☕️ Anwar absolves UTAR from RM83 mil in unpaid taxes and penalties

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

122,000 Year One pupils across Malaysia have been identified as lacking essential 3M skills—reading, writing, and counting—during this academic session. Education Minister Fadhlina Sidek pointed to learning loss during the COVID-19 pandemic, poverty, and the specific needs of special children as contributing factors to this issue. Fret not, Education Minister Fadhlina Sidek said this figure will improve through interventions at both the state and federal levels.

The World Bank Group has upgraded Malaysia’s economic growth forecast for 2024 to 4.9%, an increase from its initial 4.3% forecast set in April. Apurva Sanghi, the lead economist for Malaysia, highlighted that both domestic and external factors support this positive revision, as the global economy is performing better than anticipated six months ago. Domestically, rising political stability, positive economic momentum, and a conducive policy environment that attracts and mobilises investments have contributed to the upgraded growth projection.

480 nuclear reactors worth of renewable energy (3,300 terawatt-hours) is stuck waiting for grid connections in the US and Europe due to inadequate infrastructure. Despite a 64% increase in global renewable capacity last year, with 560 gigawatts added, many solar and wind projects remain unconnected to power grids. These projects are often located in areas lacking thermal power plants, and grid expansion is failing to keep up with renewable growth.

3. IN MALAYSIA 🇲🇾

Anwar absolves Universiti Tunku Abdul Rahman (UTAR) from RM83 mil in unpaid taxes and penalties
PM cum Finance Minister Anwar Ibrahim has decided to absolve UTAR from a dispute involving RM83 mil in unpaid taxes and penalties. Sources indicate that the Inland Revenue Board (IRB) will write off the amount, and Finance Ministry secretary-general Johan Mahmood Merican has been instructed to issue a letter to the UTAR Education Foundation (UTAREF) confirming this decision.

The controversy escalated when Deputy Finance Minister Lim Hui Ying clarified that UTAR and UTAREF are treated as separate entities for tax purposes- UTAR was never granted tax-exempt status, unlike UTAREF, which manages the university.

MCA president Wee Ka Siong argued for their recognition as a single entity, emphasizing that both have complied with legal requirements for over two decades. The IRB had recently audited UTAREF's accounts, prompting the foundation to seek intervention from the PM.

Business

• IKEA Malaysia reports lower year-on-year income due to market difficulties

  IKEA Malaysia reported a turnover of RM1.46 bil for its financial year 2024, ending Aug 31, marking a decline of 4.2% year-on-year. The parent company, Ikano Retail, however, experienced a modest increase of 1.3% from the previous year in total turnover of RM5.18 bil for the same fiscal year. Performance varied across its markets but saw Singapore and Thailand in the green: Singapore generated RM1.8 bil (+0.6%), Thailand RM1.35 bil (+3.9%), while Malaysia and the Philippines saw declines of 4.2% and 2%, respectively.

  Ikano Retail’s portfolio also includes IPC, MyTOWN, Johor’s Toppen, and Penang’s Klippa. CEO Christian Roejkjaer acknowledged current retail challenges due to inflation and rising costs but emphasized the company's commitment to providing affordable home furnishing solutions. IKEA Malaysia has reduced prices on over 2,000 items and introduced tiered pricing for delivery services.

  Despite mixed market performances, local IKEA stores attracted 36.6 million visits this year.

  Fun fact: the most popular IKEA items for Malaysians are storage products, with a chest drawer and their bookcase as the top 2 selling items.

• Potential takeover brewing at Public Bank

  Public Bank Bhd is reportedly exploring a potential acquisition, likely involving LPI Capital Bhd according to industry sources. This speculation follows the passing of Public Bank founder, Teh Hong Piow, whose estate holds significant stakes in both companies. Consolidated Teh Holdings, the private investment vehicle of the late founder, owns 42.74% of LPI Capital which appears to be central to this potential deal.

  Public Bank is set to hold a press conference on the morning of Oct 11, where CEO Tay Ah Lek is set for a “major announcement”, that reportedly involves “a few key stakeholders”. Public Bank has been doing well financially though, as they previously reported a pre-tax profit of RM4.41 bil for the first half of 2024.

Shorts

1. Another crocodile sighting in Melaka; unfortunately, not in the state zoo

   We just heard of a crocodile spotted in Sungai Melaka last May. Now, another large crocodile, approximately three meters long, has been filmed attacking a monitor lizard near Kampung Morten (check out the action here). Kota Laksamana assemblyman Low Chee Leong reported that it has been sighted multiple times this year despite two unsuccessful attempts by wildlife rangers from Perhilitan to trap the crocodile, raising safety concerns for the public.

2. Unscheduled water cut in KL due to burst pipe

   A total of 29 areas in Kuala Lumpur are facing unscheduled water supply disruptions from 6am on Oct 8 due to emergency repairs on a burst pipe at Pasar Seni Hub. The repairs are expected to be completed by 1am on Oct 9, with water distribution resuming in stages once the system stabilises. In the meantime, Air Selangor will dispatch water tankers to affected areas, prioritising critical facilities such as hospitals and clinics during this disruption.

   Find affected areas according to Air Selangor here.

3. Three arrested for allegedly abusing 6-year-old in PD

   Three men, aged 32 to 36, have been detained in Port Dickson for allegedly abusing a six-year-old boy. The suspects were arrested on Oct 3 after a report was filed by a 67-year-old woman who had previously cared for the victim. Said victim reportedly lost his father at a young age and was abandoned by his mother. When the elderly woman couldn't contact the boy, she sent her son to check up on him. He discovered the boy injured and crying, left naked on the floor of one of the suspect's homes.

4. Mamak restaurant in Pahang caught in video using broom to clean pot

   The Lipis District Council is investigating a mamak restaurant after a viral video showed an employee using a broom to clean pots on Oct 5. Council chairman Hafizi Ibrahim stated that action will be taken if misconduct is confirmed, and the Health Ministry has ordered the restaurant to close for two weeks following a surprise inspection. Watch here.

5. Anwar ranked 15th most influential Muslim

   PM Anwar ranked 15th on Jordan-based Royal Islamic Strategic Studies Center “The World’s 500 Most Influential Muslims” list today. The Center highlighted Anwar’s political challenges in his ascension to his prime minister post, besides his past contributions to academia and his role in co-founding the International Institute of Islamic Thought (IIIT) in the US. Jordan’s King Abdullah II ranks first on the list, followed by scholar Sheikh Al-Habib Umar Hafiz. View list here.

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4. AROUND THE WORLD 🌎

Cost of War report shows US has spent close to RM100 bil on Israel
A report published by Brown University’s Watson Institute has indicated that the US has spent a whopping USD22.76 bil (RM97.56 bil) in support of Israel’s war on Gaza and operations against the Houthis in Yemen. This is not surprising, judging from President Biden’s firm backing of the Israeli war effort and his refusal to put conditions on US military aid. Last week, he even admitted that “no administration has helped Israel more than I have”.

Here are more things reported by Brown researchers:

1. USD17.9 bil in military aid sent to Israel since the war in Gaza started a year ago is the highest annual total in history.

2. Funding is a mix of military financing, weapons sales, and transfers from US weapons stockpiles.

3. A large part of the arsenal is munitions, including artillery shells and 2,000-pound (907kg) bombs.

4. Israel, the US’ strongest ally in the Middle East, is the biggest recipient of US military aid in history, taking in USD251.2 bil in inflation-adjusted dollars since 1959.

5. US has also spent USD4.86 bil on operations in Yemen and elsewhere in the Middle East

Read the full Cost of War report here.

Meanwhile, the White House chose to dodge answering questions from Fox News regarding its immediate funding to the Lebanon war without its Congress coming back, and why they can’t do the same for Hurricane Helene victims in North Carolina.

Man charged over brutal rape and murder of a doctor in Kolkata hospital
A suspect named Sanjay Roy has been charged in the violent case of a doctor’s rape and murder in a Kolkata hospital last August. The Central Bureau of Investigation charged him after investigations through interviews and CCTV footage. The brutality of the case prompted widespread anger and protests over the threat of sexual violence faced by women in India.

What’s more sickening were the allegations that senior hospital staff attempted to cover up the incident by making the victim’s family wait several hours before allowing them to see her body, and taking up to 14 hours to report it to the police. The parents of the victim also alleged that the police had attempted to cover up the crime and bribe them to stay quiet.

Kolkata junior doctors went on strike, demanding that the state government do more to protect their safety in hospitals and ensure justice for the victims. It also prompted a wider discussion around the issue of women’s safety in India, which has remained a longstanding concern despite numerous high-profile rapes and killings of women. The most recent data from 2022 shows that almost 450,000 crimes against women were reported, up 4% on the previous year, with more than 7% of the alleged crimes being rape-related.

DNA analysis finally unmasks Jack the Ripper 
Jack the Ripper researcher Russell Edwards, who has been studying the serial killer’s case for close to 30 years, has finally put a face to the name using DNA evidence analysis on the shawl of one of his victims.

Nearly 120 years later, Edwards had found the alleged shawl on auction in Suffolk, UK and bought it for his research, as the shawl has remarkably preserved what appeared to be blood and semen stains.

Edwards then conducted a lengthy series of DNA tests, with help of distant relatives of the victim and suspect. The analysis eventually traced Jack the Ripper as Aaron Kosminski, a Jewish immigrant from Poland who was one of the key suspects at the time of the horrific Whitechapel murders.

Jack the Ripper butchered and murdered at least five women in the Whitechapel area of east London from August to November 1888. His victims were often brutally killed and their bodies mutilated, but he was never arrested for his crimes. Further research by Edwards has since uncovered how he believes the serial killer evaded justice due to his brother's involvement in freemasonry, which could be the motivation for the victims' mutilation.

Shorts

1. Donald Trump said thousands of immigrants in US are murderers spreading ‘bad genes’

   The US elections are getting closer, and Trump continues to play his anti-immigration card. In a radio interview with conservative commentator Hugh Hewitt on Monday, the presidential contender said that 13,000 “murderers” had crossed through the US’ “open borders” and were “happily living” in the country, and claiming there are thousands of immigrants with murder convictions spreading “bad genes” in the US. Trump, who is neck-and-neck with Kamala Harris in the upcoming presidential election, has zeroed in on immigration while on the campaign trail, demonising both undocumented migrants and people who have come into the country legally.

2. US judge orders Google to allow rival Android apps on Google Play

   Google has been ordered to allow Android apps made by rival technology to be available on Google Play app store for 3 years starting next month. The ruling was among several remedies ordered by a US judge in a case brought against Google by Epic Games, the maker of the hit video game Fortnite. Besides that, the ruling also called for Google to make its catalogue of apps available to competing app stores. Juries favourable to Epic said that Google stifled competitors by controlling the distribution of apps and payments on Android phones. The order is the latest legal blow suffered by Google in recent years on competition grounds.

3. A carpenter made USD306 mil (RM1.3 bil) from an investment of USD65,000 (RM278,000) of Tesla stock, and then lost it all

   Christopher DeVocht of Canada once traded Tesla stock and options during the pandemic, when a record amount of stimulus helped the stocks soar. At the end of 2019, he had about USD65,000 with the Royal Bank of Canada's (RBC) brokerage division. It eventually grew to an astounding USD306 mil by November 2021. However, DeVocht and his professional advisors didn't cash out and lost everything to a bear market in 2022, leading to staggering losses. DeVocht has filed a lawsuit against RBC and Grant Thornton LLP, claiming negligence and inadequate advice. Apparently, RBC thought DeVocht was a sophisticated investor, but failed to appreciate his limited knowledge in investments, financial planning and tax.

5. FOR YOUR EYES 📺

1. “In truth, it may matter far less that we are heard than we have a chance to speak.”

2. Interestingly, the best country in the world, Switzerland, has one of the lowest homeownership rates in Europe.