- China and Khazanah are aiming to open a rare earths refinery in Malaysia
- Malaysia Airlines to expand its catering services
- The US government shuts down again
IN MALAYSIA
Israel is playing by its own rules
Against the international community’s condemnation, Israeli forces have intercepted the Global Sumud Flotilla (GSF) ships, which were en route to the coast of Gaza to deliver humanitarian aid. During the interception, thirteen Malaysians who were part of the flotilla lost contact with the Sumud Nusantara Command Centre (SNCC). Eight of the thirteen Malaysians were confirmed to be detained by Israeli forces. Humanitarian activists on board also shared live streams showing tense scenes as Israeli forces surrounded and attempted to disable the aid convoy.
In responding to the incident, Communications Minister Fahmi Fadzil said that Malaysia will use diplomatic channels to secure the swift release and return of Malaysians detained by Israeli forces. There are 23 Malaysian activists and volunteers with the international flotilla of 46 vessels, and now more than half are MIA.
While the reaction from the public regarding the incident was outrage and solidarity with the flotilla, one particular individual stands out. UMNO Youth Chief Dr Akmal Saleh urged Putrajaya to revoke the invitation to US President Donald Trump to attend the upcoming ASEAN Summit in Kuala Lumpur if the Malaysian activists on board the ships are not immediately released. If his demand is not met, Dr Akmal will mobilise UMNO Youth’s nationwide and stage a protest ‘in front of Trump’ once the foreign leader is in Kuala Lumpur.
Source: https://m.malaysiakini.com/news/756771
While Dr Akmal’s stand-out solidarity is something we can respect, however, Trump’s visit to Kuala Lumpur needs to run as smoothly and as quickly as possible, because basically we do not want to provoke the unpredictable orange man. Even Penang Mufti Sukki Othman resonated with this tone as he stated that although Malaysia has both moral and religious obligations to speak up against colonisation and oppression, the door of diplomacy always needs to be open, as it is more effective than closing the door for communication. Welcoming world leaders to Malaysia is part of diplomatic efforts, which provide the opportunity to convey messages on crucial matters.
Business news
- China, Khazanah Nasional are talking about a rare earths refinery project
China and Malaysia, via its sovereign wealth fund Khazanah Nasional Bhd, are in talks to build a refinery in Malaysia. This is big news as previously, China has always been hush-hush on its rare earths processing technology, to the point that the world’s top supplier and refiner of rare earths banned export of its processing technology. Beijing is ready to swap its technology for access to Malaysia’s untapped rare earths reserves. Malaysia has some 16.1 mil metric tonnes of rare earth deposits, the government estimates, but lacks the technology to mine and process them. So, on paper, it is a win-win situation, and a successful deal would make Malaysia one of the few countries with both Chinese and non-Chinese rare earths processing technology (Australia-owned Lynas plant in Pahang).
- Malaysia Airlines to build its own mega kitchen
Malaysia Airlines COO Nasaruddin Bakar announced that its parent company, Malaysia Aviation Group Bhd (MAG) plans to launch its own in-flight catering hub by 2029. The new facility, which will double the current capacity, up to 50,000 in-flight meals daily, to be located near its existing facility at the Kuala Lumpur International Airport (KLIA), will be operated by MAG Catering Solutions (MAGCS). Nasaruddin revealed that MAGCS’s current production rate cannot fully provide for Malaysia Airlines and Firefly. The airlines still rely on other catering partners. The new facility will meet the company’s needs and some. As a context, previously, MAG created MAGCS as a response after ending a 25-year partnership with Brahim’s Food Services.
- Creador-backed firm going public
Custom Food Holding Bhd, a food ingredient maker backed by private equity firm Creador, is aiming for the stock market to raise funds to finance its new manufacturing facility, repay borrowings and use as working capital. The initial public offering (IPO) will offer up to 29.4% interest in the company. At the moment, Creador has an effective 16.7% stake in Custom Food. Post-IPO, Oriental Concept Sdn Bhd (OCSB) and Sabroso Group Sdn Bhd (SGSB)’s stake will be reduced from 80% to 61.21% and 20% to 4.98% respectively. Custom Food is principally a manufacturer of speciality food ingredients and food products, which generated an RM394.86 mil in FY2024, with a PAT margin of 10.65%.
Around the SEA
Should we care about the US government shutdown?
The US is in the midst of its first government shutdown in more than six years. But, before that, what is a government shutdown? A US government shutdown occurs when Congress fails to pass the necessary appropriations bills to fund federal agencies by the start of the fiscal year on October 1, leading to a lapse in funding.
So, should people in Southeast Asia give a damn about this? The answer depends on how long the shutdown lasts. If it lasted for –
- Just a few days – The international impact might be pretty limited. The markets do not seem to be too bothered either, instead hitting fresh records. Embassies and consulates remain open, except for stuffs deemed non-essential get paused (think cultural events and official LinkedIn updates — we definitely endorse declaring LinkedIn non-essential btw).
- A full week? – Customs workers, now processing ~USD100 mil in tariffs a day, will mostly continue unaffected, meaning key trade lanes and terminals keep operating. But back-office furloughs might start to slow down some documentation and compliance.
- A prolonged shutdown – Three of the last four shutdowns (1995-96, 2013, 2018-19) have lasted weeks. The last one (2018-19) lasted five. If this shutdown passes the one-week mark, markets will get the jitters, eying US treasury bonds for any offloading — that could reflect foreign governments questioning America’s safe-haven appeal. Economic data delays by the US Securities and Exchange Commission (SEC) will also happen, meaning that markets which are currently heavily data-dependent will start to fly blind amid a backlog of inflation, growth, retail, housing, and jobs reports.
Source: https://www.bbc.com/news/articles/crrj1znp0pyo
For Your EYES Only
Starting in 2027, any Ali, Muthu and Ah Cheng who want to apply for personal loans exceeding RM100,000 must attend a financial education module held by the lenders or Agensi Kaunseling dan Pengurusan Kredit (AKPK). Hmm, I think I need to apply for a personal loan now for my solo trip around the world. You only live once, guys!
