- Malaysia to introduce a diagnosis-related group (DRG) approach to reduce medical inflation
- Putrajaya to limit the request for >RM300 mil projects to one window for every two years
- Thailand mulling to build a wall at its border with Cambodia
IN Malaysia
The Malaysian healthcare sector: the tale of two sides of the coin
- Health Minister Dr Dzulkefly Ahmad announced that his ministry has taken a radical approach to tame the issue of medical inflation that has caused skyrocketing health insurance premiums and one of the measures adopted is the diagnosis-related group (DRG). DRG is a system that categorises hospital patients into groups based on their condition. DRGs are used to reimburse hospitals for inpatient care and to manage hospital resources. Patients in the same DRG are expected to use similar hospital resources and can help control medical costs by reducing unnecessary tests and procedures. However, Dr Dzulkefly admitted that DRG is not a ‘silver bullet’ and that other approaches are also needed to solve the issue.
- While Putrajaya is trying its best to make healthcare affordable, even to those that do not subscribe to public healthcare, private hospitals, on the other hand, seemly do not give a damn, cause apparently for them, the consumer picking up the bill at the end of the day kan? KPJ Healthcare Berhad just recorded an RM407.2 mil net profit for FY2024, a 50.6% increase compared to the performance of the previous year. The group attributed the positive performance to strong operations and the net gain from the divestment of its aged care business in Australia.
Sometimes I pity anyone who becomes the government of the day. The rakyat expects you to make everything affordable as if you have limitless funds that could be utilised. Perhaps the private sector should be more contributive and bukanlah watching the world burn while sipping a pina colada (halal version of course cause it is Ramadhan).
Move away O&G, now Semiconductors want to take centre stage
PM Anwar Ibrahim announced that a leading upstream semiconductor player, UK-based ARM Holdings PLC is expected to sign an agreement anytime this week to set up shop in Malaysia. Malaysia has been a well-known player in the downstream semiconductor space and is itching to enter the chip design space. ARM Holdings’ imminent entry is a major boost to prop up Malaysia as a major name in the global semiconductor race. PM Anwar also added that the leading Japanese investment holding company, Softbank Group Corp is also in the conversation in bringing ARM Holdings to the country. FYI, ARM offers the most popular CPU architecture in the world with 250 bil chips shipped since inception. It is most dominant in mobile CPUs with 99% market share and 40.8% in automotive. This dominant market share is achieved through its developer ecosystem.
Source: https://www.bernama.com/en/news.php?id=2397663
Malaysia is the leading investment destination for any semiconductor play in the market. But, how do we ensure the flow of investments is sustainable and consistent in the long run? The answer is to ensure the resources are available. Rare earth elements (REEs) are used in chips because of their unique properties that improve the performance of semiconductors and Malaysia has an abundance of REEs. According to Putrajaya’s estimates, we have a REE reserve worth RM747 bil but unfortunately, there are still gaps in the regulatory aspects on how to unlock our REE potential from beneath the surface.
Source: https://theedgemalaysia.com/node/746386
Another way to ensure the sustainability of the semiconductor industry is to boost the domestic direct investment (DDI) towards our semiconductor industry which is still heavily reliant on foreign investments (FDI). Recently, US-based Intel announced an indefinite hold on the USD9 bil project to build a new chip packaging and testing facility in Penang due to the USD18.8 bil losses incurred by Intel in FY2024. The pause or permanent hold on Intel’s Penang project could slow down Malaysia’s wafer fabrication and advance packaging industries for several decades, or possibly be unrecoverable.
Shorts
- The Ministry of Investment, Trade and Industry (Miti) is looking towards the allegations that Malaysia is used as a transit country to ship servers that include Nvidia Corp chips, which are barred from countries such as China. The servers were initially shipped to Singapore and meant for the Malaysian markets but investigation allegedly indicates that the servers could travel to destinations beyond Malaysia.
- Economy Minister Rafizi Ramli announced that Putrajaya is limiting funding requests for development projects that cost more than RM300 mil, to only one window for every two years. The first application window is now open from March 1 to March 31 under Rolling Plan 1 and if applications are not submitted this time, the next window will be in 2027. The new guideline is part of the government’s effort to control costs and prevent leakages, waste, and delays in development projects. Other provisions in the new guidelines are –
- any new development project must first consider existing government-owned land rather than requesting allocations to purchase new land;
- mandatory for agencies and departments to plan development projects based on total life cycle costs to avoid costly modifications after approval.
Around the S.E.A.
What’s up in Thailand
- Thailand is seriously considering going full Trump by planning to build a wall on part of its border with Cambodia to prevent illegal crossings, as part of a multi-national effort to dismantle a sprawling network of illicit scam centres at the Golden Triangle. Golden Triangle is a porous border area between Thailand, Cambodia and Laos that is well known as the centre of financial scams in the region. Thailand and Cambodia share a border of 817km and the Thai defence ministry has previously proposed a wall to block off a 55 km natural crossing between Thailand’s Sa Kaeo province and Poipet, which at present is only protected by razor wire.
- In its journey to become a regional casino hub, Thailand is dropping the requirement that locals must prove they have had RM6.5 mil in the bank for six consecutive months to be allowed to gamble in casinos. Previously, given that the requirement holds, only about 0.01% of the population (10,000 pax) are eligible, which would push the remaining interested gamblers to resort to illegal gambling activities.
For your EYES only
Microsoft has announced that the company is sunsetting Skype, the service that cost Microsoft USD8.5 bil in cash to acquire 14 years ago. Skype is really a missed opportunity. While Zoom and Teams thrived due to the pandemic, Skype collapsed under the pressure.
It’s official: Skype is shutting down in May. And honestly? No one is surprised. Let me share some Skype alumni product perspectives:
When I first heard the rumor, I couldn’t believe it. I reached out to my ex-Skype colleagues, and it turned out to be true. The app that once… pic.twitter.com/k1iOT0cixg
— Inspired Analyst (@inspirdanalyst) March 3, 2025
