FM to represent Thailand in Brics Plus meet in Kazan

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PUBLISHED: 18 Oct 2024 at 05: 00

(Photo: brics-russia2024.ru)
( Photo: brics-russia2024. ru )

Thailand will participate in the fourth Brics Plus Summit in Russia, though it was previously announced that Prime Minister Paetongtarn Shinawatra may be speaking alongside the land, Maris Sangiamposa may represent the country, not Maris Sangiamposa.

According to Foreign Affairs Ministry official Nikorn Balankura yesterday, the state will take part in the conference, which will be held from Oct 22-24 in Kazan, Tatarstan, after it was invited to attend by Russian President Vladimir Putin.

The fourth edition of the Brics Plus Summit will see the bloc’s founding members– namely Brazil, Russia, India, China and South Africa– welcome Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates ( UAE ) as new members.

Mr Putin even invited around two hundred other countries that have expressed their interest in joining the team, including Thailand, Malaysia, Indonesia, Laos, Vietnam, and Kazakhstan.

This week’s meeting will be held under the theme” Brics and the International South: Building a Better World Up”.

Thailand does have a great opportunity to reaffirm its efforts to strengthen its relationship with the Brics, he added, noting that the nation summited its application for Brics membership in June.

In the meantime, Russia is attempting to persuade Brics nations to create an alternate payment system that would be free of American sanctions.

Mr. Putin wants to strengthen Brics as a strong counterpoint to the West in world politics and business. According to a report prepared by Russia’s finance department and central banks, the request for a new payment program based on a system of corporate banks linked to one another through the Brics central banks may be presented to journalists ahead of the summit.

The system may save and move electronic tokens that were secured by foreign currencies using blockchain technology. This would subsequently make it possible to exchange those assets without having to use the money.

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Now’s not the time to short the yuan – Asia Times

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As the” Trump business” returns to create fear of political upheaval great once, global hedge funds are racing to little China’s yuan money.

They are betting that Trump’s designed combination of tax and business measures will boost local rise if elected, and that China may seek to become more dynamic.

However, betting on a weaker yuan could prove to be a lot of a mistake if the last several decades of the Xi Jinping age are any link.

Let’s begin with the Trump estimate. Obviously, the November 5 US vote is a true toss-up. One time, polls suggest Kamala Harris ‘ Democrats may emerge. The second, hp emerges to telephone a Trump 2.0 White House is coming.

This year, the speed seems to be on Trump’s part. In the US$ 300 billion dollar options business, hedge funds are placing higher stakes on a weaker renminbi. Yuan uncertainty is currently at its highest level since the middle of 2022.

However, it seems as though Trump’s 2017-2021 phrase will be forgotten due to fears that he might prefer a stronger dollar. Trump was unwaveringly in favor of a lower US transfer rate to benefit American companies and stifle China.

It’s also worth remembering Trump’s abuse on the US Federal Reserve. Trump was angry that his chosen Fed chair, Jerome Powell, continued father Janet Yellen’s price hikes. He then browbeat Powell into cutting rates, adding stimulus in 2019 that the economy did n’t need.

On top of the Fed’s broken trust, the US federal debt soared under Trump and present President Joe Biden, then topping$ 35 trillion.

Include social fragmentation to the picture until January 20, 2025, when the next management will take office. Even if Trump loses, no significant journalist thinks he will go away quietly.

One of the causes of Fitch Ratings ‘ cancellation of its AAA standing on US bill, joining Standard & Poor’s, was the fallout from the uprising on January 6, 2021, which Trump fomented. The next rating agency to assess America AAA is now Moody’s Investors Service, the source of the current query.

The Beijing component of this riddle is more crucial, though. There are at least four causes why Beijing is unlikely to help the yuan to fall very little.

One, a falling yuan may make payment on onshore bill more difficult for very obliged organizations like home builders. That would boost proxy risks in Asia’s biggest market. The last thing Xi wants is to see# ChinaEvergrande trending once more in the internet.

Two, the economic easing needed to sustain the yuan’s declines — especially with the Fed cutting rates, also— could harm Xi’s deleveraging efforts. Xi’s interior group has made significant strides over the past few years in eradicating financial abuse.

This explains why Xi and Premier Li Qiang have been reluctant to permit the People’s Bank of China ( PBOC ) to cut rates more forcefully, despite China Inc.’s reputation for deflationary pressures.

Three, increasing the yuan’s global usage is probably Xi’s biggest economic transformation achievement since 2012. In&nbsp, 2016, China&nbsp, won a place for the yuan in the International Monetary Fund’s” special&nbsp, drawing&nbsp, right” box, joining the dollar, yen, euro and pound.

Since next, the stock’s apply in business and banking has soared. Increased easing then may dent trust in the yuan, slowing its headway toward reserve-currency position.

Fourth, it may produce China a more contentious and important issue during a distinctly divisive US election. Trump’s Republicans and Democrats who are close to Harris concur that they must be strong with Beijing.

Beijing’s claims that it is manipulating the renminbi lower could stoke bipartisan support in Washington. especially in light of the Trump administration’s plan to impose 60 % taxes on all products made in China.

” As well as levies, the badge of ‘ money manipulator’ may be a second red flag for an Eastern economy”, said Robert Carnell, Asia-region head of research at ING Bank.

A weaker renminbi would be used by Xi to sign a sense of anxiety and anguish. Certainly the stories Xi wants international investors to be thinking about as the year 2025 draws near.

Otherwise, Xi and Li have been ratcheting up the signal without triggering sounds of 2015, 2008 and additional past incidents of large pro-growth “bazooka” storms.

Earlier this month, Beijing cut borrowing costs, slashed businesses ‘ supply need numbers, reduced mortgage costs and unveiled market-support resources to put a floor under share costs. Bolder fiscal stimulus steps are being mulled, too.

On Thursday ( October 17 ), Team Xi raised the loan quota for unfinished housing projects to 4 trillion yuan ($ 562 billion ), nearly double the previous amount.

The bump was less than markets wanted, as evidenced by Chinese stocks falling into” correction” territory this week. The&nbsp, CSI 300 Index&nbsp, ended Tuesday down 1.1 %, bringing its declines since an October 8 high to roughly 11 %.

The bigger issue, of course, is repairing the balance sheets of giant property developers.

” They’re still trying to talk the talk, with more noise about stabilizing the property market”, said Stephen Innes, an economist at SPI Asset Management.”

As Thursday’s housing moves were” rolled on, it was clear: traders were not thrilled,” Innes said”. Let’s be honest, though – China’s property mess is n’t something that can be patched up with a few speeches and half-baked measures.”

According to Morgan Stanley economist Robin Xing, “resolving the debt issue is a crucial step in stopping a key deflationary downward spiral,” while adding that direct demand stimulus is equally crucial.

Team Xi has made several commitments over the past few years to develop a method to remove toxic assets from property developers ‘ balance sheets.

Beijing has in fact demonstrated what is required to turn things around: a bold plan to boost the finances of high-quality developers, encouraging mergers and acquisitions, promoting property investment so that more people no longer consider real estate as their only option, and establishing social safety nets to encourage households to spend more and save less.

Indeed, over the past few decades, there have been numerous crises from which to draw lessons. They include Japan’s efforts to remove toxic loans from banks ‘ balance sheets in the early 2000s, as well as the US’s use of the Troubled Asset Relief Program, or TARP, to deal with troubled assets after 2008.

More fundamentally, Xi’s reform team must step up efforts to recalibrate growth engines away from exports toward innovation and high-niche industries.

Investors should be reassured that the brutal crackdowns on tech companies have ended in 2020. China also needs to shed its adversity toward the fundamental level of economic transparency that the world’s funds demand.

But as Xi and Li understand, a weaker yuan wo n’t bring about any of these big-picture reforms. It might give China a little more time to achieve its 5 % growth goal this year, but at a cost that Chinese leaders appear unwilling to pay.

There are myriad other reasons why, in the US, one reason is to believe that the dollar’s outlook will be more red ink than black.

One of the issues with the US national debt, which is now twice the size of China’s annual gross domestic product, is that it is two times that large. However, there are a good chance that Trump will backtrack on some of the financial planning moves he made during the first, only to have them halted by economic advisers in a second term.

One was Trump considering canceling large sums of the US owed to Beijing in order to punish Xi’s economy in the midst of trade negotiations. These considerations were hardly ever out of the blue.

In May 2016, six months before he was first elected, &nbsp, Trump, a serial bankruptcy offender as a businessman, floated reneging on US debt in a&nbsp, CNBC&nbsp, interview.

” I would borrow, knowing that if the economy crashed, you could make a deal,” &nbsp, Trump&nbsp, said”. And if the economy was good, it was good. So therefore, you ca n’t lose.”

Moody’s Analytics economist Mark Zandi spoke for many when he called the idea of reneging on US debt” complete craziness” that” would be financial Armageddon.”

Trump&nbsp, 1.0 considered a dollar-to-yuan devaluation of the kind that Argentina or Vietnam might employ. In April, for example, Politico&nbsp, reported that Trump 2.0’s inner circle is” actively debating” an Argentina-like pivot at the behest of advisors like&nbsp, Robert&nbsp, Lighthizer, Trump’s former international trade representative.

Yet, instead of” America first,” such a detour might do more to advantage China in the longer run. Buenos Aires would be operating a Group of Seven economy if devaluation were a method for prosperity. Turkey and Zimbabwe would be booming. As Asia’s largest economy, Indonesia would be giving China a run for its money.

To China’s advantage, the US trying this gambit would increase inflationary pressures and expose the dollar’s status as a reserve currency.

Investors generally believe that the policies they are proposing to promote US reindustrialization, such as steep tariffs on goods imported, will tend to result in dollar strength in comparison to other currencies, according to a note from Global Analysts.

But, they added, the” likely consequences of this disconnect include a potential conflict between the White House and Fed, and a diplomatic drive to&nbsp, weaken the US dollar, possibly involving a new version of the 1985 &nbsp, Plaza&nbsp, Accord.”

Trying such a gambit in 2024 would be extraordinarily destabilizing. The odds are very low that Xi would choose to pursue it. China recalls how Japan’s acceptance of a stronger yen ravaged its economy for decades to come, aside from the Communist Party’s aversion to being pushed around.

Even so, hedge funds that are betting on a weaker yuan in the months ahead might be ignoring the bigger picture of the Xi era.

Follow William Pesek on X at @WilliamPesek

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Borong to invest US.4mil to boost Sarawak’s MSMEs and digital economy

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  • Strengthen footprint directly, grow globally via cross-border digitisation
  • Target 60k MSMEs that offer online tools to move their businesses from offline to online

SDEC CEO Ir. Ts. Sudarnoto Osman (left) with Aizat Rahim, co-founder of Borong at the signing.

At today’s 7th International Digital Economy Conference Sarawak, five other companies, including Sarawak Digital Economy Corporation ( SDEC ), and leading startup Macro Tech Ventures Sdn Bhd, which operates in the market under the name” Borong brand,” and a collaboration between five other companies. Many of the state’s MSMEs are now under the radar.

In a MOU signing Borong committed to invest US$ 17.4 million ( RM75 million ) via Digital Niaga, a credit financing scheme in collaboration with development banks BSN, Bank Rakyat, and Agrobank, to enable digitalization across Sarawak’s MSMEs, boosting local businesses growth.

The relationship between Borong and SDEC, according to Aizat Rahim, co-founder of Borong, is a good step in the direction of innovation and developing businesses in the modern time to improve Sarawak’s economic growth. ” We are committed to invest in Sarawak’s MSMEs to improve their footprint directly and grow globally via cross-border automation”.

SDEC CEO Ir. Ts. Sudarnoto Osman said,” The MOUs ( with Borong and the other five companies ) represent a critical step in Sarawak’s journey toward becoming a digital economy powerhouse. These partnerships are about more than just technology—it’s about empowering the group through modernization. By integrating digital options, we are equipping our regional businesses with the knowledge, support, and funding to thrive”.

Borong aims to transform over 60 000 Enterprises by providing online tools and resources that enable them to move their companies from offline to online. With an estimated average monthly purchase of US$ 92.8 ( RM400 ) each, with Borong providing RM1, 200 of credit financing for each MSME for three months, the RM75 million financing, “is just the beginning for us to catalyse the growth of these MSMEs in Sarawak”, said Lennise Ng, co-founder and CEO of Borong.

]RM1 = US$ 0.232 ]

” We are very satisfied with the outcomes when we have a stronger foundation to entice other colleagues to make more investments in MSMEs, not just in Sarawak but throughout Malaysia,” she continues. &nbsp,

Along with SDEC, Borong will carry knowledge, online training, and onboarding activities. These small businesses are being trained to use Borong’s retail and industry platforms to expand their global reach and profitability. Borong earns a small 2.5 % split from deals on its platform.

When incorporated into the Borong ecosystem, these Enterprises will have easy access to affordable financing that can be as low as 2.5 % per year. Borong and its banking partners have so far allocated over RM300 million in SME financing that is willing to be used and deployed.

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Will China’s epic spend be enough? – Asia Times

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China’s unrelenting monetary expansion was once known as the world’s wonder. Oh, what a remembrance.

China has been dealing with an economic downturn in the last few years as a result of colliding problems, many of which are world-class. Consumer prices have been approaching negative place, there’s an oversupply of accommodation, and children unemployment has soared.

The Taiwanese government has been forced to intervene due to increasing pressure. Beijing has approved a number of important economic stimulus measures over the past month to revive the country’s struggling business.

This stimulus may have the potential to be” the largest in story” in nominal terms, according to a study word from Deutsche Bank. But there’s still a lot we do n’t know. What kinds of actions have been included in this package so much, and has China already been there?

What’s in the item?

On September 24, Pan Gongsheng, chancellor of China’s northern lender, unveiled the government’s boldest intervention to raise its market since the pandemic.

Reduce the amount of cash commercial lenders are required to carry in reserves and lower the loan rates for existing homes were among the initiatives. By allowing the banks to lend out more money, the latter is anticipated to reinvest about 1 trillion yuan ( US$ 140. billion ) into the financial sector.

On top of this, 800 billion renminbi was announced to develop China’s money market.

A new 500 billion yuan economic policy hospital was added to this to facilitate easier access for institutions looking to purchase stocks, as well as a 300 billion yuan re-lending facility to aid in faster housing sales that were already sold.

Further evidence of financial revival became visible at a&nbsp, Politburo meeting&nbsp, of China’s top government officials two weeks after this statement.

Xi Jinping, the president of China, emphasized the need for an economical revival. Xi also encouraged officers to “go strong in helping the market” without having to fear the consequences.

A joint policy offer was released on the same day that seven government sections released a joint plan to maintain China’s 500 billion yuan cheese sector, which has experienced severe damage from milk and beef prices decline since 2023.

Business coaster

First, the market’s reaction was overwhelmingly positive. Maybe too optimistic. In the last week of September, investment areas in Shanghai, Shenzhen and Hong Kong saw their biggest regular rise in 16 years.

On October 8, the Shanghai and Shenzhen stock markets reported an extraordinary 3.43 trillion renminbi in churn following China’s National Day holiday. But, anticipation for more stimulus measures were met with sorrow.

From the funds for 2025, China’s National Development and Reform Commission approved 100 billion yuan in expenditures. That was n’t enough to sustain market optimism. The most drastic decline in Chinese securities in 27 years occurred on October 9.

This decline only gotten worse a few days later, when the Chinese Ministry of Finance made the suggestion that there was “ample place” for debt collection but did not specify any fresh stimulus measures.

Also thin on the information

The market’s opinion of China’s economic policies ‘ future way and what they might suggest for the world is still largely unknown. Hope that more information would be made over the weekend were generally squandered.

Chinese officials stated in a communiqué released in July that China “must continue to be strongly committed” to meeting this year’s 5 % economic growth goal. Compared to the government’s reform-era financial performance, that’s a reasonable goal.

But facing a consistently weak economic outlook, Xi after seemed to subtly shift the tone, changing the language from “remain strongly dedicated” to” strive to fulfill” in September.

Over the past years, China has frequently employed massive-scale trigger measures to revive its economy during recessions. Although often having unfavorable side effects, these plans have been able to significantly revive the business.

In response to the 2008 global financial crisis, China’s State Council released a 4 trillion yuan signal package. This was credited as a significant stabilizer of the world economy and helped China stay resilient throughout the issue.

However, it also contributed to the rise of” shadow banking,” or illegal economic activity, by accumulating billions of yuan in debt through regional government financing. In response to the stock market volatility and the pandemic, China also spent a lot of money to boost its business in 2015.

Following a property market collapse in 2015, China implemented extensive signal actions. &nbsp, Image: Shan he / AP via The Talk

What to expect?

What can we anticipate from this moment? How stable or healthy will any subsequent growth be? Any significant increase in Chinese financial demand will likely own” spillover” effects, but we are still awaiting some information regarding the package’s size and scope.

As we’ve discussed, many of the actions announced to date may include their most immediate impact on loans, financing and cash in China’s share markets.

That suggests we may see for what’s called the “wealth effect” in finance. This is the idea that rising commodity prices, such as those for housing or shares, cause people to feel more wealthy and therefore to invest more.

If China’s huge stimulus invest causes sustained increases in property values, it may give rise to economic enthusiasm. Foreign investors and customers may start to feel less anxious about the future.

From Australia’s point of view, that could see increases in demand in areas where our economy are interlinked – iron ore, hospitality, training and manufactured foods exports. More widely, Chinese demand may lead to development in different global economy, with a self-reinforcing effect on the world as a whole.

Beware financialization

On the other hand, China’s switch to rely on dangerous asset price increases in its capital markets to support growth may have unbalanced effects. Where property price rises benefit those at the” bottom end of town,” they can lead to their own inequities and imbalances.

China’s” Black Monday” stock market crash in 2015 raised sirens in Beijing. Primarily reflecting a wariness of excessive financialization, Xi cautioned at the time that “housing is for living in, never for debate”.

China is also working on a more sustainable growth model, trying to strike a balance between maintaining economic growth and stabilizing its social and private environment. For us all, perhaps perhaps China itself, the result is still incredibly questionable.

Wesley Widmaier is an Australian National University professor of global connections, and Wenting He is a PhD candidate for the Australian National University.

This content was republished from The Conversation under a Creative Commons license. Read the original post.

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Market unsatisfied with Beijing’s 6 trillion yuan stimulus – Asia Times

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In order to relieve the local government debt problems and boost the economy, the Chinese Ministry of Finance is anticipated to challenge 6 trillion yuan ( US$ 843 billion ) of ultra-long special Treasury securities in the next three years.

The release of ultra-long unique government securities, which have maturities of more than 10 times, is a part of China’s efforts to boost its market through fiscal signal, Caixin reported on Monday, citing some unknown options. &nbsp,

Stock investors had been speculating about the size of the government’s potential stimulus package after the People’s Bank of China ( PBoC ) and financial regulators on September 24 announced interest rate and reserve requirement ratio ( RRR ) cuts and vowed to stop home prices from falling.

In the fifth China Macroeconomy Forum on September 21, Liu Shijin, a leading scholar and former deputy leader of the China State Council’s Development Research Center, recommended that the main federal issue ultra-long unique government bonds within one to two times. &nbsp,

He suggested that the central government should use the bonds ‘ proceeds to buy up empty homes from the industry in the near future and promote industrialization over the long term. &nbsp,

Liu’s remarks had a role in the recent rise in the property business in Hong Kong and mainland China. &nbsp,

Both the Shanghai Composite Index and the Hang Seng Index have increased 27 % since September 24 before reaching their maximums on October 8 and 7, respectively. &nbsp,

Some property owners have been reducing their holdings over the past year as a result of the perception that China’s economic stimulus deal is not delivered on time.

The Shanghai Composite Index has declined 8.5 % from its peak of 3, 498 on October 8 to 3, 201 on Tuesday. The Hang Seng Index has lost 12 % from 23, 099 on October 7 to 20, 318 on Tuesday.

A live-mic murmur

Finance Minister Lan Fo’an stated in a media briefing on October 12 that the central government would considerably raise debt by issuing ultra-long specific treasury bonds to help China’s local debt problems. However, he refrained from making the bond issuance plan’s scale and timing public. &nbsp, &nbsp,

When Deputy Finance Minister Liao Min was questioned by a journalist about the size of the bond issuance, Lan told Liao with a whisper not to reveal it for the time being because” the size is big.” The media heard Lan whispering to Liao while his microphone was turned on. &nbsp,

Prior to that, according to a report from Bloomberg on October 11 that the majority of 23 investors and analysts polled predicted that China would invest up to 2 trillion yuan in a stimulus package to boost its economy.

On the same day, Reuters reported that Beijing was anticipated to announce 2 trillion to 3 trillion yuan in new spending. &nbsp,

These predictions were actually not far off the recently released 6 trillion yuan package because the majority of the money will be funded by an existing special bond issuance program. &nbsp,

The Ministry of Finance announced in March that it would start issuing ultra-long special treasury bonds in 2024. According to the statement, local governments can use half of the proceeds to pay off debt, and the central government can use the other half.

A total of 752 billion yuan of ultra-long special treasury bonds were issued in the first three quarters of this year, some of which had maturities of up to 50 years. &nbsp,

If the Finance Ministry continues with this initiative, it will be able to raise an additional 3 trillion yuan over the course of three years.

Local governments can apply for 500 billion yuan of loans each year under this program, which will not be enough to cover the interest payments on the remaining local debt, which is now 43.6 trillion yuan from 40.7 trillion yuan as of 2023. According to the Finance Ministry, the average term for the outstanding local debt is 9.4 years, while the average interest rate is 3.15 percent. &nbsp, &nbsp,

Claire Xiao, a senior credit analyst at Fidelity International, said in a report earlier this year that China’s public debt is about 70 % of the country’s gross domestic product at the end of 2023. However, she added that if additional 60 trillion yuan are accounted for by LGFV loans, China’s government debt to GDP ratio is about 130 %. &nbsp, &nbsp,

A basket of measures

Lan stated in the media briefing on October 12 that Beijing would introduce a number of incremental fiscal policy measures:

  • reduce the potential for local and LGFV debt,
  • replenish state-owned banks ‘ tier-one capitals, &nbsp,
  • stop home prices from falling,
  • grant loans to underprivileged families and scholarships to students, and
  • increase people’s overall consuming power.

He claimed that since there is still room for the central government to raise debt and raise the fiscal deficit, Beijing’s stimulus measures wo n’t be limited to these areas.

It is possible that Beijing will provide more information about the issuance of sovereignty and special bonds after the National People’s Congress standing committee holds its regular meeting later this month, according to a commentary published by Yicai.com. &nbsp,

Read: Chinese stocks cool down as investors check reality

Follow Jeff Pao on X: &nbsp, @jeffpao3

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Sri Lanka arrests over 230 Chinese in cybercrime raids

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The foreign minister said on Tuesday ( Oct 15 ) that Sri Lankan police have detained more than 230 Chinese men who are accused of stealing money from international banks through online scams with assistance from security officials sent by Beijing. According to Vijitha Herath, authorities have seize 250 computersContinue Reading

Prosecutors seek 20 years’ jail for Hin Leong oil tycoon OK Lim, 82

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When Lim directed his workers to falsify documents for false transactions, Judge Toh had determined that Lim had “dishonest purpose.”

At the time of the crimes committed in March 2020, Lim was the managing director and 75 % of Hin Leong Trading, an crude trading firm incorporated in Singapore.

However, the judge determined that Lim remained a “hands on” “big manager” of Hin Leong even after he resigned in April 2020, and that his consent was required for investments.

LEGEND IN OIL INDUSTRY ORCHESTRATED FRAUD: DPP

Deputy Public Prosecution Christopher Ong, Kelvin Chong and Foo Shi Hao sought 20 times ‘ prison for the elderly.

Mr Ong said the amounts in Lim’s lying charges are among the highest in Singapore for business financing scams, and that Lim’s offences “tarnished Singapore’s hard-earned popularity” as Asia’s leading crude trading gateway.

Lim’s two lying claims are “examples of the worst possible types of cheating” and permit the maximum sentence of 10 times per command, Mr Ong argued.

For the fraud charge, the prosecutors sought nine decades, a time less than the maximum. The utmost a district judge can impose in a single trial is requested that the two cheating words be run continuously for a total of 20 times.

According to Mr. Ong, Senior Counsel Davinder Singh and his team’s prevention request, “given the weight of the offences,” no weight should be given to Lim’s era or his health condition.

The trial claimed that if the judge wanted to give Lim’s advanced age a week’s discount at the most, it should have been at least one.

The prosecutors cited the amount of money being cheated, the losses being made, how the crimes may have affected Singapore’s financial services and economic system, as well as potential “undermined public trust in Singapore’s fuel trading industry” as justification for their 20-year claims. &nbsp,

Mr Ong said Lim was the architect, directing his people to undertake the infractions, with a full excellent damage of about US$ 85 million.

In the past of Singapore’s business financing scams offences, his situation is second only to the loss caused by Lulu Lim, the former chief financial officer of&nbsp, commodity firm Agritrade International, who was” only an employee” in her company, said Mr Ong.

He argued that Lulu Lim committed the offences out of self interest, and it is clear that Hin Leong was Lim Oon Kuin’s “life’s work”.

The latter had provided proof of how he had transformed the business from a small group of individuals he had described as family members.

” He was the managing director of Hin Leong, the sole and original managing director, all the way until April 2020, for 47 years”, said Mr Ong.

In contrast to how he tried to” throw the employees under the bus and blame them completely” at trial, Mr. Ong said in his mitigation argument that any suggestion Lim committed the crimes out of concern for his employees ‘ continued livelihood must be taken into account.

Mr. Ong claimed that Lim was prepared to lay the blame entirely on the shoulders of a devoted employee who he claimed treated like a daughter.

Mr. Ong claimed that the defense had requested a seven-year period that was “manifestly inadequate.”

In terms of Lim’s medical offenses and his claim that Lim would suffer disproportionately from a lengthy sentence, Mr. Ong said the idea that a sentence does not in effect amount to a life sentence is not “iron-cast” is not true.

The only thing that needs to be taken into account when deciding whether a sentence against the accused… will amount to a life sentence is that the accused was still vital enough, still in charge of Hin Leong enough to engineer and direct that these frauds take place or be committed, according to Mr Ong.

” It would be unjust, I submit, if having been able to engineer these crimes at this advanced age, the accused then escapes the appropriate punishment for his crimes by using that age as an excuse,” the accused said.

Mr. Ong said the Singapore Prison Service can treat the medical conditions that the defense has highlighted, such as Lim’s wheelchair use and fall risk.

Mr. Singh said in his reply arguments that the prosecution did not have sufficient evidence to support some of its claims, such as that Lim attempted to throw his employees under the bus or that his crimes had the potential to undermine trust in Singapore’s oil trading industry.

The prosecution had compared Lim’s case with that of&nbsp, former Asia Pacific Breweries finance manager Chia Teck Leng&nbsp, -&nbsp, who was sentenced to 42 years ‘ jail for swindling four foreign banks out of S$ 117 million. However, &nbsp, Mr Singh said Chia’s case was from 2004. Adjusted for inflation, the amounts involved in Chia’s case are higher than Lim’s, he argued.

Mr Singh also argued that there are “very serious gaps” in a letter from the prison service, which the prosecution used in saying that&nbsp, Lim ‘s&nbsp, needs can be met in jail. The letter does not address all of Lim’s medical conditions, Mr Singh said. &nbsp,

These include anxiety, depression, insomnia, a large prostate, asthma, coronary artery disease and cerebral vascular disease with cognitive impairment.

The issue of whether Lim would suffer disproportionately was” not even addressed” by the prison service, said the veteran lawyer.

Without addressing these concerns, “how can this court know that there is no such concern”? asked Mr Singh.

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Smart money’s looking beyond China stimulus debate – Asia Times

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Businesses are resonating as a result of tension between President Xi Jinping’s long-term policy objectives and investor demand for short-term signal as Chinese securities recover.

The fight between the long and short viewpoints is not novel. For years, the” Washington Consensus” group has advised Beijing to adjust its unstable economy, which free market activists see as very reliant on giant, opaque state-owned companies and the vast incentives that sustain them.

However, restless investors who appear increasingly unwilling to give Beijing the room it needs to re-enter and overhaul its US$ 17 trillion market have frequently clashed with Xi’s work to do just that.

Until then, apparently. The conflict between Team Xi and anxious industry was clearly visible over the weekend.

Unplanned press conference by Xi’s Ministry of Finance ( MOF ) on Saturday ( 12 October ) sparked a frenzy with markets anticipating a potential significant new stimulus boost to help China reach its 20 % economic growth target for 2024 and new measures to combat the country’s increasingly ingrained deflation.

Futures markets sagged when MOF focused on larger transformation designs and declined to provide a certain amount label on the hung signal. But by Monday, companies rose.

Investors came to the conclusion that the MOF’s most recent statements reflect the pragmatism markets have long-craved from Xi’s inner circle, even if Beijing is n’t using its massive stimulus “bazooka.”

The trip news, according to economist Harry Murphy Cruise at Moody’s Analytics, “tied most of the appropriate boxes, but it lacked information on the size and range of new spending,” noting that” we anticipate more supports to be announced through the remainder of the year.”

Economist Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, says,” these policies are in the right direction”.

There is still a strong argument that Chinese stock valuations are now fairly valued despite the recent rally, which was buoyant from the US$ 6.5 trillion rout dating back to 2021. In addition, Chinese shares are currently trading at significantly lower multiples than those in the US, where new market highs are being made daily.

The MOF press conference was still a surprise to us, according to economist Jing Liu from HSBC Holdings, despite the lack of significant fiscal stimulus. ” The policy pivot looks very much here to stay, with the rising risk appetite having a significant impact on both the stock and property markets.”

Odds are, though, that this is a trust-but-verify moment for markets. Bullish investors are partially reacting to Beijing’s hints of further support for the troubled housing market and highly indebted local governments with new, targeted fiscal-spending jolts.

More and more stimulus is becoming more popular. In September, Chinese exports and imports came in weaker than expected, raising new doubts about the economy’s main bright spot. Overseas shipments, for example, rose just 2.4 % year on year, a sharp fall from August’s 8.7 % increase.

According to Capital Economics ‘ economist Zichun Huang, “further ahead… growing trade barriers are likely to become an increasing constraint” on export and economic growth.

Although the move from Washington to Seoul may cause more demand to be made in some of China’s key trading partners, according to economists, political restrictions on products like electric cars and other green technologies are causing new headwinds.

However, punters are beginning to realize that Xi’s inner circle is almost blatantly focused on bringing China into the so-called Fourth Industrial Revolution by accelerating the transition from the high-end to highly-value technology-driven industries.

Team Xi is more interested in the long-term benefits of tech-driven economic reinvention and future dominance of the industries. Although annual growth targets matter in the short run.

Investors are digging deeper into Chinese stock valuations in comparison to other top global markets and recognizing new value as a result of these caveats.

In the most recent Global Risk-Reward Monitor newsletter, Asia Times business editor David Goldman argues that with a price-earnings ( P/E ) ratio of 11, China’s stock market “is a bit too low”.

But at the same time, he notes,” there is no reason to expect Chinese valuations to approach the S&amp, P ( 500’s ) valuation of 22 times ( forward ) earnings”.

One reason, he argues, is that China’s government has gone out of its way to prevent and reverse the formation of market-skewing tech monopolies like Google, Microsoft or Amazon.

” No surprise, then, that Alibaba trades at a P/E of 27 after the run-up of the past month, versus Amazon’s 43″, Goldman writes. We have long argued that given subdued but consistent economic growth, China’s equity market valuation was too low. The Chinese market’s valuation seems more reasonable than that of the United States after the rally last month.

That’s not to say Beijing is n’t cognizant of the moment’s sensitivity. In a note to clients, economists at Morgan Stanley say this moment represents” Beijing’s second chance to convince the market” after a rough several days.

However, Xi may have found the balance between acting as a facilitator and a facilitator while also showing restraint.

According to Hui Shan, an economist at Goldman Sachs,” the most recent round of China stimulus clearly indicates that policymakers have turned to cyclical policy management and increased their focus on the economy.”

China will increase by 4.9 % this year, according to the US investment bank, up from an earlier forecast of 4.7 %. For 2025, Goldman Sachs sees growth of 4.7 %, up from an earlier 4.3 % forecast.

One source of Goldman Sachs ‘ optimism: MOF officials plan to deploy 2.3 trillion yuan ($ 325 billion ) of special local government bond funds in the fourth quarter of this year.

This, Hui says, suggests a more “back-loaded” public spending plan, paving the way for a bigger rebound than his bank had previously expected.

Last week, China ‘s&nbsp, National Development and Reform Commission announced pre-approval of&nbsp, 200 billion yuan&nbsp, ($ 28.2 billion ) worth of 2025 investment projects. It is seen by Huawei’s team as a clear government effort to help China meet its 5 % GDP goal this year.

Carlos&nbsp, Casanova, economist at Union Bancaire Privée, notes that investors are taking solace in Finance Minister Lan Fo’an highlighting that officials have a “fairly large” capacity to increase spending if needed.

That includes “implementing some of the most ambitious measures in years aimed at revitalizing the struggling property market, recapitalizing large banks,” according to Casanova, “everyone of which is crucial for addressing China’s ongoing structural challenges.”

However, Casanova adds,” the timeline for fiscal measures remains uncertain. The upcoming National People’s Congress Standing Committee meeting, scheduled for late October or early November, may require significant announcements to wait until.

The MOF “has given as strong a signal as possible while waiting for the NPC approval,” according to economist Shirley Ze Yu of the London School of Economics.

Larry Hu, Macquarie Capital’s chief China economist, doubts that Xi’s policymakers will be too specific about dollar amounts.

” First, they do n’t need to come up with such a number for the NPC to approve”, Hu says. ” Second, it’s hard to come up with such a number, as the line between fiscal, monetary and industrial policies is often blurred in China”.

Hu adds that, given the global financial crisis, it would go against Xi’s deleveraging goals of supplying the economy with stimulus the way Beijing did in 2008 and 2009.

Investors will be keenly focused on Beijing’s implementation of structural reforms, according to Hui of Goldman Sachs. &nbsp,

” The’ 3D ‘ challenges – deteriorating demographics, a multi-year debt deleveraging trend and the global supply chain de-risking push — are unlikely to be reversed by the latest round of policy easing”, Hui argues.

However, Oxford University’s China Center economist George Magnus is concerned that Beijing may continue to implement outdated policies.

” A solution would involve the sustainable expansion of the income and consumer demand shares of the economy, an end to deflation risk, more income redistribution, the promotion of private enterprise, and extensive tax and local government reforms”, Magnus writes in an op-ed for The Guardian.

Magnus adds that” Xi’s more Leninist agenda emphasizes supply and production, and what he calls’ high-quality development,’ which is essentially about state- and party-led industrial policies to allocate capital to lead and dominate modern science, technology and innovation in the global system”.

” China already has and wants to expand advanced industrial expertise and leadership in some key firms and sectors,” according to Magnus. These technologically dominant islands are found in a sea of macroeconomic imbalances and issues that can only be actually addressed by more liberal and open economic reforms.

Bottom line: According to Magnus,” the current focus on economic policy is important not for some decimal points on GDP but as a signal whether the government can, or wants to grasp the nettle.”

Magnus is not the only one who is concerned that policy tinkering wo n’t be sufficient. China will become a more dynamic and competitive economy over the long term if only the government sector is reforming, the capital markets are deepened, and households are encouraged to save less and spend more.

On the other hand, half measures will likely leave China vulnerable to boom/bust cycles brought on by the imbalanced allocation of resources, weak debt, and misalignments between household income and spending.

Investors will want to bereassured that big-picture reforms are on the horizon with the upcoming NPC. For now, though, an increasing number of investors are already getting the memo on China’s grand plan.

Follow William Pesek on X at @WilliamPesek

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Small businesses, big challenges: The reality of China’s post-US Fed cut economy

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Additionally, analysts told CNA that the effect on small businesses would probably be generally direct and minimum. According to Mr. Bell,” I do n’t think Fed cuts will have much impact on Chinese consumers,” adding that” small businesses with a domestic focus are less impacted,” while citing low domestic confidence as a limiting factor. &nbsp,

” Frequently, small businesses and individuals are shielded from immediate effect by broader plan adjustments”, said American economic columnist Mr Daryl Guppy, even the CEO and founder of Guppytraders.com.

He noted that US economic policy may have a far greater impact on Chinese usage habits than US tariffs and punishment. &nbsp,

The main effect may be price changes for imported American items.

Next THE FED?

China’s central bank has implemented a number of smaller cuts, including a policy interest rate reduction of 0.2 % and a reduction of banks ‘ reserve requirements by half a percentage point, despite the Fed’s aggressive stance in cutting rates. &nbsp,

However, Mr. Guppy made it clear that the PBOC’s actions did not directly affect the US’s subsequent actions. &nbsp,

According to Mr. Guppy,” PBOC policy decisions are not made in a knee-jerk effect to US policy.” Lower rates often lead to a higher consumer and business confidence because they lower the cost of loans and paying off debt.

Experts believe Beijing’s factual response to the US Fed price cuts could also provide some much-needed information into its possible future actions.

According to Mr Bell, China generally “has had a very distinct economic policy platform than the Fed’s interest-rate focused strategy”.

” For much of the early 2000s, China pursued a dollar nail, and after that, a much more quantity-driven model focused on the quantity of credit rather than their cost”, Mr Bell told CNA. &nbsp,

He also explained that China was “more insulated”, because of its relatively” closed” investment account, at least until 2015, which helped it experience fewer spillovers from international financial situations. Companies and individuals are prohibited from moving money into and out of the country under strict regulations in a sealed capital account.

China focused on a lot of fiscal and credit stimulus when extreme crises struck and threatened to spread through the trade channel.

Some believe that Chinese politicians should concentrate on resolving these internal problems, such as revitalizing the faltering business, which may call for a more subtle approach this time around.

” China’s emotions are tempered by the demands of the local economy and policy information”, he said. ” US Fed rates movements are a factor that may make it easier, or more difficult, ( for China ) to continue with an appropriate domestic policy”, said Mr Guppy.

Although Mr. Bell believes that China” should not be in a location where Fed moves matter little,” he also acknowledges that “any global circumstances,” including Fed rate policy, had have” a more important impact on the Foreign economy.”

” But that is not a given, many more a representation of lacking plan activities in Beijing”, Mr Bell added. &nbsp,

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Police question iCon CEO, celebs

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‘ Boss Paul ‘ pledges to support victims, denies he oversaw a pyramid system

Warathaphon “Boss Paul” Waratyaworrakul, 41, CEO of The iCon Group, turns himself in to consumer protection police on Saturday. (Photo supplied/Wassayos Ngamkham)
Warathaphon” Boss Paul” Waratyaworrakul, 41, CEO of The image Group, turns himself in to client security officers on Saturday. ( Photo supplied/Wassayos Ngamkham )

Police detained The image Group CEO Warathaphon” Boss Paul” Waratyaworrakul on Saturday, promising to assist the hundreds of people who have complained about the website selling business’s falsification.

Mr Warathaphon, accompanied by his lawyer, reported to officers at the Consumer Protection Police Division ( CPPD ) who are seeking a warrant to arrest him on fraud charges.

The Anti-Money Laundering Office ( Amlo ), meanwhile, said it was looking into the possibility of freezing the company’s assets pending the outcome of police investigations.

Mr Warathaphon, 41, said he was saddened upon learning that a number of people had suffered losses from investing in the bank’s direct selling company. He even acknowledged that earlier should have been used to address their issues.

He claimed that in order to assist these people, he intended to find a trustworthy individual to manage the operation of a center the business is setting up to provide assistance and payment.

He defended the decision as a humanitarian and socially responsible action while claiming that his direct sales company is completely transparent and responsible.

” I have been building this business for the past six years, and I have protested my sincerity,” Mr. Warathaphon told investigators. And I do n’t believe that doing so would ever make a person illegal to sell goods online. Numerous another businesses are doing the same thing.

He declined to say whether the stars who are alleged to be deeply involved in iCon’s business activities are even business professionals as some have claimed.

He claimed he had fully explained the company’s operations to the authorities and that he would prefer not to make the information people.

When questioned about whether he believed the significant costs that the broken functions reported to the police were the fault of his company, he said that must be supported by evidence.

He also refuted reports that he had previously reached a settlement with Sittra Biabungkerd to pay Sittra Biabungkerd’s full payment to a number of users the prosecutor claimed to represent. He claimed the attorney had not spoken to him and that he had never known Mr. Sittra.

Almost 500 issues

By providing website marketing programs for less than 100 ringgit, the iCom Group attracted a lot of people. However, when they enrolled, respondents claimed that they were asked to spend significantly more money on purchasing health substitute products to sell. After that, they were asked to pay for fees-paying online advertising to attract new users.

According to Pol Maj Gen Sophon Sarapat, deputy chief of the Central Investigation Bureau ( CIB ), which oversees the consumer protection police, the number of people filing fraud complaints with the police had reached 488 as of Saturday, with losses of 178 million baht.

Although records of how the company operated appeared to fit the definition of common scams, Mr. Warathaphon was never charged and was given the opportunity to leave after being interrogated.

Thephasu Bowonchotidara, secretary-general of the Amlo, confirmed that officers had asked it to look into the trades and resources of The image Group. &nbsp, Amlo researchers have now notified the lenders concerned, he said.

If the original data clearly points to scam, a suspect’s property can be seized to stop them from being siphoned off or shifted pending the outcome of studies, said Wittya Neetitham, an Amlo official.

In another growth, Kan Kantathavorn, a well-known TV host and artist who was identified as the marketing director of The image Group, claimed he was just hired to perform public relations for the business under a lease that he has already terminated.

He added that he had checked to make sure that every product he was hired to review was legitimate and safe for consumers before going on to actually test it out for the audience.

Yuranunt” Sam” Pamornmontri and Pechaya” Min” Wattanamontree, two other celebrities linked to the company, were also seen reporting to CPPD investigators on Saturday.

According to a reliable source, police searched nine locations in Bangkok and the surrounding provinces for more evidence earlier this morning.

The Medical Council of Thailand, meanwhile, said it could lodge a police complaint against Tananont Hiranchaiwan, another iCon executive, who always presented himself in public as being a certified medical doctor. He has a medical science degree, but it was claimed that he lost his medical license six years ago.

Yuranuant “Sam” Pamornmontri, reports to Consumer Protection Police Division (CPPD) investigators on SSaturday. (Photo: Wassayos Ngamkham)

Yuranunt” Sam” Pamornmontri reports to Consumer Protection Police Division ( CPPD ) investigators on Saturday. ( Photo: Wassayos Ngamkham )

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