☕️ The Sabah Report: Winners, Losers, DAP 'bungkus'

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

Javokhir Sindarov of Uzbekistan was recently crowned the winner of the chess World Cup, but what makes it even more remarkable is that he achieved this at age 19, making him the youngest player to hold the title. He took the title when he beat China’s Wei Yi in the final’s second tiebreak game, after they drew in the classical games as well as the first rapid match. Sindarov and Wei, along with Russia’s Andrey Esipenko, who was in third place, have booked their place in the March-April Candidates tournament, which will decide who challenges reigning champion Gukesh Dommaraju for the world title.

In football, or soccer for the Americans, Liverpool Football Club saw nine defeats in 12 matches for the first time since the 1953-1954 season, with three consecutive losses in all competitions by a margin of three goals for the first time since December 1953. They also conceded seven goals in the space of five days while playing on home turf. This makes their current run their worst in 71 years, leaving midfielder Curtis Jones beyond angry to the point of having no words for the situation. All this also leaves manager Arne Slot under increasing pressure as he looks for a solution. In the meantime, hang in there, Liverpool fans - you won’t walk alone.

In Gaza, the popemobile used by the late Pope Francis during a visit to Bethlehem over a decade ago has been transformed into a mobile health clinic to be used to provide care to Palestinian children in Gaza. This initiative was blessed by the late Pope, and the converted Mitsubishi pick-up will be converted into a mobile paediatric clinic capable of treating around 200 children a day. However, it remains unclear when the mobile clinic can enter Gaza.

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3. IN MALAYSIA 🇲🇾

The Sabah Report

With 64.4% of Sabahan voters who showed up and voted in the 2025 Sabah State Election, just shy of the 66.6% voter turnout rate recorded in the 2020 state polls, the message by the voters was clear: Sabahans for Sabah. The incumbent Gagasan Rakyat Sabah (GRS) won the most seats, securing 29 seats, while federal-based parties only secured 8 seats collectively. GRS moved fast after the announcement of the official results by making a pact with UPKO (3 seats), Pakatan Harapan (1 seat) and five independents, to form a coalition government, passing the simple majority threshold of 37 seats. While we can safely say there is no one winner from this election, let’s assess the field and see where the winners pledge their allegiance to:

Warisan (25 seats) - 50/50
Warisan President, Shafie Apdal, whose party won 25 seats during the election, gave a non-answer to the press when asked whether the party will remain as the Opposition in the new state government. While his party is still mulling over whether to join the GRS-led state government or not, Shafie denied the rumours that he held talks with BN in forming a new government. Previously, local media had reported that Shafie met Sabah UMNO chief Bung Moktar Radin to discuss forming a new state government. During the previous administration, both Warisan and BN were on the opposition side of the aisle.

Barisan Nasional (6 seats) - Supports GRS
UMNO Secretary-General, Asyraf Wajdi Dusuki (UMNO is one of the component parties of BN), announced that BN has decided to throw its support for GRS and join the newly formed state government. BN had put up its worst electoral performance in Sabah in decades by winning just six of the 45 seats it contested. Sabah BN chief Bung Moktar Radin retained his Lamag seat, although with a slimmer majority of 153 votes compared with 661 in 2020.

STAR (2 seats) - Support GRS
STAR President, Jeffrey Kitingan, decided that his party would pledge its allegiance to GRS and said that Sabah deserves a government that works together, particularly on matters of constitutional rights and long-term sovereignty. STAR also performed poorly in the state election, only managing to secure 2 seats, compared to winning 6 seats in the 2020 polls.

The clear losers in this election are DAP (part of PH) and Bersatu (part of PN). The voters’ uprising in urban areas was clearly capitalised by Warisan, leaving DAP losing all six seats the party won in 2020 (Tanjung Aru, Likas, Luyang, Inanam, Kepayan and Kapayan). The Sabah DAP ‘bungkus’ continues a trend of the erosion of support from the Chinese and speaks to a continued ‘MCA-isation’ of the DAP, where voters punish the party for not delivering on promises and professed principles. Btw, DAP contested in 8 seats and got wiped out in all. 

One good thing that came out of this election is the decline of the political dynasty in Sabah. The Bahanda family lost all three seats it contested in northern Sabah - Matunggong, Bandau, and Tanjong Kapor. Sabah Governor Musa Aman’s family also failed to retain their seats - Yamani Hafez Musa in Sindumin and Annuar Ayub in Liawan. And one more thing - the corruption scandal had little electoral impact. So, Sabahans just do not give a flying f - - - .

UEM Group to privatise UEM Edgenta
UEM Group (wholly-owned by Khazanah) is mulling over privatising UEM Edgenta Bhd through a selective capital reduction (SCR) and repayment exercise, offering RM1.10 per share, totalling RM282 mil. UEM Group currently owns 69.14% of UEM Edgenta. UEM allegedly decided on this move since cash-rich UEM Edgenta is severely undervalued, and by being private, UEM Group can have more control in deciding Edgenta’s strategy and resource allocation. A Selective Capital Reduction (SCR) is a corporate process where a company cancels specific shares held by certain shareholders, usually minority ones, and pays them back their capital. EPF owns 2.48% and KWAP owns 0.76% in UEM Edgenta.

Mini crash course in value investing: Why UEM thinks UEM Edgenta is undervalued? The latter’s net asset per share as of Sep 30 was RM1.75 and prior to this announcement, its share price stood at 87 sen - half of its net asset value. In short, if the company were to sell all its assets and pay off its liabilities, it would get paid back at RM1.75 per share but the market is only valuing it at 87 sen. Warren Buffetts’ guru, Benjamin Graham, was a practitioner of this method - selecting stocks that trade below their net assets. Buffett described that his style is 85% influenced by Graham and the remaining 15% by Philip Fisher.
Read: The 3 people who shaped Warren Buffett’s investing style

Shorts

1. Johor debuts three-island Maharani Freeport

   The King recently inaugurated the launch of a 3,200-acre Maharani Freeport in Muar as a three-island deep-water free zone, designed to serve regional oil and gas activities along the Strait of Malacca. The private-sector initiative led by Maharani Energy Gateway Sdn Bhd (MEG) will offer tax exemptions on energy and maritime businesses, import duty exemptions on most raw materials and equipment for manufacturing, unrestricted capital and profit repatriation, and allow 100% foreign ownership. MEG is the master developer, landowner, and deep-seaport operator.

2. 700 residents were left isolated due to a landslide

   Nearly 700 residents of the Puncak Arabella Apartments in Tanah Rata in Cameron Highlands were left isolated due to a landslide that disconnected the sole access road to the apartment complex. Regional Environmental Awareness Cameron Highlands president A. Dilip Martin said the incident could have been prevented if tighter oversight had been in place when the project was being approved for development. Dilip added that the goal is not to oppose development, but to ensure it is safe and responsible.

4. AROUND THE WORLD 🌎

Politicians, politicians, and comedian

Trump nullifies executive orders Joe Biden signed by autopen
US President Donald Trump said on Truth Social last week that he would be nullifying all executive order documents signed with autopen by whom he calls “Sleepy Joe Biden” aka ex-president Joe Biden. He believes that 92% of the documents were signed using an autopen. Trump has long maintained that Biden was not in control of the executive office due to his advanced age and declining mental state. The autopen is a mechanical device used for the replicated signing of a human signature. It has a long history in the White House, stretching back to the third US president, Thomas Jefferson, in the early 19th century. Trump himself has used the device, particularly during his first term.

Netanyahu requests for pardon in corruption cases
Israeli PM Netanyahu has submitted a formal pardon request to President Isaac Herzog to pardon him for three corruption cases, which also includes receiving nearly ILS (Israeli Shekel) 700,000 (USD 211,832) in gifts from businessmen. Netanyahu is up against three separate cases of corruption filed in 2019, which include allegations of bribery, fraud, and breach of trust. He denies the charges and has pleaded not guilty. Guess who is pushing Herzog for the pardon? The US. It was reported that President Herzog also received a letter from Trump earlier in November, urging him to consider the pardon. Netanyahu is the only sitting prime minister in Israeli history to stand trial, after being charged with fraud, breach of trust and accepting bribes in three separate cases, accusing him of exchanging favours with wealthy political supporters. Netanyahu is also wanted by the Hague-based International Criminal Court (ICC) for his war crimes and crimes against humanity in Gaza. Such a “stellar” criminal record for a prime minister.

“We’re not attacking another European nation” - Putin
Russian President Vladimir Putin has said on Thursday that Russia will not attack another European nation, dismissing the claims as a “lie” and “complete nonsense”. He said that during a summit of the Collective Security Treaty Organisation (CSTO), a Russia-led military alliance that includes some former Soviet republics. He also said that he is ready to put it down in writing. Nevertheless, the statement has been met with scepticism from European leaders, who point to the fact that he repeatedly denied Russia would invade Ukraine before doing so in February 2022. Hard to choose who to believe these days.

And the comedian? Trump.

Rallies around the world

European cities witness tens of thousands rally for justice in Gaza
Cities across Europe continue to demonstrate solidarity with Gaza, denouncing Israel’s genocidal war and demanding tougher global action against its continued and deadly violations of a US-brokered ceasefire. In conjunction with UN International Day of Solidarity with the Palestinian People, the demonstrations come as the death toll from Israel’s war on Gaza passes 70,000. In the French capital, Paris, an estimated 50,000 marched along the city’s major streets. Protests were also held in London, Geneva, Rome and Lisbon. UN’s special rapporteur on the occupied Palestinian territory, Francesca Albanese, and climate activist Greta Thunberg joined the demonstrations in Italy. Since the ceasefire deal, at least 500 Israeli violations have been recorded, resulting in at least 347 Palestinians being killed and 889 being injured.

Manila protestors demand Marcos Jr resignation
An estimated number of more than 20,000 people have taken to the streets of Manila, Philippines, to demand the resignation of President Ferdinand Marcos Jr over a corruption scandal linked to government spending on flood-control infrastructure. The rally, organised by the Kilusang Bayan Kontra-Kurakot or the People’s Movement Against Corruption (KBKK) began at the Luneta National Park in Manila with protesters marching on to the presidential palace. It is the lastest display of public anger over the “Trillion-Peso” scandal, in which powerful politicians, including Marcos’s allies, are accused of pocketing billions of pesos in bribes for contracts on flood-control infrastructure that ended up being defective or were never built at all. Some of the protesters carried effigies depicting Marcos and Vice President Sara Duterte as crocodiles and dubbed them “corrupt-codile”. Fancy wordplay.

Shorts

1. Airbus recalls A320 model for software reversion

   Plane maker Airbus has issued a sweeping recall on its Airbus A320 model, prompting Japan’s biggest airline ANA to cancel up to 65 flights on Saturday. The carrier, along with affiliates such as Peach Aviation, is the biggest operator in Japan of single-aisle Airbus aircraft, including the A320. Globally, there are about 11,300 of the single-aisle jets in service, including 6,440 of the core A320. The fix mainly involves reverting to earlier software, and although relatively simple, it must be completed before the planes can fly again. The AirAsia Aviation Group fleet, which was also impacted, completed the software rollback swiftly after the issuance.

2. Billionaires, media giants to battle for stake in The Economist

   At least a dozen parties, including ultra-wealthy individuals and media companies, have shown preliminary interest in the sale of 27% stake in The Economist publication. Founded in 1843, the publication has nearly 1,000 shareholders, with Exor, a holding vehicle for Italy’s Agnelli family, owning a 43.4% stake and the Rothschild families owning 27% - the stake that is up for grabs. The sale, which includes about 20% in voting shares, could value the media company around GBP800 mil (about RM4.4 bil). The company has a complex governance structure to ensure the editorial process at the 182-year-old publication remains independent.

3. In Japan, bear crisis leads to new business opportunity

   Due to the rising cases of bear attacks in Japan, Tokio Marine & Nichido Fire Insurance Co will be offering a new, one-of-a-kind product for tourist businesses to cover losses due to such incidents, with premiums expected to be around JPY100,000 to JPY500,000 (USD640 to USD3.2k) per year, depending on the scale and location of the business. The insurance will be covering economic damages caused by bear appearances and targeting operators of lodging facilities, golf courses, campgrounds, and other leisure businesses. Insured businesses must provide proof of a bear intrusion, such as surveillance camera footage, and publicly announce the facility’s closure in order to make their claims.

5. FOR YOUR EYES 📺

1. National Geographic captured a rare moment of a humpback whale birth.

2. Stranger Things Season 5 promotion at Sydney Harbour Bridge, with a monster coming out of a portal in the sky. Here’s how it’s done.

3. Burst out laughing the first one below. Worth reading the rest of the carousel. Have a good start to the week. Final month of the year to do whatever that’s left to be done.