☕️ N9 polls: BN only contesting in 25 seats, reserves 11 seats for "friend"

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

RM1 mil – That's how much the US will contribute to the restoration of Tugu Negara. The contribution symbolises the long-standing ties between the two nations as the US celebrates its 250th anniversary and Malaysia nears its 70th Merdeka. According to US Embassy Chargé d’Affaires ad interim David H. Gamble, this includes the unique connection between Tugu Negara and the Iwo Jima Memorial in the US, both of which were sculpted by the same artist, Felix de Weldon - learn more here about Felix.

RM5,500 to RM10,000 – That’s how much private senior-living options can cost per month in Malaysia, depending on the level of care required, according to JLL Malaysia. The other option is government-run homes, which have monthly fees starting from around RM300, but usually provide only basic shared accommodation and minimal care. What’s missing, according to industry players, are more reasonably priced senior-living options for middle-income Malaysians. It does not help that Malaysia’s income replacement ratio – the share of pre-retirement income needed in retirement – is at about 35%, well below the World Bank recommendation of about 70%, and far from enough to cover the cost of senior living, which can get expensive due to different needs, medical or otherwise, as a person ages.

More than 10,000 – European countries reported that many excess deaths during the record-breaking heatwave that hit the west of the continent in late June, of which more than 9,000 were among people aged 65 and above. Extreme heat can kill by causing heat stroke, or by aggravating cardiovascular and respiratory diseases, placing older people among the most vulnerable. However, it should be noted that the number, which was pooled from national mortality statistics in 27 European countries, included excess deaths from all causes, not just heat-related ones, during the week of June 22 to 28, when the heatwave peaked. Still, the number is unusually high, and can only be explained by the extreme heat, according to the chief physician at Denmark’s Statens Serum Institut. An excess death refers to the difference between the actual number of deaths recorded during a specific period and the number of deaths that would normally be expected based on historical baselines.

3. IN MALAYSIA 🇲🇾

BN is not contesting all 36 seats for the Negeri Sembilan state election
Barisan Nasional (BN) will only contest 25 out of the available 36 seats in the upcoming Negeri Sembilan polls, with the remaining 11 seats reserved for a “trusted friend”. The move comes amid recent remarks by opposition party Parti Islam Se-Malaysia (PAS) signalling its willingness to work with UMNO. However, previously, UMNO president Ahmad Zahid Hamidi had refuted any rumours that UMNO would work together with PAS for the state election. The possible UMNO-PAS cooperation in Negeri Sembilan will further widen the divide between PAS and Bersatu, where both are members of Perikatan Nasional (PN).

Further fuelling speculation that PAS and Bersatu may go their separate ways was Bersatu president Muhyiddin Yassin, who said his party would field candidates under its own logo instead of the coalition’s. He warned that Bersatu will not stand aside if it ends up facing PAS candidates in the Negeri Sembilan state election.

New National Trust Fund Bill to be introduced
Malaysia was a bit ahead of the curve when we introduced the National Trust Fund (KWAN) in 1988, two years earlier than the establishment of Norway's Oil Fund. Since its inception, PETRONAS, the sole contributor of KWAN, has deposited RM13.5 bil, with KWAN’s net assets having grown to RM22.43 bil in 2024, about 66% growth in asset value. Throughout this period, KWAN has only been utilised twice, including RM5 bil between 2021 and 2023 to finance the purchase of Covid-19 vaccines, and RM42 mil for the Malaysia Wetland Sanctuary Project in 1998. To further enhance the governance of KWAN, the Parliament is set to pass the National Trust Fund Bill 2026, to repeal the National Trust Fund Act 1988. Under the proposed legislation:

• KWAN will be administered through the National Trust Fund (Incorporated).

• Putrajaya is required to contribute at least 0.1% of its projected annual revenue to the fund, while 2% of PETRONAS dividends will also be channelled into KWAN.

• Putrajaya must contribute 2% of export duties collected from depleting natural resources such as crude oil, mineral ores and iron ore.

• Limits annual withdrawals from KWAN to 50% of the fund’s expected long-term real investment return for the relevant financial year. A motion must first be tabled and approved by the Dewan Rakyat if a larger withdrawal is needed.

• Under Clause 24 of the Bill, the fund may only be used for expenditure relating to education, healthcare, and climate change mitigation and adaptation.

At the end of the day, as with many government organisations flushed with cash, all comes down to governance and competent management. Norway’s oil fund (aka Norges) has assets of RM8.55 tril, now the world’s largest sovereign wealth fund and owns ~1.5% of listed equities worldwide.

Penang x Perak in RM210 mil a year water supply deal
Penang Water Supply Corporation (PBAPP) signed the Perak-Penang Water Project (P-PWP) Bulk Water Supply Agreement (BWSA) with Prasarana Air dan Irigasi Perak Sdn Bhd (PAIP Perak), for the latter to supply the former with water from 2032 until 2072. Penang will pay RM210 mil per annum, while Perak is willing to sell 300 to 500 MLD of treated water. Consequently, Perak has to build, operate and manage a new 500 MLD water treatment plant and its related supporting infrastructure to supply the water, which will cost about RM8.4 bil. PAIP Perak is responsible for the capital and operational expenditure costs of the P-PWP BWSA.

Gamuda is expected to secure a share in the project as PAIP Perak is owned by Khazanah Air Perak Sdn Bhd, a company that is 50% indirectly owned by Gamuda. According to Hong Leong Investment Bank (HLIB), Gamuda is expected to secure around RM4 bil worth of construction contracts.

Shorts:

1. JPJ loses Madani plate copyright infringement case

   The Road Transport Department (JPJ) was found guilty of copyright infringement over the government’s Madani special vehicle registration number plate bidding programme. Plaintiff Hasan Azhari Hashim said he conceived and registered a copyrighted proposal paper for the Madani special registration number plate series with MyIPO and then submitted the proposal to various government agencies. Although the proposal was rejected, Hasan later sued because some of the promo material from his proposal was used. The court awarded Hasan RM40,000 in statutory and additional damages, as well as RM25,000 in costs.

2. Retrenchments hit the highly skilled more
   According to Maybank Investment Bank, high-skilled workers on average accounted for over half of retrenchments in 2021-2025 and remained the largest affected workers for the first five months of 2026. This happened because high-skilled workers tend to take up the voluntary separation schemes, mutual separation schemes and early retirement packages. In terms of sectors, manufacturing and services took the brunt of the retrenchments, with business downsizing and closures cited as the main reasons. According to the Department of Statistics Malaysia (DOSM), high-skilled workers are defined as managers, professionals, technicians and associate professionals.

3. LaLaport Transportation Hub launched
   Federal Territories Minister Hannah Yeoh recently launched the LaLaport Transportation Hub, aiming to serve up to 10,000 passengers a day. The hub is strategically located beside the Hang Tuah LRT and Monorail interchange and is now a licensed boarding and drop-off point for express bus passengers. The hub will accommodate around 150 daily bus trips involving some 30 operators, including a 24-hour express bus service linking Kuala Lumpur and Singapore. So, now, what happened to Terminal Bersepadu Selatan at Bandar Tasik Selatan and Terminal Bersepadu Gombak?

4. Putrajaya to consider thorium as nuclear fuel
   Deputy Energy Transition and Water Transformation Minister Abdul Rahman Mohamad said that Putrajaya is currently studying the potential use of thorium to generate electricity. He added that countries such as the US, Russia, France and China have expressed interest in collaborating for the study. MyPower Corporation will be the leading agency coordinating the study.

4. AROUND THE WORLD 🌎

Tech deals

Stripe and Advent are circling around PayPal
Like predatory sharks circling their prey, Stripe and Advent are now watching PayPal. Both companies have made a joint offer to buy the payment giant for USD60.50 (RM246.73) per share, which will value PayPal at USD53 bil, which is 26% higher than its current market capitalisation of USD42 bil.

If you think this is a good deal for PayPal, think again. PayPal’s market valuation peaked at USD360 bil in 2021, when the world was in a pandemic and needed online payment solutions. However, it didn’t improve its products and services much from there, thinking that transactions would continue to increase and its users would not move to other competitors.

That was a mistake. Its valuation has declined by almost 90% to as low as USD36 bil. Stripe, which was established much later than PayPal, and last valued at USD159 bil, four times bigger. How fortunes have changed.

Uber launches USD14.8 bil bid for Delivery Hero
Uber is set to take over German firm Delivery Hero (also owns foodpanda), in a move that would give the latter a USD14.8 bil (RM60.27 bil) equity value, possibly creating the largest food-delivery group outside China as competition with US and European rivals heats up. The transaction, supported by Delivery Hero's management and supervisory board, is expected to be completed in the second half of next year.

Acquiring Delivery Hero would expand the Uber Eats network in Europe, the Middle East, Asia and Latin America. Still, it would also attract attention from antitrust regulators given the overlap in the companies' presence. Founded in Berlin in 2011, Delivery Hero expanded rapidly through a series of acquisitions that made it one of the world's largest food-delivery companies, though it has retreated from some markets under pressure from investors to focus on profits.

Think AI bubble to pop? TSMC is investing further for the AI ‘megatrend’
Taiwan Semiconductor Manufacturing Co (TSMC) is confident that the rapid growth in demand for chips and data centres will go well beyond 2027, and therefore has raised its spending and revenue projections for the year. The main chipmaker for Nvidia Corp now expects capital expenditure of USD60 bil (RM244.36 bil) to USD64 bil in 2026, at least USD4 bil higher than previously forecast. The company also projects revenue growth of slightly above 40%, significantly higher than the 30%-plus it had predicted.

Widespread use of Pegasus hacking software by Morocco revealed
A whistleblower who is a former member of Morocco’s domestic intelligence service has helped to provide an unprecedented insight into how the country used hacking software – including Pegasus spyware – to target journalists, human rights defenders, French politicians and Spanish cabinet ministers and police officers. Manufactured by the Israel-based NSO Group, Pegasus allows its operator to access everything on a target’s mobile phone, including emails, text messages and photographs. It can also activate the phone’s recorder and camera, turning it into a listening device.

Evidence from the whistleblower suggests the country’s internal security services began using Pegasus in 2017 and went on to deploy it against domestic and foreign targets over the course of four years. The investigation was done by a consortium of 14 media organisations, with technical support from Amnesty International’s Security Lab.

New guidelines to respectfully film female athletes
The European Broadcasting Union (EBU) has released new guidelines for broadcasters to use more respectful camera angles when filming female athletes. The EBU has worked with several female athletes to come up with the guidelines, including British pole vaulter Holly Bradshaw and Serbian Olympic long jumper Ivana Spanovic, who both experienced sexual abuse themselves.

Sexualisation of women athletes through selective camera angles and editing choices continues to be a significant concern across many sports broadcasts. The guidelines include avoiding low camera angles underneath athletes in events such as the high jump or pole vault, which have a high chance of generating compromising images. View the full guidelines here.

R Kelly appeals to Trump to commute prison sentence
R&B singer R Kelly, who was once known for hits including "I Believe I Can Fly" (now probably I Believe I Can Be Pardoned), has attempted a formal appeal to US President Donald Trump for a reduction of his 31-year prison sentence. The 59-year-old was found guilty in 2021 of leading a criminal enterprise that recruited women and underage girls for illegal sexual activity and pornography, and is now serving the sentence. Kelly has repeatedly denied all allegations against him, and his lawyer has been publicly lobbying Trump for more than a year.

5. FOR YOUR EYES 📺

1. It’s official - World Cup final will see Argentina vs Spain. The stars of each nation, Lionel Messi and Lamine Yamal, crossed paths before in a photoshoot 20 years ago, when one was 19 years old and the other was newly born.

2. Seems like Network School hoo-ha was overblown, a non-issue after all. Balaji laid out his response in a long X post and 30+ min video and whether Malaysia still stands a chance to be top 20 global tech hub.

3. Had to wrap up today’s issue late last night as there are more important priorities to attend to - to watch Christopher Nolan’s The Odyssey (final trailer here), based on ancient Greek poet Homer’s creation about 2,700+ years ago. TLDR summary here. Didn’t disappoint. Probably should have watched the IMAX version instead. The term Trojan Horse came from this literature. Tom Holland of Spider-Man had to delay the shooting Spider-Man:Brand New Day for Odyssey, or Zendaya told him she would leave him.

4. Hendry is back today with his weight-loss video - ZUS Coffee edition. Have a good, healthy, happy, entertaining, passionate, and safe weekend ahead!