☕️ Najib Razak to Malaysia - I'm Sorry

1. MARKET SUMMARY 📈

Looks like the strong ringgit made 80 types of fresh produce cheaper between July and September, according to the Domestic Trade and Cost of Living Ministry. The new iPhone 16 series was cheaper too, for the same reason.

2. NUMBERS AT A GLANCE 🔢

RM2.6 mil was generated from the bidding for the Madani special number plate series, which concluded on Wednesday night, according to Transport Minister Anthony Loke. There was one plate that received much more attention than others — 8481 (which denotes babi in capitals). Someone paid a cool RM26,666 for that plate. There’s also a PAS version here.

779 fatal accidents involving school students were recorded in the first nine months of this year, according to Mohd Yusri Hassan Basri, director of the Bukit Aman Traffic Investigation and Enforcement Department (JSPT). During the same period, a total of 4,043 road accident cases involving school students were documented. Additionally, 498 school students aged 17 and below were reported to have participated in ‘mat rempit’ activities in the first nine months of this year.

Global wildlife populations have declined by a staggering 73% on average over the past 50 years, as reported in the Living Planet Report, a comprehensive overview of the state of the natural world. Tanya Steele, head of WWF UK, stated that the loss of wild spaces is “putting many ecosystems on the brink,” with habitats such as the Amazon and coral reefs teetering on the edge of “very dangerous tipping points.” The report is based on the Living Planet Index, which tracks over 5,000 population counts of birds, mammals, amphibians, reptiles, and fish over five decades. Notably, it highlights that 60% of the world’s Amazon pink river dolphins have been eradicated due to pollution and other threats, including mining and civil unrest.

3. IN MALAYSIA 🇲🇾

Najib Razak to Malaysia - I’m Sorry
Akin to your girlfriend who innocently says sorry after filling up the petrol to your diesel-run 4x4 pickup, former PM Najib Razak expressed regret that the 1MDB scandal happened under his watch. The apology statement was read by his son and Pahang executive council member Mohamad Nizar outside the Kuala Lumpur court. However, like the girlfriend who said it was not her fault and pinned the blame on the petrol pump’s nozzles for not being ‘user-friendly’, Najib Razak reiterated via the statement that he was innocent and maintained that, at the time, he honestly believed the funds received were from Saudi Arabia, and not misappropriated from the strategic state development fund.

During the SRC International Sdn Bhd's civil suit hearing against Najib Razak, the 71-year-old former PM stated that he did not want to interfere with investigations on 1MDB (SRC International is a subsidiary), so as not to be seen as abusing his power as the PM. Previously, when he was the PM, a multi-agency task force, consisting of the police, MACC, BNM, and the Attorney General's Chambers was set up in 2015 and led by former Attorney General Abdul Gani Patail to investigate 1MDB. However, following Gani’s removal from the position, so went the task force that was disbanded in July 2015. Najib should be more specific in his statement, it should be - “I will not interfere if the investigation is moving to the conclusion that I want, otherwise, then the investigation’s existence will be no more”. The alleged royal addendum, upcoming house arrest law oddly announced during Budget 2024, and now this ‘apology’ — let’s connect the dots.

Property news

• Putrajaya is now in an awkward position as its former administrative capital, the ‘Duta Enclave’ fate has been set to stone. The High Court has ordered the ‘Duta Enclave’, covering an area of 263.27 acres in Mukim Batu to be returned to Semantan Estate Sdn Bhd (SESB). In the 12-page judgement by Judge Ahmad Shahrir, it basically said that due to the botched acquisition in 1956, the Federal Government is currently the unlawful occupier of the land. Sounds like a sentence out of the Middle East. Currently, the ‘Duta Enclave’ is estimated to be worth about RM6 bil and houses government buildings, including the National Hockey Stadium.

• Housing Minister Nga Kor Ming stated that Putrajaya will not limit the number of properties one can own, as the Government already has the real property gains tax to curb property investment speculation issues. At the moment, as of the end of June, there are 22,642 residential units worth RM14.24 bil that are completed but unsold, mostly priced below RM300,000 per unit. In another matter, in order to prevent fraudulent practices in the housing sector, Nga said that his ministry is considering a stricter law, which includes travel bans for the ‘sneaky’ property developer and their families.

Shorts

1. Malaysia is officially part of the BRICS fraternity, but only as a partner country and not a full member, as announced during the ongoing BRICS Summit at Kazan, Russia. BRICS is an intergovernmental organization, created as a response to the Western-aligned G7 Group. BRICS consists of 9 full members namely - Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran and the United Arab Emirates.
   Read: What’s the difference between a full member vs partner member?

2. Federal Territories Minister Dr Zaliha Mustafa told the Parliament that Putrajaya is currently conducting a study to construct border walls at certain portions of Malaysia’s land borders - Sungai Golok in Kelantan, Pulau Sebatik in Sabah, and known rat lines in Padang Terap, Kedah. However, Dr Zaliha concurred that constructing such border walls is expensive. For comparison, the US-Mexico border is estimated to cost about RM54.4 mil per km.  By using the same cost estimation, erecting a wall across the whole of Thailand-Malaysia will cost Putrajaya about RM32.37 bil.

3. Cuckoo International (MAL) Bhd is looking at the public market for more capital as the local unit of the South Korean appliance maker has filed for IPO on the Main Market of Bursa Malaysia. Cuckoo International is expected to float about 25.5% of its shares to the market, to raise fresh money in upfront purchasing the products in order to sustain the growth of the rental business. The company made RM1 bil in revenue and RM86.87 mil net profit last year.

4. US-based global technology solutions provider MKS Instruments Inc has invested USD100 mil (RM434.8 mil) in Penang to build a super centre factory to support wafer fabrication equipment production. According to MKS senior executive David Henry, the first phase of the new factory will be completed in 1H2026 and ultimately the new plant will employ about 1,000 people.

4. AROUND THE WORLD 🌎

Al Jazeera strongly condemns ‘unfounded’ Israeli claims about its Gaza journalists
The Israeli army posted on X on Wednesday, naming Al Jazeera Arabic correspondents as “operatives” working for Hamas’s armed wing to promote the group’s “propaganda” in Gaza. The media network has responded to the accusations, saying that it is a blatant attempt to silence the few remaining journalists in the region, thereby obscuring the harsh realities of the war from audiences worldwide. The “baseless” accusations came following a recent report by its investigative unit that revealed potential war crimes committed by Israeli forces during the continuing assault on Gaza. Another excuse to eliminate the voices for Gaza, it seems?

Press freedom watchdog Committee to Protect Journalists (CPJ) said that Israel had “repeatedly made similar unproven claims without producing credible evidence,” like they always do. According to the CPJ, at least 128 journalists and media workers have been killed in Israeli attacks in Gaza since the war began, making it the deadliest in modern history for journalists.

Tech giants updates:

1. Apple Intelligence ain’t giving the boon that Apple needs

   The iPhone maker stock tumbled about 3% on Wednesday. Apparently, it happened after prominent analysts reported that the demand for the iPhone 16 has declined, where it said that Apple has slashed its iPhone 16 orders by about 10 mil units. Analysts have suggested that the drop shows "no evidence yet that Apple Intelligence (its latest iOS meets ChatGPT) could boost iPhone shipments in the near term." Separately, Apple has reportedly been scaling back production of the USD3,500 headset Vision Pro since summer, and it could fully stop making the device by the end of the year. Experts believe that it is due to the high price point and weak consumer appeal, but Apple may be developing a cheaper, smaller headset to replace it and keep customer’s interest.

2. Stripe acquires stablecoin platform Bridge for USD1.1 bil

   Global payment processing powerhouse, Stripe has been reported to acquire stablecoin platform Bridge for USD1.1 bil, making it the largest acquisition in the cryptocurrency sector to date. Stripe was valued at approximately USD70 bil as of July and has been actively expanding its presence in digital payments. Earlier this year, it surpassed USD1 tril in total payment volume, which represents about 1% of global GDP. The acquisition follows Stripe’s recent efforts to integrate stablecoins into its payment systems, and is expected to further enhance the adoption of stablecoin solutions, solidifying Stripe’s leadership in the fintech sector. Both companies have yet to make a public statement regarding the topic.
   Learn: What is stablecoin?

Luxury: Hermes keeps winning

1. Hermes thriving despite luxury slump as its Q3 sales went up 11.3%

   Almost 200-year-old family company Hermes is thriving despite the slump in the luxury market. The company has made a hefty rise in its Q3 sales, continuing to outshine rivals hit hard by a downturn in China. It generated EUR3.7 bil in revenue for the three months ending in September, an 11.3% rise. Hermes manages to survive it in class, so to speak, attributing it to its brand identity that is "based on scarcity," and not chasing fashion trends or releasing products heavily based on seasons. The only sore spot for Hermès was the watch sector, where sales tumbled 6%.

2. LVMH 3Q sales fall 3% as China demand for luxury goods worsens

   Meanwhile, another French luxury giant, LVMH has reported a 3% fall in its Q3 sales, miserably missing its estimates in this first decline in quarterly sales since the Covid-19 pandemic, as demand in China and Japan weakened. The world’s biggest luxury group generated EUR19.08 bil in revenue for the three months ended September, stripping out the effect of currencies, acquisitions and divestitures. Fashion and leather goods comprise almost half of LVMH revenue and nearly three-quarters of its recurring profit. In Asia excluding Japan, of which the Chinese market has a dominant share, the sales decline worsened to a 16% slide from a 14% drop in the previous quarter.

3. Kering warns of lowest profit since 2016, as Gucci suffers in the slump

   Kering (owner of Gucci, Balenciaga - see full list here), another luxury group to suffer from the luxury sector slowdown, has warned that its annual profit will fall to its lowest level since 2016 as a slump in Chinese demand for luxury goods hampers a turnaround of its biggest label Gucci. They are expecting that the recurring operating income this year could be around EUR2.5 bil, which would be the lowest level in 8 years and less than the EUR2.82 bil as analysts were expecting. Comparable sales at Gucci, which makes up the bulk of the group’s profit, slumped 25% in the 3Q from a year earlier. Kering’s stock has slumped more than 40% this year, and are on track for their worst annual performance since 2008.

Shorts

1. Thailand to impose THB300 travel tax in 2025

   Thailand is set to impose a THB300 (RM39) travel tax next year, starting with air passengers and subsequently overland travellers. It will start next year after the approval of its Cabinet. The THB300 includes insurance premiums for tourists, capped at THB60 per person. Malaysians love to travel to Thailand, where more than 100,000 crossed the border over the last 4 weekends. However, people who cross the border frequently for trade will not be affected as they can use a border pass for the levy exemption.

2. Watch Messi’s POV on the field through ‘Messi Cam’ livestream on TikTok

   Fans of football GOAT Messi rejoice — the global football icon will strap a camera on his chest to broadcast his movements to his fans straight from the field when he leads his Major League Soccer (MLS) team Inter Miami in the MLS Cup 2024. The video will be streamed on TikTok on channels of both MLS and Inter Miami. Fans will get a personal perspective of the world champion’s runs, moves, assists, goals and celebrations as he attempts to land Miami’s first MLS Cup title since his move to the United States in 2023. Looks like Messi is a Marvel fan - watch his actions on the field here.

Weekend Read: The Day Charlie Munger Was Introduced To The World
Charlie Munger is not a name commonly known (thank us if you learnt of him through our newsletter), but he made the Warren Buffett we know today. Munger was Buffett’s longtime business partner and vice-chairman of Berkshire Hathaway until he passed away last year at 99. Read this Forbes cover from early 1996, revealing just how transformational he was for Warren Buffett.

5. FOR YOUR EYES 📺

1. Cerita Hantu Kerja, a series brought to you by Professional Bimbo, or more lovingly known as AuntyHR, Malaysia’s top and probably first HR influencer. In this series, she shares case studies of HR cases from the Industrial Court. Subscribe to her Youtube channel here to follow the series and do check out her IG here where she shares career and employment insights and advice.

2. Have a good laugh with the below. Reflecting deeper, there are lessons to take away too - the importance of comprehension, good spelling and of course, attentive parenting too.