☕️ MACC finds no wrongdoing in YTL Power’s 1BestariNet project

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

RM70 mil has been contributed by Malaysia to various organisations, including non-governmental organisations, to assist Palestinians in Gaza amid the ongoing humanitarian crisis. According to Foreign Minister Datuk Seri Mohamad Hasan, this contribution was channelled through the ministry’s Committee of the Palestinian Trust Fund (AAKRP). Since October 2023, the trust fund has raised over RM99 mil, with nearly half allocated to key platforms such as the United Nations, flash appeals, and Ops Ihsan. The remaining funds will soon be used for rebuilding destroyed wells and providing essential medical assistance. How much did Aman Palestin contribute? Asking for a friend.

2% is the projected decline in spending on personal luxury goods in 2024, according to Bain. Sales of fashion and leather items at LVMH, the world’s largest luxury conglomerate, have dropped, and Kering, owner of Gucci, has issued several profit warnings. The combined market cap of the ten most valuable Western luxury firms are now approaching USD1 tril, compared to USD300 bil in 2013. However, over the past year, their value has fallen by more than 10%, and growth has reversed. Are people finally tired of the frequent price increases? HSBC reckons luxury products are 54% more expensive today than in 2019.

RM1.16 bil was collected from the Digital Services Tax (DST) from January 1 to September 30, 2024, while the Low-Value Goods Tax (LVGT) brought in RM300.7 million during the same period, according to the Ministry of Finance (MOF). The capital gains tax (CGT), which takes effect on March 1, 2024, has not yet yielded collections as the figures will only be available from July 2025, after companies file their Income Tax Return Forms via e-filing for the current tax year. Meanwhile, the implementation of high-value goods tax (HVGT) is still in the air as the government focuses on other fiscal reforms.

3. IN MALAYSIA 🇲🇾

RM1.8 mil in seizures from Halal fraud cases
The Domestic Trade and Cost of Living Ministry has brought in RM1.813 mil in seizures from 56 cases of fraudulent halal logos and certificates. With over 800,000 inspection operations and fines amounting to more than RM140,000, the enforcement was carried out daily by more than 2,000 officers.

In response to a supplementary question from Senator Azhar Ahmad inquiring about the government’s current efforts in combating halal logo fraud and certification, minister Fuziah Salleh stated that the ministry is actively collaborating with JAKIM and various state Islamic religious departments. Non-Muslim eateries should also be wary of displaying Quranic verses, symbols of mosques or the Kaaba, or Islamic names to allude to blessings, as they violate halal definition regulations.

MACC finds no wrongdoing in YTL Power’s 1BestariNet project
The MACC has concluded its investigation and will not be pressing charges against YTL Power International Bhd, a subsidiary 60% owned by YTL Communications Sdn Bhd, over connections to the RM4 bil 1BestariNet project. The investigation lasted 4 months after the MACC started probing payment claims related to the service tender and conducted raids on the YTL Communications office and several government offices.

Previously awarded in 2011 by the Ministry of Education after an open tender involving 19 companies, the project entailed a 15-year service contract aimed at providing internet connectivity to 10,000 schools nationwide — it was certified by the ministry as being successfully completed in June 2019, just after the first two phases.

YTL Communications claimed that the MoE breached contractual obligations when it appointed various internet service providers for the remaining second half of 2019, namely Telekom Malaysia, Celcom Axiata, and Maxis.

Private companies may be eligible for financial audit exemption starting next year
A new criterion is being introduced for private companies to exempt themselves from financial statement audits, coming into effect January 1 next year. As announced by the Companies Commission of Malaysia (SSM) on Wednesday, the current criteria are still in play until December 3 and will continue to apply for periods before New Year’s. Companies that stand to benefit from an audit exemption must meet any two of the following criteria in the current and two preceding financial years:

• Annual revenue not exceeding RM3 mil

• Total assets not exceeding RM3 mil

• 30 or less employees

Companies that are dormant since establishment or dormant during the current period and the previous financial year are also eligible for an audit exemption, according to SSM. The commission hopes that this privilege afforded to private companies fitting the criteria will benefit small and medium enterprises by reducing compliance costs, besides helping ensure that corporate governance practices remain efficient and transparent at the highest level.

Malaysia Airports experienced a 16.1% year-on-year increase in passenger traffic
Malaysia Airports Holdings Bhd (MAHB) experienced good growth in its Malaysian and Turkish airport networks in November, recording 11.2 mil passengers compared to 9.6 mil passengers in November last year. 

The biggest winner seems to be the international sector, as it experienced a staggering 21.8% YoY increase to 6 mil passengers, thanks to new airline operations like Cambodia Airways and Flydubai, new routes, and an increase in flight frequencies. Domestically, though, things are on the uptick — it hasn’t quite reached pre-COVID levels as the number of passengers is recorded at 85.4%, according to MAHB.

MAHB’s financials is looking healthy as it recorded an almost 146.3% increase in net profit for the first half of the 2024 financial year. Good position to be in considering the government is against direct funding for future airport expansion projects.

Shorts

1. Tok Mat to be issued fine for smoking at restaurant

   After pictures of Foreign Minister Mohamad Hasan smoking at an eatery in his Rantau constituency went online, Health Minister Dzulkefly Ahmad stated that authorised officers are scheduled to meet Tok Mat to issue fines for the offence. Tok Mat appears to have admitted wrongdoing, as he personally told Dzulkefly to have his ministry dish out punishment, and that he will pay accordingly. No one is above the law, as echoed by Dzulkefly. We are all equal, but some are more equal than others.

2. Malaysian Guantanamo Bay detainees back home

   Two Malaysians previously detained in the US’ Cuba-based detention camp have returned to Malaysia, according to a statement made by the Home Ministry. The government has constructed a special reintegration program for the two individuals, which includes support services, welfare, and medical screenings. In their plea statement, both Malaysians agreed to testify against the former leader of the Jemaah Islamiyah movement, Hambali, who faces a murder charge, terrorism, and conspiracy. They were both detained for the 2002 Bali bombing that took 212 lives.

4. AROUND THE WORLD 🌎

Russian General Meets Explosive End

• Ukraine Claims Responsibility

  Lieutenant General Igor Kirillov, chief of Russia’s Nuclear, Biological and Chemical Protection Troops, was killed outside an apartment building along with his assistant by a bomb hidden in an electric scooter. Ukraine’s spy agency has claimed responsibility for the “liquidation”, targeting the man for his alleged role in directing troops to use riot control chemicals and the toxic choking agent chloropicrin against Ukrainian troops. The incident was caught on video - watch here.

• Suspect Detained

  In the wake of the bomb blast, Russia’s security service has detained a 29-year-old man from Uzbekistan on the suspicion that he committed a “terrorist act”. The agency also revealed that the suspect explained he was “recruited by the Ukrainian special services”, with the promise of a USD100,000 reward and permission to move to the EU if he killed Kirillov.

• Normality Shattered

  The explosion has brought home the reality of Russia’s war with Ukraine to the citizens of Moscow, but it is believed the reaction will be to further intensify the war. Russian authorities and media are already looking to retaliation as an answer, in line with President Vladimir Putin’s promise that Russia “will always respond” to security threats.

• Escalation Continues
  The assassination comes at a time when Russia has already intensified its attacks on a Ukrainian enclave in the Kursk region and the eastern region of Donetsk in Ukraine, employing North Korean troops in intensive assaults that have taken their toll on the battle-weary and outnumbered Ukrainian troops. This escalation in fighting also comes ahead of President-elect Trump’s return to the White House, as Russia and Ukraine both jockey to secure a better negotiating position for when a deal is discussed. NATO has also taken over the coordination of Western military aid to Ukraine from the US, in a move to safeguard the support mechanism against NATO sceptic Trump.

Ceasefire Side-effects

1. Civil War: Palestinian Authority Atrocities

   Security forces under the Palestinian Authority in the West Bank have been battling Hamas and Islamist fighters in Jenin and residents have likened the behaviour of those forces to the traditional behaviour of Israeli forces when they were operating there. The UN humanitarian agency OCHA has already called for an investigation into “violations of human rights law”. A political analyst suggested that the timing of the operation by the Palestinian Authority to take Jenin from Islamist fighters is to “prove its worth” to have a leadership role in Gaza following the potential ceasefire.

2. Suing the State Department

   Meanwhile, Palestinian families are suing the US State Department over Washington’s support for Israel’s military in the war in Gaza, which led to a humanitarian crisis and tens of thousands of deaths. The lawsuit alleges that the department, under Secretary of State Antony Blinken, deliberately bypassed the Leahy Laws to continue funding and supporting the Israeli military.

Merging Autos, AI Fundraisers, and Crypto Concerns

• Honda, Nissan deepen ties with merger talks and JV

  The automakers are looking to better cooperate in the face of competition from bigger EV makers such as Tesla and rivals in China, as well as the stalling demand in Europe and the US. A source was reported saying the two firms are actually discussing the establishment of a joint venture umbrella holding company to better share resources and technology, though it remains unclear whether this will lead to a full merger, as the official word from both firms is that there is no merger. Should the two auto giants combine, they would become the third-largest auto group by sales after Toyota and Volkswagen.

• AI startup Databricks secures USD10 bil fundraiser, pushing valuation to USD62 bil

  The amount was raised in one of the largest venture capital funding rounds in history, with the firm now looking at a state of positive free cash flow in the quarter ending Jan 31, which is also when it expects to cross the USD3 bil revenue run rate, on track to hit its goal of generating USD3.8 bil in revenue in the following fiscal year. The proceeds from the fundraiser will go towards growing the firm and allowing early employees to cash out. However, the funding round has also led to tech investors asking about the firm’s IPO, with Databricks CEO Ali Ghodsi saying he will wait “until at least 2025” to go public. Ghodsi added that 2024, being an election year, is volatile, with people worried about interest rates and inflation, among other things. Visit its site here.

• Luxury brands consider accepting Bitcoin as payment option

  High-end fashion brands are now looking towards cryptocurrencies as a means of payment, in a bid to tap into the new wealth created by the soaring values of Bitcoin and the like, to build loyalty with crypto investors, and to tap a younger audience. While there have already been several brands that have experimented with this, more brands are taking up this alternate means of payment, with one example being a collaboration between French luxury department store Printemps, crypto exchange Binance, and French fintech firm Lyzi to facilitate the acceptance of cryptocurrencies at its stores.

Shorts

1. DRC mystery disease identified as severe malaria

   The Health Ministry of the Democratic Republic of Congo has identified a previously unknown disease that has killed over 100 people as a “severe form of malaria” that took the form of a respiratory illness. The provincial health minister said that anti-malaria medication provided by the World Health Organisation was already being distributed in the main hospital and health centres in the Panzi health zone, where the outbreak of the disease happened.

2. Pope assassination foiled

   It was revealed that British intelligence had a role to play in stopping the plot to assassinate the religious leader during a trip to Iraq in 2021. A tip-off led to the successful interception and elimination of two suicide bombers, according to an excerpt from Pope Francis’ autobiography.

5. FOR YOUR EYES 📺

1. The world’s fuel isn’t oil — it’s debt, USD102.1 trillion of it.

2. Ronnie Chieng just released his specials — here’s a sneak peek, NFSW!

3. MRT x Netflix — Ampang Park MRT station underwent a major makeover for the upcoming Squid Game Season 2.