☕️ The last kampung in Singapore that's worth SGD70 mil (RM225 mil)

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

We have an objective reason now not to trust the government ever with our data. National Security Council (MKN) Director-General Raja Nushirwan Zainal Abidin said that nearly 20% of the 740 different ICT systems managed by various governmental bodies were completely non-functional. 150 of these systems are classified as dormant, and have unknown ownership, reflecting a lack of awareness regarding data management among government officials. He said that if he had to rate the ICT systems, at best a 2 and in some cases, it could be a zero. The usual culprit rears its ugly head again - corruption. The DG said one of the causes of these weak systems is the alleged collusion between government officials and IT vendors to procure such systems without the necessary scrutiny.

SGD70 mil (RM225 mil) - the value of the land of Lorong Buangkok, the last kampung in Singapore. Spanning 12,248 sqm (3.027 acres), the kampung is home to 25 families. The land is owned by Sng Mui Hong, who inherited the land from her late father Sng Teow Koon who acquired the land in 1956. Sng did not sell the land she wanted to honour her promise to her father that she would keep the land for his children and grandchildren. The kampung’s status as freehold land means the government cannot acquire the land as long as Sng holds on to it. Some experts estimate that the estate could fetch prices in the low hundreds of millions as a government land sale about the similar size as the kampung fetched SGD381 mil (RM1.23 bil). Take a tour of the kampung here.

High-speed Shinkansen trains, which began operating between Tokyo and Osaka on October 1, 1964, are celebrating 60 years of service today. The Shinkansen has been integral to Japan's economy and way of life, maintaining a reputation for punctuality, cleanliness, and safety. Nearly a quarter of a million passengers use the Tokaido Shinkansen line daily, with Nozomi trains arriving every five minutes. Impressively, JR Central has never had an accident resulting in death or injury, despite Japan's frequent earthquakes, typhoons, and heavy snow.

3. IN MALAYSIA 🇲🇾

Drugs are cleaning Malaysia’s coffers of about RM2.3 bil annually
Malaysia allocates over RM1 billion annually for prison costs related to drug offenses, says newly appointed Home Secretary-General Awang Alik Jeman. Such a figure could alternatively fund the hiring of around 5,000 specialist doctors, significantly alleviating hospital waiting times. In 2022 alone, approximately 8,480 individuals were arrested for drug-related cases, leading to a staggering RM1.15 bil in prison expenditures. In addition, rehabilitation programs cost RM65 per day per person, amounting to RM166 mil for about the 7,000 individuals who underwent treatment last year. RM2.3 bil = RM6.3 mil spent daily, and this hasn’t factored in the hidden costs of drugs

The financial implications of drug-related issues extend beyond just imprisonment and rehabilitation- Awang noted that enforcement efforts have resulted in drug seizures valued at RM1.1 billion over the past year, bringing the overall economic burden of drug crimes to RM2.3 billion (read: a lot of money) annually as border security remains a pressing concern for the country.

Awang reported that Op Taring Wawasan by the police is currently ongoing along the 662-km Malaysia-Thailand border, aimed at combating cross-border crimes by deploying advanced surveillance technology at border checkpoints. A National Border Control System is said to be in the works, integrating sophisticated surveillance and artificial intelligence to enhance security measures and improve decision-making processes for law enforcement. Got to push the intensity of the war against drugs like Israel’s bombing of Gaza. before we turn into Malaysia Darul Columbia. 

Budget 2025 to crackdown on the ultra-rich, particularly in the education sector
Part of next year’s Budget 2025 bill, according to PM Anwar Ibrahim, includes prioritizing assistance for those genuinely in need while reducing subsidies for the uber-wealthy, particularly in education. Speaking at the National Symposium to End Poverty 2024 in Putrajaya today, Anwar highlighted the need to ensure that financial allocations are effectively distributed- meaning disallowing children of the rich who were previously enjoying heavily subsidized education. The allotment should instead shift to the more vulnerable groups, such as children with autism.

Though definitely unpopular, Anwar deemed these changes essential for the country's welfare. He also criticized the ongoing subsidies provided to non-residents who have been enjoying benefits like electricity subsidies, besides others, all whilst not paying their fair share of taxes. Budget 2025, the third budget under the Unity Government, is set to be tabulated on October 18.

Business

• Astro’s best quarter since Jan 2023
  Astro Malaysia Holdings Bhd reported a net profit of RM54.71 mil for the Q2 ended July 31, marking a whopping 131.32% increase from RM23.65 million in the same quarter last year. However, revenue declined by 5.98% to RM787.3 mil.

  Astro has the strengthening MYR a lot to thank for. The group sources international content in USD, with more than 50% of its borrowings and lease liabilities of RM3.12 bil denominated in USD. Notably, finance costs dropped significantly to RM10.8 mil from RM74.1 mil year-on-year.

  In terms of user engagement, Astro's average revenue per user for pay-TV services increased a measly RM0.70 as it stands at RM99.80 in Q2. Their broadband user base grew by 11% year-on-year, and the order-to-watch service named Sooka attracted 1.3 million active monthly users. View earnings here.

• DNeX partners with Google to provide cloud services in Malaysia
  Bursa-listed Dagang Nexchange Bhd has signed a Google Cloud Partner Advantage agreement with Google as it is now authorized to operate Google Cloud services as a managed provider, according to a filing with Bursa Malaysia.
  This agreement allows DNeX to resell Google’s cloud solutions, besides gaining access to other features like the tech monolith’s AI, big data, and analytics capabilities. The company has entered into a three-year MoU with Google to explore how the latter’s cloud offerings can better the local technology landscape. The company’s market cap stands at RM1.18 bil.

Shorts

1. 2,000 GLCs to be audited come 2025
   We didn’t expect for so many GLCs to exist. Following an amendment to the Audit Act 1957 that strengthens auditor-general Wan Suraya Wan Radzi’s powers, 2,000 GLCs are set to be audited in the first round next year, with no entities being left out. Auditing will be followed by screening to identify lower-risk corporations, as well as more detailed analysis to ensure transparent governance and increased accountability. Nothing fishy goes on anyways in these GLCs. Right? Mixed feelings here - should we or should we not be shocked when the audit results are out?

2. 81 Umrah agencies suspected of price fixing by Malaysia Competition Commission (MyCC)
   MyCC is investigating 81 companies, including GISB Travel & Tours (they just can’t stop finding themselves in the news), for alleged cartel behaviour related to Umrah services. The investigation revealed that these companies agreed to set a floor price for Umrah packages during meetings last year and subsequently announced these prices publicly. Only a measly 10 of these companies are actually licensed to carry out Umrah travel services.

4. AROUND THE WORLD 🌎

Hezbollah to appoint new head ASAP, as Israel gears up for invasion

New successor: Lebanon’s Hezbollah will be choosing a successor to slain secretary-general Sayyed Hassan Nasrallah “at the earliest opportunity” according to group deputy chief Naim Qassem in his televised speech. He also called for patience from supporters, stating that Israel was not able to reach the group’s long-range rockets. Iran has also offered its support, stating it will not let “the criminal acts” of Israel go unanswered, considering the same Israeli airstrikes that killed the Hezbollah chief also killed an Iranian Guard deputy commander.

Security guarantee for Israel: The Jordanian foreign minister has also stepped forward at the UN General Assembly, saying that the Muslim Arab Committee, mandated by 57 Arab and Muslim countries, are “willing to guarantee the security of Israel” if Israel ends its occupation and agrees to the establishment of a Palestinian state. He also called out Israeli PM Netanyahu for “creating that danger” when Netanyahu spoke about how Israel was surrounded by those who wanted to destroy it, saying that the Israeli PM “simply does not want the two-state solution”. Check out the Jordanian foreign minister’s speech here.

Israel gears up invasion: Israeli forces are amassing near the Lebanese border, with their defence minister meeting up with troops there and going on record saying Israel “will use all the forces from the air, sea, and land” to return the displaced residents of northern Israel. Hezbollah, through its deputy chief’s televised speech, stated its readiness to repel any Israeli ground invasion. However, the Lebanese government has stated its readiness to implement UN Security Council Resolution 1701, aimed at ending Hezbollah’s armed presence in southern Lebanon through the deployment of Lebanon’s army, if Israel agrees to a ceasefire.

Economy and Technology

• East Coast port strike could cost US economy USD5bil a day

  Port workers in the East and Gulf Coast of the US are poised to go on strike, which could cost the economy as much as USD5 bil a day with half of the US’ ocean shipping grinding to a halt. This comes as the labour contract between the International Longshoremen’s Association union and the United States Maritime Alliance employer group expires with stalled salary negotiations. The strike is scheduled to start on Tuesday at 12.01AM Eastern Time if no agreement is reached. The strike would also mark the first coast-wide strike by the union since 1977. The union represents 45,000 port workers.

• South Korea readies KRW100 bil (USD75 mil) in incentives to permanently quash dog meat trade

  Seoul will be helping to rehome almost half a million dogs bred for food, with incentives for dog breeders, farmers, and restaurants to encourage them to shut their businesses. In January, its parliament passed a bill to ban the controversial centuries-old tradition that will be effective in Feb 2027. Farmers can also get up to USD452 for each dog they surrender. The South Korean vice-agriculture minister addressed concerns that dogs might be euthanised by stating that is not in the government’s plan.
  Dog meat was once seen as a way to improve stamina in the humid Korean summer. South Korea has more than 1,500 dog breeding farms and more than 200 dog slaughterhouses. About 2,300 restaurants still serve dogs on plates.

Shorts:

1. Ex-police chief first to be jailed for 2022 Itaewon tragedy

   Former Yongsan district police chief Lee Im-Jae was sentenced to three years in jail after being found guilty of failing to prevent the Itaewon crowd crush, a tragedy that claimed more than 150 people. Another former officer in charge of the police emergency centre was sentenced to two years in jail on the same charges. 

2. Switzerland, Italy redraw borders as glaciers melt

   Another victim of climate change - national borders. The two nations redrew part of their border in the Alps after climate change led to melting glaciers, with part of the area affected located beneath the Matterhorn, one of Europe’s tallest mountains. The redrawing is because large sections of the border is determined by glacier ridgelines or areas of perpetual snow, which have now shifted due to the melting glaciers.

3. UK shuts last coal-fired power plant after 100 years
   Coal energy is seeing its demise after powering the UK for over 140 years. The Ratcliffe-on-Soar station will end its final shift at midnight last night after more than half a century of operating. The UK government has hailed the closure as a milestone in efforts to generate all of Britain’s energy from renewables by 2030. This shutdown also makes Britain the first country of the G7 to phase out coal. The world’s first coal-fired electricity plant, Thomas Edison’s Edison Electric Light Station, opened in London in 1882.

5. FOR YOUR EYES 📺

1. Racism powering the economy #keepwithinjokecontext

2. Interesting architecture — the facade of the Bund Finance Centre in Shanghai is made of stainless steel pipes that slowly rotate around the building every 2 hours.

demas

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3. The state of PTPTN - a thread by The Coffee Break