☕️ Parliament convenes, and drama immediately ensues

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

RM8.3 bil — Malaysia’s advertising revenue in 2023. It is expected to grow at a slower rate of 8.5% this year to RM9 bil compared to a growth of 9.6% last year, according to IPG Mediabrands’ Magna Global Ad Forecast. On a global level, Malaysia is ranked the 38th largest advertising market in 2023. Taking the cake is digital media owners, accounting for RM6.01 bil (72.4%) of the total ad spending last year, with an expected growth of 11.5% this year, whilst traditional media owners are expected to experience a marginal decline of 0.5% this year. How much each Malaysian is worth to advertisers? USD57 (RM268.60) per capita.

Cuti-cuti polygamy. At least 30 couples from KL, Kelantan and Terengganu travel to Narathiwat, the southern province of Thailand, each month to enter into polygamous marriages, according to the Narathiwan Islamic Religious Council. However, it isn’t a straightforward process as practising polygamy in southern Thailand must obtain verification from the Malaysian Consulate General Office in Songkhla and register their marriages in Malaysia to avoid future problems.

How high can one get paid even before starting a new job? Very high, at least in the case of Google parent Alphabet’s new chief financial officer (CFO). Anat Ashkenazi raked in a signing bonus of USD9.9 mil (RM46.7 mil) in her new job, on top of her equity grant of USD13.1 mil (RM61.7 mil) and annual salary of USD1 mil (RM4.71 mil). Doesn’t stop there — she could also get an annual bonus of 200% of her base salary. Prior to Alphabet, Ashkenazi spent 23 years of her career since 2001 in various roles in pharma giant Eli Lilly (the world's tenth most-valuable company by market cap of USD840 bil), with her last role serving as a senior VP and CFO until the end of July. Read her profile here.

3. IN MALAYSIA 🇲🇾

Parliament convenes, and drama immediately ensues
The Parliament returns for a new session from 24 June 2024 to 18 July 2024. Immediately on day 1, drama ensued. Opposition members walked out in protest just before the lunch break after govt MPs passed a motion to refer Wan Saiful Wan Jan (PN-Tasek Gelugor) to the Rights and Privileges Committee. The motion, proposed by Law and Institutional Reform Minister Azalina Othman, aimed to investigate Wan Saiful’s allegations (on Feb 28 and Mar 21) that his corruption charges could be dropped if he supported PM Anwar Ibrahim. Ronald Kiandee (PN-Beluran) opposed the motion and criticised Speaker Johari Abdul for allowing it.

PN chief whip Takiyuddin Hassan announced that they would study the matter, noting that any House member, including Johari himself, can be referred to the committee. During a press conference, Muhyiddin (PN-Pagoh) criticised Johari too and called it “unfair and illegal”. He argued that Johari could have postponed the motion instead. Wan Saiful defended his actions, stating that he brought up the allegations for investigation by the committee, but he is now being investigated instead.

In other news, Johari stated that he would respond to Bersatu’s notice regarding unexpected vacancies in the six parliamentary seats within 21 days. The seats in question are Jeli, Gua Musang, Bukit Gantang, Kuala Kangsar, Tanjong Karang, and Labuan. On June 19, the Kelantan State Assembly Speaker declared the Nenggiri seat vacant after Mohd Azizi Abu Naim (PAS) failed to pledge loyalty to Bersatu. He, along with five other MPs, lost their Bersatu membership for similar reasons and had declared support for Anwar.

Crimes: Insurance syndicate, extremists

• Insurance syndicate uncovered after brutal murder

  Macau scam, love scam, job scam, and investment scam. Add investment scams to the list. Worse still, it comes with the cost of one’s life. In Johor Bahru, a syndicate posing as insurance agents was uncovered after the brutal murder of a 38-year-old man in Kulai last month, aiming to claim a RM500k life insurance payout. The syndicate staged the murder as a road accident to facilitate the claim. The syndicate targeted individuals without a next of kin and named unknown persons as beneficiaries. The insurance agents forged signatures during the application process and waited until the policies were approved and premiums paid for several months before planning the murders. On May 6, the victim was involved in a staged accident on Jalan Senai-Seelong, where he was hit by two cars and another motorcycle. After surviving the collision, he was beaten by four suspects and run over by a lorry, resulting in his death. Eight local men were arrested, four had prior criminal records. Four were charged with murder on June 19, while the other four were released on bail.

• 8 arrested for suspected links to extremist groups

  Police arrested eight individuals suspected of links to extremist groups, preventing possible threats against YDPA Sultan Ibrahim and PM Anwar. Home Minister Saifuddin Nasution Ismail announced at a press conference on June 24 that the arrests occurred over the weekend in Johor, Kelantan, Perak, and Selangor. The suspects were apprehended due to suspicions of connections to Daesh and Islamic State (IS), following up on previous operations conducted in May. Investigations revealed threats against high-profile figures, including the Agong, PM, and top police leadership. The suspects come from diverse backgrounds such as housewives, retirees, and professionals (diversified, indeed) – but all allegedly share the same extremist ideology.

Business

• Now everyone can fly to Africa

  AirAsia X is set to launch flights to Africa, with Nairobi, Kenya as its new destination. The low-cost carrier will offer four weekly flights between Kuala Lumpur (KUL) and Nairobi (NBO) starting Nov 15. The flight takes approximately 9-10 hours, significantly shorter than alternatives requiring a layover. AirAsia X received Air Traffic Rights (ATR) from Mavcom in Apr 2024 to operate up to seven weekly flights on this route starting Oct 2024. The airline also plans to serve Cape Town and Cairo as destinations. Tony Fernandes highlighted plans to expand to cities in Europe, Africa, and North America over the next decade.

• Ikhlas Capital invests up to USD40 mil in Food Empire

  Former CIMB CEO Nazir Razak’s Ikhlas Capital is leading an investment of up to USD40 mil (RM188.41 mil) in Food Empire Holdings through a redeemable exchange note (REN) issue. Food Empire is a FMCG manufacturer and distributor listed on the Singapore Exchange. Ikhlas Capital's founding partners include big names such as Kenny Kim (former CIMB Group CFO), Gita Wirjawan (Indonesia’s former minister of trade), and Cesar Purisima (former Philippines’ secretary of finance), and its investors comprise over 50 ASEAN institutions and family offices. The company’s market cap stands at SGD572.2 mil.

• KJ, Shahril x Catcha Digital Bhd
  Former health minister Khairy Jamaluddin and former UMNO information chief Shahril Hamdan made further progress in their post-political life and expanded their media empire with a new joint venture called KS Lagi with Bursa-listed Catcha Digital Bhd (CD). Slated to launch in the second half of the year, KS Lagi will build on the existing Keluar Sekejap media brand, which has over 324k YouTube subscribers. CD will manage all commercial and business responsibilities for the existing KS business and KS Lagi, whilst KS Lagi will create and distribute new media content across Catcha Digital’s existing network with a reach of over 20 mil Malaysians every month. CD wholly owns 100% of iMedia Sdn Bhd, which owns media brands such as Oh! Media, WeirdKaya and Beautiful Nara — check out their brands here.

Together with INFINITY8

Step into history with a move-in ready, fully-furnished workspace in Penang! Get 50% off rent for your first 6 months at INFINITY8 Reserve George Town. Experience premium office suites, hot desks, snooze areas, and more in the 100-year-old former Standard Chartered building, a UNESCO heritage site. Opening July 1st, 2024—sign up now! Limited time offer, T&Cs apply.

As part of our pre-launch exclusive deal, The Coffee Break subscribers get to enjoy 50% OFF the first six months if they sign up by July 15, 2024!

4. AROUND THE WORLD 🌎

What exactly Netanyahu want, and Israel’s largest anti-government protest
Israeli PM Benjamin Netanyahu indicated he’s open to a “partial” deal for the return of some captives but would not agree to any deal that puts an end to Israel’s war on Gaza. Israel’s bankroller, the US, last month proposed a six-week pause in fighting that would enable negotiations for a permanent ceasefire. US officials insisted Israel authored the proposal, but various Israeli officials, including Netanyahu pledged to continue fighting until Hamas is eliminated and refused to publicly endorse it fully. What a slap in the face to the hand that feeds it. And yet, the US still keeps funding Israel. So, what exactly does the US want too?

What Netanyahu & Co. want might not be what the people of Israel want. Over the weekend, the largest anti-government protest took place in Israel, with an estimated 150,000 people attending the rally (view the protest here). The protest called for new elections and the return of captives held in Gaza, as many have grown frustrated with the country’s right-wing coalition and the prolonged war in Gaza. Btw, Netanyahu has been charged with fraud, bribery and breach of trust in cases filed in 2019 with the trial being disrupted by the pandemic and prosecution disputes. The attack by Hamas on Oct 7 was a blessing (only for Netanyahu) to distract the world away from his charges and ensure his political survival. The question is, for how long more and how many more innocent Palestinian lives?

When supporting Taiwan’s independence becomes a crime
China released a list of behaviours that defined criminal acts related to supporting Taiwan’s independence. This is the first official guideline designating support for Taiwan's independence as a crime. These new guidelines come just a month after Taiwan’s new president, Lai Ching-te, took office on May 20, whose party has focused on heavily resisting China. 

Broad definitions of crimes include promoting the idea of “two Chinas” or “one China, one Taiwan”, creating organisations that fight for Taiwan’s independence, and relying on “foreign forces” and institutions to achieve independence.  The “crime of secession”  carries the death penalty. China can impose all these new guidelines as much as it wants, but it has no jurisdiction over Taiwan. However, it is a strong signal that China is hardening its stance toward the self-governed island. 

Snap expands Asia-Pacific footprint, Singapore as regional hub
Many of us here probably aren’t Snapchat users, but this app is huge, with more than 800 mil users worldwide, attracting predominantly the younger generation. Snap, the company behind Snapchat, appeals to younger users as it provides a more personal social media experience and a low likelihood of content going viral on the platform, ensuring a safe, private and healthy experience for its users. 

Snap has grown its headcount in Singapore, its regional hub, by 25% as it shifts its focus from the Americas, Europe and the Middle East towards Asia-Pacific. A disproportionate share of those aged 13 to 34 use its app in the region. About 75 to 90% of people in this age range in major countries where Snapchat operates are active users of the platform. Snap generated a global revenue of USD4.6 bil in 2023 with a market cap of USD25.9 bil. View its financials here. How about a data centre in Johor?

Shorts

1. Deadly fire at South Korean battery factory
   At least 22 people died after lithium battery combustion ignited a massive fire and injured another 7 people. Reuters reported that 18 of the casualties were believed to be Chinese nationals. The incident occurred at the Aricell battery factory in Hwaseong, a city south of Seoul. 

2. New Australian law to fine grocers that bully suppliers
   The Australian government announced a new rule that supermarket chains earning more than AUD5 bil in annual revenue will be required to comply with a voluntary industry code of conduct, failing which they will be subjected to fines of up to 10% of annual revenue, leaving them liable to pay billions in dollars of penalties. Australia has one of the most concentrated grocery markets in the world. Woolworths and Coles, the largest and second-largest players, combined account for about two-thirds of sales. Plus, Aldi and Metcash, these four players make up more than 80% of the market.

3. Barcelona plans to ban short-term rentals 
   The Spanish city looks to ban short-term rentals by 2029 after complaints that tourism has priced locals out of the housing market. Rents in Barcelona spiked 36% between 2018 and 2022 as tourists increased from 7.4 mil in 2012 to 15.6 mil last year. Properties there require a tourist license before they can be listed as rentals, and there are about 10,000 of such properties. Critics of this ban said tourist apartments only accounted for just 0.77% of Barcelona’s housing stock. Across the world, cities are similarly clamping down on short-term rentals. Meanwhile, Airbnb is worth USD94.7 bil.

5. FOR YOUR EYES 📺

1. How to be a ChatGPT ninja