Now’s the time for Japan to join AUKUS

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In a report on the Indo-Pacific Tilt, the UK House of Commons Foreign Affairs Committee stated that there would be greater technology and security benefits if Japan joined its Strand B, or Pillar 2, cooperation in the development of advanced military technologies and increased interoperability between AUKUS members’ armed forces.

The committee’s report calls for the United Kingdom to propose to Australia and the United States that Japan, along with South Korea, participate in an AUKUS technical defense cooperation agreement focused solely on Strand B activities.

Strand B designates cooperation in advanced technology areas, including undersea capabilities, quantum technologies, artificial intelligence, advanced cyber, hypersonic weapons, electronic warfare, innovation and information sharing.

These advanced capabilities are critical in reinforcing the integrated deterrence capabilities of the United States’ Indo-Pacific allies, including Japan.

Since Japan already has a defense cooperation framework for joint research and development with the United States, the United Kingdom, and Australia, there is a foundation for AUKUS-Japan cooperation. But cooperation based on the current frameworks is project-based, with an emphasis on basic technologies rather than a list of priority capabilities, unlike AUKUS. 

For example, most of the joint research with the United States involves technologies directly related to equipment, such as next-generation amphibious technology and modular hybrid electric drive vehicle systems. Based on this background, Japan could considerably benefit from participating in AUKUS Pillar 2.

The AUKUS nuclear submarine deal is making ripples across the Indo-Pacific. Image: US Embassy in China

The Japanese government stated in the National Defense Strategy 2022 that leveraging cutting-edge technologies for defense has become critical. Japan, which has high technological capabilities, needs to cooperate with its allies and mobilize their technological capabilities to prepare for a long-term race for technological leadership. 

Because advantages in critical and emerging technologies covered by Pillar 2 of AUKUS will directly translate into military advantages, having access to these technologies will deter potential adversaries in the Indo-Pacific.

Given Japan’s declining economic power, its future science and technology investment will likely also decline. Japan can acquire critical and emerging technologies more efficiently by closely collaborating with allies and partners. Cooperation through an expanded AUKUS Pillar 2 agreement would allow its members to complement each other’s capability gaps and leverage economies of scale.

Most importantly, it will promote the internationalization of Japan’s defense industry. For a long time, the Japanese defense industry’s only client was the Japanese Ministry of Defense and Self-Defense Forces.

But they are undergoing major changes, relaxing the restrictions on defense equipment transfer and promoting exports. Strengthening ties between the defense industries of Japan and AUKUS members is a good opportunity to improve the Japanese industry’s competitiveness. 

In Japan, investment in critical and emerging technologies has been driven by civilian usage. In 2020, defense-related procurement from domestic manufacturers made up less than 1% of Japan’s total industrial production value.

The Japanese defense industry must become more internationally oriented. Although joint research and development takes time, the expanded AUKUS group can create an opportunity for Japanese defense manufacturers to learn the marketing and sales know-how of defense equipment from AUKUS partners.

But before it can join AUKUS, there are challenges Japan needs to overcome. The most critical issue is the lack of an adequate security clearance system. 

The Act on the Protection of Specially Designated Secrets, the only existing law on information security in Japan, limits the scope of information that can be classified as state secrets to four areas: diplomacy, defense, prevention of espionage, and prevention of terrorism. 

It does not cover information in economic and technological fields, and without a security clearance system in these areas, Japanese manufacturers will struggle to access classified information in joint developments. Japan needs a security clearance system before it joins AUKUS.

Additionally, Japan is striving to become a major arms exporter like the United States and the United Kingdom, so there are concerns about potential conflicts of interest. The heart of AUKUS is reminiscent of Japan’s efforts to sell its conventionally-powered submarines in 2015. 

But considering the lead time to acquire effective deterrence capabilities in the critical theatre of the Indo-Pacific, this is not the time for commercial clashes. Japan should accept the division of labor within the extended AUKUS framework.

Given the military-oriented nature of AUKUS, Japan joining AUKUS would signal to China that it is part of the “integrated deterrence” network the United States promotes.

The USS Carl Vinson aircraft carrier with Japan Maritime Self-Defense Force destroyers conducting an exercise in the Philippine Sea in February 2018. Photo: US Navy via AFP
The USS Carl Vinson aircraft carrier with Japan Maritime Self-Defense Force destroyers conducting an exercise in the Philippine Sea in February 2018. Photo: US Navy

Considering that China, Japan, and South Korea are working together to revitalize the dialogue channel through the Japan-China-South Korea trilateral summit, policymakers in Tokyo may feel that the timing is inappropriate.

But the security environment in East Asia is more dire than ever, and technology implementation takes years, especially the critical and emerging technologies that define future victories. The United States has also expressed a positive attitude toward the expansion of AUKUS’ Pillar 2 membership. 

Japan cannot afford to delay its efforts to strengthen its defense industrial base with these technologies. Now is the time to accelerate discussions on Japan’s participation in AUKUS.

Rena Sasaki is a PhD student at the School of Advanced International Studies, Johns Hopkins University and a Fellow of the Pacific Forum’s Next Generation Young Leaders Program.

This article was originally published by East Asia Forum and is republished under a Creative Commons license.

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Man who allegedly swapped S8,000 Tiffany diamond ring with replica charged with cheating

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SINGAPORE: A man who allegedly swapped a Tiffany diamond ring worth S$318,000 (US$238,000) with a replica at The Shoppes at Marina Bay Sands was charged with cheating on Wednesday (Nov 22).

Wu Youquan, a 43-year-old Chinese national, was handed one charge of cheating by deceiving a shop employee on Nov 20 into believing that he was interested in buying the diamond ring.

The address stated in the charge sheet corresponds with the Tiffany & Co store in Basement 1 of The Shoppes.

He held the ring in his hand and diverted the employee’s attention to other rings, according to the police in an earlier media release.

When she looked away, Wu swapped the genuine ring with a replica.

However, the employee realised that the price tag on the replica had a different texture and alerted in-house security.

Wu was detained and the genuine ring was found on him. He was arrested at the scene.

Wu was remanded for investigations and will return to court next week. If convicted of cheating, he could be jailed for up to 10 years and fined.

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US yielding its submarine warfare edge over China

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China’s rapid advancements in submarine technology and detection capabilities are challenging the US’s long-established dominance in undersea warfare and posing a threat to its crucial submarine operations in the Pacific.

The Wall Street Journal (WSJ) reported that recent developments indicate a narrowing gap in submarine capabilities between the two rivals, with significant implications for US military planning including for a potential Chinese invasion of Taiwan.

In one example, a new Chinese nuclear-powered attack submarine was recently observed with a pump-jet propulsion system, a noise-reducing technology previously seen only on the latest US submarines, the WSJ reports says.

Satellite images have also revealed larger hull sections at China’s submarine manufacturing base at Huludao, suggesting increased production capabilities.

The WSJ says that China has enhanced its ability to detect enemy submarines, constructing an underwater sensor network known as the “Underwater Great Wall” in strategic regions like the South China Sea and near Guam.

The report suggests that the sonar network, improved patrol aircraft and helicopters equipped to collect sonar information have significantly bolstered China’s submarine detection capabilities.

The USS Connecticut submarine is easier for China to detect. Photo: Twitter Screengrab

The US has responded by deploying more naval resources to the Pacific and increasing coordination with allies. However, experts have argued that the US needs new strategies and resources to address China’s evolving undersea threat.

In particular, they mention the need for more patrol aircraft and attack submarines to track and potentially target quieter Chinese submarines.

WSJ says the changing undersea dynamics are relevant to a potential Chinese invasion of Taiwan. It notes that US submarines would be crucial and potentially decisive in such a scenario, but improved Chinese capabilities could complicate and undermine their operations.

At the same time, the US faces challenges in maintaining its current fleet size due to retirements and low production rates, highlighting the need for strategic adjustments in the face of a more capable Chinese submarine force.

Aside from pump jet propulsion and increased submarine production capability, Asia Times has reported on China’s recent submarine technology advancements.

Asia Times reported in September that Chinese researchers have developed a groundbreaking terahertz-based submarine detection technology, marking a significant advance in underwater warfare capabilities. The technology has the potential to challenge significantly US submarine operations.

The new detection device operates in the terahertz frequency range between microwave and infrared radiation and can identify minute surface vibrations, as small as 10 nanometers, created by low-frequency sound sources in the open sea.

These vibrations can locate submarines and gather intelligence for analyzing noise signatures to determine a submarine’s model. The technology, which could be incorporated into underwater drones, represents a considerable leap in identifying and potentially countering stealthy US submarine operations.

Furthermore, Asia Times reported in August that Chinese researchers have used computer modeling to identify the tiny bubbles produced by nuclear submarines, which previously went nearly undetected.

They discovered that the extremely low frequency (ELF) signals generated by these bubbles are much stronger than the sensitivities of current advanced magnetic anomaly detectors.

These bubbles form due to shifts in kinetic and potential energy as a submarine cruises, leading to turbulence and an electromagnetic signature through the magnetohydrodynamic (MHD) effect.

Non-acoustic detection techniques have been known for decades but are only now becoming practical due to advancements in computing power. Improving sensor resolution, processing power and machine autonomy will expand the range of detectable signals, enabling the distinction of previously indistinguishable signals.

Russia may also boost China’s submarine technology, with China possibly building its next-generation submarines with the help of Russian technical expertise.

In October, Asia Times reported on China’s possible collaboration with Russia in building its Type 096 nuclear ballistic missile submarine (SSBN), which is expected to be operational within the decade.

The Type 096 may benefit from Russian technological assistance, particularly in enhancing its stealth capabilities. The Type 096 is anticipated to match state-of-the-art Russian submarines in stealth, sensors and weaponry, significantly complicating US and allied efforts to monitor and track China’s submarines in Pacific theaters.

The Type 096’s development may be influenced by Russia’s advanced submarine technology, especially in areas like quieting and nuclear propulsion.

China and Russia are cooperating on a next-generation nuclear submarine design. Image: Twitter Screengrab

Russia assisted previously with China’s Type 093 nuclear attack submarine (SSN), which makes it plausible that the Type 096 will be no exception.

The collaboration can be part of the “no limits” strategic partnership between the two nations, with China benefiting from Russia’s expertise and Russia depending more on China due to Western sanctions.

The partnership may also extend to the supply of highly enriched uranium from Russia’s state-owned nuclear company Rosatom to China. This uranium could be used for nuclear weapons or as fuel for China’s nuclear submarines.

Submarines are poised to be the capital ships of a potential US-China conflict over Taiwan. In a March 2023 article for the US Naval Institute, Mike Sweeney mentions that submarines, rather than aircraft carriers, will dominate future naval warfare.

Sweeney says surface vessels would be too vulnerable against land-based aircraft, anti-ship missiles and submarines, thus making undersea warfare more pivotal.

Regarding China’s underwater warfare capabilities, he argues that China’s naval modernization has yet to catch up with the US in nuclear submarine technology. He argues that China’s antisubmarine warfare capabilities have historically been underinvested in.

He says China still needs to enhance its undersea warfare capabilities to become a global naval power. At the same time, Sweeney acknowledges that the US Navy’s submarine forces face limitations in the Pacific due to numerical constraints, maintenance cycles, and global commitments.

He notes a shift towards funding Columbia-class SSBNs could potentially impact the availability of other submarine types such as the Virginia-class SSN and the unique capabilities of Ohio-class cruise missile nuclear submarines (SSGN).

He suggests that to improve US undersea warfare capabilities vis-a-vis China, the US Navy should consider diverting some Columbia-class SSBNs to conventional roles or introduce SSGN derivatives earlier than scheduled.

Sweeney notes that the transition to submarine-based naval power is necessary for maintaining US superiority in the current strategic landscape, similar to the US Navy’s past shift in emphasis from battleships to aircraft carriers.

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Does modern science already allow us to manage weather?

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As winter settles over New Delhi, cold air sinks, trapping pollution in the city. Smoke from seasonal fires stemming from farming practices in India’s north further reduces the city’s air quality, which typically ranks the worst in the world.

New Delhi’s government has sought prior solutions to easing pollution, including traffic restrictions and air-filtration towers. But in 2023, it has turned to the controversial practice of cloud-seeding to try to increase rainfall and improve air quality for the first time.

While the effectiveness of cloud-seeding remains a debate, that hasn’t deterred more than 50 countries from investing millions annually in weather modification initiatives. Mexico recently stepped up its cloud-seeding efforts to combat drought, having begun its first program in 2020, while Indonesia has used cloud–seeding to try to fill up dams and prevent flammable vegetation from drying in anticipation of this year’s fire season.

The roots of weather manipulation trace back to 1946, when US scientists Vincent J Schaefer and Irving Langmuir dispersed dry-ice particles into a cloud, which caused ice crystals and visible snowfall. Since then, the US government has deployed cloud-seeding programs, primarily in western states like Montana, Wyoming and Nevada, to try to increase rain and snowfall.

This technology also caught the eye of the private sphere. Vail Ski Resort in Colorado has used Western Weather Consultants to deploy generators on mountaintops to induce snowfall since 1975, with dozens more operating in the region.

Since 1997, the West Texas Weather Modification Association has worked to increase rainfall over southwestern Texas. The UK’s Oliver’s Travels meanwhile offers cloud-seeding services to ensure clear weather for weddings in France.

Other uses

The principal use of this technology has been to enhance precipitation, but other uses have been explored. From 1962 to 1983, a US government initiative called Project Stormfury tried to weaken tropical cyclones with no real success, while attempts through other programs to limit the effects of storm-to-ground lightning also proved inadequate.

However, Project Cold Wand saw more successful experimentation with fog dissipation techniques in the early 1970s, while US airlines have also used fog dissipation technology for decades.

The Kremlin has also long experimented with this technology. After the 1986 Chernobyl nuclear disaster, the Soviet Union used cloud-seeding to increase rain in the region to wash radioactive particles from the air and prevent them from reaching Moscow. Now, Russia employs this technology to clear skies for its annual Victory Day Parade in Moscow, while hail suppression technology has also been used by Russia to protect crops and property.

Other governments have also dedicated significant resources to cloud-seeding for decades. Since 1951, France’s Association to Suppress Atmospheric Plagues has grown to an extensive nationwide program, while Thailand’s Royal Rainmaking Project has been active since 1969.

In recent years, cloud-seeding has grown increasingly popular in the water-stricken Middle East and parts of Africa. Morocco, Ethiopia, Iran and Saudi Arabia all have national programs, while several more countries are considering it.

China at forefront

However, China has established itself as a leader in weather modification over the last two decades. China’s “weather army” employs almost 50,000 people, thousands of rocket launchers and cannons, and dozens of planes, largely through the China Meteorological Association Weather Modification Center.

In 2006, cloud-seeding was used to clean sand off Beijing after a severe sandstorm. Two years later, cloud-seeding was used to reduce pollution and pave the way for sunny weather before the 2008 Summer Olympics, practices that were repeated for the 2022 Winter Olympics in Beijing.

China’s cloud-seeding is not just limited to its capital city, with most Chinese cities employing their own programs. Additionally, the Yangtze River basin, currently in severe drought, saw 241 flights and 15,000 rocket launches between June and November 2022, alleged to have resulted in “8.56 billion metric tons of additional rainfall” according to Chinese government sources.

Most supporters estimate that successful cloud-seeding can result in a 10-30% increase in precipitation, but doubts persist over these figures. It also remains difficult to document increases in rainfall and accurately decide where precipitation will fall. In light of these limitations (as well as the questionable economic viability of weather modification), Israel halted its 50-year cloud-seeding program in 2021.

Weaponizing weather

Since the inception of cloud-seeding technology, however, there has been concern over its potential for weaponization. In 1957, the US president’s advisory committee on weather control warned that weather manipulation could develop more destructive weapons than nuclear bombs.

During the Vietnam War, the US government’s cloud-seeding Project Popeye spent millions of dollars between 1967 and 1972 to extend Vietnam’s monsoon season in an attempt to flood the Ho Chi Minh Trail and disrupt the North Vietnamese Army’s supply lines. The Soviet Union is also suspected of using cloud-seeding to increase rainfall in Afghanistan during the Soviet-Afghan War to turn areas into mud and disrupt the movements of the mujahideen.

But public concern in the US over the weaponization of weather prompted the signing of the National Weather Modification Policy Act of 1976, and the US, along with other countries, signed the Convention on the Prohibition of Military or Any Other Hostile Use of Environmental Modification Technique (CONMED) in 1977 that requires signatories refrain from militarizing weather modification.

Nonetheless, concern remains over how current technology and practices could ignite conflicts. Iranian officials accused Israel and the United Arab Emirates of “working to make Iranian clouds not rain” in 2018, while China’s expansive plans for its cloud-seeding operations have also brought concern from India.

Alternative methods of weather manipulation are also under way. In 1996, a US Air Force report titled “Weather as a Force Multiplier: Owning the Weather in 2025” discussed how the advancement of surveillance technologies could see clouds made of smart particles deployed to generate “intelligent fog.”

There have also been projects designed to trigger lightning within clouds, which could complicate operations for the United States’ heralded F-35 plane, which cannot fly within 25 nautical miles of a thunderstorm.

Outside militarization initiatives, new weather modification projects are also on the horizon.

Proposals to add nutrients to the ocean to encourage phytoplankton growth and increase carbon absorption, or ocean fertilization, are increasingly discussed. Sea and cloud brightening projects to reflect sunlight and reduce global warming are also becoming mainstream ideas, despite ongoing uncertainty about their destructive potential or ineffective results.

As weather modification technology continues to develop, we should be wary of further privatization and militarization. Cloud-seeding privatization, for instance, has become increasingly globalized. Based in Fargo, North Dakota, Weather Modification Inc provides cloud-seeding services to India. Switzerland’s Meteo Systems has been active in the UAE for more than a decade.

With dozens of countries and companies now offering cloud-seeding services, policymakers should design and enforce new regulations for weather modification. While agreements and institutions like CONMED and the World Meteorological Organization Expert Team on Weather Modification play important roles, the stage now is crowded with various actors vying for a larger role in applying the technology.

Global coordination should be seen as a necessary undertaking to avoid the potentially catastrophic effects of manipulating the weather. Before governments and companies embark on large-scale efforts to alter the weather, additional regulation in anticipation of future technologies can serve as a protective measure to avoid environmental crises and mitigate the rise of conspiracy theories.

This article was produced by Globetrotter, which provided it to Asia Times.

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Emerging digital technology, alternative data and financial inclusion in Cambodia – Southeast Asia Globe

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Securing a loan can be a life-changing event, allowing people to access the capital necessary to start a business, buy a home, and invest in their future. But for Cambodia’s large underbanked and unbanked population, difficulty in accessing financial services, and an absence of the financial data used to assess creditworthiness, can make getting a loan challenging. According to the National Bank of Cambodia, only 59 percent of the adult population have access to formal financial services, leaving 41 percent either accessing informal financial services or no financial services at all.

However, developments in Cambodia’s lending landscape offer cause for optimism. The explosion in Cambodia’s fintech ecosystem, paired with the growing potential of alternative-data credit frameworks, could provide a path towards financial inclusion for those previously left out of the conversation.

Acccording to Ms. Phal-Chalm Theany, Secretary General of the Association of Banks in Cambodia, “Alternative data has tremendous potential for contributing to financial inclusion by complementing traditional financial data that banks have. They range from information on mobile wallet transactions to information on user behavior on digital platforms that can be utilized for risk assessment of individuals and MSMEs.” 

Most financial institutions use debt repayment history and bank and credit files to determine the creditworthiness of potential borrowers. Driven by digitalisation and developments in technologies such as data analytics and machine learning, alternative credit scoring is based on any form of non-traditional information that can provide insights into the ability and propensity of borrowers to pay back loans. Telecom and utility payment histories, as well as digital footprints and mobile data, can all be utilised to assess creditworthiness within these frameworks.

Banks in Cambodia are increasingly looking to tap alternative data for serving the unbanked and underbanked.

“Data in Cambodia is still very much fragmented and held across multiple organizations and institutions,” said Mr. Mach Chan, CEO of Phillip Bank in Cambodia. “Many people do not have formal loans from financial institutions. This makes it challenging to predict their repayment capacities. If Phillip Bank can easily assess aggregated alternative data, we can better assess a borrower’s creditworthiness based on their social and behavioral indicators, and spending patterns and habits. This allows us to form a more complete picture of the borrower’s risk profile, with opportunities to offer cheaper loans to less risky customers, regardless of whether they are banked. Additionally, many SMEs are not formally registered making lending a challenge. If banks can access the payments data of these MSMEs, the financial Industry will be more confident to support the needs of these businesses.”

Across Southeast Asia, governments, banks and key stakeholders are becoming increasingly interested in the potential of alternative data as a tool to expand the scope and accessibility of financial services.

A Southeast Asia-focused report published by the World Bank Group in 2021 highlights four new data types that have emerged as part of the evolving digital ecosystem, and which can aid credit decision-making: mobile operator and app-based data, digital payments, e-commerce data and enterprise-tech (business-performance) data. Such alternative data has also been highlighted by the Asian Development Bank as one of the key areas for driving financial inclusion in Southeast Asia. 

Across the region, governments, banks and key stakeholders are becoming increasingly interested in the potential of alternative data as a tool to expand the scope and accessibility of financial services.

In December 2022, the National Credit Bureau of Thailand announced the plan to launch a non-credit data centre by consolidating such data into NCB’s existing credit database with initial application of utility payment data from Electricity and Water Utilities.

In Indonesia, Experian collaborated with a telecom company to uplift financial inclusion by using data from telco to provide advanced credit assessment to empower unbanked and underbanked.

In the Philippines, Credit Information Centre (CIC) is working on an open policy to enable accessing entities to utilize credit bureau data with alternative data to come up with a complete picture of a borrower’s credit profile.

In the context of Cambodia, utility bill payment and telco payment data can serve as important sources of alternative credit data. Moreover, with rapid digitalization along with adoption of digital payments, there should be enormous potential to tap a wide array of alternative data on payments and digital footprints. Around the world, such data have served as key drivers for digital financial inclusion. 

With a rise in digital financial service providers, digital payment catalysts and e-commerce in Cambodia, massive amounts of alternative data are already generated at present. Given this scenario, it is important to have an organized ecosystem to collect, process and utilize such alternative credit data.

On the regulatory front, the National Bank of Cambodia revised the prakas on credit reporting in 2020, enabling Credit Bureau Cambodia (CBC) to collect alternative data along with traditional credit data to support financial institutions to strengthen credit risk assessment capabilities.  

CBC was established in 2012 with the support of the National Bank of Cambodia, the Association of Banks   in Cambodia and other key stakeholders in the sector to manage a fair and transparent credit market in support of the nation’s economic development. Since then, CBC has become the leading body providing financial information in the country. Although currently CBC only manages traditional data reported by member banks and financial institutions, it is preparing an ambitious roadmap to collaborate with multiple sectors in the country. Its plan is to establish a comprehensive alternative credit data ecosystem that can work together with the traditional credit data ecosystem for social and economic benefits to Cambodians.

“I would say Cambodia stands a decade ahead of other emerging market economies because of the Credit Bureau and the lending environment,” explained Gordon Peters, co-founder and CEO of fintech firm Boost, which harnesses popular social media platform such as Facebook and Telegram to enable access to finance. “CBC has done a great job of collecting, collating and sharing data on the financial lives of customers,” he said. “I think that is a huge unlock.”

For Peters and company, CBC establishes a level of legitimacy and security that has benefited Cambodia’s financial sector and allowed his firm to fill a gap in the ecosystem. Banks and financial institutions have a high degree of confidence and trust in the role of CBC as a key financial data infrastructure in the country. For a company that already manages credit history data of more than 7 million individuals and businesses, expanding the capabilities to manage alternative data reporting system looks plausible.

Ms. Phal-Chalm Theany, Secretary General of the Association of Banks in Cambodia

Ms. Theany elaborated: “CBC is a data centre for the financial sector that collects data from banks and financial institutions, stores and analyses them for the purposes of credit scoring for those financial institutions. Where each bank and financial institution may have its own data, CBC has the financial information for the whole sector.

“With strong capabilities in data analytics, artificial intelligence and machine learning, CBC is uniquely positioned to harness alternative data from diverse data sources to enable banks and financial institutions to conduct better assessment of the profile of the unbanked (mainly women and farmers) and informal small businesses, estimate income with more precision. This shall enable financial institutions to offer more appropriate credits or other financial services in the absence of a financial footprint, credit histories or property guarantees.”

Mr. Chan added: “CBC could spearhead the aggregation of payments, telco and utilities data. These datasets are then fed into a prospective customer’s credit score. Over the past few years, with NBC’s Bakong as a key enabler, we’ve seen a rapid digitization of payments. We believe that when assessing customer creditworthiness, payments data is just as important as borrowing and repayment data, and should be prioritized. At the same time, CBC would need to seek the cooperation of their member financial institutions to provide these datasets. For SMEs, we also see data from GDT as an important asset. If CBC could connect and obtain data with GDT, it will allow the banks to form better assessments for clean loans, spurring economic activity.”

Currently, CBC provides K-Score, an algorithmic credit score (ACS). ACS uses machine-learning algorithms to analyse massive data sets to produce credit scores without traditional financial information. This is the only industry level credit score available in Cambodia. First launched in 2015, CBC did a major revamp of the algorithms in 2020 to keep up with the evolving changes in the market landscape. Today, K-Score is available to all member financial institutions of CBC and (via CBC’s mobile app) to all individuals as well.

Example of a K-Score from CBC

A 2023 report in the Asian Journal of Law and Science states: “ACS is the tip of the spear of the global campaign for financial inclusion, which aims at including unbanked and underbanked citizens in financial markets and delivering them financial services, including credit, at fair and affordable prices.” The study outlines the wide ranging benefits of ACS and alternative data as tools to benefit individuals across Southeast Asia who lack access to financial services.

In the Cambodian context, Credit Bureau of Cambodia is well positioned to lead the way in leveraging these tools. To make sense of the massive datasets now available thanks to digitalisation, CBC utilises a host of ACS tools. Machine-learning algorithms and other artificial intelligence mechanisms allow for the analysis of data at a scale that was previously impossible. Risk analysis profiles and loan portfolios that are regularly updated and refined are just a couple of the ways these technologies can be leveraged using alternative data. While the power of these tools is certainly important, CBC’s experience in the sector — and its standing as the leading institution managing, analysing and providing financial data — are the most compelling reasons for the adoption of alternative data schemes in Cambodia.

“As we are entering our second decade of credit reporting in Cambodia, CBC is committed to being a trusted (element in the) national financial infrastructure for providing alternative credit data, to strengthen credit risk assessment for our 190-plus member financial institutions, and to expand access to credit for the new-to-credit consumer segments. We are very open to collaborate with alternative data providers such as telcos, utilities and payment service providers to harness information not found in traditional credit reports, to help more Cambodians obtain access to mainstream financial services,” explained CBC CEO, Oeur Sothearoath.

As CBC leverages its established presence in the financial sector, a growing pool of innovators is working with the agency to develop and facilitate the alternative data ecosystem.

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Tripartism works in Singapore because PAP government is pro-growth and pro-worker: PM Lee

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MEASURES TO EASE COST-OF-LIVING CONCERNS

While this strategy has moderated the cost of living, some households will still need extra help, said the Prime Minister. 

These households received targeted assistance in the form of cash or vouchers, including GST vouchers, U-save rebates, CDC vouchers and public transport vouchers, he said. 

“And we target it, so that those who need help get the most help,” said Mr Lee, noting that this can add up to S$9,000 of direct help this financial year depending on the household. 

“This way is much better than subsidising electricity or water prices across the board, which some other countries do,” he added. 

This is because with across-the-board subsidies, the households benefiting the most are the ones using the most water or electricity, which are not usually needy households, said Mr Lee. 

“But of course in difficult years like this one, when growth is slow, prices are going up faster, when wages are not quite keeping up with prices, then we need to think what more we can do to help Singaporeans cope,” he continued. 

“Can we delay price adjustments to a more favourable time? … Or should we just proceed with the fee increases, but carefully manage their overall impact on households?”

In a difficult year, the government has to “think extra hard” about increasing fees. If the increases are not essential, they can be delayed for a while longer, or the immediate increase can be moderated, said Mr Lee. 

For example, the government has absorbed two-thirds of what the increase in public transport fares should be this year, which will cost S$300 million. 

“But some price increases will not be avoidable or postponable. And if we just push them off, it doesn’t solve the problem because next year the shortfall will become bigger. Then what do we do?” said the Prime Minister. 

“And in that case, sometimes after thinking about it, we have no choice but to proceed, but we will also definitely be more generous with the targeted support to households.” 

With the additional U-Save rebates rolled out, the number of households with difficulties paying their utility bills has gone down, he noted.

CHANGING NATURE OF JOBS

To stay relevant, the Labour Movement will need to continuously reinvent itself, said the Prime Minister, citing challenges like regional conflicts, climate change and technological advances. 

“There will also be new opportunities, while we experience new and social economic pressures,” he added. 

With rapid developments in artificial intelligence and robotics, the nature of jobs will change significantly, affecting blue-collar, white-collar and professional jobs, said Mr Lee. 

Overall, productivity should go up, and Singapore should enjoy higher growth, but the transformation will be so great that individual workers and livelihoods will be affected, he added. 

In a changing world, some think that unions should play a smaller role, said Mr Lee, adding that many employers and governments in other countries do not encourage unions. 

“But from the point of view of the individual worker, when you are displaced from a job and you’re on your own, it’s a very painful experience,” he said, adding that the PAP government rejects the view that unions should play a smaller role. 

“Sooner or later, all the unhappy people will get together, mobilise others and push against the changes … and not in a productive way.” 

The PAP government and NTUC must continue to work hand in hand to foster transformation and upgrading, broaden its representation and refresh its offerings, said Mr Lee. 

Since Mr Lee Kuan Yew’s time, the PAP worked closely with the unions to understand workers’ needs, champion their interests and pursue policies that improved their lives, he added. 

“On their part, the workers gave PAP a strong political base and popular support,” said the Prime Minister. 

“That was how the PAP government won the people’s mandate in successive elections to implement policies and to build Singapore.” 

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Singapore narrows 2023 growth forecast to around 1% on weak exports

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SINGAPORE: The Singapore economy is expected to grow by around 1 per cent in 2023, narrowing from a previous forecast range of 0.5 per cent to 1.5 per cent due to subdued external demand.

The updated forecast, released by the Ministry of Trade and Industry (MTI) on Wednesday (Nov 22), came as third-quarter GDP expanded by 1.1 per cent year on year. This is faster than the advance estimate of 0.7 per cent.

On a quarter-on-quarter seasonally-adjusted basis, the economy grew by 1.4 per cent, accelerating from the 0.1 per cent expansion in the second quarter.

“Taking into account the performance of the Singapore economy in the first three quarters of the year – 0.7 per cent year-on-year – as well as the latest external and domestic developments, the 2023 GDP growth forecast for Singapore is narrowed to around 1.0 per cent, from 0.5 to 1.5 per cent,” MTI said.

For 2024, GDP growth is projected to come in at 1 per cent to 3 per cent as major global economies are expected to pick up gradually in the second half of the year.

THIRD QUARTER GROWTH

Growth in the third quarter was supported by sectors such as construction, retail trade, accommodation, as well as finance and insurance.

The construction sector grew by 6.3 per cent year-on-year, extending the 7.7 per cent expansion in the second quarter, as both public and private sector construction output rose.

The retail trade sector expanded by 2.2 per cent year-on-year, extending the 2.4 per cent growth in the previous quarter. Both motor vehicle and non-motor vehicle sales volumes increased during the quarter.

The accommodation sector posted robust growth of 12.9 per cent year-on-year, extending the 13 per cent growth in the second quarter. Growth of the sector continued to be bolstered by the strong recovery in international visitor arrivals, said MTI.

The real estate sector posted growth of 3.4 per cent year-on-year, slowing from the 12.1 per cent expansion in the second quarter.

Manufacturing in the third quarter shrank by 4.6 per cent year on year, compared with the 7.6 per cent contraction in the previous quarter. All clusters within the sector contracted except for the transport engineering cluster.

“Given subdued external demand, Singapore’s manufacturing and trade-related sectors such as precision engineering and water transport are likely to remain weak for the rest of 2023,” said MTI, adding that the ongoing recovery in air travel and tourism is expected to support the growth of sectors such as air transport and accommodation.

“Meanwhile, resilient labour market conditions will continue to lend support to consumer-facing sectors like retail trade and food and beverage services.”

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Climate change: The villagers building 100ft ice towers

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Arati Kumar-RaoArati Kumar-Rao

Environmental photographer and writer Arati Kumar-Rao travels across South Asia in all seasons to chronicle the subcontinent’s changing landscape. Here, in photos and in her own words words, she captures the increasing threat climate change poses to the lives and livelihoods of the Ladakhi people, who face an uncertain future below the melting glaciers of the Himalayan mountains. Kumar-Rao is one of this year’s Climate Pioneers on the BBC 100 Women list.

mountain

Arati Kumar-Rao

The night of 5 August 2010 is still fresh in the memory of the people of Ladakh, in northern India, when it felt like a cloud had burst over the area surrounding the capital, Leh.

One year’s worth of rain fell on the cold desert in just two apocalyptic hours. Massive walls of sludge swallowed up everything in their path. Scrambling people were buried mid-stride under a thick brown-grey mass.

Several hundred people were never found after that fateful night.

The Ladakh region, the northernmost plateau of India, sits more than 3,000m (9,850ft) above sea level. The Greater Himalayan Range shields the region from the annual monsoon that much of the rest of India relies on.

Until recently, Ladakh has been bathed by the sun for 300 days per year, while barely four inches of rain have fallen on the vast landscape of rock and mountains. Floods were virtually unheard of.

Animal rearing

Arati Kumar-Rao

The destructive flood of 2010 was followed in quick succession by further floods in 2012, 2015, and most recently, in 2018.

Something that had not happened in seven decades, occurred four times in fewer than 10 years. Such freak weather events are a result of climate change, experts say.

Meltwater

Arati Kumar-Rao

A decade and a half ago there used to be a regular rhythm to the Ladakhi land, which provided villagers with a steady water supply. Winter snow melted to feed streams, just as meltwater from the glaciers trickled down and provided water for farming and agriculture in springtime.

goatherd

Arati Kumar-Rao

farmer

Arati Kumar-Rao

However, climate change has seen average winter temperatures in Ladakh rise by about 1C over the last 40 years.

Snowfall has become increasingly unpredictable and glaciers have retreated farther up towards the peaks, or disappeared altogether.

village of Stok

Arati Kumar-Rao

I first visited Ladakh in 2018. I returned in 2019, and again in spring this year – kept away in the interim by the coronavirus pandemic. The difference was startling.

The snow now melts faster, leaving villagers with little to no water by spring. Glaciers are now so high up in the mountains that they melt later in the year. Ladakhi springtime – once lush and fertile – was dry and silent this year.

A lack of water has led to a decrease in meadows – keeping large flocks of pashmina goats is becoming unviable. The Changpa herders are giving up their traditional livelihoods and migrating to other parts of India or to Leh looking for non-pastoral work.

Farmers, unable to find water for their barley and apricots, are leaving in droves.

Apricot farmers

Arati Kumar-Rao

apricot farming

Arati Kumar-Rao

Despite the destruction caused by climate change, there is hope for this isolated region.

On my second visit to Ladakh in March 2019, I met engineer Sonam Wangchuk. He told me that on a drive through the valleys in 2013 he noticed a large mound of unmelted ice under a bridge, sheltered from the sun. The sight of that small tower of ice triggered an idea.

“High school maths tells us that a cone is the simple answer,” he grinned at me.

Sonam Wangchuk

Arati Kumar-Rao

mountain workers

Arati Kumar-Rao

Wangchuk wanted to help villagers freeze water in winter which could be saved for use in spring. Freezing it in the shape of a cone would maximise the volume of ice per square metre of surface area exposed to the sun and lengthen the amount of time it would take to melt.

The engineer assembled a team of local people and began experimenting, looking for the best way of creating cones of ice. Eventually, they found the right formula.

Ice stupas

Arati Kumar-Rao

After piping water from a mountain stream down into the valley, the group forced water to flow up a vertical pipe with a fine nozzle attached to its end. The water went up the pipe and exited via the nozzle as a fine spray.

In night-time temperatures of -30C, the spray froze as it exited the pipe. Gradually, as more and more water emerged as spray and turned to ice, the edifice began to resemble a cone.

ice stupas

Arati Kumar-Rao

Now named ice stupas, after Buddhist places of meditation, they have gained popularity all across Ladakh. The structures, some of which tower over 100ft (30m), provide a water supply for a community that has seen climate change disrupt its natural resources.

They also provide a surprising source of entertainment – hotly contested competitions for the tallest stupa take place annually.

But the injustice of the situation is not lost on either Wangchuk or his stupa-building friends. Ladakhi people are paying the price for carbon emissions made elsewhere.

Ladakhis

Arati Kumar-Rao

“It is not enough that we keep coming up with technical innovations, keep adapting, keep solving problems,” Wangchuk tells me.

“I want to use ice stupas as much to sensitise the world about the need for a change in behaviour, as I want to use it to provide water for us.”

As a photographer who has travelled across vast spaces of south Asia, I know Ladakh is not alone in its fight.

For the first time in history India and its neighbouring countries, China and Pakistan, face a common enemy – climate change. It has the potential to destroy river basins and threaten the most populated regions of the world. It may be time to come together to shore up resilience against this threat to survival.

Produced by Rebecca Thorn, BBC 100 Women.

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Rohit Sharma: The Indian captain who lost cricket World Cup but won hearts

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Rohit Sharma of India cuts a dejected figures following the ICC Men's Cricket World Cup India 2023 Final between India and Australia at Narendra Modi Stadium on November 19, 2023 in Ahmedabad, India.Getty Images
By Vikas Pandey
BBC News, Delhi

Millions of Indians cried along with cricket captain Rohit Sharma on Sunday as he walked off the field, trying to hold back his tears.

His team had just lost the cricket World Cup final to Australia, prolonging India’s painful wait for the glory since 2011.

This was arguably his best shot at winning the coveted trophy – he will be 40 years old in 2027, when the tournament will be held next.

In theory, Rohit could still play in the next World Cup and give it another try. But the pain of losing at home is likely to linger for a long time.

When India won the trophy in front of an overjoyed crowd in Mumbai in 2011, Rohit was not part of the team. He has been vocal about his disappointment at his exclusion at the time.

It would have been poetic justice if he had won on Sunday, not just playing in a home World Cup but also leading his side – that wasn’t meant to be.

But a discussion of just the final will not give you the complete Rohit Sharma story from this World Cup. Look closer and you will see a player who was absolutely sure about his ability to play selfless and fearless cricket in the tournament.

India's captain Rohit Sharma celebrates with teammates Mohammed Shami (L) and Shubman Gill (R) after winning the 2023 ICC Men's Cricket World Cup one-day international (ODI) first semi-final match between India and New Zealand at the Wankhede Stadium in Mumbai on November 15, 2023.

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As an opener, he was expected to give his side a flying start and take the wind out of the opposition’s attack.

He did that effortlessly. Even in the final, he got off to a fast start. At one point, India were scoring at the rate of 10 runs per over.

Some former Indian cricketers have criticised Rohit for losing his wicket to a rash shot in the finals. They argue that it was the match’s turning point.That may well be true but by then, Rohit had already done what he did in so many matches earlier – he had set up a platform for others to build the innings on. But after he departed, the other batters just choked in front of a spirited and tactical Australia bowling attack.

Let’s rewind a bit.

In the group stages, Pakistan set a target of 191 for India to chase. It looked like a sub-par total but then Pakistan had a dangerous bowling attack including Shaheen Afridi, Haris Rauf and Hasan Ali.

Matches between arch-rivals Pakistan and India are a sporting spectacle but they also put players under extreme pressure.

Rohit led from the front and scored a brisk 86 off 63 deliveries, effectively ending Pakistan’s hopes of winning the game.

He scored more than 40 runs seven times in the tournament, converting three of them into half-centuries. One could argue that he failed to turn these brisk starts into big scores.

But that would be an oversimplification. As he mentioned in different press conferences, every player in the team had clearly defined roles, and his was to be the destructor.

Rohit Sharma of India hits a 6 during the ICC Men's Cricket World Cup India 2023 between India and Pakistan at Narendra Modi Stadium on October 14, 2023 in Ahmedabad, India.

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India didn’t lose any match until the finals and their success hugely relied on Rohit’s spirited starts which allowed time and pace to players like Virat Kohli, Shubman Gill, KL Rahul and Shreyas Iyer to take the matches deep and put big totals on the board.

Rohit could have easily slowed down after reaching the 40s for bigger scores but that simply wasn’t his role. He was tasked to pace his innings according to the conditions, regardless of where his personal score stood.

India’s dominating batting line-up also allowed him to play freely. He knew that the batters who followed him were more than capable of putting the opposition under pressure.

While Rohit the batter has been a revelation in this tournament, his leadership deserves equal praise.

His approach as a batter also inspired his crafty tactics as a captain. He earned the respect and trust of his team-mates and support staff, including head coach Rahul Dravid.

His bowling changes and fielding placements were astute and well-timed. When Pakistan were scoring at a brisk pace, he brought Mohammed Siraj back into the attack.

Siraj had previously leaked 76 runs against Afghanistan and failed to pick up a wicket. A good captain knows his strategy well, but a great captain knows his players even better.

Babar Azam and Muhammad Rizwan had put together a stand of 81and were threatening to take the game away until Siraj broke their partnership.

Rahul Dravid, Coach of India looks on with Rohit Sharma of India during the ICC Men's Cricket World Cup India 2023 at Narendra Modi Stadium on November 18, 2023 in Ahmedabad, India.

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Rohit also stood firmly behind his players when India were not doing well. He agreed with Dravid’s strategy of believing in the process and not letting results affect the team.

But sporting triumphs don’t happen in a vacuum.

The coach-captain duo worked hard in the background for almost two years with an eye on the World Cup. India entered the final undefeated, a result of their patient and astute planning.

Rohit backed players like Iyer, KL Rahul and Suryakumar Yadav when they were not doing well, and they repaid their captain’s faith with match-winning performances in the World Cup.

The loss in the final would hurt Rohit, his team and Indian cricket fans for a long time. But it takes nothing away from the captain’s achievements.

He truly is the unsung hero of the tournament and could still make it to India’s World Cup squad four years later.

It may sound difficult but then sporting glories are all about making impossible dreams come true.

Rohit will surely heal, rebuild and come back stronger because he knows no other way. But for now, the World Cup trophy is still painfully out of his grasp.

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