☕️ SPM 2023: Best results since 2013

MACC’s ‘Ops Power’ crackdown on illegal bitcoin mining saves TNB RM2 bil. Israel continues to middle-finger the Int'l Court of Justice. Elon Musk's AI company xAI raised USD6 bil.

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The Coffee Break
May 28, 2024

1. MARKET SUMMARY 📈

Information as of 0745 UTC+8 on May 28, 2024. The US Markets were closed on Monday due to Memorial Weekend.

2. NUMBERS AT A GLANCE 🔢

What’s Malaysians’ favourite EV? Tesla Model Y, at least in terms of registered vehicles. The nation’s top-selling EV in the first 4 months of the year goes to Tesla Model Y with 1,138 units, accounting for 18.3% of total EVs registered, according to the latest vehicle registration data from JPJ. This is followed by BYD Atto 3 (1,118 units) and Tesla Model 3 (862 units). In the same period, a total of 6,298 EVs out of 275,712 vehicles registered are EVs (2.28%). For the whole of 2023, 13,301 out of 832,340 vehicles registered were EVs (1.6%), indicating an increasing trend in EV adoption, albeit from a small base. For the data nerds, you can view vehicle registration transaction data from 2000 to the present here via data.gov.my.

Iraq has 145 bil barrels of proven oil reserves amounting to 96 years’ worth of production, making it one of the world’s largest crude reserves in the world. The oil-rich country aims to boost its crude reserves to more than 160 bill barrels as it launched more licensing projects. Iraq is heavily dependent on oil to fund its budget, with crude oil sales making up 90% of its budget’s revenues.

Global spice powerhouse India exports more than 200 spices and value-added products to some 180 countries, worth USD4 bil (RM18.8 bil), according to the Spices Board of India. Its domestic market alone is worth a staggering USD10 bil (RM46.98 bil, making it the world’s largest consumer of spices. Major spices exported include chilli powder, cumin, turmeric, cardamom and mixed spices and other notable spices include saffron, nutmeg and cinnamon. China, the US and Bangladesh are the biggest markets for Indian spices. Suddenly, the movie seems real.

3. IN MALAYSIA 🇲🇾


SPM 2023 examinations saw an overall improvement compared to 2022 and showed the best results since SPM 2013 – up by 1.9%. 373,255 candidates sat for the examination in 2023. Notable highlights of the exam results:

  • Straight As: 11,719 of 349,297 candidates obtained straight As, up 2.7% in 2022.

  • The National Average Grade (GPN) improved to 4.60 from 4.74 in 2022 (the lower the scoring, the better).

  • Pass rate: 226,358 candidates (60.6%) passed all subjects, up from 57.1% in 2022.

  • Eligibility for Certificate: 93.5% (349,297 of the total 373,255 candidates) are eligible for the SPM certificate, an increase from 342,742 in 2022.

  • Best subject performance: Bahasa Melayu

  • STEM subjects: All four (Physics, Biology, Chemistry, and Additional Mathematics) showed improvements, with Physics having the highest performance improvement.

  • Absenteeism: Over 10,000 candidates were absent, a decreased number from 2022. The reasons for their absence have yet to be identified.

Additionally, for the first time in the history of the Prisons Department, four candidates from integrity schools (SI) and Henry Gurney School (SHG) achieved outstanding results, obtaining straight As. Three candidates scored 8As, while one achieved 6As. The students, aged 17 to 21, come from SI Marang, SI Kluang, SI Puncak Alam, and SHG Telok Mas. A total of 74 candidates from seven SIs and three SHGs took the exam, all passing or qualifying for the certificate, marking the best results in 5 years. These outstanding candidates would be encouraged to pursue higher education through partnerships with universities and colleges to help them get back on track. These kids deserve a brighter and better future, this is the first step.

MACC’s ‘Ops Power’ crackdown on bitcoin mining saves RM2 bil.
TNB has saved up to RM2 bil in revenue through a collaboration with MACC in an operation called 'Ops Power,' targeting illegal bitcoin mining activities. This cooperation began two years ago and has significantly reduced TNB's losses from illegal bitcoin mining operations. During the Ops Power operation against a bitcoin syndicate in early 2022, it was discovered that electricity theft due to bitcoin mining resulted in a loss of up to RM2.3 bil for TNB from 2018 to 2021. MACC identified instances of TNB employees being offered bribes ranging from RM3,000 to RM300,000 to overlook illegal activities and leak operational information. MACC's efforts led to the seizure of RM2.37 mil from 998 bitcoin mining premises, the freezing of RM4.47 mil in assets belonging to 97 individuals and 29 companies, and the confiscation of 1,157 bitcoin machines worth RM2.34 mil.

Last week, a video tour of an RM2.5 mil mining farm in an empty shopping mall in Malacca went viral. 90% of the electricity from the mall is used for mining with a power bill of RM940k. The mining farm is a partnership between Singapore-listed Hatten Land and Frontier Digital Asset Management. Check it out here.

Business

  • Kuok Group buys back mall from Singapore’s sovereign wealth fund
    Singapore-based Allgreen Properties Ltd, controlled by Malaysia’s richest man Robert Kuok, has repurchased a 70% stake in Johor Bahru City Square (JBCS) mall from Singapore's GIC Real Estate Pte Ltd for an estimated RM850 mil. This reacquisition marks Kuok Group's return as a major shareholder in the 540,000 sq ft mall, now holding a 76% stake through two companies. Robert Kuok must be sensing new opportunities with recent changes in power. The purchase is significant amid the upcoming Johor Bahru-Singapore Rapid Transit System (RTS), with a station located just 500 metres from the mall, expected to boost the mall's prominence. It was reported that GIC back in 2004 paid close to RM500 mil for Kuok’s stake.

  • Japanese IT firm NTT Data Corp acquires over 50% of GHL Systems
    Japanese IT and consulting firm NTT Data Corp acquired a 58.73% stake in GHL Systems Bhd for RM724.08 mil, paying RM1.08 per share, a 6.9% premium over the last traded price. NTT Data bought stakes from UK private equity firm Actis, Apis Partners, and GHL’s vice chairman Loh Wee Hian and his controlled entity Tobikiri Capital Ltd. NTT Data is a subsidiary of Nippon Telegraph and Telephon Corp, the Japanese telco giant known as NTT with a market cap of USD82 bil.

    This acquisition triggers a mandatory general offer for the remaining shares. NTT Data plans to delist GHL if it secures over 90% ownership and will not address public spread shortfalls if it controls over 75%. To fully control GHL, NTT Data needs an additional RM508.74 mil. GHL's shares have risen 45% this year due to increased cashless transactions. The company operates in several Southeast Asian countries and Australia, with over 480,000 payment touchpoints. GHL reported a net profit of RM28.81 mil on RM460.37 mil revenue for FY2023.

Shorts

  1. RM200 diesel subsidy application opens today

    The Budi Madani diesel subsidy programme commenced by the Finance Ministry will grant RM200 monthly to eligible individuals, small-scale farmers, and commodity growers. The subsidy is available to any Malaysian citizen earning an individual or joint annual income of RM100,000 or less who owns a private non-luxury diesel vehicle under 10 years of age. Application for the programme opens today (May 28) and closes June 3, with the first payment due mid-June. Apply here.

  1. EPF approves RM5.52 bil Account 3 withdrawals

    EPF has approved 3.04 mil withdrawals totalling RM5.52 bil from Account 3 (Akaun Fleksibel) since its launching on May 12. Additionally, the pension fund has received 2.86 mil applications as of May to transfer an initial amount from members’ Account 2 (Akaun Sejahtera) to Account 3, involving RM8.76 bil (average RM3.1k per member). Members under 55 can withdraw from Account 3 anytime with a minimum of RM50 and have until August 31 to transfer up to one-third of their savings from Account 2. Times are tough, folks. But this Akaun 3 is not a wise solution by Madani.

4. AROUND THE WORLD 🌎

Israel continues to middle-finger the ICJ
Last Friday, top judges at the United Nations’ International Court of Justice (ICJ) ordered Israel to halt its offensive in the southern Gaza city of Rafah and withdraw from the enclave. This decision marked the third time this year the 15-judge panel has issued preliminary orders seeking to rein on Israel’s assault on Gaza. While orders are legally binding, the court has no police to enforce them.

Instead, Israel did the opposite and continued with its murder spree. Israel bombed a Gaza camp, which it had designated a safe zone, killing at least 35 people. The Palestine Red Crescent Society said that many of those who died were “burned alive” inside their tents after a massive fire caused by the missile strikes. The Israeli attack followed Hamas’s first rocket attack on Tel Aviv in months, which Israel claimed was launched from the Rafah area. The Israeli military said its air force struck a Hamas compound in Rafah and was carried out with “precise ammunition on the basis of precious intelligence”. Many of the dead were women and children, health officials said. Israel is very generous with its precise definition. 

Turbulence again and compensation

  • A flight from Doha to Dublin on Qatar Airways experienced turbulence while airborne over Turkey, causing 12 people to be injured, of which 8 were hospitalised. Fortunately, no one died in this incident. Passengers said the plane seemed to drop out of the air for about 5 seconds during food-and-drinks service.

  • In the extreme turbulence on board a Singapore Airlines flight last week, passengers who were severely injured could reap six-figure payouts or more. The Montreal Convention, or MC99, is an international agreement that governs global airline liability in passenger death and injury cases. Created in 1999, the treaty established a more unified set of airline policies to protect passengers and hold airlines accountable, according to the International Civil Aviation Organization (IATA). Part of the agreement sets out that passengers who suffer injuries caused by an airline can recover up to USD170,000 (RM798.7k). However, the claims can vary dramatically due to factors such as which country the case is filed and how the legal system assesses the amount of compensation (e.g. emotional trauma, distress).

Deals

5. FOR YOUR EYES 📺

  1. After Spain and Portugal last week, Singapore had its chance to witness a fireball in the sky. It’s still unknown whether it is a meteor or an object from space burning up in Earth’s atmosphere.

  1. Have you watched an auction before? Check out below the 2017 auction of Leonardo da Vinci’s ‘Salvator Mundi’ painting depicting Jesus Christ, setting a world auction record price of USD450.3 mil. The painting is believed to have been purchased by Saudi Arabia’s Crown Prince Mohammed bin Salman via a proxy.