☕️ Parliament eyes travel ban for blacklisted housing developers

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

8.5% of older adults in Malaysia over the age of 60 are affected by dementia, translating to approximately 260,000 individuals in the population, according to a 2020 study. Vascular dementia (VaD), recognized as the second-most common type of dementia after Alzheimer’s, is caused by impaired blood flow to the brain, often resulting from strokes or heart conditions. This reduction in blood flow deprives brain cells of oxygen and essential nutrients, leading to cognitive decline. Symptoms of VaD include problems with decision-making, lapses in concentration, and memory impairment.

GBP510 mil (RM2.86 bil) is the estimated real cost of the Royal Family to taxpayers each year, according to anti-monarchy campaigners, significantly higher than the GBP86 million provided through the annual Sovereign Grant. The Republic group claims that this higher figure includes additional factors such as security, which they estimate to cost around GBP150 mil. Regarding public sentiment on royal funding, a recent YouGov survey revealed that 55% of respondents consider the monarchy to be good value for money, while 30% believe it is poor value.

YouTubers are coming after Hollywood. USD23 bil is the average annual payout from YouTube to creators and media companies over the past three years, significantly surpassing the USD15 bil that Netflix is expected to spend on its shows and movies this year. Unlike Hollywood studios, whose content spending is fixed, YouTube’s revenue-sharing model allows its costs to increase alongside its ad revenue. In terms of viewership, nearly 45% of YouTube’s audience in America engages with content on TV screens, as reported last year by The Information. Notably, among YouTube’s 100 most-watched channels worldwide, over 40 channels report that television is their most popular viewing screen.

3. IN MALAYSIA 🇲🇾

Malaysia is influencing ASEAN countries 
The government’s intention to join the BRICS bloc has inspired several ASEAN countries to follow in Malaysia’s footsteps, according to PM Anwar Ibrahim. The government will keep up with the BRICS’s development to maximise economic benefits while allowing Malaysia to present its opinions on regional economic issues which ensures that ASEAN does not end up as an arena for power struggles of major powers. The PM claimed that the economic strength of ASEAN will increase when it becomes 11 member countries (membership of Timor Leste is still in progress). The Ministry of Investment, Trade, and Industry believes that practising neutrality will help Malaysia maintain its relationships with existing major trading partners. As Malaysia will be hosting the ASEAN Summits in 2025, the PM is looking to attract more investment while establishing diplomatic relationships.

The sorry state of GISB’s rescued children

1. Over half the rescued children are found to be underweight while 27 of them exhibit symptoms of disabilities but don’t possess a Kad OKU, according to the Women, Family and Community Development Ministry. However, about 95% of them can confirm having at least one living biological parent. A cognitive assessment has been conducted and almost 8% of the children are found to suffer from severe cognitive disorders.

2. The Home Minister has revealed that of the 625 children, 28 of them have identification issues and lack proper documentation. He also said that the government should provide them with a legitimate identity before reintegrating them into the education system and helping their future.

3. The children were also forced to do 500 squats every time they did something wrong including when they didn’t queue up properly to “discipline” them. The Home Minister said the police has searched 300 premises and made 415 arrests. He also added that the Malaysian authorities are seeking cooperation from Interpol as they have expanded their operation internationally.

Parliament eyes travel ban for blacklisted housing developers
The Housing and Local Government Ministry has proposed its plan to place a travel ban on the blacklisted housing developers and board members in the Parliament. As of Sept 30, 2024, 113 abandoned projects have been declared, affecting almost 16,000 buyers. As part of the punitive measures against errant developers, once a project is declared abandoned, the ministry will blacklist the developers and board of members involved to prevent them from applying for a new license and freeze their account. Their details will also be displayed in the National Housing Data Banking System for the public’s reference.

Aviation Business

1. Capital A Bhd’s CEO Tony Fernandes expects the merger of Capital A Bhd’s aviation business with AirAsia X Bhd (AAX) will achieve a 15% cost reduction. Fernandes even went a step further stating that the merger will likely translate into lower ticket prices for the passengers, thanks to cost reduction measures and more flights. After Capital A had secured the minority shareholders’ approval to dispose of its 100% stake in AirAsia Bhd and AirAsia Aviation Group Ltd for RM6.8 bil in exchange for AAX shares, including the novation of Capital’s A debt to AAX, there is another hurdle — AAX’s shareholders’ approval. The fate of the deal will be known today as AAX holds its extraordinary general meeting to determine this matter.

2. Jatuh ditimpa tangga for Malaysia Aviation Group Bhd (MAG). After facing delays for the Boeing 737-800 jet deliveries, now another jet maker, Airbus, has delayed the delivery of Malaysia Airlines Bhd’s (MAB) A330neo wide-body aircraft for the second time. MAB had expected the delivery of its first of 20 A330neo to arrive by September. The delay was caused by findings identified by the European aircraft maker during the flight line stage. It is now expected to arrive by the end of November. As a result, the planned inaugural A330neo flight to Melbourne will be impacted, along with subsequent flights with A330neo.

Shorts

1. Heart-attack-inducing rate hikes at IJN
   The National Heart Institute (IJN) has planned to increase the fees for patients referred by the Health Ministry by 10% to 40%. The newly appointed CEO of IJN stated that the cost change is due to inflation and rising operational costs which made maintaining the current price impractical. He shared that a bypass strategy in a private hospital could range between RM110k-120k compared to between RM40k-50k charged by IJN for a similar procedure. However, the Deputy Health Minister said a discussion will be held with the Finance Ministry and IJN to understand the reasoning behind the fee increase in detail.

2. Landslide at Taman Melawati puts 300 residents at risk
   About 300 residents of Taman Melawati, Ampang were ordered to evacuate immediately after the authorities classified the landside as high risk. Heavy rainfall led the ground to shift causing several trees to fall on the houses and vehicles around. Selangor Fire and Rescue Department identified the landside to cover an area of 20m by 20m with a height of 30m and that there is still earth movement in the area. The affected site is privately owned by a developer, according to Ampang Jaya Municipal Council (MPAJ). View the incident here.

4. AROUND THE WORLD 🌎

Israel will listen to US but make own decisions, US continues to replenish Israel arsenal
Benjamin Netanyahu has told Joe Biden that Israel is going to “listen” to the US but has no qualms to act according to its own national interest. Amid expectations of Israel's retaliation after Iran’s missile attack on Oct 1, he also said that Israel would strike the Iranian military only, not any nuclear or oil facility targets. Biden said he would not support such an attack, with the Gulf states lobbying Washington to stop Israel from attacking Iran's oil sites because they are concerned their own oil facilities could come under fire from Tehran's proxies if the conflict escalates. Oil markets have been on edge ever since the prospect.

However, Israel is actually running low on its air defence missiles. Guess who is happily replenishing? The US. It deployed the anti-missile system THAAD to Israel as it continues to provide “ironclad” support for its ally during the mounting tensions with Iran.

Meanwhile, Hezbollah leader Naim Qassem made a televised address yesterday, with the core message of ceasefire as the only solution to the rising conflicts. He continued to call for Israel to stop attacking Lebanon and Gaza but emphasised that the resistance would continue to fight and would never be defeated because they are the owners of the land.

From the AI world:

1. US weighs on capping exports of AI chips to some countries in the interest of national security

   The US is considering to cap the exports of AI chips from Nvidia and AMD to some countries, by setting a ceiling on export licences for certain countries (not just China) in the interest of national security. Anonymous people familiar with the matter said that officials are focused on the Persian Gulf countries, who appear to have a growing appetite for AI data centres and the deep pockets to fund them. Nvidia, AMD and Intel did not respond for a comment regarding this matter. Setting country-based caps would tighten restrictions that originally targeted China’s AI ambitions, but as it is, the US has already restricted AI chip shipments by the same companies to more than 40 countries across the Middle East, Africa and Asia over fears their products could be diverted to China.

2. Google seals deal with Kairos Power to build small nuclear reactors for AI

   Tech companies like Google, Microsoft and Amazon are driving renewed interest in nuclear energy as they scour the planet for electricity sources to power their AI data centre. In a recent landmark deal, Google has chosen California-based tech giant Kairos Power for the construction of seven small nuclear reactors capable of generating 500 megawatts of power. It will come online by 2030, with others to follow in the coming years. Google said that the agreement will help accelerate a new technology to meet energy needs cleanly and reliably. Data centres consume about 3% of the world’s electricity, with consumption expected to rise substantially in the coming years as AI continues to develop. Kairos Power said that the partnership will allow the company to “quickly advance down the learning curve” and is glad to have Google who “deeply understands our innovative approach and the potential it can deliver”.

Economic struggles and tension in East Asia

1. China is considering a USD853 bil debt swap to rescue local governments

   China is considering allowing its provincial-level governments to issue as much as RMB6 tril (USD853 bil or RM3.64 tril) in bonds through 2027, as part of their multi-pronged plan to help the country meet its economic growth target of around 5% and defuse financial risks. It is also mainly to refinance their off-balance-sheet debt. The International Monetary Fund estimated that the local governments held over RMB60 tril yuan of debt as of last year. The governments will most likely be allowed to replace their debt with official bonds carrying lower interest rates.

2. Taiwan reported 153 Chinese military aircraft circling airspace in flying drills

   China has carried out a massive military exercise that encroached on Taiwanese airspace, sending the island nation to a heightened alert. Taipei said it responded by dispatching “appropriate forces” and its Premier Cho Jung-tai then stated that these unprompted drills will cause great disturbance to peace and stability in the entire region. China on the other hand said the one-day drill was a warning against “separatist acts”, referring to the recent Taiwan President William Lai Ching-te National Day speech which said China has no right to represent Taiwan and declared his commitment to “resist annexation or encroachment”. The US, which is an ally of Taiwan, slammed the drill as irresponsible, disproportionate, and destabilising. Look who is meddling.

5. FOR YOUR EYES 📺

1. It’s the time of the year, again — PSA on what to do if your vehicle gets caught in the flood.

2. The Holy Trinity of hypercars round 2 — IYKYK. Wonder what will come out of Stuffgart (Porsche) and Modena (Ferrari).

3. No risk, no rich