into a toilet manufacturer and a seasoning giant because they happen to sit inside the semiconductor supply chain.

Toilet maker Toto, which is famous for its high-tech bidets and heated seats, has drawn investor attention as it makes electrostatic chucks, which are critical components used in the production of NAND memory chips. Toto’s shares have gone up more than 54% over the past year.

Meanwhile, Japanese food giant Ajinomoto has also become an unlikely AI infrastructure player as it produces an insulating material used in advanced semiconductor packaging. For the nine months ended December, the company reported an 8.9% rise in net profit, while operating profit increased 5.6% year-on-year, with its gains partly driven by its “Healthcare and Others” segment, which includes the said electronic materials.

Space Stuff

NASA moon mission delayed
NASA has announced that its long-awaited mission to moon, Artemis II, will not launch on March 6 as planned, due to several last-minute issues during routine checks that would prevent liftoff. The mission would see astronauts sent to the moon for the first time in 50 years, on a 10-day trip to the far side of the Moon and back, marking humanity's furthest ever journey into space. Four astronauts from the US and Canada are preparing to be sent on the trip. It is hoped that the mission, if successful, will pave the way for Artemis III, where astronauts will finally set foot on the Moon again.

Trump to release alien files
Trump is ordering federal agencies to release government documents that discuss extraterrestrial life and unexplained aerial phenomena. The order came after he accused former President Barack Obama of giving away such classified information, in which he suggested he could get Obama “out of trouble” by declassifying the related information. The US intelligence community and Pentagon did release a report in 2021 detailing what it knew about unidentified flying objects that have been spotted by military pilots over the past several decades. Trump’s push to focus on aliens comes at the beginning of a hectic midterm election year, with a heavy public focus on information disclosed in files related to Jeffrey Epstein.

5. FOR YOUR EYES 📺

Still in CNY mood

1. Which is the healthier soft drink, relatively? Some surprising results.

2. Just one year apart - the stunning progress of China’s Unitree humanoid. Trump & the US watching in fear. Warfare enters a different era Watch here these humanoid and robot dogs in military mode. If you have USD13.5k (RM52.7k) to spare, you can buy one here.

3. Thai Police goes undercover in lion dance to nab a criminal.