☕️ Saudi Aramco in talks to buy Shell Malaysia gas station biz for up to USD1 bil

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

If range anxiety of an EV is hindering you from getting one, keep an eye out on this metric. There are a total of 2,214 EV charging stations installed as at 20 Mar 2024, of which 473 (21.4%) are direct current fast chargers. The Ministry of Investment, Trade and Industry (MITI) aims to install 10,000 charging stations by 2025.
Learn: The 3 biggest reasons for range anxiety - fact or fiction? 

Drug names (the legal ones) are getting weirder by the day as new medicines get approved at record rates and regulations require a certain degree of differentiation from both other drugs and recognisable words in any language. One way to make a name unique is by using letters that are less frequently used. In a 2015 analysis, drug names use the letter Q three times more than words in the English language. For Xs, that’s 16 times as much and Zs take the cake at 18 more times. As for Ws? It’s rarely used in drug names (5 out of every 1,000 names). Another way to differentiate is by syllables. In 2010, only about 10% of drug names had 4 syllables and this has grown to 15% in 2015.

The legendary ‘Buy Bitcoin’ yellow notepad sign was sold at an auction for 16 bitcoin, or about USD1.027 mil. The sign was offered by Christian Langalis, who photobombed it behind then-US Federal Reserve Chair Janet Yellen during a 2017 congressional hearing to the camera. After the sign was flashed, Bitcoin traded 3.7% higher, reaching over USD2,418. In 2019, capitalising on its popularity, Langalis created and sold 21 replicas of the sign, which sold for an average price of 0.8 bitcoin each. Langalis didn’t buy a Lamborghini with the proceeds. Instead, he intends to use it to fund his own Bitcoin software project.

3. IN MALAYSIA 🇲🇾

CoA: Muhyiddin’s power abuse court case “clear and unambigous”
The Court of Appeal has ruled that Muhyiddin Yassin must prepare to defend himself against the four charges of abuse of power related to the Jana Wibawa programme. The charges, under Section 23(1) of the Malaysian Anti-Corruption Commission Act 2009, have been reinstated in February by the court after being initially dismissed by the High Court. The CoA clarified that the charges are sufficiently clear and detailed, specifying Muhyiddin's alleged acts of using his position to obtain gratification for Bersatu. This decision reverses a previous High Court ruling that acquitted Muhyiddin, who has pleaded not guilty. The CoA scheduled a further hearing on July 9 to consider Muhyiddin's request to review and potentially rehear the appeal with a new panel.

On hypermarkets and gas stations:

• TF-Value Mart sues GCH Retail

  Pahang-based TF Value-Mart Sdn Bhd has filed a lawsuit against GCH Retail (Malaysia) Sdn Bhd, which operates the Giant Hypermarket brand, due to GCH's failure to vacate a 180,000 sq ft premises in Batu Caves after their lease expired on January 31. TF Value-Mart, which had planned to take over the lease from GCH Retail following a tenancy agreement signed in 2023 with the landlord, Crystal Promenade Sdn Bhd, claims it has lost business opportunities due to the continued occupation by GCH Retail. Despite a court's summary judgment favouring the landlord and confirming that GCH Retail had no extension rights and must vacate the property, GCH Retail has yet to comply. This legal battle is part of TF Value-Mart's broader strategy, having previously taken over nine other locations from GCH Retail between 2016 and 2021 when leases were not renewed.
  Fun fact: TF was acquired in a management buyout in 2020 in a deal said to value the retailer at RM850 mil.

• Shell entertains billion-dollar deal with Saudi Aramco

  Shell is in negotiations with Saudi Arabia’s state-owned Saudi Aramco to sell its extensive gas station network in Malaysia, potentially valued at up to USD1 bil (RM4.74 bil), according to sources aware of the discussion. This network is the second largest in Malaysia, consisting of about 950 stations, surpassed only by Petronas. The talks, which began in late 2023, could see a deal finalised in the coming months. This move is part of Shell CEO Wael Sawan's strategy to concentrate on the company’s most profitable ventures, including plans to divest 500 stations globally within the next two years. Shell is also selling its Singapore refinery, which supports the Malaysian stations. While Saudi Aramco does not currently operate fuel stations in Malaysia, it is significantly invested in the region through a joint venture with Petronas where it owns 50% of the 300,000 barrels per day at the Pengerang refinery in Johor.

World Press Freedom Index serves as a benchmark, not a golden standard
Communications Minister Fahmi Fadzil stated that the World Press Freedom Index by Reporters Without Borders (RSF) serves as a benchmark rather than a definitive standard for assessing media freedom in Malaysia. Addressing the nation's recent drop to 107th in the 2024 index from 73rd last year, he noted that the index encompasses broader issues beyond media freedom, including actions under various ministries and LGBT concerns, which are sensitive within the ASEAN or Eastern context. Despite criticisms for falling behind countries like Israel in the rankings, Fahmi defended Malaysia's record by contrasting it with Israel's actions against media entities like Al Jazeera. He emphasised that Malaysia does not engage in such severe measures. In the ASEAN region, Malaysia is ranked second in press freedom, trailing Thailand but ahead of Indonesia, Singapore, and Vietnam. Though many are still reported and got taken action for their opinions. Guess freedom is relative.

Shorts:

1. BNM anticipated to maintain 3% OPR despite neighbours’ hikes

   HSBC anticipates that Bank Negara Malaysia (BNM) will maintain its overnight policy rate (OPR) at 3%. Unlike Indonesia and the Philippines, which have recently raised their interest rates to combat currency depreciation and inflation. The decision is likely due to the Ringgit’s performance, where a rate hike won’t be a cure-all for prevailing the USD’s strength.

2. Thailand’s Islamic religious authorities ban child marriages

   In 2018, the Central Islamic Court of Thailand implemented a ban on marriages for children under 17 after a 41-year-old Msian man married an 11-year-old Thai girl. It was the first incident to happen under their council and they immediately responded by placing the ban and an order to separate the man and the girl for five years pending the Syariah court’s decision. After one incident, they took action. How many child marriages have we allowed, and still allow?

3. ⁠JPJ says Bjak is not authorised to renew road tax licences

   JPJ Malaysia clarified that Bjak Sdn Bhd, a digital motor insurance platform, is not authorised to offer road tax renewal services. JPJ disputed Bjak’s claims of being audited and approved after receiving complaints about the inaccuracies in the road tax validity dates when renewed through Bjak. The department emphasized the lack of integration between its MySikap system and Bjak's system and disapproved of the additional fees charged by Bjak, advising the public to use official channels for any renewals. Why pay additional fees anyway?

4. AROUND THE WORLD 🌎

Gaza ceasefire one step closer - Hamas accepts proposal
Hamas has approved a proposal for a ceasefire put forward by mediators Qatar and Egypt, the Palestinian group announced, although Israel has yet to announce anything on the proposal. The details of the proposal are not immediately known. Earlier, it was reported that Israel proposed a 40-day ceasefire in exchange for 33 Israeli captives and the release of a large number of Palestinian prisoners. Israel insisted that any agreement would only include a pause rather than a permanent end to hostilities until Hamas is wiped out. Hamas’ earlier key demands for a ceasefire include a permanent ceasefire, a complete Israeli withdrawal from Gaza and the return of displaced families to their homes. 

Hamas’ statement came as people started fleeing Rafah in the southern Gaza strip as Israel ordered the evacuation of tens of thousands of people as it prepares for a military assault, believing thousands of Hamas fighters are holed up there. More than 1.4 mil Gazans have taken refuge there since the war.

Egypt’s new, unnamed USD58 bil capital
Like Indonesia, Egypt is getting a new capital. But instead of a sinking city that Indonesia has to face with Jakarta, Egypt is responding to an overcrowding of its capital, Cairo, with a population of 22 mil (total population of 111 mil), making it one of the world’s most densely populated metropolitan areas. The capital, about 48 km away in the desert from Cairo has no official name yet and is referred to as the New Administrative Capital. 

Egypt’s government estimated it would cost USD58 bil to complete the new capital. Currently, it already has an imposing 396-meter, 77-floor skyscraper, Iconic Tower, which was completed last year, making it Africa’s tallest building. The new capital is also home to one of Africa’s largest mosques, The Grand Mosque, which can hold 107,000 worshippers (think Bukit Jalil stadium’s capacity + 26% more). Take a tour of its new capital here.

The man who will replace Warren Buffett to make Berkshire’s investment
Berkshire Hathaway held the Woodstock of Capitalism (aka annual general meeting)  over the weekend. As usual, its reported numbers are just massive. But unlike the usual, this time around, Buffett’s right-hand man Charlie Munger did not join him on stage as he passed away late last year at 99. Buffet himself is 94. During the AGM, Buffett offered the clearest insight into his succession plan after years of speculation on who is going to manage. Berkshire’s cash pile which now stands at USD189 bil and a gigantic equity portfolio of USD362 bil (about ⅓ or USD135.4 bil of that in Apple)

Greg Abel, 61, became known as Buffett’s heir apparent as CEO of Berkshire in 2021 but Buffett thought then to keep the role of the investment chief separated. But now, Buffett has changed his mind that the CEO should be also responsible for asset allocation. Berkshire has another 2 investment managers, Todd Combs and Ted Weschler, both former hedge fund managers, managing a smaller portion (about 10%) of Berkshire’s stock portfolio. Read Abel’s profile here.

Qantas fined AUD100 mil for ‘ghost flights’
Australian airline Qantas, long-dubbed the “Spirit of Australia”, agreed to pay a AUD100 mil (USD66 mil) penalty over the ‘ghost flight’ scandal for selling tickets on thousands of flights it had already decided to cancel. Qantas kept selling tickets - typically for more than two weeks, but sometimes longer than a month - for these thousands of flights it had already scrapped. The airline will also fork out USD13 mil in compensation for 86,000 travellers (average USD151 per traveller) impacted by the cancellations and botched rescheduling. The total USD79 mil damage is insignificant, considering the 103-year-old national carrier earned an annual profit of USD1.1 bil last year.

5. FOR YOUR EYES 📺

1. To think of it, humans eat a lot of animals but barely eat carnivores. Some reasons - meat texture and energy inefficiency.

2. It’s only Tuesday and if people at work are already getting on your nerves, here’s how to filter your foul language energy for the purpose of peacekeeping.

3. Amazon founder Jeff Bezos’ annual letter to its shareholders following the dotcom crash in 2000. Amazon’s share price collapsed by more than 80%, yet the company was recording impressive operating metrics. In many cases, stock prices do not reflect the true underlying fundamentals of a business. Warren Buffett’s guru, Benjamin Graham, sums it up perfectly: “In the short term, the stock market is a voting machine; in the long term, it is a weighing machine”.