☕️ Another 4 years of Donald J. Trump, and how to profit from it

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

3% — Bank Negara Malaysia has maintained the overnight policy rate (OPR), citing the current monetary policy stance remains supportive of the economy and is consistent with the current assessment of inflation and growth prospects. A narrowing gap in interest rates between Malaysia and developed countries is set to strengthen the ringgit. Malaysia's strong economic outlook, along with domestic reforms and investment-enhancing initiatives, is poised to keep boosting the ringgit, as highlighted by the central bank.
View: Monetary Policy Statement (MPS) Snapshot: November 2024

Airbnb has surpassed 2 bil guest arrivals, doubling its previous milestone of 1 bil in October 2021. The platform hit its 1 bil milestone 14 years after being founded. Who is the 2 billionth guest? Tim and Theresa, a retired couple in their 60s from Eagle River, Wisconsin. In October, they embarked on a multigenerational trip to Sandy, Utah, with their children and grandchildren, staying at a Guest Favorite listing that accommodates up to 12 guests. This milestone highlights the growing trend of multigenerational family travel on Airbnb, which saw a more than 35% increase in the first half of this year, with older adults booking stays with children or grandchildren.

Global public debt is projected to exceed USD100 trillion this year for the first time, reaching 93% of worldwide GDP, with the U.S. and China being significant contributors. The International Monetary Fund (IMF) has warned that this escalating debt threatens a broader financial crisis. The International Monetary Fund (IMF) has cautioned that, in a “severely adverse scenario,” global public debt could rise to 115% of global GDP by 2026. This potential increase is attributed to factors such as “weaker growth, tighter financing conditions, fiscal slippages, and greater economic and policy uncertainty.”
Read: Putting a lid on public debt

3. IN MALAYSIA 🇲🇾

Bangladesh seeks Malaysia’s cooperation in Bestinet’s alleged fraud probe 
Bestinet Sdn Bhd runs a foreign worker recruitment platform dubbed Foreign Worker Centralised Management System (FWCMS). Bestinet’s founder and his associate — Aminul Islam and Ruhul Amin — are now suspected of money laundering, human trafficking, and extortion of Bangladesh citizens as workers abroad. Dhaka police have requested the Malaysian Government for the arrest of the two. They also asked the nation’s government to halt the use of software provided by Bestinet for the time being. However, when the MACC investigated Bestinet in September, they found nothing that supported the claim made by Dhaka news outlets. But, there’s no smoke without fire. Back in June 2024, the Home Minister shared that the local government is looking to extend Bestinet’s contract for three more years but on stricter terms for the protection and welfare of foreign workers.

On the flip side, Aminul’s lawyer has denied any misconduct in the company and stated that the founder is not directly involved in the recruitment process of foreign workers nor directly interacts with recruitment agencies. The lawyer also added that Bestinet is committed to protecting the foreign workers and minimise any risk of exploitation.

Nuclear energy is on the table to be in 13MP 
Malaysia will soon be adopting nuclear power generation as one of its energy sources and will most probably be included in the 13th Malaysia Plan (13MP) in line with the nation’s goal of net-zero carbon emissions by 2050. The decision has been endorsed by the National Energy Council and the cabinet. The Economic Minister Rafizi Ramli said that a legal and regulatory framework is being developed. He also added that nuclear energy has a more stable operational cost, unlike fossil fuels. Nuclear technology has advanced allowing for the design of smaller modular reactors (SMRs) that are safer and cost-effective. It isn’t so much about the technology - it’s the lack of maintenance culture and tidak apa attitude of Malaysians.

Suriati vs CTOS finally comes to an end
Earlier in the case of Suriati Mohd Yusoff against CTOS Data Systems Sdn Bhd (CTOS), the High Court Judge ordered CTOS to pay RM200,000 to Suriati as the judge ruled that CTOS was not allowed to create its credit score but can only store credit information that its subscribers could access. CTOS appealed the decision.

Subsequently, the Court of Appeal overturned that decision after Suriati failed to provide adequate evidence for defamation, negligence or breach of statutory duty case against CTOS. This made her appeal to the Federal Court which ended up refusing to grant leave (permission) as the three-member apex court bench decided the appeal would have no success. In civil cases at the Federal Court, appeals are not automatically heard. They must first meet certain criteria based on the facts and legal questions involved. The Federal Court also ordered Suriati to pay RM30,000 to CTOS. Ouch.

Shorts

1. Harapkan pagar, pagar makan padi
   MACC Assistant Commissioner allegedly misappropriated RM613,000 seized from an operation (Ops Green) in 2019 and now, he has been charged at Shah Alam court. He was instructed to surrender his passport and was told not to contact anyone involved in the case. He had pleaded not guilty. The court is set to hold a hearing on December 9, 2024, and he may face whipping if found guilty.

2. Terengganu state government help its people to find love
   Good news for citizens of Terengganu as Terengganu Family Development Foundation (YPKT) said that the Top IT Industries Sdn Bhd has almost completed a dating app exclusively for the state’s citizens known as Jodoh Darul Iman. This platform can be used by all single female and male citizens aged 21 and older including single parents. Now, how much did it cost YPKT to build this app?

3. U Mobile’s 5G award reeks of cronyism?
   PKR MP Hassan Abdul Karim goes wild in his Facebook post (view here) by questioning the Madani government as the ultra-rich crony capitalist groups return, describing 3 types of cronies. His rumbles stemmed from the controversial decision of MCMC, which announced U Mobile as the second operator of Malaysia’s 5G network. On the third kind of cronies, he said they enjoy immunity and untouchable due to the 3R ban (IYKYK) although Article 34(3) of the Federal Constitution states that the Agong shall not actively engage in any commercial enterprise. MCMC released a press statement justifying its decision - read here.

4. More troubles for Fashion Valet founders
   On November 6, 2024, the Malaysian Anti-Corruption Commission (MACC) searched the residence of Fashion Valet founders Vivy Yusof and Fadzaruddin Shah Anuar in Mont Kiara, Kuala Lumpur. During the search, MACC officers seized 11 handbags and a luxury watch estimated to be worth RM200,000. Additionally, several of their accounts containing RM1.1 mil in funds were frozen. Earlier that day, it was reported the couple was at the MACC office, where investigators continued to have coffee with the couple.

4. AROUND THE WORLD 🌎

Triumphant Trump

Today’s section largely, or rather, completely revolves around the US election and its new winner — Donald Trump.

Man is back: Republican presidential candidate Donald Trump is now the president-elect in a comeback victory after securing more than the 270 Electoral College votes needed. His running mate, J.D. Vance, is now vice president-elect, with the two set to be sworn in on 20 January 2025. The Republicans have also retaken the Senate, and are well on the way to claiming the House of Representatives as well. With control of the White House, the House, and the Senate, the Republicans would have broad power to pass laws.

Sweet Revenge: This means the “revenge” administration experts warned of is a step closer to reality. Should Trump stick to his word and “be a dictator during his first day”, he can easily form an authoritarian administration to follow through on his campaign promises. These promises include prosecuting lawyers, Democrats, and others he has falsely accused of committing electoral fraud, as well as conducting the “largest deportation operation” of undocumented immigrants in US history. This leads to Trump being able to easily delay his four criminal cases, especially since he will have the power to fire the prosecutor who charged him on his two federal cases.

Mexico: Its southern neighbour is now in a precarious position, with Mexico’s President Claudia Sheinbaum having to negotiate and soften the impact on trade, migration, and security from Trump’s policies and campaign rhetoric. Trump promised he would be implementing a 200% tariff on cars coming from Mexico and US military action against drug cartels, along with the aforementioned mass deportation, all of which will deal a blow to the Mexican peso, and sour relations between the neighbouring nations for a while.

China’s response: Beijing has announced it will work with the US on the basis of mutual respect, but China is bracing for more action from the US when it comes to the rivalry between the two superpowers. Chinese strategists are expecting more fiery rhetoric and potentially crippling tariffs from Trump, though some are hoping the president-elect’s isolationist foreign policy will give Beijing a chance to expand its global influence.
Want to see how other world leaders reacted? Check out this compilation by Reuters.

Conflicts Affected

Israel-Gaza Genocide: The Israeli government also celebrated Trump’s win, with Israeli PM Benjamin Netanyahu calling Trump “an ally who would support Israel unconditionally”. Hamas stated the election was a matter for the American people, but did call on Trump to end the “blind support” to Israel and to “learn from Biden’s mistakes”. Still, it seems Israel would win regardless of which candidate won the election, since both candidates supported Israel, though in different ways. So here’s a picture of the true winner of the US elections.

Russia-Ukraine War: Ukrainian President Volodymyr Zelenskiy has congratulated Trump on his win, praising his “peace through strength” approach in global affairs. The message also seemed aimed at quickly building ties with the new administration, though Trump had vocally spoken against US support for Ukraine, where Ukrainian fighters have reported clashing with North Korean troops for the first time. Russia, on the other hand, has adopted a cautious “let’s see” stance, considering the US was still a hostile state to them, though Trump had spoken before about ending the war during his campaign.

However, protests have erupted across Israel, not because Trump won, but because Netanyahu fired his defence minister, Yoav Gallant. Gallant had been fired before, but Netanyahu was forced to retract the termination to quell some of the biggest protests ever seen. Relations between the two never recovered, as Gallant started arguing that it was time to bring hostages home as the conflict dragged on. To replace Gallant, Netanyahu appointed former foreign minister Israel Katz, with Netanyahu ally Gideon Sa’ar, who had no cabinet portfolio, taking over as foreign minister. The US Pentagon has stated it will work closely with the new defence minister as “America’s commitment to Israel’s security remains ironclad”.

Elsewhere, the conflict in Lebanon between Hezbollah and Israel has led to human rights NGOs pressing countries to hold an emergency session of the UN Human Rights Council to investigate abuses committed by both sides of the conflict. The NGOs, in a letter to diplomatic missions, cited incidents such as Israeli strikes on civilian infrastructure, stating there is a “huge risk of the same types of atrocities occurring in Lebanon as in Gaza”.

Wall Street braces, Bitcoin soars

• Wall Street steels itself for volatility on Trump victory

  Wall Street is girding itself for potentially lower taxes, tariffs, and deregulation in financial areas. Trump has promised to increase tariffs by 10% on imports, and 60% on goods from China, though the question remains about how aggressive he would actually be with said tariffs. Tax reforms are also on the list of potentials, with Trump looking to reduce the corporate tax rate to 15% for companies making their products in the US. This represents a further rate cut from his previous term when he lowered the tax rate from 35% to 21%.

• US stock futures, Bitcoin, and the dollar surge with Trump's win

  The dollar saw its biggest one-day jump in four years at the announcement of Trump’s victory, while Bitcoin soared to a record high of USD75,349 (at the point of writing) and stock futures on the S&P 500 E-Minis saw a high of USD5,949.25. Markets also remained confident that the US Federal Reserve would cut interest rates by 25 basis points this week, but are now less confident of further easing in December. You may dislike Trump but reality we can’t change — might as well learn how to profit from it. How? Bitcoin (and probably crypto), is the way Trump has expressed his support for this emerging asset class. Watch below.

5. FOR YOUR EYES 📺

1. PSA: Honda Malaysia recalls 36,000 units of its cars

2. An airport presents the first impression of the country to travellers and a beautifully designed airport makes a big difference. Cambodia is looking to do just that with its newest airport.

3. GBP5.1 billion was allocated to overseas aid in the UK’s Public Expenditure Statistical Analyses last year, equating to approximately GBP74 per person. This amount represents a modest portion of public spending, constituting only 0.5% of the total budget.