☕️ PMX's RM500 bil grand plan to make Malaysia a semiconductor hub

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

New York City is now home to 349,500 millionaires, the most in the world, according to a ranking by immigration consultancy Henley & Partners. With a population of 8.2 mil, this means one in 24 residents is a millionaire, a 48% increase from a decade ago. Additionally, New York has 60 billionaires, making it the city with the second-highest number of ultra-wealthy residents, just behind the Bay Area's 68 billionaires. Our neighbour down south, given its smaller population of 5.92 mil residents, Singapore, also shares New York City's statistic of having one millionaire for every 24 people. Damn. But, unofficially, we might have a lot more millionaires and billionaires too.

Bayer has paid over USD10 bil to settle more than 110,000 claims that its weedkiller, Roundup, is carcinogenic and has set aside an additional USD6 bil for outstanding claims. The irony is the weedkiller was actually Monsanto’s, an American agrochemical giant, which Bayer acquired six years ago for USD63 bil. It is widely considered one of the worst mergers in history. Around 56,000 lawsuits are still active, primarily in Missouri, Monsanto’s home state.

Housing and Local Government Minister Nga Kor Ming stated that 84 new fire stations are needed to improve the quality, capability, and efficiency of the Fire and Rescue Department's services nationwide. Currently, Malaysia has 337 fire stations, with the fire risk index used as a benchmark for determining the need for more. There are nearly 15,000 firefighters across the country, with most allocated positions nearly fully filled. Looking for a career change?

3. IN MALAYSIA 🇲🇾

Two senior PDRM officials charged for covering up an Israeli’s firearm purchase
Senior PDRM Bukit Aman officials – Assistant Commissioner Chin Khiam Kong and Deputy Superintendent Suhairon Abdullah, were charged in the KL Sessions Court for allegedly receiving a total of RM1.25 mil in bribes to cover up a criminal case involving an Israeli citizen's firearm purchase. Both officers pleaded not guilty to the charges.

The charges stated that Chin and Suhairon jointly agreed to accept RM1 mil from Khoo Zixian to halt the investigation into his criminal case. Additionally, Chin faced a separate charge of accepting RM250,000 to cover up a commercial investigation. The prosecution suggested bail of RM100,000 for each accused, with the additional condition of passport surrender due to the seriousness of the offence. Defence lawyers requested lower bail amounts and argued against the passport surrender condition. The court set bail at RM40,000 for each accused, with one or two sureties and additional conditions proposed by the prosecution. The case will be mentioned again on July 30.

The National Semiconductor Strategy poised to attract RM500 bil in investments
Our semiconductor industry is poised for significant growth under the National Semiconductor Strategy (NSS), aiming to attract RM500 bil in investments in its first phase, according to PM Anwar Ibrahim. The NSS, described as a dynamic and evolving plan, aspires to position Malaysia as a major global technology player, especially in Southeast Asia. The strategy, structured in three phases, will initially focus on domestic direct investment (DDI) in integrated circuit design, advanced packaging, and manufacturing equipment, while foreign direct investment (FDI) will target wafer fabs and manufacturing equipment.

The plan includes leveraging existing industry capacity to modernise semiconductor assembly and testing, expanding power chip production, and developing local chip design leaders. In the second phase, the NSS aims to establish at least 10 companies in design and advanced packaging with revenues between RM1 bil and RM4.7 bil. Additionally, the goal is to nurture at least 100 semiconductor-related companies with revenues near RM1 bil to pave the way for higher wages.

All Perodua and Toyota vehicles deemed safe by Transport Ministry and JPJ
Transport Minister Anthony Loke announced that all Perodua and Toyota vehicle models in Malaysia have been deemed safe for public use after successful review and retesting by JPJ. The review included six Perodua models, Axia (first and second gen), Alza second gen, Aruz, Ativa, Bezza, and Myvi; and three Toyota models, Rush, Vios, and Veloz. The tests were conducted by competent Technical Services and complied with the UN Type Approval framework. The scope of the UN safety regulations covers aspects such as door latches, door retention components, pedestrian protection, seat anchorage, seat-head restraints, brake systems, and frontal and side-impact safety. This retesting follows a safety scandal involving Toyota's Daihatsu unit, which had rigged safety tests for 88,000 small cars, most sold as Toyotas in Apr 2023. The issue potentially affected 1.7 mil vehicles sold by both automakers in the market.

YTL Power’s SIPP acquires more stakes in Ranhill Utilities for RM405.18 mil
Seems like a busy deal week in Malaysia. YTL Power International Bhd’s subsidiary, SIPP Power Sdn Bhd, is acquiring a 31.42% stake in Ranhill Utilities Bhd for RM405.18 mil, raising its direct stake to 34.32% and its total stake with YTL Power to 53.19%. The shares are to be purchased from major shareholder Tan Sri Hamdan Mohamad and his investment vehicles – Hamdan Inc (Labuan) Pte Ltd and Hamdan (L) Foundation. This acquisition obligates SIPP Power to make a mandatory general offer (MGO) for the remaining shares at 99.5 sen per share, although SIPP Power plans to maintain Ranhill’s listing status.

This acquisition aligns with YTL Power’s strategic goals, enhancing its portfolio in water supply and power sectors in Johor and Sabah and expanding into renewable energy with projects like a 50MW solar plant in Bidor and a 500 MW solar farm in Kulai, Johor. Notably, Ranhill has exclusive rights to Johor’s water supply services, which will complement YTL Power’s existing operations in the region. YTL is expanding left and right, it seems and its share price has gone vertical, appreciating by +284.6% or nearly quadrupled from RM1.30 to RM5 in the past 12 months. Year-to-date alone, it has surged by +94.6%. If you made money from this counter, please do share some with us here. Tq.

RimbaWatch claims Msia at risk of losing 3.2 mil hectares of natural forests
The National Resources and Environmental Sustainability Ministry will review a report by RimbaWatch claiming that Malaysia is at risk of losing 3.2 mil hectares of natural forests due to logging and palm oil plantations. Minister Nik Nazmi affirmed the commitment to maintain 50% forest cover, noting the current coverage is at 54.58%. The report suggests the cover has dropped to 46.97% in the last two years due to human activities. In response, the ministry is drafting a climate change bill and a national adaptation plan, expected to be tabled in Parliament next year, as engagement sessions with state govts and NGOs are already underway.
Read: RimbaWatch’s State of the Malaysian Rainforest 2024.

[PSA] CIMB to discontinue CIMBClicks app in favour of CIMB OCTO CIMB will discontinue its CIMBClicks app, effective June 11. The app will no longer be available for download and will be removed from app stores. Existing CIMBClicks users can continue to access and utilise the app for transactions until June 11 but will need to download and switch to the OCTO app, which is already available for download.

4. AROUND THE WORLD 🌎

Papua New Guinea landslide tragedy: International help arrives while thousands told to evacuate amidst fear of a second landslide
The Papua New Guinea national disaster has a revised estimated casualty of 2,000 people from the massive landslide in the remote province of Enga last Friday. Satellite pictures show mountains of debris covering buildings and blocking roads, which officials have said is hampering relief efforts. A state of emergency has been declared across the disaster zone and a neighbouring area, with a combined population of between 4,500 and 8,000, although not all have been ordered to evacuate yet. About 1,250 people were displaced by the landslide, more than 150 houses were buried and about 250 houses abandoned.

International aid organisations said they were working to send food, water and evacuation shelters to the region but are facing challenges due to the remote location. Disaster committees have informed that the landslide is still very unstable, with frequent big explosions sending rocks and debris down the mountain.

ESG losing mentions in latest season financial presentations
Is ESG now becoming another corporate fad? Just a few years ago, ESG was near the top of about every top executive’s talking points but the latest financial presentations by the 100 biggest EU and US-traded companies show a sharp drop in the mention of ESGs. In the US particularly, many CEOs have decided to bottle it up, perhaps tired of strong opposition from activists on either side of the political spectrum. Companies are also probably worried about getting sued and heckled by Republican shareholders and state-level officials.

Climate change and related terms have been mentioned 269 times in the US so far this quarter, more than 60% fewer than a year earlier. For European companies, climate change has been mentioned 671 times so far in the current results season, around a tenth less than a year ago. Globally, companies are feeling the pressure to prove their climate statements accurate. Otherwise, they risk being challenged by environmental and consumer activists, investors and authorities. ESG is now more scrutinised than ever and companies fear being too ambitious and not able to back up their commitments.

According to the Corporate Governance Institute, Environmental, Social, and governance (ESG) is a set of standards for how a company operates regarding the planet and its people. ESG is important because socially conscious investors now use ESG criteria to screen potential investments.

Forthcoming media investigation reveals Israeli spy chief threatening ICC prosecutor over war crimes inquiry
Former head of the Mossad, Israel’s foreign intelligence agency, Yessi Cohen, is revealed to have allegedly threatened the then chief prosecutor of the ICC, Fatou Bensouda in a series of secret meetings aimed to pressure her into abandoning Israel’s war crimes investigation.

Bensouda sparked the ire of Israel when she initiated the investigation in 2021 through an initial assessment of allegations of crimes by individuals in Gaza, the West Bank and East Jerusalem. Bensouda had briefed a small group of senior ICC officials about Cohen’s attempts to sway her with a persistent and threatening nature. Cohen is also alleged to have told her: “You should help us and let us take care of you”, adding that she wouldn’t want to compromise her own security and her family’s. He used “despicable tactics” against Bensouda, likened to “stalking”, and attempted to use secret recordings of Bensouda and her husband to discredit the prosecutor.

The investigation culminated last week when Bensouda’s successor, Karim Khan, announced that he was seeking an arrest warrant for the Israeli prime minister, Benjamin Netanyahu, over the country’s conduct in its war in Gaza.

The Olympics is reportedly losing its largest sponsor
Toyota, one of the Olympics’ most lucrative partners, will end its sponsorship contract with the International Olympic Committee (IOC) after this year's games in Paris, reported Japan’s Kyodo News. The deal, announced in 2015 is believed to be the largest sponsorship agreement signed by the IOC, worth USD 835 mil at that time.

The reason for its withdrawal was dissatisfaction over the way the IOC has used the money and its inadequate support of the athletes and promotion of the games. During the Tokyo Summer Olympics in 2021, Toyota also criticised the IOC for not doing enough to support the mental health of its competitors. Mental health has become a growing concern among athletes. For instance, Naomi Osaka withdrew from two Grand Slam events and Simon Biles pulled out of two Olympic events due to mental health issues.

Besides Toyota, other major Olympic sponsors also include Coca-Cola, Samsung, Intel, Corona Cero, and Procter & Gamble.

Shorts

1. Luxury sneaker Golden Goose popular among celebs to go public this week

   Golden Goose is said to go public in Milan as soon as this week following positive feedback from potential investors. Donned by A-list celebrities like Taylor Swift and Selena Gomez, investors are expected to value the shoemaker at about USD 3.3 bil. Prices start at about USD 364 and can go up to USD 2598 a pair. However, Golden Goose's IPO could be hurt by slowing demand for luxury goods, potentially suffering the fate of luxury brands like Gucci and Yves Saint Laurent who saw an overall revenue decline of 10% in the first quarter of the year, largely from decreased sales in China. Check out the brand here.

2. Humans are the ones helping cockroaches become the world’s worst pests

   Here’s a crash course on the history of cockroaches and we have ourselves to blame. The German cockroach is the most common pest loathed by many amongst the 70 different known cockroach species. For 250 years it has spread on every continent on Earth except Antarctica. An entomology professor at Texas A&M University, in a recent study, said that the German cockroach is a creation of human-made environments. It thrives in human-built establishments like houses, stores, restaurants where it is warm and damp enough, feeding on human and pet foods, decaying matter and other items. The spread of the species is believed to start along two routes, west and east of its origin in India or Myanmar. It likely spread westward during the commercial and military activities of the Islamic Umayyad or Abbasid Caliphates 1,200 years ago, while spreading eastward during the European colonial commercial activities between South and Southeast Asia.

5. FOR YOUR EYES 📺

1. Kopi Kenangan may be a franchise like Starbucks, but its strategy to grow is the exact opposite. Starbucks aims to bring the most consistent cup of latte anywhere you go. Kenangan Kopi goes hyperlocal.

2. This is probably one of the easiest money hacks — in terms of calculations. It’s meant to be a general rule of thumb.