☕️ PETRONAS sponsors RM320 mil to 600 students

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

Underemployment among Malaysian graduates has surged to concerning levels, with 26.9% of degree holders underemployed in 2022, compared to just 8.6% in 2010, according to the World Bank’s October Malaysian Economic Monitor report. Read: What is underemployment?

This trend is especially pronounced in certain fields: general programmes and services see some of the highest skills-related underemployment (SRU) rates at 74.5% and 58.7% respectively, though these sectors represent only a small portion of graduates. Fields such as health, social services, and education have the lowest SRU rates, with 13.9% and 8.0% respectively.

The problem is most acute among younger workers, with 63.5% of those aged 15-24 underemployed. The underlying issue appears to be a lack of high-skilled job creation, with only 48,700 high-skilled jobs available in 2023 for the 287,000 graduates entering the workforce. This job supply has remained stagnant since 2018, while the number of graduates continue to rise above 250,000 annually. Is the gig economy driving this behaviour or is it because high-skill jobs aren’t paying on par?

Will more data centre investments* generate the spillover effects for more high-skilled jobs? The government considers these as ‘digital’ investments. But really, it’s just construction and real estate.

3. IN MALAYSIA 🇲🇾

Sponsorship of RM320 mil to 600 students by PETRONAS
PETRONAS through its Powering Knowledge initiative has announced the sponsorship of RM320 mil to 600 excellent SPM 2023 students across Malaysia. After going through a competitive pool of 5,847 applicants, the 600 chosen students were evaluated not only on an academic basis but also on their leadership potential and involvement in co-curricular activities. That’s an average of RM530k per scholar.

These students will be able to pursue their education in a wide range of engineering, digital, and business disciplines at both local and international high-ranking universities. PETRONAS has invested RM3.81 bil in education sponsorship since 1975. In return, PETRONAS hopes the scholars will contribute back to the nation’s growth and progress as well as uphold PETRONAS’s legacy.

“Unlawful conversion to Islam” lawsuit reinstated
The Court of Appeal has granted permission to a group of 137 Orang Asli to revive their legal challenge against a mass conversion to Islam that occurred in their community 30 years ago. The plaintiffs only learnt the word “Islam” was stated on their identity cards several years later, after the villagers learnt Bahasa Malaysia. Previously, the lawsuit was struck out by the Kuantan High Court last year on the application of the defendants to annul the suit. The High Court also ruled that the plaintiffs had submitted their affidavit after the deadline.

However, Justice M. Nantha Balan, one of the 3 judges, has admitted the affidavit into evidence. He added that the High Court should not have rejected the plaintiff’s request for an extension of time in the face of justice. The Orang Asli group had made some serious allegations and some may be false and could be struck out. He also stated that the federal and state authorities are free to submit their affidavit-in-reply by November 11, with case management set for the day after.

Two naval vessels from China said hello to Penang
The Penang State Government has cleared the air by clarifying that the 2 training ships with students from the Naval University of China who visited the Port of Penang did follow proper channels and protocol. The ships were anchored for 3 days before leaving for Chittagong, Bangladesh. The Resident Officer of the Royal Malaysian Navy in Penang and leaders from the state government were also present during the visit by the Chinese People’s Liberation Army (PLA).

The students from China were here for a student-to-student relationship with Chung Ling Secondary School. They also had a chance to visit several places in Penang and interact with the locals. The State Tourism and Creative Economy Committee Chairman urged the public to not make any speculations regarding their visit and disregarded rumours on social platforms. Instead, he saw this visit from a positive perspective and the relationship between Malaysia and China is healthy and maintained.

Business

1. Port operator MMC Port Holdings Sdn Bhd (part of tycoon Syed Mokhtar Albukhary’s empire) is working with its advisors on an initial public offering (IPO) in Kuala Lumpur, according to sources. MMC Port runs seven ports along the Straits of Malacca and three cruise terminals. An insider shared that the company’s first share sale may take place in the second half of 2025 and is said to possibly raise about RM7 bil which would make it the biggest in Malaysia in over a decade, valuing the company at RM24 bil. Some other mega IPOs: Petronas Chemicals Group Bhd (RM15 bil raised in 2010), FGV Holdings Bhd (2012) and Maxis Bhd (2009) both raising over RM10 bil each respectively.

2. Berjaya Food Bhd has entered into a master franchise agreement, granting exclusive rights to the company to operate Paris Baguette stores in Brunei and Thailand. The company planned to open an unspecified number of stores in both markets to establish a stronger impression and capitalise on the growing cafe culture. The current portfolio of Berjaya Food also includes Starbucks Coffee which has been facing a public boycott. The company is currently exploring new opportunities to bring additional international brands into its portfolio for global markets as part of a wider expansion strategy. Fancy way to say they just want to recover from their losses.

Shorts

1. Egg subsidy costs the government up to RM100 mil per month
   The Agriculture and Food Security Minister, Datuk Seri Mohamad Sabu said ending the egg subsidy could save up to RM100 mil a month which can be channelled to develop other important aspects in agro-food sectors and a proposal has been submitted to the Finance Ministry and the Domestic Trade and Cost of Living Ministry. Since February 2022, more than RM3 bil has been spent on chicken and chicken eggs subsidies. However, the subsidy for chicken was terminated on Nov 1, 2023, causing the country to save up to RM100 mil a month. This move did receive its backlash from the public but it undeniably made the supply and price of chicken more stable. Now, does ending egg subsidy bring the same effect or worse? Possibly more vegans in Malaysia?

2. No more new coal plants in Malaysia moving forward
   Deputy Prime Minister Fadillah Yusof said no new coal plants will be established and coal-fired generation will be gradually phased out. Malaysia will be transitioning from fossil fuels to more sustainable energy alternatives as an effort towards the nation’s commitment to a lower carbon energy system. He also added that Malaysia’s renewable capacity stands at 28% and the government is aiming to achieve 70% by 2050. Malaysia is poised to assume the ASEAN chairmanship in 2025, opening up a door for the country to lead the regions in advancing cross-border renewable energy trade. Malaysia is seizing the opportunity to bring in more foreign investments that will elevate the country’s green economy forward.
   

4. AROUND THE WORLD 🌎

Going back on your word, Hezbollah?
Officials from the Lebanon-based group are no longer asking for a truce in Gaza as a condition for a ceasefire in Lebanon, though deputy leader Naim Qassem promised that the group will continue to stand with Hamas and Palestinians. A source reported that the change in position was due to a number of pressures, such as opposition from several Lebanese politicos as well as Israel’s intensifying ground offensive.

This comes after Israeli PM Netanyahu warned that Lebanon could face destruction “like Gaza” while claiming that Israeli forces have taken out slain Hezbollah leader Hassan Nasrallah’s successor, Hashem Safieddine, and his “replacements”. Israeli Defence Minister Yoav Gallant also said that Safieddine was “probably eliminated” in his announcement. 

Meanwhile, back in Gaza, high-level officials from Hamas and Fatah met in a new round of talks in Cairo to discuss post-war Gaza, the latest in a series of attempts to bridge the gap between the two factions. A source said that should the two not agree on a unity government, they might try to form a committee to run Gaza and help manage its border crossings, though no details have been made clear.

Watergate veteran's new book alleges close Putin-Trump friendship
Watergate investigative journalist Bob Woodward’s new book alleges presidential hopeful Trump kept up his friendship with Russian president Putin after the end of his time in office, making for an “improperly close relationship”. The book also alleges that Trump even provided Putin with COVID-19 testing machines for his personal use as the pandemic was ramping up in mid-2020 when the machines were in short supply. Trump and his campaign have responded, with Trump himself saying Woodward is a bad storyteller, while his campaign communications director said that the book was “the work of a truly demented and deranged man”. Just a reminder, Woodward took down President Richard Nixon with his reporting on the Watergate scandal.

Meanwhile, the UK has sanctioned Russian troops it said were involved in using chemical weapons and accused Russia of “cruel and inhumane tactics”. UK Foreign Minister David Lammy said the UK would not sit idle while “Putin and his mafia state” violate international law, including the Chemical Weapons Convention.

Dollars and Tech Cents

1. Antitrust prosecutors looking to break up Google

   The US Department of Justice has suggested remedies that could force Google to divest parts of its business, such as its Chrome browser and Android operating system, which the prosecution says is used to maintain an illegal monopoly in online search. The remedies will also look to prevent Google from reaching such dominance again while preventing said dominance from extending to the AI sector. This follows a US judge ruling that Google has built an illegal monopoly. If this break-up happens, it will set off a series of mega tech break-ups, especially with Meta, which has a stranglehold on social media (for the uninitiated, Meta owns Facebook, Instagram and WhatsApp). But hey, at least Google DeepMind CEO Demis Hassabis shared in the Nobel Prize for Chemistry!

2. HBO documentary thinks Canadian software dev is Bitcoin creator

   The documentary, titled “Money Electric: The Bitcoin Mystery”, used circumstantial evidence to guess that Canadian software developer Peter Todd was Bitcoin creator Satoshi Nakamoto. He called the suggestion “ludicrous”, denying that he is the cryptocurrency’s creator. Crypto publication Cointelegraph pointed out several inconsistencies in the documentary as well, with discrepancies in the timeline, mischaracterisation of a Bitcoin feature, and misinterpretation of information. Addressed believed to be owned by Nakamoto is worth around USD69 bil, making him/her/they around the 20th richest person in the world.

Shorts:

1. OpenAI hiring for new office in Singapore

   The ChatGPT parent’s Singapore branch marks its second Asian office and is meant to serve as a hub for OpenAI to work with partners, governments, and customers across the wider region. The tech firm is also partnering with AI Singapore, a state initiative bringing together local research groups. Got to reflect real hard on our Numbers at a Glance section today.

2. Biden announces new law: no more lead pipes in ten years

   The US government finalised the landmark rule requiring water utilities to replace every lead pipe in the country within 10 years, addressing a major threat to its population. The rule comes with a strict limit on lead in drinking water since federal standards were set decades ago and supplants a previous rule with a looser standard set by former President Trump’s administration.

3. Honda recalls 1.7 mil vehicles over steering issue

   The automaker is recalling 1.7 mil cars and SUVs in the US due to an issue with a possibly incorrectly-manufactured steering gearbox assembly, which increases the risk of a crash. The recall includes models from 2022 to 2025, with Honda stating it has received 10,328 warranty claims related to the issue since 2021.

5. FOR YOUR EYES 📺

1. The “P90/P10 ratio” is a way to measure inequality by comparing these two numbers — blue points represent the monthly income after taxes for a person who is among the top 10% richest in their country. Red points represent the income for a person who is among the bottom 10% poorest. In Norway, where inequality is low, this ratio is about 3. This means that someone in the richest 10% earns $5,490 per month, which is a bit more than three times what someone in the poorest 10% earns, which is $1,760 per month.

2. How did Grab become a behemoth in the Southeast Asia Region? Listen to the man himself, Anthony Tan, in his interview with CNBC.

3. Hurricane Milton is slamming into Florida, US. An insane CGI here showing the scale of the flood it will cause. If you have no rasa to the below, check out this timelapse footage of a 15-foot storm surge.