☕️ Mkini investigation: RM52.07 mil in Bank Islam loans to finance Pahang deforestation

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

249,268 pieces of content have been taken down from Facebook at the request of the Malaysian Communications and Multimedia Commission (MCMC), according to Communications Minister Fahmi Fadzil. Of this total, 172,072 pieces were related to online gambling, and 56,136 were linked to scams — that’s a staggering 91.6%. According to Fadzil, MCMC cannot instruct platform providers to take down content but "can only request it".

22% fewer new HIV (human immunodeficiency virus) infections and 40% fewer HIV-related deaths were reported globally, according to estimates published in The Lancet HIV. While this marks significant progress in the fight against HIV, the study warns that current trends indicate the world is not on track to meet the UNAIDS 2030 targets of reducing new infections and AIDS-related deaths by 90%. The number of people living with HIV is projected to peak at 44.4 mil by 2039, with a gradual decrease to 43.4 mil by 2050. Despite the progress, the study highlights that at least 1 mil people continue to acquire HIV infection each year, and the virus remains a leading cause of mortality in many countries.

Wastages come in many forms — sometimes, it’s space. 35% of teachers’ quarters under the Education Ministry are unoccupied, with 17,524 (36.6%) of the 47,855 units vacant, according to Deputy Education Minister Wong Kah Woh. A year-long study conducted by the ministry, starting in December 2022, found that almost half of the vacant units, or 7,201 units, should have their functions changed from their original purpose.

3. IN MALAYSIA 🇲🇾

RM52.07 mil in Bank Islam loans to finance Pahang deforestation
Are local banks allowed to partake in funding illegal forest clearings? According to Malaysiakini’s investigation, Bank Islam was found to have issued loans totalling RM52.07 mil over the span of nine years to PKNP Agro Tech Sdn Bhd (PASB), a subsidiary of Perbadanan Kemajuan Negeri Pahang (PKNP) responsible for an oil palm plantation project sized at over 8,000 hectares. The plantation, developed without compliance to environmental impact assessment report recommendations, is reportedly plagued by poor management and deforestation. 

Back in Aug 2015, PASB mortgaged 1930 hectares of its plantation to Bank Islam for RM17 mil, with six additional loans being granted in the following nine years- each of which for an amount greater than RM3.58 mil. Such transactions surrounding PASB that could potentially yield no returns raised eyebrows- a financial expert speaking anonymously to local media questioned Bank Islam’s decision to back such loans, as oil palm plantation and deforestation are considered high-risk ventures that should be given more attention.

Pushpan Murugiah, CEO to the Centre to Combat Corruption and Cronyism, said that PASB involves politically exposed persons. The current chairperson for the company is Adnan Yaakob, previously Pahang MB. Financing engineering at play - Pushpan highlighted that it has become common practice for GLCs to borrow loans through private limited companies in their control, as they receive less scrutiny compared to their GLC parents.

Government vehicles to transition to EVs in stages
According to Minister of Natural Resources and Environmental Sustainability Nik Nazmi, Government vehicles are expected to transition to EVs in stages starting next year, with the matter soon to be finalised by the Finance Ministry. When asked if the transition covers all government vehicles or are only set for certain departments, Nik Nazmi stated that it would depend on needs and is subject to the discretion of the Finance Ministry. 

Nik Nazmi spoke at a handover event for the Guidelines on the Transition Of Government Vehicles to EVs. The guideline detailed the transition strategy, electric vehicle selection, charging infrastructure planning, and cost analysis. Said guidelines are also in place to ensure a smooth transition from ICE vehicles, with hopes of a sustainable EV ecosystem development in Malaysia. For EV owners, this means more EV charging points soon - a relieve to range anxiety.

Ex-Sabah Chief Minister appointed as Sabah governor
Musa Aman has been appointed the 11th Yang Dipertua Negeri of Sabah, effective Jan 1 next year. The 73-year-old was presented the instrument of appointment by Sultan Ibrahim at Istana Negara on Tuesday. Musa Aman was also conferred the Seri Maharaja Mangku Negara award, granting him “Tun” status. He is set to replace Tun Juhar Mahiruddin after close to 14 years of service, whose term expires December 31.

Parti Muda was quick to object to the appointment with acting president, Amira Aziz, lambasting the move as regressive. Citing the current government’s promise to phase out corruption, Muda opines that the appointment of Musa Aman as the country celebrating those who are corrupt instead. “Reformati” instead of “reformasi”, according to the party founded in September 2020.

Tun Musa Aman was previously acquitted of and discharged of all 46 criminal charges related to Sabah timber concession contracts back in 2020, involving a staggering 9-figure MYR.

If you are a foreigner reading this, please, please don’t get the perception that Malaysia lacks quality talent.

Shorts:

1. Penang's RM1 bil duo water treatment plant project

   In collaboration with the Penang state government, Pengurusan Aset Air Bhd (PAAB) is set to invest nearly RM1 bil to fund the construction of two Seberang Perai water treatment plants, starting next year. With a combined capacity of 250 mil litres, the two plants are expected to address Seberang Perai’s water problems for the past six years - a central issue during the recent Sungai Bakap by-election.

2. Evergreen Max to expand with 80 pawnbroking outlets

   Evergreen Max Cash Capital Bhd (EMCC) is aiming to grow its pawnbroking outlet next year, with 11 Islamic pawnbrokers expected by the first quarter of 2025. In a private placement announced in October, EMCC said it has plans of raising roughly RM30 mil for expansion purposes. Business has been booming for EMCC. In the financial period ended Sept 30, EMCC’s net profit grew a whopping 86.38% to RM18.99 mil. The company’s market cap stands at RM401 mil.

3. Telco workers caught stealing cables

   Eight men working with Telekom Malaysia were arrested late at night after George Town police spotted the individuals cutting cables by the road in Tanjung Bungah. The workers allegedly stole a total of 242 rods of telecommunication cables as they loaded them into the same work vehicles used during daytime. Half of the men were found to have past drug records. 

   Harapkan pagar, pagar makan padi.

4. AROUND THE WORLD 🌎

New mass grave discovered containing at least 100,000 bodies outside Damascus
More disturbing discoveries have been made that uncovered the atrocities in Syria during the reign of Bashar Al-Assad. Outside Damascus, another mass grave has been discovered by the Syrian Emergency Task Force, located at al-Qutayfah, 40km north of the Syrian capital. It is one of five mass graves that had been identified over the years, and this one contains at least 100,000 bodies of the people killed by the regime. The numbers are believed to be a “very conservative” estimate.

Hundreds of thousands of Syrians are estimated to have been killed since 2011 when al-Assad’s crackdown on protests against his rule grew into a full-scale civil war.

Al-Assad and his father Hafez, who preceded him as president and died in 2000, are accused by Syrians, rights groups and other governments of widespread extrajudicial killings, including mass executions within the country’s notorious prison system. Al-Assad repeatedly denied that his government committed human rights violations and painted his detractors as “extremists”.

Gaza ceasefire talks in final stage
Meanwhile, a ceasefire may finally happen in Gaza soon, after a senior Palestinian official told the BBC that talks were in a “decisive and final phase”. In recent weeks, the US, Qatar and Egypt have resumed their mediation efforts, with what seems like a greater willingness by both sides to conclude a deal.

Israel's defence minister, Israel Katz, has also said an agreement is closer than ever, citing that they “have not been this close since the previous deal”, with reference to an exchange of hostages and Palestinian prisoners in Israel in Nov 2023.

The Palestinian official outlined a three-phase plan which would see civilians and women soldiers held hostage in Gaza released in the first 45 days, with Israeli forces pulling out of city centres, the coastal road and the strategic strip of land along the border with Egypt. A second stage would see remaining hostages freed and troops withdrawn before the third stage, ending the war.

Of 96 hostages still held in Gaza, 62 are assumed by Israel to still be alive. More than 45,000 Palestinians have been killed since Oct 7, 2023. Most of the 2.3 million population of Gaza has been displaced. The strip has experienced widespread destruction and amid an ongoing struggle for aid, the people now face starvation.

Let’s all hope that this is the FINAL talk. A ceasefire to this madness is so much overdue.

More Trump things

• TikTok CEO meets Trump as it approaches ban deadline
  TikTok’s fight against the impending ban continues. On Monday, TikTok CEO Shou Zi Chew met US President-elect Donald Trump in Florida, after Trump mentioned in a Press conference that he would "take a look at TikTok" and how he has a warm spot for the app for possibly helping him win the youths in the last election. A law was passed earlier this year, ruling that TikTok will be banned unless it is sold by its Chinese parent company, ByteDance, before Jan 19. It is due to the alleged links between ByteDance and the Chinese state, links that both TikTok and ByteDance have always denied. Trump opposes the ban (despite supporting it in his first term), partly on the grounds that the ban could help Facebook, which he has accused of aiding his 2020 election loss.

• Trump and SoftBank CEO Masayoshi Son announce USD100bil US investment
  SoftBank Group CEO and Donald Trump have announced that the company will invest USD100 bil (RM446.65 bil) in the US over the next 4 years, a boost to the country’s domestic economy that would create 100,000 jobs focused on artificial intelligence (AI) and related infrastructure. The money is to be deployed before the end of Trump’s term. It is unclear how SoftBank plans to fund the new investment though. As of September 30, SoftBank had about USD29 bil in cash and cash equivalents, according to its most recent earnings report. After a sharp decline in shares between 2021 and 2023, its stock has recovered, gaining nearly 50 percent year-to-date. Trump on the other hand, has an affinity for splashy announcements promising thousands of jobs, even though such investments do not always pan out. Trump was quick to ask for double the USD100 bil after Son made the announcement.

• Trump petition to dismiss hush-money case denied by judge
  Trump might think that his immunity as the upcoming president can erase his previous convictions, but a judge has recently ruled that Donald Trump’s conviction for falsifying records to cover up a sex scandal should stand. The president-elect argued that it should be dismissed because of the US Supreme Court’s recent ruling on presidential immunity. In May, a jury convicted Trump of 34 counts of falsifying business records related to a USD130,000 (RM580,645) hush money payment to the adult film actor Stormy Daniels in 2016. The payment was for her silence before the 2016 election about a sexual encounter she claimed she had a decade earlier with Trump, who denies it. It was the first time a US president – former or sitting – had been convicted of or charged with a criminal offense.

Shorts:

1. Timeless Wedding-Dress Brand Vera Wang to be acquired by WHP Global
   WHP Global is reportedly going to acquire the iconic Vera Wang, a bridal brand that brings in more than USD700 mil (RM3.126 bil) in annual retail sales. New York-based WHP is a brand management firm that owns many other brands like Rag & Bone, Bonobos, Toys “R” Us, Express, G-Star Raw, Joe’s and Anne Klein, with a portfolio that generates more than USD7 bil in retail sales annually. WHP Global was valued at USD1.6 bil in March 2023. Wang is expected to continue in her role as the brand’s chief creative officer and will join WHP’s capital structure as a shareholder.

2. 3 people dead in US shooting incident
   Another lethal shooting incident has taken place in the US, this time at the Abundant Life Christian School in Madison, Wisconsin. The tragedy killed a teacher, a student and the suspected shooter who was a 17-year-old student of the school. There have been 322 school shootings in the US this year, the second-highest total of any year since 1966 – topped only by last year’s total of 349 shootings. The American public has been pushing for stricter laws on firearms, but politicians are facing difficulties putting legislation in place thanks to a strong pro-gun lobby.

5. FOR YOUR EYES 📺

1. It is one of my favourite series on YouTube — Tiny Desk Concert. And Billie Eilish takes the tiny desk.

2. In countries like Japan, the United States, and South Korea, most homes have air conditioning. However, in countries like India and South Africa, where it often gets very hot, very few homes have air conditioning. If you have an air-conditioner at home, consider yourself lucky.