☕️ IGP: Cops authorised to inspect a person’s mobile phone on reasonable suspicon

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

6,100 outlets of Chinese F&B brands were operating in Southeast Asia as of December 31, 2024. The report highlights that over 60 Chinese F&B brands have recently expanded into the region, with brands like Mixue, Wedrink, and Chagee leading the way. Singapore and Malaysia have a high concentration of these brands, while Indonesia and Vietnam account for two-thirds of the total outlets, primarily targeting the mass market.

23 years after starting, roadworks on the A465 Heads of the Valleys road in south Wales are finally completed. The 28-mile (45km), GBP2 bil (RM10.97 bil) upgrade to near motorway standards was initiated during Tony Blair’s first term as prime minister to boost prosperity in one of the UK’s most deprived areas. However, some local residents have referred to it as the “road from hell.” This reminds us of the West Coast Expressway (WCE), which was revived in 2002 — it has yet to be completed and we have seen SIX prime ministers since (one of them took office twice).

The number of cosmetic procedures performed globally surged from 25 mil in 2019 to 35 mil in 2023, according to the International Society of Aesthetic Plastic Surgery (ISAPS). The “medical aesthetics” industry, already valued at USD82 bil (RM369.5 bil), is expected to nearly double in size to USD143 bil over the next five years, according to projections by Grand View Research. A 2021 survey by McKinsey of 10,000 consumers in major aesthetics markets found that 15-20% of respondents planned to use anti-wrinkle injections or dermal fillers within the next five years, double the current user rate at the time. If any of you wonder why are there so many aesthetic clinics booming in Malaysia, you’ve got your answer.

3. IN MALAYSIA 🇲🇾

IGP: Cops authorised to inspect a person’s mobile phone on reasonable suspicon
IGP Tan Sri Razarudin Husain explained that police are authorised to inspect a person’s mobile phone if there is suspicion or information suggesting they have committed a crime, to ensure there is no obscene or offensive content present. However, the checks can only be conducted by an officer with a rank of Inspector or higher. Sections under the Criminal Procedure Code and the Communications and Multimedia Act 1998 have provisions for such inspections, while a section of the Police Act empowers police officers to require a person to display information upon request.

Local NGO Alliance For A Safe Community (Ikatan) has called for the review of certain laws to provide clear and specific guidelines for police access to private mobile phone data. According to Ikatan chairman Tan Sri Lee Lam Thye, there needs to be a clear definition of what offences warrant such access, the specific procedures, and the level of judicial oversight required. He also suggested looking to the laws some European countries already have for such situations to study those methods and adopt what works for Malaysia. Lee also recognised that balancing law enforcement and individual privacy is a complex challenge, as there is always the potential for abuse of power. Sadly, not all officers are like this guy, who rejected a RM50,000 bribe.

12 arrested in personal loan syndicate by MACC
The arrests were made after preliminary investigations revealed some bank officers had accepted bribes from financial consultancy firm officials in exchange for processing and approving personal loans for clients with outstanding old debts. The operation also saw 70 accounts worth over RM16.2 mil frozen, while nine vehicles of various brands were seized. Also seized was cash, 17 luxury watches valued at over RM11.1 mil, five designer handbags valued at over RM430,000, five sets of jewellery with over RM50,000, two laptops, and two tablets. Wonder if the FBI was involved in this one, considering the timing of the courtesy visit.

Local and Foreign Policies

• Recognising cryptocurrency in Malaysia, maybe?

  PM Datuk Seri Anwar Ibrahim shared that the government is in discussions with the Abu Dhabi government and global cryptocurrency giant Binance about formulating a policy on digital finance, one that could see cryptocurrency and blockchain tech recognised in Malaysia. He will also be consulting the cabinet on the formulation of the policy and shared that he is mulling expediting said policy. Since SC is already regulating crypto in the country, isn’t that considered recognition?

• Malaysia, UAE renew collaboration in several areas

  PM Anwar and UAE PM Sheikh Mohammed Rashid Al Maktoum agreed to renew collaboration in several areas, including energy, food security, technology, and data centres during Anwar’s working visit to the UAE. Anwar is there to attend several functions, including taking part in a dialogue on ASEAN’s future. A highlight will be the signing of the Malaysia-UAE Comprehensive Economic Partnership Agreement.

• Malaysia braces for US AI chip plans

  Science, Technology and Innovation Minister Chang Li Kang warned that Malaysia has to be prepared in case the rumoured AI chip export restrictions by the US come to pass, with several ministries already discussing precautionary measures in response to the potential move. However, Chang also noted that there are still no official details on the matter and that everything remains hearsay until an official announcement, which is reported to be “soon”.

Business

• New digital bank coming up: YTL Power-Sea digital bank gets operational okay

  Ryt Bank, co-owned by YTL Power International Bhd and Singapore-based Sea Ltd, received approval from the Ministry of Finance to commence operations, effective Dec 20, 2024. The bank is one of five successful applicants of the digital bank licenses, and will be launched in phases. Ryt Bank boasts a personalised AI-powered private banker, which is designed to simplify banking processes, among other things.

• Oriental Kopi's ACE IPO sees almost 60 times oversubscription

  Oriental Kopi IPO saw its shares oversubscribed by 59.96 times, according to a statement issued. A further breakdown was also provided, showing that the Bumiputera portion saw an oversubscription rate of 22.20 times, while the public portion was oversubscribed 97.72 times. This has been confirmed by placement agent Alliance Islamic Bank Bhd. Guess people just really like the coffee. View the basis of allotment here.

• Energy firm Yinson secures RM4.5 bil in international funding

  Yinson Production, a unit of Yinson Holdings Bhd, secured USD1 bil (RM45.1 bil) in funding from a consortium led by the Abu Dhabi Investment Authority, with the agreement also including the option for the consortium to pump in an additional USD500 mil (RM2.25 bil) within the next 24 months.

Shorts

1. Repairing roads after floods cost almost RM50 mil across peninsula

   Works Minister Datuk Seri Alexander Nanta Linggi shared that the amount was just for nine reported locations, with two in Kelantan, five in Perak, and two in Terengganu. The road repair works amounting to RM45.37 mil to date include pavement works, bridges, as well as street and traffic lights. Sabah and Sarawak’s road repair works due to floods carried a price tag of RM56.2 mil. Almost RM40 mil was also spent on repairing slopes damaged during the northeast monsoon.

2. Arul Kanda denies knowledge of jewellery purchases

   The former CEO of 1MDB said he had no personal knowledge that company funds were used to buy former PM Najib’s wife Rosmah Mansor 27 assorted gold necklaces and bracelets worth USD1.3 mil (RM5.86 mil). Arul Kanda had previously told the court that the money was used to buy a luxury yacht and real estate.

4. AROUND THE WORLD 🌎

Israel-Gaza ceasefire draft seems legit
After endless negotiations that continued way past midnight in Doha on Tuesday, it was reported that Hamas has accepted a draft agreement for a ceasefire in the Gaza Strip. Officials have informed that a lot of progress has been made, calling it a “closest point” yet to sealing a deal.

Some 100 Israelis are still captive inside Gaza, and the military believes at least a third of them are dead. Israeli attacks have left large areas of the territory to rubble and displaced around 90% of Gaza’s population of 2.3 mil, with hundreds of thousands packed into tent camps along the coast where hunger is widespread.

The ceasefire draft agreement in a form of 3-phase plan would begin with the gradual release of 33 hostages over a six-week period. During the period, Israeli forces would withdraw from population centers, Palestinians would be allowed to start returning to their homes in northern Gaza and humanitarian aid with some 600 trucks would be allowed to enter each day.

Second phase, Hamas would release the remaining living captives in exchange for more prisoners and the “complete withdrawal” of Israeli forces from Gaza. In the third phase, the bodies of remaining hostages would be returned in exchange for a 3 to 5 year reconstruction plan to be carried out in Gaza under international supervision.

The plan will now be submitted to the Israeli Cabinet for final approval, and officials are optimistic that the agreement will conclude ahead of Trump’s inauguration on Jan 20.

This “final” one better seals the deal once and for all.

Is Elon Musk going to buy TikTok?
As the possible TikTok ban date looms, rumor has it that the Chinese government officials are evaluating a potential acquisition of the popular app by Elon Musk, if ByteDance eventually fails to avoid the ban in the US. It could be a part of the contingency plans for TikTok as part of an expansive discussion on how to work with Donald Trump’s administration, one of which involves Musk, said the people, who requested to stay anonymous. Apparently, the Chinese government holds a so-called golden share in a ByteDance affiliate that gives it influence over the company’s strategy and operations.

On the other hand, TikTok was quick to call out the rumours, reiterating that they have repeatedly said that they will never sell its US operation. They have until Jan 19 to either sell its US operations or face a ban in the country. Last month, Trump urged the Supreme Court to delay its decision until he takes office to enable him to seek a "political resolution". And we all know that Musk is a close ally of the President-elect.

How to boost GDP? Recognising ‘data’
Japan will begin to include the value of its data assets in its GDP this year, based on the new calculation standards by the United Nations which considers data-related assets such as online shopping histories, smartphone locations and health and weather data toward fixed capital formation, one of the components of GDP.

The inclusion of its data assets will lift Japan’s nominal GDP by around JPY 14 tril (USD 88.7 bil), over 1% to 2% higher on average between 2010 and 2020. Other countries also anticipate a boost from the new UN standards. The Netherlands expects a 3% increase, Australia 2.9%, Canada 1.9%, India 1% and the US 0.8%, though the year and types of data included in the calculations vary.

The current method of calculating GDP is based on UN’s System of National Accounts 200, which does not take into account the value of digital services and trade, which has grown substantially since the standard’s adoption in 2009. UN plans to adopt the revised standard as soon as Mar 2025. Interesting way to boost GDP numbers. Since it’s intangibles, looks like there’s relatively more room for abuse, especially to service political purposes.

Shorts:

1. Dept of Justice (DoJ) said that Trump would have been convicted if not elected

   Trump may have escaped all of his convictions for now, but in truth the President-elect would have been convicted of illegally trying to overturn the result of the 2020 presidential election if he had not successfully been re-elected in 2024. Trump was accused of pressuring officials to reverse the 2020 result, knowingly spreading lies about election fraud and seeking to exploit the riot at the US Capitol on 6 January 2021. As usual, he denies it all, despite evidence that is sufficient to obtain and sustain a conviction at trial, according to the DoJ.

2. Spain plans 100% tax for homes bought by non-EU residents

   Spain’s PM Pedro Sanchez had announced the country’s plan to impose a tax of up to 100% on the value of properties bought by non-residents from countries outside the EU, as part of the government’s measures to address the national housing emergency and increase affordability for its own people. He added that Non-EU residents bought 27,000 properties in Spain in 2023 "not to live in" but "to make money from them”, something he can no longer allow.

5. FOR YOUR EYES 📺

1. “Time is our most valuable asset, yet we tend to waste it, kill it and spend it rather than invest it.” — Jim Rohn

2. Being able to contact anyone at a very low-cost today is such an underrated privilege.

3. New year, new electric car? If you’re considering an EV, tune into this review of the Proton e.MAS 7.