☕️ Deputy Speaker - first he lied, got exposed, then only apologised over the durian fiasco 'confusion'

CTOS is looking to raise RM1.2 bil. The Covid-19 Delta variant on its way to becoming the world's dominant strain. Elon Musk's Starlink requires USD20-30 bil funding to survive.

Know more, learn more. Be smarter in 3 minutes.

1. MARKET SUMMARY


2. NUMBERS AT A GLANCE

Malaysia's Producer Price Index (PPI) increased by 11.9% y-o-y in May 2021 to a new high of 111.6 index points. The growth was mainly driven by a substantial increase in primary industry products, which led to a spike in mining (68.5%) as well as agriculture, forestry and fishing (60%).

RM40.4 bil — Malaysia’s domestic tourism spending in 2020, a decrease of 60.8% as compared to the year before according to the Department of Statistics Malaysia (DOSM).

25th — the rank of Malaysia in the World Competitiveness Yearbook 2021, up two spots from the year before. The ranking by International Institute for Management Development is based on more than 330 criteria measuring different facets of competitiveness.

The delta variant of the Covid-19 virus has been identified in at least 78 countries and thought to be two or three times more transmissible than the original variant. It is fast becoming the world’s dominant strain of the Covid-19 virus. The chart below shows the percentage of the Delta variants among samples of sequenced viruses in the world.


3. COVID-19 SUMMARY

  • Despite the full lockdown, R-naught has gone up to 1.05 as of June 30, 2021, according to Health DG.

  • Students travelling abroad to further their studies can now register for early vaccination via the MySejahtera application. Meanwhile over 700k senior citizens are still waiting for their first jab. What is happening Mr KJ?

  • A whopping 91% of the total 125 active clusters are workplace-related according to Selangor MB.

  • Two mil doses of Covid-19 vaccines from Japan and the US will arrive this week — 1 mil of AZ on July 1, 2021 (today) and 1 mil of Pfizer will arrive on Friday.

  • AstraZeneca’s dosing interval will be revealed today — recommended duration is 12 weeks. The government will not be mixing Covid-19 vaccines for the time being so if you’ve gotten AZ for your first dose, you will get the same for your second dose.


4. IN MALAYSIA 🇲🇾

  1. If a media statement via PDF was released, it must have been important so we have to report it as we are people with integrity — Prime Minister Tan Sri Muhyiddin Yassin was admitted to the hospital on Tuesday night for diarrhoea. We wish the PM a speedy recovery and hope he doesn’t visit social media for the next few days. New excuse to skip work next time but you probably won’t need a PDF to do it.

  2. CTOS Digital Bhd is looking to raise RM1.2 billion via its initial public offering on Main Market at the offer price of RM1.10 per share. Based on its IPO price, CTOS is valued at RM2.4 bil which is 63 times its P/E ratio based on FY20’s net profit of RM37.98 mil. Application for the IPO opened yesterday and closes on July 6, 2021, and the listing is expected to happen on July 19, 2021.

  3. The final straw — Yang di-Pertuan Agong has decreed that parliamentary sittings should reconvene before Aug 1, 2021, according to Dewan Negara President Tan Sri Dr Rais Yatim and Dewan Rakyat Speaker Datuk Azhar Azizan Harun.

  4. A report by rights group Finnwatch alleges IOI Corporation Bhd has been mistreating workers at its palm oil estate in central Pahang state, ranging from physical abuse to poor living conditions. Finnwatch has been tracking working conditions at IOI Corp since 2014. The group is also a supplier to consumer giants including Nestle and Unilever.

  5. Dewan Rakyat Deputy Speaker Datuk Mohd Rashid Hasnon got caught lying about his durian party that happened on June 27, 2021, and subsequently apologised for breaching SOP.

    Netizens searched for pieces of evidence that it happened this year instead of last year as first claimed by the deputy speaker’s aide. One obvious hint — someone wore a 2020/2021 Liverpool jersey with a Nike logo. The previous season’s Liverpool jersey was sponsored by New Balance. Netizens are way more efficient in investigating than PDRM.

News in brief:

  1. SISM40 is an internet subsidy scheme that provides a discount of RM10 to RM30 for 12 months by the Selangor state government will be available for M40 group in Selangor. The registration begins today.

  2. The moratorium of the RM150 bil PEMULIH package will not be interest-free. Finance Minister Tengku Datuk Seri Zafrul Aziz has clarified that the banks will waive the compounded interest or the interest charged on interest accrued during the six-month moratorium period, as well as any penalty charges.

  3. Datuk Seri Najib Razak’s 1Malaysia Development Bhd (1MDB) case will resume in the High Court on July 5, 2021, after being postponed due to FMCO. To recap, Najib is facing four charges of abuse of power to obtain bribes totalling RM2.3 bil from 1MDB funds and 21 charges of money laundering involving the same amount.


5. AROUND THE WORLD 🌎

  1. Chinese ride-hailing giant Didi Global raised USD4.4 bil after pricing its stock at the top end of its indicated range bringing its valuation to USD67.5 bil on a non-diluted basis, and USD73 bil on a diluted basis after factoring for restricted stock units. Its valuation trails Uber’s USD95 bil market cap and ahead of Lyft’s USD20 bil.

    This listing will be the largest US share sale by a Chinese company since Alibaba raised USD25 bil in 2014. Didi counts Uber, Softbank and Tencent as its main backers. Didi’s IPO roadshow last just 3 business days, making it one of the shortest investor pitches for an IPO in recent times. This also largely due to ⅓ of its IPO allocation having been taken up in advance by Morgan Stanley and Temasek. 

  2. Starlink, the satellite internet service by Elon Musk’s SpaceX, could be available globally a month earlier than planned in August providing high-speed broadband around the world, according to Elon Musk during his virtual interview at the Mobile World Congress in Barcelona. It has more than 69,000 customers signing up so far, and is expected to exceed 500,000 in the coming 12 months. 

    Currently, with almost 1,500 satellites in orbit, Elon Musk said Starlink business costs were estimated between USD20 - 30 bil and would need this much funding to survive. He also announced that Starlink has signed partnerships with 2 “major country telcos” but did not reveal the names. Very interesting to see how each nation’s communication regulators and internet service providers will react to Starlink’s availability. 

  3. Myanmar military government plan to release about 2,000 people, mostly political detainees from jails across the country, as state television said the generals were dropping charges against actors and celebrities who took part in the anti-coup protests with at least 700 prisoners to be released from Yangon’s Insein jail though it was not specified who would be released. The military has warned foreign media not to refer to it as ‘“junta”, “military junta” or “military council” as its actions are provided by the constitution. 

    News in Brief:

  4. Zoom, the video conferencing giant, has announced that it will acquire Karlsruhe Information Technology Solutions or Kites for short, to bring machine-learning-based translation to its platform. In other words, expect real-time translation in future video calls. 

  5. US banks are expected to hand out as much as USD130 bil dividends and stock buybacks from next month after the US Federal Reserve “stress tests” last week and the Fed ending the emergency pandemic-era restrictions on how much capital the banks can return to investors. 

  6. CNBC aired a special, “Buffett & Munger: A Wealth of Wisdom” where the duo reflected on their friendship, criticized Robinhood and discussed the Archegos fiasco. 


6. FOR YOUR VIEWING PLEASURE 👁👁 (Beta Mode)

  1. We have featured many of Fahmi Rehza’s political artwork in our newsletter. Watch his interview below with Vice on his experience ‘fighting’ the government using art and creative.

  2. Needle-less alternative to traditional stitches.

  3. Ever wondered how tower cranes build themselves?