☕️ RM4 bil in potential Halal investments from China

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

JPY2,377 per kilogram (RM73) — wholesale prices of Japan's premium wagyu beef have dropped to their lowest levels since June 2020 due to weak demand. The price of top-grade A5 wagyu bullock meat fell 7% year-on-year in July 2024. Farmers are struggling with rising costs and diminishing interest in the high-end meat during inflationary times. Some supermarkets have even stopped selling wagyu beef.

A 2023 UNICEF report highlights that 21.9% of Malaysian children under five are stunted, a rate similar to low-income countries and above the global average. The report also reveals that 90% of low-income households in Kuala Lumpur are forced to reduce food intake due to rising prices, impacting children’s health and nutrition. Not getting enough healthy food causes many health problems for Malaysian children. This needs to be addressed seriously, not just for the children's well-being but also for Malaysia's future.

The price of fish and chips in the UK has surged by over 50% in the past five years, reaching nearly GBP10 (RM57) per portion. Other popular takeaways like kebabs and pizza have also seen price hikes of 44% and 30%, respectively. Chip shop owners attribute the rise to several factors, including increased energy costs, tariffs on seafood imports, and poor weather affecting potato harvests. Might want to consider eating something else for your next trip to Kuala London.

Together with Leet Ventures & Leet Capital

Discover the Next Big Thing in Malaysia’s F&B Scene, Rollti is transforming the traditional roti canai with innovative fillings, offering a unique grab-and-go experience. Now operating in Pavilion Elite KL, NuSentral, Starling Mall, Bloomsvale Shopping Gallery, and Elmina Lakeside Mall, Rollti is meeting the demand for convenient, high-quality, and culturally rich food.

Rollti is raising capital via Equity Crowdfunding on Leet Capital. Learn more about Rollti here. Join the Rollti Investor Roadshow to meet the founders — Virtual (Zoom) on 24 September and in person on 10 October.

Limited spots only, RSVP today to explore this exciting opportunity!

3. IN MALAYSIA 🇲🇾

Chemical odour poisoning in Johor Bahru
Around 140 people in several Johor Bahru districts fell sick after inhaling strong chemical odours. Thankfully, all of them have recovered with no long-lasting side effects after receiving treatment from nearby health facilities. According to a ministry spokesperson, all patients suffered nausea and dizziness as part of their symptoms- common for ammonia gas poisoning. Elevated levels of said gas were reportedly detected along Sungai Pandan, besides odours of other chemical gases around Taman Daya, Taman Mount Austin, and Kampung Melayu Pandan.

As a cautionary measure, 3 schools in the district, namely SK Kampung Maju Jaya, Sekolah Rendah Islam Hidayah, and Sekolah Menengah Islam Hidayah shifted to home-based teaching after 27 students from SK Kampung Maju Jaya experienced dizziness and vomiting.

On that note, two individuals, a 23-year-old lorry driver and his 28-year-old assistant were arrested in Johor Bahru for allegedly having a hand in the pollution case.

RM4 bil in potential Halal investments from China
Malaysia is set to attract RM4 bil in investments from China’s halal industry with over 40 potential Chinese companies as investors, as announced by Deputy PM Zahid Hamidi during the Malaysia-China Halal Business Forum. This potential investment spans multiple sectors, including F&B, herbal medicine, pharmaceuticals, cosmetics, and vaccines. 

He emphasised the need for streamlined procedures to facilitate these investments, particularly in infrastructure and tax incentives. Additionally, the Deputy PM proposed the establishment of a Malaysia-China Halal Trade Corridor to enhance trade efficiency and support halal product exports. This initiative aims to simplify the import and export processes and ensure that Chinese products meet Malaysian halal standards, facilitating access to broader markets.

Zahid, who is also the rural and regional development minister, also noted the increasing demand for collaboration in herbal medicine between Chinese investors, Malaysian universities, and the Malaysian Agricultural Research and Development Institute or MARDI. Malaysia currently has 5,787 hectares dedicated to the halal industry.

It’s official - ZUS secures RM250 mil
ZUS Coffee, the beloved Selangor-based chain, has secured a RM250 mil investment from a consortium comprising Singapore’s private equity firm KV Asia Capital, our own Kumpulan Wang Persaraan (KWAP), and Indonesia's Kapal Api Group. 

As of its inception 6 years ago, ZUS operates 550 stores in Malaysia and 50 in the Philippines. The company plans to launch operations in Singapore and Brunei between now and December. Additionally, ZUS Coffee is actively discussing partnerships in other international markets by 2025.

The RM250 mil investment will be utilised to grow ZUS Coffee's core business and support its entry into new verticals, such as fast-moving consumer goods (FMCG). Of the total investment, RM50 mil is allocated for new shares in Zuspresso (M) Sdn Bhd, the operator of ZUS Coffee, which will be put to use in bolstering its balance sheet, supporting expansion plans, as well as funding operation costs. The remaining RM200 mil is designated for existing shares, allowing current shareholders to partially cash out.

Shorts

1. Higher tax for sugary drinks come 2025
   A newly revised tax has been proposed in Budget 2025 to further reduce Malaysia’s obsession with sugary drinks with hopes of reducing non-communicable diseases. The aptly named sugar-sweetened beverage tax (SSB), has been proven to successfully reduce consumption of sugary drinks by 9.25% nationwide. This was after increasing the SSB tabled in Budget 2024 by 10 sen to 50 sen per litre. Health Minister Dzulkefly Ahmad stated hopes that this increase in SSB motivates both restaurants as well as patrons to be more conservative in sugar usage.

   Is that daily cup of teh tarik really worth it?

2. Contentious Raja Petra Kamarudin passes away from blood infection

   The controversial blogger who went by the moniker RPK and infamously led the “Free Anwar Campaign” in the late 90s, has died at the age of 74 in Manchester, having lived there since March 2009. He passed away on September 9 at 11:26PM UK time, as confirmed by his brother, Raja Idris. Raja Petra was last seen online in a video on September 8, as he gave his views on the current local political scene.

3. Bosses of 5-figure beggars caught in Johor

   The Malaysian Immigration Department busted 6 Chinese nationals as part of a street begging syndicate during last Thursday’s Op Serkap in Johor, after public tip-offs and months’ worth of surveillance. The scheme involved disabled individuals, and primary investigations revealed that each beggar earned between RM2,400 and RM12,000 a month (that’s more than minimum wage and places them in the T20 group!), with beggars using an apartment unit to fork over daily earnings to the detainees.

4. Malaysian young adult novel receives recommendation from Oprah Book Club

   Homegrown author Hanna Alkaf's (view her website) The Girl and The Ghost has gained notable recognition as a recommended read for middle school students by the Oprah Book Club. Yes, Oprah as in Oprah Winfrey. Once a segment on a famous talk show, this influential reading list has a track record for elevating lesser-known titles to bestseller status. The novel, centred around a young girl living in a Malaysian village who inherits a dark spirit (pelesit), from her late grandmother, was highlighted in a recent article by novelist Loretta Lopez, emphasising its relevance for girls navigating the challenges of middle school. Check out the book here.

4. AROUND THE WORLD 🌎

Israel continues its war crimes and blatant disregard of international laws
Israel has yet again attacked a designated safe zone, this time in Khan Younis, southern Gaza. The attack involving at least 4 missile strikes has bombarded a tent camp in the al-Mawasi area where hundreds of Palestinians are taking shelter from the ground invasions of Khan Younis and nearby Rafah.

At least 40 people had been killed and more than 60 were injured in the attack. Many are missing and unaccounted for, with local sources reporting craters up to 9 metres deep at the tent camp. People are buried in the sand while being rescued with bare hands, all amid fire and Israeli reconnaissance planes circling overhead.

Initial assessments of the scene by Gaza civilian defence suggested that the attack was one of the most heinous massacres by Israel so far. Again and again, Israel has the audacity to announce that they have taken “numerous steps to mitigate the risk of harming civilians” prior to the strike, justifying that it has struck “significant Hamas terrorists” who had been operating a command and control centre embedded inside the humanitarian zone.

Tech News

• Apple launches AI-boosted iPhone 16
  “It’s the beginning of a new era” said Chief Executive Tim Cook at the unveiling of the new iPhone 16 on Monday, where the tech giant showed off the long-awaited phone specially designed for “Apple Intelligence”, an AI term for Apple in an attempt to set itself apart from the generic “AI”. The AI will do everything, from smartening up Siri to creating customised emojis on the fly to suggesting how to set up a photoshoot more effectively, where most of the tasks are performed on the iPhone itself instead of remote data centres. Prices for iPhone 16 will start from USD799 (RRP RM3,999) while the iPhone 16 Pro variations start at USD999 (RRP RM4,999). The test version of Apple Intelligence in English will be available in the US next month, while other localised English versions in December, followed by languages like Chinese, French, Japanese and Spanish next year. Design-wise, the tweet below says it all. Huawei Mate XT, which now has exceeded 4 mil pre-orders, looks even more impressive — watch the unwrapping here.

• Apple to pay EUR13 bil in back-taxes to Ireland

  Casting a grim shadow over the iPhone 16 launch, yesterday the top European Union court delivered its final judgement over the long-running legal battle with Apple: The iPhone maker now has to pay a massive amount of EUR 13 bil (RM62.4 bil) of back-taxes to Ireland, which was found giving “unlawful aid” by allowing the iPhone maker to avoid billions of Euros in taxes. Dublin has allowed Apple to pay a tax rate of only 1% of its European profits in 2003 which then dropped to 0.005% by 2014. Apparently, this is one of several investigations related to sweetheart tax arrangements between major companies and a few EU countries over the previous decade.

• Google to pay EUR2.4 billion antitrust fine to EU and face more legal battles ahead

  A few minutes after the Apple verdict, the EU Court also upheld its judgement on Google, where it has to pay antitrust fines of EUR 2.4 bil (RM11.52 bil) brought forth by EU antitrust regulators 7 years ago. In 2017, the EU Commission accused Google of favouring the search results of its own price-comparison service, Google Shopping, which was disadvantageous to its competitors. Google’s appeal to the court was dismissed, and it was charged with abusing its dominant position in the industry. More legal headaches are looming ahead for Google — the EU court will decide on another fine worth EUR 1.49 bil next week, while in the US, the government has accused the search engine giant of dominating online advertising and stifling competition.

Shorts

1. Jakarta's rail will impose a lifetime ban on sexual harassment offenders

   In its effort to combat sexual harassment on its train lines, Jakarta’s rail transport network Kereta Commuter Indonesia (KCI) will be enforcing a lifetime ban on all perpetrators of sexual harassment on its trains. Offenders will be monitored through CCTV and blocked if they attempt to board any of the trains again. 30 cases were attended by KCI from January to August 2024, while 13 reports were received via social media during the same period. KCI is also considering increasing the number of female-only carriages on their trains.

2. Australia considering social media ban for young children

   PM Anthony Albanese has recently announced plans to introduce new legislation banning children from social media, with the limit to be set somewhere between 14 to 16 years old. He acknowledges that social media is harming children mentally and physically, and is taking children away from real friends and real experiences. The age verification trial will take place over the next couple of months to test different approaches to implement the ban and help inform the policy design. Age-based restrictions for social media are already being placed by governments like China, France, and some states in the US over concerns of cyberbullying and unrealistic beauty standards. If this works, Malaysia should consider doing it too, yes?

3. SpaceX launches privately-crewed Polaris Dawn mission, with an attempt at first spacewalk

   SpaceX’s Falcon 9 rocket has finally launched today from Florida after being postponed multiple times because of unfavourable weather and a helium leak this past few weeks. It carries 4 private citizens, which includes billionaire Jared Isaacman who purchased the mission, and two SpaceX employees. The highlight of the “trip” would be their attempt at SpaceX’s first spacewalk. Besides that, they will also be conducting 40 science and research experiments during the mission. Polaris Dawn represents SpaceX’s 14th crewed mission to date and its fifth private human spaceflight.

5. FOR YOUR EYES 📺

1. One of our favourite series on Netflix returns — Chef’s Table. This time, this series takes on noodles.

2. More than one quarter of passenger kilometers travel in Japan is done by rail, vs almost 0% in the United States.