DeepSeek's AI should be a 'wakeup call' to US industry, it unveils hidden US market risk, top free downloads, effect on M’sia

Trump: China's low-cost AI should challenge American firms

 

MIAMI, Jan 27 (Reuters) - U.S. President Donald Trump said on Monday that Chinese startup DeepSeek's technology should act as spur for American companies and said it was good that companies in China have come up with a cheaper, faster method of artificial intelligence.

"The release of DeepSeek, AI from a Chinese company should be a wakeup call for our industries that we need to be laser-focused on competing to win," Trump said in Florida.

Investors sold technology stocks across the globe on Monday over concerns the emergence of a low-cost Chinese artificial intelligence model would threaten the dominance of the current U.S.-based AI leaders.

U.S. President Donald Trump speaks during a House Republican members conference meeting in Trump National Doral resort, in Miami, Florida, U.S. January 27, 2025. REUTERS/Elizabeth Frantz/File Photo Purchase Licensing Rights, opens new tab

"I've been reading about China and some of the companies in China, one in particular coming up with a faster method of AI and much less expensive method, and that's good because you don't have to spend as much money. I view that as a positive, as an asset," Trump said.

"I view that as a positive because you'll be doing that too, so you won't be spending as much, and you'll get the same result, hopefully," he said.

Trump said Chinese leaders had told him the United States had the most brilliant scientists in the world, and he indicated that if Chinese industry could come up with cheaper AI technology, U.S. companies would follow.

"We always have the ideas. We're always first. So I would say that's a positive that could be very much a positive development. So instead of spending billions and billions, you'll spend less, and you'll come up with, hopefully, the same solution," Trump said. -Reuters

DeepSeek unveils hidden US market risk

Clearly, it’s hard to know where the DeepSeek panic will lead. — Bloomberg

THE S&P 500 Index plummeted as much as 2.3% on Monday over DeepSeek, a Chinese artificial intelligence (AI) startup that developed a model competitive with the US’s very best – and, supposedly, on the cheap.

Venture capitalist Marc Andreessen called it a “Sputnik moment,” a reference to the Russian satellite that set off the 1957-1960s Space Race.

Chip companies plummeted and so did many of the communications giants developing AI tools of their own.

But the ostensible pandemonium in the world’s biggest stock market was not as widespread as you might imagine, and it seemed to abate as the trading day wore on.

With DeepSeek hype still largely indistinguishable from reality, the main lasting lesson may be that diversification still matters.

Consider the following factoids about Monday, the worst intraday selloff of 2025:

> At the time of writing, 328 stocks on the S&P 500 were up.

> The median stock was up 0.7% and the average was down just 0.2%.

> Among sectors, healthcare, consumer staples, real estate and financials were all positive on the day.

> Information technology (IT) accounted for 95% of the index move.

> Nvidia Corp, which is behind cutting edge AI chips that are also eye-poppingly expensive, accounted for about two thirds of the decline on its own.

In other words, investors would have been in a privileged position on Monday morning if they had simply rebalanced their equity investments this year into equal-weight portfolios of large-cap stocks, instead of leaning into the increasingly AI-concentrated market-capitalisation- weighted S&P 500 Index or Nasdaq 100.

I’ll admit it: betting against the cap-weighted index has been a losing proposition for the past decade and a half, but concentration risk has become a more acute problem for investors in the past two years.

S&P 500 Index investors’ exposure to IT and communication services companies is at its highest since the dot-com bubble.

Overweight tech

Tech and communications services add up to 41% of the S&P 500. And just seven companies account for about a third of the entire index by weighting.

Nvidia alone had a greater weighting than five of the 11 sectors represented in the index.

That concentration is a big reason why a Goldman Sachs Group Inc report in October suggested that the S&P 500 would deliver an annualised total return of just 3% over the next decade (or only about 1% per year if you adjust for inflation).

“Our historical analyses show that it is extremely difficult for any firm to maintain high levels of sales growth and profit margins over sustained periods of time,” Goldman wrote at the time.

It’s always technically possible that today’s index giants continue to outperform, but history is working against us.

Similarly, the research suggests that market concentration is associated with greater volatility going forward.

If the market truly underwhelms over the next decade, it may well be in the form of a crash followed by a long, gruelling recovery – rather than 10 years of nearly flat real returns.

Fortunately, elementary mitigation strategies are easy to implement, and you don’t even need options (in fact, tail hedges are very inefficient in slow-moving bear markets like the dot-com bust).

The Goldman report suggested that the equal-weighted version of the S&P 500 could outperform the S&P 500 by 200-800 basis points in the decade.

Additionally, the juicy income benefits of bond ownership may give new life to 60/40-type mixed asset class portfolios.

And investors may finally take the opportunity to add some exposure to unloved international stocks, as well as small- and mid-capitalisation US stocks that can still benefit from a strong macroeconomic backdrop.

Clearly, it’s hard to know where the DeepSeek panic will lead.

Companies representing about 38% of the S&P 500 by weighting are expected to report earnings this week, and those announcements should provide some insight into how US executives are processing the developments and help us sort hype from reality.

Even in a scenario in which the narrative proves well-founded, it’s entirely possible that a cheaper path ahead for AI turns into a net positive for many publicly traded US companies, including companies developing AI-related software, and end users.

But first, Monday’s market action may shake index tracking investors out of their complacency.

For all the strengths of the US economy and stock market, the index’s composition is tilted strongly in favour of the spectacular AI story and the premise that we’ve correctly identified the market winners.

Odds are that we have the narrative at least a little bit wrong, and investors should expect to pay for their lack of true diversification with ongoing volatility and perhaps even subpar total returns. — Bloomberg

- by Jonathan Levin,  a columnist focused on US markets and economics. The views expressed here are the writer’s own.

Chinese AI app DeepSeek tops Apple App Store’s free downloads in China and US, outpacing ChatGPT

deepseek

Chinese artificial intelligence (AI) app DeepSeek topped the Apple App Store's free downloads in both China and the US on Monday, outpacing ChatGPT in free downloads in the US. 

Following the momentum, DeepSeek-related stocks rallied strong on Monday's opening with multiple stocks opening more than 10 percent higher. 

Chinese AI startup DeepSeek in January released the latest open-source model DeepSeek-R1, which has achieved an important technological breakthrough - using pure deep learning methods to allow AI to spontaneously emerge with reasoning capabilities, the Xinhua News Agency reported. 

In tasks such as mathematics, coding and natural language reasoning, the performance of this model is comparable to the leading models from heavyweights like OpenAI, according to DeepSeek.

The app soon sparked global attention, which has Silicon Valley marveling at how its programmers nearly matched American rivals despite using relevantly less-powerful chips, according to a report from the Wall Street Journal (WSJ) on Sunday. 

For instance, "Deepseek R1 is one of the most amazing and impressive breakthroughs I've ever seen," said Marc Andreessen, the Silicon Valley venture capitalist who has been advising President Trump, in an X post on Friday.

Barrett Woodside, co-founder of the San Francisco AI hardware company Positron, said he and his colleagues have been abuzz about DeepSeek. "It's very cool," said Woodside, pointing to DeepSeek's open-source models in which the software code behind the AI model is made available free, per the WSJ report.

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DeepSeek and its effect on M’sia

Analysts are largely of the view that US president Donald Trump is unlikely to alter the directive set by former president Joe Biden regarding the limitations on exporting AI chips from the United States.

PETALING JAYA: The domestic technology sector could be in for more uncertainties as Chinese startup DeepSeek launches a free, open-source artificial intelligence (AI) model that experts say rivals OpenAI’s ChatGPT.

This comes amid heightened tensions in the AI trade, which saw a sell-off in the technology sector earlier this month after the Biden administration announced new restrictions on the export of advanced semiconductors and AI technology, citing national security concerns.

Under the new rules, Malaysia was placed in a category allowed to procure only a fixed and limited amount of such advanced technology, potentially constraining the development of its AI capabilities.

Subsequently, the local construction sector was downgraded by at least two research houses, on the basis that many of these contractors had factored in work related to the construction of data centres in Malaysia.

Analysts are largely of the view that US president Donald Trump, who aims to establish the United States as the global leader in AI, is unlikely to alter the directive set by former president Joe Biden regarding the limitations on exporting AI chips from the United States.

However, Tradeview Capital Sdn Bhd portfolio manager Ng Tzyy Loon said DeepSeek’s AI chatbot may throw the effectiveness of the proposed AI export control order into question.

“The US’s strategy to limit the development of AI in other countries by controlling their access to top-tier computing power and technology may not achieve its intended goals, as proven by the creation of DeepSeek,” he told StarBiz.

Last December, DeepSeek launched its DeepSeek-V3 model, which was reportedly developed at a much lower cost of US$5.6mil. In contrast, the training of OpenAI’s ChatGPT-4 model had reportedly required an investment of around US$100mil.

On Jan 20, the startup released another AI model, the DeepSeek-R1, which is said to rival OpenAI’s o1 (designed to complement ChatGPT) reasoning capabilities, sparking concerns over US tech dominance and prompting a reevaluation of technology companies’ lofty valuations.

The Bursa Technology Index has slipped by 0.88% since Monday. Yesterday, local technology or data centre-related stocks like YTL Power International Bhd, Inari Amertron Bhd, Nationgate Holdings Bhd and PIE Industrial Bhd fell by as much as 3%, 2%, 5% and 2%, respectively.

Major Wall Street indexes also tanked as the market digested the release of DeepSeek-R1.

The S&P 500 tumbled 1.5% while the tech-heavy Nasdaq composite sank 3.1%.

The blue-chip Dow Jones Industrial Average, which is less dependent on tech stocks, gained more than 0.6% with investors flocking to more defensive sectors.

Major tech counters like Nvidia Corp and ASML Holding NV slid as much as 17% and 6%, respectively.

Ng noted one notable aspect of DeepSeek’s AI models is their use of Nvidia’s H800 chips for training, which are not top-of-the-line chips like Nvidia’s H-100 of which the Biden administration’s latest export controls had planned to target.

“This shows that restricting access to top-tier chips may not prevent advancements in AI development, as companies can innovate around these limitations,” he said.

While this may be the case, it is important to note that the H-800 chip itself has been included in the US export restriction list since 2023.

Tradeview’s Ng also pointed out the cost and complexity of monitoring and tracking AI chip usage make enforcement highly challenging for the United States.

“While the US government can track where the AI chips are distributed, enforcing such restrictions is challenging, given the number of countries, such as Singapore, that are eager to advance their AI capabilities.

“Countries may also find ways to smuggle in AI chips like what China does, making it difficult to monitor effectively,” he said.

Ng is of the view that Trump may employ a more pragmatic approach in going about Biden’s proposed AI export control order.

“I think he may repeal the order or at the very least, adjust the rules to make the restrictions less stringent,” he said.

In a report yesterday, Kenanga Research said all eyes are now on Big Tech’s response to the AI capital expenditure ahead, with concerns surrounding the risks of a smaller addressable market for high-end chips.

“On the heels of big spending announcements of a whopping US$500bil under the joint-venture entity Stargate, the pledge to spend multiple billions by Big Tech will likely come under more scrutiny, as we expect them to carefully evaluate strategies given this AI development.

“Demand for state-of-the-art chips will still be intact in our view for firms that are pushing the envelope in developing frontier large language models, or put simply, the most advanced and cutting-edge models to understand and generate text,” the research house said.

As for the data centre play in Malaysia, Ng said it remains intact in the near term looking at the committed data centres here. However, there may be delays or uncertainties around new data centre projects.

“This is because the graphics processing unit (GPUs) already committed are well below the levels planned by major players like Nvidia and Amazon globally.

“For now, the impact should be manageable in the near to medium term, but beyond three years, further expansion could become challenging if the restrictive AI executive order really comes through,” he said.

BMI telecoms and technology industry analyst Niccolo Lombatti said it is important to note that not all Malaysian data centres rely on US-supplied chips.

“The decision of what chips to use is largely a function of its intended use case and therefore its design.

“On the one hand, some Malaysian data centres can utilise a lower number of US-supplied GPUs or chip alternatives from non-US vendors because they are looking to address demand from non-AI related use cases, or less intensive AI use cases, thus insulating them from the AI executive order’s effects,” he explained.

Nonetheless, Lombatti said the main risks arise for data centres targeting high-density AI applications, particularly those in Johor aiming to attract Singapore-based customers seeking rack densities up to or even in excess of 120 kilowatt

“Therefore, Malaysian data centres designed around high-density racks using the latest US-manufactured GPUs face greater risks over the next few years. Owners may need to slow development or scale back to lower-density designs, leading to significant capital expenditure inefficiencies,” he said.

Ng remained optimistic the country will be able to continue to attract data centre investments, underpinned by Malaysia’s cost competitiveness in terms of land, labour and electricity.

“Additionally, Malaysia’s proximity to Singapore is a key factor. The geographical location is crucial for data transfer and connectivity, and many global players already have data centres in Singapore,” he said.

On this note, Kenanga Research said contractors are more insulated in the AI race to roll out data centres given the emergence of DeepSeek could accentuate Malaysia’s position in being able to provide the brick and mortar for the data centre competitively.

As for YTL Power, the research outfit said the negatives are priced in with data centres fully discounted in its share price. At this juncture, firm takers for YTL Power’s AI data centre GPU as a service may still be needed to re-rate the stock.

YTL Power International Bhd, Inari Amertron, Nationgate Holdings and PIE Industrial closed at RM3.11, RM2.52, RM1.79 and RM4.57, respectively, yesterday.

By ELIM POON

Related posts:

DeepSeek launches new AI model as Trump cautions of ‘wake-up call’ to US industry

 

Chinese across the world, celebrate Spring Festival with traditions, travels and shopping spree, since its inclusion into the UNESCO intangible cultural heritage list.

 

Chinese New Year offers window on nation's economic vitality

Tourists pose for a selfie at a flower market in Yuexiu District, Guangzhou, south China's Guangdong Province, Jan. 27, 2025. China is alive with vibrant celebrations with the Spring Festival just around the corner. (Xinhua/Deng Hua)

With traditional fairs and shopping and travel booms over this year's extended holiday, China is about to ring in the Spring Festival of the Year of the Snake, the first since its inclusion into the UNESCO intangible cultural heritage list.

For Chinese across the world, the Spring Festival is a time for family reunions, festive traditions, holiday shopping and diverse cultural and tourism activities. This year, it falls on Jan. 29 with hundreds of millions of people traveling to reunite with families in the world's largest annual human migration.

Celebrations today highlight both traditional and modern elements, from temple fairs, lantern displays, lion dances and intangible cultural heritage bazaars to village galas, light and drone shows, museum exhibitions, and travels at home and abroad.

This year, festive glee and activities are further boosted by the UNESCO recognition, pro-consumption policies and the extension of the traditional seven-day holiday by an extra day.

FAMILY REUNIONS AND TRADITIONAL FESTIVITIES

For migrant workers like Zhang Changfu, a native of Baise in Guangxi Zhuang Autonomous Region, south China, the Spring Festival offers a rare opportunity for a family reunion.

"I've been working away from home for 20 years, but I return home every Spring Festival," said Zhang, 41, who works as a machinist in the southwestern metropolis of Chengdu, adding that he is looking forward to taking his family to the local temple fair.

The temple fair, a panoply of folk performances, local delicacies and traditional handicrafts, is a familiar sight at this time of year. While such activities contain more traditional elements in the countryside, large cities like Beijing and Shanghai have a tradition of holding large-scale fairs.

For others, like Lin Jia who works in Nanjing, capital of east China's Jiangsu Province, Spring Festival is the perfect time for a family tour. Lin's parents and grandmother have traveled from Hunan Province to join her for the holiday.

Lin plans to take them sightseeing around the city after a New Year's Eve dinner at a hotpot restaurant. "It's both a reunion and a mini vacation," she said.

This year, many cities are holding more traditional festive activities, motivated by the inscription of the Spring Festival on UNESCO's Representative List of the Intangible Cultural Heritage of Humanity in December. The southwestern megacity of Chongqing has planned more than 100 intangible cultural heritage exhibitions, bazaars and performances during the holiday.

"We hope visitors can feel the strong festive ambiance and the special charm of our cultural heritage," said Tang Mao, the organizer of a cultural heritage bazaar in Chongqing's bustling Jiefangbei commercial area, where over 40 artisans display traditional crafts like paper-cutting, New Year picture drawing and sugar-figure making.

HOLIDAY SHOPPING

For centuries, shopping has been a crucial part of Spring Festival preparations: from nice food to new clothes and carefully chosen gifts.

Liu Fengmei, a woman in her 70s in Shanghai, traveled over an hour by subway to First Foodhall, a time-honored food store on the iconic Nanjing Road, to stock up on traditional holiday snacks.

A long queue is seen outside the store, which, like many across the country at this time of the year, is filled with festive decorations and a dazzling array of traditional foods.

Following the UNESCO recognition, Chinese consumers also appear to be particularly interested in goods with a cultural festival flair.

Li Gang with the Ministry of Commerce said sales of neo-Chinese-style jewelry and goods featuring intangible cultural heritages have grown by 52.6 percent and 26.6 percent in the month-long online shopping event for the festival initiated by the ministry.

In recent years, the Spring Festival shopping lists have included more imported goods, reflecting Chinese people's rising purchasing power and growing appetite for imported quality goods.

Earlier this month, a cargo ship loaded with 20,000 tonnes of Chilean cherries arrived at the Nansha Port in south China's Guangzhou, perfectly timed to offer a festive treat for millions ahead of the Spring Festival.

"Chilean cherries, Australian lobsters and Russian snow crabs ... the prices of imported products are quite attractive, so I plan to prepare a New Year's Eve dinner that blends both Chinese and foreign flavors," said a customer surnamed Guo at a store of fresh-food chain Freshippo in Beijing.

Driven by government-subsidized trade-in programs, mobile phones, wearable devices, and green and smart home appliances are also highly sought-after items ahead of the festival, according to the ministry.

"Spending on New Year's goods can offer a glimpse into the resilience and vitality of consumption throughout the year," said Hong Tao, director of the Institute of Business Economics at Beijing Technology and Business University, who expects a new wave of holiday consumption growth.

HOLIDAY TRAVEL

In addition to local festivities, many are venturing farther afield to make the most of the eight-day Spring Festival holiday.

Fang Xue, a resident of Shanghai, plans to take her parents on a holiday trip to Shantou, a coastal city in Guangdong Province. "Traveling during the Spring Festival has become quite fashionable," Fang said. "My parents in their 80s are very eager to travel."

The extended holiday has given a boost to the travel industry. While tourist cities such as Shanghai, Beijing, Guangzhou, Hangzhou and Chengdu are attracting large numbers of holidaymakers, smaller cities are also getting more travelers who wish to savor celebrations with local flavors, according to Fliggy, a leading online travel agency.

"Expectations for intangible cultural heritage activities are especially high during the first Spring Festival after the UNESCO recognition," said Wang Liyang, operations manager at Fliggy.

Thanks to China's further easing of visa policies, many Chinese cities are also witnessing an influx of international visitors, with many eager to experience the festival traditions.

"The UNESCO heritage status gives Spring Festival worldwide recognition and increases its appeal to international tourists," said Zhou Huijie, an analyst at Trip.com research institute.

Trip.com Group has estimated that inbound bookings would jump by 203 percent during the Spring Festival, with tourists from the Republic of Korea, Malaysia, Singapore, Japan, the United States, Australia, Thailand and Britain topping the list.

Lukas Muller from Germany is traveling in northeast China's Jilin Province for skiing and to experience the Spring Festival.

"My friends and I will experience Chinese New Year up close, including eating dumplings, putting up spring couplets, setting off fireworks, and many other customs I'm not familiar with yet," he said, also praising China's visa-free policy that facilitated his trip.

Spring Festival serves as the most direct cultural window to understand the Chinese people and it is also a traditional festival with the most Chinese cultural characteristics, said Feng Jicai, a renowned Chinese writer who has long championed intangible cultural heritage protection.

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Congratulations! China's spring festival inscribed as UNESCO Intangible cultural Heritage of Humanity

 

Spring Festival customs highlighted in Xi's inspection tours embody emphasis on culture inheritance, better life

Why Chinese Spring Festival becomes a 'global moment': Global Times editorial

DeepSeek launches new AI model as Trump cautions of ‘wake-up call’ to US industry

 

DeepSeek (Chinese: 深度求索; pinyin: Shēndù Qiúsuǒ) is a Chinese artificial intelligence company that develops open-source large language models (LLM). Based in Hangzhou, Zhejiang, it is owned and solely funded by Chinese hedge fund High-Flyer, whose co-founder, Liang Wenfeng, established the company in 2023 and serves as its CEO.

deepseek

Chinese artificial intelligence (AI) startup DeepSeek on Tuesday launched a new open-source multimodal model, following the buzz generated by its cost-effective open-source reasoning model, DeepSeek-R1, which competes with rivals like OpenAI but at a significantly lower cost, sending ripples through the US stock market the day before.

According to information on the AI community platform Hugging Face on Tuesday, DeepSeek has released the open-source multimodal AI model Janus-Pro, an upgraded version of its earlier Janus model, which significantly enhances multimodal understanding and visual generation capabilities.

Its Janus-Pro-7B AI model outperformed OpenAI's DALL-E 3 and Stability AI's Stable Diffusion in a leaderboard ranking for image generation using text prompts, Reuters reported on Tuesday, according to a DeepSeek's technical report the Global Times read on Github, a proprietary developer platform. 

The latest development came after earlier in January the company released the latest open-source model DeepSeek-R1, which has achieved an important technological breakthrough - using pure deep learning methods to allow AI to spontaneously emerge with reasoning capabilities.

As a rapidly growing competitor to leading AI tools like OpenAI's ChatGPT, Google's Gemini, and others, the Chinese AI startup has garnered runaway attention in recent weeks.

US President Donald Trump said on Monday that Chinese startup DeepSeek's technology should act as spur for American companies and said it was good that companies in China have come up with a cheaper, faster method of artificial intelligence, Reuters reported Tuesday. 

"I've been reading about China and some of the companies in China, one in particular coming up with a faster method of AI and much less expensive method, and that's good because you don't have to spend as much money. I view that as a positive, as an asset," Trump said, according to Reuters. 

"The release of DeepSeek, AI from a Chinese company should be a wakeup call for our industries that we need to be laser-focused on competing to win," Trump said in Florida, according to the report. 

The remarks also came as the news around DeepSeek sent shockwaves through the AI industry, with Nvidia bearing the brunt of the sell-off. The chipmaker, a linchpin of the AI supply chain, lost over $500 billion in market value, plummeting 16.86 percent in a single day. Other major tech players, including Alphabet and Microsoft, also declined, though Meta managed to trade in positive territory, Xinhua reported. 

Nvidia issued a statement on Monday after its shares tumbled, noting DeepSeek's advances show the usefulness of its chips for the Chinese market and that more of its chips will be needed in the future to meet demand for DeepSeek's services.

"DeepSeek's work illustrates how new models can be created using that technique, leveraging widely-available models and compute that is fully export control compliant," Nvidia said in its statement.

OpenAI Chief Executive Officer Sam Altman welcomed the debut of DeepSeek's R1 model in a post on X late on Monday. "Deepseek's r1 is an impressive model, particularly around what they're able to deliver for the price. we will obviously deliver much better models and also it's legit invigorating to have a new competitor! we will pull up some releases," Altman said.

The success of DeepSeek showed that the Biden administration's four-year crackdown on China's AI and computing power has not only failed but has also spurred the country to forge a unique path for AI development, achieving significant progress in autonomous AI development, Ma Jihua, a veteran telecom industry observer, told the Global Times on Tuesday.

"While the global AI community has been focused on increasing computing power, China has been pioneering a path through algorithm optimization, opening up a new approach that is cost-effective and equally efficient. This development holds significant importance for the global AI landscape," Ma noted.

"However, with the emergence of DeepSeek and the rapid advancement of China's AI industry, there is now greater potential for complementary cooperation between China and the US. Both countries can leverage their unique strengths, making collaboration more promising than ever before," Ma said. 

Industry observers reached by the Global Times previously said while China and the US, as the two leading powers in the global AI field, compete in the AI industry, there is also significant room for cooperation, especially in AI governance.

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DeepSeek drags down YTL, tech stocks

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DeepSeek's AI should be a 'wakeup call' to US industry, it unveils hidden US market risk, top free downloads, effect on M’sia

Trump: China's low-cost AI should challenge American firms

Landlords left to foot millions in electricity bills due to tenant's illegal crypto mining

 

In a press conference yesterday, Gopeng MP Tan Kar Hing revealed that over 30 property owners had reported the issue to their service centres, with efforts underway to gather information from more than 30 additional owners. Also present were Simpang Pulai assemblyman Wong Chai Yi, and Astaka assemblyman, Jason Ng. - Pic credit Facebook/Tan Kar Hing

Gopeng MP Tan Kar Hing (in white) mingling with the bitcoin victims during a press conference at his service centre. -Ronnie Chin/The Star

KUALA LUMPUR: More than 60 shoplot owners in Ipoh are facing millions of ringgit in electricity claims after their tenants were found to be involved in illegal bitcoin mining activities.

In a press conference yesterday, Gopeng MP Tan Kar Hing revealed that over 30 property owners had reported the issue to their service centres, with efforts underway to gather information from more than 30 additional owners.

The claims range from RM30,000 to RM1.2 million per case.

Tan highlighted that these incidents exposed loopholes in the current legal framework.

"Under the Electricity Supply Act, Tenaga Nasional Bhd (TNB) bases its claims on revenue losses from electricity theft. However, the law does not require TNB to prove that the registered account holder is responsible for the theft.

"This creates a legal loophole, allowing illegal mining activities to go undetected while innocent property owners bear the financial burden," he said.

Tan also pointed out that illegal electricity connections could cause power outages, resulting in losses not only for homeowners but also for TNB and the country.

He urged the Energy Commission, under the Energy and Natural Resources Ministry and relevant enforcement agencies to take action against illegal bitcoin mining activities to prevent further crimes.

In the meantime, Tan said he would continue to raise these cases during the upcoming parliamentary session.

He also advised landlords to transfer TNB accounts into their tenants' names when renting out properties to avoid such incidents.

According to China Press, one property owner, Yen Pit Yun, said that the pressure of facing RM1.2 million in unpaid electricity bills from TNB could drive her to bankruptcy.

Yen explained that the upper floor of her two-storey shop lot in Panorama Lapangan Perdana, Simpang Pulai, was rented out to a tenant in July while she operated a hair salon on the ground floor.

"On Aug 30, I noticed the tenant carrying a large bag of thick electrical cables upstairs, which raised my suspicions and led me to file a police report. The next day, the tenant moved out unexpectedly.

"When I went upstairs to inspect the unit, I found it empty, with holes in the walls and damaged partitions, causing significant losses," she said.

She reported the incident to TNB, but two months later, she received a notice informing her of outstanding electricity bills exceeding RM1.2 million, leaving her feeling helpless.

Yen said her only hope now is the assistance of the Gopeng MP and others to resolve the debt issue.

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Landlord left with RM1.2mil TNB bill

'I Might Go Bankrupt' — M'sian Woman Gets RM1.2mil Electricity Bill Ove

https://weirdkaya-com.webpkgcache.com/doc/-/s/weirdkaya.com/msian-woman-gets-rm1-2mil-electricity-bill/

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Billed RM695,598 for electricity; beware of illegal cryptocurrency/Bitcoin mining operations  Billed RM695,598 for electricity

Parents brace for higher kindergarten and daycare rate

 

      746, Jalan Sungai Dua, Penang , Contact Person: Ms. Ling Ling mobile 012-4059013 

Parents are bracing for the increase in fees for private kindergarten and daycare centres this year, but most generally understand the financial burdens faced by operators.

Private sector employee Nisa Diana Halim, 36, said sending her four-year-old to a private centre is her only option as there are no nearby government kindergartens in her area.

Right now, she has to pay RM750 monthly for kindergarten and daycare services at a centre in Sungai Buloh, Selangor.

She currently pays RM495 per month for kindergarten fees and the rest for daycare services.

The fees have yet to be increased, but she was notified that for the 2025 term, they would be higher, she said.

“I have tried getting more details, but the school has not responded. For now, I will remain with the centre for my second born, as my eldest is already attending school and only stays at a transit centre before school.

“I prefer to send my daughter to a place I am familiar with and will prepare for the fee increase because I want the services from the school, which is close to our house,” said the mother of three.

Housewife Low Chiew Yee, 34, said her five-year-old son attends kindergarten while her three-year-old daughter is in daycare.

The kindergarten fees remain at RM405 per month, but miscellaneous charges have increased slightly.

“The increase in miscellaneous charges is less than RM50, but our monthly expenses have risen by almost RM600. However, the kindergarten offers good services, so I don’t mind,” she said.

Low has three children, with her eldest son in Year 2, costing RM500 per month, while her second son’s co-curricular classes costs RM400 monthly.

Due to rising costs, she had to drop some enrichment classes for her children.

“With only my husband working, I stay at home to take care of the children and manage school runs. We save wherever we can,” she added.

Another parent, Lim Li Wei, 38, said she anticipated the increase in fees since the government announced an increase in the minimum wage last year.

She has received a notice on the potential of fee increases from her daughter’s kindergarten, but no amount was specified.

“My daughter’s kindergarten fees were RM380 per month and now, for a five-year-old, it’s RM400,” she said.

A bank employee, Karlye Fong, 35, said her child’s kindergarten fees increased from RM400 to RM420 per month this year, which is still manageable.

“Our child is at the kindergarten from 8am to noon every day. Fortunately, my parents help with pick-ups, saving us transportation costs,” said the mother of one.

Fong said working in a financial institution means her daughter’s medical expenses are covered by the company under the dependant category.

“My daughter’s clinic fees range from RM100 to RM200 per month. If she is hospitalised, even though the insurance covers the expenses, we still pay RM350 monthly for insurance,” she said in emphasising their commitment to their daughter’s education over the long term.

Soleha Amin said it is necessary for her children to attend kindergarten even if the fees are increased.

“Right now, children are advanced due to social media and technology; parents send their children to preschool to compete. As much as I want to educate them myself, I won’t be able to catch up as I need to work.

“I chose private kindergartens because they offer multilingual classes, and this will help them when they enter primary school. If public kindergartens offer similar options, I would have sent them there, but government centres are always full.

“As a parent, I am willing to work extra hard for my children’s future. I am aware there are subsidies, but unfortunately, I am in the middle-income group. I hope the government can consider expanding aid for those of us who are supporting the private education sector,” she said.

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