☕️ EPF: Malaysian retirement security very concerning - 46% of members below 55 having less than RM10k in account

Malaysia ranks 36th on the Global Innovation Index. North Korea open to discuss with South Korea to end the decades-long Korean War. UK's USD21.9 bil 3,800 km subsea megaproject from Morocco.

1. MARKET SUMMARY


2. NUMBERS AT A GLANCE

As measured by the Consumer Price Index (CPI), Malaysia's inflation rate increased 2% in August 2021 compared to a year ago due to the 2020 base effect. The August 2021 reading also included a rise in CPI components, including the transport besides the food and non-alcoholic beverages segments. This is more than your annual FD rate - in other words, your money is shrinking and losing purchasing power relative to inflation.

96% of Malaysia has 4G network coverage, according to Deputy Communications and Multimedia Minister Datuk Zahidi Zainul Abidin. He added the 3G network coverage in the country will be shut down by the end of the year.

RM14.77 billion — the gross income of the Employees Provident Fund (EPF) for Q2 2021, 2.31% lower than the corresponding period last year. In the same press release of its first-half results, EPF released a few staggering pieces of information.

Only 27% of its members met the Basic Savings threshold (RM240,000 at age 55), a significant drop from 36%. However, even 36% is a low number and RM240,000 is barely comfortable.

46% of its members below the age of 55 have RM10,000 or below in their accounts.


3. COVID-19 SUMMARY


4. IN MALAYSIA 🇲🇾

Politics and Local

  1. Good luck getting old in Malaysia as soon you may not be allowed to drive as Royal Malaysia Police (PDRM) has proposed that the government limit the issuance of Motor Vehicle Licences (LKM) to senior citizens. Under the proposal, senior citizens need to undergo a medical check-up and get doctor’s approval confirming they are fit to drive.

    Transport Minister Datuk Seri Dr Wee Ka Siong were quick to put out this fire by saying withdrawing or limiting a valid licence issued to individuals based on their age should be a last resort. Meanwhile, IGP Datuk Seri Acryl Sani Abdullah Sani said the proposal has yet to be discussed in detail. The “proposal” was Bukit Aman Traffic Investigation and Enforcement Department (JSPT) director Datuk Azisman Alias’s personal opinion.

    Kelam kabut.

  2. Prime Minister Datuk Seri Ismail Sabri Yaakob pitched his “Keluarga Malaysia” idea at the 76th Session of the United Nations General Assembly (UNGA) in a pre-recorded video — rebranded to “The World is a Family.” He highlighted how the Malaysian Family would work together with the “world family” to manage, overcome and recover from the Covid-19 pandemic.

    Uh, no thanks. I think the members would politely reject your offer. He was chairing the National Security Council and look what happened to the country.

  3. Malaysian Year Five student Maryam Musamir's recent innovation — creating livestock feed from crustacean shells — was the talk of the town after it was highlighted by The Late Late Show with James Corden. 11-year old Maryam bagged three international awards for her breakthrough invention.

    However, Twitter user @BentaraNikA who resides in Toronto (where the entities’ are located), found suspicious information about these entities. TLDR — these entities are not widely recognised and likely shell companies. No matter what, we should still be very proud of Maryam’s achievements and efforts!

  4. UMNO Youth chief Asyraf Wajdi Dusuki who was championing EPF to allow members to withdraw funds for emergency during the Covid-19 pandemic is now striking a cautionary note. After seeing 46% of members below the age of 55 having RM10,000 or less in their EPF account, Asyraf mentioned these members could only survive for three years after retirement.

    UMNO information chief Shahril Hamdan now proposes a social pension scheme to secure the people’s finances in the future.

    When would they understand we cannot use short-term solutions to solve a long-term problem?

Business

  1. Electronics manufacturing services (EMS) provider VS Industry Bhd (VS) delivered a record-high net profit for the financial year ended July 31, 2021 (FY21), with a net profit of RM245.3 mil vs RM116.5 mil in FY20.

    For its 4QFY21, VS attributed the fall in net profit to RM41.48 mil from RM54.73 mil a year ago because of a one-off (non-cash) impairment on the investment in associate amounting to RM25 mil.

  2. Malaysia ranks 36th globally on the Global Innovation Index, published annually by World Intellectual Property Organization. The country has been hovering close to the top 30 for the past 11 years but never reached the mark. The report highlights the government needs to strengthen a few items to move up the rankings.

    • Make it easier to start a business.

    • Availment of microfinancing.

    • Grooming of talent.

    • Increasing originality in creatives outputs.

  3. Malaysian-based Aerodyne ranked No.1 in the Remote-Sensing Drone Service Provider rankings by Drone Industry Insights (DRONEII) for the first time this year. Can Aerodyne potentially become Malaysia’s next unicorn?

  4. Veteran trader Dorab Mistry expects palm oil futures to stay strong until March on the increase in export levies by top grower Indonesia. Mistry, director at Godrej International Ltd, said at the Globoil conference on Saturday the most-used vegetable oil is expected to trade between RM4,000 to RM4,400 per ton during the October-February period.


5. AROUND THE WORLD 🌎

  1. Disney-owned Marvel is suing former comic-book artists to keep control of the rights over the classic characters, including Iron Man, Thor and Spider-Man. The suit was filed against Larry Lieber and the estates of Stan Lee, Steve Ditko, Don Heck, Don Rico and Gene Colan — the co-creators over the popular Marvel characters. 

    This development came about after the artists’ relative sent a termination notice to reclaim part of the rights to several characters, of which Marvel claims it holds full ownership. These creations were made when the artists were working on a “for hire” basis, meaning they couldn’t reclaim rights to them under the Copyright Act. 

  2. Kim Yo-jong, the sister of North Korean leader Kim Jong-un, says the hermit nation is willing to resume talks with South Korea if it ends its “hostile policies” after a renewed call from the South to declare an end to the Korean War officially. The conflict split the peninsular into 2, ending in 1953 with an armistice, not a peace treaty, meaning the countries are technically still engaged in the war that divided the peninsula into two countries seven decades ago.

    “What needs to be dropped is the double-dealing attitudes, illogical prejudice, bad habits and hostile stand of justifying their own acts while faulting our just exercise of the right to self-defence.”

    - Kim Yo-jong

  3. Xlinks is planning to build the world’s longest power link bringing extra supplies to Britain from renewable resources in Morocco. Estimated to cost USD21.9 bil, the subsea project will cover a distance of 3,800 km and take power from 10.5 gigawatts of large-scale solar and wind farms in Morocco.

    This power link, known as an interconnector, would only supply Britain and reduce its dependency on natural gas. The link could provide 7 mil British homes. The company plans to start laying cable in 2025 and complete it by 2029. 

  4. Ninja Van, the Singapore-based logistic startup, has raised USD578 mil in a Series E round, adding Alibaba as its new investor. The valuation was not disclosed, but the new funding round will help lift the company’s valuation to well beyond USD1 bil, according to people familiar with the matter. Founded in  2014, Ninja Van operates in 6 markets in Southeast Asia and delivers close to 2 mil parcels a day.


6. FOR YOUR VIEWING PLEASURE 👁👁

  1. Jetman Yves Rossi flying with a jetpack beside an airplane.

  2. Dress code - literally.

  3. Start walking more after watching this.