☕️ RM16 bil LRT3 to open in March 2025

The US markets were closed yesterday in observance of Independence Day.

2. NUMBERS AT A GLANCE 🔢

A recent study by economists from the Department of Treasury, Harvard University, and the University of Sydney reveals that allocating additional resources to auditing the top 10% of taxpayers results in a substantial revenue return. For every extra dollar spent on auditing, USD12 in revenue is generated — the best ROI. Auditing the wealthy isn’t cheap. Auditing the top 1% yields USD4.25 per dollar spent, and that number soars to USD6.29 when auditing the top 0.1%.

In a syok-sendiri exercise, Deputy Finance Minister Ahmad Maslan revealed that the federal government’s assets have been valued at over RM1 tril. This valuation is the result of assessments conducted by the Accountant General's Department and the Property Valuation and Services Department (JPPH) over a span of 10 years, starting from 2013. These assessments encompassed government land and buildings. He said the evaluation process is ongoing to identify the value of the federal government’s assets which is hoped will exceed the national debt, which stands at RM1.5 tril.

One man’s food is another man’s poison. Italy has taken a significant step in combating anti-Semitism within football by implementing a ban on players wearing the number 88. Indeed, the number 88 is known to have significance in certain contexts, including being associated with a German Nazi slogan. This initiative, supported by members of the Italian government and the president of the Italian Football Association (FIGC), Gabriele Gravina, was formalised through an agreement signed on Tuesday. The move reflects Italy's commitment to addressing and eradicating discriminatory behaviour in the sport, promoting inclusivity and respect among all participants.

3. IN MALAYSIA 🇲🇾

Tun Dr Mahathir was being racist, which was not the first time, unfortunatelyAs most already know, recently, Tun Dr Mahathir falsely accused PM Anwar Ibrahim of going against the Constitution of Malaysia by promoting multi-ethnicism in Malaysia. Mahathir claimed that the Constitution encourages the spirit of Malayness by quoting Article 152 (the Malay language is the national language) and Article 153 (reservation of quotas for the Malays and Bumiputera). Anything to score some political points with your conservative Malay base, eh Tun?

So, what were the reactions from the public?

1. Syed Saddiq, Mahathir’s former blue-eyed boy — The MUDA President criticised his former mentor by stating that the Bapa Pemodenan of the country should focus on uniting the people instead of finding ways to break us apart. Syed Saddiq also said that an attack against the non-Malays is equivalent to an attack towards all Malaysians.

2. DAP leaders - DAP Secretary-General Anthony Loke lambasted Tun Dr Mahathir’s claim that his party is currently holding PM Anwar Ibrahim's ransom by forcing the premier to turn the country into a nation with no official religion. Loke said that DAP has always respected Islam’s position in the Constitution as the country's official religion and added that Malaysia has always been a multi-racial country from the start. Loke also questioned Mahathir whether he had forgotten about his Vision 2020. Within Mahathir’s failed Vision 2020, the thing that was on top of the list was to establish a united Malaysian nation made up of one Bangsa Malaysia. Consistency, where art thou?

3. Legal experts — Constitutional lawyer Bastian Pius Vendargon said that the former PM misinterpreted the Constitution as Article 8 stated that the Constitution underlined that all persons are equal before the law and entitled to equal protection. Philip Koh, an adjunct professor at Universiti Malaya, also added that although it is not clearly stated in the Constitution that the country is a multi-ethnic nation, the Reid and Cobbold commissions, which laid the foundation for our current Constitution, affirmed that we are a liberal democracy and not a race-based autocracy.

Enough airtime for Tun M.

MUDA is hustling its way to contest alone in the state electionsMUDA President Syed Saddiq told the media that the party will launch the ‘Muda Hustle’ initiatives, where leaders and members of the party will create their own unique ways to raise funds for the state elections. From selling otak-otak online to auctioning away personal assets, Syed Saddiq stated that the party has always been reliant on small public donations to keep going.

MACC starts to round up statements regarding the alleged KLIA corruptionIn relation to the alleged Kuala Lumpur International Airport (KLIA) Immigration Department’s corruption scandal, the Malaysian Anti-Corruption Commission (MACC) has been collecting statements from three individuals, including one VIP. On top of that, it was revealed that MACC had identified the middleman that allegedly asked for an RM18,000 bribe in exchange for ‘saving’ a foreign tourist who allegedly failed to comply with entry requirements set by the Immigration Department.

All about trains

1. Pestech International Bhd denied the insolvency basis used in the termination of its subsidiary, Pestech Technology Sdn Bhd (PTech), from the Gemas-Johor Bahru electrified double-track rail project by the main contractor Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd (SPYTL). Instead, Pestech claimed that SPYTL created a negative cashflow issue in the project due to the rear-loaded project payment milestone that lead to a two-year project extension. During the extension period, Pestech claimed that PTech did not receive any loss or expense payments.

2. Good news for ladies as Transport Minister Anthony Loke said that the MRT Kajang Line will adopt the KTM’s concept of a women-only coach. A trial run will be conducted first before an implementation is announced.

3. Loke also told the media that the RM16 bil LRT3 project that starts from Bandar Utama and ends in Johan Setia will commence its operations on March 1, 2025. At the moment, the progress rate of the project is at 86%. There will be 22 sets of three-car trains in operation and the capacity of the LRT3 was 18,630 passengers per hour per direction.

Sarawak Darul Wastage

• The Sarawak Government will construct a new official residence dubbed Astana Negeri for the Sarawak Premier as the current 153-year-old Astana Negeri overlooking the Sarawak River will be converted into a museum. It is unsure of the total budget allocated for the new official house for the head of state but one can guess the ballpark of the figure will be at the north end of the spectrum as the state just launched an RM30 mil flagpole, albeit no state fund was used.

• SMK Methodist in Sibu, Sarawak, just launched an RM1.1 mil five-star toilet block that took seven months to complete. It should be a criminal to get away with spending this much on a toilet. Although public funds may not be utilised in building this toilet, this is a prime example of how priorities are misplaced in Sarawak. That RM1.1 mil could be contributed to elevating the livelihood of more than 97,000 households in Sawarak that are living in poverty, where 39,858 or 41% of them are considered hardcore poor, earning less than RM1,169 per month.

4. AROUND THE WORLD 🌎

Is Twitter digging its own grave?

1. The timing could not be better for Meta to launch a rival to Twitter — an app called Threads, on the iOS App Store in the U.S. The app is set to officially launch on July 6, as indicated by App Store data. Threads could have a leg up since it directly ports over a user’s Instagram followers and following lists — there are over 1 bil Instagram users, more than double Twitter’s users (396.5 mil). Threads will be its own stand-alone app.

2. TweetDeck will be limited to Twitter’s paid subscribers only from August onwards, cutting off free users from the advanced alternative to the company’s main consumer app. Twitter is giving a 30-day trial to users to test the new TweetDeck before buying into Twitter Blue if they want to. The move aims to encourage more users to pay for the USD8 a month Twitter Blue service. TweetDeck was acquired by Twitter back in 2011 for USD40 mil.

GL Elon!

On the other hand, Elon’s Tesla Inc. saw its output in China increase by almost 20% in June, contributing to the company’s record quarterly sales. Telsa shipped 93,680 cars from its factory in Shanghai last month, compared with 78,906 units in June 2022 and 77,695 vehicles in May.

Japan to release treated radioactive water The United Nations’ nuclear watchdog, the International Atomic Energy Agency (IAEA), has approved Japan’s plan to release treated radioactive water from the tsunami-damaged Fukushima plant into the ocean. This decision comes despite opposition from Beijing and some local residents. Following a two-year review, the IAEA determined that Japan’s plans meet global safety standards and would have minimal radiological effects on people and the environment.

Japan’s government assures that the process of releasing treated radioactive water, equivalent to the volume of 500 Olympic-sized swimming pools, from the Fukushima plant into the ocean is safe. The water has undergone treatment to remove most of the radioactive contaminants. The release will not be at once — it will span 30 to 40 years.

Apple’s Vision Pro faces manufacturing hurdleAccording to a report by Financial Times, Apple has been compelled to significantly reduce production estimates for its Vision Pro mixed-reality headset. The headset, which was recently announced after seven years of development, was considered a groundbreaking product launch for Apple. However, due to the intricate design of the headset and production challenges, Apple has been forced to scale back its initial target of 1 mil units in the first 12 months. Analysts’ forecasts for sales of the Vision Pro vary from 150,000 units to as high as 5 mil units.

More disruption to the global supply chains aheadAfter reports surfaced that the US is considering new curbs on the export of advanced chips to China, China retaliated by restricting exports of rare metals to manufacture semiconductors, citing national security concerns. The Ministry of Commerce and China Customs has issued guidelines stating that Chinese exporters will require approval to export specific gallium and germanium products starting from August 1.

Gallium is used to produce integrated circuits, LEDs and photovoltaic panels for solar panels. Meanwhile, Germanium is used to make optical fibres and infrared camera lenses.

Shorts

1. Toyota unveiled that it has made a breakthrough in its solid-state battery technology. The breakthrough could potentially halve the size, cost and weight of batteries for its electric vehicles. Solid-state batteries are seen as a promising solution to address EV battery challenges, including charging time, capacity, and safety risks.

2. Thailand’s newly convened parliament, following Move Forward party’s election victory, faces uncertainty as there is no clear indication of whether its leader will be able to assume the role of prime minister and break the country's military-dominated rule. The winning parties, Move Forward and Pheu Thai, are in dispute over the appointment of the speaker of the House of Representatives.

5. FOR YOUR EYES 📺

1. The New York Times sprung a surprise growth from its reinvention — turning an ad-reliant business model into a subscription-based one. At The Coffee Break, we are still experimenting with our business model — perhaps you might consider our voluntary subscription? 

2. If your first half of 2023 was a bit low, here are some tips for a pick-me-up!

3. Tim Ferriss reminds us that there is more to life than just work. Happy Hump Day!