☕️ EPF 9M 2024 total investment income up 20% to RM57.57 bil

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

45,737 EVs have been registered with the Road Transport Department (JPJ) as of August this year. In H1 2024, 10,664 EVs were sold in Malaysia, representing only 2.6% of total vehicle sales during the period. The government aims to build 10,000 EV charging bays nationwide by 2030, meaning an additional 7,500 more bays costing around a total of RM585 mil (average RM78k per bay) must be built.
View: Top 30 EVs registered in Malaysia (Oct 2024)

If you have been considering a Tesla, Tesla Malaysia is a on a promo-spree now to convince you to get one - RM2.1k discount through referral (use ours here!), RM2k corporate discount, free home charger worth about RM2.8k (when you sign up at showroom) and 0% interest financing, downpayment as low as 10% and RM10k trade-in uplift. We know the details well - cause we fell for this promo. DYOR. T&C apply.

There’s PayPal Mafia*, and there’s Klarna Mafia now. The Swedish Buy Now Pay Later (BNPL) firm has spun out more startups than any other fintech unicorn in Europe. According to venture capital firm Accel, a total of 62 new startups were created by alumni from Klarna. Digital banking app Revolut’s former employees have founded 49 startups and money transfer app Wise and online-only bank N26 both have former employees started 33 companies each. Accel labels these companies “founder factories”, on the basis that they become breeding grounds for talents that often go on to establish their own firm.
Read: Accel’s Fintech Founder Factory
*Elon Musk (Tesla, SpaceX), Reid Hoffman (LinkedIn), Steve Chen, Chad Hurley and Jawid Karim (YouTube), Jeremy Stoppelman (Yelp) are among the members of PayPal Mafia.

25,120 websites were blocked between 2018 and Oct 1 this year due to various offences, according to the Communications Ministry. The websites blocked: 9,847 online gambling content, 7,846 for lewd content, 3,476 for infringing copyrights, 563 for prostitution, 544 for scams and 2,844 for jeopardising public safety (not sure what kinda content are these).

3. IN MALAYSIA 🇲🇾

Neverending bullying case at Universiti Pertahanan Nasional Malaysia (UPNM)
After receiving a report on November 8 about a bullying case in UPNM, the police have recorded statements from 15 individuals, including a 19-year-old victim who suffered a fractured spine and ribs from being stomped on by a Year 3 student during a roll call on October 21.

In the same report, just a day later, a second bully case involving a first-year getting hurt by a steam iron occurred. Suspect Amirul Iskandar Norhanizan pleaded not guilty after charges were read to him before a judge in the Sessions Court. The victim is still receiving medical treatment for his injuries. The father of the late Zulfarhan Osman, a cadet who tragically passed after an iron-related bully case, expressed disappointment that similar cases are still occurring at the university, thinking that Zulfarhan’s case would be “the last”.

Defence Minister, Khaled Nordin condemned the two incidents, emphasizing that the ministry will not tolerate bullying and will cooperate fully with the police investigation.

Sarawak tables largest budget ever
The state’s largest budget of RM15.8 bil, a 16% rise from last year’s RM13.6 bil, was tabled yesterday by Sarawak premier Abang Johari Openg. The budget aims to boost government spending to stimulate economic growth, particularly for low and middle-income Sarawakians. As for the budget breakdown, RM10.9 bil is allocated for ‘operating’ expenditures, with the remaining RM4.9 bil being reserved for ‘development’ spending. The budget fortunately is expected to turn produce a surplus - Sarawak projects a revenue of RM14.2 bil in 2025, and with a total ordinary expenditure of RM13.7 bil, creating a surplus of RM486 mil.

Some highlights:

• RM18.5 mil set aside to fund training and development initiatives to generate a high-performance culture in the state’s civil service sector, with executive leadership programmes for top management to cultivate critical thinking.

• A massive allocation of RM3.55 bil for housing projects beginning in 2025 to fix the critical shortage of government housing with an initial allocation of RM200 mil.

• The RM450 mil Sumbangan Keperluan Asas Sarawak was also introduced as part of the budget, a cash assistance program for the needy. ‘Sarawakians living in Sarawak’ with a household income of RM5,000 and below are set to receive RM800. Senior citizens without partners and children in the same income bracket will be entitled to RM400, while single persons with an income of less than RM2,500 are set to receive RM250.

• For education, Sarawakian tertiary students from lower-income groups are set to receive a one-off gratuity of RM1,200, amounting to RM30 mil for 25,000 students. Sarawak is also set to provide a PTPTN loan repayment discount of 30% for graduates who have settled at least 30% of their loan with the education fund. Next, the current book vouchers worth RM500 and free laptop initiatives are set to continue for next year, with state allocations of RM2 mil and RM30.5 mil respectively.

EPF growing steady with a 20% increase in 9M income year-on-year
EPF recorded a total investment income of RM57.57 bil from the January to September period this year, with RM48.02 bil coming from conventional savings and RM9.55 bil from Syariah savings. In Q3, EPF’s investment income totaled at RM19.67 bil, a RM5 bil increase from last year. EPF’s current investment stands at RM1.12 trillion as of September, with almost two-thirds of it being local. All this sounds like we can expect a higher dividend rate (2023: 5.5% conventional, 5.4% syariah)

Budget 2025 introduced an inter-generational wealth transfer via EPF, allowing parents to transfer part of their retirement savings directly to their children. Experts, such as Prof Emeritus Barjoyai Bardai from Universtiy Tun Abdul Razak, suggest that this scheme can provide financial support to children, helping them avoid burdens like student loans and mortgages.

Barjoyai emphasizes that this approach shifts the narrative of pension funds from individual security to ensuring the financial well-being of entire families. He suggests that families could begin planning as early as the birth of their children for their education to home ownership without relying on loans and racking up debt, setting a strong foundation for significant life milestones.

View the announcement

Shorts

1. J Satine project being investigated by developers
   Construction services firm TCS Group Holdings Bhd is investigating cracks at the J Satine mixed development project in Wangsa Maju. Managing director Tee Chai Seng stated that the company is cooperating fully with relevant authorities and that initial findings suggest the cracks were not caused by their work as they reiterate their compliance with health and safety standards. This investigation follows a stop-work order issued by Kuala Lumpur City Hall after complaints from nearby residents regarding an explosion noise at the site, which revealed cracks in shear walls, columns, and floors of upper units.

2. Dusuki Mokhtar named 11th Attorney General
   Effective November 12, Dusuki is set to replace Terrirudin Salleh who has been appointed as a Federal Court Judge. Mohd Dusuki has extensive experience in the legal field, having served for 31 years in various roles within the Attorney General’s Chambers. Mohd Dusuki, who holds a Bachelor’s Degree in Law from the International Islamic University Malaysia and a Master’s Degree from the University of Wollongong, was notably the lead prosecutor in the corruption trial of Zahid Hamidi in September 2023.

3. Corruption case involving politicians now highlighted to PM
   The whistleblower who allegedly has evidence of assemblypersons discussing bribes has sent a letter to PM Anwar Ibrahim requesting intervention, and confirming protection for themself under the Whistleblower Protection Act before filing an official report with the MACC. The whistleblower, according to their legal representation, is ready to hand over evidence consisting of audio snippets, HD audio clips, and Whatsapp conversation screenshots. Listen to the 17-second audio recording here.

4. AROUND THE WORLD 🌎

What talks, Israel?

Progress on talks
Israel reported progress in ceasefire talks with Lebanon (but not Gaza), after previous rounds of fruitless talks led by the US. According to the nation’s new foreign minister, Gideon Saar, the main challenge of any ceasefire deal is enforcement of the terms agreed upon. Saar also indicated that Russia could play a part in the ceasefire by stopping Hezbollah from rearming through Syria.

What proposals?
However, Hezbollah has reported that neither the organisation nor Lebanon has received any official proposals on a truce for Lebanon, with Hezbollah’s media head, Mohammad Afif, saying that the parties involved are still in the phase of presenting initial ideas, as opposed to the reports of Israeli newspapers, which reported “substantial progress” and an “exchange of drafts” between Israel and Lebanon.

Is it over or not?
Saar was also reported as saying the war with Hezbollah was not yet over, but this was contradicted by Israel’s former foreign minister and new defence minister, Israel Katz. Katz said Israel has defeated Hezbollah, with the elimination of Hezbollah leader Hassan Nasrallah the crowning achievement of the victory. Katz also said Israel needs to “continue to put pressure” to bring about the “fruits of that victory”, adding that Israel has learned its lesson and will not be meddling in internal Lebanese politics.

Netanyahu pulled the trigger
The spokesperson of the Israeli prime minister’s office has confirmed that Netanyahu was the one who approved the pager attacks, after initial refusals to answer to any allegations. Israeli media reported Netanyahu claimed responsibility for the attack during a cabinet meeting, with the PM telling the other ministers he went ahead with the operation despite opposition from senior defence officials and political figures. The attack, along with a follow-up that used weaponised walkie-talkies, killed 39 and injured over 3,400.

Russia-Ukraine Conflict: The Trump Effect

The phone-slinging president-elect
President-elect Trump, who will be moving into the White House in January next year, was reported to have told Russian President Putin not to escalate the war in Ukraine during a phone call, a day after he spoke to Ukrainian President Zelenskyy. Zelenskyy revealed in a post on X that the two agreed to “maintain close dialogue and advance our cooperation”. One of Trump’s campaign promises was to end the Ukraine conflict in one day. The war has been ongoing for more than 980 days.

Kremlin says “no call”
However, the Kremlin dismissed the reports that Trump had spoken to Putin, calling the reports “pure fiction”, despite sources reporting the call took place. The Kremlin spokesperson also said there were no concrete plans yet for Putin to contact Trump. When Trump’s communications director was queried, he said that they did not comment on private calls between Trump and other world leaders.

Ukraine seeks strong negotiation position
Kyiv is working to put itself in the best position to negotiate an end to the war, especially with Trump about to be president and bringing prospects of war-ending talks. Ukrainian officials acknowledge that there is also a possibility of less aid from the US and that the chance of a NATO invitation is lower.

A Pentagon purge?
As an aside, the halls of the Pentagon carry the question of just how far Trump will go in his campaign vow to “purge the military of woke generals”, especially with how Trump’s military leaders and defence secretaries were among his fiercest critics during his first term. Both former and current US officials believe Trump will prioritise loyalty in his second term and that he will find and get rid of military officers and career civil servants he sees as disloyal.

In Japan

• PM Ishiba survives parliament vote

  Japanese lawmakers voted to keep PM Shigeru Ishiba on as leader, following snap elections that saw his coalition losing its parliamentary majority. Now, Ishiba leads a minority government, a fragile position that sees him beholden to small opposition parties to pass his policy agenda. He also takes on this weakened position as Trump returns as president, bringing with him a protectionist policy, even as domestic pressure rises for him to rein in the cost of living.

• Ishiba unveils USD65 bil plan to build up domestic chips

  In a bid to boost the local chip and AI industries, Ishiba unveiled a plan that will provide USD65 bil in subsidies and other financial incentives. The plan will take effect until the 2030 fiscal year, should it pass the next parliament session. The economic impact of the plan is expected to be around USD1 tril. However, Ishiba did not reveal how the plan will be financed but confirmed that the government will not issue deficit-covering bonds to fund the plan.

Shorts

1. Archbishop of Canterbury apologises for CoE coverup of abuse

   The religious leader apologised to the abuse victims of British barrister John Smyth for the part the Church of England played in covering up for the serial abuser for decades, affecting more than 130 children in the UK. The archbishop himself was unaware of any abuse before 2013. The conclusion that Smyth’s actions were classified as abuse follows a review commissioned by the Archbishops’ Council a year after Smyth died at age 75 of a heart attack.

2. Philippines hit by fourth typhoon in less than a month

   Typhoon Toraji was the fourth typhoon to make landfall in the Philippines in less than a month, following Severe Tropical Storm Trami, Super Typhoon Kong-rey, and Typhoon Yinxing. 2,500 villages were ordered to evacuate, and nearly 700 passengers were stranded at ports. Unfortunately, Tropical Storm Man-yi, currently east of Guam, could threaten the Philippines next week.

3. Dollmaker Mattel "deeply regrets" porn site misprint

   The toy manufacturer shipped dolls inspired by the new Wicked movie with a misprint on the packaging, leading to a statement apologising for the “unfortunate error”. The error in question? The box was supposed to have an address leading to the movie’s website but instead had a web address for an adult-oriented website. Mattel advised customers who already bought the product to discard the packaging. We are still trying to figure out which site. 

5. FOR YOUR EYES 📺

1. A couple’s breathtaking pre-wedding shoot 4,095 m above sea level on Mont Kinabalu. View more photos here.

2. Tom Cruise is back in Mission Impossible: The Final Reckoning — teaser trailer below.