☕️ EPF 2024 dividends expected to be better vs 2023, says Finance Minister II

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

Worldwide, the share of people living in cities with over a million residents has risen from 15% six decades ago to 25% today, reflecting a clear trend toward urbanisation. People’s love for cities is evident in their choices, with metropolises like London and New York bursting at the seams and housing prices soaring as a result. Economists celebrate this shift, pointing to the benefits of “agglomeration”—the efficiencies gained when people live and work in close proximity. Cities enable governments and businesses to operate more effectively, from improving public transport to streamlining talent recruitment. Moreover, the density of like-minded individuals fosters innovation, as seen in London, which contributes 22% of Britain’s economic output despite housing just 15% of its population.

29 out of 63 nuclear reactors under construction worldwide are in China, according to the International Energy Agency (IEA). Globally, there are 420 reactors in operation, with generation levels projected to hit a record high in 2025. China’s nuclear generation capacity is set to surpass both the EU and the US by 2030. Well, nuclear power projects in Europe and the U.S. are eight years behind schedule on average, with construction costs more than doubling. Nuclear power’s share in advanced economies fell from 24% in 2001 to 17% in 2023.

1.4 bil international tourist arrivals were recorded worldwide in 2024, fully recovering from the COVID-19 pandemic, according to UN Tourism. This marked an 11% increase from the 1.3 bil arrivals in 2023, returning to 2019 levels. Growth is expected to continue in 2025, boosting socio-economic development.

3. IN MALAYSIA 🇲🇾

Tun M's family, the late Tun Daim and now former PM Ismail Sabri
A quiet weekend turned awry for former PM Ismail Sabri as he was rushed to the hospital after he collapsed at home on Saturday. According to his aide, the UMNO leader’s blood pressure was slightly elevated. But, why he suddenly suffered a spike in blood pressure? Some may say it is the bread and butter as you are growing older as Malaysians aged 30 to 79 years old have a higher prevalence of hypertension, compared to the global benchmark, at 41%. About 185,000 deaths were recorded in 2019 due to hypertension. However, the reason behind PM Ismail Sabri’s collapse may be rooted in non-medical causes.

Coincidently, during the same weekend, MACC detained four ex-officials connected to former PM Ismail Sabri. According to MACC chief commissioner Azam Baki, the arrests were related to the graftbuster’s investigation into Ismail Sabri’s ‘Keluarga Malaysia’ concept. Even Deputy PM Ahmad Zahid Hamidi has been sucked into the mix as he was seen leaving the MACC office this weekend to assist in the agency’s probe. Talking to the media, Ahmad Zahid was confident that the commission would conduct a thorough investigation into the allegations.

Is this one of PM Anwar Ibrahim’s alleged witch hunts by using MACC as a front? One could only assume but there is one thing we cannot refute that MACC is still an agency under the PM’s Department, which may or may has not contributed to Malaysia’s stagnant 2024 corruption perception index (CPI) ranking (due to lack of independence in MACC’s governance). However, there has been a proposal to place MACC under the Parliament’s jurisdiction, but it is still in the study stage.

Now you can buy solar energy from Maxis
Telecommunication giant Maxis has created a new vertical in its business as the company introduced the Maxis Home Solar subscription service, claiming that the offering will remove the large cost hurdle of purchasing and installing solar panels for customers in the Klang Valley. In its subscription model, customers need to only pay RM1,000 upfront to install the solar power system compared to having to spend between RM30,000 to RM50,000 to purchase and install such a system using the traditional model. However, nothing comes free as the customers will be tied down to a 10-year contract commitment with early contract terminations will require that customers pay a prorated amount to buy out their solar system based on the remaining tenure.

The rush towards solar energy in Malaysia is not surprising as Putrajaya has been aggressively promoting solar energy via the introduction of large-scale solar projects (i.e. the LSS5, LSS5+ and LSS6). Cumulatively, these large-scale projects command at least RM15 bil worth of contracts in the next two years that will significantly drive up activities in the renewable energy sector. Apart from these mega projects, the national grid will also receive a little tender loving care (TLC) via the RM42.8 bil transmission and distribution upgrades under the fourth regulatory period (RP4) (2025–2027), which will significantly accommodate greater renewable energy capacity. Good future ahead for solar energy in Malaysia.

Chinese automaker Chery to invest RM2.2 bil in Beringin High Tech Auto
The northern Selangor (Hulu Selangor) - southern Perak (Tanjung Malim) corridor is set to be the prominent automotive hub in the country as China-based Chery decided to invest RM2.2 bil developing the Chery Smart Auto Industrial Park at Beringin High Tech Auto (Beringin HTA) Valley in Hulu Selangor, alongside a local partner, Legenda Beringin Holding Sdn Bhd. The first phase of the 324-hectare industrial park will be constructed soon and slated for completion in 2026. Chery International president Zhang Guibing said that the industrial park will have an initial production capacity of 100,000 vehicles a year, scalable to 300,000 vehicles. As a comparison, the overall Tanjung Malim vehicle production has a production capacity of 250,000 vehicles per year.
It looks like the Chia family behind Bursa-listed QL Resources (market cap of RM16.9 bil, operator of Family Mart in Malaysia) is a major shareholder in Legenda Beringin.

Shorts

1. The director of a construction company is also not spared from becoming a victim of an online scam as the individual has suffered an RM26.6 mil loss in a cryptocurrency investment scam. Bukit Aman Commercial Crime Investigation Department (CCID) director Comm Ramli Mohamed Yoosuf said that the victim conducted transactions with nine bank accounts registered under various companies between October 17 and December 24, amounting to RM26.6 mil. On paper, the victim was informed that his ‘investment’ had been valued at RM1.3 bil. However, when he wanted to withdraw the money, the victim was instructed to pay RM5.56 mil for so-called tax charges.
   Here’s how to avoid investment scams - understand the impossible trinity. In the world of finance, it is IMPOSSIBLE to simultaneously achieve these 3 goals: i) high returns, ii) low risk, and iii) high liquidity (the ease to convert in and out of an investment). Scammers consistently lure victims by promising all three at once, creating an enticing but fundamentally flawed proposition. 

2. Death is what happens when our public transportation infrastructure is not made for everyone as a visually impaired man died after falling onto the railway tracks and then being struck by a train at the Titiwangsa Light Rail Transit (LRT) station. Further investigations showed that the victim lost his balance and fell onto the LRT tracks before being hit by a train. For your information, screen doors, that separate the platform from the tracks, are not equipped at LRT stations compared to the newer MRT stations. Perhaps, it is time to install screen doors at all train stations, especially the ones at high-traffic locations.

4. AROUND THE WORLD 🌎

Tech: Encryption and hack

• Apple drops end-to-end cloud encryption for UK users
  Apple for the first time ever, has announced that it will stop offering advanced data security options for British users, following the UK government’s demand that the company provide backdoor access for any data those users have stored in the cloud. The Advanced Data Protection is an opt-in feature that protects iCloud files data with end-to-end encryption when they’re stored in the cloud. Apple did not officially disclose the government’s reason in their announcement, but the Washington Post reported that the British government served Apple with a “technical capability notice”, ordering it to provide access under a law called the Investigatory Powers Act of 2016, dubbed the snoopers’ charter. Experts are wary about this, saying that this shows a “fundamental flaw in the government to undermine encryption”, and that if other governments follow the UK’s lead, the future of strong encryption is functionally outlawed, which puts everyone at risk not just to government surveillance but also to eavesdropping by other bad actors.

• Bybit says USD1.5 bil worth of crypto hack, possibly the largest ever
  Dubai-based cryptocurrency firm Bybit said that a hacker had stolen USD1.5 bil worth of digital currency from its Ethereum coin digital wallet, the second largest cryptocurrency by value after Bitcoin. The heist could be the biggest crypto theft in history, surpassing the USD 620 mil heist of Ethereum and USD Coin from the Ronin Network in 2022. All client funds were reported safe, and the company had committed to cover the losses themselves or with a loan from partners. Founded in 2018, Bybit holds USD20 bil in assets and caters to more than 60 mil users worldwide, offering access to various cryptocurrencies, including bitcoin and ether.

Business

• Bubble tea company Mixue aims to raise USD 443 mil in Hong Kong IPO
  China’s largest bubble tea and drinks firm, Mixue Group, is reported to raise USD 443.66 mil in a Hong Kong IPO, bringing its valuation to USD 9.8 bil. 5 cornerstone investors have subscribed for USD200 mil worth of stock. Mixue was started in 1997 in the northern city of Zhengzhou by founder Zhang Hongchao, who began with a homemade shaved ice machine. It has become popular among young consumers in recent years, including in Malaysia. Mixue is best known for selling fruit and tea drinks, coffee and ice cream, typically at a cost of about USD 1. It has 45,000 stores in mainland China and 11 other countries through a major franchise network, though it only owns 1% of these outlets. Mixue is also considered the world’s largest fast-food chain by store count.

• After EVs, China is now coming after planes
  Airbus CEO says China's Comac could disrupt the duopoly with Boeing. Scoot over Airbus and Boeing, make room for Comac — a Chinese aircraft manufacturer that could disrupt the dominance of the planemaker’s duopoly. Airbus CEO Guillaume Faury acknowledged the emergence of Comac into the industry and “takes them seriously”, citing that Comac is most likely to succeed in entering the competitive aircraft manufacturing space. Comac plans to increase production of its C919 jet — a single-aisle aircraft similar to the best-selling Airbus A320 family and Boeing's 737 Max. Data from ch-aviation shows there are 13 Comac C919s in service, operated by Air China, China Southern, and China Eastern. Note that the Chinese market accounts for a fifth of global aircraft demand.

Shorts

1. Man disguised as lawyer kills gang leader in court

   Straight out of a gangster movie. A gunman took matters into his own hands and shot a notorious gang leader Ganemulle Sanjeewa in a courthouse where he is set for proceeding. Police said that the gun was smuggled into the courthouse by a female suspect, hidden in a hollowed-out book. The shooting in the capital Colombo is among a series of killings by rival gangs, a major security issue that is currently plaguing the country.

2. Birkenstock sandals do not get any copyright protection

   Despite its iconic status as footwear, the German court has ruled that Birkenstock does not deserve any copyright status as it is deemed to be a practical design item instead of a work of art. By claiming a work of art, the footwear can be classified as art and be protected by copyright laws. Art is covered by copyright protection, which lasts for 70 years after the creator’s death, whereas design protections last for 25 years from when the filing was made. The company, valued at about USD8.6bil, currently struggles with imitations and rivals selling copycat versions of the sandals.
   Fun fact: Birkenstock is majority-owned by L Catterton, the private equity firm backed by luxury conglomerate LVMH. 

3. Pope Francis in critical but restful condition

   “The night was tranquil, the pope rested” was the simple one-liner update from the Vatican yesterday, informing the status of the critically ill Pope Francis who has been admitted to Rome’s Gemelli Hospital since Feb 14. The 88-year-old pontiff suffered from difficulty breathing and eventually was diagnosed with double-pneumonia. Francis, who has been pope since 2013, has suffered bouts of ill health in the past two years and is particularly prone to lung infections due to his history of pleurisy during his young adult years.

5. FOR YOUR EYES 📺

1. Warren Buffett’s Berkshire Hathaway just released its annual letter - read here (TLDR version here) The conglomerate is sitting on a record-high cash pile of USD334.2 bil (RM1.48 tril). Warren Buffett said the company has paid the US government more than USD101 bil in taxes since he took the helm 60 years ago and last year alone, Berkshire paid USD26.8 bil in taxes or roughly 5% of the total taxes paid by US companies last year. Mad numbers.

2. If the EPF news is no good to lift your mood on a Monday, here’s something that could make you smile.