☕️ Klang Valley 2021 Annual Water Cuts begins tomorrow, 13 Oct @ 0900

Analysts stock picks for recovery theme play. Former DPM Zahid Hamidi passport release for medical travel. A required feature in Chinese cars - karaoke system.

1. MARKET SUMMARY


2. NUMBERS AT A GLANCE

500 — the number of psychiatrists in Malaysia, which means one psychiatrist for every 100,000 people. According to health director-general Dr Noor Hisham Abdullah. The figure is below the World Health Organisation’s (WHO) recommendation of one psychiatrist for 10,000 people.

27 petawatt-hours — 27 quadrillion watt-hours could be generated each year from 0.2 million square kilometres of rooftop area using solar panels, according to researchers at Ireland’s University College Cork. For comparison, our total electricity use in all homes around the world was 6 PWh in 2019.

70 litres of applied fresh ground or surface water are required to grow ONE avocado. According to World Health Organisation, human beings on average require between 50 to 100 litres of water to meet their most basic daily needs.


3. COVID-19 SUMMARY


4. IN MALAYSIA 🇲🇾

Politics and Local

  1. Johor Bahru Magistrate's Court acquitted and discharged Sam Ke Ting, 26, of reckless driving, which resulted in the death of eight teenagers on modified bicycles four years ago after the prosecution failed to prove its case beyond reasonable doubt the end of the defence's case.

    Attorney-General Tan Sri Idrus Harun said the Attorney General's Chambers would file an appeal against the acquittal.

    Sounds like a potential episode for Malcolm Gladwell’s Revisionist History.

    Do you agree with the appeal? Take the poll on our twitter!

  2. Kuala Lumpur High Court has granted Datuk Seri Dr Ahmad Zahid’s application for his passport to be released for him to travel to Munich, Germany, for medical treatment. He is scheduled to return on Nov 21, 2021.

  3. The Malaysian Highway Authority (LLM) has directed all highway operators to not schedule maintenance work and road closures during the holiday or weekend rush, especially on major interstate expressways. In addition, all the rest and recreational areas (R&R) are also told to prepare for the crowds and maintain proper SOPs.

  4. UMNO veteran Puad Zarkashi asked why is the government afraid of former Youth and Sports Minister and Muda president Syed Saddiq Syed Abdul Rahman. Zarkashi said Muda should be approved as a political party.

PSA — Gentle reminder to Klang Valley folks, the water cuts would begin tomorrow — at 9am on 13 Oct and are expected to last until 9pm on Oct 16. 84 hours only. Check the affected areas here.

A post shared by MGAG (@mgagmy)

Business

  1. The Dewan Rakyat passed the bill to amend the National Trust Fund (KWAN) Act 1988 and the motion to increase the statutory debt ceiling from 60% to 65% of the Gross Domestic Product (GDP).

    Finance Minister Tengku Zafrul Abdul Aziz said the National Trust Fund (KWAN) Act’s amendment would allow the government to take RM5 billion from KWAN to buy Covid-19 vaccines. He added the government would work to replenish the KWAN funds once the economy fully recovers.

    On the statutory debt ceiling, the finance minister said it was required to fund additional spending for the Kumpulan Wang Covid-19 (KWC) and the 12th Malaysian Plan (12MP) projects.

  2. Solarvest Holdings Bhd’s group chief executive officer (CEO) Davis Chong Chun Shiong thinks there will be no more incentives being planned by the government for the current solar industry under Budget 2022. However, Chong foresees other areas related to solar energy, such as battery storage technology, may benefit from the upcoming budget.

    The company has also launched Solarvest Innovation Lab 2021 (SIL 2021), a startup programme to spur innovation and entrepreneurship developments in Malaysia on renewable energy, green technology, and financial technology. The purpose of SIL 2021 is to create an ecosystem where both Solarvest and the startups could form a symbiotic relationship.

  3. Electronics manufacturing solutions (EMS) provider Cnergenz Bhd is seeking a listing on the ACE Market of Bursa Malaysia. The EMS provider is looking to offer 100 million new shares to the investing public in its initial public offering (IPO), mainly to fund the expansion of its facilities. For its FY20 ended Dec 31, 2020, Cnergenz registered a net profit of RM16.07 million.

  4. Our favourite minister, Datuk Seri Dr Adham Baba, said the Ministry of Science, Technology and Innovation (Mosti) is developing a Startup Development Roadmap with the target of creating 5,000 companies, including five unicorn startups by 2025. Mosti is also setting up a comprehensive platform known as MyStartup by the end of the year to boost the development of startups in Malaysia.

  5. Analysts have picked up the below stocks for recovery theme play:

    • Genting Bhd and Genting Malaysia Bhd

    • Malaysia Airports Holdings Bhd (MAHB)

    • IGB Real Estate Investment Trust (IGB REIT)

    • Tasco Bhd

    • Carlsberg Brewery Malaysia Bhd

    • Heineken Malaysia Bhd

    • Perak Transit Bhd

    • 7-Eleven Malaysia Holdings Bhd

    • Banks

    As for our own, we hold a considerable chunk of Tune Protect Group Bhd (Disclaimer: Not Financial Advice).


5. AROUND THE WORLD 🌎

  1. What do Chinese (as in, mainland Chinese) people look for in a car? A karaoke system. Customers in the world’s biggest auto market are demanding that sing-along apps such as Changba work in new vehicles. Local manufacturers XPeng, Nio and BYD are at the forefront of this trend by offering models with karaoke microphones, with Western rivals lagging behind.

    Christoph Grote, BMW’s digital car chief, said it has “identified this as a challenge”. China is the biggest market for BMW as well as Volkswagen, accounting for 36% and 40% of sales respectively. Western manufacturers are lagging behind in integrating the Chinese digital ecosystem into their cars. 

  2. CVC Capital Partners is to acquire Try Group, a Tokyo-based online tutoring service for JPY110 bil (USD976 mil). The move comes as online tutoring is growing in popularity due to the Covid-19 pandemic. 

    Try Group provides on-site lessons and tutoring services and maintains 1,100 locations across Japan. It has more than 200,000 tutors on its roster, accounting for 10% of the market and making it the biggest operator in Japan. Its revenue has been growing steadily over the years with a JPY50 bil (USD450 mil) reported revenue in the year ended in May and also the most profitable in the industry with EBITDA exceeding JPY8 bil (USD72 mil). 

  3. Nicholas Chaillan, a senior cybersecurity official at the Pentagon who joined the US Air Force as its first chief software officer said he quit because he thinks it is impossible for the US to compete with China on AI and over his growing frustration about the Pentagon’s reluctance to commit to cybersecurity. 

    In his interview with the FT, he said there is “no competing fighting chance against China in 15 to 20 years” and “it’s already a done deal”. He added that the AI capabilities and cyber defences of some government departments were at “kindergarten level”.  Read his departing post on Linkedin here

    News in Brief:

  4. Kim Kuk Song, a North Korean spy chief who defected to South Korea, told the BBC that he helped build a crystal meth lab to raise funds for the regime under the order of Supreme Leader Kim Jong Il. The use of crystal meth now is rife in North Korea, as people use it casually as cigarettes and to combat hunger. 

  5. Another Chinese developer, Sinic Holdings, said that it would likely default on bonds worth USD250 mil, which is coming due on Oct 18. It has a total liabilities of USD1.08 bil under offshore financing arrangements. 

  6. In light of recent expose that Facebook and Instagram have been harmful to youth’s wellbeing, Facebook said it will introduce features to nudge teenagers from viewing content that are not conducive to their well-being and also a ‘take a break’ feature from using Instagram


6. FOR YOUR VIEWING PLEASURE 👁👁

  1. If you’re a fan of Adele, listen to this unplugged performance of hers. Her voice is amazing!

  2. A drone’s view flying around inside a volcano

  3. James Bond is one of the highest-grossing film franchises in history. Over 60 years and 24 films, it has grossed more than USD6.89 bil globally.