☕️ All about the RON95 subsidy rationalisation

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

To fulfil its pledge, the Bank of America has raised the minimum hourly wage of its full-time and part-time staff across the US to USD25 (RM105) per hour effective October this year, pushing the minimum annualised salary for full-time employees past USD50,000 (RM210,350). The second-largest bank in the US made the move at a challenging time for the US labour market, with rising unemployment posing risks to consumer spending as companies hold off hiring due to economic uncertainty. A survey by the bank also found that lower-income households were the most affected by the weak labour market, with their after-tax wages and salaries rising at the slowest pace in August 2025 since 2016.

South Korea’s companies are offering their employees money to have babies in an attempt to address the country’s low fertility rate of 0.75 births per woman, the lowest in the world. Examples include construction giant Booyoung Co., which offers KRW100 million (USD72,000 or RM301,474) per child born to an employee, and game maker Krafton Inc., which offers USD43,000 (RM180,901) at birth and additional instalments of USD29,000 (RM122,003) until the child turns 8. South Korea is not the only country worried about its demographics, as birth rates are falling in many of its Asian neighbours. This includes Malaysia, which recorded a historic low of 1.39 births per woman in the first quarter of 2025. Now, which Malaysian company wants to step up their game?

Malaysia’s jobless rate remained at its decade-low of 3% in July, with an expanding labour force pushing up the numbers of employed persons. Economists generally consider a 3% unemployment rate as the economy having full employment. Malaysia’s labour market is also expected to remain stable with “positive prospects in the coming months”, according to the Department of Statistics Malaysia. July saw the labour force increase 0.2% month-on-month to 17.5 mil persons, with the proportion of employed persons remaining steady at 70.8%.

3. IN MALAYSIA 🇲🇾

All about the RON95 subsidy rationalisation 
At long last, the Malaysian government shared the specifics of the long-awaited targeted RON95 subsidy, scheduled to take place on Tuesday, Sep 30. In his speech, PM Anwar Ibrahim announced that all Malaysians with a valid driver's licence can buy RON95 at RM1.99 per litre with a ceiling of 300 litres per month would be imposed on all Malaysian drivers. Good news for e-hailing drivers - they are exempted. Here’s more info:

At RM1.99/l, new RON95 subsidy among world's cheapest
According to Finance Minister II (and now also Economy Minister) Amir Hamzah, the newly announced targeted RON95 petrol subsidy programme, (aka the Budi95 programme) will allow Malaysians to enjoy the subsidised price of RM1.99 per litre, which is among the cheapest petrol prices in the world. This subsidy initiative is expected to help the government save between RM2.5 bil and RM4 bil annually, with these savings intended to be channelled back to the rakyat through aid programmes such as the Sumbangan Tunai Rahmah and the Sumbangan Asas Rahmah. The minister also explained that the 300 litres ceiling was determined to be sufficient for a vehicle’s usage each month, based on research conducted by the ministry.

Free MyKad chip replacement available from September 23 to October 7
As the MyKad will be essential to enjoy the Budi95 petrol subsidy programme, Home Minister Saifuddin Nasution announced that the ministry will offer free replacements of damaged cards, having allocated over RM700,000 for this purpose. As a reminder, the Mykad boasts several useful functions - storing medical records, acting as a backup driving licence and functioning as an alternative Touch n Go card, to name a few.

Meanwhile, former Economy Minister Rafizi has some (legitimate) concerns
Despite agreeing that subsidy rationalisation is necessary for fiscal sustainability, former Economy Minister Rafizi Ramli cautioned that the government’s new Budi95 programme with a cap of 300 litres could open the door to fuel reselling and other loopholes by parties such as e-hailing drivers. Arguing that the government’s policy is more of a subsidy cap than a full retargeting exercise, Rafizi added the new mechanism’s real test will be seen over the next 6 to 12 months, when its effectiveness in reducing leakages and ensuring fairer distribution can be measured.

Lim Guan Eng, Latheefa and others slam suggestion to charge statutory rape victims
No stranger to appearing in the news, Kelantan police chief Yusoff Mamat made headlines when DAP national adviser Lim Guan Eng urged him to withdraw his suggestion that girls involved in statutory rape cases should be charged alongside the adult male perpetrator. Lim slammed Yusoff’s proposal as going against the latter’s duty to protect women and girls, who are victims of grooming.
Definition of rape and statutory rape: Rape is sexual intercourse with a woman without her consent or against her will. Statutory rape is sex with a girl below 16 years of age, regardless of whether she consents to it or not.

Meanwhile, one-time MACC chief and Lawyers for Liberty co-founder Latheefa Koya deemed the police’s suggestion as “beyond ridiculous”, while also calling on the Home Ministry, as well as the Women, Family, and Community Development Ministry, to address the contentious proposal and state their stance on the matter.

Earlier, the Kelantan police chief had argued that investigations showed nearly 90% of statutory rape cases were consensual. For the purpose of ensuring “fairer action”, the Kelantan police chief said he would discuss the proposal with the Attorney-General's Chambers, Kelantan Islamic Religious Affairs Department, and relevant parties first. Regardless, the police chief’s controversial statement has drawn opposition from lawmakers such as the Law and Institutional Reform Minister Azalina Othman and Tebrau MP Jimmy Puah.

Also, perhaps the Kelantan police chief should not ignore previous findings by the police which found a strong connection between the rise in statutory rape cases and social media grooming?

Shorts

1. Prosecution to appeal against Syed Saddiq's graft case acquittal

   Nearly 3 months following Muar MP Syed Saddiq’s graft case acquittal, Malaysia’s Prosecution team made good on its word and has appealed on 28 grounds against the Court of Appeal’s earlier decision, claiming the CoA particularly erred in its evaluation and rejection of star witness and former Armada assistant treasurer Rafiq Hakim Razali's testimony. The team stated the CoA’s rejection was made on the grounds that his statement to the authorities may have been given under duress. For context, Syed Saddiq spent the last 4 years battling court charges of abetting a criminal breach of trust for the sum of RM1 mil and misappropriating RM120,000 of Bersatu’s youth wing funds for GE14. Next stop - Federal Court to settle it for once and for all.

2. JPJ seizes illegal airport driver's vehicle, working to track down driver’s group

   A foreign tourist was reportedly overcharged by an illegal driver at Kuala Lumpur International Airport Terminal 2. The driver initially quoted RM60 for a ride but allegedly later forced the tourist to pay RM836 (almost 14x the original fare) before allowing them to exit the vehicle. Acting quickly, the Road Transport Department (JPJ) successfully apprehended the driver and seized her vehicle. Praising the JPJ, Transport Minister Anthony Loke emphasised the ministry’s zero-tolerance stance against unscrupulous drivers, as it tarnishes the country’s image. Selangor JPJ director Azrin Borhan stated the driver operated in a group, with the department working on tracking down the remaining members of her group.

3. Singapore may hang third Malaysian this year - arrested for drug smuggling

   39-year-old K Datchinamurthy, who was caught smuggling close to 45g of diamorphine (aka heroin) into Singapore back in 2011 may well become the 3rd Malaysian (and the 11th person overall) to be hanged in the island republic this year. Despite his death sentence in 2015, Datchinamurthy was then granted a stay of execution by the Singapore High Court in 2022 due to his legal suit against the Singapore government. Datchinamurthy is among the 4 Malaysians on death row in Singapore whom Suhakam had highlighted earlier in September as part of its appeal for the Malaysian government to intervene in their executions. For context, Singapore has constantly emphasised its zero-tolerance approach to drug trafficking, with Singapore’s Law Minister even claiming growing support for the death penalty.

4. AROUND THE WORLD 🌎

Thousands evacuate in face of Super Typhoon Ragasa
Philippine President Ferdinand Marcos Jr has ordered the Philippines' disaster response agency to go on full alert and mobilise all government agencies as Ragasa made landfall in the country, packing winds of 215 km per hour. The government has ordered the suspension of work and classes across Manila and large parts of Luzon as high-level storm alerts warn of power outages, landslides, floods, and dangerous seas. Flights and ferry services have also been cancelled. Thousands have been evacuated from high-risk areas.

Taiwan has also issued land and sea warnings, cancelled domestic flights, and evacuated more than 900 people from mountainous areas, even though the island will not be directly hit by Ragasa. China has activated flood control measures in several southern provinces, while Vietnamese authorities are monitoring the storm and preparing for a possible landfall later this week. Despite earlier reports that Hong Kong's airport would be closed, the facility will remain open, although operations will be scaled down. Hong Kong residents have also started stockpiling daily necessities.

Transport issues

EU airports disrupted after ransomware attack
Hackers targeting check-in and boarding systems provider Collins Aerospace caused operations to be disrupted at three major European airports, namely Brussels Airport, Berlin Airport, and Europe’s busiest airport, London’s Heathrow. Passengers faced long queues, cancellations, and delays over the weekend. While the disruption appears to have eased significantly, cancellations and delays continue. This also marks the latest in a string of cyberattacks in recent months, with another victim being Jaguar Land Rover, which had to pause production as a result. Authorities believe that, while there have been more ransomware attempts targeting higher-profile victims for attention, such attacks have not become more frequent. Truly large-scale, disruptive attacks remain the exception rather than the rule, as visibility does not necessarily equal frequency.

Berkshire Hathaway exits BYD as automaker makes gains in Spain
The firm founded by Warren Buffett has fully exited Chinese automaker BYD, selling its 10% stake it paid USD230 mil for in 2008, ending a 17-year investment that grew over 20 times in that period. BYD’s general manager of branding and public relations described the stake sale as a “normal” stock investment trade. This comes as BYD is reported to be making headway in Spain, seeing rapid growth by targeting cost-conscious buyers, spurred on by the fact that Spain does not have a national automaker. BYD also saw quarterly profits fall for the first time in three and a half years as its expansion hit a speed bump amid a government campaign against price wars. Net profit was down 29.9% year-on-year at USD894.7 mil for its second quarter of 2025.

IPO business

Digital bank NOBA's USD3.7 bil IPO "multiple times covered"
The Swedish financial services group, the second to go public this year after buy now, pay later lender Klarna, saw its USD3.7 bil initial public offering “multiple times covered”, according to bookrunners. This is seen as an indicator that investors are warming up to European listings after a barren IPO period. NOBA is controlled by private equity firm Nordic Capital’s funds and Finnish insurer Sampo Oyj. It operates across the Nordic region under a variety of brands and offers credit cards in Germany, along with deposit products in Spain, the Netherlands, Ireland, and Germany.

"Baby Shark" creator seeks USD55 mil from Seoul IPO
The company plans to issue two mil new shares at up to KRW38,000 (RM114.78) each, which would give the company a market value of about KRW545 bil (RM1.6 bil). The company, Pinkfong Co, is famous for the “Baby Shark” song, which has been watched more than 16 bil times. However, the firm has struggled to replicate that success, with songs like “Penguin Dance” getting about 125 mil views.

Here’s the “Penguin Dance” song:

Shorts

1. Indonesia urged to stop USD10 bil free meals programme after mass food poisoning
   Health-focused non-governmental organisations urged the Indonesian government to put a temporary halt to President Prabowo Subianto’s flagship free school meals programme after 500 children became sick in the biggest mass food poisoning outbreak so far. The USD10 bil programme has reached more than 20 mil recipients since it launched in January, but it has been plagued by incidents of food poisoning, which have affected 6,452 children nationwide. We are more interested in knowing the companies involved. 

2. Climate change new victims - sports

   World Athletics president Sebastian Coe said that 70% of athletes reported that climate change and the heat is impacting their training. With governments not really “stepping up to the plate”, Coe believes it is inevitable for the international sports calendar to be re-engineered, considering endurance-based athletes competing at times of the year noted for high temperatures will not only impact their performance, but their health as well.

3. World summit to meet on two-state solution as more countries recognise Palestinian state
   Several world leaders are expected to meet at a summit convened by France and Saudi Arabia to formally recognise a Palestinian state as a show of support for the two-state solution. Israel cautioned that such actions would undermine the prospects of a peaceful ending to the war in Gaza. While the summit would boost the morale of Palestinians, it is not expected to deliver change on the ground. Israel and the US will be boycotting the summit, with Israel’s UN Ambassador Danny Danon calling the event a “circus”.

5. FOR YOUR EYES 📺

Buildings, expensive buildings

1. At RM18 mil, not sure if this is a house or a clubhouse. Kinda healthy to stay here - easily hit 10k steps a day.

peili.housetours

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2. RM28 mil bungalow in Damansara Heights.

3. Unusual Singapore homes - from an Egyptian-themed house to a bungalow on the roof of a 50-storey building.