☕️ MyKAD alleged massive leak, Bukit Aman dismissed such claims

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

60% of listed companies in Indonesia, Malaysia, the Philippines, and Thailand are family-owned, with family members holding key leadership roles or at least 5% of shares, according to Credit Suisse. Half of the businesses in the Credit Suisse Family 1000 global report for 2023 were based in the Asia-Pacific region (excluding Japan), followed by Europe at 24% and North America at 15%. Without succession plans, family businesses face risks such as diluted ownership due to increasing heirs, vulnerability to takeovers if shares are sold, or reputational harm from internal disputes. Fragmented ownership can weaken successors’ control compared to founders. However, in the wider Asia-Pacific region, family firms have outperformed nonfamily businesses with a 3.3% annual growth premium (2006–2023), primarily during earlier entrepreneurial stages.

766 million hours of childcare per year are provided by grandparents, saving parents GBP3.5 bil (RM19.74 bil) in nursery costs, according to a new report by the Resolution Foundation. The report highlights that seven in 10 mothers with children under five years old are working, a significant increase from 41% in 1992. Due to high childcare costs, grandparents play a crucial role, with more than a quarter helping with parenting. Additionally, ‘boomerang children’ who return to live with their parents save an estimated GBP3 bil (RM16.92 bil) a month on rent.

612,692 entrepreneurs have been assisted by the Ministry of Entrepreneur and Cooperatives Development (KUSKOP) from January to September 2024, with a total of RM6.45 bil in financing (average RM10.5k per person). The beneficiaries include micro, small, and medium enterprises (MSMEs), cooperatives, social enterprises, informal entrepreneurs, hawkers, and small traders across Malaysia. These entrepreneurs received support through 206 programs implemented by the ministry and its agencies.

3. IN MALAYSIA 🇲🇾

Malay language test to be part of Malaysian citizenship application
As part of the amendments introduced in the 2024 constitution bill, a Malay language proficiency test module is being introduced by the Home Ministry to assess national language skills for individuals applying for citizenship. The bill was passed through a bloc vote, gaining 50 supporting votes after debates by 33 senators. Minister Saifuddin Nasution noted in the Dewan Rakyat that this requirement is not unique to Malaysia, as other countries like Canada and Germany require passing a language test for citizen applications too.

The government decided not to adopt a retroactive approach to the amendments as it would be too complicated, raising questions such as how many generations should be subject to language tests. This change will also not affect the eligibility of children born to Malaysian mothers before the law is enacted.

MyKAD leaks are circulating online, government says “no way”
Pictures of citizens’ MyKAD are circulating on social media, alleging that a massive data breach occurred, with leaks being sold on the dark web. In response, Saifuddin Nasution, in a TikTok video, dismissed such claims after both the National Registration Department and National Cyber Security Agency (NACSA) confirmed no incidents took place. NACSA did say beforehand that the allegations were taken seriously, as it worked with experts to launch a probe to assess the extent of a potential leak. The public was also urged by NACSA to monitor their bank accounts for suspicious transactions and to be wary of unsolicited communications.

Never click on unfamiliar links guys. Malaysian Communications and Multimedia Commission (MCMC) had also enforced telcos to block prohibited content such as hyperlinks, personal information requests and callback numbers from Sept 1.

Capital A's logistics arm set for record-high yearly revenue 
Capital A’s Teleport is projected to set a new annual revenue record in this financial year as it amasses more than RM1 bil, according to CEO Pete Chareonwongsak. This huge revenue was fuelled by higher parcel volume, which is projected to double to 350,000 parcels daily by the end of the year, up from 170,000 in the first half of 2024.

Teleport’s EBITDA is expected to break the RM100 mil mark. They are determined to sustain its growth projection as the company tries to justify its billion-dollar valuation, backed by fantastic earnings for the past three months. September saw their EBITDA increasing by more than sixfold to RM21.9 mil compared to the same period last year. Last year, Teleport secured a RM50 mil credit facility, aimed at helping it grow. Most of the spending from that credit line has already been recuperated, according to Pete- Teleport is currently eyeing additional funding opportunities while restructuring existing debt to support any potential IPOs.

Things aren’t looking great for their parent company Capital A though as it tries to fix its finances to exit Practice Note 17 status.

Shorts

1. The weapon of the Sabah whistleblower? A pen bought on Shopee

   It’s no ordinary pen, obviously. The whistleblower who exposed Sabah’s top politicians (and himself) for giving and accepting bribes, did it with a camera-equipped pen that cost him RM75.90 at the online marketplace. The businessman mentioned getting the idea as he was in despair while watching a movie on Netflix after he lost his mining license. He also welcomes MACC to request the pen and the original recordings to prove that they are legitimate and not enhanced by AI.

2. Kepala Batas MP loses defamation suit filed by three DAP leaders

   Dr Siti Mastura of PAS is ordered to pay a staggering RM750,000 to the three after losing a defamation suit. She was found to have made defamatory statements against DAP chairman Lim Guan Eng, Lim Kit Siang, and Teresa Kok. Justice Quay Chew Soon, in a Zoom call on Wednesday, awarded a further RM25,000 to the three plaintiffs for legal costs. The statements were colourful to say the least, alleging that the DAP leaders had ties with communist leader Chin Peng.

3. More CCTVs to be installed at UPNM

   Sultan Ibrahim, in his inaugural address as the university’s chancellor, urged all parties to work towards restoring UPNM’s good name. As part of the university’s efforts to eradicate bullying, the university is adding a total of 21 new CCTVs in living quarters. The university is also undertaking other measures like year 1 cadets now being housed separately from seniors, more late-night patrols by trainers, and requesting more manpower to ensure proper monitoring.

4. Perodua unveils EV concept

   Perodua unveils what it touts to be the cheapest electric vehicle in Malaysia, the eMO-II. Expected to be priced between RM50,000 and RM90,000 and boasting about 400km of range, Perodua expects to produce about 500 of these units monthly come next year. eMO-II looks like a Myvi from the rear, let’s hope it’s not the new “king” of highways- it’s pretty speedy as it’s expected to accelerate to 100km/h in less than 7 seconds.
   eMO is pronounced as M-O.

4. AROUND THE WORLD 🌎

South Korean Crisis

Yoon’s Martial Law Manoeuvre: South Korean President Yoon Suk Yeol declared martial law for the first time in the country in nearly 50 years, mentioning “anti-state forces” and the threat of North Korea during his late-night announcement. Helmeted troops and police were deployed to the National Assembly building, with the military decreeing a ban on protests and activity by parliament and political groups shortly after the declaration. Martial law also places the media under government control.

Cue The Protests: South Korea’s politicians immediately denounced the declaration as “illegal and unconstitutional”, even Yoon’s party leader, who called the declaration a “wrong move”. Opposition leader Lee Jae-Myung called on his MPs to head to the National Assembly building to vote down the declaration. Lee also called on ordinary citizens to turn up in protest, with thousands heeding the call. Staffers within the building itself also clashed with police, with the building’s occupants quickly building barricades. Ultimately, with 190 of the 300 MPs present, the declaration of martial law was unanimously voted down (190 to 0) and ruled invalid, with Yoon withdrawing martial law six hours after it was declared, though the withdrawal will only take effect once his cabinet can be convened.

The Pain Continues: Yoon’s declaration still caused harm, as South Korean stocks plunged following the announcement. South Korea-based companies that trade on the NASDAQ and NYSE saw drops between 6% to 10%, while the South Korean won fell 3% relative to the US dollar. Globally, South Korea’s allies have expressed concerns at Yoon’s bid to overthrow civilian rule, with even Russia, which is allied with North Korea, expressing concern at “the tragic events unfolding in South Korea”.

Impeachment Incoming: Opposition lawmakers are moving to have Yoon impeached following his failed bid at martial law, with the vote coming as soon as Friday. The vote requires a two-thirds majority and only requires a handful of defections from the president’s party to secure the votes needed. As it stands numerous organisations are moving to strike in a bid to have Yoon step down, such as Hyundai's labour union. Should Yoon be impeached, he joins the long list of South Korea’s presidents who have been impeached or imprisoned in some way.

More Israeli Shenanigans

Truce Violations Abound: Lebanese authorities and Hezbollah have levied more accusations against Israel, alleging more violations of the truce currently in place, even as Israel makes the same accusations against Hezbollah. This has led to strikes and vowed responses that endanger the increasingly fragile ceasefire agreement brokered by the US. The five-party truce-monitoring committee, of which the US is part, is currently investigating and addressing reports of violations.

Israel Threatens Expanded War: Should the ceasefire actually break down, Israel has threatened to go back to war with Lebanon, with its strikes going deeper and targeting the Lebanese state itself, as it will hold Lebanon responsible for failing to disarm militants who violate the ceasefire. This also marks the strongest threat issued since the ceasefire was agreed upon.

Israeli Settlers Fighting Everyone: Two Palestinian towns in the occupied West Bank were attacked by settlers after police looked to dismantle an illegal settler outpost. Eight people have been arrested for assaulting security forces and damaging property, with cars and property set ablaze. A group of settlers also confronted IDF and police personnel.

Dollars and Sense

• GM to take USD5 bil in charges over China ops
  General Motors will be recording two non-cash charges totalling over USD5 bil on its JV in China, with the first charge related to the restructuring of the operations and the second reflecting the JV’s reduced value. GM’s China division is no longer a profit engine for the firm, instead struggling to compete with carmakers in China. The first three quarters of 2024 saw a loss of USD350 mil in the region for GM, with a warning coming in July that China is becoming an “untenable market”.

• Salesforce Q3 beats estimates
  Robust spending on its enterprise cloud portfolio saw Salesforce beating Wall Street estimates for its third quarter, with the firm recording USD9.44 bil, an 8% increase. This was also helped by healthy client spending on Salesforce’s products and data cloud as said clients integrate AI. The firm has also indicated it will look to hire 1,400 people in its fourth quarter. The hires will go towards manning Agentforce, the firm’s newly launched AI-integrated product. Agentforce was made generally available in late October but has already delivered 200 deals, with projections of a strong pipeline.

• Northvolt looks to dispose of its electric industrial battery business by the end of the year
  The Swedish battery firm is looking to strengthen its finances with the deal, while also shrinking down its business to focus on battery cell production. This comes two weeks after the firm filed for US Chapter 11 bankruptcy protection following failed talks with stakeholders to raise more funds. To date, the firm needs up to USD1.2 bil in external long-term funding. The unit to be disposed of specialises in battery packs for heavy industry used in drill rigs and construction to power machinery.

Shorts:

1. Tokyo to trial four-day workweek for government staff
   The move comes as a bid to encourage parenthood, with Tokyo Governor Yuriko Koike offering civil servants employed by the Tokyo Metropolitan Government the option of a shorter workweek beginning in April next year. The shorter workweek also serves as support for a better work-life balance for its civil servants, though they will still have to complete 155 hours of work per month.

2. Meta looks to hire nuclear power developers
   The tech giant is seeking proposals from nuclear power developers, with a goal of adding up to 4 gigawatts of new US nuclear generation capacity starting in the early 2030s. To that end, Meta is looking for developers with expertise in community engagement, development, and permitting. Aspiring developers need to submit their proposals by 7 February 2025.

3. UN calls for USD47 bil in aid
   The UN is looking for USD47 bil in aid in 2025 to help 190 million people fleeing conflict and battling starvation. However, donor appetites have faded, with the UN struggling to meet its aid appeal for 2024, which was already slashed from USD56 bil to USD46 bil. Only 43% of this was met, with the US giving over USD10 bil.

5. FOR YOUR EYES 📺

1. Who are some of the biggest exporters in the world? Fun fact — Last year, the value of exports dropped in 20 of the top 30 countries because of more trade restrictions. As tariffs are being discussed again for 2025, this trend might persist.

2. YouTube’s random algorithm introduced me to this video — an interesting one about rich neighbourhoods in Tokyo.