☕️ RM43.9 mil loss for Khazanah, PNB after FashionValet exit

1. MARKET SUMMARY 📈

Last week, Nvidia overtook Apple once more to be the world’s most valuable company with a market cap north of USD3.5 tril, but it was shortlived. Interesting story about Nvidia - Intel CEO Paul Otellini proposed to the company’s board to acquire Nvidia back in 2005 for a small change, relative to its price today, of USD20 bil which the board rejected.

2. NUMBERS AT A GLANCE 🔢

3.5 bil hours of anime viewership were recorded globally on Netflix in the first half of 2023, marking a 14% increase from the same period in 2022. This impressive figure accounts for nearly 4% of the platform’s overall viewing hours, reflecting the surging demand for anime content driven by streaming platforms. Industry observers note that Southeast Asian studios are particularly benefiting from this trend, as they can produce high-quality products at significantly lower labour costs compared to countries like Japan, the U.S., and South Korea. Indonesia is taking the lead. In 2022, Indonesia's anime industry made IDR90.9 trillion (USD5.99 bil), which is 0.45% of the country's total economic output. This amount is expected to grow to IDR109.6 trillion by 2026, according to PwC.

EUR171,930 (RM811K) is the net financial assets per capita in Singapore, placing it fourth globally in the 2023 Allianz global wealth report. This figure reflects that residents in Singapore, on average, hold more financial assets—such as cash, stocks, and bank deposits—than their peers elsewhere. The report attributes this to Singapore’s capital-funded pension system, the Central Provident Fund (CPF). In the region, Singapore leads significantly, ahead of Taiwan in fifth place at EUR148,750 and Japan in twelfth place at EUR91,940.
Read: Allianz Global Wealth Report 2024.

Nearly 100,000 Malaysian children live with uncorrected vision problems (e.g. astigmatism, short-sightedness), which halves their learning capacity and over their lifetime could cost them up to RM363,753 in loss income, according to World Sight Day 2024 report. The report found that providing glasses to all affected children could add over 37,000 years of schooling and contributing an economic boost of RM3.15 bil annually

3. IN MALAYSIA 🇲🇾

TNB announces historical pay rise for employees
TNB, the nation's largest electric company with 34,000 employees worldwide, is announcing a pay rise for all its staff. In addition, TNB is now the first GLC to increase the minimum wage to RM1,700 - the salary floor set during the recent Budget 2025 announcement. This significant decision came after discussions between TNB's top management and the government, and was announced by PM Anwar Ibrahim during TNB's 75th anniversary event at its headquarters in Bangsar.

The news was met with enthusiastic cheers from the thousands of employees present at the Leo Moggie Convention Centre. Anwar expressed gratitude to TNB's leadership for their commitment to employee welfare, emphasising that a GLC's success should not solely be measured by profit but also by how it supports its workforce. TNB was told to prepare for its role as a major electricity hub for ASEAN countries, especially as Malaysia takes on the ASEAN chairmanship next year. Anwar also urged TNB to ensure that the Asean Power Grid plan comes to fruition. Read more about the Asean Power Grid here.

It’s not mentioned what is the estimated cost. But with a net profit of RM2.77 bil generated last year, should be manageable for TNB to absorb this cost increment.

More info on the 2% dividend tax
PM Anwar Ibrahim announced a 2% tax on dividend income from both listed and privately held companies as part of Budget 2025. This has been reduced from an initial 5% in response to feedback from SMEs. In his speech, Anwar noted that typically only individuals with assets over RM2 mil receive dividends exceeding RM100,000, resulting in a manageable tax burden of around RM700 to RM800.

This new dividend tax will take effect in the 2025 assessment year for individual shareholders earning annual dividends above RM100,000. Kota Melaka MP Khoo Poay Tiong raised concerns about the potential negative impact on SMEs, to which Anwar assured that the tax would be implemented progressively and invited constructive suggestions for its rollout.

Meanwhile, the government has yet to decide an income threshold for the targeted RON95 subsidies. According to the Department of Statistics, the T15 monthly household income figure sits at RM13,000, which may be too low from the government’s point of view.

RM43.9 mil loss for Khazanah and PNB after FashionValet exit
In a written parliamentary response to inquiries from MP Yeo Bee Yin regarding FashionValet investment details and the participation of other government-linked entities, the Finance Ministry revealed that Khazanah Nasional Bhd and PNB exited Fashion Valet Sdn Bhd for just RM3.1 mil, a staggering 93.4% loss from their initial RM47 mil investment made in 2018. Khazanah invested RM27 mil, while PNB contributed RM20 mil. The sale occurred at the end of 2023 to NXBT Partners, an investment firm led by Afzal Abdul Rahim, who is also the CEO of TIME dotCom Bhd.

The ministry noted that the losses from this transaction were minor compared to Khazanah and PNB's overall earnings for the year, describing the sale as a responsible exit that allows a different investor to address FashionValet's financial needs - the company’s been having it rough post-Covid and the recent challenging market conditions.

Shorts

1. Starbucks Malaysia says news of over 100 of its franchises closing down as hoax

   According to a company spokesperson, Starbucks Malaysia has denied claims by an online news outlet that it has closed more than 100 of its franchises. The company instead stated that only a few franchises have been closed temporarily, besides assuring that employees affected have been reassigned to nearby outlets to maintain its service standards. It’s been a rough year for its parent company Berjaya Food, having reported a net loss of RM91.5 mil for the fiscal year ending June 30, compared to a net profit of RM103.4 mil from the same period last year.

2. A whopping RM300 mil spent to recover 1MDB assets so far

   In a court hearing, Afidah Azwa Abdul Aziz, the current director of 1MDB, testified that the total operational expenses amounted to RM313.81 mil, primarily focused on legal costs from August 30 2019 to August 30 2024. Additionally, during this period, 1MDB paid RM24.66 bil for interest and repayment of bonds, with a significant portion allocated to three major bonds maturing in 2022 and 2023. How much would it cost to maintain a house prisoner? Asking for a friend.

3. MACC investigates RM1.8 bil paddy fertiliser cartel

   An investigation has been initiated into a cartel linked to a RM1.8 bil contract for the distribution and supply of paddy fertiliser awarded to an organisation under a ministry. The investigation involves multiple raids, including the organisation's headquarters and nine related firms, focusing on potential corruption and abuse of power among board members. Six officials from the ministry and the organisation have been summoned for questioning as part of the probe.

4. AROUND THE WORLD 🌎

The world condemns Israel’s ban on UN Agency for Palestinian refugees (UNRWA)
The Israeli parliament (Knesset) has recently passed two laws that brand the UN agency for Palestinian refugees (UNRWA) a “terror” group and bans the humanitarian organisation from operating on Israeli “soil”. The laws, once implemented, mean that UNRWA will be prevented from providing life-saving support to Palestinians across Israeli-occupied Gaza and the West Bank.

UNRWA was created by the UN General Assembly in 1949 to support Palestinian refugees expelled from their homes during the creation of Israel. To date, it remains the main organisation providing humanitarian services in Gaza, and supports millions of Palestinian refugees in the occupied West Bank, Lebanon, Jordan and Syria.

Countries around the world have voiced their concerns and condemned the move, including the UN themselves and the World Health Organization. UNRWA chief Philippe Lazzarini said the Knesset move set a “dangerous precedent” as it “opposes the UN Charter and violates the State of Israel’s obligations under international law”. Jordan has labelled the move as a campaign “aimed at assassinating UNRWA politically” and would have “catastrophic consequences”.

Israel’s bff, the US, had withdrawn funding from UNRWA after Israel accused some of the agency’s staff of taking part in Hamas’s Oct 7 attacks on southern Israel.

Business:

1. Gulf’s grocery giant Lulu seeks up to USD1.43bil in IPO

   Middle East’s largest hypermarket chain, Lulu Retail Holdings Plc is planning to raise as much as USD1.43 bil (RM6.25 bil) from its IPO, in what’s set to be the UAE’s biggest listing of the year, eclipsing the USD877 mil share offering from oil services firm NMDC Group. Lulu International Holdings plans to to sell 2.58 billion shares, or a 25% stake in the firm. Final pricing is expected on Nov 6, and the shares are scheduled to begin trading on Nov 14. Lulu reported a profit of USD192 mil last year, and aims to maintain a dividend payout ratio of 75%.

2. JP Morgan sues customers engaging in viral cheque fraud

   Viral videos called ‘infinite money glitch‘ on TikTok, showing customers of the US bank JP Morgan Chase write a large cheque to themselves, deposit it to an ATM and then withdraw the funds before the cheque bounced. The banking giant has then sued the customers who took advantage of the glitch, asking them to return the money with interest, pay related overdraft fees and cover legal expenses as well as other costs suffered by the bank. The amount of money kept by the defendants in the four lawsuits totalled more than USD660,000.

3. Singapore’s Temasek warns that Trump winning would slow global growth

   Ahead of next week’s US presidential elections,Temasek seems to be less optimistic if Donald Trump wins the election. The Singapore state-owned investor firm warns that the Trump administration would lead to slower global growth that would eventually affect US companies. Temasek CIO said a Trump win will probably mean a stronger dollar and higher rates, citing that tariffs are going to create uncertainties that are never good for investments. A slowdown in global growth would also have a direct impact on US-listed firms given that 25% of revenues at S&P 500 companies come from outside the country. Temasek is one of the biggest state-owned investment firms in the world with SGD389 bil (USD298 bil) in net portfolio value.

More sexual crime allegations:

1. ICC prosecutor denies sexual misconduct allegations

   Top senior prosecutor Karim Khan of the International Criminal Court (ICC) has denied allegations of sexual misconduct and has asked ICC’s watchdog, Independent Oversight Mechanism (IOM) for an immediate investigation. This follows recent media reports citing a document outlining accusations against Khan that include unwanted sexual touching and "abuse". IOM appears to have been in contact with the alleged victim, but said that it was not in a position to proceed with an investigation at that stage. Khan expressed that he will fully cooperate with the inquiry but also said earlier that the allegations are efforts to undermine his position in moments when the ICC and him are subject to a wide range of attacks and threats. The ICC has been under intense scrutiny following the prosecutor's request for arrest warrants linked to the conflict in Gaza, but the allegations are understood to pre-date his request for the arrest warrants. Or Israel’s blackops?

2. Sean ‘Diddy’ Combs slapped with another 2 sexual assault lawsuits

   More light is “shining” over Diddy - in 2 lawsuits filed on Monday, the jailed hip-hop mogul is accused of sexually assaulting a 10-year-old boy in a New York City hotel room in 2005, and another one accuses him of sexually assaulting a 17-year-old would-be contestant on the reality TV series Making the Band in 2008. The lawsuits filed are the latest in a wave of lawsuits in which accusers allege they were sexually assaulted by Diddy at parties and meetings over the last two decades. Diddy is now incarcerated in a NYC jail after pleading not guilty to federal sex trafficking charges.

Shorts:

1. Apple releases Apple Intelligence AI features on selected iPhones

   Apple has finally released its Apple Intelligence, but apparently only to a select few who own the iPhone 16 models, the iPhone 15 Pro and Pro Max. They also need to update their iOS to iOS 18.1 by joining a waitlist. Apple said that the AI should be able to activate within hours after their iOS updates. The new features include notification summaries, tools to assist users in writing messages, and a glowing new interface for virtual assistant Siri. More features are expected later this year.

2. A piece of Chopin waltz was discovered after almost 200 years

   The curator of the Morgan Library and Museum in New York was cataloguing new collections when he chanced upon a new piece of music manuscript believed to be composed by Polish composer Frederic Chopin (how to pronounce here). The rare manuscript is dated between 1830 and 1835, making the discovery 200 years after it was written. The curator has worked with Chopin experts to authenticate the score, believing that the handwriting was Chopin’s but not entirely sure that the music was his, “There are atypical aspects of the music, the kind of stormy opening is a little surprising but not entirely out of character”.

5. FOR YOUR EYES 📺

1. Petronas is back at it with tears-inducing advertisements during the festive seasons. To our Indian readers who are celebrating Diwali, Happy Deepavali. For Pokemon fans, here’s Pikachu in saree for the festive season.

2. If you’re a huge fan of Dua Lipa, this is a treat for you. Listen to her as she sings four songs from Radical Optimism.

3. Sometimes, we love Reddit for the little nuggets in the comments.