☕️ 'Ultra-Millionaire' Tax Act proposed in US to tax ultra high net worth individuals (UHNWI)
GSC to buy MBO (on a bargain). China added 259 billionaires in 2020. Want to travel the world during this lockdown? Be at least a Malaysian deputy minister.
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1. MARKET SUMMARY
2. NUMBERS AT A GLANCE
77% of people surveyed (n = 1,300) believe Robinhood’s restriction of “meme stocks” was market manipulation.
RM27.65 billion of market capitalisation got wiped off from the big four glove manufacturers in Malaysia.
USD132,000 worth of shoes were bought by the son of a top Nike executive, which the former resold for profit that led to her resignation.
3. COVID-19 SUMMARY
4. IN MALAYSIA 🇲🇾
National Film Development Corporation Malaysia (Finas) allows for filming activities as well as operation of cinemas in CMCO and RMCO states with adherence to SOP compliance.
Golden Screen Cinemas (GSC) is acquiring the majority of cinema assets from MCAT Box Office Sdn Bhd and Reel Entertainment Holdings Sdn Bhd which are the operators of MBO chain of cinemas. The operators are currently undergoing creditors’ voluntary winding-up.
Tenaga Nasional Berhad (TNB) will be supplying clean electricity to Singapore via a joint-venture with a solar firm, Sunseap Group from Singapore. The partnership will see expert of 100MW of electricity generated from renewable energy sources.
UWC Bhd’s net profit more than doubled to RM27.24 million for 2QFY21 ended Jan 31, 2021, compared to RM13.31 million in the previous year’s corresponding quarter. The strong global demand for semiconductor is the main contributor to the rise in net profit.
Boustead Properties Bhd (BPB) which operates the eCurve shopping mall said the mall will undergo redevelopment as the group wide’s aspiration of ‘Reinventing Boustead’.
Deputy Federal Territories Minister DS Dr Edmund Santhara Kumar was on a 55-day leave to visit his family in New Zealand during the Covid-19 pandemic. Not sure what’s the leave entitlement a Member of Parliament gets in Malaysia but two months sounds a bit far fetched.
5. AROUND THE WORLD 🌎
US Democrats have proposed a new tax, aptly named ‘Ultra-Millionaire Tax Act’ that will be imposed on households with net worth of more than USD50 mil. 0.05% of households or about 100,000 households will be affected by this tax with a 2% tax on household net worth between USD50 mil to USD1 bil, and a 3% tax on household net worth over USD1 bil. The tax would bring in USD3 tril in revenue over 10 years. The tax bill has anti-evasion measures in place, knowing how creative the ultra rich can get with their taxes.
South Korea is heading towards a hydrogen-powered economy. SK Group, the 3rd largest South Korean conglomerate after Samsung and Hyundai, announced that it will invest 18.5 tril won (USD16.5 bil) over the next 5 years to establish a domestic hydrogen energy industry. A third of this, 5.3 tril won will be invested by 2025 to build the world’s largest clean hydrogen production base in South Korea that is capable of producing 250,000 tonnes of eco-friendly hydrogen annually from natural gas while removing carbon dioxide.
South Korea has announced in 2019 its plan to produce 6.2 mil hydrogen powered vehicles by 2040 and set up 1,200 hydrogen fuelling stations.
Despite the pandemic, China added 259 billionaires last year as the booming stock market and new listings offset the impact of the coronavirus according to Hurun Global Rich List. This is more than the rest of the world combined. The US added 70 new billionaires last year. Topping the list in China is Zhong Shanshan, the founder of bottled water giant Nongfu, who entered the list for the first time after a USD1.1 bil IPO in Hong Kong last year with a fortune of USD85 billion, making him the richest in Asia and top 10 in the world.
Some key findings from Hurun Global Rich List 2021:
1/ There are 3,228 billionaires in the world - +414 from last year, +1,039 (47%) from 5 years ago.
2/ 161 individuals added at least USD5 bil to their wealth last year.
3/ 121 are 40 or younger, of which 77 are self-made and 44 inherited.
4/ 231 self-made women billionaires, up from 51 last year.
5/ 17 billionaires from the cryptocurrency industry.
The Covid-19 vaccine is said to be the end of ‘work from home’ investment theme. For Zoom, although its stock price has fallen by 18% since the first breakthrough of the vaccine in November, its underlying business is still holding up with revenue surging 4x from the same corresponding period a year earlier to USD882.5 mil.
This is its 3rd consecutive quarter of 300% growth on an on-year basis. Net income rose to USD260.4 mil from USD15.3 mil compared to a year earlier. Zoom has also guided a growth of 42-42% for its 2022 financial year ending Jan 2022. Importantly, its number of customers that are paying more than USD100,000 a year jumped 156% year-on-year as these are the kind of customers that are more like to stick around in the post-pandemic era.
It’s still too early to let our guards down - new Covid-19 cases rose for the first time in 7 weeks according to WHO. WHO’s Director General, Tedros Adhanom Ghebreyesus, said the rise in cases was ‘disappointing but not surprising’ and urged nations not to relax their measures to fight the coronavirus.
Volvo Cars announced that it will become a ‘fully electric car company’ by 2030 with all sales of its pure electric car to move online. The Chinese-owned automotive company launched its first all-electric car last year and by 2025, it aims to have half its global sales from fully electric cars with the balance coming from hybrid. Full EV coming to Proton? Volvo and Proton share the same parent company, Geely.
‘There’s no long-term future for cars with an internal combustion engine’
- Henrik Green, Chief Technology Officer, Volvo Cars
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