☕️ Singapore offering RM5,000 to roti canai makers in MY

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

A recent report suggests that Southeast Asia has the potential to unlock USD300 bil (RM1.43 trillion) in additional annual revenues from green investments by 2030. To achieve this, governments in the region need to enhance cooperation on regional grids, carbon markets and offer better incentives for clean energy, along with clearer rules on green financing. The report, conducted by Bain & Company, GenZero, Standard Chartered, and Temasek, emphasises the importance of collective action in transitioning towards a more sustainable future. The key ingredient to enabling that to happen is USD1.5 trillion (RM7.15 trillion) in finance, policy incentives and regional cooperation to make this happen, according to the authors.
Read: Southeast Asia's Green Economy 2024 Report — Moving the needle

615 mil — monthly active users (MAU) on Spotify in Q1 2024. Although Spotify missed its forecast MAU of 618 mil, the music streaming company’s quarterly gross profit exceeded EUR 1bil (MYR 5.1bil) for the first time, driven by reduced marketing spending. Its shares rose 8% in premarket trading and gross margins improved to 27.6%, aided by profits from its podcast business. Despite lower MAU in the first quarter, Spotify aims to increase marketing spend to maintain growth. About 39% of its monthly active users or 239 mil are premium subscribers.

If China’s elderly population formed their own country, it would rank as the fourth most populous globally, trailing only behind America. This ageing demographic is growing rapidly, with China's over-60 population currently at 297 mil, constituting 21% of the total population. Projections suggest that by 2050, these figures will increase to 520 mil and 38%, respectively. Will China stop being the powerhouse by then?

3. IN MALAYSIA 🇲🇾

Tragic helicopter collision at Lumut navy base, 10 deaths.
At 9:32 AM on Apr 23, two helicopters collided during a flypast rehearsal, leading to the deaths of all ten crew members on board. The tragic incident occurred at the Royal Malaysian Navy (TLDM) base in Lumut, Perak, as the crew was practising for the TLDM’s upcoming 90th-anniversary celebration. The helicopters involved were a Eurocopter AS555SN Fennec and an Agusta-Westland AW-139, which crashed at the stadium stairs and a sports complex swimming pool, respectively. Following the crash, TLDM confirmed the fatalities and stated that an investigation board would be established to determine the cause. Our thoughts and prayers go out to the victims’ loved ones.

Eight contractors accused of bid-rigging in RM473 mil public tenders
The Malaysian Competition Commission (MyCC) named eight contractors allegedly involved in bid rigging across three public tenders valued at approximately RM473 mil. These tenders, two managed by the Public Works Department (JKR) and one by the Drainage and Irrigation Department, encompass services for constructing roads, pavements, bridges, and flood mitigation systems. MyCC chairman, Datuk Seri Mohd Hishamudin Yunus, stated that the contractors potentially breached the Competition Act 2010 by sharing information and coordinating bids in 2019.

Implicated companies include Dutamesra Bina Sdn Bhd, IDX Multi Resources Sdn Bhd, Mangkubumi Sdn Bhd, Menang Idaman Sdn Bhd, Meranti Budiman Sdn Bhd and Pintas Utama Sdn Bhd, all involved in all three tenders. Additionally, NYL Corporation Sdn Bhd and Kiara Kilat Sdn Bhd were mentioned in the JKR tenders. MyCC has provisionally found these firms guilty of collusion, although these findings are not final.

Proportionate vs disproportionate sentencing; minor theft vs abuse
64-year-old widower (with children to support) Jamaludin Yusof admitted to stealing 10 cans of sardines, four bottles of mouthwash, and two bottles of Nescafe from a convenience store in Parit Raja. He was charged at the Batu Pahat Magistrate’s Court under Section 380 of the Penal Code, which carries a maximum jail term of 10 years. Samantha Chong, a former deputy public prosecutor, criticised the decision to jail a senior citizen for minor theft. Highlighting the high costs associated with incarceration, approximately RM1,500 each month, Chong argued that community service would serve a more appropriate and cost-effective sentence under the Offenders Compulsory Attendance Act 1954. This case marks the need for structured sentencing guidelines in Malaysia, similar to the UK, to ensure penalties are proportionate to the crime and consider all mitigating and aggravating factors. 

To paint a clearer picture of how disproportionate the sentence is, in Balik Pulau, sales promoter Oo Saw Kee was sentenced to 10 years in jail and fined RM6,000 for splashing hot water on a man with Down Syndrome. The Sessions Court Judge Ahzal Fariz Ahmad Khairuddin described the act as “serious, cruel, inhumane”, particularly as there was no provocation from the victim, A. Solairaj. The incident occurred in an elevator on Apr 19, leading to burns on Solairaj. Oo, who pleaded guilty, was charged under section 326 of the Penal Code with a maximum sentence of 20 years. Instead, she was given the same sentence as the old man who stole a few tinned cans of sardines and Nescafe.

In the UK, a Sentencing Council guideline for offences allows for a more structured form of sentencing. For example, for theft from a shop or stall, categories are outlined to determine the degree of theft and how severe the sentencing should be. In Jamaludin’s case, he would only be sentenced to community service. Malaysia needs to adopt this to avoid disproportionate sentencing.

About cars: March vehicle sales data and ‘King of the Road’ dethroned
In March, vehicle sales dropped by 10% year-on-year to 71,052 units but increased 10% from Feb’s 64,290 units. This was attributed to the year-end financial closing and Hari Raya promos, according to the Malaysian Automotive Association (MAA). Year-to-date sales rose by 5% to 202,245 units, with passengers up 8% and commercial vehicles down 16%. Vehicle production in March decreased by 12% to 66,923 units compared to last year, contributing to a 6% increase in the first quarter production to 210,431 units. MAA anticipates a sales dip in April 2024 due to shorter working days during Hari Raya.

In other news, the Perodua Bezza has dethroned Myvi’s 5-year reign as “Malaysia’s King of the Road” in 2023. According to JPJ, 56,735 Bezza’s were registered in 2023, outnumbering Myvi (45,014). Surprisingly, JPJ’s data also showed that Proton has not been able to penetrate the top three since 2016, as Perodua continues to make a clean sweep (Bezza, Myvi, followed by Axia). Possible factors of the shift from Myvi to Bezza include price, fuel consumption, and luggage capacity. But does the Myvi still have a special place in our hearts? Absolutely, 100%!

Singapore is poaching Msian roti canai makers
Singapore’s high demand for roti canai (or roti prata) has led to Malaysian newspapers advertising positions with salaries starting at RM5,000 – including perks such as accommodation, meals, and prayer rooms. Despite the very attractive salary and benefits, the Restaurant and Bistro Owners Association cautions that the wages might not sufficiently cover the high cost of living in SG. Jeremy Lim, the association’s vice president, highlighted that expenses like housing and transportation could diminish its value, potentially not offering a comfortable lifestyle there. This trend is indicative of Malaysia’s continuous challenge in retaining culinary talent, with many professionals moving abroad for better opportunities. First our nurses, now roti canai makers also? AI will never be able to replace such workers.

Malaysian Indian People’s Party officially joins Perikatan Nasional
The Malaysian Indian Indian People’s Party (MIPP) has joined Perikatan Nasional, as PN Gen-Sec Hamzah Zainudin confirmed. Decided in a supreme council meeting led by Muhyiddin Yassin on Monday, the inclusion is seen as a move to bolster PN’s representation of all Malaysian demographics. Established in 2019 (this is the first time we heard of them…), MIPP is the first Indian-based party in the PN coalition. Party leader P. Punithan noted that this step reaffirms the coalition’s commitment to the Malaysian Indian community. Meanwhile, PN is preparing for the upcoming Kuala Kubu Baharu by-election, with nominations set for Apr 27 and polling on May 11.

4. AROUND THE WORLD 🌎

US set to sanction IDF battalion over abuse
US plans to sanction the Netzah Yehuda battalion in the Israel Defense Forces (IDF) for alleged human rights abuses in the occupied West Bank. This would be the first time the US has imposed sanctions on an Israeli military unit, which is composed of over 900 soldiers. The sanctions are in line with the 1997 Leahy vetting policy, which prevents the battalion from receiving US military assistance or training. The move follows a State Department investigation of Palestinian abuse reports. Israeli Prime Minister Benjamin Netanyahu and Minister of Defense Benny Gratz opposed the potential sanctions. The Netzah Yehuda unit is part of the Kfir brigade and has a history of alleged human rights abuses towards the Palestinians.

Euro Zone business in services-led increased in April
Business activity in the eurozone surged to its highest level in almost a year. This was driven by a strong recovery in the service industry. According to the HCOB preliminary Eurozone Manufacturing Purchasing Managers' Index (PMI) survey, economic activity rose to 51.4 this month, up from 50.3 in March, surpassing expectations. For Europe's largest economy, Germany, the private sector returned to growth, driven by the service sector. In the same industry, France expanded for the first time in nearly a year. Meanwhile, British businesses also recorded their fastest growth over the same period, signalling a bigger rebound from last year's recession than expected.

US sues to block Tapestry-Capri USD8.5 bil merger
The Federal Trade Commission (FTC) has filed a lawsuit to block Tapestry's USD8.5 bil (RM40.6 bil) acquisition of Capri Holdings, which owns Versace, Jimmy Choo and Michael Kors. Tapestry is the parent company of Coach, Kate Spade and Stuart Weitzman.

The FTC claims the acquisitions would eliminate competition among these brands, giving Tapestry dominance in the "accessible luxury" handbag market.  Tapestry and Capri defended the deal, stating that it is pro-competition and beneficial for consumers. However, the FTC said the merger could harm competition in the labour market, potentially affecting wages and workers' benefits, as the combined business would hire approximately 33,000 people worldwide.

The move by the agency displays a tougher antitrust policy under chair Lina Khan. This aims to preserve competition in the labour market and prevent anti-competitive conduct across the US economy.

All about China

1. Wrecked by weather: Guangdong hit by massive flood
   China has evacuated over 100,000 people from Guangdong province due to heavy rain, which has caused flooding and claimed four lives and 10 others are still missing. Torrential rains have swollen rivers, pushing flood warnings to a level not “seen around over a century.”

   Footage shows flooded villages, farmland and cities, along with collapsed bridges and floating vehicles from across the province. In addition to the 110,000 evacuated people, at least 25,000 are in emergency shelters. In Guangzhou, the capital city, the cumulative rainfall for the month of April has reached 609mm, which is the highest recorded since 1959.

   The Pearl River Delta region, known as a manufacturing hub and home to around 127 mil people, has been hit hard. The area usually sees heavy rains around September.  Authorities urged precautions against flooding as water logging, flash floods, landslides, and mudslides continue. 
   Read: UN report on Asia climate change

2. China Bubble tea maker drops 38% in HK’s biggest debut in 2024
   Sichuan Baicha Baidao Industrial Co. or Chabaidao, China’s third-largest fresh tea drinks maker, fell more than 38% in its trading debut in Hong Kong. The company raised HKD2.59 bil (MYR1.58 bil), making it the biggest new share sale since November 2023. Its shares plunged to as low as HKD10.80 on intraday trading, from the IPO price of HKD17.50 before closing at HKD12.80 (-26.9%).
   The poor debut may make other tea-chain operators, such as Sexy Tea and Mixue Group, think twice about an IPO. Chabaidao plans to use half of its IPO proceeds to improve operations and strengthen its supply chain.

3. China wants everyone to trade in their old cars, fridges to help save its economy

   China is introducing a major stimulus program to boost its electric vehicle (EV) industry and upgrade its stock of industrial and household equipment. The plan includes subsidies for consumers who purchase new EVs or energy-conserving cars and incentives for scrapping old machinery. The program aims to encourage consumer and business spending, support domestic demand, and rebalance the economy.

5. FOR YOUR EYES 📺

1. How do toilets actually work? Slightly NFSW.

2. Boeing vs Airbus - number of incidents