☕️ Proton's new frontier - North Africa

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

Civil servants accounted between 10-13% of new bankruptcy cases between 2021 to 2024, according to the Malaysian Department of Insolvency. This trend amongst civil servants stood in increasing contrasts with the overall decline in national bankruptcy statistics. In fact, this figure has already reached 14% in 2024. For these civil servants, it would be a double-whammy as they could face disciplinary actions and may also hinder their chances for salary increments, promotions and eligibility for bonuses and financial assistance.

Pre-orders for Huawei Mate XT have surpassed 3 mil units since it started accepting bookings on Sep 7, ahead of its launch on Sep 10. The unique point of this phone is it’s triple-foldable and seems to be in high demand even though Huawei has yet to announce its price. The launch date will also coincide with Apple’s “It’s Glowtime” event which is expected to reveal the iPhone 16. Huawei released a video teaser starring iconic singer and actor and its brand ambassador Andy Lau (watch here).

A total of 1,200 Orang Asli involving 245 household heads will be relocated away from their homes starting in mid-2026, affected by the construction of the RM5 bil Nenggiri hydroelectric dam which will provide 300 megawatts to the national grid. The Orang Asli settlement areas cover a total of 2,057 acres that would be submerged. Construction of the dam started in Mar 2022 and is currently 40.5% complete, with full completion estimated in Nov 2027. This dam could be a game-changer for Kelantan as it will hold rainwater during monsoon and mitigate heavy runoff that causes floods in the lowlands. May the Orang Asli be fairly compensated and not for history to repeat itself - read more below.

3. IN MALAYSIA 🇲🇾

MOH reveals first move in its “war on sugar” - labelling system
The Ministry of Health (MOH) is set to implement a food and drink grading system as part of its "war on sugar" campaign aimed at combating non-communicable diseases (NCDs) linked to excessive sugar consumption. Deputy Health Minister Lukanisman Awang Sauni announced that this grading system will categorise products based on their sugar content, using labels A, B, or C based on the percentage of sugar in the products to help consumers make informed dietary choices.

This initiative is part of a broader strategy to address the rising prevalence of obesity and diabetes among Malaysians, as highlighted by the National Health and Morbidity Survey (NHMS). The survey revealed that nearly half of the Malaysian population is classified as overweight or obese and is therefore exposed to conditions that significantly increase the risk of developing serious health issues, including Type 2 diabetes and cardiovascular diseases. We’re already the most obese nation in Southeast Asia.  

JPJePlate - new number plate standard coming soon
The Ministry of Transport and Road Transport Department have launched the pilot phase for new standardised number plates called JPJePlate. The first phase will first be rolled out for new EV and hydrogen fuel cell vehicles effective immediately. Starting at RM98, the new plate is the contrast of existing plate where it will have a white background with black fonts for better recognition. There are 9 features fitted into the new JPJePlate:

• The national flag, indicating a Malaysian-registered vehicle

• Colour-coordinated fuel source codes on the left side

• A ‘MAL’ text, along with an embossed International Vehicle Registration Code

• Holographic stripes for light reflection

• A QR code as a digital car signature

• Laser-engraved serial number

• RFID chip for future-proofing

• Anti-counterfeiting foil for security

Proton’s new frontier - North Africa
Proton Holdings Bhd is set to boost its export operations with a completely knocked down (CKD) vehicle assembly initiative in Egypt, projected to contribute 16,000 units to its total export volume from Q4 of this year until the end of 2026. This move is expected to generate approximately RM570 mil in revenue, alongside an additional RM20 mil from spare parts sales to enhance customer service, according to the Ministry of Investment, Trade and Industry (MITI).

MITI's deputy secretary general Hanafi Sakri highlighted that this initiative could position Egypt as a regional assembly hub for Proton, catering to the North African market. Proton's chairman, Syed Faisal Albar, emphasized the significance of export markets for the company's growth, stating that reliance on the domestic market alone is insufficient for Proton to achieve its global ambitions. Currently, Proton exports to 20 countries, with Egypt being a key market where around 3,200 completely built-up (CBU) units have been sent over the past six years, notably the Proton Saga.

The establishment of a regional assembly hub in Egypt marks Proton’s first venture into left-hand-drive models overseas, potentially allowing further expansion into neighbouring markets.

Shorts

1. 99 Speed Mart > Genting Malaysia
   99 Speed Mart Retail Holdings Bhd made its debut as a public-listed company today, with a decent surge 13.94%, closing at RM1.88 and valuing the company at RM15.79 bil. This makes the company the 32nd largest market cap stock on Bursa Malaysia, bigger than KLCI component Genting Malaysia’s market cap of RM13.77 bil. An official new billionaire is created with the company’s founder, Lee Thiam Wah, estimated to be around RM13.7 bil. A short history on Lee’s journey here.

2. Court rules 3,000 hectares of Gopeng belongs to Orang Asli
   The High Court has affirmed the ancestral and customary rights of a group of Orang Asli settlers over 3,000 hectares of land in Gopeng, Perak, which had been designated for a mini hydroelectric project. The court ordered the Perak land authorities to officially designate and gazette the land as native customary land and also issued a permanent injunction against Perak Hydro Renewable Energy Corporation Sdn Bhd and Conso Hydro Sdn Bhd, preventing them from encroaching on the land and ordered them to vacate it within 30 days, pending a stay application.

3. 1MDB funds channelled to Kim Kardashian and Pharrell Williams
   In the ongoing 1MDB trial against former Treasury Secretary Mohd Irwan Serigar Abdullah and former 1MDB CEO Arul Kanda, financial fraud investigator Richard Templeman told the High Court that USD2.4 million (RM10.46 million) from 1MDB was funnelled into the accounts of celebrity Kim Kardashian and musician Pharrell Williams through disgraced Jho Low's shell company, Good Star Ltd. USD2.025 mil was paid to a Williams-related company and USD406k to Kim Kardashian and her then-husband Kris Humphries.

4. Burnley FC captain joining Harimau Malaya?

   Joshua Brownhill has expressed interest in representing Malaysia. How could this happen, you might ask? Brownhill’s grandmother is Malaysian. He expressed pride in this connection and is open to the possibility of joining the national team. If he transfers to Malaysia, he could become the most expensive player in Southeast Asia as he is valued at approximately EUR15 mil. Burnley FC competes in the EFL Championships, the second tier of English football below the English Premier League.

4. AROUND THE WORLD 🌎

Apa lagi Israel mau?
UN Human Rights High Commissioner Volker Turk denounced Israel, calling for countries to act on Israel’s “blatant disregard” for international law in the occupied Palestinian territories, including the “binding decisions of the UN Security Council and orders from the International Court of Justice”. He also said a ceasefire to avoid a wider regional conflict is an “absolute and urgent priority”.

On that note, US CIA Director William Burns, who is also the head negotiator for the US for the Gaza ceasefire talks, shared that a more detailed proposal will be made “in the next several days”. Every extra day is another day for Israel to kill innocent Gazans. However, he also said it was a matter of political will and hoped that leaders from both Hamas and Israel recognised that it was time for “hard choices and difficult compromises”.

Still, there are fears that there will be a “lost generation” of Palestinians, as schools remained closed on the first day of the Palestinian school year following 11 months of conflict. The Palestinian Ministry of Education said that 90% of all schools in Gaza were destroyed or damaged by Israel’s operations throughout the conflict, while the UN Palestinian aid agency UNRWA, which runs about half of Gaza’s schools, converted what schools it could to emergency shelters to house displaced families.

"The longer the children stay out of school the more difficult it is for them to catch up on their lost learning and the more prone they are to becoming a lost generation, falling prey to exploitation including child marriage, child labour, and recruitment into armed groups," – UNRWA Director of Communications Juliette Touma.

Typhoon Yagi death toll rises, takes out major bridge
Typhoon Yagi’s death toll has risen to 59, caused by severe flooding and landslides as the typhoon lashed northern Vietnam. Marked as the strongest storm seen in the region over the past three decades, Yagi damaged buildings and infrastructure, causing power blackouts that have severely disrupted the region’s factories, which serve as a major production hub for global tech giants. To date, more than 240 people have been injured, with 1.5 mil people still without electricity. The storm is projected to move westward following landfall in northern Vietnam, where it landed after passing through part of China and the Philippines, with 24 lives claimed.

Among the structures damaged is the Phong Chau bridge in Phu Tho province, which collapsed due to Yagi, dropping 10 cars and two scooters into the river below (watch here). At least three survivors have been rescued, with 13 more still missing. The military has been ordered to build a pontoon bridge as soon as possible.

There have also been reports of solidarity and kindness among the people, with social media showing numerous posts of drivers shielding pedestrians and bike riders from Yagi’s strong winds of up to 203km/h, allowing them to walk or ride more safely — watch here.

V3 Group - the company behind the Osim, Bacha Coffee and TWG Tea
Osim owner of V3 Group, privately owned by Ron Sim Chye Hock, has turned to luxury beverage brands Bacha Coffee and TWG Tea to rejuvenate his portfolio. Sim, who has an estimated fortune of USD1.6 bil derived from diverse business interests, is described as obsessed with creating brands with universal appeal among the young and affluent that can be scaled up and expanded globally. Truly diverse, ranging from massage chairs to real estate to beverages. By the way, the most expensive coffee at Bacha sets you back USD840 for 100 grams.

Bacha Coffee’s global push saw Sim set aside USD100 mil two years ago, most of which has been used to roll out stores across Asia, Africa, the Middle East, and Europe, for a total of 24 stores. The plan is to have over 100 stores by 2030, and Sim is confident the chain will generate enough to fund the expansion, considering the brand just completed a new coffee processing factory in Morocco. TWG Tea, which Sim took control of in 2014, currently has 79 outlets in 18 countries, with expansion plans to hit 100 stores as well.

Here’s how much each brand in 2023

• Bacha Coffee - SGD96 mil revenue (+146% year-on-year), first ever net profit reported of SGD2.2 mil

• TWG Tea - SGD132 mil revenue (+63% yoy), SGD4 mil net profit (+8% yoy)

• Osim - SGD 312.4 mil revenue (-27% yoy), SGD28.4 mil (-56% yoy)

For the kind of prices they charge, margins are surprisingly low. Hmm.

Business

• China fuses two brokerages in bid to take on overseas investment firms

  Guotai Junan Securities Co. will merge with smaller rival Haitong Securities Co. via a share swap, creating a new entity with assets of USD230 bil to emerge as the largest brokerage in China. The merger is the latest trend in market consolidation and follows four other mergers among smaller securities firms since the start of the year. This trend is a result of China looking to cultivate globally competitive flagship investment banks after Chinese President Xi Jinping urged regulators to do so, to compete with Wall Street firms expanding in China.

• Child sex trafficker arrested in Philippines

  Influential pastor Apollo Quiboloy, wanted by the US and the Philippines for child sex trafficking, has been arrested, ending a two-week stand-off between his followers and the police. He is also wanted for fraud, coercion, and bulk cash smuggling. Quiboloy trafficked girls and women from the Philippines to the US, where they were forced to solicit money for a bogus charity. This was all committed as he rose to national prominence as spiritual adviser to then-president Rodrigo Duterte.

5. FOR YOUR EYES 📺

1. It’s always good to plan ahead, way ahead, when it comes to long weekends

2. We are all built differently, especially when it comes to money. What’s good for us, might not necessarily be good for you and vice versa. Always critically assess circumstances and context. For example, when a successful person or billionaire says ‘go big or go home’, they go home to a bungalow. Not so lucky. for most of us.