☕️ Most of us have been buying fake imported rice

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

RM10.853 bil in arrears – Borrowers owed the National Higher Education Fund Corp (PTPTN) nearly RM11 bil by the end of 2023, the highest figure in a decade, according to the Auditor General's Report. Despite repayments of RM3.553 bil last year, this covered just under one-third of the outstanding arrears, with some unpaid balances stretching back over 12 years. The report highlighted the need for PTPTN to overhaul its loan repayment collection mechanisms to improve recovery rates and reduce reliance on loans from financial institutions, which totaled RM41.13 bil. It also called for a review of repayment incentives, such as discounts and exemptions for first-class graduates. As of 2023, PTPTN’s outstanding education loans stood at a staggering RM43.68 bil, underscoring the growing financial strain on the fund.

38 years old – The median age of first-time homebuyers has hit a record high (in the US), reflecting the growing financial challenges of entering the housing market. According to the National Association of REALTORS annual survey, this marks a notable increase from 35 years old last year and a significant jump from the 1980s, when first-time buyers were typically in their late 20s. The trend extends to repeat buyers, with the median age climbing to 56 years old, up from 49 last year, while the typical repeat buyer now stands at 61 years old, compared to 58 in the previous year.

GBP4.8 mil (RM26.89 mil) – In an audacious predawn raid in September 2019, a one-of-a-kind 18-carat gold toilet was stolen from Blenheim Palace, the birthplace of Winston Churchill. The satirical artwork, titled “America” by Maurizio Cattelan, weighed over 215 pounds and was insured for GBP4.8 mil, far exceeding its gold value of GBP2.8 mil at the time. Prosecutors described the theft as a meticulously planned operation, completed in under five minutes. While the toilet has never been recovered, it is believed to have been dismantled and sold. Three men are on trial, with one accused of stealing the piece and the others allegedly involved in selling it.

3. IN MALAYSIA 🇲🇾

Up to half of imported rice brands diluted with local rice
The Malaysian Agriculture Research and Development Institute (Mardi) has confirmed previous rumours and suspicions that certain brands or bags of white rice marketed as imported rice are diluted with locally-grown product. Local supermarkets often sell imported rice at a higher rate than the local variety.

A minimum of 45%, and up to 50% of the samples tested showed clear signs of being contaminated with local white rice. The bags within this percentage contained 30% to 70% local white rice instead of the marketed imported product.

Mardi, the best agriculture research agency in the nation, cited the data from a series of tests performed on over 5,000 samples from 55 bags sourced from rice factories throughout the country. The samples were taken from between Sept 2023 to March 2024, submitted by enforcement personnel from the Agriculture and Food Security Ministry’s paddy and rice control section and the Domestic Trade and Cost of Living Ministry.

Illegal cigarette sales dropped by 8.2% since 2020
For the fourth consecutive year, the sale of illicit cigarettes has fallen. From 55.6% in 2023, the current percentage is at 55%. Since its highest-ever peak in 2020, which sat at 63.8%, JT International Bhd (JTI Malaysia) expects the percentage of smuggled tobacco product sales to continue to decline as the year progresses, with one of the things to look out for is how the govt will create a moderate and reasonable increase in price of tobacco products after the end of the tobacco tax moratorium.

Meanwhile, a rise in illicit cigarettes bearing fake stamps has been seen throughout the nation, though the numbers continue to drop. Furthermore, sales of legal cigarettes have also been noticed to have been dropping, as smokers pivot away from traditional tobacco products in lieu of smoke-free alternatives, such as vapes.

Pneumonia and heart disease among the top 10 most claimed medical insurance issues
The Finance Ministry has revealed the top ten illnesses and issues most claimed for medical insurance nationwide, and unsurprisingly, it includes pneumonia, influenza and fever. The ministry went on to detail that due to a lack of transparency in varying treatment costs, a more detailed study would be considered necessary to further understand the charge differences.

The full list of ten most claimed diseases is: pneumonia, spine-related issues, digestive system problems, heart diseases, joint and ligament injuries such as dislocations and sprains, acute appendicitis, viral infections and influenza, other respiratory system problems such as bronchitis and upper respiratory infections, ENT-related diseases and fever.

Business

• Talks of a new shareholder for Axiata’s Boost fintech arm
  Axiata Group Bhd has a potential new shareholder for its fintech arm, Boost Holdings Sdn Bhd. Unable to disclose the name of the investor due to the deal currently undergoing regulatory approval, Boost still expects the investor in the group before the end of the second quarter of 2025. This information was provided by group chief executive officer and managing director Vivek Sood on Wednesday at an earnings briefing.
  Boost is currently 77.76% owned by Axiata, while Great Eastern Holdings Ltd’s wholly-owned unit Great Eastern Digital Pte Ltd holds a 19.89% stake, with Mitsui & Co Ltd holding 2.33% equity interest.

  In 2020, Axiata sold the 21.875% stake in Boost to Great Eastern for USD70 mil, valuing the firm at USD320 mil (RM1.42 bil).

• Ikhlas Capital invests RM74 mil into Sarawak-based PMG Healthcare
  Ikhlas Capital Singapore Pte Ltd, a private equity firm from Singapore, is reportedly investing RM74 mil in Sarawak-based PMG Healthcare. This was in favour of a significant minority stake in PMG Healthcare, which was established in 2012. It now operates 152 pharmacies, 28 medical clinics, and eight dental clinics throughout the nation. The valuation of the deal is not known, but ‘significant minority’ is often considered between 20-30%, potentially implying a valuation of between RM246.7 mil to RM370 mil.
  One of the Ikhlas Capital founders is Nazir Razak, the brother of incarcerated Najib Razak and former CEO of CIMB.

4. AROUND THE WORLD 🌎

The Art of the Mineral Deal

US-Ukraine preliminary deal reached
The deal involves Ukraine handing over revenue from some of its mineral resources to the US, with Ukrainian President Zelenskyy stressing that the deal does not label Ukraine as a debtor (I am sure Americans will view it otherwise after all the funding to fight against Russia). He also shared that this is part of a larger agreement with the US, and suggested that the mineral deal could be a path to future security guarantees. US President Trump calls the agreement a “very big deal”, adding that Zelenskyy’s trip to Washington on Friday was to sign the deal. This also comes after Russian President Putin revealed Russia was open to a minerals deal with the US.

Security agreements? Where?
While the deal has the US expressing support for Ukraine’s efforts to secure security guarantees, the US had not actually offered any security pledges of its own. There was also no sign of a continued flow of weapons even as the deal says that the US wants Ukraine to be “free, sovereign, and secure”. Still, Zelenskyy believes the agreement exposes Trump to the conflict as the US will now have assets in Ukraine, which may prompt him to offer security guarantees.

No European peacekeepers, says Russia
On the Russian side of things, Moscow has stated that it could not consider “any options” for European peacekeepers being sent to Ukraine, believing that such a move would only fuel the conflict and make it harder to de-escalate. Moscow also referred to Trump’s statement that the deployment of peacekeeping forces requires the consent of both sides. Moscow also denied anyone approaching Moscow to ask about such a deployment.

The US elsewhere

Syrian aid delayed thanks to US sanctions
Sources revealed that Qatar was holding off sending Syria the funds it needs to increase public sector salaries due to the US ally being uncertain over whether the transfers would breach US sanctions. While former president Biden’s administration had issued a sanctions exemption so Syria’s government could receive transactions for six months, Qatar does not see this as enough to cover the payments it would need to make to finance the salary increase. The exemption also does not lift sanctions, according to the US Treasury.

Trump still holding to Riviera dream?
A post made by the US president has drawn backlash from the public, even on his own social media platform Truth Social. The post, with the caption “Gaza 2025… what’s next?”, was a video depicting what Gaza would look like if Trump were to swoop in and proceed with his “Riviera of the Middle East” plan, which involves the displacement of some two million people. The AI-generated video features such sights as Elon Musk walking amid a backdrop of money falling from the sky, a dictator-style statue of Trump, and a topless Israeli PM.
Honestly, done in poor taste. You can check out the video here.

USD5 mil (RM22.14 mil) gold card Trump’s plan to eliminate debt
The US president plans to replace the “EB-5” immigrant investor visa programme, which grants “green cards” to foreigners promising to invest in the US, with the “Trump gold card” programme, with each card to cost USD5 mil. The card would provide green card privileges as well as become a route to American citizenship. Trump believes that selling 10 million cards, which would provide a revenue of USD50 tril, would eliminate national debt and push taxes “down to nothing”. He also said that Russian oligarchs would be able to buy the cards, adding that he knows “some Russian oligarchs that are very nice people”.

Boardroom announcements

• Baidu buys live-streaming unit in push for digital video
  The tech giant acquired JOYY’s China live-streaming business, YY Live, in a USD2.1 bil (RM9.3 bil) deal, reviving an attempt that failed a year ago. Baidu is doubling down on the fast-growing digital video market, with the move also helping to diversify the search engine firm’s revenue stream and compete better with online entertainment rivals. Baidu also frees up USD1.6 bil that was locked away in escrow accounts as part of the failed deal, which could aid in its push to expand its presence in AI and cloud.

• Singapore’s CDL chairman accuses son of attempted coup 
  City Developments Ltd (CDL), the largest listed property developer in the city-state with a market value of SGD4.6 bil, saw boardroom turmoil after the accusation was made. Chairman Kwek Lee Beng, 84, is now looking to dismiss his son, Sherman Kwek, from his role as CEO, alleging “serious lapses of corporate governance”. However, the firing was prevented due to what the chairman says is his son’s consolidated control of the company’s board of directors. Sherman Kwek issued a statement that he and a majority of the board were “incredibly disappointed” over the chairman’s extreme actions, with the firm confirming he will remain CEO until there is a “board resolution to change company leadership”. The company saw a 37% plunge in annual profits to USD151 mil (RM668.78 mil) for FY2024. Fun little morsel, Chairman Kwek is actually a cousin to Quek Leng Chan, chairman of Hong Leong Group in Malaysia.

• China’s CICC, Galaxy securities to merge into USD193 bil (RM854.8 bil) brokerage 
  The move, which will form the third-largest brokerage in China, also marks the second mega-merger in China’s USD1.6 tril securities industry in just a few months. According to sources, the deal will be done via a share swap, though no details have surfaced. CICC and Galaxy have both denied receiving information about the reported merger. This news also comes at a time when China is establishing large domestic investment banks that can compete with global banks such as Goldman Sachs and Morgan Stanley.

Shorts:

1. Hong Kong to axe 10,000 civil service jobs 
   The slashing, which will be done before 2027, is an effort to counter a rising deficit, working alongside a planned big push towards AI. The job cuts will be staggered to a 2% reduction in headcount per year, with public sector salaries for the year also frozen.

2. Planetary alignment this week in the UK
   Seven planets – Mercury, Venus, Mars, Jupiter, Saturn, Uranus, and Neptune – will be briefly visible in the UK’s evening sky over the next week in a phenomenon known as a “planetary parade” that will not be seen again until 2040. Best times to view this are just after sunset from Tuesday to Friday, with four of the planets – Mercury, Venus, Mars, and Jupiter – visible to the naked eye.

3. Trump wants Apple to end DEI policies 
   The president is pushing for Apple to be the next major US firm to drop its diversity, equity, and inclusion policies, calling them discriminatory and suggesting that the Department of Justice investigate if such policies violate the law. This comes after Apple’s shareholders voted in favour of the firm keeping those policies in place.
   Read: What is DEI and why is it dividing America

5. FOR YOUR EYES 📺

1. A satisfying collection of videos of people cheating death by a hair’s breadth

pohim06

View more on Instagram

2. Why women need to save more than men — view infographic by The Edge.