- Putrajaya already spent nearly RM40 bil to repay 1MDB’s debts
- Capital A is a step closer towards being PN17-free
- Cambodia is building a new canal that irks the Vietnamese.
IN Malaysia
The Auditor General’s Report Bombshell
Among the highlights of the Auditor-General’s Report (LKAN) 3/2024 on the Federal Government’s Financial Statements for 2023, presented in Parliament yesterday –
- 45.9% or 3,942 projects out of 8,593 development projects under the 12th Malaysia Plan (12MP) are in progress as of August 26 this year. Need I to remind you that the 12MP runs from 2021 until 2025 and the 13MP will be announced next year. Out of the ongoing 3,942 projects, 169 are experiencing delays or difficulties. Other than that, for the period between 2021 to 2023, the 12MP projects had overspent by RM9.164 bil, having used up RM231.920 bil compared to the approved allocation of RM222.756 bil.
- Putrajaya’s total debt also spiked by 8.6%, from RM1.080 tril in 2022 to RM1.173 tril in 2023. Our debt consists of Domestic Loans (97.5%) and Foreign Debt (2.5%). The A-G also started to sound the alarm bells on the Federal Liabilities position compared to the GDP ratio, which has been increasing from 78% in 2022 to 81.8% in 2023. The unfortunate increase in the ratio is due to the slower-than-expected growth of nominal GDP in 2023. A-G recommends the Federal Government to be wary of new borrowings as the target is to ensure national debt does not exceed 60% of the GDP, in accordance with Act 850.
- In regard to the you-know-who entity that has a number in it, the A-G reveals that the Federal Government had thrown away RM39.74 bil in guarantee commitment grants to repay 1Malaysia Development Bhd (1MDB) debts from 2019 to 2023. If you want to know how big is the sum, the money can be utilised to build 30 Sungai Buloh Hospitals that cost RM1.3 bil each, or the money spent can be used to fund my lifestyle for seven generations and still have spare change to buy a Ferrari. We still have another RM9.46 bil left to repay the remaining 1MDB debt balance. Betul lah what orang tua said, iman tak boleh diwarisi but hutang mak nenek boleh di turun temurun.
Putrajaya launched the Data Centre Planning Guidelines
At last, Putrajaya via the Ministry of Housing and Local Government (KPKT) has launched the Data Centre Planning Guidelines (GPP) that will standardise and streamline the application and planning approval process for stakeholders. The GPP only applies to data centre developments with a capacity exceeding one megavolt ampere (MVA), whether in new areas or existing buildings. At the moment, Malaysia has 32 data centres in operation and another 19 under construction.
Shorts
- Genting Malaysia Bhd’s US unit, Genting Americas Inc said that the RM2.57 bil complaint by RAV Bahamas against them is baseless and without merit. Both Genting Americas and RAV Bahamas were in a joint venture named RW Bimini, where the former indirectly owned a 78% stake while the latter held the remaining 22% shares. RAV Bahamas accused Genting Americas of turning the JV into a financial wasteland by incurring USD885.2 mil in debt.
- Local glove manufacturer Brightaway Group can breathe easily now as the United States has lifted the import ban on the company. Previously, the company was sanctioned by Uncle Sam in 2021 due to allegations of using forced labour.
- Another company that also carving a smile on its face is Capital A Bhd as the shareholders of the company have approved the disposal of its RM6.8 bil aviation business to AirAsia X Bhd. This move is a step closer towards Capital A’s imminent exit from the Practice Note 17 (PN17) status, a status that has been haunting the company since 2020.
Around the S.E.A.
Cambodia commences the USD1.7 bil Funan Techno Canal project
In a fanfare ceremony attended by more than 20,000 people, Cambodian PM Samdech Hun Manet broke ground on the Funan Techno Canal Project, a 180km long man-made waterway that can accommodate two shipping lanes, which will connect the capital Phnom Penh with the country’s only deep seaport, Sihanoukville at the Gulf of Thailand. Cambodia projected that by 2050, the annual revenue generated from the canal will be close to USD600 mil. Unsurprisingly, China is the man behind the project, shouldering the entire USD1.7 bil financial burden via its state-owned China Bridge and Road Cooperation (CBRC). China is really the true daddy in the region, dishing cash like nobody’s business. Although Cambodia is very happy with the project, the contrary could be said about its neighbour Vietnam. Vietnam is concerned that the project will negatively impact the water flow within the Mekong River, preventing water from reaching crucial areas of the Mekong Delta in Southern Vietnam.
Shorts
- Taiwan Semiconductor Manufacturing Co (TSMC) is snubbing the Southeast Asia region and chose Europe to set up more plants as the company eyes opportunities in the continent’s appetite for artificial intelligence (AI) chips. Recently, TSMC broke ground on an RM46.8 bil chip fabrication plant in Dresden, Germany. It will be TSMC’s first plant in the European Union (EU) and the cost of constructing the plant will 50% be borne by Germany. TSMC’s expansion away from Taiwan is part of the company’s plan to hedge against rising geopolitical tensions with China.
- Indonesia is calling Apple’s bluff as its Ministry of Industry is delaying the official iPhone 16 sale in the country due to Apple’s failure to meet the promised investments of USD109.5 mil. As of now, only 86.5% of the promised investment has been realised. Some would say Malaysia should do the same as what Indonesia is doing but we do not have the market size that Indonesia has. At the moment, Indonesia is the largest economy in the Southeast Asia region and the 16th largest in the world. So, whatever Indonesia demands, companies will follow. For this case, their tempe does trump our nasi lemak.
For your EYES only
An environment PSA – Mangrove plants are a very important element in defending our coastline as their roots intertwine to form a dense ‘wall’ above water that breaks waves and helps blunt the force of an incoming wave’s energy. Mangroves have also been found to be an effective defence against tsunamis, reducing wave heights between 5% – 35%. So, whenever your company want to do a CSR program, opt for mangrove planting.
This is actually why we plant mangroves tress 🌳 🏡 🌊 pic.twitter.com/0rNwkkbRZU
— Licypriya Kangujam (@LicypriyaK) October 13, 2024
