☕️ Online petition demanding justice for deaf Grab driver launched

1. MARKET SUMMARY 📈

About 13 years ago, The Economist called Bitcoin a bubble when it was USD2.50 (RM10.80). Today, it’s USD67,000 (~RM290k). Bubble won’t recover multiple times from >70% crashes. Time for Bitcoin skeptics to reflect. If you want to give Bitcoin a chance and new to it, this is the article that we would recommend to start with.

2. NUMBERS AT A GLANCE 🔢

RM100 mil - that’s what we stand to make from Singaporeans driving into Malaysia in 2024, according to Transport Minister Anthony Loke. In the first 9 months of the year, a total of RM87.9 mil was collected from 4.39 mil vehicles entering Malaysia (averaging 16,107 vehicles per day). Currently, a RM20 road charge is imposed on Singapore-registered vehicles entering from Singapore, of which RM5 goes to the Johor government.

Malaysian household debt hit RM1.57 tril as of June 2024, translating to a household debt-to-gross domestic product (GDP) of 83.8%. Housing and car loans account for 74.5% of total household debt. Median debt service ratios for outstanding and newly approved loans were 34.6% and 40.7% respectively, reflecting that households are less susceptible to financial distress.

Apart from the data centre industry thriving, commercial scam is also thriving just as much. From Jan 1 to Oct 13 this year, 23,447 commercial crime cases were recorded, involving RM1.97 bil in losses (average loss of RM84k, which is more than 4x the annual income of the (upcoming) minimum wage of RM20.4k). The number of cases actually fell 10% from 26,033 but losses spiked by 23% from RM1.61 bil recorded year-on-year. 11,047 (47%) of these cases were successfully prosecuted, up from 42% in the previous year.

To safeguard yourself from investment scams, always remember the impossible trinity. 3 key goals — high returns, low risk, and liquidity — are impossible to be achieved simultaneously. Scammers are good at making this paradox seem possible to achieve, consistently luring victims by promising all 3 at once. 

3. IN MALAYSIA 🇲🇾

Online petition demanding justice for deaf Grab driver launched
Remember the deaf Grab driver who was assaulted by someone allegedly part of Johor Regent TMJ's police escort team (watch the incident here)? The Deaf Advocacy and Wellbeing National Organisation (Dawn) has launched an online petition demanding justice for Ong Ing Keong, who was reportedly assaulted on May 28 while waiting for passengers outside a hotel in Kuala Lumpur.

The petition calls for the immediate prosecution of the implicated officer and an independent inquiry into the handling of the case. It also emphasizes that Ong's case “is not just about seeking individual justice but highlights systemic barriers that deaf individuals and other vulnerable communities face in accessing justice in Malaysia”. Dawn has urged the attorney-general and the PM to clarify the lack of action regarding this incident, even when the assault was caught on video.

Check out the petition here:

Business

1. Sabah-based Life Water Bhd eyes IPO worth RM307 mil
   Beverage manufacturer Life Water Bhd has initiated an initial public offering (IPO), aiming to raise RM81.87 mil for its listing on the Main Market, priced at 65 sen per share. This IPO will realize a market cap of RM307.57 mil for the company, approximately 11x its net profit for the financial year ending June 30.
   Life Water anticipates raising RM63.42 mil from the public issue and RM18.45 mil from the offer for sale (aka cashing out), which will entirely benefit its pre-IPO shareholders. Proceeds from the public issue will be allocated as follows: RM19 mil for a new drinking water manufacturing line at Sandakan Sibuga Plant 1, RM12 mil for another line at Plant 2, RM12.6 mil for a second distribution centre in Sandakan, RM9.61 mil to expand plastic packaging facilities in Kota Kinabalu, and RM4.21 mil for working capital needs.

   Life Water reported a net profit of RM28.12 mil in FY2024, up from RM20.62 mil in FY2023, alongside revenue growth to RM166.53 mil from RM150.96 mil in the previous year. Its peer, Spritzer Bhd, has a market cap of RM885 mil.
   View its prospectus here.

2. Gamuda, JV partners making it rain as they secure RM15.1 bil Taiwan MRT project

   Gamuda Bhd, in partnership with its joint-venture (JV) associates, has been awarded a significant RM4.3 bil contract by the New Taipei City Government for the Xizhi Donghu MRT project in Taiwan.

   Gamuda's portion of the contract is valued at RM3.2 bil. Additionally, the JV is obligated to undertake further works worth RM10.8 bil, which would increase Gamuda's share to approximately RM8.1 bil. The total value of the project, including these additional works, is estimated at RM15.1 bil.

   The MRT alignment will run through the Taipei Neihu District and New Taipei City Xizhi District and is expected to be completed within seven years.

   Gamuda is no stranger to the Taiwanese construction market - this contract represents Gamuda's largest achievement in Taiwan since entering two decades ago. Prior works of the company include delivering the Kaohsiung MRT Orange Line in 2008, the RM2.13 bil Taoyuan City Underground Railway project in 2022 and the RM3.45 bil Kaohsiung MRT Metropolitan Yellow Line in 2023.

3. PETRONAS considering selling minority stake in its clean energy arm Gentari

   The national O&G custodian is mulling over selling a minority stake in its fully owned subsidiary Gentari Sdn Bhd, established in 2022, as part of their effort to expand the clean energy business, according to sources. PETRONAS is reportedly engaging an adviser, as Gentari draws interest from infrastructure funds and similar peers in the industry, with a preliminary stake potentially worth USD300 mil (RM1.3 bil) to USD500 mil (RM2.2 bil). Said valuation is still under discussion though, as the source indicated that PETRONAS might ultimately decide against selling.

   PETRONAS has not responded to requests for comments.

Shorts

1. 2027 SEA Games budget to be shared by Gov and private sector

   When asked about preparations for the 2027 SEA Games in the Dewan Rakyat, Youth and Sports Minister Hannah Yeoh said that the estimated RM700 mil needed to host the event will be bolstered by the private sector and not just solely dependent on government funds. Yeoh said that the Sarawak state government allocated a little more than half of the budget estimate at RM365 mil, with the Penang government committing an additional RM15 mil. Sabah originally agreed to allocate roughly RM100 mil, but has since backed out due to a lack of facilities. Yeoh also added that the Ministry aims to approach the Games in a prudent manner.

2. Lorry driver to serve 360 hours of community service after his joke bombed at the airport

   A 39-year-old man has pleaded guilty to making a bomb-related joke that caused public concern at Tawau Airport in July. Sabrie Nulsarie was ordered to complete four hours of community service daily over three months and was placed on a RM1,000 bond with a local guarantor. The incident occurred when he suggested there "might be a bomb" while a police officer was inspecting luggage, leading to his arrest despite no suspicious items being found.

4. AROUND THE WORLD 🌎

Biden appears to be ‘concerned’ about leak of Israel’s plans to strike Iran; wealthy Israeli fed-up with waiting offers rewards for release of Gaza hostages
Following the apparent leak of secret US assessments on Israel’s preparation for an attack on Iran over Telegram last week, the White House says US President Biden is “deeply concerned” with the matter, adding that they are not sure how the documents have been made public.

The classified documents include an analysis of satellite imagery of Israeli military activities, with several US media outlets citing anonymous US officials saying the secret documents seem authentic. The documents also disclosed that the Israeli military “handled” air-launched ballistic missiles and conducted covert drone activities earlier this month “almost certainly” for a strike on Iran.

Biden has been open about how he is “aware” about the plans by Israel to attack Iran, but so far he has not revealed any diplomatic initiative to stop the conflict from spiralling.

On a separate news, wealthy Israelis who are getting more fed-up and frustrated with the wait for a ceasefire have sought a different way to release Israeli hostages. They are offering financial rewards amounting to USD100,000 (RM432.8k) in cash or Bitcoin to “anyone who delivers from Gaza a living Israeli prisoner”, effective until Wednesday midnight. They have received responses, but most of them were pranks, threats and curses, except for 10-20 calls that could be legitimate, but were more concerned with getting out of Gaza than with the money.

BHP slapped with a GBP36 bil lawsuit over Brazil dam collapse in 2015
In a lawsuit worth more than GBP36 bil (RM201 bil), lawyers representing thousands of victims of the 2015 Mariana dam collapse in Brazil - the country’s worst environmental disaster - have said that BHP is cynically trying to avoid its responsibility towards the incident. More than 600,000 Brazilians, 46 local governments and around 2,000 businesses are suing BHP, who owned and operated the mine with Vale as a joint venture.

The dam’s collapse unleashed a wave of toxic sludge that killed 19 people, left thousands homeless, flooded forests and polluted the length of the Doce River. BHP argues it did not own or operate the dam, which held mining waste known as tailings. It said a Brazilian subsidiary of its Australian holding company was a 50% shareholder in Samarco, which operated independently. They also said it had no knowledge the dam’s stability was compromised before it collapsed.

The lawsuit entered a decisive stage on Monday with the beginning of a 12-week trial to determine whether BHP is liable. It also follows developments in BHP’s negotiations with the Brazilian authorities over the disaster, with a possible USD30 bil compensation deal from with BHP, Vale and Samarco.

Of Fries and TGIF

1. Activist investor Jana Partners is pushing french-fry maker Lamb Weston to explore a sale
   Activist investor Jana Partners is eyeing Lamb Weston, a major producer of frozen-potato products (mostly french fries) with a market value of about USD 10 bil (RM43.28 bil). The company is the largest producer of fries in North America and second in the world and also counts McDonald’s and KFC as its clients. The investor has built a stake of roughly 5% in the company and has plans to push the struggling company to explore a sale, improve its operations and capital allocation strategy. The activist said it has teamed up with the agricultural investment firm Continental Grain on the investment. Talk about selling picks and shovels.

2. TGF hopeful that they would find financing to avoid possible bankruptcy

   Oldtimer TGI Friday’s Inc will possibly face bankruptcy, after struggling to turn around a business pressured by customers’ tighter budgets and preference for faster food. The company is now seeking financing, in search of a loan that would help it continue running restaurants through the Chapter 11 process and emerge as an operating company. Founded in the 1960s, TGI Friday’s is one of several casual dining chains that have had to grapple with the reality of competing with popular fast-casual eateries like Chipotle, and the bad impacts from prolonged closures and a drop-off in traffic during COVID 19.

Shorts:

1. Ex-Peruvian President convicted in bribery case and sentenced to more than 20 years in jail

   Another Latin American leader is going to jail - Peruvian ex-President Alejandro Toledo has been sentenced to 20 years and 6 months behind bars, in connection with the heated Odebrecht construction firm corruption scandal, the most extensive bribery operation discovered in the region. He was convicted of taking USD35 mil (RM150 mil) in bribes from the Brazilian construction firm in exchange for a freeway construction contract. Odebrecht-related scandals have so far led to the jailing of officials in Peru, Panama, and Ecuador. Probes of corruption by the construction giant have also occurred in countries such as Guatemala and Mexico.

2. Sex-predator Harvey Weinstein diagnosed with cancer

   Harvey Weinstein, a disgraced former entertainment mogul of Hollywood has been diagnosed with a form of bone marrow cancer. Suffering from chronic myeloid leukemia, he is undergoing treatment in a New York prison where he currently serves a 16-year prison sentence after being convicted of rape charges in California. He was also convicted in 2020 of the rape and sexual assault of an actress and production assistant, and was sentenced to 23 years in prison, but his appeal has been accepted for retrial. Allegations against Weinstein helped launch the MeToo movement in 2017, a watershed moment for women fighting sexual misconduct. More than 80 women accused him of harassment, sexual assault or rape, including prominent actors Angelina Jolie, Gwyneth Paltrow and Ashley Judd. Sounds like karma is doing its work.

3. Harrods in the process of settling over 250 sexual abuse claims against late Al Fayed

   Harrods has admitted that it is now working to settle more than 250 claims for compensation filed by women who allege historical sexual misconduct by Mohamed Al Fayed. A BBC documentary released more than 4 weeks ago has prompted these women to come forward, exposing decades of serious sexual abuse allegations against the former Harrods owner. Harrods new owners said that they are “appalled” by these, and have been investigating since last year whether any current members of staff were involved. Al Fayed is accused of multiple counts of rape and attempted rape by several women who worked for him - many of whom felt unable to report what had happened until recently.

5. FOR YOUR EYES 📺

1. How much can investment bankers make in Malaysia?

2. Amazon’s founder Jeff Bezos asked legendary Warren Buffett why that his investment thesis is so simple, yet why aren’t many people copying him. Buffett’s reply: Because no one wants to get rich slow. And as such, where there’s demand (for fast money), there’s supply (of investment scams).

You are halfway through the week. Here’s a kinda calm and zen video of kangaroos hopping on water.