☕️ The rogue “Bersatu Six” MPs retain their seats

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

RM141.1 mil — the collected tax revenue from vape liquid from 2021 to 2024. According to PM Anwar Ibrahim, RM82.51mil were from liquid without nicotine, and RM58.55mil were from vape liquid with nicotine. Anwar announced that the Control of Smoking Products for Public Health 2024 (Act 852) was officially published on January 2, 2024. The Health Ministry is currently finalising the regulations for smoking products, including those for vape products, under this Act. Both the Act and the Rules are set to be enforced in August 2024. Once these regulations are in place, hopefully the oversight of vape products will be more comprehensive and effective.

Heatwaves have become more frequent and intense globally since 1950 due to human-caused climate change, driven by activities like burning fossil fuels and deforestation, according to the Intergovernmental Panel on Climate Change (IPCC). Hot extremes will increase as global temperatures rise. Europe, warming at twice the global average, is the fastest-warming continent. Currently, over 70 mil Americans are under heat alerts — that’s one in five Americans. The extreme heat has been described by the National Weather Service (NWS) as the region’s first significant heatwave of the season.

Highly-processed plant-based meat alternatives have grown in popularity, with the market reaching USD8.1 bil in 2023. A study by Northeastern University's Network Science Institute found that ultra-processed foods (UPFs) make up around 73% of the US food supply. A high-UPF diet is linked to health issues such as cancer, type 2 diabetes, and obesity. A UK Biobank study published in The Lancet Regional Health Europe reported that plant-based UPF consumption increases the risk of cardiovascular disease and early death. Replacing UPFs with non-UPF plant-based foods can reduce these risks — with a 7% lower risk of cardiovascular disease and a 15% lower risk of dying from cardiovascular disease.

3. IN MALAYSIA 🇲🇾

The rogue “Bersatu Six” MPs retain their seats
The six MPs, who voiced their support for the Unity Government, do not have to vacate their seats as the party constitution is said to go against the Federal Constitution and Parliament regulations.

The Star sighted a letter written by Dewan Rakyat speaker Johari Abdul in response to Bersatu Chief Whip Datuk Seri Ronald Kiandee, stating that regulations under Clause 10.5 of the Bersatu constitution deny the rights of the five MPs, which are enshrined under the Federal Constitution, Parliament Standing Order and the Houses of Parliament (Privileges and Powers) Act 1952. The five MPs are, Tanjong Karang MP Datuk Dr Zulkaperi Hanapi, Zahari Kechik (Jeli), Iskandar Dzulkarnain Abdul Khalid (Kuala Kangsar), Syed Abu Hussin Hafiz Syed Abdul Fasal (Bukit Gantang). Mohd Azizi Abu Naim (Gua Musang). The remaining MP, Dr Suhaili Abdul Rahman (Labuan), Johari mentioned he decided not to vacate the seat as the matter has been brought to court.

Bersatu president Muhyiddin Yassin claimed the speaker had erred in his interpretation of the Federal Constitution. He added that Bersatu would appoint legal experts to scrutinise the decision as he believes only the court has the right to interpret the Federal Consitution. Umno veteran Shahrir Samad has warned that the speaker’s decision could potentially backfire on the government as there is nothing to prevent a change of support without leaving the party. Another impending Langkah Sheraton?

HRDC invested in Widad Group Bhd shares, which have since fallen from the sky
The Human Resource Development Corp (HRDC) acquired shares of Widad Group Bhd under a put-and-call option arrangement (PCOA), according to the National Audit Department’s findings. Initially, the shares were purchased at 62 sen per share on October 15, 2020. The put options could be exercised within 30 days after one year of purchase, while call options were exercisable anytime for a year. The put option would lapse upon the exercise of the call options and vice versa. We tried to wrap our heads around it and still couldn’t understand. More than a third of the RM49.38 mil investment losses reported by the HRDC came from this investment. As of June 2023 came from its 62-sen-per-share investment in Widad Group Bhd.

Sim Tze Tzin (PH-Bayan Baru) has asked for the HRD Corp chief executive, Shahul Dawood, to go on ‘garden leave’while the mishaps at HRDC are being investigated. Government spokesperson Fahmi Fadzil said it’s too early to liken HRDC to the 1MDB scandal. 2MDB it is then.

Gamuda & QIP to build GBP100 mil student housing in the UK
Singapore-based Q Investment Partners (QIP) announced a whopping GBP100 mil (RM603.21 mil) joint venture (JV) with Gamuda Bhd to build student housing in the UK. Together with UK co-developer Hurlington Capital, QIP plans to develop a 299-bed purpose-built student accommodation (PBSA) in Woolwich, London (that’s an average of RM2.02 mil per bed). The project features 150 studio rooms and 149 cluster rooms. Acquired by Hurlington Capital in 2020, the building site is part of a massive redevelopment of the former Royal Arsenal in London – the PBSA being the first student housing scheme in the area. The accommodation is expected to be done by the 2026/2027 academic year. The London student housing market is a lucrative one with an estimated market size of USD8.52 bil in 2024 and is projected to grow an average of 5.45% per year until 2029.

Shorts

1. Johor-Singapore Special Economic Zone pact to be signed in Sept 2024
   Negotiations for the Johor-Singapore Special Economic Zone (JS-SEZ) are nearing completion, with a joint agreement expected in September, said Economy Minister Rafizi Ramli. The agreement aims to attract initial investors, with both Johor state and the federal government working to lure global investors, especially private equities and venture capital. The joint agreement will detail priority sectors, infrastructure plans, and investor incentives. Rafizi hopes these fiscal incentives will be included in the Budget 2025 announcement in October.

2. Syed Saddiq didn’t qualify for the podium in Triathlon Desaru
   Syed Saddiq, the Muar MP, initially claimed third place in the 113 Triathlon Desaru 2024 event held on July 6 and 7. However, after a netizen questioned his performance, Syed Saddiq reviewed his tracking data and admitted an error in his cycling performance had led to the incorrect podium finish. He acknowledged the mistake after receiving a detailed update and cross-checking his data. Is it us or does drama follow SS wherever he goes?

4. AROUND THE WORLD 🌎

Updates in Gaza
Israel’s outgoing head of central command, Major General Yehuda Fox, has condemned the government’s decision to expand settlements in the occupied West Bank of Gaza and criticised the rising levels of settler violence in the region. He accused Israeli settlers of engaging in violent “nationalist crime” that has “sowed chaos and fear in Palestinian residents who did not pose any threat”. Israeli forces and settlers have increased raids on Palestinian towns and villages in the West Bank since the conflict in Gaza began in October.

Meanwhile, UN human rights experts have accused Israel of carrying out a “targeted starvation campaign” that led to the deaths of at least 33 children in Gaza, with the 10 independent experts stating the campaign is a form of genocidal violence. Israel’s diplomatic mission to the UN has dismissed the statement as the experts “spreading misinformation” and “supporting Hamas propaganda”.

On the topic of “targeted”, an Israeli airstrike killed at least 29 at a gathering for a football match at a school. Those killed were mostly women and children. The Israeli military states it is reviewing reports that there were civilian casualties, saying the incident occurred when it was using a “precise munition” targeting a Hamas fighter who took part in the attack on Oct 7. This also comes as the Israeli military issues orders for all residents of Gaza City to evacuate as fighting intensifies there. Leaflets were airdropped, instructing the evacuation through two designated safe routes.

This sounds familiar and concerning. Speaking of concern, an investigative report has surfaced saying the Israeli army used the Hannibal Directive, which orders Israeli soldiers to be killed to prevent their capture. The extremely concerning part is that the directive was also used to kill its own civilians, if necessary, during the Oct 7 attack.

Business

1. Tokyo Disneyland owner to bring Disney cruises to Japan

   Oriental Land, which owns and operates Disney Resorts in Tokyo, will be investing USD2 bil to launch Disney cruises in Japan. The new agreement with Disney will bring year-round cruises to Japan, with the first cruise to sail from Tokyo by early 2029. The new 1,250-room ship is expected to carry 4,000 guests and will be designed similarly to the Disney Wish, the largest cruise ship in the Disney fleet.

2. Yokohama Rubber in talks to acquire Goodyear’s off-the-road tyre business

   Japanese rubber firm Yokohama is said to be in advanced talks to acquire Goodyear’s off-the-road (OTR) tyre business in a deal worth at least USD1 bil, according to sources. Yokohama stands as the likeliest buyer after other potential buyers dropped out. This is also the latest in a trend of Japanese firms acquiring assets overseas to help diversify and expand amid sluggish growth in their home market. OTR tyres are used in industries such as mining.

Tech Matters

1. Samsung expects 1,400% profit jump on AI craze, even as Samsung employees’ union promise indefinite strike

   The South Korean tech giant is projecting a 15-fold leap in profits for its quarter ended June 2024 compared to the same quarter last year. This jump to USD7.54 bil from a previous USD483.8 mil comes on the back of an AI boom which has lifted the prices of advanced chips. However, this news comes as a union representing Samsung workers has called for its 30,000 members – about 25% of Samsung’s workforce – to go on strike indefinitely as part of a campaign for better pay and benefits. The call is a response after management showed no intention of holding talks over the union’s demands. The union claims it has disrupted productions, though these claims have been disputed by Samsung, with the firm stating it will “ensure no disruptions occur in the production lines”.

2. Tokyo residents protest data centre construction

   A group of over 220 residents of the city of Akishima in western Tokyo are aiming to block the construction of a massive logistics and data centre by Singaporean developer GLP, following in the steps of a successful bid last December by citizens in Nagareyama, a city an hour away from Tokyo. The Akishima citizens were concerned that the centre would threaten wildlife, cause pollution and a spike in electricity usage, and drain the city’s water supply. This has led to concerns from businesses looking to build data centres in Japan to meet growing demand, with names like Microsoft, Amazon, and Oracle among those businesses looking to expand there. 

   Still, the data centre hype has drawn many to hop on the bandwagon, but this article points out that the data centre party has become a property play with an oversupply on the horizon, at least locally. The article also notes that the only major winners of the data centre boom locally are the construction players so far, with no long-term multiplier effects coming from said data centres.

3. Microsoft, Apple to step back from OpenAI amid regulatory scrutiny

   Microsoft has given up its observer role in ChatGPT parent OpenAI with Apple not taking up a similar spot, with the moves being seen as a way to soothe antitrust regulators who have been trying to assess the influence of the two firms over OpenAI. Concerns have been raised by regulators in both the US and UK regarding potential market control by tech giants over AI firms by means of strategic partnerships. Still, it is unknown whether the steps back will be enough to assuage those concerns.

Shorts:

1. Dyson to axe 1,000 UK jobs
   Vacuum cleaner manufacturer Dyson will be cutting jobs as part of a global restructuring, which will affect 1,000 of the 3,500 the firm employs in the UK. According to CEO Hanno Kirner, Dyson operates in “increasingly fierce and competitive global markets”, which necessitates an “entrepreneurial and agile” approach by the firm.

2. Clashes around Lashio, Myanmar enter second week
   The northern part of Shan state in Myanmar witnessed more clashes as fighting entered an eighth day around a Myanmar regional military headquarters in Lashio, where an ethnic armed group briefly captured a battalion command before being forced to retreat by junta air strikes.

3. Toyota to pitch in with building EV charging network
   The Japanese automaker joined a group comprised of other major automakers to back EV charging firm IONNA in its plan to build a high-powered EV charging network across North America, though there were no values or other details provided in the announcement. This network will be competing with the Supercharger network by Tesla. Toyota’s participation will give Toyota and Lexus customers in the US access to the network of at least 30,000 fast-charging ports which will begin deploying later this year.

5. FOR YOUR EYES 📺

1. Are you a fan of Gladiator? If yes, you’re in for the treat, as the sequel of the movie (first released in 2020) is coming to theatres in November 2024. Denzel Washington in it.

2. Who are some of the best-paid CEOs in the US in 2023? Topping the list is actually Malaysia-born Hock Tan of Broadcom (claim), taking home a cool USD161.8 mil.