- Chief Secretary just launched the Public Service Reform Agenda.
- ZUS Coffee walked away with RM250 mil more in the bank
- US Federal Reserve is expected to announce a series of rate cuts after holding its ground since July 2023
IN Malaysia
The Chief Secretary rolled out the Public Service Reform Agenda
During his maiden address as the Chief Secretary, Shamsul Azri Abu Bakar unveiled the Public Service Reform Agenda that will focus on five key results – appreciation of values and governance, human capital development, organisational development, service delivery, and empowering public and private synergies. One key thing that Shamsul emphasised is total communication where the Government need to make improvements on the publicity aspect, leveraging social media platforms. He mentioned how the Immigration Department dealt with complaints in social media recently is a prime example of a ‘show without telling’ action. So, to all government servants that recently received a hefty bump in your salary, it is no longer business as usual. Do expect more ‘surprise’ spot-check visits. Welcome to you Sekolah Putrajaya era and the Madani Government is your guru disiplin.
Source: https://theedgemalaysia.com/node/726238
Is Sarawak’s direction to go hydrogen the right choice?
Sarawak Transport Minister Lee Kim Shin said that the first two units of the Autonomous Rapid Transit (ART) hydrogen vehicle for the Kuching Urban Transportation System (KUTS) project will arrive in Sarawak by year’s end. A total of 38 units of ART hydrogen vehicles will be delivered for the KUTS project, where the first will arrive fully assembled while the remaining will come in a semi-assembled state.
But is it the right move to trust in hydrogen? In China, the first hydrogen-powered rail line has stopped in its tracks due to a long-term lack of passengers. It cost the train operator, Gaoming Modern Rail (GMR) USD118 mil to complete the 6.5km line in Foshan, China in 2019. The news raises concerns to some including Pending assemblywoman Violet Yong. Yong added that Sarawak should go back to basic in providing public transportation to the masses instead of spending RM6 bil for the ART project. To be fair, the KUTS project is expensive, where it cost about RM80 mil per km. In comparison,I ndonesia’s initial Bus Rapid Transit project only cost less than RM700,000 per kilometre. Indonesia kept it simple – not using any fancy hydrogen buses and create a dedicated bus-only lane along existing highways.
Investment News
- Malayan Banking Bhd (Maybank) announced that it has invested an undisclosed amount in Funding Societies which is a fintech company that operates a digital funding and debt investment platform for small businesses. Maybank added that this investment is aligned with its M25+ strategic thrust that aims to accelerate digitalisation within and beyond the banking sector. Year-to-date, Funding Societies has disbursed more than RM17 bil in business financing to over 100,000 SMEs across the Southeast Asia region.
- Zuspresso (M) Sdn Bhd, the operator of ZUS Coffee, has struck coffee gold after it secured RM250 mil in private equity (PE) funding from a consortium consisting of KV Asia Capital Pte Ltd, Kumpulan Wang Persaraan (KWAP), and Indonesia’s Kapal Api Group. According to ZUS Coffee CEO Ian Chua, the new money will help in ZUS Coffee’s global expansion and its foray into new verticals such as fast-moving consumer goods (FMCG). At the moment, ZUS Coffee operates 550 stores in Malaysia, not including another 50 stores in the Philippines.
China has an appetite for Malaysia
- According to Dr Wee Ka Siong who accompanied DPM Ahmad Zahidi Hamidi on the latter’s official visit to China, stakeholders in China’s halal industry are keen for Malaysia to be a certification hub for halal products. This is because China intends to penetrate the global halal market, including ASEAN and the Middle East. At the moment, the trade value of halal products in China alone has reached USD140.7 bil. As a comparison, the gross domestic product (GDP) size of Morocco in 2023 was USD141.1 bil. Hopefully, China does not follow Malaysia’s local news currently as the local scene on halal certification is a mess – from the ‘hidden cost’ in maintaining halal certification to politicians bickering about whether all F&B merchants need to apply for halal certs.
- After the Government has simplified the Malaysia My Second Home (MM2H) visa scheme which now offers a five-year visa for a minimum investment of around USD300,000, this revamped MM2H has attracted huge interest from China’s wealthy youth. According to the South China Morning Post (SCMP), Chinese nationals account for a significant portion of MM2H participants, with 24,765 pass holders out of over 56,000 active participants. Apart from MM2H passes, China nationals are also crazy for industrial land in Malaysia. As a wise man once said, as the East rises, the West’s sun will set. So, let’s pandang ke Timur.
Shorts
- Taiwan-based printed circuit board (PCB) manufacturer, Elna PCB has just opened its new RM1 bil manufacturing plant at the Perai Industrial Zone in Penang. This new plant will create more than 1,000 job opportunities and cement Malaysia’s position as the world’s sixth-largest semiconductor exporter, accounting for 13% of the global assembly, testing and packaging market.
- The planning is in the works for a third port in Port Klang, that will be constructed at Carey Island. The RM28 bil mega port will be scheduled to be completed by 2060 and is expected to be driven by private initiative. SD Guthrie Bhd is set to be the biggest beneficiary of this third port development as the company owns about 90% of the land on Carey Island.
Around the S.E.A.
The market expects the Federal Reserve to announce rate cuts
According to the CME Group’s 30-Day Fed Fund futures prices, which reflect market expectations of changes in the U.S. Federal Reserve’s interest rate, it is predicted that the Federal Reserve will announce a rate cut of 25 basis points (bps) on September 18. Additionally, based on a poll by Reuters, most economists expect the 25 bps rate cut will be announced at all three remaining Federal Reserve’s policy meetings in 2024, bringing the interest rate expected downfall by 75 bps by the end of the year. The Federal Reserve rate has remained the same at 5.5% since July 2023.
How a rate cut will impact Malaysia? A rate cut in the US will bring joy to the Malaysian market as our Ringgit is expected to appreciate as capital will move from lower-yield US Dollars towards higher-yield emerging market currencies such as the Ringgit. Import-reliant sectors such as construction and the utilities sector will also bask in happiness as the strong Ringgit equates to cheap imports. Other than that, due to lower interest rates in the US, investors will be looking at other places with better returns for their capital and good-performing economies such as Malaysia will be best placed to receive the additional foreign direct investment (FDI).
For your EYES only
Social media comedian Uncle Roger just opened his first restaurant in Pavillion KL serving basically fried rice. The reviews are mixed, camouflaged by a lot of paid reviews. To truly judge whether his own restaurant is as good as his satire on other chefs, please do share us you experience of the place.
My quick notes on Uncle Roger’s new Fui Yoh restaurant at Pavi KL #uncleroger #fuiyohitsuncleroger #boldclaims #lyingcuntreviewers pic.twitter.com/HK4MK81IUe
— Izad Syah (@izadsyah) September 10, 2024
