☕️ Malaysia Airlines is in trouble, again.
Malaysia Airlines looking for another bailout from Khazanah of RM2.1 billion. A RM4k salary job that gets you a Rolls Royce. Get Warren Buffett to teach your kids money skills.
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1. NUMBERS AT A GLANCE
259,000ha has been gazetted by Pahang as a water catchment area.
$1,000,000,000,000 : Net worth of billionaires rose USD1 trillion from March 2020 and November 2020. You could spend USD1mil DAILY for nearly 3,000 years. Billionaires’ wealth is exploding whilst their workers are economically impacted by the pandemic.
16 billion transistors: Apple’s new M1 chip that powers the new MacBook Air and MacBook Pro.
2. COVID-19 SUMMARY
3. IN MALAYSIA
Malaysia Airlines has sought financial aid of RM2.1 billion from Khazanah to assist with its debt restructuring talks with creditors. 6 years ago, RM6 billion was handed out into MAS, now considered incinerated. Is MAS recovery plan a perpetual plan? Is their business model monetising taxpayers’ money instead of selling air tickets?
How do you own a Rolls Royce, Mustang, Range Rover and Audi? It’s not the pay, it’s the job. Malaysian Anti-Corruption Commission (MACC) seized these cars from an immigration officer with KP19 grade, which salary ranges from RM1,360 to RM4,052 that is involved in an immigration syndicate of trafficking human.
When times are tough, no one is spared. Taxman is watching all of us. Inland Revenue board has hit Maxis Broadband Sdn Bhd with an RM140 million tax bill.
The Employees Provident Fund (EPF) is betting heavily on the glove counters again as it emerged as the substantial shareholder of 2nd biggest glove maker in the world, Hartalega Holdings Bhd after buying 174.3 million shares in the company. EPF’s stake is worth RM2.55 billion or 5.09% of the company.
Malaysia Pride - Chong Keat Aun, a local director from Kedah has won best new director at Taiwan’s Golden Horse Awards for his film “The Story of Southern Islet.”
The government did consider imposing MCO in Selangor back in early October but the cost was too high as 40% of the country’s economy is contributed by Selangor. Continue practicing 3W to curb the spread of Covid-19 which are Wash (Hands), Wear (Mask) and Warn (Cautious).
4. AROUND THE WORLD
Good news for developers as Apple is reducing its commission by half from 30% to 15% for developers. The catch - it only applies to developers making under USD1 million, which constitutes about 99% of App Store developers. Despite this, according to Sensor Tower research, this 99% only generated about 6% of App Store revenue. In other words, the remaining 1% of developers are making the bulk, or 94% of App Store revenue. This would only impact 2% of App Store revenue and fend of anti-trust pressure on Apple. Wise move - minimum cost with maximum PR and goodwill from the developer community.
Whilst world leaders attended a G20 Summit meeting on coronavirus, President Trump was absent. White House pool reporters said that he was busy playing golf.
We shared recently that the US retail giant, Walmart is exiting Japan after 18 years since its entry by selling the 85% of its stake in Seiyu to KKR, a private equity firm, and Rakuten, Japan’s leading e-commerce company for a valuation of USD1.6 billion. It seems that Walmart is cursed by a jinx, where its profits are inversely proportional to the distance from its HQ in America. Meaning, the further they are based, the lower the profit.s Walmart has exited Germany, South Korea, Brazil and most recently Britain.
This failure is largely attributed to the consistent failure of management back in HQ to factor for local business customs, local dietary habits and labour relations etc. Walmart is shifting its focus to emerging economies like China, India and South Africa. Just hope that the management won’t repeat its mistakes, but since management practices are deeply entrenched as an organisation grows larger and older, it’s more likely than not that soon we will hear another round of news of Walmart’s exit from one of its many overseas businesses.
Biggest market in the world for gift cards? US. In 2019, Americans spent USD98 billion purchasing gift cards with at least 2% or USD2 billion usually being unused. For portion of the credits that expire, to an extent allowed by law, companies are able to recognise it as breakage revenue. Starbucks recorded breakage revenue of USD140 million - that’s tens of millions of coffee that Starbucks didn’t sell yet being able to recognise it as sales!
Japan’s earlier success in controlling the Covid-19 was predicated on the ‘Three Cs’ approach - avoiding closed spaces, crowded places and close contact situations created the Japanese scientist, Hitoshi Oshitani. However, pandemic fatigue and winter season is causing new clusters to pop up and cases to rise with 124,000 cases and fewer than 2,000 deaths to date.
Warren Buffett on the biggest mistake parents make when teaching their kids about money:
“Sometimes parents wait until their kids are in their teens before they start talking about managing money — when they could be starting when their kids are in preschool.”
In 2011, Warren Buffett recorded a 26-episode children’s animated series on basic financial and money skills.
Pfizer filed for an emergency use authorization for its Covid-19 vaccine with the US Federal Drug Administration.
5. MARKET SUMMARY
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