☕️ BN's four sicknesses - delusion, amnesia, inertia, arrogance, according to BN FT Chief Johari Abdul Ghani

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

Today’s section dedicated to diseases - pneumonia, HIV and diabetes

Malaysia’s #1 cause of death in 2023 - pneumonia. Pneumonia surpassed heart disease last year for the first time in 2 decades, claiming 18,181 lives, prompting urgent calls for enhanced respiratory health measures and vaccination efforts. The number of pneumonia-related deaths has gradually increased from 9,250 in 2014 to 18,181 last year. Pneumonia is contracted through bacterial, viral or fungal infections and if left untreated, it can lead to a serious lung infection that can be fatal. Symptoms include productive cough, high fever, loss of appetite, confused mental state, low energy, extreme tiredness, and rapid breathing or wheezing.

Meanwhile, a small win for the country as the rate of new Human Immunodeficiency Virus (HIV) infections in Malaysia has decreased significantly from 28.5 in 2002 to 9.7 per 100,000 people in 2023. Screening, treatment, and health education initiatives by both government and NGO agencies have led to reduced virus transmission. Malaysia maintained the mother-to-child HIV transmission rate at 1.58%, below the target of less than 2% among HIV-positive mothers who do not breastfeed. The Health Ministry in collaboration with the Malaysian AIDS Foundation has introduced an HIV self-test kit that can be purchased via the Test Now site here.

The rate of diabetes in adults doubled from approximately 7% to about 14% between 1990 and 2022, according to a study by Lancet. It is estimated that about 828 mil people over 18 have the condition, a rise of about 630 mil people over the 3 decades. There are 2 types of diabetes: Type 1 is an autoimmune disease whereas Type 2 is a metabolic disorder (simply put, it’s lifestyle), affecting more than 95% of people with diabetes. Growing levels of obesity are fuelling the type 2 diabetes epidemic. A healthy lifestyle is also unaffordable for most diabetic patients as compared to unhealthy food, which is cheap, convenient and heavily advertised in many countries.

3. IN MALAYSIA 🇲🇾

Swatch 1 - 0 Home Ministry
The High Court has ordered 172 watches seized in 11 separate raids from the Swatch Group to be returned by the government. Justice Amarjeet Singh made the order, finding the government's raid on Swatch premises illegal as it occurred without a warrant, after allowing Swatch's judicial review application dated June 24 2023 against the authorities' raid on the watches. Justice Amarjeet also said that the prohibition on the items only came after the seizure was conducted (the ban came sometime in August last year), therefore Swatch Group was not contravening any law prior to the raid.

The court ordered the watches to be returned within 14 days from the date of the order- no costs and damages are to be awarded to the Swatch Group, albeit they could file a separate bid for compensation if the watches were found damaged. The Swiss watchmaker is seeking a certiorari order (higher court reviewing lower court cases) from the court to nullify the seizure notice and for the respondents to return the watches as well as damages.

What's so special about these timepieces anyway? These watches were part of Swatch's Pride collection, which the Home Ministry found to be prejudicial to morality as they aligned themselves directly with the LGBTQAI+ movement.

BN Federal Territories Chairman highlights four afflictions plaguing the coalition
Johari Abdul Ghani, who is also UMNO VP, urged his party members during his opening speech to unite regardless of race to address four issues corrupting the coalition during the Federal Territories Barisan Convention: 

• Delusion: Johari opines that MPs blindly assume they have the support of the people due to the party’s past contributions

• Amnesia: Party members forget the initial purpose of establishing the party

• Inertia: Barisan Nasional has been stagnant and refuses to change, causing voters to reject the party

• Ignorance: Johari believes that the party is stubborn and turns a deaf ear to opinions and constructive criticism

Business

• MR DIY Indonesian arm to list in Jakarta
  In September, Bloomberg News reported that the Indonesian sister company of MR DIY Group (M) Bhd, PT Daya Intiguna Yasa, was considering listing its shares as early as this year in a deal that could raise as much as USD300 mil- fast forward today, the company is set to IPO, aiming at raising USD297 mil (RM1.32 bil) - USD3 mil shy.

  Mr DIY’s Indonesian counterpart operates more than 800 stores in the country, posting a profit of IDR534.7 bil(roughly RM150 mil) for the first half of the year. 60% of the IPO proceeds are planned for debt repayment, with the rest to open new stores and fund working capital.

  Btw, this Jakarta IPO for MR DIY would also be the biggest in the nation since gold miner PT Amman Mineral Internasional’s listing in July 2023. Their Malaysian IPO in 2020 raised USD363 mil, with plans on listing in Bangkok. MRDIY Malaysia market cap stands at RM17.6 bil.

• KLK’s youngest brother to list TMK Chemical Bhd
  The chemical management and storage company founded in 1989 has unveiled its IPO prospectus aiming to raise RM385 mil, aimed at acquiring capital for plant expansion, construction of new facilities, as well as acquisition. TMK currently operates 15 facilities across Malaysia, Singapore, and Vietnam. Should TMK obtain their offer price of RM1.75 per share, the company would have a market capitalization of RM1.75 bil, valuing it 19 times its earnings for last year. Whew. The company aims to list on Dec 12 on the Main Market.

  As for who’s controlling TMK? Lee Soon Hian, the youngest brother of two billionaire brothers who are directors of Kuala Lumpur Kepong Bhd, the agricultural monolith, with a market cap of RM23.6 bil.

• Hyundai to open its first Malaysian plant in 2025
  The South Korean automotive company is set to invest RM2.16 bil in opening a plant in Kedah’s Kulim next year, says Investment, Trade and Industry Minister Zafrul Aziz. The plant, expected to produce seven car models in five years, is set to be Hyundai’s biggest local investment to date. None of Hyundai’s cars were in the top 10 for most popular cars sold in Malaysia in the first half of this year, maybe having CKD, instead of CBU, units that are cheaper will change that?
  Learn: CKD vs CBU cars

Shorts

1. Senior citizens might have to undergo assessment for license renewal
   The Ministry of Transport, according to Minister Anthony Loke, is reviewing a proposal requiring those aged 65 and above to undergo competency and health tests before renewing their driving licenses. Loke says that the ministry welcomes the suggestion, but is still evaluating the upsides and potential downsides of requiring such a check. Our neighbour, Singapore, already mandates those in the same age group to undergo a fit-for-driving check with a doctor once every 3 years.

2. Malaysia trafficking haven due to our multicultural background
   Research firm Humanity Research Consultancy found that Malaysia’s multilingual population makes young Malaysians the ideal target for human trafficking. Firm founder Mina Chiang said that young Malaysians generally speak multiple languages and are desperate to seek job opportunities abroad due to low wages, causing them to be trafficking targets for scam industries. It’s not all bad news as Malaysia was recently upgraded to Tier 2 in the United State’s Victims of Trafficking and Violence Protection Act, indicating that we are making significant progress to counter trafficking.

4. AROUND THE WORLD 🌎

Iran calls for Netanyahu's death

Death, not arrests
Iranian supreme leader Ayatollah Ali Khamenei believes the International Criminal Court should have issued death sentences for Israeli leaders, not arrest warrants. This comes in response to the ICC issuing arrest warrants for Israeli PM Benjamin Netanyahu, his former defence chief, and Hamas leader Ibrahim Al-Masri.

Hell and high water
Displaced Palestinians living in tent encampments endured Israel stepping up their strikes in Gaza but also faced seasonal misery as heavy rains inundated tents, even washing away the shelters in some cases. Families could not replace worn-out or missing tents as the prices of new tents and plastic sheets have skyrocketed beyond their means. The UNRWA reports that half a million people are at risk in areas of flooding.

Israel-Hezbollah ceasefire
Israel is moving towards a deal being made but pointed to several issues still to be addressed. The Israeli ambassador to the US also went on record saying a deal could “transpire within days”. However, there are those in government such as far-right National Security Minister Itamar Ben-Gvir who called on Netanyahu to stop the deal, saying Israel must press on with the war until “absolute victory”.

Russia-Ukraine deal - President-elect Trump vs President Biden
The Kremlin has noted that President-elect Donald Trump is talking about a potential peace plan with Ukraine, as opposed to the Biden administration, which is seeking to escalate instead. This comes in response to an interview given by Trump’s National Security Adviser pick, Mike Waltz, where Waltz shared Trump’s concern about the escalation and that the war must be brought to a “responsible end”.

Prepare for war?
Top NATO military officials are urging businesses to be prepared for a wartime scenario and to adjust their production and distribution lines to be less vulnerable to blackmail from countries like Russia and China. Said officials believe that the control of trade also serves as a large part of deterrence, offering the example of the West being dependent on China for rare earth materials and how the West would be “naive to think the Communist Party will never use that power”.

Tech bites

• SpaceX’s Starlink Direct-to-Cell satellite communications goes global
  The launch of 12 DTC satellites creates a network via laser backhaul technology, and this allows smartphones to bypass traditional cell towers and provide connectivity in areas with no coverage, with further coverage expected to roll out in 2025. The system requires no extra equipment or special app, according to SpaceX CEO Elon Musk, with major telcos already onboard with the network. It seems like Malaysia’s Maxis and YES are on the list as well.

• Elon Musk's startup xAI worth has surpassed the price he paid for Twitter
  The Wall Street Journal has reported that xAI has been valued at USD50 bil, a figure double what it was in the spring. The new valuation means xAI has surpassed the USD44 billion Musk paid for Twitter in October 2022. X was valued at USD9.4 bil by Fidelity, one of its investors, in September. This is a staggering growth considering that xAI was founded just 16 months ago. Earlier in Jan, its valuation was just USD635 mil. In a short span of 11 months, its valuation shot up 78x.

• Cyberattacks cost British businesses USD55 bil over past five years
  The most common causes for the lost revenue are compromised emails and data theft, according to a survey polling 905 UK private sector IT decision-makers. The survey also found that 52% of private sector companies reported at least one attack over the past five years, with businesses making an annual revenue of over USD125.8 mil the most likely to suffer an attack. On a tangent, British cabinet office minister Pat McFadden has called on Britain and NATO to stay ahead in the “new AI arms race”, as Russian cybercriminals are increasingly targeting countries that support Ukraine.

Business Crimewatch

• Spain hits low-cost carriers with USD187 mil in fines
  Ryanair, Vueling, easyJet, Norwegian, and Volotea are the airlines affected by the fines, which the Spanish Ministry of Consumer Affairs says is due to “abusive practices” such as charging extra carry-on luggage fees, with the amount of the fines based on the “illicit profit” made by each airline due to such practices. However, this has led to significant pushback from the industry, including from the International Air Transport Association, which condemned the fines as undermining freedom of pricing.

• South Korean prosecutors call for five-year jail term for Samsung chief
  The prosecution also called for a USD375,000 fine in addition to the prison sentence at an appeals court, with the hearing happening 10 months after Samsung chief Jay Lee and 13 former Samsung executives were originally acquitted of manipulating stock prices and committing accounting fraud. The hearing is significant on two fronts, as Samsung is currently seeing slower profits, and South Korea is moving to reform how corporations are structured, something that will impact global consumer electronics, and the country’s technology ecosystem.

Shorts:

1. Drone captures footage of Manila shanty fire
   A coastal shanty town in Manila burned for nearly eight hours, with the conflagration leaving at least 2,000 families homeless with around 1,000 houses destroyed and 8,000 people displaced. There have been no immediate reports of casualties, and investigations are underway to determine the cause of the fire. View the incident here.

2. Japan's Shikoku Bank features Seppuku pledge for top execs
   The Japanese bank’s top executives took an oath in blood to abstain from financial misconduct and to commit seppuku (honourable suicide in Japan) should they be discovered to have embezzled or misappropriated funds in any way. The pledge also requires the person who stole or caused others to steal to pay for it with their own property. Now that’s what we call commitment.

5. FOR YOUR EYES 📺

Money Stuff

1. Taitais and datins’ collect luxury bags. Luxury conglomerate LVMH collects luxury brands. Check out its M&A activity post-1989.

2. Warren Buffett’s Berkshire Hathaway's ever-growing cash pile now at USD325 bil after aggressively selling 2 of its major holdings - Apple and Bank of America. This is 10x the USD30 bil cash buffer that Buffett pledged to maintain. Buffett swapped out his Apple for pizza, spending USD549 mil for a 3.7% stake in Domino’s Pizza.

3. Forbes 30 Under 30 - the inverse indicator. A new member was added recently to this ‘list’.