☕️ Plot twist: 90% of job scam victims were actually scammers

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

Looks like building and maintaining an emergency services hotline isn’t cheap (in capitalist terms - lucrative). Telekom Malaysia Bhd (TM) was awarded an RM1.25 bil contract to develop and operate a new emergency call system, Next Generation Emergency Services (NG999), for the next 12 years, working out to an average of RM104.2 mil per year. NG999 is said to be a strategic digital platform for the public to access emergency services from the police, health ministry, fire department, maritime enforcement agency, and the civil defence force. On a related note, according to Deputy Communications Minister Teo Nie Ching, over 15,000 prank calls are made to emergency response services each month. Despite a 50% decrease from 31,000 calls per month in 2022, it’s still a lot of prank calls.

Some thought experiments on the above. Assuming the cost of 1 prank call is RM10 (i.e. attending, filing an administrative report and investigating the call), this would incur an annual cost of RM1.8 mil per year, RM21.6 mil over a 12-year period (without adjustment for inflation). A small entertainment for pranksters, a big expense for rakyat.

About 90% of the 550 vehicles seized in the past three years had modified fuel tanks used for smuggling petrol and diesel, according to Kelantan Domestic Trade and Cost of Living Ministry director Azman Ismail. Azman said these vehicles, often older models without road tax, can hold up to 200 litres of fuel. Discussions with agencies like the Road Transport Department are planned to address this issue. In the first half of this year alone, Azman reported that 29,932 litres of RON95 petrol and 68,858 litres of diesel were seized from January to June 29, 2024.

The hospital waiting list in England has increased slightly, reaching 7.57 mil at the end of April, up from 7.54 mil the previous month. This backlog is a significant election issue, with Prime Minister Rishi Sunak prioritising it as one of his main governmental goals. Over 300,000 patients have been waiting for treatment for over a year.

3. IN MALAYSIA 🇲🇾

Cheaper medical, health insurance in the making by BNM
BNM is requiring insurers and takaful operators to add cost-sharing features to new medical and health insurance products starting Q3 this year. This aims to handle rising premiums, promote responsible use of health services, and reduce false claims. BNM is also establishing an integrated claims database to help insurers manage their costs, compare hospital charges, and monitor any claim inflation. The database will also provide info on medical procedure costs to assist consumers in making informed decisions on treatment options. Germany has opted for cost-sharing as a health care financing mechanism since 1923, and their health care is still standing strong — learn more here.

The Bar will go down fighting to challenge Najib’s pardon
The Malaysian Bar filed a legal challenge concerning Najib Razak’s pardon. According to Bar lawyer Zainur Zakaria, an amendment was made in 1994 to the Constitution to stipulate that the King has to act on the Pardon Board’s advice instead of making independent pardon decisions. The AGC and Najib’s legal team are arguing that the courts shouldn’t review the King’s constitutional power to pardon, but the Bar’s judicial review targets the Pardon Board’s advice, which led to the sentence halved and fine reduced by 75% – and not the King’s power per se. The case is important because it addresses whether the courts can review the advice given to the King regarding pardons, something that has not been decided in our courts before. The Bar wants transparency to confirm that the sentence reduction (aka Najib’s ‘wfh’) was justified. And we, the rakyat, also want that.

Forest City: The City for TV shows and unfulfilled plans
In 2006, the mega-development project Forest City was projected to feature luxurious apartments, a waterpark, and hotels – costing the developers USD100 bil to build. Only 15% of the planned property had been completed, and most finished apartments are not even lived in. It’s essentially a ghost town. But fret not! Where luxury living has failed, documentaries and TV shows have stepped in. The ‘tourist hub’ serves as a set for a few reality shows and documentaries. Popular Netflix reality show, “The Mole”, filmed an episode there for their second season, which debuted last week. Probably the world’s most expensive studio. Not what the developer had in mind.

Fertility rate dropped drastically over a decade
The Department of Statistics Malaysia (DOSM) indicated in a report that our fertility rate has dropped from 2.1 children per female in 2010 to 1.6 children per female in 2022. Various factors contribute to this decline, including economic reasons and lifestyle choices. Malaysia’s not the only one, though. Japan, Australia, Singapore, Indonesia, and other countries have also reported low fertility rates. But it’s not a problem, is it? Many are more conscious and realistic about family sizes now, aware that more mouths to feed = more expensive. However, experts say that the global fertility crisis will pose a problem for the economy down the line - read here.

Plot twist: 90% of job victims are actually a part of syndicates
Deputy Foreign Minister Mohamad Alamin revealed that about nine out of ten Malaysians who claim to be victims of human trafficking are actually involved in international fraud syndicates. The victims are recruited by the syndicates through social media, offering huge salaries, free flights, accommodation and gambling credits. They then conduct various scams at their destination. When they face issues such as abuse from employers or are not allowed to return home, they then play the victim and claim they have been deceived. The Foreign Ministry has rescued 659 Malaysians working the scams abroad, but around 2,000 are still trapped at their “destinations” and will take time to trace.

Business news

1. MyDigital ID contract awarded to Pertama Digital Bhd
   The national digital ID platform, MyDigital ID, awarded Dapat Vista (M) Sdn Bhd (a subsidiary of Pertama Digital Bhd) a contract to provide public online digital identity onboarding registration services. Dapat would be responsible for user support and the continuous availability of the service for four months, with the option to extend it to three more. The value of the deal was undisclosed, but Pertama says the contract will strengthen their assets. MyDigital ID was established under Mimos Bhd for a whopping RM80 mil as a tool to verify and authenticate one’s digital identity, but it’s not a replacement for MyKad. Only an extension to ‘verify our identities online’. What’s the point of this again when we have our physical MyKad?

2. No e-invoices are needed for businesses earning below RM150,000

   Micro, small, and medium enterprises (MSMEs) are not mandated to issue e-invoices if they earn below RM150,000 per year and are only encouraged to participate in e-invoicing in line with digitalisation. The government says they’re aware of the challenges that come with e-invoicing and will not subject the traders to upgrade their tech and jump the knowledge barrier regarding the e-invoicing mechanism. Imagine your kedai runcits having to submit e-invoices when they could barely contain inflation. The government also says that dealers who choose to develop their own system or use a solutions provider will be given tax incentives.
   Learn: e-Invoicing in Malaysia: A Complete Guide For Your Business

4. AROUND THE WORLD 🌎

Political spheres

1. In the land down under, Senator Fatima Payman, 29, went against her party, The Australian Labor Party, by joining the Green Party and independent senators to support a motion on Palestinian statehood. Ms. Payman was suspended from her party room — in other words, “exiled.” An interesting fact — Josh Burns, a Jewish Labor MP from Melbourne, has a different worldview from Ms. Payman when it comes to issues such as Palestinian statehood. Despite this, he has been one of her biggest supporters. The Australian Labor Party has strict penalties for those who undermine its collective positions. Acts of defiance can lead to expulsion, which has been a precedent for the past 130 years. The last time one of its politicians tested the waters while in power was before Ms. Payman was born.

2. France’s snap election is becoming an interesting one — with Europe skewing towards right-wing politics, some French are determined to reduce the far-right party France’s National Rally (RN) dominance from the elections. About 180-plus candidates have pulled out of the second-round of voting for France’s 577-seat national parliament. RN will need 289 seats for a majority, which is looking slim by the minute. However, there is a potential for a hung parliament, which could result in policy paralysis for the rest of Macron’s presidency till 2027. The leftists and the centrists are also forming alliances to stop RN from gaining further ground. Luckily no SDs.

Tragedies in Asia

1. Monday night, a man drove a vehicle into a crowd of people in the South Korean capital, Seoul, killing at least nine and injuring four. Local media reported that the car was driving in the wrong direction, causing a collision with two other vehicles before hitting pedestrians. The driver, 68, was arrested at the scene. He told the police that the car suddenly accelerated. The case is being investigated. Yonhap, South Korea’s new agency, revealed that pedestrians in South Korea accounted for 35% of all road deaths in 2022 – a high share compared to other OECD countries.

2. In India, a stampede at a religious gathering in its northern region has killed more than 116 people. The incident took place at a satsang (a Hindu religious event) to celebrate the Hindu deity Shiva in Hathras district in Uttar Pradesh state. District magistrate of Hathras Ashish Kumar said the stampede occured as people were leaving at the end of the event.
   There’s stampede, and there’s crowd crush - here’s the difference.

Business

1. Tesla’s price cuts paying off
   Tesla reported a 4.8% YoY decline in vehicle deliveries for Q2, better than expected (5%), thanks to price cuts and incentives boosting demand. Shares rose 4.5% in premarket trading despite a 15.5% year-to-date loss. Tesla delivered 443,956 vehicles, 4.8% lower than last year but up 14.8% from the previous quarter, surpassing Wall Street's average expectation of 438,019 deliveries.

2. Revolut is here to stay
   Revolut, the British fintech company, reported a record pretax profit of GBP438 mil in 2023, driven by solid user growth and a surge in interest-related income. Revenue nearly doubled to GBP1.8 bil, significantly boosted by interest income rising to GBP500 mil from GBP83 mil in 2022. The company filed its results on time for the first time in three years and is preparing for a potential initial public offering (IPO), aiming for a valuation exceeding USD40 bil. It was last valued at USD33 bil back in 2021. However, Revolut interim CFO Victor Stinga has kept mum on any timeline for an IPO. Revolut CEO Nikolay Storonsky, in an interview with CNBC, said the company is feeling confident about its chances of being granted a UK banking license that is still three years in the waiting.

3. Eurozone inflation slowed to 2.5% in June
   Eurozone inflation slowed to 2.5% in June, down from 2.6% in May, aligning with economists’ forecasts. While this decrease provides some relief, policymakers remain concerned about strong increases in services prices, which partly offset weaker growth in energy and fresh food costs. The European Central Bank, which started cutting interest rates last month, expects inflation to reach its 2% target by next year.

4. Inside Out 2 — new member of the billion-dollar box office club
   The Disney and Pixar latest animated feature has grossed USD1.014 bil worldwide as of Sunday, making it the highest-grossing film of 2024 and the first since Barbie topped USD1 bil last year. Inside Out 2 was also the fastest animated movie in history to have grossed USD1 bil. This is a much-needed win as none of Pixar or Walt Disney Animation studio movies had generated more than USD480 mil since 2019. Let’s see if it will overtake Universal’s The Super Mario Bros. Movie, which grossed more than USD1.36 bil.

5. FOR YOUR EYES 📺

1. As you plan your travels for the rest of 2024, remember to check for unwanted devices spying on you while you’re staying in hotels.

2. 20 years on (X&Y came out back in 2005), Fix You is still being sung by Coldplay as the band was joined by a very special guest.

3. Buatan Malaysia, world-renowned YouTuber Uncle Roger dropped a surprise in his latest video. The tables have turned - we can soon roast him. Watch the announcement here.