☕️ Tealive, Bask Bear owner Loob Bhd to IPO

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

A man recently won a staggering RM2,151,664 from the lottery, a fortune he entirely attributed to a promise he made. Inspired by his educator grandfather and great-grandfather, he vowed to donate all lottery winnings to his alma mater. The journey to this win began modestly when he won RM60 from a small 1+3D bet. He slipped the winnings, including a RM50 note, into his wallet. Shortly after making his solemn vow, he remembered the RM50 note, and its serial number '140' immediately caught his eye. He then placed a 3+3D Bonus bet using the numbers '140' and '410', symbolically picking the Chinese zodiac sign 'Tiger' to honour his mentors.

US airlines generated a significant USD7.27 bil (RM30.7 bil) from check-in baggage fees last year, according to federal figures. This marks an increase from USD7 bil in 2023 and USD5.76 bil in 2019, clearly indicating a growing revenue stream for carriers. Unsurprisingly, this trend is driving a surge in demand for carry-on luggage that adheres to airline size restrictions, as confirmed by Kirsty Glenn of UK luggage firm Antler. Looking broader, the International Air Transport Association projects that the global cost of all airline extra fees—including everything from baggage and seat selection to Wi-Fi and lounge access—is expected to hit USD145 bil this year, accounting for 14% of the sector's total revenues, up from USD137 bil last year.

The United States economy added a solid 139,000 jobs in May, a figure that, while exceeding forecasts, indicates a noticeable slowdown in hiring compared to April's 147,000 additions. Labor Department data released on Friday also included significant downward revisions for March and April, reducing those months' totals by 95,000 jobs. The unemployment rate remained steady at 4.2%, and average wages saw a slight uptick of 15 cents, or 0.4%. Adding to the picture of a slowing job market, private payroll firm ADP reported on Wednesday that the US economy added just 37,000 jobs in May, marking the lowest figure in two years. This more immediate report from ADP suggests a sharper deceleration than the Labor Department's slightly lagging data.

3. IN MALAYSIA 🇲🇾

MCMC to become Ethan Hunt’s Impossible Mission Force (IMF)?
According to industry sources, in April, the Malaysian Communications and Multimedia Commission (MCMC) sent a letter to telco companies, requesting that they submit detailed call and internet logs for the first quarter of the year, apparently for Putrajaya’s Mobile Phone Data project. The sources quoted that the information requested included call records, IP call records, location, latitude and longitude. This instruction from above led to transparency concerns, as the Government is not bound by local laws governing data protection and privacy.

In an attempt to calm the nerves of the public and the industry, Communications Minister Fahmi Fadzil stated that telco companies will ensure that all data shared with the Government is anonymous and will not hand over information containing personal data. Fahmi added that the data collection directive is for statistical knowledge, to churn out detailed information such as service quality, service levels, and the number of users within specific sub-districts or districts. Fahmi iterated that with more granular information obtained in the future, more evidence-based policy planning can be carried out. But, can we trust MCMC to store the data safely? With the recent cyberattacks on KLIA and Bursa Malaysia, we are just not too confident.

Data transparency and cybersecurity are among the concerns with this new directive from Putrajaya, but in all honesty, is MCMC slowly turning into a spy agency? The collection of metadata, as MCMC is trying to do, is akin to what the US National Security Agency (NSA) did after 9/11, for intelligence analysis. Such information is used to map communications networks, identify potential targets, and, as Edward Snowden, an NSA whistleblower, revealed, such metadata is also used for tracking and surveillance purposes. While we know MCMC intends to store and analyse the data, the regulatory body does not disclose the computing power or software that will be used for the analysis of the data, making the full capabilities of what MCMC can do with the data remain unknown. We just hope that MCMC is not trying to build another ‘Entity’, that would require the likes of Tom Cruise or even Keluang-man to save the day.
Learn: What is metadata

Fahmi Reza to sue Putrajaya for the immigration blunder
Following the ‘mistake’ by the authority that denied the political graphic designer from travel overseas, activist Fahmi Reza is committed to suing Putrajaya. Fahmi stated that he was not satisfied with the response from both PM Anwar Ibrahim and Inspector-General of Police Razarudin Husain, where, according to him, both of them only passed the blame and did not take accountability for the mistake that had happened. Quoting Fahmi: “I am just a regular citizen. You guys restricted me, troubled me, wasted my time and money, and then just washed your hands without admitting guilt.” This was not the first time that Fahmi’s freedom of movement was restricted this year, as two weeks ago, Fahmi was denied entry into Sabah and was deported back, presumably due to his action for putting up caricatures that painted Sabah governor Musa Aman as a corrupt individual, last December.

As for the IGP’s response, he stated that no travel restrictions were imposed on Fahmi Reza, and there was a ‘misunderstanding’ occurred during the border check. However, the police have placed his name on a list of people to monitor for internal reference purposes due to an ongoing investigation involving him. But, Razarudin mentioned that being on the monitoring list does not constitute a travel ban.

Shorts

1. Tealive owner to IPO

   The operator of Tealive and Bask Bear, Loob Bhd, is eyeing to listing on the Main Market of Bursa Malaysia as the company is looking to raise additional funds to finance the opening of 12 new Tealive stores and 13 Bask Bear stores, and to repay existing borrowings. At the moment, Uttama Ltd is the biggest shareholder of Loob Bhd, holding a 30% stake. Uttama is wholly owned by Creador IV LP. The private equity operator also previously took public Mr DIY and Eco-Shop. Post-listing, Uttama’s stake is projected to fall to 8.5%. Its IPO pricing is not known yet. View the prospectus here.

   

   Loob Financial Highlights

2. Job contracts now need to be stamped
   After receiving backlash from the public, the Inland Revenue Board (IRB) announced that job contracts signed before January 1, 2025, will be exempted from stamp duty, and any penalties for late stamping will be waived. This decision was made after the IRB woke up one day and decided to enforce an archaic rule under the Stamp Act 1949, where formal employment contracts are subjected to stamp duty, regardless of whether they are for full-time or part-time, local or foreign staff, at a flat rate of RM10 per contract. Squeezing money from every corner eh, Putrajaya?

3. Malaysia to mediate Thailand-Cambodia border dispute

   Following the death of a soldier at the Thailand-Cambodia border and the subsequent military buildup by the two ASEAN members, PM Anwar Ibrahim, as the chair of ASEAN, has stepped up to mediate the dispute between the two countries, in a bid to prevent another India-Pakistan level hostility (good thing is, both Thailand and Cambodia are not nuclear-powered like India and Pakistan) within the region. PM Anwar has talked to both Cambodian and Thai leaders separately, and Cambodian PM Hun Manet has expressed his desire to find a permanent solution to the conflict that stemmed from a border dispute.

4. AROUND THE WORLD 🌎

Oh dear, America

Trump-Musk Bad Bromance
It turns out that Donald Trump and Elon Musk are no longer besties, and Trump said that he does not even bother to fix the relationship. ICYMI, the fallout between the two began after Musk publicly criticised the president's tax and spending bill, calling it a “disgusting abomination’ although he did not criticise Trump directly. Trump was “hurt” and said that he was disappointed with Musk’s behaviour, in which Musk responded with a flurry of tantrum posts on X. Trump then said that Musk has gone “crazy” and responded with a threat to cut Musk’s contracts with the federal government, which also includes SpaceX. So what happens next? Can’t tell for sure, but the row has rapidly sent Tesla shares tumbling by 14%.
Read: Trump and Musk: The 10 days that unravelled their relationship

Immigration protests in LA
Trump’s “war” against migrants continues in the US. This time, federal agents in riot gear and gas masks are forced to clash with angry protestors after masked and armed immigration agents carried out high-profile workplace raids in separate parts of Los Angeles on Friday. The standoff took place in the suburb of Paramount, where demonstrators had gathered near a Home Depot that was being used as a staging area by federal immigration officials.

On Saturday, things became uglier as protestors chanted for Immigration and Customs Enforcement (ICE) agents to get out, while some waved Mexican flags and others set a US flag on fire. Trump said that the administration would deploy 2,000 members of the National Guard if the violence continues, but California Governor Gavin Newsom called the decision “purposefully inflammatory”. Los Angeles is the second-most populous city in the US. The suburb of Paramount is home to about 50,000 people, with 82% Hispanic or Latino, according to US Census data.

Does not matter if you are a top TikToker
In another news, the world's top TikToker Khaby Lame, has been briefly detained by ICE for immigration violations. It said that Lame entered the US on April 30 and overstayed the terms of his visa. He was granted voluntary departure June 6 and has since departed the US. Not sure who he is? See his IG profile and you will immediately recognise. 

Singapore’s Temasek taking it easy with start-up investments
Giant investor Temasek has decided to tread more carefully when it comes to investing in early-stage companies, a cautious move taken after hundreds of millions of dollars were lost in collapsed start-ups in recent times. Among the failed endeavours is an investment in crypto exchange FTX, where it had to write off its USD275 mil investment when the crypto exchange filed for bankruptcy in 2022. Another embarrassing blow was eFishery, an Indonesian start-up that developed automated feeding systems for fish and shrimp farmers, but has been rocked by allegations of inflated sales and profits figures.

Temasek’s investments in early-stage companies dropped from USD4.4 bil in 2021 to USD509 mil last year, with just USD70 mil committed so far this year. Over the same period, the firm cut the number of first-round investments it made in unlisted companies from 82 in 2021 to 11 last year. Sources were saying that it will continue to invest in start-ups indirectly through venture capital funds, but its direct investments have shifted to making bigger commitments to a smaller pool of companies that are closer to going public.

Would you swallow a poo-pill?
There might be a “simpler” solution to antibiotic resistance in the near future, as doctors in the UK are attempting to use pills containing freeze-dried faeces teeming with good bacteria to “flush out” antibiotic-resistant superbugs in human bowels. These superbugs are particularly problematic if they can escape the intestinal home, causing trouble elsewhere in the body, such as urinary tract or bloodstream infections. The early research involves patients swallowing pills made from freeze-dried donated faeces, with harmful bugs and undigested food removed. Interestingly, data from the studies have shown that the good bacteria released are still being detected in the bowels at least a month later, and showed “really promising signals” that it could take over the space on the lining of the gut, and get rid of dangerous superbugs or reduce it to a safe level. Scientists are quite excited with this prospect, citing that if this poo pill works, it could be a great replacement for antibiotics treatment in the future.

Shorts

1. Colombian presidential candidate shot at campaign event

   Colombian senator Miguel Uribe, who is running for the presidency in 2026, has been shot during a campaign event in a public park in the Colombian capital yesterday, allegedly by a 15-year-old gunman who is now in custody. Miguel Uribe, 39, has reportedly undergone a successful first operation after arriving in the hospital in a critical condition, and had entered critical hours of recovery at the time of writing. He is a member of the opposition conservative Democratic Centre party, and is from a prominent family with links to the country’s Liberal party. Warning — watch the scene here with caution.

2. Hundreds of thousands of people gather in Rome for Palestine

   A massive number of 300,000 people had taken to the streets in Rome in a rally organised by the left-wing opposition party to ask the government for a clear position on the conflict in Gaza. PM Giorgia Meloni was recently pushed by the opposition to publicly condemn Netanyahu’s offensive in Gaza, but many observers considered her criticism too timid and the government too silent. Israel’s war on Gaza has killed at least 54,772 Palestinians and wounded 125,834 to date, according to Gaza’s Ministry of Health.

5. FOR YOUR EYES 📺

1. Meet Lucy Guo, the 30-year-old co-founder of Scale AI, who unseated Taylor Swift as the youngest self-made woman billionaire. Founded in 2016, the company is a data labelling startup backed by NVIDIA, Amazon and also Meta. Facebook parent Meta is reportedly in talks over an investment that could exceed USD10 bil in the company. She made Forbes’ 30 under 30 list in 2018. If you follow this list closely enough, it has been more of a red flag to be on this list than an honour.

2. The recent scandal at another AI startup, Builder.ai, backed by Microsoft, has given new meaning to these acronyms.

3. The time it took to reach 100 mil users. Is AI a bubble? Perhaps not. 5 ways AI differs from past tech trends — listen here.