EPF, MAHB, and a RM500 Million Mystery

Let's talk about it.👇 The Transport Minister Anthony Loke is baffled as to why PAC chairman Mas Ermieyati Samsudin wants to drag his ministry into the RM500 million EPF-MAHB share loss.

Layoffs, Bonuses, and Revenue Loss. What’s Next for PETRONAS? Word on the street is that Malaysia’s O&G giant PETRONAS could face workforce cuts, bonus cancellations, and reduced salary increments.

The rumours kicked into high gear after reports of a potential 30% revenue loss, thanks to a recent agreement with Sarawak’s PETROS.

Sapura Energy Bhd to rise from the ashes?

The embattled O&G co has received a "formal letter" from a white knight (WK), according to court documents.

The WK will provide a RM1.8 bil capital injection.

1/n The WK was not named but is believed to be an O&G co from the Middle East. The deal seems far from final - subject to conditions

With oil prices on the upswing and O&G cos reporting record profits, it's easier to fork out USD402 mil (RM1.8 bil)

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The niche, but big business of operating helicopters

Meet Weststar Aviation Services Sdn Bhd, the largest helicopter service operator in MY and SEA by fleet size

This is the story of how a Malaysian company became one of the world’s leading helicopter service provider

1/n Weststar was founded in 2003 by business Tan Sri Syed Azman Syed Ibrahim

He started out as a defence contractor. Also owns private jet charters, automotive biz

Azman is ranked #27 on Forbes Malaysia rich list with USD650 mil net worth

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43.1% not sure/didn't know what is PIDM in the Malaysian banking sector

In short, PIDM protects depositors' money in banks if they go bankrupt

We break down:
1. What's covered vs not covered
2. How to maximise coverage
3. Member banks
4. PIDM reserves + how it makes money History

PIDM = Perbadanan Insurans Deposit Malaysia

Established 2005, PIDM introduced the Deposit Insurance System (DIS) on 1 Sep to insure, protect deposits placed in member banks

To note, PIDM also protects takaful/insurance - story for another day, we focus on banks here

Malaysia's national cash cow that produces black 'milk' Petronas reported record high full-year FY2022 profit after tax (PAT):

RM101.62 bil - ngam2 can buy 1 Maybank (market cap: RM101.3 bil)

This is about 2x FY21 of RM50.87 bil

Revenue shot up +51.3% to RM375 bil

1/n With great profits, come great dividends - Petronas is paying the govt RM50 bil in dividends

The company is allocating RM300 bil in capex for the next 5 years

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EPF 2022 Dividends - Behind the Money

By now, you’d know how much 2022 div you are getting

But do you know how EPF invests/makes its $$$ to pay us?

Figures @ 31 Dec 2022
- EPF investments by asset classes (AC)
- Savings by: age, race, B40/M40/T20
- # members, employers
👇👇 Before we start, some historical figures

Historical dividends since 2010
Total investment assets since 1985

Current total investment assets: RM1.003 tril, the first time ever it shrank yoy since 1985

The iconic image below is called The Great Wave (TGW) of Kanagawa, a woodblock print created in 1831 by artist Hokusai, said to be the "most reproduced image in the history of all art".

Van Gogh, an admirer of Hokusai praised the art, it had "terrifying" emotional impact

1/n There are few copies held by several museums throughout the world.

TGW is the 1st of 36 art from Hokusai's '36 Views of Mt Fuji'.

His style combined Japanese prints + graphical perspective developed in Europe, earning him immediate success in Japan and Europe.

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Cow buys ice cream - Farm Fresh Bhd (FFB) acquires 65% stake in The inside Scoop (IS) for RM85 mil

This values the ice cream co. at RM129 mil

IS is Malaysia’s largest home-grown ice cream brand. Launched in 2013, it now has 37 outlets

Here's the deal structure 👇 Some background - launched in 2013, it now has 37 outlets. It plans to double its # outlets and considering to expand to PHP and Indonesia,

53%: acquired from the shareholders for RM68.4 mil (big payday, right into their pocket!)

12%: investment into the co. for RM15.5 mil

Lee Thiam Wah, the founder of 99Speedmart dominated the FMCG space (biggest MY retailer, bigger than the big big bois). 2k stores in Nov 2021. The company is wholly owned by him and wife.

Then, he bought Burger King MY & SG for RM74.6 mil in 2015 from Ekuinas

1/n He tried applying for digital banking license but no luck. But nvm.

Let's buy a bank instead - last week, he became a substantial shareholder in Alliance Bank-stake worth RM273 mil.

Retail,F&B,banking done. What's next on his shopping list?

Conglomerate in the making

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The @malaymail did a nice summary on Tajuddin Abdul Rahman's controversies over the years. We have heard of some, but there are quite a number we have not come across as well.

Let's begin 27 years ago in 1995 👇 Chapter 1: 1995

Tajuddin was fired by the UMNO Supreme Council for his involvement in money politics of RM6 mil for the Pasir Salak division chief post. That’s how he got the nickname “6 million dollar man”.

Ambassadors are crucial for two countries’ bilateral relations. Many of you have disagreed with Dato' Sri Haji Tajuddin bin Abdul Rahman's appointment as ambassador to Indonesia.

Let us convince you with the FOUR reasons why he'd make a great ambassador.

(Not sponsored!) 😜 1. He will protect Malaysia's image amongst Indonesians.

Back in 2015, he warned the Chinese minority in Malaysia that they could be 'slapped' if they took their grouses outside of the country.

Indonesians who complain about Malaysia, be warned - you might just be slapped!

He used to only be MP for Bera. Now he’s leading the country. Started from the bottom now he's here.

Dato Sri Ismail Sabri is now poised to become the next PM as the country heads closer to GE15.

Here are 8 reasons why he should be the next PM!😉 1. He will champion the rights of political detainees.

Did you know Ismail Sabri graduated from UM? He majored in law in 1980 and had a thesis titled "Treatment of political detainees in Malaysia."

He was also vocal about the situation in Myanmar.
straitstimes.com/asia/se-asia/m…

Former deputy PM and UMNO president took home conservatively 7-figures in cash and in Singapore Dollars in relation to the Foreign Visa System (VLN) contract, based on details shared by witness to the court.

Details of the ongoing trial below👇 1. Former director of Ultra Kirana Sdn Bhd (UKSB) Harry Lee Vui Khun told the court that his company paid cash monthly to the former deputy PM.

2. Payments were made from 2014 to 2018 in relation to the Foreign Visa System (VLN) contract.

Some interesting corporate deals:
1. Petronas Chemicals Group Bhd announced the acquisition of 100% equity interest in 140-year old Perstorp Holding AB for EUR1.538 bil (RM7.018 bil) in cash.

thestar.com.my/business/busin… 2. Rife speculation that the world’s largest glove manufacturer, Top Glove Crop Bhd, is planning a move to acquire property developer Mah Sing Group Bhd’s glove business in a deal worth RM175 mil.

themalaysianreserve.com/2022/05/17/top…

One of the largest corporate fraud amongst Bursa-listed cos has come to a close.

To recap, Serba Dinamik Holdings Bhd (SB) submitted false statements in relation to revenue figure of RM6.014 bil.

Here's how it ended 👇 A maximum fine of RM4 mil, totalling RM16 mil that has been paid.

Serba Dinamik Holdings Bhd (SB) and its top 4 executives were given a discharge and acquittal by the Sessions Court last week.

theedgemarkets.com/article/serba-…

Grab is rumoured to be looking to acquire a stake in Ambank, a traditional bank.

To recap, Grab together with Singtel and Kuok Brothers are amongst the 5 consortiums that were awarded the digital banking license earlier by BNM.

How much would it cost Grab? 👇 The sellers r likely to be Ambank’s 2 largest shareholders - Australia and New Zealand Banking Group Ltd (ANZ) (21.68% stake) and Azman Hashim (11.83% stake).

Ambank’s market cap currently stands at RM11.7 bil — acquiring both stakes of 33.51% will cost at least RM3.92 bil.

PN17 company Serba Dinamik Holdings Bhd was in the news again last week because of the most glaring item from EY Consulting's report:

Why did Serba have company stamps of its vendors, Petronas, other oil majors and its many suppliers? 1. Let's rewind the clock a little to May 2021.

Back on May 25, 2021, Serba filed a statement to Bursa stating KPMG found statutory audit matters and an independent party will carry out a review.

The KL High Court granted an ad interim injunction filed by 1MDB and its subsidiaries against Jho Low and his father, Tan Sri Larry Low Hock Peng.

They aren't allowed to transfer or spend their assets totalling USD1.43 bil (RM6.02 bil).

(1/2) The injunction capped their monthly expenses to no more than RM20k for living and legal expenses.

(Former PM Najib Razak's injunction allowed him spend RM100k/mth)

They must provide the value, location and information related to their assets.

Both men are on the run.

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How much Malaysians invest in unit trust funds? A LOT.

2021: RM526.9 bil
(2020: RM519.5 bil) How much was raised from alternative financing?

P2P: RM1.14 bil 2021, >2x 2020's. RM2.29 bil raised since inception

Equity crowdfunding (ECF): RM221.63 mil in 2021, +73% from 2020

Private equity & venture capital: RM14.83 bil in 2021, +26.75 yoy. RM9.65 bil PE, RM5.18 bil VC

1. AirAsia is now back with unlimited flights. Not just that, unlimited food deliveries and Covid-19 pre-departure insurance coverage for a year.

Through airasia Super App, the subscription plan , SUPER+, cost RM639 per annum and is limited to 200,000 from 2 Apr. 2. So, 200k plans x RM639 / plan = RM127.8 mil airasia is going to collect upfront from consumers from selling unlimited flights and food delivery.

With borders reopening, probably this time around people can actually fly.