As communist China turns 75 can Xi fix its economy?

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Getty Images People walk past a giant screen outside a shopping mall which displays a sign marking the 75th anniversary of the founding of the People's Republic of China, on the third day of a week-long National Day holidays in Beijing on 3 October, 2024.Getty Images

The ruling Communist Party unveiled a number of methods to boost China’s struggling economy as it prepared to observe its Golden Week trip and commemorate its 75th anniversary.

The plans included support for the country’s crisis-hit home business, support for the investment industry, money handouts for the weak and more government spending.

Following the announcements, stocks in mainland China and Hong Kong experienced report benefits.

However, economists caution that the policies may not be sufficient to solve China’s financial difficulties.

Some of the new measures announced by the People’s Bank of China ( PBOC ) on 24 September took direct aim at the country’s beaten-down stock market.

The new tools included funding worth 800bn yuan ($ 114bn, £85.6bn ) that can be borrowed by insurers, brokers and asset managers to buy shares.

Pan Gongsheng, the governor, added that the central banks had assistance listed companies that wanted to buy back their own shares. He also announced plans to lower borrowing costs and allow banks to increase their financing.

Only two days after the PBOC’s news, Xi Jinping chaired a shock economy-focused conference of the country’s best officials, known as the Politburo.

Authorities made the promise to increase government spending to help the economy.

The standard Shanghai Composite Index rose by more than 8 % on Monday, the day before China began its weeklong vacation, making it its best day since the global financial crisis of 2008, when it reached its peak. The action marked the end of a 20 % increase over the course of the previous five days of protest.

The Hang Seng in Hong Kong increased by over 6 % the day after businesses closed on the island.

” Buyers loved the presentations”, China researcher, Bill Bishop said.

Mr. Xi has more pressing problems to address than just popping vodka lids, which investors may have had.

Getty Images China's President Xi Jinping speaks during a National Day reception on the eve of the 75th anniversary of the People's Republic of China.Getty Images

With the 75th anniversary of the Soviet Union’s establishment, The People’s Republic has been in existence for 74 years. Only the other big socialist sate, the Soviet Union, has since fallen.

The officials of China’s leaders have long been concerned about avoiding the death of the Soviet Union, according to Alfred Wu, an associate professor at the Lee Kuan Yew School of Public Policy in Singapore.

At the forefront of officials’ minds will be boosting confidence in the broader economy amid growing concerns that it may miss its own 5% annual growth target.

” In China goals must be met, by any means necessary”, said Yuen Yuen Ang, professor of political economy at Johns Hopkins University.

The management problems that failing to meet them in 2024 may cause a slow-growth and low-confidence loop.

The decline in the nation’s property market, which started three years ago, has been one of the major drags on the second-largest economy in the world.

The lately unveiled stimulus package targeted the real estate sector in addition to laws designed to boost companies.

It includes steps to boost bank financing, lower loan rates, and lower the minimum down payment requirements for first-time home buyers.

However, some people question whether these actions will be sufficient to stabilize the housing industry.

” Those procedures are delightful but unlikely to move the needle many in isolation”, said Harry Murphy Cruise, an analyst at Moody’s Analytics.

” China’s weakness stems from a crisis of confidence, not one of credit, firms and families do n’t want to borrow, regardless of how cheap it is to do so”.

Leaders pledged to use state funds to increase economic growth at the Politburo program and go beyond the interest rate reductions.

However, the officials provided much information about the size and scope of government spending aside from establishing priorities like stabilizing the housing market, encouraging usage, and boosting employment.

” If the fiscal signal fall short of market expectations, owners could be disappointed”, warned Qian Wang, chief economist for the Asia Pacific region at Vanguard.

” In contrast, cyclical plan signal does not correct the structural issues”, Ms Wang noted, hinting that without deeper changes the difficulties China’s economy experience will not go away.

Economics believe that the real estate market’s deepening issues are essential to rebalancing the business as a whole.

The most expensive expenditure is in real estate, and falling home prices have contributed to consumer confidence being sluggish.

” Ensuring the distribution of pre-sold but empty houses had been key”, said a word from Sophie Altermatt, an analyst with Julius Baer.

Governmental assistance for household incomes must move beyond one-off transfers and be provided by improved pension and social protection systems in order to boost domestic consumption on a green basis.

Getty Images Unfinished project of Evergrande Cultural Tourism City in Zhenjiang City, China.Getty Images

On the day of the 75th celebration, an editor in the state-controlled paper, People’s Daily, struck an cheerful voice, recognising that “while the journey back remains challenging, the potential is promising”.

According to the article, concepts created by President Xi such as “high-quality development” and “new productive forces” are key to unlocking that path to a better future.

The emphasis on those concepts is a result of Xi’s desire to shift from the traditional fast growth drivers, such as investment in property and infrastructure, to create a more balanced economy based on high-end industries.

The challenge China faces, according to Ms Ang, is that the “old and the new economies are deeply intertwined, if the old economy falters too quickly, it will inevitably hinder the rise of the new”.

The leadership has come to terms with this and is taking action accordingly.

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DSI to handle ‘Mae Tuck’ gold case

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According to Minister, allowing prosecutors to attend may speed up the investigation into alleged fraudsters.

PUBLISHED: 3 Oct 2024 at 20: 17

A sports car and four other luxury vehicles are among assets worth about 70 million baht seized from the Bangkok home and companies of celebrity online retailer Kornkanok “Mae Tuck” Suwannabut and her husband Kanpon Rueang-aram on Thursday. (Photo supplied/Wassayos Ngamkham)
On Thursday, the assets of famous website store Kornkanok” Mae Tuck” Suwannabut and her father Kanpon Rueang-aram, which includes a sports vehicle and four additional luxurious vehicles, totaling about 70 million baht, were taken from the couple’s homes in Bangkok. ( Photo supplied/Wassayos Ngamkham )

The high-profile scam situation against the famous online store Kornkanok” Mae Tuck” Suwannabut has been approved by Justice Minister Tawee Sodsong, who has agreed to have the Department of Special Investigation ( DSI) take it as a special event to expedite its quality.

Mr Kornkanok and her father, Kanpon Rueang-aram, were arrested on Monday in Bangkok. They have been accused of committing common scams, fabricating false information into computer systems, fabricating advertising, and fabricating information about the volume, quality, and other aspects of the products and services they sold.

Mr Kanpon has been sent to Bangkok Remand Prison, while Ms Kornkanok has been taken to the Central Women’s Correctional Institution.

The Consumer Protection Police Division ( CPPD ) denied on Thursday rumors that it had interrogated Ms. Kornkanok’s social media influencers or celebrities.

It was previously rumoured the department had called Ms Kornkanok’s secretary, Jenuch Bangtoei, a well-known website seller, for questioning.

The CPPD maintains that it is concentrating on responding to concerns from patients while creating request documents are being done.

Police seize five luxury vehicles and other assets belonging to the fraud couple, Kornkanok

Kornkanok” Mae Tuck” Suwannabut and her father Kanpon Rueang-aram have been seize five luxury cars and other resources. ( Photo supplied/Wassayos Ngamkham )

Next year, summonses are anticipated to be issued to those who participated in live broadcasts to promote and sell Ms. Kornkanok’s goods on her social media route.

The accusations against her and her husband generally stem from online purchases of subpar silver jewelry.

Some stars and celebrities have testified to the authorities and denied being involved in any fraud, according to the CPPD.

The Consumer Protection Board, however, has set a timeframe of Friday for Ms Kornkanok’s organization to provide a statement about its business practices.

The CPPD is looking into this aspect of the case, which has been claimed that the silver purchase was never authorized to conduct virtual direct sales.

According to Pol Maj Gen Witthaya Sriprasertpab, the CPPD captain, authorities searched the couple’s apartment in Bangkok’s Ram Intra area on Thursday and two of their businesses, which are located on Hathairat Road in the same area.

At least five expensive vehicles, including a McLaren sports car estimated to be worth$ 30 million, were seized from the locations, along with bank accounts and other assets. Overall, the seized goods were valued at about 70 million ringgit.

A sizable safe deposit box that was originally depicted in a Ms. Kornkanok movie as being filled with thousands of baht in cash was taken out. The couple claimed to have refunded customers who had returned silver goods to their store using the money.

However, the Anti-Money Laundering Office said it had received evidence of fraud submitted by authorities. Before proceeding with reparation to victims, it’s officials may meet on October 17 to determine whether the couple’s assets may be frozen.

Police search the couple's K2N gold shop in Klong Sam Wa district, Bangkok on Thursday. (Photo supplied/Wassayos Ngamkham)

Police seek the child’s K2N gold factory in Klong Sam Wa city of Bangkok on Thursday. ( Photo supplied/Wassayos Ngamkham )

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AI versus the climate as data center emissions soar – Asia Times

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AI is curating your social media feed and providing you with information to the train station. It’s even throwing the fossil fuel industry a backbone.

Three of the biggest technology firms, Microsoft, Google and Meta, have reported ballooning greenhouse gas emissions since 2020. Data centers crammed with machines running Artificial courses all day and evening are largely to blame.

According to the World Economic Forum, the number of system horsepower dedicated to AI is estimated to be double every 100 days starting in April. Oil power plants that were once scheduled to shut down had been revitalized to fuel this increase in the US, where numerous Artificial technology inventors are based.

Second, what actually is AI?

According to Sandra Peter and Kai Riemer, technology researchers at the University of Sydney,” the kind of Artificial we are seeing in consumer goods now identifies habits.” ” Unlike standard coding, where developers directly plan how a program works, AI’ learns ‘ these patterns from huge datasets, enabling it to execute tasks”.

Data computers operate 24/7 while Artificial programs are” trained” and fed sizable amounts of data over a period of weeks and months. When up to speed, an AI can perform a task 33 times more efficiently than conventional application.

According to Gordon Noble and Fiona Berry, conservation researchers at the University of Technology Sydney, a single keyword to an AI-powered robot can take ten times as much energy as a standard Google research.

According to them,” This huge demand for energy causes increases in carbon emissions and water use, which may put additional strain on power systems that are already under pressure from climate change.”

Data centres are both hungry and power-hungry: thousands of liters of water must be pumped to keep them cool. These huge server warehouses are competing with people for more power and water, which could be lethal in the event of a heat or drought.

A controversial answer

According to Noble and Berry, experts just have a limited understanding of AI’s source diet. Only 5 % of Australian conservation professionals believed data centre operators provided thorough knowledge about their economic effects, according to a survey.

Despite its ferocious taste, AI is hailed as a Swiss army knife of planet-repairing.

According to Ehsan Noroozinejad and Seyedali Mirjalili, AI researchers at Western Sydney University and Torrens University Australia, AI’s capability to process mountains of information allows it to identify early warning signs of a developing storm or storm and monitor how the environment is changing.

” For instance, it is apparently measure changes in oceans 10, 000 times faster than a mortal can”, they add.

The University of East London management experts Kirk Chang and Alina Vaduva raise concerns that AI may improve the accuracy of Earth’s climate models.

AI could monitor the entire electricity grid carefully and organize generators so that they use less energy while meeting demand. Artificial models may identify waste materials for recycling and look at air pollution to identify its sources. AI systems on farms had monitor the weather and soil conditions to make sure crops are given the least amount of water possible.

But, AI’s claims to productivity are unfortunately undermined by a well-worn trouble. When mankind improves an action through technology, the power or source savings are typically used to improve the activity or others.

” The advantage of an automatic car may increase people’s vacation and in a worst-case situation, double the amount of electricity used for transfer”, says Felippa Amanta, a PhD candidate in modern technologies and climate change.

And while it is beneficial to consider what AI might do, it is crucial to remember what it is presently doing. According to a Scientific American research, AI was used in oil removal in 2019 to significantly boost production. Somewhere, targeted marketing that uses AI creates desire for material items. More mass-produced things, more pollution.

Does our response to climate change have to be high-tech?

A reliable energy source is frequently the first thing to go when a culture disaster like Hurricane Helene, which over the weekend claimed more than 150 life in the south-eastern US. AI can be of much support in these situations.

Low-tech answers to life’s issues are usually more resilient and small coal. In fact, the majority of them have been around for a very long time, much like the fruit rooms, which were used in England as early as the Middle Ages to create Mediterranean produce.

” ‘ Low-tech’ does not mean a profit to mediaeval ways of living. However, more thoughtful decision in our technology choices and consideration of their benefits are required, according to engineering expert Chris McMahon from the University of Bristol.

” What’s more, low-tech options generally rely on camaraderie. This involves encouraging social relationships, for example through social music or dancing, rather than fostering the hyper-individualism encouraged by resource-hungry online devices”.

Jack Marley is environment energy editor, The Conversation

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

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Oracle to invest .5bn in AI and cloud computing in Malaysia | FinanceAsia

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As demand for artificial intelligence ( AI ) and cloud services rises, Oracle has made plans to invest more than$ 6.5 billion to establish a public cloud region in Malsyais. The upcoming cloud region, Oracle’s twelfth in Asia Pacific ( Apac ) will enable Oracle customers and partners in Malaysia to leverage AI infrastructure and services and migrate mission-critical workloads to Oracle Cloud Infrastructure&nbsp, ( OCI).

The planned public cloud location may enable Malaysian firms modernise their applications, travel all load to the fog, and develop with data, analytics, and AI, according to a company media release. &nbsp,

Customers will have access to OCI Generative AI Agents&nbsp, with retrieval-augmented generation (RAG ) capabilities, accelerated computing and generative AI services to help keep sovereign AI models within country borders, and the OCI Supercluster, a large AI supercomputer&nbsp, in the cloud, the release said. In addition, over1 50 additional services may be made accessible.

” We warmly welcome Oracle’s$ 6.5 billion investment in Malaysia, which represents yet another expansion of their 36-year footprint in Malaysia”, said YB senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, minister of investment, trade and industry ( MITI), Malaysia.

The minister added:” This funding will enable Indonesian institutions, particularly small and medium-sized enterprises, with modern and cutting-edge AI and sky technologies to enhance their worldwide competitiveness. It also represents a major step in the direction of the optimistic 3 000 intelligent factory goal of the New Industrial Master Plan by 2030. The establishment of a common cloud area in Malaysia by Oracle highlights Malaysia’s facilities readiness and its growing reputation as a top South Asian destination for online investments.

” Malaysia offers special growth prospects for companies looking to accelerate their growth with the latest electronic systems”, said Garrett Ilg, executive vice president and general director, Japan &amp, Asia Pacific, Oracle. &nbsp,

Growing desire

The move by Oracle comes amid growing demand for AI and data centres in Asia Pacific ( Apac ), with Blackstone’s$ 24 billion recent deal for Sydney-headquartered AirTrunk one such example. &nbsp,

” Rapidly growing need for AI services prompts calls for more data centres that keep large amounts of data and computing power to teach and build AI models”, said Franco Chiam, vice president, fog, data center and future electric infrastructure, Apac, IDC.

Chiam added:” According to IDC FutureScape’ The Network and Cloud Impact 2024 Predictions’, Malaysia’s public cloud services market is expected to grow by 27.2 % Growth from 2022 to 2027. The future Oracle sky location in Malaysia, so, signals the country’s ability to become a gateway for technical innovation and growth in Southeast Asia”.

Some Nvidia AI equipment companies will be available to clients via Oracle, including Nvidia AI Enterprise, Nvidia Omniverse, and Nvidia DGX Cloud.

Dennis Ang, senior director, enterprise business, ( Asean and ANZ region ), Nvidia, said:” With the new Oracle Cloud Malaysia Region, customers in Malaysia will gain local access to Nvidia’s accelerated, secure, and scalable platform for end-to-end AI development and deployment on OCI, helping accelerate the development of generative AI applications”.

¬ Capitol Media Limited. All rights reserved.

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Business plans delayed, revenues slashed as driving lesson shortage hurts private bus operators

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Getting HALTED

Public vehicle providers like as SMRT, SBS Transit and Tower Transit told CNA that they conduct their personal in-house training for individuals, and so&nbsp, are unaffected&nbsp, by the lack of driving training games.

The waitlists for securing teaching slots for private business businesses could last for up to a year.

The high turnover rate for local vehicles sooner in 2024 led Mr. Farid Khan, CEO of Singapore Cab Booking, to think about employing foreigners instead.

For his ships of 12 trucks, he now employs 15 native drivers.

However, Mr. Khan’s ideas were put on hold after learning about the lengthy waiting periods. &nbsp, &nbsp,

The disruptions, which began earlier this year, were disclosed to him by the foreign worker recruitment companies he had spoken to for assistance in finding employees. &nbsp,

” We need to find a time and date for the exam so that it coincides with their stay around.” It’s very difficult, the demand is there, but the supply ( of drivers ) is less”, Mr Khan added. &nbsp,

The condition was harsh on businesses like his, according to the director of a different bus charter company that has a fleet of 90 buses.

The vehicle has no other options. During this time, he’s never supposed to do anything and just wait for the licence”, he reiterated. &nbsp,

Employees usually only have two years to complete their work permits, and they could lose the Class 4 driving test after waiting ten times for a test time. By the time they wait for their next evaluation time, their allows might be nearer to expiring, said the chairman. &nbsp,

Although foreigners and work permits do never make up the majority of his staff, he has stopped hiring new vehicles for the moment because it is “impossible to wait that long.” &nbsp,

” We think that people who require driver’s licenses for their jobs may become prioritized,” he continued. &nbsp,

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Singapore’s consumer watchdog investigating hair salon chain suspected of ‘targeting’ elderly customers

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PREVIOUSLY KNOWN AS SCISSOR & COMB

CCCS’ investigations found that the three salons had previously operated under the business name Scissor & Comb.

CASE had received similar complaints against Scissor & Comb from 2018 to 2022, with consumers allegedly billed for unwanted treatments or packages without their explicit consent.

On Wednesday afternoon, CCCS, acting under the Consumer Protection (Fair Trading) Act, obtained information and documents at the salons. It also issued a notice to the director of HairFun’s operator to produce information and documents. 

“CCCS will continue with its investigations and consider the evidence gathered to determine whether to take enforcement action against the respective HairFun salons,” it said.

“If CCCS finds that any of the HairFun salons have engaged, or are engaging, in unfair trade practices, it may seek court orders against them to, amongst other things, stop the unfair trade practices.”

CASE president Melvin Yong added: “Business owners and company directors cannot be allowed to perpetuate unfair trade practices by changing business names.

“CASE will continue to identify such cases and will work closely with CCCS to take enforcement action against these errant retailers.”

The HairFun salons have been placed on CASE’s company alert list, which is a list of companies against which it has received consumer complaints. 

Consumers are advised to check the list before entering into any transactions, said CCCS and CASE.

Members of the public who want to report cases of unfair trade practices by the HairFun salons or Scissor & Comb salons can also contact CASE.

In response to a parliamentary question by Member of Parliament (MP) Liang Eng Hwa, who had asked about a previous CCCS warning on unfair practices among hair salons, Minister for Trade and Industry Gan Kim Yong said in a written reply on May 7 that the consumer watchdog “investigates all claims of unfair practices and does not hesitate to take firm enforcement action when necessary”.

This includes seeking court injunctions to restrain errant businesses from engaging in unfair practices, he added.

Mr Gan noted that since the media release was issued in November 2023, CASE had received fewer complaints concerning hair salons.

“Between December 2023 and April 2024, CASE received 128 such complaints, compared to 154 in the prior five-month period,” he added.

“The government will continue to work closely with CASE to monitor industry practices. We will also study whether more deterrent measures are needed to deal with egregious conduct.”

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Asean urged to embrace circular economy

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Governments need to take the lead, say experts

Hong Quan Nguyen, director of the Institute for Circular Economy Development (ICED), speaks at the Asean Circular Economy Forum 2024 on Wednesday. (Photo: Pornprom Sattrabhaya)
Hong Quan Nguyen, director of the Institute for Circular Economy Development (ICED), speaks at the Asean Circular Economy Forum 2024 on Wednesday. (Photo: Pornprom Sattrabhaya)

The circular economy (CE) is the future of the world and must be driven by aggressive policies from governments, especially within the Asean community, which needs to take further steps to integrate it into the entire economic system, experts say.

“The government is key to collecting efforts from all stakeholders, including companies, local administrations and even communities, to shape it into a cohesive economic system,” said Dr Hong Quan Nguyen, director of the Institute for Circular Economy Development at Vietnam National University.

People often associate the circular economy with waste management or recycling; however, it encompasses much more. It can be applied to business models, ultimately contributing to socio-economic development, Dr Nguyen said at the Asean Circular Economy Forum (ACEF) 2024 in Bangkok on Wednesday.

The concept is bold and new, involving the entire value chain of products, including the sourcing of raw materials, the manufacturing process and customer contributions.

Each step requires different stakeholders and business models to implement, Dr Nguyen said.

Since 2021, Asean has agreed to develop a framework for the circular economy within the Asean Economic Community, providing a structured pathway in pursuit of sustainable economic development objectives.

The plan sets out an ambitious long-term vision for the circular economy, building on the strengths of existing Asean initiatives, and identifies priority focus areas for action, as well as enablers to accelerate the realisation of the goal.

“The circular economy and sustainability require long-term investments from governments, including financial and technological support to foster growth. Importantly, it also requires human awareness and understanding to drive action,” said Dr Nguyen.

“It can be said that we are just at the beginning, but we could move faster with financial investments and technological support from solid government policies.”

Dr Nguyen expressed his appreciation for Thailand’s efforts to achieve the circular economy, noting the concept has been applied successfully across many sectors, such as the refining, food and agriculture, and tourism industries.

Thailand has also adopted policies focused on a green economy and plastic waste reduction, resulting in several outstanding case studies.

However, he said there is still significant potential for growth, with many companies capable of bridging the gap to create a comprehensive circular economy.

The Asean Circular Economy Forum (ACEF) 2024 is jointly organised by the Asean Center for Sustainable Development Studies and Dialogue, C asean, the Asean Circular Economy Stakeholder Platform, the Ministry of Foreign Affairs of Denmark, the Embassy of Finland in Bangkok, Deutsche Gesellschaft für Internationale Zusammenarbeit, and the Hanns Seidel Foundation.

In light of concerns about the environment and sustainability, as well as recognition of the economic opportunities, the European Union (EU) and the Asean private sector increasingly embrace the circular economy. They recognise its potential to drive sustainable business practices, reduce environmental impact, and foster innovation, observers say.

The private sector’s adoption of circular economy principles is partly driven by a growing awareness of environmental challenges and the need for a more sustainable approach to business, as well as by government policies.

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Firms rent units at JTC’s Woodlands industrial estate for proximity to Malaysia, innovative space allocation

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MORE THAN HALF OF INDUSTRIAL ESTATE OCCUPIED

Over 65 per cent of the industrial estate is occupied by firms from sectors like semiconductor and electronics.

JTC expects more companies to get on board.

“The strategic location of Woodlands North Coast is what makes it a popular choice for businesses, especially for those with their headquarters in Singapore and a manufacturing facility in other countries like Malaysia,” said Ms Lee Mee Nee, a deputy director at JTC’s New Estates division.

She noted that the premises are about a 10-minute walk away from the upcoming RTS that will connect Singapore and Malaysia.

JTC said that the estate is part of the nation’s decentralisation plans to create self-contained regional centres and business nodes, bringing jobs closer to home for those in the north.

The corporation is re-looking at how it can tailor its space to meet changing industry needs. This includes an integrated underground network that can help to move people and goods more efficiently within the district itself.

Ms Lee added that the land zoning is under review. JTC said it will work with agencies like the Urban Redevelopment Authority as well as the Housing and Development Board to finalise the land use plan.

With the district earmarked to be the northern entry point into the upcoming Johor-Singapore Special Economic Zone (SEZ), businesses said they are eagerly awaiting for more details on what the zone entails.

Discussions between both sides are set to take place at the 11th Singapore-Malaysia Leaders’ Retreat likely to be held at the end of this year. 

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