☕️ Tengku Zafrul: Exits UMNO, to enter PKR

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

A recent global survey by Pew Research Centre, conducted between January and May 2024 across 36 countries, reveals that a significant majority of Malaysians hold beliefs in life after death and a spiritual realm beyond visible perception. Specifically, 76% of Malaysian adults believe there is definitely or probably life after death, a sentiment mirrored in other Muslim-majority nations in the region. Furthermore, 66% of Malaysians expressed a belief in a spiritual dimension beyond the natural world, a view shared by majorities in most surveyed countries regardless of religious background.

A miniature dachshund named Valerie has been found alive on Kangaroo Island, Australia, after surviving 529 days in the wilderness. Valerie, who went missing from her owners' campsite in November 2023, endured intense heat and venomous snakes. Kangala Wildlife Rescue worked “around the clock” to locate her, eventually using her owner's t-shirt to create a scent trail leading to a trap.

In the Ontario riding of Carleton, where Conservative Leader Pierre Poilievre faced a challenge from 90 other candidates on the ballot, Elections Canada has implemented measures to facilitate voting. This unusually long ballot, which features two columns of alphabetically listed candidate names, was a result of a protest group, the "Longest Ballot Committee," fielding dozens of Independent candidates to advocate for electoral reform and oppose the first-past-the-post voting system. A similar two-column ballot was used in the 2024 by-election in Lasalle—Émard—Verdun, which also had 91 candidates running. Poilievre lost the seat in Canada’s general election in late April this year.

3. IN MALAYSIA 🇲🇾

Tengku Zafrul: Exits UMNO, to enter PKR
Like a ticking time bomb, that finally stopped ticking and went kaboom. International Trade & Industry Minister, Tengku Zafrul, has announced his resignation as an UMNO supreme council member, Kota Raja UMNO division chief and UMNO member. This announcement has triggered panic and reactions from many parties. On one hand, another UMNO supreme council member, Mohd Puad Zarkashi, is calling for Tengku Zafrul’s head and has demanded that UMNO review the pledge signed by Tengku Zafrul during GE15, including the possibility of demanding RM100 mil in compensation. However, his fellow UMNO comrade, UMNO deputy president cum Foreign Minister, Mohamad Hasan stated that the pledge is not enforceable as Tengku Zafrul did not win the election.

Okay, nak penalise tak boleh. Fine. But actions must have consequences. Enter the UMNO president, Ahmad Zahid Hamidi. As Tengku Zafrul is no longer an UMNO member, Ahmad Zahid wants another Cabinet minister’s post to be allocated to UMNO. This was because the party had seven Cabinet ministers previously, and with Tengku Zafrul’s exit, this would mean the Barisan Nasional's lynchpin is left with only six ministers. With Rafizi and Nik Nazmi having both vacated their ministerial positions, this Tengku Zafrul news does not soothe PM Anwar’s headache for sure.

Amidst the speculation that Tengku Zafrul may join PKR, former PKR deputy president, Rafizi Ramli, has warned PKR not to accept Tengku Zafrul into the party, as it may unleash a tide of uncertainty within the unity government. But, Rafizi did acknowledge that the unity government agreement that he helped draft contains no clear rules on parties accepting each other’s members.

Scam Kebangsaan

MBI Scam
Bukit Aman Commercial Crime Investigation Department acting director Comm. Muhammad Hasbullah Ali announced that three individuals, including one with a ‘Tan Sri’ title, have been arrested to assist with the police investigation into an investment fraud scheme involving MBI International Group (MBI). Hasbullah claimed that the three individuals used their respective businesses as proxies to launder money generated from the fraud scheme. He also added that proceeds from the investment fraud scheme, worth about RM527 mil have been frozen by the police, consisting of luxury yachts, condominium units, monies in bank accounts and cash. With the arrests, the number of individuals detained in the MBI investment fraud case stands at 17, with total assets frozen and seized amounting to RM3.81 bil. Waiting for the names to be dropped.

Scam dari highway ke casino
MACC chief commissioner Azam Baki stated that from the RM1.3 bil raised from the ‘Islamic bond’ issued for the construction of a highway in Klang Valley, more than RM20 mil has been spent on gambling activities. Additionally, MACC also uncovered 300 bottles of luxury alcoholic beverages in a storage facility during a raid at a residence owned by the individual linked to the highway scam. So, how do they allegedly launder money from the funds raised from the sukuk? MACC believed that the individuals involved submitted false claims to siphon money away from the sukuk funds. In a way, the individuals haramkan duit yang halal and spent it on haram stuff - booze and gambling. Haram double dipping - two wrongs don’t make a right.

A US Judge sent 1MDB conspirators to two years in jail
Despite the cooperation given by the former Goldman Sachs banker, Tim Leissner, in the case of looting 1MDB, US judge Margo Brodie still sent Leissner to two years in jail. Previously, Leissner had pleaded guilty in 2018 for his role in the 1MDB scandal. His subsequent cooperation with the authorities has led to the conviction of one of his former colleagues, Roger Ng, and a USD2.9 bil fine to Goldman Sachs. Unfortunately, the US Court does not see Leissner’s cooperation as sufficient to wash off his sins, as US judge Margo Brodie stated that without Leissner, the massive fraud may never have happened. Even US prosecutor Drew Rolle said that - “We wouldn’t be in this mess if he (Leissner) hadn’t decided to rob a bank.”

Commodities Minister Johari Abdul Ghani, who is also the chairman of the 1MDB asset recovery taskforce, lambasted the decision by calling the sentence ‘too short’ for him, who previously faced a possibility of a maximum sentence of 25 years. Ghani said that Leissner should have been given the maximum jail sentence as he was ‘one of the masterminds’ of the scheme, which saw billions of dollars in public money siphoned off Malaysia’s investment fund. Malaysian and US authorities estimate that around USD4.5 bil was stolen in total from 1MDB.

AirAsia is in trouble in the Philippines
The authorities in the Philippines have ordered AirAsia’s digital platform, MOVE, to stop selling airline tickets in the country following complaints it charged ‘criminal-level’ high fares. Philippines’ Civil Aeronautics Board, which sets price ceilings for airfares in the country, says AirAsia hiked its prices following transportation troubles in Tacloban City due to the closure of a key bridge to trucks. Even the Philippine Transportation Secretary, Vince Dizon, accused AirAsia of ‘criminal economic sabotage’ and will file a case against AirAsia’s digital platform. During the weekend, AirAsia MOVE charged RM5,880 for a one-way ticket from Manila to Tacloban City via Philippine Airlines, three times the price quoted when directly booking in the flag carrier’s website.

AirAsia denied that its digital platform was manipulating fares. Instead, AirAsia blamed the high prices on a temporary data glitch, as the digital platform obtained flight pricing from its authorised upstream suppliers, including third-party aggregators and global distribution systems. AirAsia added that the technical discrepancy caused by the third-party provider is not isolated to MOVE as it also affected other booking platforms across the industry, including Agoda, Kiwi.com, and Traveloka.

4. AROUND THE WORLD 🌎

The trade war goes on and on

China vows firm response to US tariff truce violation
US President Trump has cried foul on the trade truce, accusing China of violating the truce. Further clarification from the Trump administration provided more detail, with US Trade Rep Greer saying that China has rolled back the tariffs, but has been slow to properly roll back other trade restrictions on the US that had been put in place as part of the exchange of retaliatory tariffs.

China has responded with accusations of its own of “discriminatory restrictions” as Beijing “resolutely rejects” the US accusations, with the Commerce Ministry stating that China has “strictly and sincerely” implemented the consensus. Beijing further accused the US of unilaterally introducing new guidelines on AI chip export controls, curbs on chip design software sales to China, and the revocation of Chinese student visas. The ministry promised that China will “continue to take resolute and forceful measures to safeguard its legitimate rights and interests”.

The stock markets have not reacted well, with Asian shares dropping alongside US stock-index futures, with Chinese stocks traded in Hong Kong falling as much as 2.9%, as investors are concerned the trade war will flare up again.

New startup incubator - to build weapons
The Pentagon’s startup arm, the Defense Innovation Unit, launched a university accelerator, a 12-week programme that will act as a military-grade Y Combinator, with early-stage startups being offered funding, mentorship, and Department of Defense connections. The programme targets 15 teams from US universities, working in categories such as space, AI, and cyber, among others, and will split USD500,000 between them evenly. Looking for the next Palantir (USD306 bil market cap), they are.

Business

UK govt offloads last of NatWest stake, marking end of painful rescue
NatWest Group has returned to full private ownership after the UK government sold off its remaining stake of less than 1%. The government had been selling shares in small blocks in recent years, and had a stake as large as 38% in December 2023. However, the sales of the shares were at discounted prices, meaning the government saw losses amounting to GBP10.5 bil (USD14.2 bil) from its GBP45 bil (USD60.6 bil) rescue package from back in 2008, when the government stepped in to protect savers and businesses from the consequences of the collapse of the Royal Bank of Scotland. For a timeline of the issue, check out this Reuters piece. Another case of privatising profit, socialising losses.

Another startup scandal: Microsoft-backed Builder.ai
Once a unicorn, Microsoft-backed Builder.ai has collapsed into insolvency after it was revealed that the startup’s flagship “no-code development” platform was not powered by AI. Instead, the platform was powered by 700 human engineers in India (so, AI in this case is Actually Indians?). What happened is that customer requests were routed to the Indian office, where the engineers wrote code instead of AI. The veil started unravelling when creditor Viola Credit, which lent the startup USD50 mil in 2023, seized USD37 mil from Builder.ai after it defaulted.

Digital banking startup Chime targets USD11.2 bil valuation in US IPO
The US-based startup is looking to raise USD832 mil by offering 32 million shares priced between USD24 to USD264. This particular listing is also being viewed as a litmus test for fintech IPOs, which have slowed down since the pandemic-era boom. Previously, Chime was valued at USD25 bil when it raised USD750 mil in a funding round in 2021 - that’s a more than 50% discount on its IPO price. Its new valuation target offers a decent discount to buyers to encourage participation, according to an analyst.

Shorts

1. Taylor Swift buys back master recordings

   The singer-songwriter phenomenon just became a billionaire last year and has completed one of her career goals of fully owning her musical catalogue. Sources indicated the deal with Shamrock Capital, the previous owners, was valued at USD360 mil. For a deeper look, check out this article by TIME.

2. PSG beat Inter Milan 5-0, wins Champions League

   Paris Saint-Germain lifted the trophy after thrashing Inter Milan 5 to 0 at the finals of the Champions League, marking the first time they won the cup, but also setting a new record for the winning margin of a Champions League final. The club owes its thanks to 19-year-old Desire Doue, who scored twice and set up a third goal for the team. And yet, despite winning, Paris descended into chaos with flares and fireworks set off, bus stops smashed, stores looted and cars torched amidst wild celebrations. 2 people have died and hundreds have been arrested across France. Winning has never looked so apocalyptic - watch here. Thrashing highlights below

3. Man injures 8 in Colorado with firebombs
   Four men and four women, aged between 52 to 88, were injured when a man threw firebombs while yelling “Free Palestine” at an event being hosted by Run for Their Lives, an organisation that aims to draw attention to the hostages seized in the aftermath of Hamas’ 2023 attack on Israel. Authorities and politicians are calling the attack antisemitic and will be investigating it as a terrorist attack. Watch the incident here.

5. FOR YOUR EYES 📺

1. Marie Kondo’s book sales plummet!

2. Talk about aesthetics — this house in Singapore makes one feel like they’re living in a resort.