☕️ “Big fish” behind the medical visa and counter-setting syndicate

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

As of June 30, 2024, 346,417 affordable housing units have been built, achieving 69.3% of the 500,000-unit target set under the 12th Malaysia Plan (12MP). Housing and Local Government Ministry Secretary-General M Noor Azman Taib credited the success of the collaboration between federal housing agencies, state governments, and private developers. PR1MA Malaysia Corporation has been a key contributor, with 88 ongoing projects across the country, totalling 54,137 units, of which 40,686 have already been sold by August 30, 2024.

The good times can only be enjoyed in memories. Morgan Housel explained this concept in his recent podcast episode — A Brief History of Nostalgia. The situation in China highlights exactly this. In 2004, nearly 60% of respondents felt their families' economic situation had improved over the past five years, with similar optimism for the future. By 2009 and 2014, this sentiment surged, with 72.4% and 76.5% respectively reporting improvements and strong hope for the future. However, in 2023, only 38.8% felt their lives had improved, and optimism dropped to 47%. Pessimism also rose sharply, from 2.3% in 2004 to 16% in 2023.

By the end of 2023, Singapore saw a significant influx of personal financial assets, totalling USD400 bil (RM1.7 tril) from China, alongside substantial transfers from Indonesia (USD140 bil), India (USD130 bil), Hong Kong (USD70 bil), and USD370 bil from the rest of Asia, according to McKinsey. In contrast, Hong Kong received USD555 bil from mainland China and USD735 mil from the rest of Asia. Singapore's popularity as a hub for single-family offices has surged, growing from 400 in 2020 to 1,650 by August 2023, reflecting its increasing appeal for wealth management.

3. IN MALAYSIA 🇲🇾

“Big fish” behind the medical visa and counter-setting syndicate
According to multiple sources speaking to Malaysiakini, a Bangladeshi whistleblower who goes by “Najib” revealed the alleged cause behind persistent issues surrounding the syndicates in Malaysia.

Najib does not proclaim innocence as he admits to having played a part in bringing foreign workers into the country for five years - but he claims that the "big fish" behind the syndicate being left untouched allows the operations to continue. He emphasised that the Immigration Department is merely a front, with various government agencies complicit in the scheme. Najib, who is ready to expose the syndicate's activity, is planning to return to Bangladesh due to “declining business” in bringing in illegal immigrants. Just name and shame, boys.

In response, Home Minister, Saifuddin Nasution Ismail, called on Malaysiakini to provide authorities with the identities of the alleged “big fish” behind these syndicates. When asked in the Dewan Rakyat if the government is aware of the presence of these masterminds reported by Malaysiakini by Kepong MP Lim Lip Eng, Saifuddin promised to personally deliver the info to the MACC with the players’ full names and activities as proof.

Business

1. New RM9.5 billion township launched in Genting

   Publicly traded LBS Bina Group has officially launched Rimbawan, a 315-acre township development project in Genting Highlands, Pahang. The township, according to a Press statement issued during its launch on Tuesday, will offer bungalows, landed properties, apartments as well as commercial spaces and - get this - 50 acres of preserved forest. We love to see developers opting for ecodevelopment!

   LBS Bina Group plans to integrate the future Rimbawan community with the local ecosystem as they aim for rivers and waterfalls to be the highlight of the township. The group also has plans to reserve 6km of cycling and jogging tracks, 9km of jungle paths, besides promising green corridors all throughout the project site to encourage birds and wildlife to maintain their habitat.

   Rimbawan was unveiled in conjunction with the launch of the township’s first project named Bayu Hills, a high-rise residential building with a Gross Development Value of RM453 mil.

2. CIMB Singapore provides boost to CIMB Group Holdings

   CIMB Group Holdings Bhd is experiencing a significant turnaround in its Singapore operations with enhanced margins, which has rebounded after facing challenges related to impaired loans in the oil and gas and marine sectors back in 2020. Even on a single branch located at Raffles Place (the country’s financial district), CIMB Singapore accounts for approximately 15% of the group's pre-tax profit for the first half of 2024, alongside contributing 10% of group loans and 14% of total deposits.

   CIMB Singapore’s strategic shift towards higher-yield segments such as commercial banking and treasury operations has been significant, as it reduced its focus on lower-margin consumer products, which now constitute only 15% of its loans. The bank is also impressively liquid, as its balance sheet reflected in a loan-to-deposit ratio of just 67.8%. The bank's cost-to-income ratio has decreased to 43%.

   CIMB Singapore holds a modest customer market share of about 2.4%, and roughly 1% of SME loans in Singapore, indicating substantial growth potential given the presence of approximately 310,000 SMEs in the region.

Shorts

1. PAS welcomes a new member and it’s.. The UMNO President’s brother?

   According to party officials, a younger brother of UMNO President Zahid Hamidi has been accepted as a new member of the Malaysian Islamic Party or PAS. Hakim Hamidi was seen in a video holding an official membership form as he shook hands with a current PAS MP at its headquarters today, with PAS president Hadi Awang present. Hakim Hamidi, a former UMNO member, has been in the news before when he announced that his company was stopping any government deals when Zahid was Deputy PM.

2. Former PM Najib Razak’s daughter appointed as MATRADE director

   The chairman of Malaysia External Trade Development Corporation (MATRADE), Reezal Merican, announced that Nooryana Najib has been made a director of the agency on Facebook yesterday. Reezal handed over the appointment letter and witnessed her taking the oath of commitment to anti-corruption (the irony), as seen by two other directors, Hairil Yahri and Mastura Karim. Reezal did not provide any explanation to the board surrounding Nooryana’s hire.

   36-year-old and a director already? Must have outstanding merit.

3. First Malaysian Chinese commando graduate in over two decades

   Chan Ming Youn has made history as the first Malaysian Chinese commando graduate in over two decades. Growing up in a working-class family in Puchong, Selangor, he faced strong opposition from his parents regarding his military ambitions, which they deemed unrealistic. Despite their disapproval, Chan secretly enrolled in an army cadet school after completing his secondary education and later joined Territorial Army Regiment (Wataniah) while earning an accounting degree. Talk about setting the bar!

4. Another day, another sinkhole

   In today’s episode of sinkholes in Malaysia, a new incident has been spotted in Taman Sri Nibong, George Town. The area has since been closed off, as a school bus got stuck after its tyre fell into the cavity. Thankfully, no one was injured. The sinkhole is attributed to a leaking Indah Water pipe, with the company bearing responsibility in repairs that are estimated to take around a week to complete.

   View the sinkhole here:

4. AROUND THE WORLD 🌎

Gaza in dire straits as Israeli actions raise more concerns
Palestinian health officials have called for a humanitarian corridor to be opened as northern Gaza runs low on food and medicine, leading to the skyrocketing cost of essential items there, with some foodstuffs going for up to 180 times its pre-war price.

Interesting aside: Israel and the US were the only two countries at the UN to vote nay to making food a human right.

Humanitarian aid to the Gaza Strip as a whole has also been facing complications, with the UN Relief and Works Agency for Palestine Refugees (UNRWA) “close to a breaking point”, according to its commissioner general, due to political and financial threats, alongside increasing operational difficulties. The UNRWA chief warned that famine and acute malnutrition were real risks as well, considering that winter is coming.

The US has weighed in on this by sending an ultimatum to Israel: boost humanitarian aid access in Gaza within 30 days, or some US military assistance will be cut off. This also represents the “strongest known written warning” from the US to Israel. Israel is reviewing the letter and intends to seriously “address the concerns raised”. Only some aid? Not all of it? Wow. The amount of political pressure is unreal. Yes, that’s sarcasm.

Meanwhile, in Lebanon, Israel could be opening a wider front against Hezbollah, according to sources. The sign here is the demining operation the IDF is conducting near Golan, where it can establish a beachhead to strike Hezbollah from further east along Lebanon’s border. Israel is also continuing to expand its air operations, with an airstrike recently destroying the municipal building of Nabatieh, a major town, where the mayor and five others were killed as they were reportedly meeting to coordinate aid. This has raised concerns that Israel could start targeting public officials and buildings as well, with the US also opposing the scope of the airstrikes in Beirut. Isn’t it interesting that the mayor had responded that he would not leave the town after an evacuation order by the IDF?

Grounding the High-flying

1. China begins enforcement on taxing the ultra-rich

   Beijing has begun the enforcement of a long-overlooked tax on overseas investment gains by the ultra-rich, with sources saying some wealthy individuals in major Chinese cities were told to conduct self-assessments or summoned by tax authorities, with the individuals facing up to 20% levies on investment gains. This marks another move by China to secure another source of revenue in the face of its slowing growth and property market woes.

2. Airline woes to continue as delivery delays not improving

   International Air Transport Association chief Willie Walsh called the delays “massively frustrating”, and believes it will be a problem for a number of years, as both planemakers Boeing and Airbus are faced with supply chain difficulties. The impact has been felt with several airlines such as Ryanair cutting passenger traffic estimates moving forward due to the delays in plane deliveries.

   Boeing is also currently in the second month of a machinist strike at its key plant in Seattle, with a rally mounting more pressure on its new CEO to raise wages. Meanwhile, Airbus is also axing 2,500 jobs from its space and defence unit, due to its negative effect on the firm’s financial performance.

3. Air India jet bomb threat leads to scrambled Singaporean fighters

   The city-state launched two F-15SG fighter aircraft to escort Air India flight AXB684 away from populated areas after a bomb threat was received. The plane landed safely at Changi Airport and was swept for explosives, though none were found. This incident is among the latest in a series of threats faced by Indian airlines, with other Indian carriers also receiving bomb threats over the past 48 hours.

Shorts:

1. Indonesia requests Google, Apple to ban Temu

   The request to block the Chinese fast fashion e-commerce platform from showing in app stores in Indonesia aims to protect the country’s SMEs against cheap products offered. The communications minister called the platform, which connects buyers directly with factories in China to significantly lower prices, “unhealthy competition”. The government has also indicated it will block any investment by Temu in local e-commerce, should there be such a move.

2. Nigerian fuel tanker explosion kills 94

   The tanker exploded after it overturned on an expressway, with the casualties stemming from people rushing to the vehicle to collect the fuel. This led to at least 94 dead, with over 50 wounded. The tanker overturned due to the driver veering to avoid a collision with a truck. A similar incident last month led to at least 48 dead in an explosion involving a fuel tanker.

3. Kpop workplace harassment saga continues with NewJeans' Hanni testifying

   The artiste gave a tearful testimony that alleged entertainment agency Hybe of undermining her band, with senior managers also accused of ignoring her on multiple occasions. Her account is the latest testimony at a hearing about workplace harassment by an entertainment agency.

   Watch a recap of the testimony here:

5. FOR YOUR EYES 📺

1. In 2022, about one out of every three people in the world, or 2.8 billion people, couldn't afford to eat healthy food. This information comes from the World Bank and the United Nations’ Food and Agriculture Organization.

2. Who would have thought one could make a movie poster with batik — well, one Malaysian artist certainly did! An official collab between Arif Rafhan and Sony Pictures Malaysia.