☕️ Top Glove: Formerly Malaysia's 2nd Most Valuable Company. Currently, Malaysia's Most Hated Company?
1,067 new Covid-19 cases from Teratai Cluster (linked to Top Glove). Is GST making its come back? In the future, you might need a vaccination proof alongside your passport to fly.
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1. NUMBERS AT A GLANCE
204 tourism and hotel operators have closed their business this year due to Covid-19.
1,067 of new Covid-19 cases at Top Glove’s factories in Klang with 28 of 41 factories or 70% it has in Malaysia are slated to be shut down progressively. Nearly 1 in 2, or 43.8% of those tested turned out to be positive.
650,000 items were sold within the first hour by Shopee during 11:11, powered mainly by major states like Selangor, Kuala Lumpur and Johor.
2. COVID-19 SUMMARY
3. IN MALAYSIA
Malaysia sets another record with 1,884 new Covid-19 cases. Slightly more than half of these cases are attributed to Teratai (Top Glove) cluster. Top Glove is currently trending on Twitter (22.3k tweets), almost entirely criticising Top Glove for their alleged mistreatment and exploitation of their foreign workers (ie. cramped living quarters) which further exposes them to higher risk of infection. In July, Channel 4 News, a UK-based TV station released an investigative documentary on this issue.
Compounding this negative sentiment further is Top Glove’s aggressive buyback of its shares. On the very same day Malaysia set a record case, Top Glove exceeded RM1 billion in cumulative share buybacks since September. Questions are arising whether these funds could have been better spent in ensuring the health and safety of its workers or creating a better living environment for them, instead of supporting and propping up its share price to achieve Tan Sri Lim Wee Chai, Top Glove founder’s dream of becoming the most valuable company in Malaysia. At one point, there were the 2nd largest listed company on Bursa, closing in on Maybank, the most valuable listed company in Malaysia. Syed Saddiq, former minister, enraged by this situation, has even called for a windfall tax of RM4.8 billion (not too sure how he derived this) to be imposed on glove makers to help the nation in current times.
KKMalaysia🇲🇾 @KKMPutrajayaKes di Lembah Klang melonjak hari ini berpunca daripada kluster di tempat kerja iaitu Kluster Teratai (1,067), Kluster Damanlela (105) dan Kluster baharu, Kluster Bintang (75).
You might want to delay your travel plans as government is considering extending CMCO until end of the year.
One of the world’s largest condom manufacturers, Karex Bhd posts profitable Q1FY21 with net profit of RM4.46 million compared to a net loss of RM167K a year earlier.
The Finance Ministry has set up a committee to find ways to enhance revenue and the good ol’ Goods and Services Tax might make a comeback, according to Maybank Investment Bank Research. In case you’ve forgotten, here’s a throwback - GST Song. IRB CEO suggested for capital gains tax to be introduced.
Sime Darby Plantation Bhd posted a net profit of RM190million for 3QFY20 ended Sept 30, 2020 compared to a net loss of RM243 million a year earlier driven mainly by higher crude palm oil.
72 police reports and 28 investigation papers later, the police has crippled the culprits behind bogus investment scheme, involving losses of about RM20.52 mil. Remember, if it’s too good to be true - it probably is!
Glove manufacturers in Malaysia are projected to pay RM2.8 billion and RM4.7 billion of income tax in 2020 and 2021 respectively, excluding the voluntary RM400 million contribution announced last month.
4. AROUND THE WORLD
No vaccine, no fly. Australia’s Qantas plans to impose for passengers to be vaccinated on international flights before boarding its planes when the vaccines are available.
China’s Realme has shipped 50 million phones across the world. Have not heard of them? It’s another brand by BBK Group that also owns Oppo, OnePlus and Vivo. Operating independently allows it to have a unique asset light model by leverage on Oppo’s supply chain which translates to cheaper prices that sells well in India.
Indonesia exceeded 500,000 Covid-19 cases and 16,000 deaths. It’s recording an average of 4,000 new daily cases. The increasing cases is straining hospitals with occupancy of hospital beds exceeding 70%.
Evergrande Group, China’s larget and most indebted property developer, is getting a cash infusion of USD4.6 billion from state-linked companies, averting a liquidity crisis.
As at Sep 2020, Evergrande’s debt stood at a massive USD122.4 billion. It’s also spinning off a unit for an IPO to raise an additional USD2.04 billion to further pare down its debt. It’s a long, long way more to deleverage.
AstraZeneca and Oxford University announced that their Covid-19 vaccine ‘may be around 90% effective’ based on trials involving more than 23,000 participants.
5. MARKET SUMMARY
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