- No meeting of india’s trade minister with Malaysia due to tight schedule of Indian trade ministry official. Tension regarding Malaysia and his biggest palm oil customer India continues.
- Mahathir emphasized the importance of Malaysia Incorporated (Malaysia Inc) which integrates private and public sectors into one common objective. 6 States which includes Kedah, Selangor, Kuala Lumpur, Perak, Terengganu and Penang has started 72 5G use case (a specific situation in which a product or service could potentially be used). I really liked how Mahathir is embracing the future technology and there might be question whether it is necessary for us as an emerging market to invest in such technology. The answer is an obvious yes because 5G makes so much difference where it can transform the industry entirely. As Mahathir said, it might play a key role in turning the manufacturing industry (22% GDP Contribution) into their next levels.
- Analyst opine CPO prices to rally up to at least RM3,300 a tonne in first half of 2020, despite the high possibility of China decreasing their order as US-china phase 1 deal proceed with China agreeing to buy more soybean from America, as a part of a deal for US to lower their tariffs (It has down 16.4% from 2018). Analyst opine that US will struggle to regain all that market share because the details are unclear on the volume commitment in the deal. For me, RED LIGHT for CPO, too many uncertainties, better stay and watch.
- TH Engineering obtained licenses from Petronas for certain oil and gas related jobs. Checked TH Heavy, revenue has been increasing for four quarters straight, latest quarter net profit only resulted in a 97.4% loss due to previous year having a one off gain of 113 million. But very volatile company as one loss contract can cause a big drop in share price.
- Datasonic needs more contracts win to justify its share price now, as analyst opine that it is overvalued now.
- E-wallet is expected to see consolidation between companies (Grab-TNGO-Boost) until two is remained, with China having only two e-wallets (1.4 billion population). Axiata’s Boost is on track to turn profitable in 2021 as userbase grew 40% to 5 million and merchant base doubled to 150k.
- Logistics sector to remain an upward trajectory in 2020 as export increases.
- Advanced Moving Bed Bio-Reactor (New Sewage Technology) being tested in Langkawi which can be used to purify water
- Mahathir said reduction of 18% toll rate will not affect PLUS Malaysia financially. It can earn enough to maintain its highways. Government is committed to ensure its manifesto are achieved.
Globally
- British firms issued 313 profit warnings in 2019, with UK having lower and lower corporate earnings.
- Myanmar joined China on few projects as part of the pan-Eurasia Belt and Road Initiative.
- New software flaw could further delay Boeing 737MAX’s return to the market.
- Bank of England might cut interest as there is possible weakness in months ahead. 70% chance of rate cut (not sure how they get that) on Jan30th. Bad news for bank sector as it might be a chain effect when one bank starts to cut their interest.
- Putin said he prefer keeping term limits in place, as he does not want to stay as leader forever (Hmm…).
- Toyota invested billions in US plants to produce SUVs.
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