☕️ Teraju's RM1 bil facility for 1,000 bumiputra companies

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

Japan’s Kansai International Airport has lost a grand total of zero (0) luggage since its opening in Sep 1994, gaining international recognition for prompt and reliable baggage delivery. According to SITA, an aviation-related system developer based in Switzerland, the world’s airline companies mishandled an average of 7.6 pieces of baggage per 1,000 passengers in 2022. Lost bags typically occur due to staff failure and errors. Kansai Airport, which handled about 10 mil baggage items in 2023, is able to maintain such a pristine record due to a multilayered checking process, where each part of the baggage transfer process is ascertained by at least 2 or 3 staffers. The airport also sets a goal of getting bags to the baggage claim area within 15 minutes after a plane arrives. Btw, taking the second place for the world’s best airport for baggage delivery in 2024 is Singapore Changi Airport.

What’s the probability of you falling for an investment scam? About one-third, according to the Securities Commission (SC)’s survey of 1,302 individuals in its latest report titled Understanding the Level of Vulnerability Towards Investment Scams and Readiness for Retirement Planning. Vulnerable people typically exhibit a ‘common financial trait’ that scammers could potentially exploit as follows:

• Dependent on third parties, such as family and friends, for investment advice instead of relying on their own judgment.

• Inclined to attend investment seminars and easily persuaded to participate in investment schemes.

• Experienced negative life experiences, such as financial difficulties, personal stress or previous scam encounters.

  View the report here.

USD500 bil (RM2.34 tril) - the combined net worth of the top 10 women on the Bloomberg Billionaires Index. They have each amassed fortunes of more than USD25 bil. Taking the top position is Francoise Bettencourt Meyers, with a net worth of USD100 bil, who inherited a one-third stake from her mother in the French cosmetics giant L’Oreal founded by her grandfather, Eugene Schueller. Other women on the list include heirs from the Walton family of retailer Walmart, candy maker Mars and automaker BMW.

3. IN MALAYSIA 🇲🇾

More plans and initiatives for Bumis by Madani:

• Realigning 3 Bumi agencies to amp-up ‘economic participation’

  Economy Minister Rafizi Ramli announced a strategic shift for Teraju, Yayasan Peneraju (YP), and Ekuiti Nasional Bhd (Ekuinas) under the Ministry of Economy – moving away from providing grants to offering financial leverage and assistance for business growth instead. Rafizi emphasised that the new approach involves giving credit rather than "free money," ensuring companies repay the financial support they receive. This strategy is designed to extend the reach of financial assistance to more Bumiputera businesses, fostering a more competitive ecosystem.

  As part of the realignment, Teraju will focus on financial support and business expansion, YP on talent development, and Ekuinas on wealth creation and corporate equity ownership. By 2030, YP aims to develop 10,000 industry-ready Bumiputera talents, Teraju plans to offer RM1 bil in financing through private sector collaboration to support 1,000 companies, and Ekuinas will invest RM800 million to back successful entrepreneurial firms.

• Teraju’s RM1 bil fund to help 1,000 Bumi companies

  Teraju declared an RM1 bil financing facility to transform 1,000 micro and small Bumiputera companies into medium and large firms capable of competing globally by 2030. Teraju's CEO, Junaidy Nawawi, stated that the fund, sourced primarily from private sector collaborators, aims to elevate unbankable firms to bankable and investable entities. The fundraising, expected to be completed this year, will involve partnerships with financial institutions, targeting RM5 for every RM1 pledged by Teraju. The initiative will focus on fostering new market links, sourcing new funding, and potentially engaging in mergers and acquisitions. This approach aims to reduce dependence on government funding and encourage private sector participation, including investments from both banks and non-Bumiputeras.

  One good thing to take away is that they’re taking away free handouts this time.

Gold-related Bursa counters’ shining moment
Gold prices hit an all-time high nearing USD2,440 per ounce, driven by US rate cut expectations and geopolitical tensions. Gold businesses stand to benefit from rising gold prices boosted and increased consumer spending, fueled by the rollout of the Employees Provident Fund's Account 3 and a 13% salary increase for public-sector employees. Gold-related stocks on Bursa have been having a good run this year so far. Jewellery retailer Poh Kong jumped by up to 12% yesterday, giving it a market cap of RM529.4 mil. It has climbed by 49.13% year-to-date. If gold itself isn’t shiny enough, here are some gold-related counters on KLSE — Tomei Consolidated Bhd, Niche Capital Emas Holdings Bhd, Bahvest Resources Bhd and Zhulian Corp Bhd #notfinancialadvice. Other metals like silver, palladium, and platinum also climbed, with silver trading near an 11-year high due to tightening supply and increased investor demand.

UKM surveys show a decline in students’ desire to be corrupt
Selangor Menteri Besar Amirudin Shari says that surveys conducted by Universiti Kebangsaan Malaysia (UKM) in 2003 and 2021 revealed a significant drop in university students’ willingness to engage in corruption. In 2003, 30.5% said they would commit corruption if given the power and opportunity, but the number dropped drastically to 2.3% in 2021. While Amirudin attributed this decline to ongoing efforts to combat corruption in Malaysia, it could also be the case that people just know better than to air their own inclinations out loud?

Maybe, in theory, those ongoing efforts did improve the perceived integrity in students. In reality, it’s altogether a different story. A new research released last week by the Associations of Chartered Certified Accountants (ACCA) found that bribery and corruption are part and parcel of doing business - 59% of SMEs and their advisers believed that standing up to bribery and corruption will cost them business trade or opportunities.
View research: Bribery and corruption: The hidden social evil on your doorstep

KKB: PN gathering evidence to challenge PH’s victory #nevergiveup
According to Azmin Ali, Muhyiddin Yassin has instructed lawyers to gather evidence, with assistance from all 16 district polling centre chiefs, in preparation for an election petition to challenge PH’s victory in the recent by-election. PAS’s Gen-Sec Takiyuddin Hassan previously accused PH of abusing its power and misusing government machinery during the campaign, promising to file an election petition should PH win.

4. AROUND THE WORLD 🌎

ICC seeks arrest warrants for top officials on both sides of Gaza war
The chief prosecutor of the International Criminal Court (ICC), Karim Khan, said he is seeking arrest warrants for senior Hamas and Israeli officials for war crimes and crimes against humanity during Hamas’s Oct 7 attack and the ensuing war in Gaza. The individuals involved:

From Israel: PM Benjamin Netanyahu, Defence Minister Yoav Gallant. They are accused of extermination, causing starvation as a method of war, the denial of humanitarian relief supplies, and deliberately targeting civilians. Notably missing out are any of the Israel Defense Forces officials, focusing instead on political decision-making.

From Hamas: Hamas Chief in Gaza Strip Yahya Sinwar, commander of its military wing Mohammad Deif (considered to be the mastermind behind the Oct 7 assault), leader of the group’s political bureau Ismail Haniyeh. They are accused of crimes of extermination, murder, hostage-taking, rape, sexual assault and torture. 

The British ICC prosecutor Khan must request the warrant for the suspects from a pre-trial panel of three judges before the proceedings can move forward. Although there is no imminent likelihood of prosecution, ICC warrants could put Israel officials at risk of arrest in other countries. 

Top Iranian officials killed in helicopter crash
Iran’s President Ebrahim Raisi, alongside the country’s foreign minister Hossein Amiraabdollahian, had died in a helicopter carrying them and other officials crashed in a mountainous and forested area of the country due to poor weather in the early afternoon of  Sunday. Of the 3 helicopters travelling together, Raisi’s helicopter made a “hard landing” due to complications arising from heavy fog. Raisi is said to be a potential successor to Supreme Leader Ayatollah Ali. As per the Iranian constitution, Vice President Mohammed Mokhber will take over and an election must be held within a maximum of a period of 50 days. Apart from the weather, no other immediate factors were identified yet causing the crash. The US and Iran have never got along well, and recently, US-backed Israel and Iran have traded missiles. It’s hard not to put on the tinfoil hat. 

The big $$$ in elections

• India: The Election Commission of India (ECI) said it has seized 88.9 bil rupees (USD1.1) in drugs, cash and other goods like precious metals and liquor as part of its efforts to stamp out illegal vote inducements in the world’s largest democratic election, with almost 970 mil eligible voters. The ECI said that drugs made up 45% of the value of the seizures so far. Drugs for votes on such a large scale - that’s a first we have heard of. India’s general election began on Apr 19 and ends on June 4, with results to be announced on June 4. 

• Donald Trump: The Washington Post reported that former US President Donald Trump allegedly made a USD1 bil fundraising pitch to Big Oil in a closed meeting in exchange for USD110 bil in savings. Trump was said to have assured these oil executives that in return for the campaign financing to back his presidential election against Joe Biden, he would eliminate barriers to drilling, lift the moratorium on gas exports and overturn regulations that aimed to reduce automotive pollution. In total, this alleged offer could save the oil industry USD110 bil. The closed meeting held at Trump’s Mar-a-Lago last month hosted 20+ executives from leading oil companies, including Chevron, Exxon and Occidental Petroleum.

Shorts

1. Manchester City’s historic win
   English football club Manchester City created English football history by winning the fourth straight Premier League title, breaking Arsenal’s slim chance of winning the title (the last Arsenal won was in 2004). Even more impressive, City has now won 6 titles in the past 7 years. As for Manchester United, they finished in eighth place — their lowest since 1990. Sorry, Arsenal fans.

2. Pharma giant’s USD1.5 bil investment in Singapore
   AstraZeneca Plc plans to build a USD1.5 bil (RM7.03 bil) manufacturing facility in Singapore to produce antibody-drug conjugates in its effort to produce the next-generation cancer treatments. The facility is scheduled to open in 2029 and will be carbon-neutral from the start. Its rival, GSK, also opened a similar manufacturing facility in Singapore in 2022. 

3. Enterprise War: Google capitalising on Microsoft cybersecurity vulnerabilities
   Google is combining Microsoft’s very public cybersecurity failures along with deep discounts to capture more of its corporate and government clients to use the search giant’s productivity software instead of Office. Government agencies with more than 500 users who switch to Google Workspace Enterprise Plus for 3 years will get 1 free year plus a “significant discount” for the rest of the contract. Corporate customers will get 18 months free with a 3-year contract. The US Cyber Security Review Board issued a scathing report documenting Microsoft’s failure to stop China-linked hackers from breaking into email accounts of US officials.

5. FOR YOUR EYES 📺

Today, it’s about drinks

1. Watch this during your actual coffee break. Coffee 101: its history, economics and how it affects the body