☕️ Yamtuan to N9 MB: Go away, I don’t want to see you

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

USD166 bil (RM677.81 bil) – China’s pharmaceutical expenditures reached that amount in 2024, accounting for 10% of the global market. China’s pharmaceutical market now trails only the US, as spending on drugs in the Asian country has increased as the large population ages. An executive at a major Japanese pharmaceutical company noted that the number of people in China suffering from lifestyle-related diseases is increasing as well, due to Chinese eating habits becoming more Westernised. This has led to Japanese firms investing more in China, as they aim to tap the rapidly improving drug discovery capabilities of Chinese partners. Other global drugmakers are boosting investments in China as well, including names like AstraZeneca and Pfizer.

USD140 bil (RM571.65 bil) – Space company Blue Origin, founded by Amazon’s Jeff Bezos, was valued at that amount after a recent funding round saw the firm raising USD10 bil from outside investors for the first time. Following the fundraising exercise, Bezos said that it “makes sense” for Blue Origin to pursue an initial public offering (IPO), though it would be “several years from now”. This has been the clearest indication so far that the firm could seek a stock market listing. An eventual IPO would offer investors exposure to a major space company that is an alternative to the sector’s dominant player, SpaceX, amid renewed interest in the sector.

USD28 bil (RM114.33 bil) – Jeff Bezos invested that much of his personal fortune into space firm Blue Origin, which he revealed during an interview. In response, Tesla and SpaceXAI CEO Elon Musk openly applauded Bezos’ investment in a post on X, adding that he was glad Bezos “cares so much about space”. The interview followed Blue Origin’s recent fundraising exercise, with Bezos also revealing that he had accepted outside investors because he could “see the financial future of Blue Origin with some clarity now”. Bezos and Musk have historically butted heads over a number of topics, ranging from government contracts to patents and more, but have also spoken about each other with admiration.

3. IN MALAYSIA 🇲🇾

Nik Nazmi was caught in an alleged khalwat case
The Selangor Islamic Religious Department (JAIS) has detained two individuals over an alleged khalwat (close proximity) case, which included the former minister Nik Nazmi Nik Ahmad. Nik Nazmi himself confirmed the detention and added that he was at a residence in Petaling Jaya on October 15 with a woman after they decided to continue a discussion about a project there. However, he denied that both he and the woman were engaging in any improper conduct. Following the incident, Bersama president Syukri Razab announced that Nik Nazmi is suspended from all official Parti Bersama Malaysia activities for three months, effective from October 20. FYI, the Melaka state election will be held on November 14. Looks like someone has been suspicious of him - a dossier circulating online of his alleged activity. Will leave it to your imagination.

Is khalwat an offence in Malaysia? It is a Sharia criminal offence in Malaysia, but it applies only to Muslims. An act is considered khalwat when a Muslim man and a Muslim woman are together in an isolated place that could imply immoral behaviour. Depending on the respective state sharia law, one could face a fine of up to RM3,000, imprisonment for up to two years, or both.

Yamtuan to N9 MB: Go away, I don’t want to see you
Yang di-Pertuan Besar of Negeri Sembilan, Tuanku Muhriz Tuanku Munawir, during an interaction after Friday prayers last week was seen publicly rebuking Negeri Sembilan MB Ismail Lasim. Tuanku Muhriz was heard telling Ismail that he does not want to see him. In a separate scene, Tuanku Muhriz refused to shake Ismail’s hand upon arriving at the mosque. To recap why the Negeri Sembilan did this - Ismail took his oath of office as MB before Tuanku Muhriz on Aug 2, only to sign a proclamation months before to denounce Tuanku Muhriz as having been dethroned.

Before the heated exchange, in an attempt to put the crisis to bed, Tuanku Muhriz conferred the state's prestigious honours on three Undangs and their consorts at Istana Besar Seri Menanti. According to the traditions of Adat Perpatih and codified under Article VII of the Negeri Sembilan State Constitution, the ruler is democratically elected and appointed by the Undang Yang Empat (the Four Ruling Chiefs). By having the Undangs at his side, Tuanku Muhriz further solidified his position as the ruler.

Tabung Haji is making a move to ban politicians from its board
Minister in the PM’s Department (Religious Affairs) Dr Zulkifli Hasan told Parliament via a written reply that Lembaga Tabung Haji (LTH) is proposing amendments to the Tabung Haji Act 1995 to bar active politicians from its board. The proposal is part of the 17 recommendations from the Royal Commission of Inquiry (RCI) report into the pilgrim fund’s affairs from 2014 to 2020. LTH defines an active politician as a member of Parliament or a state assemblyman, or some one holding a position at the national, state or division level of a political party. At the moment, there are no active politicians on the Tabung Haji board, and it has been that way since 2023. A good governance practice to apply across all GLCs and GLICs. 

Malaysia unveils six homegrown chips
Thanks to the Malaysia Semiconductor IC Design Park in Puchong and Cyberjaya, companies operating within the industry park have unveiled six homegrown semiconductor innovations with an estimated combined sales potential of RM300 mil. Below are the six homegrown chips:

• SkyeChip’s MARS1000 - edge-AI processor intended for use in cameras, robots and factory systems;

• MaiStorage’s aiDAPTIV+ - provides storage solutions for AI personal computers and servers;

• SiliconX - unveiled Malaysia’s and Southeast Asia’s first homegrown field-programmable gate array (FPGA), a reprogrammable semiconductor device designed for industrial and automotive applications;

• Infinecs’ Maxwell - an automotive-grade power regulator for vehicle electronics;

• Weeroc Space - created a power controller chip for satellites and other space systems;

• Alphaswift - developed a flight controller for autonomous drones.

According to the Economy Minister, Akmal Nasrullah Nasir, the next step is to focus on securing customers, meeting industry qualification requirements, and turning the designs into commercially successful products.
View infographic: Where Malaysian players sit in the semiconductor value chain

4. AROUND THE WORLD 🌎

Massive protests over rising living costs in European cities
A wave of unrest has swept several European cities, including Belgium, France, Italy, and Portugal, as hundreds of thousands of Europeans take to the streets to protest the rising cost of living.

Paris: More than 550,000 people joined demonstrations that turned into ugly clashes, looting and fires after violent fringe groups targeted public buildings, luxury boutiques and supermarkets, and attacked police vehicles and officers.

Brussels: Police fired tear gas and water cannon to disperse student protesters, whom they accused of launching missiles at them and setting fires.

Lisbon: An estimated tens of thousands of protesters marched against the cost of living crisis, low wages and an inability to access housing in major cities.

Milan: Rioters clashed with police, looted stores and set property on fire in the city centre, emptying Piazza del Duomo and a luxury arcade that would usually be full of shoppers. Analysts say that the “early stages” of a movement are emerging in Greece, Germany, and Austria, with mobilisation expected “in the coming week”, fuelled by the said “shared grievances”.

Can’t help to imagine if there was foreign interference over such coordinated riots happening simultaneously across major cities.

F1 - from pit stop to hospitals
The high-adrenaline yet efficient pit stop process of a Formula 1 car has inspired how doctors from Great Ormond Street Hospital (GOSH) approach patient care, from surgery-to-ICU handovers and neonatal care to air-ambulance response times. At Ferrari's factory in Maranello, a medical team from the hospital studies how pit crews organise roles, communication and handovers and applies it in their processes, resulting in a more organised process from surgery to intensive care. A 2007 study by researchers at GOSH and the University of Oxford found the F1-inspired handover process has reduced technical errors, information omissions and handover time. It’s amazing how F1 continues to find new ways to apply its expertise in emergency medicine - at this year's race at Silverstone, a collaboration with Air Ambulance Cornwall showed how response times could be improved, with take-off time reduced from five minutes to three and a half. So the next time you experience the exhilaration of F1, remember that there is also a team of medics learning to save lives in a similar way.

Read the full study here.

HSBC ‘sharia‑compliant’ fund spent over USD 100 mil on Israel
An analysis by Middle East Eye has found out that HSBC’s Islamic Global Equity Index Fund has purchased more than USD 100 mil worth of shares in companies linked to the Israeli military in the first half of this year. The analysis detailed various purchases made in several companies that directly or indirectly provide Israel with weapon technologies, namely Raytheon, Analog Devices, Honeywell, Rolls-Royce and Palantir. Products of these companies are found in missiles used in the genocide in Gaza, among others. Many funds have been seeking to disentangle from Israel in the face of significant pressure by activists over the past three years, as a response to Israel’s genocide in Gaza. HSBC has been serving halal pension schemes in Britain for the last couple of decades and is expected to make changes to its funding criteria following these findings.

Indonesia stunned by MSCI’s decision to expel it from global indices
Indonesia is having a tough time. Not just forests on fire, but its capital markets too. The Morgan Stanley Capital International Market Classification Framework (MSCI) has said that Indonesia's stock market is no longer worthy of "emerging market" status, and that it is planning to remove it from a suite of indices tracked by funds. This alone sent the country’s main index down by 11.57%, and bringing its year-to-date returns down to -40.04%. Equities in the country have struggled since a January freeze in the MSCI indices, with a threatened downgrade to "frontier" status because of opacity in ownership and trading behaviour. MSCI cited insufficient reforms to tackle the problems and said even a downgrade to "frontier" status would not reflect the severity of the issues, but proposed instead to move further beyond that, to "standalone" status.

On similar note, market tanked last week due to a combination of factors. Nvidia boss Jensen Huang said ‘all of this is going to pass’.

KFC - Kentucky Fried Comeback by switching from Pepsi to Coca-Cola
Kentucky Fried Chicken (KFC)’s US restaurants will start to replace Pepsi with Coca-Cola beginning next year, after staying loyal to PepsiCo for the past 30 years. The change comes as KFC aims to win back US diners, who have ditched the fried chicken chain for rivals such as Chick-fil-A or Popeyes. KFC US President Catherine Tan-Gillespie said that the decision is a critical step to “meet changing tastes and give customers more reasons to choose us”. For many fast-food chains, beverages have become a critical way to attract consumers. A number of restaurants, including McDonald’s and Taco Bell, have broadened their drink offerings with options such as refreshers or “dirty soda”. Coke and Pepsi have been rivals for decades over important restaurant partners, which represent both a sales opportunity and the chance to grow the visibility of their beverage brands.

5. FOR YOUR EYES 📺

Special today - all eyes on flying cars
Peter Thiel, once business partner of Elon Musk during their PayPal days, famously lamented tech stagnation in 2011, saying “We wanted flying cars, instead we got 140 characters” (140 characters referencing Twitter). 15 years later, Musk delivered the v1.0 of this flying car, the Tesla Roadster. Even if you don’t like cars, it’s one heck of a crazy launch show. As for Porsche, they couldn’t have picked a worse day to launch their new supercar, Mission S.

1. My first encounter was seeing the video on Tesla’s official page (view here), thinking it was AI and just Musk being Musk - trolling. Turns out, it’s real. The 3 stunts that were demo-ed live by the Roadster. Btw, 0 to 100 in less than 1 sec.

2. Here’s the science explaining how the car clung upside down. Musk explained this exact tech back in 2018 and the room laughed. If you are more curious, you can watch here Tesla’s VP of Engineering explaining the tech behind the Roadster. The core tech is borrowed from none other than SpaceX. Gene Munster, an investor highlighted that the launch “was an engineering flex with no commercial value beyond embarrassing traditional car makers” and the speculation grows louder that Tesla and SpaceX will merge. Prediction markets see 77% odds by 2028.

3. Photo shots of the car’s exterior and interior.

4. Open for reservation for Malaysians.

I have followed Elon Musk since 2009 when the odds were stacked against him. One thing he has proven again and again and again and again is he will always have ridiculous ideas, won’t deliver on time but key thing is he delivers.