☕️ Najib Razak, Irwan Serigar granted DNAA in RM6.6 bil 1MDB-IPIC case

1. MARKET SUMMARY 📈

Best-performing member of the FBM KLCI index goes to Sunway Bhd. The stock is up 132% year-to-date since Jan 2, 2024 and 150% over the last one year. Its market cap now stands at RM28.6 bil.

2. NUMBERS AT A GLANCE 🔢

RM3 bil was spent by the Malaysian government in 2023 to purchase medicine for public hospitals and clinics, representing a 30% increase from RM2.3 bil in 2015, according to Health Minister Dzulkefly Ahmad. This increase is driven by higher drug prices, a rising number of patients, and the use of new medications, many of which are still under patent, making them more expensive. This is less than 1% of the 2023 Budget of RM388.1 bil.

Talk about budget, Elon Musk has grand plans to cut the US budget by USD2 trillion. Is it a pipe dream? The folks at The Economist found about USD5 trillion worth of cuts that could be done over the next few decades. Delaying the Medicare coverage to the age of 67 from 65 and raising the age for full social-security benefits (in effect, a national pension) to 70 from 67 could save USD1 trillion over the next decade. Capping the Medicaid rate to the rate of inflation could save another USD900 billion in the next decade. The rest calls on the Medicare and the tax systems — the question is, will the Trump administration have the political will to do so?

Seoul experienced its heaviest November snowfall on record, with at least 16 cm of snow accumulating yesterday, surpassing the previous record of 12.4 cm from November 1972. This significant snowfall led to widespread disruptions, including grounded flights, closed roads, and delays in transport services. Tragically, at least one person died in a weather-related traffic accident near Seoul. Better pack more winter clothes if you’re traveling to South Korea this coming winter season.

3. IN MALAYSIA 🇲🇾

Charges against Najib Razak and Irwan Serigar dropped
Six charges of criminal breach of trust of over RM6.6 bil for the duo were dropped, with both Najib and Irwan receiving a discharge not amounting to an acquittal (DNAA) order in the High Court today. Judge Jamil Hussin stated that trials were postponed countless times leading to inordinate delays — Najib and the former Treasury secretary-general Irwan were charged back in 2018. The court did hear that both of the accused could be recharged, should the prosecution see fit.

Najib and Irwan were both charged for misappropriating and diverting government funds to International Petroleum Investment Co (IPIC) for the purpose of repaying 1MDB debt. The latter, upon hearing the decision, was relieved when speaking to the media as he expressed his confidence in the prosecution having no case against him. The prosecution did fail to produce hundreds of documents in the 6 year timeframe, how to put up a defence like that? Irwan said that all monetary transactions were done according to government procedures and was looking forward to performing his Umrah as he felt vindicated.

Class-action lawsuit against government for Covid-19 vaccines
Eight Malaysians have filed a RM60 mil class-action lawsuit against the government alleging that Covid-19 vaccinations were harmful, causing deaths and severe health complications. The government wasn’t alone though — the lawsuit also named the World Health Organization (WHO), current and previous PMs, the IGP, Health Minister Dzulkefly Ahmad and his predecessors, Pfizer Malaysia, and Sinovac Biotech Ltd, amongst others.

The plaintiffs claimed that the WHO and its director-general declared the Covid-19 pandemic fraudulent and unscientific, subsequently approving and recommending countries worldwide to implement the Movement Control Orders that we all loved (read: hated). The plaintiffs also claimed that Covid-19 was a man-made bioweapon, deliberately created to resemble a common flu and to designate Toxic Experimental Vaccines for treatment.

As for the government, the plaintiffs claimed that the related defendants basically conned Malaysians by not obtaining public consent for vaccines. Weird times we live in.

Drones are now smuggling contraband into prison
Prison officials in Malaysia are hard at work fighting drug cases, with drones now being used to deliver them. It sounds comical but this is far from an isolated case- there’s been 55 similar occurrences this year alone! As a matter of fact, prisons now are equipped with anti-drone teams, staffed with shooters to take drones down. So far, all cases have been detected, with no drones going unnoticed. According to Home Minister Saifuddin Nasution, Tapah prison recorded the highest number of drone-related drug smuggling, followed by the Alor Setar prison.

In retrospect, it comes to no surprise that prisoners in Malaysia are finding alternatives to bring drugs in. Saifuddin noted that 70% of the 87,000 people being detained are there for drug-related offences, causing high demand from within the walls, with 210 cases of smuggling drugs into prison this year. He also said that RM228.2 mil of drugs had been disposed of as of October.

Shorts

1. PM Anwar Ibrahim to announce RM13 bil housing project next month

   Anwar is set to announce the largest affordable housing project in December, according to Housing and Local Government Minister Nga Kor Ming. The project reflects the current government’s commitment to ensure citizens own homes, with details of the project expected after Anwar’s formal announcement. Nga Kor Ming also highlighted that needy civil servants will also receive opportunities to buy in- reports on Tuesday revealed that more than half of civil servants (688,663 out of 1.3 mil) are yet to own a home.

2. Medical insurance premium expected to rise 40-70% in 2025

   A local newspaper reported yesterday that a future increase in premiums by multiple insurance providers are set in stone, according to notices sent to policyholders. In response, some have decided to terminate their policies outright and are opting for employer insurance or government hospitals, the latter of which is now facing overcrowding issues from the middle class no longer being able to afford private healthcare.

3. AMMB Holdings Bhd declared interim dividend of 10.3 sen per share
   AMMB Holdings Bhd reported a net profit of RM500.57 mil for three months ended Sept 30, 2024 (2QFY2025) and declared a higher interim dividend of 10.3 sen per share, compared with six sen per share for the same period last year. The group’s stronger capital position allowed the higher payout to shareholders. Year-on-year, the Bank’s net interest income edged up 6.8% and Islamic banking income gained 41%, while non-interest income, such as fees and commissions, fell 24%.
   View earnings here.

4. AROUND THE WORLD 🌎

Israel vs Hezbollah ceasefire achieved, but what about Gaza?
A ceasefire between Israel and Hezbollah is now in effect following both sides accepting an agreement brokered by the US and France. The ceasefire is to be a “permanent cessation of hostilities”, according to US President Biden. The agreement called for a halt to hostilities and the withdrawal of Israeli and Hezbollah forces, among other conditions. A five-member monitoring mechanism will determine whether there are any violations.

Enforcing the truce
Israeli PM Netanyahu said he was ready to enforce the agreement and would respond forcefully to any violation of the ceasefire, which is allowed under the ceasefire clause that allows Israel the right to unilateral strikes should Hezbollah be detected trying to rearm. This was not in the copy of the agreement sent to Lebanese officials, who promised they would oppose any violations of its sovereignty. Funnily enough, Netanyahu only pursued a ceasefire to rest and rearm Israeli forces and focus on Iran and Hamas.

Peace holds, so far
Lebanese civilians are starting to return home to southern Lebanon. However, the IDF has asked for some residents to hold off on returning until given the go-ahead, as Israeli military forces are still in their villages. There was also an incident where Israel said its forces identified Hezbollah operatives returning to areas near the border, with the IDF opening fire to prevent their approach. There is no sign that the incident will undermine the ceasefire. However, there were IDF strikes that took place after the ceasefire was announced but before they came into effect, targeting transport hubs between Syria and Lebanon.

Angry Israelis
Still, the ceasefire has been met with outrage by the residents of northern Israel, who do not feel safe and fear a repeat of the Oct 7 attack, carried out by Hezbollah instead. However, a security official responded that they would not allow another such attack, “not in Lebanon and not in Gaza”, and that Israel is ready for any developments or violations by Hezbollah.

What about Gaza?
The ceasefire agreement has led to Palestinians feeling abandoned and fearful that Israel will now direct its focus to Gaza. It is also a blow to Hamas, considering they had hoped a wider war would be able to push Israel for a comprehensive ceasefire. However, Hezbollah has dropped its promise that there would be no ceasefire until the war in Gaza ends, leading to disappointment. Still, a Hamas official said the group “appreciates” Lebanon’s right to an agreement to protect its people and voiced a hope that the agreement with Lebanon would serve as a way towards an agreement between Israel and Hamas. As it stands, Biden has already promised his administration will make another push with other nations to reach a ceasefire in Gaza.

Crime watch

• ICC seeks arrest warrant for Myanmar military leader over Rohingya campaign
  The prosecutor of the International Criminal Court (ICC) seeks an arrest warrant for Min Aung Hlaing for crimes against humanity in the alleged persecution of the Rohingya. The military leader is allegedly responsible for the genocide of the Rohingya, with the military killing thousands of Rohingya and subjecting countless women and girls to horrific acts of sexual violence under his command. Myanmar has responded, saying it does not recognise the statements of the ICC as it is not a member of the court. Israel and Min can start exchange notes. 

• Vietnamese property tycoon told to refund missing money or die
  Property mogul Truong My Lan was told she had to repay USD11 bil if she wanted to avoid execution by lethal injection. Prosecutors are arguing against leniency unless she can return a significant chunk of the USD16.4 bil she was found guilty of embezzling in two separate trials. Her lawyer shared that a group of overseas investors have agreed to lend her USD400 mil and are working on the documents required to send the money in. Under Vietnamese court law, if Lan can return three-quarters of the embezzled assets, the jury can consider a reduction in her sentence.

• Chinese defence minister faces corruption probe
  Dong Jun is the latest official to be picked up in Beijing’s corruption crackdown on its military and marks the third defence minister in a row to be investigated for corruption. However, the reports come from unnamed US officials. Beijing’s Ministry of Foreign Affairs has dismissed these reports as “chasing shadows”. Dong was appointed as Defence Minister in December 2023, and oversaw a thaw in US-China military ties, leading to theatre-level commander talks for the first time in September. The defence minister position seems to attract scandal - both of Dong’s immediate predecessors were removed for the same reasons.

Shorts:

1. Vietnam's richest man takes on Grab

   A different tycoon and Vietnam’s richest man, Vingroup chairman Pham Nhat Vuong, aims to carve a slice of the SEA ride-hailing pie for himself through Xanh SM, which offers EV ride-hailing and rents out vehicles to gig drivers. However, Xanh SM is faced with scepticism from analysts, who are questioning whether the company’s growth potential is enough for the highly competitive market, and whether it is wise for Vuong to push his Vinfast brand of EVs through the platform.

2. Australia nears social media ban for children under 16

   The Australian parliament’s lower house has passed a bill that aims to force social media platforms to take reasonable steps to ensure age verification protections are in place, with systemic breaches potentially costing companies up to USD32 mil. The bill, meant to protect children under 16, has been met with arguments from the children themselves, saying the law could cut them off from their most important social and family connections, and that a ban is not the solution.

3. Imran Khan supporters call off protest after arrest of nearly 1,000
   Protests demanding the release of former Pakistani prime minister Imran Khan have been temporarily called off, due to what the organisers call “government brutality”. The crackdown by the authorities on protestors also saw nearly 1,000 arrested, with six killed in clashes.

5. FOR YOUR EYES 📺

1. Squid Game Season 2 trailer now out.

2. Change is the only constant. Take a look at S&P 500 top 10 companies over the decades.

3. With Christmas less than a month away, I better put in my wishlist for Santa to prepare.