☕️ YTLComms' RM4 bil 1BestariNet project under MACC investigation

1. MARKET SUMMARY 📈

2. NUMBERS AT A GLANCE 🔢

Northport (Malaysia) Bhd set a new record in August 2024 by handling 365,558 twenty-foot equivalent units (TEUs), surpassing its previous high of 354,548 TEUs in July 2024. Transport Minister Anthony Loke noted that with this momentum, Port Klang, which includes Northport and Westport, is on track to rank among the top 10 busiest container ports globally by the end of 2024.

While factors like age, gender, and genetics are significant in the risk of developing dementia, research suggests that up to 45% of cases may be preventable or delayed. This highlights the importance of lifestyle and environmental factors in reducing dementia risk, offering practical steps for prevention, despite the impracticality of altering inherent risks like ageing or genetics. The best way to lower the risk of dementia is to live a healthy life — don't smoke, limit alcohol, and exercise regularly.

Nvidia's stock plummeted by more than 9% during regular trading in the US last Tuesday, leading to a significant downturn in semiconductor stocks. The decline wiped out approximately USD279 bil in market value, marking the largest single-day market cap drop for a US stock in history. Fun fact — it’s also bigger than Bursa Malaysia’s entire market cap of USD262 bil. This surpassed the previous record held by Meta, which lost USD232 bil in value in a day back in February 2022.

3. IN MALAYSIA 🇲🇾

Payment claims for RM4 bil 1BestariNet project under MACC investigation
The Malaysian Anti-Corruption Commission (MACC) has initiated an investigation into payment claims related to the Ministry of Education's 1BestariNet service tender, awarded to YTL Communications Sdn Bhd in 2011. MACC conducted raids on September 4 at government offices and Menara YTL in Bukit Bintang, seizing several documents for review to identify potential witnesses.

The 1BestariNet Project aimed to enhance telecommunications in Malaysian schools, allowing students and teachers access to wireless services. The investigation focuses on claims involving false information connected to approximately RM2.7 bil in payments, and it is being conducted under Section 18 of the MACC Act 2009. MACC Investigation Division senior director Hishamuddin Hashim confirmed the investigation and urged cooperation from all parties to avoid interference.

In response, YTL Communications acknowledged receiving requests for information from the MACC concerning 1BestariNet and emphasised that it was selected through an open tender process involving 19 bidders, citing its bid as the most technically compliant and cost-effective. YTL stated that the project was certified as completed by the Education Ministry on June 30, 2019, and assured its full cooperation with the MACC.

IHH makes a move up north, acquiring Island Hospital in Penang
IHH Healthcare Bhd, Malaysia's largest hospital operator, announced on September 4, 2024, its acquisition of the 600-bed Island Hospital in Penang for RM3.92 bil in cash from Comprehensive Care Sdn Bhd. The deal encompasses vacant land valued at RM223 mil, with development approvals already in place. IHH plans to finance the acquisition through internal funds and external borrowings, anticipating it will enhance earnings and return on equity by 2026. Dilip Kadambi, group CFO, expects the hospital to contribute over 15% to the group's annual revenue — which could potentially exceed RM3.13 bil when based on FY2023 figures. The acquisition is also expected to double IHH's medical tourism revenue in Malaysia, as the group claims that over one in three foreign patients utilise its facilities.

IHH's CEO, Dr Prem Kumar Nair, highlighted the strategic importance of Island Hospital, citing its leading position in Penang and its appeal to foreign patients. Following the acquisition, IHH will operate 18 hospitals in Malaysia, including three in Penang, and will have over 1,000 operational beds in the region. The hospital currently attracts over 42,000 inpatient admissions and 430,000 outpatient visits annually, with an average revenue of RM12,000 per inpatient.

First lung cancer diagnosis and treatment aided by AI in Malaysia
If ChatGPT is the only thing that pops up in your mind when people mention AI, get this; several local doctors have successfully diagnosed and treated the country's first lung cancer case with its help. The patient, a 67-year-old male smoker without symptoms, underwent a routine health screening at a private hospital in Klang Valley, where an AI-enabled chest X-ray identified a suspicious shadow in his upper left lung. Dr Tho Lye Mun, president of the Lung Cancer Network Malaysia (LCNM), noted that the AI system detected subtle changes that could have been missed. The patient was then subjected to further tests and came back with an elevated CEA tumour marker and a biopsy that confirmed primary lung cancer, but staging scans revealed that the cancer had not spread. This allowed for a minimally invasive surgical procedure. The patient was discharged just three days post-surgery.

The achievement is a result of a collaboration between LCNM and AstraZeneca, which has expanded AI-enabled screening initiatives since 2020. The AI technology aims to improve access to early lung cancer diagnosis, addressing the fact that 95% of lung tumours in Malaysia are typically diagnosed at advanced stages (Stage 3 and 4). Maybe AI coming after our jobs isn’t all that bad.

Shorts

1. Enjoyed staying at the Concorde Hotel? You can now own it — for RM700 mil
   Previously known as Merlin Hotel, Concorde KL is being listed for sale along with adjacent land, with plans for demolition to make way for a multibillion-ringgit integrated development. Established in 1957, the hotel has 581 rooms and spans about 4.5 acres of freehold property, attracting interest from several investors due to its prime location. The property is linked to Singapore-based Malaysian tycoon Ong Beng Seng and was previously reported (in 2018) linked to Sultan of Selangor Sultan Sharafuddin Idris Shah and entrepreneur Syed Yusof Syed Nasir. The public tender is set to close on October 16, 2024.

2. Penang DAP to have a new party head in 2028 as Chow Kon Yeow decides not to re-run
   Penang CM Chow Kon Yeow has decided to step down from his role as state DAP chief after leading the party in Penang for 25 years but will continue to serve as chief minister until the end of his term in 2028. DAP secretary-general Anthony Loke confirmed that Chow will not defend his position as Penang DAP chairperson in the upcoming party election on September 22, emphasising that this decision does not affect Chow's role as chief minister, which is limited to two terms under the state constitution. In Malaysia, political resignations are rare, the last being that of Muhyiddin in 2021.

3. Swinging into trouble: Major raids Lead to 36 arrests in Kuala Lumpur
   36 individuals, including a civil servant and a university student, were arrested today for allegedly participating in "swinger" activities as part of a 147,000-member online community called "Swing That Fun." The police, in collaboration with the Federal Territory Islamic Religious Department (JAWI), conducted raids at two locations, resulting in the arrests of 34 people in Mont Kiara and 2 in Puchong, besides seizing cash, computers, and adult toys during the operations, believed to be the website's owners. The group charged fees for membership and participation in swinging sessions.

   Interesting modus operandi — The group charged RM388 for people who wanted to become members. To join “swinging” sessions, they would need to pay RM400, or RM350 if they came with a partner.

4. AROUND THE WORLD 🌎

Hamas charged, Timed pauses working, Israel sanctioned
The US Department of Justice is indicting Yahya Sinwar and five other prominent figures in Hamas with seven charges, including the murder of dozens of US citizens, conspiracy to finance terrorism, and use of weapons of mass destruction. The charges not only cover the Oct 7 attack but also decades of alleged attacks by Hamas.

Meanwhile, the main UN agency for Palestinians, the UNRWA, has praised the progress made in the Gaza polio vaccine, with 187,000 children inoculated after only three days. The campaign involves daily eight-hour pauses in fighting in pre-specified areas, with no violations reported so far. The UN Security Council, however, is asking how the two factions can agree to pause fighting to allow the polio vaccinations but cannot reach a ceasefire. Slovenia’s UN ambassador, Samuel Zbogar, believes the UNSC is losing patience, and with the 15-member body considering action soon if a ceasefire cannot be brokered.

In protesting the Israel-Hamas conflict, the Norwegian USD1.7 tril wealth fund is looking to divest shares in companies that aid Israel, marking them as violating the fund’s new interpretation of ethics standards for businesses that aid Israel’s operations, with one company already identified for divestment should the board of Norway’s central bank follow the fund’s recommendations. The UK has also suspended some arms sales to Israel, but the move has been criticised with Israeli supporters calling out the government for abandoning Israel and the pro-Palestinians saying the move wasn’t enough. Lastly, we have Greta Thunberg, who was detained, and then released, for participating in a pro-Palestinian protest in Copenhagen.

Mongolia shirks ICC duty because of oil
The Asian nation, which is a member of the International Criminal Court, failed to apprehend Russian President Vladimir Putin when he visited the country, as required by its obligations to the ICC. The explanation given was that it imports 95% of its petroleum products and over 20% of its electricity from its “immediate neighbourhood”, a supply that is “critical to ensuring our existence and that of our people”. Russia and Mongolia share a border about 3,452km long. This shirking of its obligations could see Mongolia facing legal proceedings at the ICC, which could see sanctions against it. But what were they supposed to do, exactly? Russia literally has them by the short and curlies.

Dollars and Chips

1. GoTo exits tough Vietnam

   The Indonesian ride-hailing provider will be exiting the country where it has been struggling, and instead focus on seeking profitability in its main operations in Indonesia and Singapore. Its Gojek brand will be shuttering operations in Vietnam on Sep 16, with the exit unlikely to hurt the company’s financials, accounting for less than 1% of the firm’s gross transactions in its second quarter. 

2. OpenAI co-founder's startup raises USD1 bil

   Safe Superintelligence (SSI), which has OpenAI’s former chief scientist Ilya Sutskever as a co-founder, raised USD1 bil in cash to help develop safe AI systems that surpass human capabilities, yet will not cause harm. The funds raised will go towards acquiring more computing power and hiring top talents. The company declined to share its valuation, but sources suggest it is in the vicinity of USD5 bil. Among the investors are top venture capital firms Andreessen Horowitz, Sequoia Capital, DST Global and SV Angel.

Shorts

1. Telegram apologises for handling of deepfake porn

   The tech firm has apologised to South Korean authorities for its handling of deepfake porn shared via its messaging app, days after South Korean police launched an investigation, accusing the firm of “abetting” the distribution of doctored photographs of young women. The videos have since been removed, with Telegram also more open to liaising with the South Korean authorities. If found guilty of creating sexually explicit deepfakes in South Korea, the perpetrator faces up to five years of jailtime, and fines of up to USD37,500.

2. Man who drugged wife and invited strangers to rape her now on trial

   A 71-year-old man has gone on trial for repeatedly drugging and raping his wife and arranging for 72 men to rape her for over a decade. The woman was so heavily drugged that an expert said her state was “closer to a coma than to sleep”. She only found out in 2020, when police informed her after finding videos of her being raped on the defendant’s computer. 50 of the 72 men have been identified, charged, and are standing trial alongside the defendant. Police identified at least 92 rapes committed, with the rapists ranging in age between 26 and 74.

3. Pope urges Indonesian political leaders to "guard against extremism" during visit

   During a visit to the world’s most populous Muslim-majority country, Pope Francis urged political leaders to guard against religious extremism, which “distorted people’s beliefs through deception and violence”. He also promised the political leaders that the Catholic Church will increase its efforts toward inter-religious dialogue in a bid to suppress extremism.

5. FOR YOUR EYES 📺

1. If you have been stressed by market volatility recently, then brace yourself. The last 96 years of data suggest that September is the worst month of the year for stock returns. Will it be different this time?

2. Why does time seem to go so fast as you grow older?