Aurelia Butler

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KUALA LUMPUR (Reuters) – On its website, Global Ikhwan Services and Business Holdings (GISB) describes itself as a Malaysian conglomerate with a vision to implement the Islamic way of life in line with the teachings of the Prophet Muhammad.But the rescue this week of hundreds of children and youths from what Malaysian authorities said was suspected sexual abuse at charity homes allegedly run by GISB has put back in the spotlight the firm’s roots in a religious sect outlawed by the government three decades ago.GISB acknowledges links to the religious sect Al-Arqam, which was banned in 1994, and names the sect’s late preacher Ashaari Muhammad as its founder, but has largely sought to distance itself from the group’s practices and beliefs, which the government views as heretical.GISB has said it did not run the homes and has denied all allegations of abuse. In a video posted on Facebook (NASDAQ:META), however, its chief executive said the firm had broken unspecified laws and that there were ‘one or two’ cases of sodomy at the youth homes.In 2011, GISB made headlines for its controversial views on sex and marriage, which included encouraging polygamous families and setting up the Obedient Wives’ Club, a group that called on wives to submit to their spouses “like prostitutes”.    The police raids on the charity homes in two Malaysian states this week came after several Islamic leaders called on the government to probe GISB’s activities. Abu Hafiz Salleh Hudin, a lecturer on Islam at the International Islamic University of Malaysia, said he was aware of reports made to Malaysia’s Islamic Development Department (Jakim) about worker exploitation and deviant teachings at GISB as far back as a decade ago.”They would stress that they were exploited, and they were not being paid for work,” he told Reuters, citing reports made by former GISB members. The former members had also held on to Al-Arqam’s teachings and beliefs, Abu Hafiz added. Police say they are investigating other allegations, including money laundering. Authorities say they also plan to scrutinise religious schools run by GISB while Jakim said it would present a report into deviant teachings involving the firm to the cabinet.Police say most of the youths rescued from the homes in two Malaysian states were children of GISB members. Many showed signs of abuse, neglect and emotional trauma, while 13 had been sodomised, officials said on Friday. ‘HIDING UNDER VEIL OF LEGITIMACY’Residents in Bukit Beruntung, a town in which a police source and locals said authorities had raided several youth homes, expressed shock at the abuse allegations.”If it’s true, then that is really worrying,” said Mohd Khair Syafie, the imam of a surau, or Muslim prayer hall, in the town, some 50 km (31 miles) outside the capital.Ashaari Muhammad founded the Al-Arqam movement in 1968, which was initially focused on discussing religious issues. In the 1980s, the group, which had tens of thousands of followers, was condemned by Malaysia’s religious authorities over what they said were deviant teachings by Ashaari, whose followers claimed he had supernatural powers and could defer death.Ashaari, who had five wives and 37 children, spent two years in prison in the 1990s and died in 2010. In 2006, Malaysia’s government outlawed Rufaqa Corp, another company founded by Ashaari, which it described as an attempt to revive Al-Arqam. A Rufaqa official at the time denied it had an other agenda than preaching Islam and building its business. In an August interview with business daily The Malaysian Reserve, GISB said the company was rebranded from Rufaqa Corp and reiterated it was a commercial entity compliant with Islam. Munira Mustaffa, executive director of security consultancy Chasseur Group, said GISB’s businesses appeared to help it “hide under the veil of legitimacy.””Living in a country where they know they are being watched, GISB have been careful to present themselves as entrepreneurial individuals and legitimate businesspeople,” said Munira. “But at the same time, they follow the same template as other isolationist communities or cults.” More

TOKYO (Reuters) -Sanae Takaichi, Japan’s minister in charge of economic security and a leading candidate in the ruling party’s leadership race, said on Saturday the central bank should maintain ultra-low interest rates to support the fragile economic recovery.”Frankly, it was too early,” she told a news conference gathering the nine candidates running in the race, when asked about the Bank of Japan’s (BOJ) interest rate hikes this year.”Interest rates ought to be kept low,” said Takaichi, who is emerging as a strong candidate for the leadership of the Liberal Democratic Party (LDP).Takaichi’s remarks follow those she made on her personal YouTube channel on Friday stressing the need to maintain fiscal and monetary support for the economy.The BOJ ditched negative interest rates in March and raised short-term rates to 0.25% in July on the view the economy was making progress toward durably achieving its 2% inflation target.BOJ Governor Kazuo Ueda has signalled the bank’s readiness to raise rates further if inflation stays around 2% in coming years accompanied by solid wage gains, as it currently projects.The LDP will choose a new leader on Sept 27, with the winner due to take over as prime minister due to the party’s majority in parliament.Incumbent Prime Minister Fumio Kishida announced last month that he would step down as LDP chief in September, effectively ending a three-year term as leader of the world’s fourth-largest economy.A majority of economists polled by Reuters expect the BOJ to raise rates again this year with more than three-quarters of them betting on a December hike. None in the poll projected a rate increase next week.Most of the LDP candidates have called for a spending package to cushion the blow of rising living costs, without elaborating on how to fund this additional cost.An outlier was Taro Kono, minister in charge of digitalisation, who said boosting expenditure or maintaining generous subsidies won’t necessarily prop up economic growth.Japan must debate how to improve fiscal health, as rising interest rates will increase the cost of funding its huge public debt, Kono said on Saturday.Another candidate and ruling party official, Toshimitsu Motegi, said the government could pay for various spending by tapping the huge reserves set aside for currency intervention.While most of the reserves are currently invested in U.S. government bonds, Japan can consider investing part of the funds in other assets to reap better returns, Motegi said. More

Trump’s concept envisions a broad national investment initiative, while Biden’s plan focuses more narrowly on securing critical resources in technology, energy, and supply chains. Sovereign wealth funds are state-owned investment entities that invest in financial assets like stocks, bonds, real estate, and other ventures. Countries like Norway, Saudi Arabia, and China have used SWFs to diversify their economies, stabilize budgets, and reinvest national revenues, often from natural resources or surpluses. The aim is typically to generate long-term returns that can fund future government spending or strengthen national interests.The U.S. version of a sovereign wealth fund has been floated in two distinct forms. During a speech at the New York Economic Club, Trump called for the creation of a fund that could invest in major national projects, with profits used to finance tax cuts and reduce national debt. The Biden administration, in contrast, is reportedly exploring a more targeted fund aimed at strategic sectors like technology and energy, with a particular focus on strengthening key links in global supply chains. TD Cowen analysts express skepticism about the feasibility of a broad U.S. SWF. They argue that such a fund would be vulnerable to political motivations, with investment decisions potentially shaped more by political agendas than by the goal of maximizing returns for taxpayers. This could lead to public outcry if investments were seen as benefiting certain sectors or interests over others. Moreover, any investment losses could become highly politicized, with immediate repercussions for the administration in charge, while gains would take years to materialize, limiting the political benefits.“Trump reportedly wants to finance the fund with tariffs, though we believe this would require legislation,” the analysts said. This redirection of resources could lead to higher national debt and increased costs for consumers and businesses tied to rising Treasury rates.While a broad U.S. SWF modeled on those of Saudi Arabia or Norway seems unlikely, TD Cowen sees potential for a more focused, national security-driven fund. Such a fund would align more closely with the Biden administration’s goals of securing critical industries and technologies, particularly in the face of increasing global competition from countries like China. By framing the fund as a national security priority rather than a purely financial initiative, the administration might be able to garner bipartisan support.In this scenario, investments could focus on industries such as semiconductors, renewable energy, and supply chain resilience. Rather than attempting to achieve broad economic returns, the primary objective would be to ensure U.S. competitiveness and security in strategic sectors, potentially bypassing some of the political hurdles that would accompany a more general investment fund.One potential consequence of these discussions is a renewed debate over the idea of investing Social Security funds in the stock market to increase returns. This concept was a hotly debated issue in the early 2000s, with advocates arguing that it could help shore up the long-term solvency of the Social Security system. However, the 2008 financial crisis, which saw the stock market plummet by nearly 50%, largely ended the push for Social Security market investments.Despite this, TD Cowen analysts suggest that the idea could make a comeback as the financial pressures on the Social Security system intensify. “This may re-ignite the debate about whether Social Security funds should be invested in the market to boost returns,” the analysts said. While politically contentious, this issue may gain more traction as financial realities force difficult choices about the future of the program. More

As the demand for data storage, processing, and transmission continues to rise, the industry supporting data center construction and operation has grown into a massive global market. “We estimate data center capex was $215bn globally in 2023,” said analysts at BofA Securities, with an estimated 74% of that spend directed toward IT equipment, including servers, networking, and storage.The remainder of 26%—goes toward the construction, installation, and infrastructure that houses and supports this IT equipment.Building a data center involves numerous components, each playing a critical role in its functionality. “We estimate the all-in cost of building a data center to be $38mn/MW. IT equipment costs (servers, networking, and storage) are ~$30mn/MW,” the analysts said.The vendors involved in constructing these centers span various industries, from server manufacturers to electrical equipment providers. For servers, which make up the largest proportion of data center costs, companies like Dell Technologies (NYSE:DELL), Hewlett Packard Enterprise (NYSE:HPE), and Lenovo play major roles. Original Design Manufacturers like Quanta and Wistron also have a big presence, especially in hyperscale data centers where custom-built hardware is often preferred.On the electrical infrastructure side, companies like Schneider Electric (EPA:SCHN), Vertiv, and Eaton (NYSE:ETN) dominate. Schneider leads the market for electrical equipment, including uninterruptible power supplies, switchgear, and power distribution units.For thermal equipment, used to manage the intense heat generated by high-density servers, Vertiv is the market leader, followed closely by Johnson Controls (NYSE:JCI), Trane, and Daikin.The growth of artificial intelligence is driving a transformation in data center design and construction. AI workloads, particularly those related to machine learning and deep learning, are far more power-intensive than traditional applications. AI chips, such as GPUs and specialized AI accelerators, require three to four times more electrical power than conventional CPUs. As a result, data centers catering to AI applications need enhanced power and cooling capabilities to support these high-performance systems.This shift is already accelerating the data center market. “The AI chip market to reach ~$200bn in 2027, up from $44bn in 2023,” the analysts said.The growing adoption of AI is expected to drive the demand for data centers, with an 18% compound annual growth rate forecasted for data centers (measured by electrical capacity) from 2018 to 2023​. The shift toward higher power densities and AI-specific workloads is also contributing to the rise of liquid cooling systems, as traditional air-cooling methods struggle to keep up with the increased heat generated by AI processors​.Managing heat is one of the most critical challenges in modern data centers, especially with the rising adoption of AI hardware. The power densities of AI chips are pushing the limits of conventional air-cooling systems. In response, data center operators are increasingly turning to liquid cooling solutions. Liquid cooling, which involves circulating cooled liquids directly to server components, is far more efficient than air cooling and can handle the extreme thermal loads generated by modern AI processors.BofA Securities flags that while air cooling still dominates the market, liquid cooling is quickly gaining ground, particularly for high-performance workloads. Direct-to-chip liquid cooling, which transfers heat from the server’s processors to a circulating liquid, is emerging as the preferred method. This solution can cool racks with power densities exceeding 110 kW, far beyond the capacity of air-cooling systems, which max out around 70 kW per rack.Immersion (NASDAQ:IMMR) cooling, another method where servers are submerged in dielectric fluids, is also seeing increased interest, though it remains a niche technology. Immersion cooling can offer even greater thermal capacity, making it suitable for specialized applications such as cryptocurrency mining and AI​.The data center industry comprises a diverse set of vendors, each specializing in different aspects of the facility’s infrastructure. Schneider Electric, for example, leads the market in electrical infrastructure, providing critical components such as UPS systems, switchgear, and PDUs. Vertiv dominates the thermal management sector with its range of cooling solutions, including computer room air handlers (CRAHs) and liquid-cooling systems.For servers, Dell Technologies holds the largest share among original equipment manufacturers, followed by Hewlett Packard Enterprise and Lenovo. In terms of networking equipment, Cisco (NASDAQ:CSCO) remains the dominant player, with nearly 28% market share. Other notable vendors include Arista Networks (NYSE:ANET) and Huawei, which also supply high-performance networking solutions essential for data center connectivity.On the construction and engineering front, firms like Jacobs, Fluor (NYSE:FLR), and AECOM play a vital role in designing and building the physical structures of data centers. These companies are responsible for ensuring that data centers meet the stringent requirements for power, cooling, and security, while also adhering to local building codes and regulations. As per BofA Securities, engineering services for data centers represent a $2.3 to $2.8 billion market​.The future of data centers is shaped by several key trends. AI is driving the demand for more powerful, efficient facilities with greater power and cooling capacities. The shift toward higher rack densities and liquid cooling is already underway, with many data centers retrofitting their existing infrastructure to accommodate these changes. Over the next few years, BofA Securities forecasts a 14% CAGR in total data center spending, reaching $311 billion by 2026​.In parallel, the rise of hyperscale data centers—massive facilities owned by tech giants like Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOGL), and Microsoft—is changing the landscape. These facilities are pushing the envelope in terms of both scale and technology, with advanced cooling systems and custom-designed servers becoming the norm. This trend is also fueling innovation among the vendors that supply these critical systems. More