☕️ Perodua undertaking detailed internal assessment following major safety scandal at Toyota's Daihatsu

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

89 — Malaysia’s ranking in the Human Freedom Index 2023, in a report published by the Fraser Institute and the Cato Institute. The index looks at 86 distinct indicators of personal and economic freedom to determine the ranking. In the South Asia region, Singapore is ranked 1st, while Malaysia is ranked 6th. Read the full report here. 

Malaysia could have saved RM291 mil in 2023 by recycling instead of discarding nearly one tonne of goods, according to SWCorp CEO Datuk Ahmad Husaini Abdul Rahman. The discarded items make up 6.96% of the national recycling rate, with plastic (22%) and paper (15%) being the majority. Ahmad Husaini emphasises the need for nationwide solid waste separation activities to achieve the goal of a 40% national recycling rate by 2025, currently at 35.38%. ♻️💰

USD2 bil — the market size for Christmas trees in the US annually. About 25 mil trees are sold annually at an average price of USD78. There are 15+ varieties of Christmas trees and it’s a really long cycle to grow — one tree takes 8-10 years to reach a mature height of about six feet.

3. IN MALAYSIA 🇲🇾

Alleged leakages in flood mitigation projectA registered cosmetic company is under scrutiny for allegedly posing as a flood mitigation consultant, diverting millions from an RM16 bil government project designed to address nationwide flooding issues. Additional allegations involve law firms in Klang and Batang Kali accused of facilitating the money transactions by legalising payouts through agreements with companies awarded flood mitigation projects. The revelations raise concerns about the misuse of funds meant for critical infrastructure projects.

Bersatu Information Committee member Badrul Hisham Shaharin, better known as Chegu Bard, lodged a police report at the Dang Wangi police station on the misappropriation of funds in the project. Chegu Bard claimed commissions that companies acquiring projects were required to pay ranged from 3% to 8% and also claimed that RM1 bil in leakages have been detected. He added that the troubles started last year when former Environment and Water Minister Tuan Ibrahim Tuan Man was accused of awarding a company an RM7 bil flood mitigation project.

New HR Minister Steven Sim gets the ball rolling

1. The Human Resources Ministry, led by Minister Steven Sim Chee Keong (former Deputy Finance Minister II), is set to implement the Progressive Wage Policy pilot project aimed at ensuring more dignified and fairer salaries for workers. Collaborating closely with the Economy Ministry, the initiative aligns with Sim's focus on strengthening welfare, improving skills, and enhancing worker productivity. These measures represent a commitment to labour market reforms and the pursuit of comprehensive strategies for the benefit of workers.

2. The Human Resource Development Corp’s (HRD Corp) controversial Skills Passport programme has also been scrapped by the Ministry of Human Resources. Sim said the project has been delayed for over a year and is no longer suitable for implementation. A representative from the Ministry of Finance (MOF) serving on the HRD Corp board expressed concerns about the project’s failure to comply with procurement procedures and advocated for its termination.

3. Additionally, the ministry will be drafting the country's first National Human Resources Policy. The policy aims to serve as a guide to enhance worker welfare and to improve skills and productivity.

Fatal stabbing incidents

1. Out of jealousy: A 44-year-old man stabbed a 26-year-old woman to death in broad daylight after eating at a restaurant in Klang. Selangor deputy police chief Deputy Comm S. Sasikala Devi said the suspect and victim were lovers. The investigation is still ongoing.

2. Out of anger: A 29-year-old man stabbed a 42-year-old woman with a machete in the Raja Uda area of Butterworth after the latter allegedly interfered in his romantic relationship with the woman's daughter.

All in the name of love. Damn.

Business

1. Top Glove Corp Bhd reported its sixth consecutive quarter of net loss of RM57.7 mil for 1QFY24 ended Nov 30, 2023, from a net loss of RM157.6 mil from a year earlier, thanks to improved operational, quality and cost optimisation efforts. Revenue also dipped slightly to RM493.6 mil from RM632.5 mil. Top Glove did not declare any dividend. The world's largest glove manufacturer is projecting a return to profitability as early as May next year, driven by increased demand for rubber gloves and rising prices. This positive outlook is attributed to the depletion of excess glove supplies accumulated globally during the pandemic. The company anticipates a favourable market environment, signalling a potential recovery in its financial performance. But gone were the days when Top Glove was the second most valuable company on Bursa, behind Maybank. View the earnings report here.

2. The government imposed an indefinite ban on vessels owned by Israel-based shipping company ZIM from docking at all Malaysian ports. Prime Minister Anwar Ibrahim instructed the Transport Minister to enforce the ban with immediate effect in response to Israel’s violation of basic humanitarian principles and international law over the ongoing continued massacre and brutality against the Palestinian people. Anwar also said Malaysia imposed restrictions on any vessel en route to Israel from loading its cargo at any Malaysian ports.

Shorts

1. NADMA forecasts monsoon surgeThe National Disaster Management Agency (Nadma) forecasts a monsoon surge on the east coast of Peninsular Malaysia until Monday (Dec 25), potentially bringing continuous rain, strong winds and rough seas in the South China Sea. Thunderstorms with heavy rain and strong winds are also expected to occur in other states in the evenings until night during this period. Stormy Christmas, not White Christmas incoming.

2. More avenues to get the Covid-19 vaccineTo manage the surge in Covid-19 cases recently, the Ministry of Health has set up a total of 234 Vaccination Centres (PPV) in Health Clinics (Klinik Kesihatan) nationwide. Health Minister Dr Dzulkefly Ahmad said the update of the Covid-19 vaccine is currently voluntary but encouraged, especially for the high-risk groups.

3. TTDI-Deloitte MRT stationThe TTDI MRT station on the Kajang line will be called TTDI-Deloitte MRT from Jan 1, 2024, after Deloitte Malaysia signed an agreement with MRT Corporation, securing the naming rights to the TTDI MRT station. While the value of the agreement is not disclosed, the naming rights can cost up to RM3 mil for a three-year period and this cost was quoted back in 2015.

4. AROUND THE WORLD 🌎

Trump’s re-election dream in perilFormer President Donald Trump was ruled by Colorado’s Supreme Court as ineligible to be on the ballot for the 2024 US Elections. The disqualification on the grounds of Trump’s connection to the 2021 Capitol Hill assault marks the first time in US history that the 14th Amendment, which bars anyone who “engaged in insurrection” from public office, was used to disqualify a presidential candidate. The legal bid was made in multiple US states and was initially backed by liberal activists before some conservatives embraced the theory in recent months. More info on the 14th Amendment here.

Trump has vowed to appeal the issue to the Supreme Court of the United States (SCOTUS), which leaves the judiciary body with a deadline of January 4 for a decision of whether to do nothing, refuse to add the case to the docket, or agreeing to hear the case and issue their own decision. For a look at the implications of each choice, see here.

List of Epstein associates to be made publicNew York Judge Loretta Preska, in the latest filing of a defamation lawsuit by Virginia Giuffre against Epstein associate Ghislaine Maxwell, has called for the list of over 170 names of convicted sex offender Jeffrey Epstein’s associates to be made public after the list was sealed under a court order in 2017. Preska noted that many of the individuals in the lawsuit have already been publicly identified by the media or in Maxwell’s criminal trial. Any names on the list have until January 1 to appeal to have their name removed.

Business in Japan:

• Toyota’s Daihatsu to halt vehicle shipments amid widening safety scandalAll vehicle shipments both locally in Japan and overseas will be halted after an investigation into a safety scandal found issues on 64 vehicle models, including 22 sold under the Toyota brand. The investigation previously revealed that Daihatsu rigged side-collision safety tests, but recent findings suggest the scope of the scandal is far greater. Toyota will be conducting a review of management and business operations, along with a review of Daihatsu and its organisational structure, in a “fundamental reform” to revitalise Daihatsu. Daihatsu produced 1.1 million vehicles in the first 10 months of 2023, with 660,000 vehicles sold, making up 7% of Toyota’s sales. Daihatsu became a wholly-owned subsidiary of Toyota in 2016 — an interactive history of Daihatsu here.

• Electronics giant Toshiba delists after 74 yearsThe conglomerate, once the face of Japan’s dominance in electronics, exited Tokyo’s stock exchange after being bought out by a group of Japanese investors led by state-backed Japan Investment Corp for USD14 bil. This brings Toshiba back under domestic hands after overseas activist investors paralysed the business due to protracted battles. Chief executive Taro Shimada, who will be staying in his role following the buyout, said the firm is expected to focus on high-margin digital services. The stock ended trading at 4,590 yen.

Tech fines:

• Russian court fines Google USD50.8 mil over “fake” infoThe fine was issued to Google for failing to delete “fake” information about the conflict in Ukraine, among other topics, according to Russian news agency TASS. This marks the latest in Russia’s clash with foreign tech firms over content, censorship, data, and local representation. Other topics that Google failed to remove were allegedly “extremist content” and “LGBT propaganda”.

• Sony fined USD14.8 mil by French antitrust bodyThe fine was due to Sony’s abuse of its dominant position in the market for the supply of video game controllers for its proprietary PlayStation 4. On a separate note, the Japanese firm reported “strong momentum” for its PlayStation 5 console, with lifetime sales exceeding 50 million units on the back of the firm’s “best-ever” Black Friday sales period for the console. The firm aims to see 25 million units sold by the end of March, which also marks the end of the current financial year.

Shorts:

1. Putin: Russia ready to talk on Ukraine The Russian President said the nation would be prepared to talk to Ukraine, the US, and Europe about the future of Ukraine, reiterating a previous position, but declared that Russia would defend its national interests. These include not abandoning the “goals of the special military operation”, as well as “not giving up what is ours”. Russia currently controls 17.5% of what was Ukraine when the USSR collapsed in 1991.

2. Starbucks CEO: Protestors influenced by misrepresentation on social media Laxman Narasimhan, in a letter to employees, noted that many Starbucks stores have experienced vandalism, with protestors influenced by social media on the company’s stance on the Israel-Hamas conflict. The coffee chain is among several Western brands that have come under pressure, with consumers calling for them to take a stance about the conflict, with some even facing boycott campaigns. Starbucks also reiterated that it “unequivocally condemns acts of terrorism, hate, and violence”.

3. Rolex fined USD100 mil by France for online sales ban France’s competition regulator imposed the fine on the local subsidiary of Rolex due to a block on retailers selling online. The regulator considered the prohibition as a restriction of competition, rejecting the argument that the ban was in place to combat counterfeiting and parallel trade. The regulator’s counter-argument was that Rolex’s competitors, who face the same risks, authorise online selling “under certain conditions”.

5. FOR YOUR EYES 📺

1. With the monsoon season around, this may be the best way to protect your car. The only risk is leakage or the car floating away. The price starts from RM168.80 - you can get it here.

2. An alternative theory of how the Moon was formed. The Moon may have formed in a matter of hours after a Mars-sized body collided with Earth.