A monthly round-up of what the ICMR team is reading, watching, and listening to. Recommendations are based on what the team finds interesting or thought-provoking, and are not representative of ICMR’s views.

Can South Korea’s Untouchable Chaebols Change? 

Source: CNBC

This was a fascinating look at how Chaebols (South Korean family-run conglomerates) played a part in South Korea’s rapid development, and how they have evolved in today’s economy. This video also touched on how this impacts SMEs and startups in South Korea. 

AI for social good: Improving lives and protecting the planet  

Source: McKinsey

This report highlights how advancements in AI contribute towards achieving the SDGs and the risks involved in deploying new technology. With the world only on track to meet 15% of SDG targets, there is an urgent need to ramp up efforts in achieving the various SDG targets. Key findings from the report include SDGs with the highest potential impact from AI deployment and financing gaps among the SDGs.  

The Financialization of our lives: Values and trade-offs  

Source: Khazanah Research Institute

This report was a strong on-the-ground analysis of the impact of the growth of financial services amongst Malaysian households. It focuses on the rise of household debt amidst stagnating wages, the rise of “Buy now pay later” in the consumer credit system, the student loan conundrum and the myths of debt and risks in housing market.  

AI Superpowers: China, Silicon Valley, and the New World Order 

In this book, Kai-Fu explores the Sino-U.S. competition in AI, highlighting China’s rapid ascent as a global AI leader. The most interesting part about this book is that it discusses the immense potential of AI technology and its future impact, emphasising the need for cooperation and thoughtful regulation to harness its strengths effectively. A must-read if you want to know more about what AI means for us. 

STSS: Japan reports record spike in potentially deadly bacterial infection | CNN 

M’sia to seek WHO input on Japan ‘flesh-eating’ bacteria outbreak, says Dzulkefly | The Star 

Sources: CNN and The Star Malaysia

It’s time to restock sanitiser and facial masks. While COVID-19 is not completely over, another health scare has emerged. Streptococcal Toxic Shock Syndrome (STSS), caused by group A streptococcus (GAS) bacteria, could lead to another COVID-like situation given its speed of infection and severity. The average death rate is 30%, meaning 3 out of 10 infected individuals are likely to die. Japan has seen a significant increase in cases. Our health minister has reported no cases in Malaysia yet. Let us remain cautious. 

Building a cradle-to-grave care economy for Malaysia 

Source: Institute of Strategic and International Studies 

This paper highlighted the need for Malaysia to build a cradle-to-grave care economy that responds to care needs – encompassing child to elderly care and forms of specialised care like disabled or palliative care. It touches on the need to evaluate care as a public good, as well as the intersection.  

Millennials are ‘very ill-prepared’ to be the richest generation in history, wealth manager says 

Source: CNBC

This was an insightful look into how millennials are poised to become the wealthiest generation ever, with a $90 trillion wealth transfer expected over the next 20 years. The article explores their readiness to manage this wealth and contrasts their short-term financial goals with the long-term planning typical of previous generations. 

Solidarity Economics 

Source: The Institute for New Economic Thinking

This video was an interesting introduction to the concept of Solidarity Economics, which posits that an approach grounded in our instincts for connection and community will contribute to a more robust and sustainable economy. 

Joining BRICS right thing to do for Malaysia | The Star 

The Prime Minister recently announced government intention for Malaysia to join BRICS, leading to mixed reactions from the public and analysts. Supporters see this as an opportunity for Malaysia to benefit from economic and trade cooperation, with some economists suggesting it could offer an alternative to the USD by using local currencies for trade. This perspective arises mainly due to sanctions imposed on some BRICS members, like Russia and Iran, which continue trade using non-USD settlements. Opponents, however, worry that Malaysia might shift away from its Non-alignment Movement (NAM) and lean towards China and Russia, potentially positioning itself against the US and Western world. 

Establishing Islah through Islamic Finance  

Source: MIFC  

This paper provided much food for thought with regards to co-creating the next wave of Islamic finance and economics. It examined the development of Islamic finance in Malaysia from early 1980s, outlined the case of change, highlighted ten shifts for change drawing on the concept of Hijrah to Islah and proposed five key thrusts for collective action. 

Malaysia Raises Diesel Prices as It Starts Rolling Back Subsidies 

Source: Dow Jones Newswires via Morningstar 

This article explains about Malaysia that initiated an increase in diesel prices as part of its strategy to reduce fuel subsidies, aiming to save up to 4 billion ringgit annually. Although this initiative is part of the government’s plan to mitigate the impact on inflation, including setting price ceilings for logistics vehicles and providing cash handouts to small-scale farmers. The analysts expect minimal direct inflationary impact from the diesel price hike but gave caution about the potential secondary effects and future changes to RON95 fuel subsidies.