☕️ PAS 'outsourcing' to members to fund MP’s RM825,000 defamation suit

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

6,417 permanent and contract medical officers have resigned in Malaysia from 2019 to 2023, according to Health Minister Dr Dzulkefly Ahmad. Additionally, 1,046 medical specialists also resigned during the same period, and 63 other medical specialists opted for early retirement. According to the Health Minister, one of the reasons for these resignations is the offer of employment as lecturers at public universities. While the number may worry some, there are still a lot of doctor graduates — 3,131 in 2022. The one issue is — what about experienced doctors in the public service?

13% of the 477,571 borrowers registered with the Credit Counselling and Debt Management Agency (AKPK) have fully settled debts exceeding RM3.2 bil (RM6.7k on average per borrower), according to Finance Minister II Amir Hamzah Azizan. These borrowers received assistance through the Credit Management Programme, which helps restructure loans and facilitates continued repayments. Since its inception in 2006, nearly 1.4 mil individuals have benefitted from AKPK’s free Financial Supervision Advisory Service.

20,300 grey wolves are estimated to be living in Europe, with breeding packs present in 23 European Union countries as of 2023. This population rebound, due to successful conservation efforts, has led European countries to agree to downgrade the protection status of wolves, as their increasing numbers are impacting agriculture and livestock farming. Grey wolves were nearly extinct in Europe a century ago but have made a strong recovery, now coming into more frequent contact with humans. Btw, the size difference between a wolf and vs husky - watch here.

3. IN MALAYSIA 🇲🇾

PAS turns to members to fund MP’s RM825,000 defamation suit
In a letter sighted by the media, PAS top leadership has issued a directive asking its members to chip in for Kepala Batas MP Siti Mastura’s loss in a defamation suit filed by 3 DAP leaders as she owes RM825,000 in damages and costs. The “jihad donation drive” (the term is mentioned in the letter), actually specified the amount expected from members — central committee members and those from PAS branches are to contribute at least RM500, while state chapters as well as wings at federal, state, and division levels are to raise RM20,000 at minimum. Whew. To highlight the urgency of this request, PAS secretary-general Takiyuddin Hassan said that failure to cough up the amount could result in Siti declaring bankruptcy, ultimately vacating her seat and requiring a by-election. Way to go - ‘outsourcing’ penalties to members. 

Airline news

• MAS forced to ground a recently acquired plane
  It seems like Malaysia Airlines is plagued with issues- just this year alone, two of the airlines’ flights were forced to turn back to KLIA due to technical issues while a different flight scheduled for Melbourne had to make an emergency landing at Alice Springs, somewhere in Northern Australia.

  MAS’ newly acquired Airbus A330neo that it boasts on its website is no exception- it was grounded just days after its maiden flight to Melbourne, with the company citing technical issues yet again. CEO Izham Ismail, when speaking to the media, blamed poor quality levels from factories that have been on a steady decline since the post-COVID era, with the company asking plane manufacturer Airbus and engine manufacturer Rolls-Royce to investigate the root cause. The latter, being the m maker, has identified faulty components, and has a replacement lined up for the national airline.

  Izham also highlighted how unfair it was for MAS to receive a faulty plane as it was detrimental to the brand. Flights scheduled for Melbourne in the meantime are set to be borne on a different aircraft whilst the airlines await repairs. We can imagine, the plane was received less than a month ago on November 29 after several delays.

• AirAsia: 100 new planes, PN17 regularisation
  Speaking at a company Christmas event, Capital A CEO Tony Fernandes said that airline operations under AirAsia are set for expansion with over 100 new aircrafts as discussions with Airbus, Embraer, and Comac are currently ongoing. From the Airbus side, Tony’s team is currently in Brazil and Canada, viewing A220 models. Comac, a Chinese state-owned aerospace company, is also on the company’s radar as it looks for planes that could supplement A321 flight operations. Tony also said that Capital A has submitted its proposed regularisation plan to Bursa Malaysia through a RM6 bil capital reduction to exit its Practice Note 17 (PN17) status, hopefully by Q1 2025.

KLCC Holdings prevails as RM12 bil Bandar Malaysia land buyer
After KLCC Property Holdings Bhd previously denied that it was a party to the Bandar Malaysia land transaction as reported by The Edge, its parent company KLCC Holdings, the property arm of national O&G custodian PETRONAS has confirmed that it has acquired 486 acres of land for an undisclosed price, though it was reported to be worth as much as RM12 bil. The statement detailed KLCC Holdings as responsible for undertaking future development based on commercial viability over a long-term period. Bandar Malaysia used to be home to the Royal Malaysian Air Force in Sungai Besi is currently owned by TRX City Sdn Bhd, which also owns Tun Razak Exchange.

Said development on the land is still in limbo, as Bandar Malaysia's prior plans for an Escape theme park have been scrapped as announced by theme park operator Sim Leisure Group Ltd, according to a filing to the Singapore Exchange. The supposed theme park was planned to span 75 acres on a 15-year lease. Sim Leisure Group also owns and operates Penang’s Escape outdoor adventure park, an Escape indoor Park in Paradigm Mall, as well as Kidzania KL. KLCC Holdings in its statement said that it envisions development of its newly acquired land as an international business hub and a liveable city — hopefully we see its fruition.

Shorts

1. RM4K solar system installation initiative expanded and prolonged
   Subject to the terms and conditions outlined in the Solar for Rakyat Incentive Scheme (SolaRIS), a rebate of up to RM4000 for the installation of solar systems is extended until April 30. The Net Energy Metering (NEM) programme has also been improved as existing solar users are eligible for an increase in their solar capacity, besides agricultural users that stand to benefit from solar are now eligible under NEM too. For the Rakyat category, the NEM quota now stands at 600 MW compared to the 450MW previously, while those under NEM NOVA will experience a 300 MW rise in their limit to a total of 1,700MW. More info on NEM can be found on the Energy Commission’s website found on www.st.gov.my.

2. Positive government approval rating this year, according to survey by Merdeka Centre

   The Madani government is 5% more popular this year compared to 2023, according to a survey conducted in October and November by the opinion research firm, with 54% of voters giving PM Anwar a positive rating. During the survey, voters were generally satisfied with Anwar’s track record in attracting investments, improving Malaysia’s optics, and improving the civil service departments. Respondents, however, were mixed on Anwar’s efforts to strengthen the economy. The survey had 1,207 respondents of which all were registered voters from all racial backgrounds.

4. AROUND THE WORLD 🌎

Middle East: The Impossible Order

• IDF Orders Unreasonable Hospital Evacuation
  The orders were for hundreds of patients and medical staff to be moved out of one of the last hospitals still partly functioning in an area on the northern edge of the Gaza Strip. However, this task would prove “next to impossible” as there were not enough ambulances to get patients out, with insufficient time, equipment, and assistance as well. These patients included babies in the neonatal unit, who are dependent on oxygen and incubators. When contacted, the IDF just said that it had sent fuel and food to the hospital and helped evacuate over 100 medical staff and patients to other hospitals for their own safety.

• New Syrian Ruler Reassures Minorities
  Ahmed al-Sharaa hosted Lebanese Druze leader Walid Jumblatt in another effort to reassure minorities that they will be protected and to dispel worries that he may impose strict Islamic governance. He said that it was the duty of the Islamist group to protect the minorities, rather than heading toward the “exclusion of other sects”. Still, Syrian church leaders are advising Christians to scale back Christmas celebrations despite the reassurances, especially after several incidents of harassment and vandalism against the Christian community there. However, it was also true that the Hayat Tahrir al-Sham, Sharaa’s Islamist group that is currently leading the country, responded quickly to complaints about harassment, with the vandals involved in defacing a church and cemetery also quickly arrested.

The Trump Test

• Greenland tells Trump "We are not for sale"
  Prime Minister Mute Egede made the statement as a response to US President-elect Trump’s comments about the “ownership and control” of Greenland, which has been part of Denmark for over 600 years. Trump had made the comments on his social media platform, Truth Social, claiming that the US felt the ownership and control of Greenland was an “absolute necessity”, since it was for “purposes of national security and freedom throughout the world”. The Danish government has yet to respond to the comments.

• Trump: Not just yet, TikTok
  Trump has also indicated he favoured allowing TikTok to keep operating in the US “for at least a little while”, considering he received billions of views on the platform during his presidential campaign. Currently, TikTok is challenging a law calling for its parent, ByteDance, to divest it. Should the Supreme Court rule in favour of keeping the law, and there is no divestment, the app could be effectively banned one day before Trump takes office.

Mergers, Acquisitions, and Unions

• Nissan, Honda to merge, forming world's third-largest carmaker

  The Japanese automakers have agreed to explore a merger and set up a joint holding company, marking yet another massive shift in the turbulent auto industry. So far, talks should be wrapped up around June 2025, with the holding company set up in August 2026, when the shares of both Nissan and Honda will be delisted. The aim is for the merged entity to achieve sales of USD191 bil, with an operating profit of USD19 bil. Still, former Nissan CEO Carlos Ghosn suggests the “desperate move” shows Nissan is in “panic mode”, with Ghosn adding that there is “no complementarity between the two companies”. Ghosn, once considered a legend in the auto industry, was charged with financial crimes in 2018. Yes, he’s the one who smuggled himself out of Japan in a musical instrument case.

• Xerox to acquire printer maker in USD1.5 bil deal

  The office equipment manufacturer will be buying Chinese-owned Lexmark International, with the deal meant to bolster Xerox’s own mainstay business. The deal comes as Xerox saw its revenue shrink for five quarters in a row, faced with the dying demand for printers and related office equipment as the world goes digital. However, the acquisition of Lexmark, which includes its debt, also puts Xerox on a scale to compete better, with the combined company expected to serve more than 200,000 clients in 170 countries. The deal is likely to close in the second half of 2025, with Xerox paying for the deal via a combination of cash and debt financing.

• Starbucks: Boycotts abroad, strikes at home

  The Workers United union warned Starbucks that the five-day-strike, which began on Friday, will escalate daily, potentially reaching “hundreds of stores” by Christmas Eve. However, Starbucks officially stated that the strike is not expected to significantly impact store operations. The union is protesting numerous unfair labour practices and low wages, with negotiations having begun in April. The union claims the coffee chain had yet to present a serious economic proposal and called for a wage hike that Starbucks says is “not sustainable”.

Tech Companies

• Palantir, Anduril sound the horn, uniting tech firms to collectively bid for defence contracts

  The two defence technology firms have approached the likes of Elon Musk’s SpaceX and Sam Altman’s OpenAI, among others, in hopes of forming a new group in Silicon Valley to bid for Washington’s lucrative defence contracts, seizing a larger share. The group, which consists of Palantir, Anduril, and a dozen others, could start announcing strategic partnerships next month, bringing a “Silicon Valley-style disruption” to the industry. The fact that the group contains rival firms marks it as the most coordinated attempt so far for Silicon Valley to claim more space in the defence sector.

• Apple nears USD4 tril valuation

  The tech giant is nearing that historic valuation on the back of positive investor sentiment after Apple’s AI enhancements finally arrived to rejuvenate sluggish iPhone sales. The positive sentiment has buoyed the phone maker past Nvidia and Microsoft with a 16% rally in shares that started in early November. Analyst expectations are that iPhone sales will rebound in 2025, driven by the new features that will be included along with Apple Intelligence. Athe time of writing, Apple was valued at USD3.85 tril.

Shorts:

1. Cadbury ends 170-year streak after losing royal warrant

   The chocolatier is now no longer recognised for providing goods or services to the monarchy, as a result of their US owner, Mondelez International still operating in Russia. King Charles was urged by a pro-Ukraine group to withdraw warrants from companies still operating in Russia after the invasion. The King has granted royal warrants to 386 companies, including retailers John Lewis, Heinz and Nestle - view the full list here.

2. UOB, OCBC make one-off payouts to help staff with cost of living

   The two banks will be making said one-off payments to their junior employees to help with day-to-day expenses, with the former making the payout of one month’s bonus to about 6,000 staff, while the latter is looking at paying out SGD1,000 to about 4,000 staff. This marks the second time UOB is doing this, with the current payout likely to cost the bank SGD8 mil.

5. FOR YOUR EYES 📺

1. Jackie Chan is back in Karate Kid: Legends

2. Take a tour of a Star Wars Jedi-inspired home in Subang Jaya