Pressure piles on China Evergrande with chairman Hui Ka Yan under police surveillance

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HONG KONG: The chairman of China Evergrande Group has been placed under police surveillance, Bloomberg News reported on Wednesday (Sep 27), ratcheting up pressure on the embattled developer whose outlook has already darkened significantly this week.

Citing people with knowledge of the matter, the report said Hui Ka Yan was taken away by police earlier this month and is being monitored at a designated location.

It was not clear why Hui was placed under residential surveillance, Bloomberg News said, adding the move was a type of police action that falls short of formal detention or arrest and does not mean Hui will be charged with a crime.

Reuters could not immediately verify the Bloomberg report. Evergrande did not immediately respond to a Reuters request for comment.

Earlier this month, police in southern China detained some staff at Evergrande wealth management unit, suggesting a new investigation that could add to the property giant’s woes.

Evergrande is the world’s most indebted property developer and is at the centre of a crisis in China’s property sector, which has seen a string of debt defaults since late 2021 that has dragged on the growth of the world’s second-largest economy.

The company rattled markets afresh when it said on Sunday it could not issue new bonds as part of its offshore debt restructuring plans because of a regulatory investigation into its main Chinese unit, Hengda Real Estate.

Then Hengda said on Monday it had failed to pay the principal and interest on a 4 billion yuan (US$547 million) bond due by a Sep 25 deadline.

China Evergrande Group’s shares rose nearly 4 per cent in early trading on Wednesday.

The rise came despite growing uncertainty about the cash-strapped developer after Reuters reported that some of its offshore creditors were planning to join a liquidation court petition filed against the company if it does not submit a new debt revamp plan by end of next month.

Evergrande’s Hong Kong-listed shares opened down 3.8 per cent at HK$0.38, but reversed losses and were up nearly 4 per cent in early trade.

Markets are also focused on another major Chinese developer, Country Garden, which is facing a new bond coupon repayment deadline on Wednesday.

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Russia mulls joining China in banning Japanese seafood imports

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Rosselkhoznadzor said it had sent a letter to Japan on the need to hold talks and requesting information on Japan’s radiological testing of exported fish products by Oct 16, including tritium. Japan will scrutinise Tuesday’s announcement by Russia, the top Japanese government spokesperson Hirokazu Matsuno said on Wednesday. Japan saysContinue Reading

‘High-growth, high-value’: Malaysia’s rare earths industry getting a push, but splitting public opinion too

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GERIK, Perak: Mr Ai Chuan Din Chum is aware that his village, Kampung Pong in the northwestern state of Perak, is located in an area that contains many natural resources that he believes has always been eyed by outsiders.

The former chief of the small quaint Siamese village located in a valley about 20 kilometres from the Malaysia-Thai border claimed that the area contains resources such as barite, tin ore, precious metals, and even gold. 

“Over the years many people have come here. There is so much here, even under this earth,” the 70-year-old told CNA recently at his village.

Kampung Pong — accessible by a winding and hilly tarred road that allows only one vehicle to pass through at most stretches — is the closest settlement to a pilot “non-radioactive rare earth element” (NR-REE) mining project in Malaysia that began operations in March 2022. 

There are about 200 people living in the village, with most of them working as general labourers or in informal jobs. 

While Mr Ai Chuan and the other villagers are not directly involved in the NR-REE mining project located about seven kilometres away from the village via a dirt road, he told CNA that he had previously been hired to recee the area several times over the past few years for foreign businessmen. 

He added that he is not sure what the rare earth elements are about exactly but believes that the interested parties wanted to extract some “chemicals” from the ground. 

“They were doing some sort of tests with these chemicals. I was told that they wanted to make batteries for handphones or electronics with these chemicals,” he said.  

JUMPING ON THE BANDWAGON

Rare earth elements are used in everyday consumer electronic devices such as laptops, cameras, televisions, and smartphones.

They are also considered critical for the development of so-called green infrastructure like renewable energy sources as well as electric vehicles (EV). 

China controls the market for rare earth elements, producing about 70 per cent of the world’s supply while processing nearly 90 per cent of it. 

And as the use of rare earth elements gains more importance, Malaysia is jumping on the bandwagon to begin the mining of these elements and establish a full-fledged industry in the country under one of its high-growth, high-value (HGHV) sector initiatives.   

Prime Minister Anwar Ibrahim told Parliament on Sep 11 that the government plans to ban the export of rare earth raw materials to avoid the exploitation and loss of resources, as well as to guarantee maximum returns for the country.

He added that a new National Mineral Policy would be drafted to drive the comprehensive development of the mineral industry based on the “principles of sustainability and responsibility”. 

The policy, Mr Anwar said, would be used as a guide in carrying out mining activities in permanent forest reserves, environmentally sensitive areas (ESA), and protected areas.

“Detailed mapping of rare earth element resources and a comprehensive business model that integrates upstream, midstream and downstream industries will be developed to maintain the rare earth value chain in the country,” he said then. 

In this context, upstream refers to mining activities, while midstream is the process that retrieves the rare earth elements.   

Downstream meanwhile refers to the industry that uses the rare earth elements to manufacture products such as super magnets.    

Mr Anwar noted that the rare earth industry was expected to contribute RM9.5 billion (US$2.03 billion) to Malaysia’s gross domestic product in 2025, with the industry expected to create 7,000 new jobs.

Malaysia’s Minister of Natural Resources, Environment and Climate Change Nik Nazmi Nik Ahmad told CNA that the country currently has an estimated 16.2 million tonnes of NR-REE deposits in the country, with a potential estimated value of up to US$182 billion.

“The significance to push on (in) the rare earth minerals (industry) is due to the impact it can bring to the national economy,” he said in a written response to CNA’s queries. 

He added that a set of standard operating procedures (SOP) for NR-REE mining has been presented and agreed in principle by the Cabinet, but that it would not be made public until a comprehensive policy on the rare earth industry is developed and finalised. 

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How Malaysia’s plan to develop its rare earths industry is raising economic hopes and environmental concerns too

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GERIK, Perak: Mr Ai Chuan Din Chum is aware that his village, Kampung Pong in the northwestern state of Perak, is located in an area that contains many natural resources that he believes has always been eyed by outsiders.

The former chief of the small quaint Siamese village located in a valley about 20 kilometres from the Malaysia-Thai border claimed that the area contains resources such as barite, tin ore, precious metals, and even gold. 

“Over the years many people have come here. There is so much here, even under this earth,” the 70-year-old told CNA recently at his village.

Kampung Pong — accessible by a winding and hilly tarred road that allows only one vehicle to pass through at most stretches — is the closest settlement to a pilot “non-radioactive rare earth element” (NR-REE) mining project in Malaysia that began operations in March 2022. 

There are about 200 people living in the village, with most of them working as general labourers or in informal jobs. 

While Mr Ai Chuan and the other villagers are not directly involved in the NR-REE mining project located about seven kilometres away from the village via a dirt road, he told CNA that he had previously been hired to recee the area several times over the past few years for foreign businessmen. 

He added that he is not sure what the rare earth elements are about exactly but believes that the interested parties wanted to extract some “chemicals” from the ground. 

“They were doing some sort of tests with these chemicals. I was told that they wanted to make batteries for handphones or electronics with these chemicals,” he said.  

JUMPING ON THE BANDWAGON

Rare earth elements are used in everyday consumer electronic devices such as laptops, cameras, televisions, and smartphones.

They are also considered critical for the development of so-called green infrastructure like renewable energy sources as well as electric vehicles (EV). 

China controls the market for rare earth elements, producing about 70 per cent of the world’s supply while processing nearly 90 per cent of it. 

And as the use of rare earth elements gains more importance, Malaysia is jumping on the bandwagon to begin the mining of these elements and establish a full-fledged industry in the country under one of its high-growth, high-value (HGHV) sector initiatives.   

Prime Minister Anwar Ibrahim told Parliament on Sep 11 that the government plans to ban the export of rare earth raw materials to avoid the exploitation and loss of resources, as well as to guarantee maximum returns for the country.

He added that a new National Mineral Policy would be drafted to drive the comprehensive development of the mineral industry based on the “principles of sustainability and responsibility”. 

The policy, Mr Anwar said, would be used as a guide in carrying out mining activities in permanent forest reserves, environmentally sensitive areas (ESA), and protected areas.

“Detailed mapping of rare earth element resources and a comprehensive business model that integrates upstream, midstream and downstream industries will be developed to maintain the rare earth value chain in the country,” he said then. 

In this context, upstream refers to mining activities, while midstream is the process that retrieves the rare earth elements.   

Downstream meanwhile refers to the industry that uses the rare earth elements to manufacture products such as super magnets.    

Mr Anwar noted that the rare earth industry was expected to contribute RM9.5 billion (US$2.03 billion) to Malaysia’s gross domestic product in 2025, with the industry expected to create 7,000 new jobs.

Malaysia’s Minister of Natural Resources, Environment and Climate Change Nik Nazmi Nik Ahmad told CNA that the country currently has an estimated 16.2 million tonnes of NR-REE deposits in the country, with a potential estimated value of up to US$182 billion.

“The significance to push on (in) the rare earth minerals (industry) is due to the impact it can bring to the national economy,” he said in a written response to CNA’s queries. 

He added that a set of standard operating procedures (SOP) for NR-REE mining has been presented and agreed in principle by the Cabinet, but that it would not be made public until a comprehensive policy on the rare earth industry is developed and finalised. 

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‘High-growth, high-value’: Malaysia’s rare earths industry getting a push, but splitting public opinion too

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On:
In: Asia

GERIK, Perak: Mr Ai Chuan Din Chum is aware that his village, Kampung Pong in the northwestern state of Perak, is located in an area that contains many natural resources that he believes has always been eyed by outsiders.

The former chief of the small quaint Siamese village located in a valley about 20 kilometres from the Malaysia-Thai border claimed that the area contains resources such as barite, tin ore, precious metals, and even gold. 

“Over the years many people have come here. There is so much here, even under this earth,” the 70-year-old told CNA recently at his village.

Kampung Pong — accessible by a winding and hilly tarred road that allows only one vehicle to pass through at most stretches — is the closest settlement to a pilot “non-radioactive rare earth element” (NR-REE) mining project in Malaysia that began operations in March 2022. 

There are about 200 people living in the village, with most of them working as general labourers or in informal jobs. 

While Mr Ai Chuan and the other villagers are not directly involved in the NR-REE mining project located about seven kilometres away from the village via a dirt road, he told CNA that he had previously been hired to recee the area several times over the past few years for foreign businessmen. 

He added that he is not sure what the rare earth elements are about exactly but believes that the interested parties wanted to extract some “chemicals” from the ground. 

“They were doing some sort of tests with these chemicals. I was told that they wanted to make batteries for handphones or electronics with these chemicals,” he said.  

JUMPING ON THE BANDWAGON

Rare earth elements are used in everyday consumer electronic devices such as laptops, cameras, televisions, and smartphones.

They are also considered critical for the development of so-called green infrastructure like renewable energy sources as well as electric vehicles (EV). 

China controls the market for rare earth elements, producing about 70 per cent of the world’s supply while processing nearly 90 per cent of it. 

And as the use of rare earth elements gains more importance, Malaysia is jumping on the bandwagon to begin the mining of these elements and establish a full-fledged industry in the country under one of its high-growth, high-value (HGHV) sector initiatives.   

Prime Minister Anwar Ibrahim told Parliament on Sep 11 that the government plans to ban the export of rare earth raw materials to avoid the exploitation and loss of resources, as well as to guarantee maximum returns for the country.

He added that a new National Mineral Policy would be drafted to drive the comprehensive development of the mineral industry based on the “principles of sustainability and responsibility”. 

The policy, Mr Anwar said, would be used as a guide in carrying out mining activities in permanent forest reserves, environmentally sensitive areas (ESA), and protected areas.

“Detailed mapping of rare earth element resources and a comprehensive business model that integrates upstream, midstream and downstream industries will be developed to maintain the rare earth value chain in the country,” he said then. 

In this context, upstream refers to mining activities, while midstream is the process that retrieves the rare earth elements.   

Downstream meanwhile refers to the industry that uses the rare earth elements to manufacture products such as super magnets.    

Mr Anwar noted that the rare earth industry was expected to contribute RM9.5 billion (US$2.03 billion) to Malaysia’s gross domestic product in 2025, with the industry expected to create 7,000 new jobs.

Malaysia’s Minister of Natural Resources, Environment and Climate Change Nik Nazmi Nik Ahmad told CNA that the country currently has an estimated 16.2 million tonnes of NR-REE deposits in the country, with a potential estimated value of up to US$182 billion.

“The significance to push on (in) the rare earth minerals (industry) is due to the impact it can bring to the national economy,” he said in a written response to CNA’s queries. 

He added that a set of standard operating procedures (SOP) for NR-REE mining has been presented and agreed in principle by the Cabinet, but that it would not be made public until a comprehensive policy on the rare earth industry is developed and finalised. 

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India would look into any ‘specific’ info on Sikh separatist killing in Canada: Minister

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India’s foreign minister, Subrahmanyam Jaishankar, said on Tuesday (Sep 26) that India has told Canada it was open to looking into any “specific” or “relevant” information it provides on the killing of Sikh separatist Hardeep Singh Nijjar. Prime Minister Justin Trudeau said last week that Ottawa had credible intelligence linkingContinue Reading

Commentary: Will ASEAN’s first joint military exercise prepare it for future crises?

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A SIGNAL TO MAJOR POWERS

What objective does the ASEAN Solidarity Exercise 2023 serve?

First, the exercise could be interpreted as a signal to major powers that ASEAN has a stake in the security of regional waters and the agency to secure them. Given the tension between China and the United States, there have been concerns among ASEAN defence officials that any China-US military conflict will affect regional waters.

In addition, the exercise was held at a time of increasing Chinese assertiveness in the South China Sea, from harassing several ASEAN members’ maritime activities within their exclusive economic zones to releasing a new map claiming nearly the entire South China Sea as its own.

In fact, the initial exercise location in the South China Sea suggests a signal by Indonesia to China that the latter’s claim to the entire South China Sea is contested.

Second, the exercise enabled ASEAN military forces to build trust with each other without the involvement of external forces. Trust leads to better communication, critical if ASEAN needs to harness the region’s military forces to deal quickly with a major crisis.

Currently, there are several regional multilateral arrangements to enhance maritime security. These include coordinated patrols between Malaysia, Indonesia and the Philippines to deal with security issues in the Sulu Sea, and the Malacca Straits Patrol Framework involving Indonesia, Malaysia, Singapore and Thailand to ensure the security of the Straits of Malacca and Singapore.

But these are limited to specific geographical parts of the region and do not involve all ASEAN members.

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