☕️ Petronas to slash 5,000 jobs

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

For the first time in six years, the number of licensed restaurants in Hong Kong has seen a year-on-year decline, according to a Post analysis. As of the end of April, there were 17,154 valid restaurant licenses, representing a drop of 255 compared to the same month last year. This decrease is attributed by experts partly to Hong Kong residents travelling to mainland China and tourists favouring lighter food options like street snacks. A comparison of license numbers indicates that 2,034 restaurants closed in the past year, while only 1,779 new licenses were issued.

A 2024 analysis by OAG revealed that 82% of travellers worldwide are enrolled in at least one airline loyalty program. Delta SkyMiles leads as the world's largest, boasting over 120 mil members. In the US, as of 2023, 31 mil airline credit cards had been issued, according to Airlines for America, with 57% of points accumulated through cardholder spending. This combination of air travel and credit card usage has transformed airline loyalty into a significant revenue stream, generating over USD25 bil (RM106.3 bil) in yearly revenue according to federal airline filings, to the extent that carriers would struggle to be profitable without it.

An astounding 30 trillion airline points were estimated to go unused globally in 2018 by the McKinsey consulting group, representing billions of dollars in unredeemed flights. While these points are listed as liabilities on airline balance sheets, the ones that ultimately expire or go unredeemed become "free money" for carriers. Airlines retain the revenue generated from issuing these points without the corresponding expense of fulfilling a reward. The cost to maintain these unredeemed points within their systems is virtually zero. This phenomenon translates into significant sums: a 2024 federal filing showed Southwest Airlines held USD4.8 bil in unused points, while Delta Air Lines had approximately USD9 bil, highlighting a substantial financial advantage for airlines.

3. IN MALAYSIA 🇲🇾

Petronas cuts about 10% of its workforce
Rightsizing, or downsizing in action. Petronas confirmed that it will be cutting about 10% of its workforce, blaming the retrenchment on falling crude prices and market volatility that has impacted its profits. Petronas CEO Muhammad Taufik revealed that “upward of 5,000 people” will be let go, and the state-owned oil & gas company will also freeze hiring until December 2026. Moving forward, the future is gloomy for Petronas, partly due to a continued decline in Brent crude prices.

Tun Dr Mahathir to create another Malay ‘party’
He’s turning 100 next month and he still hasn’t given up. After creating the Malay-only Bersatu and Pejuang parties, former PM Tun Dr Mahathir is looking to create a Malay secretariat committee as a ‘big umbrella’ to “save the Malays”, and possibly rope in Perikatan Nasional (PN)’s component parties — Bersatu and PAS. Mahathir said the committee would serve as a platform to address issues affecting the Malay community that the government had failed to resolve. Quoting Mahathir - “They (Malays) need fighters to champion their cause. Right now, they don’t have a dedicated fighter. We’re not concerned with other problems, we just want to focus on one struggle — the struggle to save the Malays.” At this rate, the Guinness World Record should be given to Mahathir for the number of political parties/coalitions created.

It is getting tiring how politicians are utilising the so-called Malays’ struggle to stay relevant. But are Malays the most tertindas race in Malaysia? Unfortunately, yes. The Malays, who are grouped within the Bumiputera ethnicity, have the lowest monthly mean income in 2022 at RM7,599, compared to the Chinese (RM10,656) and the Indians (RM8,950). Bumiputeras also have the lowest mean income growth at 2.3% compared to the Chinese (2.5%) and Indians (2.9%). However, are other races to be blamed for Malays’ hardship? Sometimes the enemy is within.

Former Head of Economics at the Securities Commission Malaysia Dr. Muhammed Bin Abdul Khalid’s take on opportunity hoarding.

Wave of public transport changes

• Housing on top of train stations

  PM Anwar Ibrahim proposed that new people’s housing projects be developed on or near public transport stations, in a move to encourage more people to use public transport. He added that amendments to the law need to be made to enable housing to be built on top of public transport stations. At a separate event, Transport Minister Anthony Loke stated that the usage of public transport in Malaysia is only at a measly 20%, far below the 40% target set in the National Transport Policy 2019-2030. Coming back to PM Anwar, the proposal would mean a more sustainable and organised urban lifestyle.

• Guard rails to be installed at all train stations
  Following the death of a Taiwanese who fell onto the train tracks at Pusat Bandar Puchong LRT station, Transport Minister Anthony Loke announced that platform guard rails will be put up at all train stations to prevent unwanted incidents. Such guard rails have been installed at newer MRT stations and the Kuala Lumpur Monorail Line. However, guardrails are not installed at LRT lines, including both the Ampang and Kelana Jaya Lines. The minister did not give a clear indication about the budget needed.

The vape dilemma
Kuala Langat MP Dr Ahmad Yunus has called for the police to probe US-based Ispire Technology Inc., which was recently awarded the country’s first nicotine manufacturing license (including vape) by the Malaysian Investment Development Authority (MIDA). The suggested investigation by Dr Ahmad Yunus mainly targeted whether the license issued by MIDA covers the manufacturing of cannabis products, as Ispire also produces such products elsewhere. If yes, then it will contradict Malaysia’s stand against drugs (including cannabis) and the rule of law (cannabis-related products are subject to the Dangerous Drugs Act 1952 (DDA)).

In other vape-related news, the Royal Malaysian Customs Department (RMCD) has seized RM1.33 mil worth of vape devices and flavoured liquids at the North Butterworth Container Terminal (NBCT) in Penang, after they were falsely declared as plastic goods. In a separate operation, another RM3.64 mil worth of vape devices and flavoured liquids were also confiscated by the RMCD at Port Klang, Selangor. Similar deceptive tactics were used by the syndicate involved, including misdeclaration of goods on import documents.

Business

• Malaysia’s largest cage-free chicken farm to be completed in 4Q2025

  Huat Lai Resources Bhd plans to develop the country's largest cage-free egg production facility in Malacca, which will house 200,000 layers in a multi-tier aviary system. The new facility will quadruple the company’s current cage-free capacity of 60,000 hens. Cage-free hens are given the freedom to move in open environments, which improves animal welfare and food quality. According to the European Food Safety Authority, cage-free egg farms have up to a twenty-five times lower rate of contamination by key Salmonella strains.

• EssilorLuxottica to acquire local optical brands

  Good news for local optical retail chains A-Look, Seen and OWL as French-Italian eyewear giant EssilorLuxottica has acquired the brands for an undisclosed amount. The deal will look to integrate the network of stores owned by the three brands, amounting to more than 90 stores across Malaysia. The acquisition of the omnichannel and multi-branded stores will complement EssilorLuxottica's position in Malaysia, where it has both wholesale and retail activities. EssilorLuxottica owns about 150 brands, including Ray-Ban and Oakley - view its portfolio here.

4. AROUND THE WORLD 🌎

Trump antics
Trump bans 12 countries from entering the US
Nationals from 12 countries are now banned from entering the US: Afghanistan, Myanmar, Chad, the Republic of Congo, Equatorial Guinea, Eritrea, Haiti, Iran, Libya, Somalia, Sudan and Yemen. Trump said that these bans are needed to protect against “foreign terrorists” and other security threats. Meanwhile, nationals from Burundi, Cuba, Laos, Sierra Leone, Togo, Turkmenistan and Venezuela will be partially restricted from entering the country. The ban will not apply to those who already have visas, lawful permanent residents of the US, or teams travelling for the World Cup or the Olympics. Those with special visas to escape persecution in Iran or for assisting the US military effort in Afghanistan are also exempted. Trump also did this before during his first term in office, where he banned travellers from 7 Muslim-majority nations from entering the US, a policy that went through several iterations before it was upheld by the Supreme Court in 2018.

Trump still being sus about Biden
Trump has called for an investigation into previous US President Joe Biden’s actions during his presidency, alleging that aides of conspiring to deceive the American people about Biden’s mental state and health. Trump and his Republican allies have long questioned Biden's mental acuity and have attempted to overturn some of the presidential pardons and federal rules issued at the end of his term in office. Biden, who is now 82 and fighting advanced prostate cancer, slammed Trump's move as "ridiculous" and “distracting the nation”, but weren't people already suspicious of his health during his tenure? Scrutiny over his mental and physical capacity has also intensified in recent weeks as a new book accused an inner circle within the former administration of covering up his "physical deterioration" during his ill-fated re-election campaign last year.

Trump’s pricey visa fast-pass
The Trump administration is considering a USD1,000 fee for tourists and other non-immigrant visa applicants seeking an expedited interview appointment. In other words, cutting the queue. As it is, individuals seeking to visit the US on tourist and other non-immigrant visas already pay a USD185 processing fee. However, the State Department’s legal team said there was a “high risk” it would be rejected by the White House budget office or struck down in US courts as, apparently, setting a fee above the cost to provide the service “is contrary to settled Supreme Court precedent”. Must everything be like a business transaction in the US?

Population struggles
Fewer and fewer Japanese babies
Japan’s demographic crisis is now more urgent — latest data showed that their annual number of births dropped below 700,000 for the first time since they began keeping records in 1899. The fertility rate — the average number of children a woman has in her lifetime — has also fallen to a record low of 1.15, well below the rate of 2.1 needed to keep the population stable. While the number of marriages rose for the first time in 2 years, the overall downward trend remains. This is a major concern because in Japan, the key factor influencing birth is largely marriage. If current trends persist, Japan’s population of about 124 mil is projected to fall to 87 mil by 2070, when 40% of the population will be 65 or over. A shrinking and ageing population could have serious implications for the economy and national security of a country, but the struggles of modern life, like job security and the rising cost of living, put off many singles from building a family.

Vietnam: It’s OK, you can make more babies!
Meanwhile, in Vietnam, the government decided to scrap its longstanding two-child policy as it aims to reverse its declining birthrate and ease the pressure from an ageing society. The birth rate has reportedly started to fall in Vietnam, with a downward trend visible between 1999 and 2022, though the birth rate in that period was about 2.1 children per woman. In 2024, the country’s birthrate reached a record low of 1.91 children per woman. A decline in population is not ideal for Vietnam, as it looks to sustainably strengthen its economy and national security in the long run. The declining birthrate is most pronounced in urban areas such as Ho Chi Minh and the capital, Hanoi, where the cost of living is the highest in the country.

Shorts

1. Saudi authorities strengthen heat mitigation efforts as Haj pilgrims face 40°C sun

   The most arduous portion of the Haj pilgrimage takes place in Mecca, Saudi Arabia, with 1.5 million Muslims from around the world converging on Mount Arafat for a day of prayers and Quran recitals this year. With temperatures exceeding 40°Celsius, the Saudi authorities upped heat mitigation efforts, aiming to avoid a repeat of last year’s Haj, which saw 1,301 pilgrims die as temperatures reached 51.8°C. More than 40 government agencies and 250,000 officials were deployed, shaded areas were expanded by 50,000 square metres, thousands more medics are on standby, and more than 400 cooling units will be deployed.
   Here’s an interesting read on the holy water, Zamzam, produced from a well near the Kaaba.

2. Procter & Gamble to ax 7,000 due to trade war pressure and low demand

   Tariff uncertainties have led FMCG giant Procter & Gamble (P&G) to cut 7,000 jobs — around 6% of its total workforce — over the next 2 years. The firm will also be exiting some categories, brands, and product forms in individual markets. The plan comes at a time when the company, along with several other consumer goods firms, are anticipating higher costs due to the trade war and battling muted consumer demand. The company had about 108,000 employees as of June 30, 2024, with the job cuts accounting for roughly 15% of its non-manufacturing workforce.

3. Columbia University next victim of funding cut

   Another prestigious higher-education institution is in peril under Trump’s administration — New York’s Columbia University is now threatened with having its accreditation stripped off for allegedly ignoring the harassment of Jewish students and tolerating campus anti-Semitism during protests against Israel’s war in Gaza. The university could potentially lose access to federal funds, and students attending the university would also not be able to receive federal grants and tuition loans. In March, the Trump administration had already put USD400 mil of Columbia’s funding under review, prompting the university to announce a package of concessions to the government around defining anti-Semitism, policing protests, and conducting oversight for specific academic departments.

5. FOR YOUR EYES 📺

1. Moments of the great Michael Scott being a wholesome boss instead of an obnoxious dufus.

2. When you mess with the wrong guy, your product will go viral for the wrong reasons. The comments are hilarious.

3. Djoker still has it in him.

4. Weekend activity with your partner. Happy weekend folks!