☕️ Bersatu vs MACC

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

Today’s Special: The PlayStation

Today marks the 30th anniversary Sony launching the PlayStation. Sony made its first foray into the video games world by launching the PlayStation on Dec 3, 1994 and needed to sell 1 mil units to cover its costs. The company exceeded its goal by ten orders of magnitude, selling more than 102 mil units.

The original PlayStation can trace its history back to a fallout between a partnership between Nintendo and Sony in the late 1980s to develop a version of the Super Nintendo console with a built-in CD player. Nintendo suspected Sony was using the project to break into the gaming industry and abruptly cancelled the partnership in 1991, leaving Sony humiliated and going alone and pushing ahead with the project. Read the drama here.

To differentiate itself from Nintendo’s strategy that appealed to children, Sony targeted young adult audiences with action and fighting games such as “Tekken”, “Resident Evil” and “Metal Gear Solid”.

The PlayStation 2 set the record for the top-selling console in the history of video games, with more than 160 mil units sold. The fact that the PS2 could play DVDs was an added success factor.

Interestingly enough, the PS2 crossed paths with the military industry. In late 2000, it was reported that Sadam Hussein acquired 1,400 PS2s consoles to use its powerful microprocessors in missile guidance systems, leading to the Japanese government categorising the PS2 as a sensitive item due to its advanced graphics processing capabilities, raising fears of potential military use.

3. IN MALAYSIA 🇲🇾

Government proposes a whole lot of changes to online law in Parliament
As part of the Madani government’s commitment to combating online crimes, Communications Minister Fahmi Fadzil tabled a large bill of amendments to the existing Communications and Multimedia Act 1998 in the Dewan Rakyat today. Part of the bill provisions for imprisonment of up to five years or a RM500,000 fine, or both, for offences against children under 18 years old. The amendment, should it receive approval, will also stipulate an additional RM5,000 fine against offenders for each day the offence continues upon conviction.

In addition, the proposed bill could also potentially address the misuse of network or application services in distributing obscene communications for commercial purposes to any persons- the network or service provider could also be liable if such acts occur on networks under their control. A new clause is also being introduced to prohibit individuals from taking part, whether directly or indirectly, in sending unsolicited commercial electronic messages. The bill also introduces stricter penalties for people possessing any network facility found used in an unlawful manner. Good news, the dailyspam messages that you delete daily could be illegal soon.

Bersatu vs MACC
Last Sunday, Bersatu President Muhyiddin Yassin was reported to have threatened legal action against MACC and the related bank over its decision to freeze Bersatu’s account. Alleging abuse of power, Muhyiddin was open to litigation as Bersatu has not been charged with any legal offence and yet its accounts have been frozen for more than 12 months, contrary to present laws.

Come Monday, the MACC stated that the freezing of the party’s accounts was in accordance with law as Muhyiddin, serving as Bersatu president, has been charged. MACC has also obtained prosecution consent and the accounts are the “subject matter” of investigations, and therefore, could not be released until the trial concludes.

The party now finds itself in a financial quagmire — Bersatu treasurer Rina Harun stated that the party’s finances are “critical” due to the frozen accounts, making it difficult to conduct activities, particularly at the grassroots level. Bersatu is now seeking to mobilise state and division treasurers to find activities that could generate economic activity and income to allow the two groups to function independently.

Customs seize RM35 mil in goods around Selangor and Kuala Lumpur
Raids around the state and federal territory by the Customs Department bore significant fruit, as officers seized a plethora of goods. In one of the raids conducted last October, officers found 448g of cannabis valued at roughly RM13,000, disguised as wedding decor, brought in from a country in the Americas.

Seven containers at the North Port were also inspected, with RM1.2 mil in electrical goods being seized. These appliances ranging from vacuum cleaners to blenders, were believed to be imported for online sales, were falsely declared as other parts to avoid obtaining the mandatory certificate of approval for import from the Energy Commission. An inspection at the West ports last month found 26,400 litres of ethanol being confiscated as they were allegedly brought in without an import permit, worth RM2.5 mil.

Separately, customs additionally seized seven luxury vehicles following inspections at licensed warehouses, finding Ferraris and Jaguars amongst others, being stored longer than the allowed storage period.

Shorts

1. Johor plans to ‘reinvest’ 20% of tax revenue
   The state government’s plea comes in line with the directive of the Regent of Johor as it again appeals for at least 20% of state tax revenue to be funnelled back to Johor from the Federal Government. During the Johor assembly sitting, Johor MB Onn Ghazi stated that it is crucial to obtain the funds for more comprehensive development initiatives, as the assembly approved Johor’s RM1.999 bil budget for next year.

2. Flood: RM4 mil PNB donation, more bad weather warnings
   According to a statement from PNB, the RM4 mil allocation will provide immediate assistance for those affected by floods in the Eastern Peninsula states, besides facilitating long-term recovery efforts. The aforementioned aid will come in the form of food supplies and necessities like mattresses and blankets. In other news, METMalaysia has forecasted a monsoon surge until December 14 for the affected Eastern states, carrying potential thunderstorms and more heavy rainfall. The floods have been devastating, claiming 7 lives.
   Meanwhile, a small part of KL experienced snowfall — watch here.

3. Waze now shows EV charging spots
   Waze is now offering the option to display EV charging stations instead of petrol stations to some of its Malaysian user base. Although Malaysia is not officially recognized to offer this feature that was first introduced globally in March last year, some Malaysians have found the option to toggle EV chargers in the app’s settings.

4. AROUND THE WORLD 🌎

Middle East Madhouse

On Syria

Syrian rebels bombed: Russian and Syrian jets have intensified the bombing of rebel-controlled territory in northwestern Syria, with at least 25 killed, even as the Syrian army reports it has recaptured several towns recently overrun by rebels. However, reports from the opposition-run rescue service reported that 10 children were among the dead.

Iraqi aid: Iran-backed Iraqi militia has also entered Syria to assist the government led by President Bashar al-Assad in combating rebels, with Tehran also pledging to aid al-Assad’s administration. Iran’s militia groups were integral to the government’s success in subduing the rebels during the 2011 uprising and still have bases in Syria.

Kremlin support: Russia will also be continuing to support the Syrian government, having entered the fray on al-Assad’s side in 2015. Beyond the airstrikes already being conducted, Russia remains tight-lipped about any further support, with a spokesperson only saying that the Kremlin is “analysing the situation” to see what is needed to stabilise the situation.

Turkey’s admonishment: Ankara, who backs the Kurdish rebels in Syria, commented that the rebels’ sudden push is a sign that the government needs to “reconcile with its people and the opposition”. According to the Turkish foreign minister, Hakan Fidan, Turkey is ready for such a conversation. Fidan also said the reason for the rebels’ push is because “problems in the last 13 years were not solved”.

Israel, again

Israel breaching ceasefires? While Israel and Lebanon have already been trading accusations of breaches since the truce came into effect on Nov 27, Lebanon now claims the violations have turned deadly, with two killed in Israeli airstrikes in southern Lebanon. State security called the strikes a “flagrant violation” of the truce. Israeli officials have not responded or commented so far.

Another accusation against Israel: Former Israeli general and defence minister Moshe Yaalon has stepped forward, telling Israeli media that hardliners in PM Benjamin Netanyahu’s far-right cabinet are looking to chase Palestinians from northern Gaza to re-establish Jewish settlements, warning again that “war crimes are being committed”. Yaalon has also previously said the Netanyahu administration is looking “to conquer, to annexe, to carry out ethnic cleansing”.

ICC’s “existence in jeopardy”: The president of the International Criminal Court, at an annual conference of its 124 members, is “facing unprecedented challenges”, namely that the Court now faces arrest warrants and sanctions from Russia and the US. However, the Court president, Tomoko Akane, has promised the court will comply only with the law and firmly rejects any attempt to influence its independence and impartiality.

Presidential Plays

Biden pardons tax-evading, drug-using son
US President Joe Biden has pardoned his son Hunter despite previously pledging to never use his presidential authority to do so. He claimed that his son has been “singled out” and “selectively and unfairly” prosecuted due to his family name. He also claimed the singling out of his son was an example of how raw politics has infected the justice system, and beseeched the people to understand “why a father and a President would come to this decision”. Hunter Biden was convicted of a string of felonies related to making a false statement about his drug use during a gun background check and failing to pay at least USD1.4 mil in taxes. He was also pardoned weeks before he was to face sentencing.

President-elect Trump, who faced a string of criminal cases of his own before his re-election, called the pardon an “abuse and miscarriage of Justice”, while his future Department of Government Efficiency head Elon Musk weighed in with a post on X, with a screenshot of a proposed community note to one of Biden’s past posts.

Recycling batteries, remodelling a slum, and removing carbon

• Tesla cofounder’s EV battery recycling company looks at USD200mil revenue
  EV battery-recycling firm Redwood Materials is on track to record a USD200 mil revenue this year, according to its founder, JB Straubel. Straubel, who was also a co-founder of Tesla, explained that the company extracts raw materials from used batteries and processes them to be returned to production, in a bid to bolster the EV industry’s sustainability, and has been doing so for seven years. The firm’s goal is to produce enough battery materials for a million EVs annually.

• Indonesian tycoons to redevelop former slum into USD16 bil project
  The goal is to rebuild the slum as a new city, called PIK 2, with the project a collaboration between entrepreneur Sugianto Kusuma’s Agung Sedayu Group and billionaire Anthoni Salim’s Salim Group. The two groups formed a publicly-listed JV company called PT Pantai Indah Kapak Dua, which currently has a market capitalisation of USD16 bil. The project is currently in its conceptual stage, but the plan is to have it completed in 2060, with amenities such as a safari area and an international motor racetrack.

• Amazon to pilot AI-designed "atomic sponge" for CO2
  The tech giant plans to pilot the carbon-removal material for data centres, which are at risk of worsening emissions due to the AI systems they power. However, the material itself, which is described as a “sponge on the atomic level” for CO2, was designed by an AI. The material is also projected to only cost a fraction of the current price for offsetting carbon.

Shorts:

1. Australian drug bust arrests 13 in largest cocaine bust to date
   The authorities tracked a fishing boat that had allegedly travelled to meet a mother ship loaded with cocaine and was bound for the Australian coast before breaking down. Police seized 2.3 tonnes of cocaine, which has an estimated street value of USD494 mil. The 13 arrested are charged with conspiracy to import a commercial quantity of border-controlled drugs, which carries a maximum penalty of life imprisonment if convicted.

2. Intel CEO retires
   Pat Gelsinger retired following a tumultuous time for the tech firm, with Intel having struggled to keep up in the AI era against the likes of Nvidia. Gelsinger, who was appointed CEO in 2021, will be temporarily replaced by CFO David Zinsner and senior executive Michelle Johnston Holthaus, who will both serve as interim co-CEOs.

3. MAS fines JP Morgan USD1.8 mil over misconduct
   Singapore’s central bank fined the US lender for failing to prevent and detect misconduct committed by its relationship managers. The misconduct saw the managers providing inaccurate or incomplete information to clients, charging them above the agreed rates.

5. FOR YOUR EYES 📺

Today on Parenting: The OPEX of operating a 12-month-old baby and the drug called co-comelon

1. Drugs — there’s cocaine for adults, there’s CoComelon for kids. Some child development experts say that how this kid’s show was designed is hyper-simulating, that it actually acts as a drug and could cause development issues. Parents, smash the melon? As for its colour scheme - bright, stimulating colours used similarly in casinos to keep gamblers there.

2. Is your budget ready for this?