☕️ PAS v Bersatu: An intense war of words

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

Some good news for our national auto brand, as Proton reported its highest monthly sales volume in three years in Aug, with a total of 15,228 units sold. This brings the year’s total sales to 100,902, which also pushes Proton’s year-to-date market share to 19.5%. The new updated version of the Proton X50 saw 999 units delivered seven days after its launch, and with sales for the month rising 107.3% to 4,287 units, the X50 takes the crown as the most popular SUV in Malaysia. However, the big winner is still the Saga, which retains its position as Proton’s bestseller, with sales exceeding the 6,000-unit barrier for the second month in a row.

On other record-breaking news, Walmart’s US CEO reported that the company’s fastest delivery time this year was under five minutes. Data shared by the CEO also showed that one in fifteen orders fulfilled from stores reaches consumers in less than 30 minutes. The company is currently focused on ultra-fast delivery, looking to turn three-day delivery into same-day delivery across its network, which can reach 94% of the US population within three hours. While ultra-fast delivery will not be free, Walmart data also showed that fast delivery shoppers spend twice as much as the average digital customer.

Malaysia’s tourism industry contributed 15.1% to the national economy in 2024, having generated RM291.9 bil, growing 7.4%. The performance was supported by retail trade, which contributed 52.9% of the total, followed by food and beverages at 16.3%, with other services contributing 13.3%. Collectively, the three sub-sectors contributed 82.5% to the overall tourism industry. Domestic tourism expenditure also grew 25.1% in 2024, mainly contributed by shopping activities and the food and beverage sub-sector.

3. IN MALAYSIA 🇲🇾

Police seizes ecstasy worth over RM500 mil, enough to supply 12 mil addicts
The Bukit Aman Narcotics Crime Investigation Department scored a record-breaking haul of ecstasy for the year 2025 via multiple raids on drug labs and other premises. Dubbed “Ops Pine”, these coordinated raids which took place throughout Klang Valley saw 3.5 tonnes (or around 80% of a hippopotamus’ body weight) of ecstasy being seized.

Inspector-General of Police Mohd Khalid Ismail stated that this drug syndicate, which started operating since Jul this year, would rent premises in industrial areas and convert it to drug labs, with its products shipped to both local and overseas markets (such as Australia and Indonesia). Police believe this syndicate is connected to an international drug trafficking network and are still working to track down other syndicate members and uncover the extent of the network.

While the figures above may seem impressive, the police had earlier seized RM1.06 bil worth of meth weighing around 33,200 kg at Port Klang. The raid prevented the shipment of meth (enough supply for 166 mil drug addicts) from reaching Australia. Drug distribution and drug mule syndicates have been operating in Malaysia for a long, long time. Here’s a locally produced documentary showing the direness of the drug mule problem in our country:

PAS v Bersatu: An intense war of words
PAS held its own general assembly, the 71st Muktamar, which saw the party expressing its rejection of Muhyddin Yassin as Bersatu’s PM candidate. PAS deputy president Tuan Ibrahim Tuan Man expressed his opinion that any PM candidate would face heavy attacks, stating that political parties in the past have allowed the Yang di-Pertuan Agong to appoint the prime minister, in accordance with the constitution.

Meanwhile, Kedah menteri besar and PAS election director Sanusi Nor stated that PAS previously had to pay a huge sum to cover election costs, whereas there were allies who did not contribute anything. He added that PAS might need to fork up to RM1 mil to cover campaign costs in each parliamentary constituency during the upcoming elections. In response, Muhyddin Yassin’s former aide Marzuki Mohamad stated in his FB post that Bersatu had paid the election bills for the 15th general election and even provided PAS with financial support, adding that Sanusi’s previously quoted RM1 mil figure would be the bare minimum for an election’s expense, let alone winning it.

One could argue that former two-time prime minister Dr. Mahathir provided the best commentary on Perikatan Nasional’s internal bickering in his Facebook post, advising PN to focus on securing a majority in parliament before selecting the prime minister. Despite Dr. M’s mixed legacy among Malaysians, PN would do well to listen to this grand, 100-year-old politician who boasts actual experience serving as the nation’s PM, on two separate occasions.

Nik Nazmi: STPM and matriculation should be under MOHE purview
Amidst the discourse surrounding STPM graduate Edward Wong’s inability to secure his preferred study programme with Universiti Malaya under the UPU system, former minister Nik Nazmi has proposed that the STPM and matriculation programmes would be better off under the Higher Education Ministry’s care, as it would allow for a more fairer and transparent university admissions system. Nik Nazmi added, “A seeming increase in top scorers in school, without a commensurate, sustainable increase in university places, risks compounding disappointment and eroding faith in our institutions.”

Nik Nazmi also highlighted that while authorities have provided several “administratively sound” explanations on the matter, such problems were “symptomatic of a deeper problem” and should not be a zero-sum contest between affirmative action and meritocracy.

Meanwhile, the Universiti Malaya Association of New Youth’s seemingly wrong choice of words (they had reportedly used the word mansuhkan, or abolish) in suggesting a merger between the STPM and matriculation drew a huge backlash from Bersatu and UMNO. The student group was even being investigated by the police under the Communications and Multimedia Act 1998. While this won’t be the last education-related discourse in Malaysia, it’s important to note education’s essential role in developing Malaysia’s human capital. A report revealed shocking facts - in 2023, around 300,000 SPM graduates chose not to continue their studies, opting to be part of the gig economy instead.

Shorts:

1. Bad CCTV footage prevents police from identifying Rafizi's son’s attackers

   More than a month after the attack on former minister Rafizi Ramli’s son in a Putrajaya mall, IGP Mohd Khalid Ismail was reported as saying that the poor quality of the CCTV footage had hindered the identification of the assailants. Likewise, the liquid injected into Rafizi’s son has yet to be identified by the hospital (which is suspicious when considering a month has passed since the traumatic incident). For context, the attack took place following Rafizi’s meeting with a whistleblower during an investigation on a shady business deal.

2. Zetrix AI’s partnership with Jakim could make Malaysia global centre for Islamic AI

   Zetrix AI, formerly MyEG Services Berhad, and the creator of NurAI (aka the world’s first shariah-compliant AI model) is teaming up with the Department of Islamic Development Malaysia to create an AI platform that will help Jakim issue Islamic rulings (fatwas), halal certifications and Shariah advice. The partnership is set to promote Malaysia as a global centre for Islamic AI and Islamic digital economy with a value projected to reach USD 5.74 tril (RM24.06 tril) by 2030.

3. Majority of Malaysian manufacturers’ sales suffer due to US tariffs

   Just a month into the United States’ tariffs taking effect, three out of four Malaysian manufacturers are already reporting a notable hit to their export sales. According to a poll by the Federation of Malaysian Manufacturing, more than half of exporters affected by US tariffs reported under 10% drop in sales, about one-third saw a decline of between 10% and 30% in sales, while the remaining 13% suffered a drop of over 30% in shipments to the US. As a reminder, Malaysian goods exported to the US are subjected to a 19% tariff while transhipments now face an additional punitive 40% tariff. Fortunately for now, semiconductor exports to the US are exempted.

4. AROUND THE WORLD 🌎

Trump announces deal to allow TikTok in the US
The US President signed into effect an executive order extending the deadline for TikTok owner ByteDance to either divest or be banned, and will also be speaking to Chinese President Xi on Friday to confirm the details of an agreement to avoid a ban on the social media platform in the US.

He also shared that there was “a group of very big companies” that wanted to buy TikTok, with sources revealing that the consortium included names such as Oracle, Andreessen Horowitz, and private equity firm Silver Lake Management. The tentative agreement apparently includes the creation of a US-based version of the app, with the three investors named holding stakes in the new venture. ByteDance would also see its stake in TikTok reduced to below 20% to satisfy a US national security law, a law that Trump has been giving deadline extensions to buy time for a ByteDance deal. China believes the agreement to be a “win-win” deal, with the government to review TikTok’s technology exports and intellectual property licensing.

Israel in a mess
EU Commission proposes suspending free trade on Israeli goods as Gaza offensive begins
The trade agreement to be suspended would affect about USD6.9 bil (RM28.9 bil) of Israeli exports, which could result in up to about USD269 mil in duties per year. However, there is currently insufficient support among EU nations to pass the proposal, with a key sticking point being Germany. Also tabled was a proposal for a package of sanctions on two Israeli ministers, “violent” Israeli settlers, and 10 senior members of Hamas. The ministers are National Security Minister Itamar Ben-Gvir and Finance Minister Bezalel Smotrich.

This comes as the Israeli military started its ground offensive to take Gaza City. On that front, the Israeli military has announced it is opening an additional route for 48 hours that Palestinians could use to leave the city, though many are reluctant to follow Israel’s orders to move south due to the dangers along the way, dire conditions, a lack of food in the area, and the fear of permanent displacement.

Consulting giant BCG lambasted for its part in Gaza relocation plans
Boston Consulting Group (BCG) has been lambasted for its role in Project Aurora, which modelled relocation packages of about USD9,000 (RM37,696) per person for up to 500,000 Palestinians, something that was directly linked to the Gaza Humanitarian Foundation, a US and Israeli-backed aid mechanism. This was characterised as forced displacement and ethnic cleansing by legal experts and rights groups. While the firm reported that the work was unauthorised and had bypassed company governance, with two senior US partners dismissed and the CEO issuing an apology, NGOs suspended collaboration while lawmakers opened inquiries.

Ben & Jerry's co-founder leaves over Unilever silencing brand's Gaza stance
Co-founder Jerry Greenfield of the popular ice cream brand Ben & Jerry’s has resigned from the company after a falling out with parent firm Unilever over the conflict in Gaza. Fellow co-founder Ben Cohen shared Greenfield’s open letter, which claimed the brand, which was well-known for its social activism, had been “silenced and sidelined” by Unilever in recent years. Unilever, which is currently spinning off its Magnum ice cream unit that includes Ben & Jerry’s, has not commented. A Magnum spokesperson, however, said the unit “disagreed with Greenfield’s perspective” and is looking to engage both co-founders in a “constructive conversation”. While Cohen has not left the company, he did hold a protest demanding Unilever “free Ben & Jerry’s” to protect its social values.

Greenfield’s letter:

YouTube to top Disney's media revenue, bets on AI
20 years after its inception, YouTube, with its 2.7 bil users, has become the most popular way for Americans to watch TV, and is expected to eclipse industry leader Disney’s media revenue this year. This is backed by Google’s deep pockets and the platform’s content creation key: AI. YouTube spent most of its recent product launch event championing its video creators and revealing AI-enabled tools that would “either reimagine the production process or create new content entirely”, something that Hollywood fought against during a months-long strike in 2023.

YouTube’s top execs reiterated that the rapid expansion of AI would not replace the jobs of content creators, suggesting instead that making videos on YouTube be seen as a “viable, respectable, and sustainable career path”, considering the platform has paid out more than USD100 bil (RM418.85 bil) to content creators over the past four years. This AI push has contributed to YouTube capturing 13.4% of US viewership in Jul, compared to Disney’s 9.4%.

While YouTube parent Alphabet does not regularly report the platform’s revenue, it disclosed that combined YouTube ad and subscription revenue surpassed USD50 bil in the four quarters ending Sept 2024. In comparison, Disney made nearly USD60 bil in media revenue in 2024.

Shorts:

1. Singapore takes tougher stance on scam mules 
   The city-state will begin restricting access to key banking and telecom services for individuals linked to scam activities in a bid to target scam mules – people who scammers recruit to help move ill-gotten funds, or who allow their mobile phone lines or accounts to be used to conduct telephone and internet scams. The “facility restriction framework” will be implemented in phases starting Oct. Malaysia, learn.

2. Strip club operator RCI dodged over USD8 mil (RM33.51 mil) in taxes by bribing auditor with private dances 
   Five top executives of RCI Hospitality Holdings, including CEO Eric Langan, have been charged in connection with a criminal tax fraud and bribery scheme, with the five allegedly bribing a New York State Department of Taxation and Finance auditor and supervisor with complimentary trips to Florida with an allowance of up to USD5,000 (RM20,943) per day for “private dances at RCI-owned strip clubs”. The New York Attorney General’s office counted “at least 10 occasions since 2010” where RCI accountant Timothy Winata travelled to provide the bribes to the auditor. The alleged bribes helped RCI avoid paying over USD8 mil in city and state taxes from 2010 to 2024, due to favourable treatment in at least six separate sales tax audits. RCI has denied the allegations.

5. FOR YOUR EYES 📺

1. Made a random visit to Merdeka 118 a few weeks ago. Got to say it’s a really beautiful building. Rather surreal to be inside with barely anyone - it’s open to public btw, no special access.

2. TIL: Physics explains why water never sticks to lenses.

vt.physics

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