☕️ Malaysia’s richest 10% controls 31.3% of the economic income
Movie buffs rejoice as cinemas will operate beginning Sept 9 to fully vaxxed individuals. Shopee's aggressive expansion continues into Europe. How retail giants like Starbucks, Ikea got their names.
1. MARKET SUMMARY
2. NUMBERS AT A GLANCE
USD1,012,500 — the price of Elvis Presley’s iconic Eyelet Jumpsuit and Cape from his 1972 Madison Square Garden performances, sold at an auction in New York.
USD94 million — the ticket sales of Marvel’s Shang-Chi and the Legend of the Ten Rings in its first four days of release in the US, setting a new record for the Labor Day holiday weekend.
USD249.6 million — the size of the medical cannabis market in Mexico by 2025, according to an analysis by US-based consultancy Grand View Research.
Malaysia’s richest 10% controls 31.3% of the economic income, according to United Nations Human Development Report. The richest 1% controls 14.6%!
3. COVID-19 SUMMARY
UPDATED SOP: The entertainment industry will be reopened to fully vaccinated Malaysians in Phase 1 states beginning Sep 9, 2021. Cinemas will operate at 50% capacity limit.
Malaysian adults in Penang without a prior vaccination appointment can walk into any of the 10 Covid-19 vaccination centres to get their jabs beginning today.
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In collaboration with Stockbit.
4. IN MALAYSIA 🇲🇾
Politics and Local
Former deputy prime minister Datuk Seri Ahmad Zahid Hamidi’s lawyer Mohd Noh argued his client cannot be held legally responsible for the use of RM1.3 mil of charitable foundation Yayasan Akalbudi’s funds to pay for the credit card bills of his and his wife between 2014 and 2016.
Why? Because it was Zahid’s former executive secretary Major Mazlina Mazlan @ Ramly who stamped Zahid’s signature onto the cheques without his approval or knowledge. Zahid’s lawyer is blaming Mazlina. Well, did Zahid try to at least return the funds back to Yayasan Akalbudi? 🤷♂️
De facto Law Minister Datuk Seri Wan Junaidi Tuanku Jaafar said Yang di-Pertuan Agong gave his consent for Prime Minister Datuk Seri Ismail Sabri Yaakob to skip a confidence vote in Parliament. Will we see a PDF from Istana Negara on this matter?
The approval of Malaysia’s Budget 2022 will be a key proxy of the highly sought after confidence vote.
Former education minister Mazlee Malik resigned over the issue of contract extension of 1BestariNet, involving YTL Communications Sdn Bhd in his newly released book titled “Memori Bukan Memoir.” Mazlee claimed he was called five times to meet Mahathir over the matter. Muhyiddin Yassin initiated the project in 2011 when he was the education minister. We’ll let you put the pieces together.
International Trade and Industry Minister Mohamed Azmin Ali said the government will start treating Covid-19 as an endemic disease around the end of October.
In Budget 2022, the government will look specifically into job and income recovery, as well as strengthening social protection through focused assistance, in an effort to build socio-economic resilience. The budget will support the government’s longer-term aspirations outlined in the 12th Malaysia Plan and the Shared Prosperity Vision 2030.
Despite the resurgence of Covid-19 due to the highly contagious Delta variant, Hartalega Holdings Bhd has not seen a spike in rubber glove orders as customers rather deplete their high-price inventories. Hartalega’s CEO Kuan Mun Leong believes the orders will return once average selling prices (ASPs) normalises and could creep back up in terms of volume towards the end of the year.
The CEO also expects Harta’s ASP to normalise by 1Q22 and the floor price of gloves will not return to pre-pandemic levels.
Semiconductor test equipment maker, UWC Bhd ended FY21 with a bang as its 4QFY21 ended July 31, 2021, recorded a net profit of RM19.55 mil, 4.83% higher QoQ. This brings the full-year profit to RM91.54 mil, up 58.47% YoY. The group declared an interim dividend of 1.67 sen, to be paid on Oct 8. UWC Bhd remains optimistic about the upcoming quarters, driven by increasing enquiries from existing and potential customers.
If you’re a Celcom user, you may be able to enjoy 5G by the end of the year — provided you have a 5G phone. The mobile network operator is technically ready and prepared to roll out as soon as the network is available. Celcom Axiata Bhd typically spends RM1 bil per year on capex, with the majority being spent on network amounting to RM344 mil year-to-date (YTD).
The Social Security Organisation (SOCSO) becomes a major shareholder in Berjaya Food Bhd's (BFood) with a stake of 5.03% after it acquired a total of 16 mil shares of BFood on Sept 2 via married and direct deals. BFood’s FY21 net profit was its strongest performance since FY2015 when it reported a net profit of RM177.57 mil.
5. AROUND THE WORLD 🌎
Legendary investor George Soros has criticized BlackRock, the largest asset manager in the world, for pushing heavily into China, calling it a “tragic mistake”. BlackRock has major ambitions in the world’s second-largest economy and was recently approved as China’s first foreign-owned mutual fund firm. The firm last month called for investors to increase their China exposure by 3x.
BlackRock’s optimism came during a time when China is cracking down on its biggest private companies that has spooked foreign investors, causing both US-listed and Chinese-domestic stocks to plunge. In Soros’ WSJ opinion article, he wrote that Chinese companies are “instruments of the one-party state” under the leadership of Chinese President Xi Jinping, making them risky investments.
“Pouring billions of dollars into China now is a tragic mistake. It is likely to lose money for BlackRock’s clients and, more important, will damage the national security interests of the US and other democracies.”
- George Soros
Europe’s largest budget carrier, Ryanair, announced that it has ended the discussion with Boeing over a purchase of 737 Max 10 jets worth USD33 bil for up to 250 of these jets. After months of negotiation, both Ryanair and Boeing could not agree on the price differences. Ryanair is one of Boeing’s largest customers. Despite losing this order, it scored another win recently with a series of orders including 150 Max 10 from United Airlines.
Sea Ltd’s Shopee is spreading its wings further. After its expansion In Latin America, Shopee is preparing to launch in Poland, its first foothold in Europe according to 2 company sources. Reuters reported last week that Shopee is concurrently preparing to launch in India. Market research firm Euromonitor estimated the Polish e-commerce market. Shopee is crossing paths with Amazon!
Indonesia’s online travel giant Traveloka has ended talks with Bridgetown Holdings the blank-cheque company of Richard Li and Peter Thiel as the enthusiasm of the SPAC market has waned and would instead seek to explore going public via a traditional IPO in the US. Should the deal go through, it would value Traveloka at USD5 bil.
Singapore has deployed 2 robots to patrol the streets in Tao Payoh looking for “undesirable social behaviours”. The 2 robots, called “Xavier”, have cameras that give them a 360-degree vision field, and will identify people smoking in public, flouting Covid-19 rules or illegally hawking using AI video analytics software.
Upon detecting the above behaviours, it will alert the command and control centre and public officers can then “activate additional resources to respond to on-ground situation when necessary.”
Tinder owner Match Group surged as much as 15% after it was selected by the S&P Dow Jones Indices to be added to the S&P500. Match Group, a spin-off from IAC in Jul 2020, operates a number of online dating app brands including Tinder, Hinger, and OkCupid. It will swap place with Perrigo Company effective Sep 20. Match Group has a market cap of USD43.8 bil and saw its Q2 revenue surging 27% YoY to USD708 mil.
Ever wondered how retail giants like Starbucks, Amazon, Spotify, and Ikea got their names? Here’s how.
6. FOR YOUR VIEWING PLEASURE 👁👁
The enormous amount of weaponry the US left behind in Afghanistan to the Taliban.
What does being shot actually feel like?