☕️ Government considers congestion charges in major cities

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

2 mil barrels of oil equivalent (mmboe) per day – Petronas has unveiled ambitious plans to boost the country’s oil and gas production over the next three years. In its latest activity outlook report, the company aims to increase output from 1.7 mmboe in 2024 to 2 mmboe daily between 2025 and 2027. To achieve this, Petronas plans to drill over 400 wells and execute 39 upstream projects, including the construction of three offshore central processing platforms, three onshore facilities, and the installation of approximately 900 kilometers of pipelines. These initiatives underscore Petronas’ commitment to sustaining Malaysia’s energy production and strengthening its position in the global oil and gas sector.

The Doomsday Clock has been moved forward by one second, now standing at 89 seconds before midnight for the first time in three years, signaling a heightened risk of global catastrophe. The Bulletin of the Atomic Scientists (BAS) cites ongoing threats from nuclear weapons, climate change, bioweapons, infectious diseases, and disruptive technologies like artificial intelligence (AI) as contributing factors. This marks the closest the clock has been to midnight in 78 years, symbolising how close humanity is to the end of the world due to dangerous technologies.

Wildfire seasons globally have lengthened by 27% from 1979 to 2019, adding 14 extra days to the 2019 fire season compared to 40 years earlier, according to a 2022 study. This extension is due to hotter global temperatures, which are causing fire seasons to start earlier and end later. Additionally, extreme fire weather, characterised by hot, dry, and windy conditions, has become more frequent, with the number of days with such conditions increasing by 54% globally during the same period.

3. IN MALAYSIA 🇲🇾

18 priorities for ASEAN economies
In order to counter the uncertain geo-political and geo-economic climate, Trade Minister Tengku Zafrul Abdul Aziz intends to propose 18 priority economic deliverables (PEDs) to ASEAN economic ministers during their retreat in Johor. Among the key PEDs are -

• Digital Economy Framework Agreement (Defa), a pact among ASEAN nations to boost digital trade and e-commerce, particularly benefiting MSMEs;

• Strategic push to strengthen cooperation in high-growth sectors like semiconductors and electric vehicles (EVs), positioning ASEAN as a unified investment hub rather than as competing individual nations.

Now is the time for ASEAN to work together because, as a bloc, ASEAN is the fifth-largest economy globally, with a combined GDP of USD3.8 tril as of 2023. ASEAN, united as one economy, is bigger than any other country in the world, excluding the US, China, Japan, and Germany.

Putrajaya is mulling introducing congestion charge
Federal Territories Minister Dr Zaliha Mustafa told the Parliament that the Government is seriously considering introducing congestion charges in major cities such as Kuala Lumpur, Georgetown and Johor Bahru to reduce traffic jams. Dr Zaliha added that congestion charges could reduce traffic jams in Kuala Lumpur by 20% and for every 1% of congestion reduced, it could save the country about RM200 mil in losses. Several cities that have implemented congestion charges successfully, such as London, Singapore, Stockholm and New York, have been used as case studies to introduce fair congestion charges in the country.

Other than minimising the losses incurred from traffic jams, congestion charges could also be a revenue-generating tool to raise funds for building more public transportation infrastructure. The concept is simple - penalising the use of private vehicles to finance the construction of public transportation.

On the topic of public transportation, the Light Rail Transit 3 (LRT3), which connects Bandar Utama, Petaling Jaya to Johan Setia, Klang, is scheduled to begin operations on September 30 this year. The 37.8km LRT3 is at a 98.63% completion rate and, once completed, the new line will have 26 stations and cost the Government a whopping RM21.33 bil.

National household debt: 84.2% of GDP
The Finance Ministry told the Parliament that the national household debt stands at RM1.63 tril or 84.2% of the gross domestic product (GDP). However, the debt level is way lower than the household financial assets, totalling RM3.4 tril. The ministry added that the prudent lending standards of banks continue to ensure that the household debt level remains manageable. However, Putrajaya needs to do a deeper study to understand the distribution of household debts and assets across income classes and whether our consumption-based economy is driven by actual purchasing power or merely fueled by debt.

Meanwhile, RHB Bank Bhd announced a higher net profit in 4QFY2024, netting RM834.54 mil, a 42.45% increase compared to 4QFY2023. RHB Bank attributed the positive performance towards higher net interest income and lower allowances for credit losses. Who is the winner out of all this? The shareholders, of course, who will receive a 43 sen per share dividend, the highest the bank has ever issued for a financial year. View its earnings here.

Shorts

1. RM2.43 bil North Coastal Paired Road approved

   The Penang Government has approved the construction of the North Coastal Paired Road from Tanjung Bungah to Teluk Bahang, which will have a RM2.43 bil price tag. According to Penang Chief Minister Chow Kon Yeow, the alignment of the new road will avoid densely-populated residential areas in certain locations, and about 70% of the road will go through the hills. A mix of alternative financing methods such as land swap agreements and contra agreements based on future developments is utilised with the main contractor Consortium Zenith Construction Sdn Bhd (CZC) to minimise the financial outlay by the Government for the project.

2. Ocean Infinity narrows search area for MH370, confident of success

   The latest and final attempt to locate the missing Malaysia Airlines Flight MH370 might be successful as the company-in-charge, UK-based Ocean Infinity, managed to narrow down the search area from the previous 120,000 square kilometres to an area of about 15,000 square kilometres, more or less similar to the total size of the state of Kelantan. Additionally, the optimism from Ocean Infinity is high as they are willing to fork out an initial investment of RM45.07 mil, on top of proceeding with the search mission on a ‘no-find, no-fee’ basis with the Malaysian Government. However, if Ocean Infinity is successful, the government will pay USD70 mil (RM309 mil) to the company.

4. AROUND THE WORLD 🌎

Trump threatens 25% tariffs on EU
Trump has voiced further dissatisfaction with the EU and said that the US has been treated unfairly in trade, so he will impose a 25% tariff on imports from the bloc countries soon. He also said that while the US “takes everything” from the EU, the region does not accept US cars and farm products. The EU currently imposes a 10% tariff on US vehicle imports, which is four times the US tariff on European passenger car imports. He added that the EU was formed “to screw the US”. The European Commission swiftly responded and reaffirmed that it will react firmly and immediately against unjustified barriers to free and fair trade, adding that it will always protect European businesses, workers, and consumers from unjustified tariffs.

Tech Business:

• Nvidia gives ‘underwhelming’ report after two years of blockbuster earnings
  Chipmaker giant Nvidia delivered a good, but not very exciting report on its quarterly numbers on Wednesday, warning that gross profit margins would be tighter than anticipated as it rushes to roll out a new chip design called Blackwell. It also predicted that sales will be about USD43 bil (RM190.49 bil) in the fiscal first quarter, which runs through April. Analysts had given estimates of USD42.3 bil on average, with some projections ranging as high as USD48 bil. Though the company’s fiscal fourth-quarter sales topped analysts’ estimates at USD39.3 bil, they did so by the smallest margin since February 2023, while earnings had the narrowest amount of upside since November 2022. Nvidia’s stock had been down 2.2% this year, following stratospheric gains in 2023 and 2024 that turned Nvidia into the world’s most valuable chipmaker.

• Bolt lines up adviser for potential IPO next year
  Estonian mobility firm Bolt Technology, a rival company of Uber, is reported to be possibly pursuing an IPO as soon as next year. Undisclosed sources are saying that it is currently working with an adviser to determine the merits of listing in Europe or the US, or pursue other avenues to raise capital. Offering ride-hailing, food delivery, and scooter rentals, Bolt secured a EUR220 mil (RM1.02 bil) credit facility last year, which its CEO Markus Villig said would help it to “work towards being IPO-ready.” The company earned a EUR7.4 bil valuation in a 2022 funding round after raising EUR628 mil from Sequoia Capital, Fidelity Management and other investors.

• Ben & Jerry’s founders discuss buying back ice cream brand from Unilever
  The founders of Ben & Jerry’s iconic ice creams have expressed interest in buying back their namesake ice cream brand from Unilever Plc, with a possibility of partnering with socially minded investors. The Ben & Jerry’s business could be valued at several billion dollars in a sale, which means the founders would need deep-pocketed financial backers to make it happen. However, Unilever issued a statement that the ice cream business was not for sale. Cohen and Greenfield founded the brand in Burlington, Vermont in 1978, and agreed to sell Ben & Jerry’s to Unilever in 2000 for USD326 mil (RM1.4 bil). The deal gave power over the social mission of Ben & Jerry’s to an independent board, which strives to pursue progressive and social justice issues, sometimes to the dismay of Unilever. The two sides have been fighting since 2021, when Ben & Jerry’s said it would halt sales in the West Bank. Unilever has since sold its ice cream unit in Israel to a local producer.

Shorts:

1. Iran’s government restricting crypto as Iranian rial plummets

   Despite global cryptocurrency growth, the Central Bank of Iran (CBI) suddenly stopped rial payments in all cryptocurrency exchanges, following a move by the Iranian authorities who are cracking down on cryptocurrencies and online exchanges. The main goal was said to counter further depreciation of the struggling national currency by stopping it from changing hands for foreign currencies. Iran’s economy has been plagued by inflation rates of more than 40% for years, and remains disconnected from the global payments system.

2. Hollywood legend Gene Hackman and wife found dead at home

   Oscar-winning actor Gene Hackman, 95, was found dead yesterday alongside his wife and their dog at their home in New Mexico, during a welfare check by the county’s sheriff. Although no foul play was suspected, the cause of death was still under investigation at the time of writing. Hackman, a five-time Oscar nominee, starred in dozens of films and was one of the industry’s most respected performers.

3. Another near-miss aviation incident in the US

   In yet another (thankfully) near-miss incident, a Southwest Airlines flight was forced to abort a landing at Chicago Midway airport, narrowly avoiding a collision with a business jet by only about 2,050 feet. The Federal Aviation Administration said that the business jet had apparently entered the runway without authorisation. Near-miss incidents like this have happened more frequently over the last two years, raising concerns about US aviation safety and the strain on understaffed air traffic control operations. Watch the dramatic video here.

5. FOR YOUR EYES 📺

1. Has Apple peaked?

2. An unexpected remix - Bruno Mars jamming to Nirvana’s Smell Like Teen Spirit, singing Michael Jackson’s Billie Jean. Happy weekend!

findgoodsongs

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