Sapura Says Its Future is Uncertain!

 

Financially troubled Malaysian offshore and marine contractor Sapura Energy has sought shareholders’ approval for its proposed regularisation plan (PRP). Sapura had an extraordinary general meeting on 30 July. 

In a circular distributed to shareholders, the contractor outlined the key proposals that constitute the PRP. These include a 99.99% capital reduction to reduce accumulated losses and a proposed debt restructuring exercise that will reduce Sapura’s total borrowing from approximately 10.8 billion ringgit ($2.55 billion) to around 5.6 billion ringgit. Annual interest costs are expected to decrease by more than 500 million ringgit — a reduction of about 60% — enabling Sapura to be in a better position to achieve profitability.

 

Source: https://en.wikipedia.org

In tandem, Malaysia Development Holding (MDH) will subscribe up to 1.1 billion ringgit in redeemable convertible loan stocks, earmarked to settle outstanding payments to vendors in the Malaysian oil and gas sector. 

The plan requires a significant share capital reduction, share consolidation, and debt restructuring, which could leave existing shareholders with a much smaller stake in the company. The restructuring plan has been criticized for potentially benefiting new investors and creditors more than existing shareholders.  

Why is the Government involved? Isn’t this a private sector, public listed company? To save bumiputera suppliers? Would the Government do the same for other private sector companies? Do we have guarantees for bumiputera entrepreneurs? Is public funds for private use? Where are the questions in Parliament about this? And why did so many banks lend so much to so few?  And after all this, Sapura says its future is uncertain! Actually, everyone’s future is uncertain. More so, I guess for Sapura! 

Reference:

Sapura Energy says its future is 'uncertain' without shareholder approval, Amanda Battersby, UPSTREAM, 9 July 2025

 

The Misuse of “Dr” Title in Malaysia

 

In recent years, Malaysia has seen a significant rise in individuals publicly adopting the prestigious title “Dr” before their names. This honorific is reserved for those who have earned a doctorate (PhD or equivalent) from accredited and recognised institutions. Medical professionals – including doctors, dentists and veterinarians – also rightfully use the title.

For honorary doctorates – awards given in recognition of distinguished service or contributions to society – the ethical convention is to present the designation in parentheses, as “(Dr)”.

Source: https://www.wikihow.com

Individuals who obtain so-called “doctorates” from dubious or unaccredited institutions – often referred to as diploma mills – are increasingly adopting both the formal “Dr” and honorary “(Dr)” titles without restraint or scrutiny. These entities often operate online, charging fees for non-rigorous, unverified, or entirely fictitious programmes. Degrees from such sources carry no academic credibility, yet recipients freely use the title in professional, political and social contexts.

This is more than a harmless vanity project – it is a serious ethical violation. The misuse of the “Dr” title erodes the integrity of Malaysia’s academic and professional landscapes, diminishes genuine scholarly achievements, and undermines public trust in institutions and individuals alike.

The title “Dr” is not a decorative label. It symbolises years of disciplined research, critical inquiry and intellectual rigour. Falsely adopting this title constitutes a form of intellectual fraud and identity misappropriation. It confers unearned credibility, unjust influence and undeserved respect.

When unqualified individuals introduce themselves as “Dr”, they engage in a form of deception that distorts public perception. In critical sectors such as medicine, education, policymaking and public administration, misrepresented qualifications can have real-world consequences.

At present, Malaysia lacks a comprehensive legal framework to criminalise the fraudulent use of academic titles. The Malaysian Qualifications Agency (MQA) maintains lists of accredited institutions and recognised programmes, but enforcement is weak. There is little deterrence for those who purchase fake degrees or self-style themselves as “Dr” using dubious foreign credentials or honorary doctorates from unrecognised bodies. By contrast, many democratic nations have implemented robust laws to regulate academic titles and penalise imposters.

In Germany, the misuse of academic titles is a criminal offence under Section 132a of the Criminal Code (Strafgesetzbuch), which forbids the unauthorised use of titles, degrees or academic designations. Offenders can face fines or imprisonment of up to one year. Germany also strictly governs the recognition of foreign degrees – only doctorates from universities listed by state authorities may be used with the “Dr” title.

In Australia, academic title misuse falls under consumer and professional misrepresentation laws, particularly under the Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010). Misleading claims about qualifications can incur civil penalties of up to A$2.5 million for companies and A$500,000 for individuals. Some professional bodies may also impose disciplinary actions, including deregistration or professional bans.

In the United Kingdom, while the title “Dr” is not legally restricted, the Misrepresentation Act 1967 and the Fraud Act 2006 apply when individuals use false titles for financial gain, professional advancement or deception. Offenders found guilty of fraud by misrepresentation face up to 10 years’ imprisonment, depending on the context and severity.

Singapore’s Private Education Act mandates the registration and quality assurance of all private institutions. Misrepresenting qualifications can lead to criminal prosecution under Section 36(1), with penalties including fines, revocation of licences or imprisonment – particularly when the deception influences public or professional trust.

Malaysia must act swiftly to introduce similar legislation to prevent the misuse of academic and professional titles. This includes enacting specific laws to criminalise the unauthorised or fraudulent use of the “Dr” title; establishing a National Register of Accredited Doctorate Holders, accessible to employers, the media and the public; penalising institutions – local or foreign – that operate without accreditation yet issue pseudo-doctorates; and requiring political candidates and public figures to verify their academic credentials through the MQA or the Ministry of Higher Education.

Malaysia is not immune to “title culture” – a socio-political phenomenon in which honorifics and academic credentials are equated with social status, legitimacy and trust. While recognising achievement is important, an overemphasis on symbolic titles – especially unverified ones – risks fostering a culture of superficial recognition rather than genuine contribution.

This obsession with status has led to individuals aggressively marketing themselves as “Dr”, securing advisory positions, board appointments and even political nominations – all based on questionable qualifications. Such behaviour betrays the principle of meritocracy and further tarnishes Malaysia’s academic and professional credibility.

The misuse of the title “Dr” is not a trivial issue. It is a symptom of ethical decay and institutional complacency. It undermines merit, devalues education and erodes public trust. Without urgent legislative and cultural reform, academic achievement risks becoming a commodity – something that can be bought, not earned.

Personally, I have seen some clients using the “Dr” title and when I engage on details of their research, they are at a loss to explain. Apparently, status outweighs ethics!

Reference:

Misuse of “Dr” title in Malaysia: A threat to integrity, trust, and knowledge-based progress, P. Sundramoorthy, Twentytwo13, 29 July 2025

Is Sabah Quietly Emerging out of Sarawak’s Shadow?

 

For years, Sarawak has been the economic success story of East Malaysia. Its commanding lead in oil and gas (O&G), infrastructure and state autonomy often made it the benchmark others aspired to. But that narrative is beginning to shift. Quietly but steadily, Sabah is emerging as a serious contender. 

 In 1Q2025, about 61% of these investments were foreign direct investment (FDI), indicating strong global confidence in Sabah’s economic trajectory. By contrast, Sarawak’s investment momentum has slowed with over 65% of its 2023 capital inflows coming from domestic sources.

 

Sabah topped Malaysia’s manufacturing investments during 1Q 2025 at RM7.3 bil. This is on the back of major investments prior led by major players such as China’s Kibing Group which pumped in RM950 mil to expand its glass production facility in Kota Kinabalu Industrial Park. A massive RM31 billion green steel project by Esteel Enterprise is also underway in the Sipitang Oil and Gas Industrial Park. These moves signal Sabah’s transition from raw commodity dependency to higher-value industrial activities, a transition that Sarawak began earlier but one Sabah is now accelerating with notable speed. 

In terms of tourism, Sabah welcomed 3.1 million tourists in 2024, surpassing its own target and building on its post-pandemic rebound. While Sarawak registered higher total arrivals, Sabah’s aggressive international marketing, direct flight connectivity and nature-based appeal are helping it capture a broader and more resilient tourist mix. 

Crucially, Sabah’s appeal lies in its diversity – from Mount Kinabalu and Sipadan Island to cultural trails and rural homestays. These offerings have been packaged with a more modern marketing push, including social media-driven campaigns, ecotourism showcases and strategic airline partnerships. 

In just over a year, Sabah reduced its number of hardcore poor households from over 22,000 in mid-2023 to just 1,464 by early 2025. By comparison, Sarawak still had over 17,000 such households as of May 2024. Sabah’s targeted aid programmes, affordable housing roll-out and student support schemes have helped deliver tangible results. 

Under the Hajiji administration, Sabah has streamlined investor approvals, set performance timelines and enforced implementation deadlines, even warning civil servants to act swiftly or face removal. However, corruption is still endemic as witnessed in a recent video-based scandal where MACC has not moved speedily as in other cases. Once that can be addressed, Sabah can aspire to be a developed state. 

Reference: 

Sabah’s quiet surge: How the Land Below the Wind is stepping out of Sarawak’s shadow, Focus Malaysia, 29 July 2025

 

What was Trump’s Trade Deal with the EU?

 

Imported cars, pharmaceuticals, apparel and others could grow more expensive for US consumers in the months to come. This is as the United States imposes a 15% tariff on most imports from the European Union. Analysts have labelled the agreement, announced July 27, as a win for President Donald Trump. But for U.S. consumers, even the reduced tariff is expected to spur higher prices. The Yale Budget Lab estimates that Trump's tariffs, including the new rate for EU imports, would raise prices by 1.8% in the short run, the equivalent of an average household income loss of roughly $2,400.  

 

Source: https://en.wikipedia.org

While the increase may sound insignificant, “the Federal Reserve’s inflation target is 2%. Some of the sectors that could see higher prices in (the US) in the months to come include:  

 

(i)              European cars 

Automobiles, one of the EU's largest export sectors, will likely see some of the most noticeable price hikes. European auto prices sold in the U.S. will go up probably at least 10%.

 

(ii)            Furniture 

Furniture is another sector that could get hit by tariffs. The Swedish company IKEA, for instance, relies on China, Poland, Italy, Germany and Sweden to supply “the majority” of products.

 

(iii)          Pharmaceuticals 

While certain sectors like wine and spirits appear to still be under negotiation, EU Commission President Ursula von der Leyen said pharmaceuticals will be covered by the 15% tariff, with certain generic drugs not subject to tariffs. The EU is behind about 60% of pharmaceutical imports to the United States, according to Reuters, making them the largest European export to the United States by value.  

 

(iv)           Luxury items 

Luxury items like imported designer handbags and apparel could also see higher prices, as well as imported food. 

The difference between China and Europe, in terms of tariffs, is that the tariffs on China increase what people buy in Walmart and Target. The tariffs on European imports will mainly hit what people buy at Whole Foods and high-end retail stores. The companies behind luxury goods tend to have higher margins and may be more willing to absorb some of the higher costs tied to tariffs. 

 

(v)             Machinery 

Machinery and appliances are also major exports from the EU, accounting for roughly 20% of U.S. imports from the EU in 2021, according to the Commerce Department.  While consumers won’t buy machinery directly, experts warn that the higher prices could eventually trickle down as manufacturers adjust to higher costs.  

The impact of tariffs will vary by sector and country. For Malaysia, we face 25% tariffs on our exports and it is unlikely to drop to 15% after any negotiation. It is good if BNM or some think-tank work out the effects on different scenarios so that businesses are more prepared to handle the implications of Trumpian tariffs on Malaysia.

Reference: 

Trump's trade deal with the EU: What it means for your wallet, Bailey Schulz, USA Today, 29 July 2025

Is RM10b Spent to Win Votes?

 

Midway through his first-ever term as Prime Minister, Anwar Ibrahim has shown himself to be a populist politician. This is evident with the latest handouts which was estimated by P Gunasegaram at RM10 billion (see table below).

 

The Sabah state election has to be held at the latest by December this year or January next year, some six months away which may have motivated this largesse. 

The RM100 handout is NOT a targeted subsidy - it goes to everyone above the age of 18, also the voting limit. The question is, why was it not limited to those who truly deserve it? 

From official figures and estimates, the percentage of the population above 18 can be put quite accurately at above 70 percent. From a total population of 34 million, that amounts to 23.8 million people. The total bill will be RM2.38 billion, of which only 20 percent or RM476 million will go to the needy, while RM1.913 billion will go to people who mostly don’t need it.

 

Anwar said it will amount to RM2 billion, the figure we shall use, presumably because he expects a significant number of eligible voters not to accept. Still, it’s always nice to have a handout. If there is a household of five, of whom, say, three are over 18, an RM300 angpow at the right time, close to voting, as in the case of Sabah, is nice - that much more groceries.

On RON95 at RM1.99 a litre and no toll increase, many had thought oil subsidy rationalisation was a cornerstone of Malaysia’s economic restructuring. What happened? It does not fuel inflation but alleviates transport costs and other related expenses. 

Delaying toll increases basically means that the government will pay the toll operators for the delay. Anwar estimates this at RM500 million. 

A day off - Sept 15, a Monday - will give Malaysians a long weekend as Sept 16 is Malaysia Day. But what will it cost Malaysia? We could estimate that it could be at least RM5 billion - the loss of gross domestic product at current prices. 

Total it all up, and the cost of populist measures is RM10.1 billion. Personally, PMX’s credibility and stature would soar if he focused on meaningful reforms especially those that are deemed as “low hanging” fruits. And he knows them, as “king” of reformasi. But why the delay? UMNO? Najib? He has not handled well on corrupt politicians, who have got away with DNAA! The philosophy of return some of your stolen loot and we will go light (or easy) on your sentence is not a great idea! No sane person can subscribe to that!

 

Reference:

COMMENT | Anwar's injudicious RM10b waste to curry voter favour, P Gunasegaram, Malaysiakini, 25 July 2025

Michael Pettis’ Misleading American Narrative on China

 

Michael Pettis has become the go-to source for getting most things about China's economy wrong. Pettis’s unconventional ideas and even more unorthodox career path have managed to short-circuit the traditional economics idea-to-policy pathway. Pettis was an emerging markets bond trader with two master’s degrees, international affairs and an MBA (both from Columbia University). He currently teaches MBA students at Peking University’s Guanghua School of Management and, for the most part, does not publish academic research. 

Pettis has likened himself to a 19^th-century pamphleteer, writing mass-market economics books and op-ed articles. What he also does is tweet. He is peer-reviewed by the Twitter peanut gallery – not credentialed economists. 

Where does Pettis fit into all of this? This eccentric thinker issues expositions by Twitter. He has unfortunately become the nexus of China economic thought in mainstream Western media.

For two decades, Pettis has told the Western world that China was overinvesting and under-consuming and that growth will collapse to 2-4%. But China grew two to three times as fast. 

Fundamentally, Pettis believes that America runs persistent trade deficits because Asia has implemented policies that incentivize production at the expense of consumption and is externalizing those imbalances onto the US, the “consumer of last resort.” His preferred set of policies would involve taxing capital flows, targeted tariffs and industrial subsidies that even out the playing field. 

On consumption, China grew household consumption twice as fast as second-place South Korea. And the US has increased household consumption faster than all major developed economies.

 

Graphic: Asia

The two most dangerous ideas put forward by Pettis are 1) China’s economy is wasteful, inefficient and on the cusp of stagnation, and 2) consumption creates value. Both ideas are not only wrong, but further from the truth. It is highly likely that belief in these two ideas misled the brain trust (or lack thereof) surrounding President Trump. 

Pettis has been trafficking in this fallacy for decades – the idea that consumption, especially US consumption, is a public service of some kind. This fallacy has high purchase in America because it appeals to what Americans have become – shoppers. It has also resulted in unfortunate economic formulations like “supply of demand.” As in the US economy is accomplishing great feats by supplying demand to needy Asian factory workers. As if supply and demand were not useful enough economic concepts, we now have supply of demand. 

This is all nonsense. There is no such thing as supply of demand. American consumers are not supplying their demand in exchange for Nikes from Vietnam. American demand has no value to the Vietnamese. American consumers are trading American assets for Nikes from Vietnam. 

Today, nottom of Form

Today, nine of the top 10 research universities (according to the Nature Index), are now in China, up from zero 25 years ago. Out of 64 technology verticals tracked by the Australian Strategic Policy Institute, China now leads in 57. Two decades ago, the US led in 60 out of 64 technologies. These trends are accelerating.

Graphic: Asia Times

60% of those who score in the 99^th percentile on the math portion of the SATs is Asian Americans who make up 5% of the population. 20-30% of Chinese high schoolers would likely score in the 99^th percentile on the US math SAT. When Chinese American families contemplate moving to China, the biggest hurdle is the fear that their children cannot keep up with local students – these are PhD families.    

All the tariffs, taxes on capital flows and industrial subsidies will amount to nothing if Americans do not fix their education system and lift their game. The Ivy League should not be 25% Asian. Silicon Valley should not be 50% Asian. Even Wall Street should not be 16% Asian.    

And no nation should be starting an economic war with delusional strategies like, “They need our consumers.” The first humiliations are already in with Trump caving on certain tariffs. The final American humiliation will be psychologically unbearable.  But the world will have suffered as well, and for what? Trumpian ideas have no basis in rational economic thought. So, Michael Pettis and Peter Navarro could lead the world into a recession if not a depression. 

Reference:

Michael Pettis misleading the American zeitgeist on China, Han Feizi, 14 April 2025

Are You Overworked and Underpaid?

 

If you constantly find yourself pushing beyond your limits, you might be taken advantage of without even being aware of it. Good employees often go above and beyond to maintain productivity and complete their tasks. However, their strong work ethic can make them blind to the warning signs of being underpaid and overworked. Some managers recognise this dedication in workers and assign them the workload of multiple employees without ever offering a raise.

 

Source: https://ms.m.wikipedia.org

 

Here are five indicators that you might be underpaid and overworked:

 

1. An endless to-do list

Your to-do list grows longer each day, and you constantly find yourself having to play catch-up – even working through lunch.

Despite handling an ever-growing workload, you often do not receive compensation for your efforts. Instead, you experience stress and anxiety when you can’t complete everything, failing to realise that no single person should be responsible for such an excessive amount of work.

 

2. An impossibly packed calendar

Good workers are often scheduled for back-to-back meetings, with multiple deadlines stacked on top of each other. A packed calendar might seem like a badge of honour but it’s a sign of being overburdened and underpaid.

 

Even the best employees should not be expected to juggle so much at once. When responsibilities continue to pile up without a salary increase or support from leadership, it’s a clear indication of underpayment.

 

3. Often work beyond office hours

Does a standard 9-to-5 schedule not enough to complete your tasks? Do you find yourself starting early, staying late, and even working on weekends to keep up?

 

Perhaps you consistently check emails while on vacation, never truly disconnecting. Yet, despite working extra hours, you are not paid any extra for your dedication. Working longer and staying late in the office does not necessarily mean you are getting more done.

Studies show that people are truly productive for only about three hours a day, so working longer does not necessarily mean getting more done. Instead, it leads to exhaustion without additional compensation. 

 

4. Extra tasks without extra pay

Underpaid employees are often expected to perform duties beyond their job description. They take on additional work, learn new skills outside their role, and become the go-to person for tasks they were never hired to do.

 

While growth and learning are valuable, doing multiple jobs without an increase in salary is a sign of underpayment. When employees are repeatedly pulled away from their main role to handle unpaid labour, they may start feeling resentful, disengaged and undervalued.

 

5. Receive compliments, not remuneration

Verbal recognition is nice, but it doesn’t pay the bills. Many underpaid employees receive compliments but no financial reward for their efforts.

Being called a “rockstar” in meetings doesn’t change the fact that you are overworked and exhausted. True recognition should come in the form of fair compensation.

 

Know your worth

Employers do not “accidentally” overwork employees – it is often a calculated decision that benefits the company while leaving workers exhausted.

 

If you find yourself constantly facing any of the above, it may be time for a conversation with your manager. Your workload should be adjusted, and your pay should reflect your contributions – or it may be time to find an employer who values your hard work.

 

Reference:

5 signs you’re overworked and underpaid, Anisa Aznan/Jobstore, 19 July 2025