How Elon Musk’s SpaceX Secretly Allows Investment From China – Asia Times

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This article was first published by ProPublica, a Pulitzer Prize-winning analytical news website.

Elon Musk’s aircraft large SpaceX allows owners from China to acquire stakes in the business as long as the money are routed through the Cayman Islands or other offshore privacy centers, according to previously unidentified court records.

Recently, a unique instance of SpaceX’s strategy was revealed in a hidden-in-the-radar business debate in Delaware. Both SpaceX’s chief financial officer and Iqbaljit Kahlon, a big investor, were forced to testify in the case.

Because it is a defence contractor, SpaceX prefers to avoid Chinese investors, according to Kahlon in December. There is a big exception, though, he said: SpaceX finds it “acceptable” for Foreign investors to buy into the business through offshore cars.

According to Kahlon,” the main mechanism is that those investors may come through intermediaries that they would create or that others would create.” ” Usually they do set up BVI buildings or Cayman buildings or Hong Kong institutions and various other people”, he added, using the letters of the British Virgin Islands.

Buyers are frequently kept anonymous by offshore cars. Researchers called SpaceX’s view strange, saying they were troubled by the possibility that a defense contractor may take active measures to mask foreign ownership passions.

Kahlon, who has long been close to the company’s authority, claims to be a billion-dollar stockholder. His investment company also acts as a mediator, raising money from investors to buy very sought SpaceX stocks. According to the court files, he has used funds from China to acquire stakes in SpaceX several times through the Caribbean.

The legal dispute centers on an aborted 2021 deal, when SpaceX executives grew angry after news broke that a Chinese firm was going to buy$ 50 million of the company’s stock. The order was finally cancelled by SpaceX.

In separate evidence, the jet company’s CFO explained that the media policy was” not good for our business as a government contractor”. The US government pays the company billions to handle sensitive work, such as creating a classified spy satellite network, and SpaceX’s business is built on those contracts.

Company executives were concerned that coverage of the deal could lead to problems with national security regulators in the US, according to Kahlon’s testimony and a filing from his attorneys.

Perhaps the most significant pillar of Musk’s fortune is SpaceX, which also launches rockets for NASA and sells satellite internet service. His estimated 42 % stake in the company is valued at around$ 150 billion. He would still be wealthier than Bill Gates if he had nothing else to own.

Federal law gives regulators broad power to oversee foreign investments in tech companies and defense contractors. There aren’t hard and fast rules for how much is too much, and companies only have to proactively report Chinese investments in limited circumstances.

However, the government can initiate investigations and then block or reverse transactions deemed national security threats. A foreign investor who only purchases a small percentage of a company typically does not have that authority. But experts said that federal officials regularly ask companies to add up Chinese investments into an aggregate total.

The US government claims that China consistently seeks to gain exclusive access to information about cutting-edge technology by using even minority investments to gain control over businesses in sensitive industries. US regulators view even private investors in China as potential agents of the country’s government, experts said.

The new materials do not contain any claims that China’s investments in SpaceX would be in contravention of the law or were directed by the Chinese government. The company did not respond to detailed questions from ProPublica. The reasons behind SpaceX’s strategy were left open, according to Kahlon.

It’s not uncommon for foreigners to buy US stock through a vehicle in the Cayman Islands, often to save money on taxes. However, experts said it was odd for the US company, the party on the other side of the deal, to favor such a compromise.

ProPublica spoke to 13 national security lawyers, corporate attorneys and experts in Chinese finance about the SpaceX testimony. Twelve people claimed they had never heard of a US company with this requirement and that there was no other reason to do it besides concealing Chinese ownership of SpaceX. The 13th said they had heard of companies adopting the practice as a way to hide foreign investment.

According to Andrew Verstein, a UCLA law professor who has studied defense contractors, “it is undoubtedly a policy of obfuscation.” ” It hints at potentially serious problems. We rely on businesses to be honest with the government about whether they have benefited from America’s rivals.

Elon Musk. Photo: X

The new material adds to the questions surrounding Musk’s extensive ties with China, which have taken a new urgency since the world’s richest man joined the Trump White House. Musk has regularly met with Chinese Communist Party officials to talk about his business interests, which are the basis of the majority of Tesla cars.

Last week, The New York Times reported that Musk was scheduled to get a briefing on secret plans for potential war between China and the US. Trump later claimed that the briefing had been postponed, and that the Times later reported that.

The president told reporters it would be wrong to show the war plans to the businessman:” Elon has businesses in China, and he would be susceptible perhaps to that”, Trump said.

The Delaware court records detail a network of independent middlemen selling SpaceX shares to eager Chinese investors and reveal SpaceX insiders ‘ intense obsession with secrecy in China. ( Unlike a public company, SpaceX exercises significant control over who can buy into the company, with the ability to block sales even between outside parties. )

However, the inquiry into exactly what proportion of SpaceX is owned by Chinese investors remains unanswered.

The Financial Times recently reported that Chinese investors had managed to acquire small amounts of SpaceX stock and that they were turning to offshore vehicles to do so. According to the outlet, the deals were designed to restrict the information investors could access.

The Delaware records reveal additional, previously unreported Chinese investments in SpaceX but do not say how much they were worth. Under$ 100 million was invested in SpaceX by China, making only a small portion of the total.

The experts said the court testimony is puzzling enough that it raises the possibility that SpaceX has more substantial ties to China than are publicly known and is working to mask them from US regulators. They claimed that SpaceX is trying to avoid being scrutinized for perfectly legal investments by the media or Congress. This is a more innocent explanation.

Once a welcome source of cash, Chinese investment in Silicon Valley has become the subject of intense debate in Washington as hostility between the two countries deepened in recent years.

Corporate attorneys told ProPublica they would advise their clients against requiring the use of offshore vehicles because it might give the impression that they are trying to conceal something from the government.

Bret Johnsen, the SpaceX CFO, testified in the Delaware dispute that the company does not have a formal policy about accepting investments from countries deemed adversaries by the US government. Instead, he claimed, SpaceX has “preferences that kind of feel like a policy.”

Sensitive to how such financial ties could make it “more challenging to win government contracts”, Johnsen said that he asks fund managers to” stay away from Russian, Chinese, Iranian, North Korean ownership interest”.

Johnsen wasn’t asked in the public portion of his deposition whether SpaceX was tolerant of routing Chinese money offshore. But he lent credibility to Kahlon, the investor who said that was enough to get the green light.

Johnsen stated that he has a long-standing personal connection with Kahlon and that he has spoken with him about how the business views Chinese ownership. The CFO added that he trusts Kahlon to bring in only investors that the company approves of.

According to a filing from his attorneys, Kahlon has personally assisted Chinese investors in purchasing stakes in SpaceX on” a number of occasions” through “proxies such as British Virgin Islands- or Cayman Islands-based entities. He also knows of “many” other Chinese investors who own SpaceX shares, the filing said. He learned about them from conversations with investors and brokers, as well as “from having viewed investor lists.”

Kahlon is a consummate SpaceX insider. He “has been with the company in one form or fashion longer than I have,” according to Johnsen, who has been with SpaceX for 14 years. Early in his career, Kahlon worked for Peter Thiel at the same venture capital firm that once employed JD Vance, and he first met with SpaceX around 2007 a few years after it was founded.

Kahlon eventually founded his own business, Tomales Bay Capital, and rose to prominence among the middlemen who serve would-be SpaceX investors. He’s helped people like former Education Secretary Betsy DeVos buy pieces of the rocket company. He added that as a result of the company’s efforts to export its satellite internet products to nations like India, he has also served as a “back channel” between SpaceX and international regulators.

Kahlon and Johnsen were forced to testify after the deal with a Chinese firm fell apart in late 2021, sparking years of litigation. In the same year, Kahlon had the option to purchase more than half a billion shares of SpaceX from a private equity firm in West Palm Beach. Kahlon had already brought Chinese money into SpaceX before, he testified, and he again turned to China as he gathered funds to purchase the stake.

Soon after, Kahlon made contact with Leo Group, a Chinese company that stands for” Love Each Other.” As Kahlon made his pitch during their first call, Leo was told that “it would be best not to disclose the name of SpaceX”, an executive at the Chinese company later testified. They thought that the information was extremely sensitive.

Leo quickly sent Kahlon$ 50 million. Then he sent a message to a different business associate in China saying,” Have any folks interested in spcex still?”

Kahlon claimed that he had in mind to inform Johnsen about the Leo investment and that he anticipated the CFO to approve of it. But the deal blew up after Leo mentioned SpaceX in a regulatory filing that generated widespread coverage in the Chinese business press. ( It is disputed whether Leo made the disclosure with Kahlon’s consent. )

In a panic, Kahlon enlisted a Leo vice president to try to get the articles taken down. However, when Johnsen and Tim Hughes, SpaceX’s top in-house lobbyist, saw the stories, they became alarmists.

” This is not helpful for our company as a government contractor”, the SpaceX CFO later testified regarding the press attention. It basically provides our competitors with something to use as a narrative against us.

” In my entire professional career, this was literally the worst situation that I’ve been in”, Kahlon said. ” I failed at what I believed was a fundamental responsibility in the relationship we had.”

SpaceX ultimately decided to let Kahlon buy only a smaller portion of the stake, purchasing much of the half-billion dollar investment itself. He was informed that Musk made the decision, according to contemporaneous messages and Kahlon’s testimony. However, Kahlon continued to have a strong relationship with SpaceX after the mishap, court records say, with the company allowing his firm to keep buying a large quantity of shares.

Republican lawmakers have criticized Musk’s business interests in China, which go beyond SpaceX’s ownership structure. In 2022, after Tesla opened a showroom in the Chinese region where the government runs Uyghur internment camps, then-Senator Marco Rubio tweeted,” Nationless corporations are helping the Chinese Communist Party cover up genocide”.

Nearly 40 % of Tesla’s sales were made in China last year, in addition to its expansive factory in Shanghai. The company has also secured major tax breaks and regulatory victories in the country. The Chinese premier gave Musk the country’s green card in the spring of 2019.

In recent years, the billionaire has offered sympathetic remarks about China’s desire to reclaim Taiwan and lavished praise on the government. At the conclusion of Trump’s first term, Musk said,” My experience with the government of China is that they actually are very responsive to the people.” ” In fact, possibly more responsive to the happiness of people than in the US”.

Josh Kaplan can be reached via email at joshua. kaplan@propublica .org and by Signal or WhatsApp at 734-834-9383. Justin Elliott can be reached via WhatsApp, WhatsApp, or email at justin@propublica .org. Alex Mierjeski contributed research. To receive stories like this one in your inbox, sign up for The Big Story newsletter.

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Gobi Partners invests undisclosed amount in SkyeChip in boost to Malaysia’s IC chip design ambitions

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  • Cash will help increase the number of skilled workers, expand, and maintain working capital.
  • Gobi’s purchase highlights SkyeChip’s explosive expansion in the device style industry.

Gobi Partners, an Asian Venture Capital firm with offices in Malaysia and Hong Kong, has made an undisclosed investment in SkyeChip, a rapidly expanding semiconductor integrated circuit ( IC ) design firm based in Penang, the heart of Malaysia’s semiconductor ecosystem, for an undisclosed sum. The Khazanah Nasional-backed Gobi Dana Impak Fund, as well as Gobi’s local resources, which are supported by renowned domestic and international organizations, served as the funding sources for the purchase. The US$ 1.6 billion ( RM$ 1.6 billion ) Dana Impak Fund, which Khazanah founded in 2022, is comprised of.

Fong Swee Kiang ( SK), who co-founded Skyechip ( TM) in 2019 along with and Teh Chee Hak and about 30 other experienced semiconductor engineers, was contacted for comment because of binding non-disclosure agreements. The members bring together more than 50 years of experience in the semiconductor industry, with 32 of those times spent at Intel and periods in the US and Malaysia. Skyechip has grown to over 330 professionals now, and it has granted over 102 US patents as a mixed patent payment. The majority of the inventions were created during their earlier periods with international semicon companies. &nbsp,

Gobi stated in a statement that the purchase will help meet SkyeChip’s skills acquisition, business expansion plans, and working capital requirements. The move, according to the statement, aligns with Khazanah’s Dana Impak authority to support Indonesian businesses that advance Malaysia’s semiconductor and advanced manufacturing ecosystems by promoting scientific innovation, social flexibility, and long-term financial resilience. The company’s proprietary intellectual property, commitment to research and development, and expansion into custom application-specific integrated circuit ( ASIC ) design will strengthen its position on the market and strengthen Malaysia’s position within the global chip ecosystem.

kyeChip is a company that creates custom ASICs and silicon intellectual property for high-end applications like high-performance computing ( HPC ) and artificial intelligence ( AI ) for advanced applications. Gobi’s funding is a reflection of the bank’s rapid expansion in the chip design industry, which had established a solid reputation just a few years after its founding.

Gobi believes that the Southeast Asian-based manufacturers ‘ growing international demand, in addition to the company’s significant progress in key end-markets like AI and HPC, makes it possible for the company to expand for the long term. Moreover, Malaysia’s proper location and changing ecosystem make it a top location for semiconductor innovation in the area.

Co-founder and chairman of Gobi Partners, Thomas G. Tsao, stated that SkyeChip is well-positioned to capitalize on the growing need for advanced semiconductor options, especially in AI and HPC software. We look forward to working with Stat and Chee Hak through their upcoming rise as they have created a fierce company at the forefront of Internet and Circuit design.

Our company’s executive director, Gobi Partners, Hisham Ibrahim, stated,” We are glad that SkyeChip has chosen to mate with us, and we think our expenditure will help SkyeChip grow and help it grow.”

From left: Fong Swee Kiang (SK), CEO, SkyeChip; Teh Chee Hak, CTO, SkyeChip; Thomas G. Tsao, co-founder and chairperson, Gobi Partners; Hisham Ibrahim, executive director, Gobi Partners.

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Why the buzz around investing in China is only getting louder amid US-led trade spats

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Growth has recently been a hot topic in the minds of business executives, industry analysts, and investment advisors.

This is in reaction to the government’s decision to impose tariffs of 10 to 25 % on goods from China, Mexico, and Canada. Additionally, it has imposed tariffs on imports of steel and aluminum and pledged to establish mutual tariffs on all US trade partners starting on April 2.

According to Rishi Kapoor, vice president and general investment officer at Bahrain-based other investment company Investcorp, these changes in the US administration have highlighted the benefits of growth.

The value, the benefits of growth, he said to a section at the WEF forum,” This thing that had been shortchanged for a period of time… that’s then up to the fore.”

CHANCES IN CHINA

According to Ziad Chalhoub, chief financial officer of Dubai-based Majid Al Futtaim Holding, a company that owns and operates shopping malls, financial, and resort properties in the Middle East and North Africa, America’s policies are also affecting money flows.

” I believe that emerging markets are going to begin growing back up again, and I believe that will open up a lot of opportunities for businesses around the world, especially in Asia,” he said.

Many people, including James Soutar, a companion at Hong Kong-based Pacat Capital Management, today see potential in China.

Chinese stocks have shown themselves to have a much stronger underlying purchase case than their American counterparts, Soutar told CNA.

He noted that the company has found that Chinese firms outperform their international competitors in terms of percentage, returns on capital, and capital, as well as earnings per share growth, across different sectors.

” In addition, the stocks of those Chinese firms are trading at a considerable pricing discount to world peers,” Soutar noted.

In recent months, the industry has begun to recognize those qualities, but we still think there is still a long way to go.

Given the current political environment, economy players said they are on the lookout for road bumps.

Hu from Primavera Capital Group claimed that China is vulnerable because of its trading business and that tit-for-tat tariffs pose a real threat.

He noted that China also has a sizable local business and a sizable middle-class business.

Domestic demand rises, as evidenced by China’s ability to boost the confidence of the ordinary Chinese consumer and their willingness to invest. Whatever pull brought on by taxes, that will more than make up for it.

He did point out that taxes are terrible, especially if they persist for a long time.

” I hope the two governments ( US and China ) will continue to put the intense emotions aside, come to the table to negotiate, come to a deal, and make sure whatever the tariffs are are temporarily ( and be ) lifted in time for each other’s mutual interests ( and ) the world.”

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43 workplace deaths in Singapore in 2024, up from previous year

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WORKPLACE DEATHS IN&nbsp, Development Market

The construction industry was responsible for 20 fatalities next month, which is the most of any market, and those related to the workplace have increased steadily since 2020, when there were nine casualties. &nbsp,

The sea market, which had five mortality, followed by the transportation and storage business, which had the second-highest number of fatalities, with nine. &nbsp,

The sectors responsible for water supply, sewage, and spare management each had three fatalities, and the manufacturing industry had two. &nbsp, &nbsp,

According to MOM, automotive incidents, suffocating/drowning, and collapse/failure of structures and tools were the top three reasons of office fatalities in 2024. &nbsp,

These collectively accounted for 56 % ( 24 fatal injuries ) of the total number of workplace fatal injuries in 2024, it added.

The construction industry had a fatal rate of 3.7 % per 100, 000 workers last year, up from 3.4 % the previous year. &nbsp,

On December 13, 2024, MOM noted that the construction industry had experienced 15 work fatalities in the next half of the time, and that the sector’s” concerning” workplace safety and health achievement. &nbsp, &nbsp,

After the industry saw 10 fatalities between July and October, a deliberate safety timeout was introduced for construction companies in November of last year.

The sea market saw a rise in office mortality rate of 8.1 % for 100, 000 staff in 2024, up from zero in 2023. &nbsp,

In a media release released on Wednesday, MOM stated that” two of the five fatalities involved swimming operations where widespread security lapses were observed” and that “four of the five fatalities involved works on vessels at anchor. &nbsp,

” MOM and the Maritime and Port Authority of Singapore increased their enforcement efforts in the industry and will continue to take strict actions against businesses and individuals who break the rules.”

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Asian calm before Trump’s inflationary storm – Asia Times

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The US president may appear to Asia if Donald Trump were willing to pick up some fresh economic cliches.

In recent days, three economy posted weaker-than-expected prices. Consumer prices in Japan dropped from 4 % to 3.7 % year-on-year in February.

Prices in Hong Kong decreased from 2 % to 1.4 % in February. Singapore’s core inflation fell to 0.6 % in February, a near four-year low. Costs decreased to 1.5 % from 1.7 % in Malaysia. Negative pressures are also present in China, of training.

Asia’s experience contrasts significantly with America, where inflation is running hotter than feared at nearly 3 %. By failing to lower interest rates, the Federal Reserve is putting a risk on Trump’s anger.

All of this is about to change however as Trump’s numerous, intertwining trade wars increase costs outside, especially in the US, where consumer prices are expected to rise and fall. And, maybe, bond yields for trading countries big and small.

Consider this a period of quiet before the incoming Trumpian prices wind. A tariff-closed US is currently much more susceptible to inflation threats than trade-focused Asia. But that’s about to shift as Trump does his worst to the international financial and trade techniques.

According to Bradley Saunders, an economist at Capital Economics,” Tariffs are just inflationary, despite what Donald Trump may show people.”

According to University of Wisconsin-Madison economist Lydia Cox,” trying to protect selected industries can really make different industries more susceptible.”

Or, in Trump’s event, make that the whole US business, apparently. Yet optimistic economists worry that Trump’s taxes does bring about both growth and inflation.

We continue to bet on the endurance of the customer, the economy, and corporate profits, but we anticipate that higher recession fears may affect valuation multiples, according to Yardeni Research president Ed Yardeni.

Yardeni adds that” we acknowledge that the challenges of a crisis and a bear market may continue to increase. It all depends on the often unpredictable chairman, who often and boldly refers to himself as” Tax Man,” showing his sturdy support for mercantilist trade policies.

Some people worry that the US is heading in the direction of an inflationary boom and development crater. Recently, Fed officials predicted US gross domestic product ( GDP ) will expand at an annual rate of just 1.7 % versus an earlier forecast of 2.1 %. The numbers “were revised in a stagflationary way,” as JPMorgan scholar Michael Feroli puts it.

For buyers looking to readjust their portfolio and guard against rising choices around recessions, Faris Mourad, an scientist at Goldman Sachs,” we like our recessions long/short set container.”

The brake in US development is quickly changing the calculus for major Asian markets, including China.

According to Shannon Nicoll, an analyst at Moody’s Analytics,” US trade policy under President Donald Trump will loosen international business confidence, which will be a pain for China.” ” Home passions are great,” China has set its progress goal at around 5 %, but it didn’t get there without breaks”.

According to Nicoll, latest statistics indicate that a “rate split in China is warranted.” ” Due to extraordinary deficit-funded spending, a flood of sovereign bonds may hit the system.” This supply of new ties will drive up bond yields and press down bond costs”.

According to Nicoll, the People’s Bank of China has been” signing the concern about a potential Silicon Valley Bank-style crisis, where local financial institutions are purchasing to many bonds at higher prices.” Capital appropriateness ratios would be threatened if these lost price too quickly. A price cut may help keep bond yields fair”.

There may always be an unexpected growth, or President Trump might notice something this week that suggests a tougher line, according to Khoon Goh, mind of Asia study at ANZ Group Holdings. So at this point, it’s challenging for markets to properly value in the danger.

Part of the problem is how badly the inflation-is-transitory deal worked out for buyers. Or for those citizens and global leaders who believed that the Trump 2.0 presidency would focus more on making deals than creating financial mischief.

For those who are unprepared for the enormous trade war that appears to be fueled more by vengeance than financial strategy, things didn’t turn out well.

Never least of which are the lights sure to come as Trump’s plan objectives meet with a China poised to drive up and Washington’s fiscal problems. Federal bond yields are rising as a result of these issues, with higher provides coming from Washington to Tokyo. &nbsp,

On January 20, Trump inherited a national debt exceeding$ 36 trillion. And based on the pundit you follow, Trump may be about to slash the debt in substantial tax cuts, whichever comes first. Or slice it violently with the huge chainsaw that Trump gave to Elon Musk.

Either outcome was present huge risks for worldwide markets. The first could see credit rating organizations snubing and the US loan rising to$ 40 trillion.

Washington was shed Moody’s Investors Service’s most recent AAA rating very quickly. Asia, of course, is instantly on the forefront of the panic that this horror would destroy in friendship, stock and money markets anywhere.

The second scenario could discover Trump’s billionaire donor continue to sabotage government structures that safeguard the value of the dollar and US Treasury securities.

Team Musk is aiming his sights on the Internal Revenue Service in addition to firing federal employees indiscriminately, including some of the people who maintain America’s atomic army. That could have credit score companies doubting Trump Nation’s ability to pull in enough tax receipts to keep pace with rising public debt release.

According to The Washington Post, the US government is anticipating a 10%-plus revenue decline by the April 15 tax registration date in comparison to the prior year. The deficit could reach$ 500 billion.

Adding to these challenges is Trump’s mistaken idea that taxes are revenue-raising equipment. Robert Fry, an independent analyst who is an analyst on US budget issues, says that the issue isn’t actually uncertainty about taxes.

” There is a growing likelihood that President Trump won’t use tariffs as leverage to force other nations to lower their business obstacles, but rather to keep them in effect long-term to increase profits and to bring manufacturing back to the United States.”

The Trump 1.0 levies from 2017-2021 didn’t lift a mathematically significant number of jobs up to the US. Otherwise, the majority of tasks that left China were relocated to Vietnam. According to academics, there is no reason to believe that Trump 2.0 does succeed in the same way that his first White House failed.

Asian central bankers, meanwhile, have reason to worry about what Trump’s haphazard economic vision means for roughly$ 3 trillion of regional savings invested in US Treasuries.

For instance, Musk and his partners were given access to extremely sensitive US Treasury Department data, including the national payment method.

Former Treasury Secretary Robert Rubin, Lawrence Summers, Timothy Geithner, Jacob Lew, and Janet Yellen warned in a recent New York Times op-ed that” no Treasury minister in his or her first weeks in office may be put in the position where it is necessary to convince the nation and the world of our bills system or our commitment to make good on our economic duty.”

Any hint of the selective suspension of congressionally authorized payments, according to them, will constitute a breach of trust and, in the end, will constitute a form of default. And once we lose our credibility, it will be challenging to recover.

Trump also has made no mystery of his dislike of Federal Reserve officials setting US rates independent from political input. Trump criticized the Fed’s failure to ease rates last week, pleading that Jerome Powell “do the right thing” and perform the White House’s wishes.

With US inflation currently well above the Fed’s preferred 2 %, looser monetary policy may lead to a decline in dollar assets. It also might fuel a bubble in stocks and other speculative assets — and real estate.

Given these dangers, the US might have much more success if it concentrated on deregulating and massive subsidies for industries like those that Musk’s private companies rely on.

The US is so susceptible to inflation because of the lack of investment in productivity-boosting industries and technologies.

In the meantime, Asia is doing its best to stay off Trump’s radar screen. There is a risk that burgeoning bilateral deficits could eventually lead to US tariffs on other Asian economies, according to Andrew Tilton, an economist at Goldman Sachs.

Tilton goes on to say that” Korea, Taiwan, and especially Vietnam have seen significant trade gains versus the US,” something Trump 2.0 isn’t likely to reverse. As such, Asia’s top trading nations may try to narrow surpluses to “deflect attention” from Team Trump.

According to Barclays Bank economist Brian Tan,” trade policy is where Trump is likely to be most consequential for emerging Asia in his second term as US president,” inflicting “greater pain” on more open economies.

Suffice it to say that the president doesn’t seem to realize that America’s debt excesses will also challenge the US government. So might the inflationary fallout from his beloved tariffs.

Follow William Pesek on X using the hashtag# WilliamPesek

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Singapore, Vietnam sign five agreements across digital development, people ties, electricity trade

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On Wednesday ( Mar 26 ), Singapore and Vietnam signed five agreements, including ones relating to energy and financial services, as Prime Minister Lawrence Wong and his counterpart Pham Minh Chinh reaffirmed their close ties.

The new Vietnam-Singapore Industrial Park (VSIP ) in Thai Binh province, the most recent in a series of projects, Mr. Wong called” the cornerstone of our bilateral cooperation for almost three decades,” was also completed by Mr. Wong and Mr. Chinh.

On the next time of his visit to Hanoi, Mr. Wong said there is a considerable scope for both nations to follow responsible and resilient development up.

He went to the Ho Chi Minh Mausoleum earlier in the day, where he laid a flower.

Contracts ABOVE Industries

At the Office of Government in the Taiwanese capital, the two primary officials observed the five letters exchanges between officials from both sides.

They contained letters of intent to support the recently announced Comprehensive Strategic Partnership ( CSP) and promote cross-border electricity trade within the wider ASEAN power grid.

Additionally, there were three memoranda of understandings ( MOUs ) on people-to-people exchange, digital development and innovation, and cross-border QR code payment between both parties.

Mr. Wong cited the nearby economic partnership between Vietnam and Singapore.

With over US$ 10 billion in foreign strong expense, he said,” Next time, we were the largest foreign investment in Vietnam.”

” But soon very soon, we may also rank among the top five overall.”

Mr. Wong cited significant activities on both factors, such as the engagement on carbon credits and the transfer of low-carbon energy into Singapore through renewable energy projects and the dropping of deepwater wires.

We appoint the assistance of Vietnam’s central and local authorities, according to Mr. Wong,” we hope that these jointly valuable collaborations will be able to progress in a timely manner.”

Core OF Participation

Mr. Wong and Mr. Chinh also witnessed the VSIP project’s four Accords being finalized.

They have” set the standard for business park development in Vietnam,” according to Mr. Wong,” by providing investors with international-standard infrastructure that enables them to function seamlessly.”

He added that both parties can grow the job so that it goes beyond simply industrial parks to other fields like urbanization and science and technology.

In Vietnam, there are now 20 parks spread across 14 regions. More than 1, 000 client companies have invested in these, creating 320, 000 work, and raising over US$ 23 billion in investment capital as a result.

According to Mr. Wong, potential VSIPs will be constructed more intelligently and environmentally.

They may use innovation and technology to better manage spend, spend, and traffic, he continued.

This may improve business efficiency, reduce costs, and benefit the environment in the long run.

Solar energy will also be used to power the facilities. He cited the case of Lego, whose shop in the Binh Duong III VSIP is fueled by rooftop solar panels and a local renewable job.

” I’m certain there will be many more in the future because businesses everywhere want to decarbonize their supply chains and there is a high demand for green businesses and business parks,” said Mr. Wong.

He added that potential VSIPs will be more attached.

For example, the Thai Binh territory is being connected by a bridge to Lach Huyen Port, making the fresh Thai Binh VSIP “well-positioned to serve as a dish business garden.”

Mr. Chinh acknowledged Singapore’s “great purchase,” particularly through the VSIP initiative, in his remarks.

He claimed that Vietnam wants to expand the VSIP participation and that the people-to-people and social ties between the two countries have had tangible benefits.

He declared,” This VSIP concept has been a great success and will be elevated to bring the benefits to both our people.”

” We will keep promoting this model,” the model’s spokesman said.

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LexisNexis Southeast Asia releases 2025 generative AI and legal profession survey for Malaysia and Singapore

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  • 48 % of legal professionals in MY &amp, SG are confident in utilizing generative AI.
  • Without adopting conceptual AI resources, 70 % of respondents worry about falling behind.

A leading global provider of information and analytics, LexisNexis ® Legal &amp, Professional, has released the Generative AI and the Legal Profession 2025 Survey Report for Malaysia and Singapore. The report examines how the constitutional industry is implementing conceptual AI tools in daily life in light of a survey of over 400 attorneys and legal experts from both nations. It provides important insights into consciousness, utilization trends, and a future where these tools will be essential to legitimate research and practice.

Gaythri Raman, managing director of LexisNexis Southeast Asia, said,” Generative AI is breaking new ground across sectors, and its effects on the legitimate sector in Malaysia and Singapore is important.” These parts “are truly positioned to lead the implementation of AI technology.” conceptual AI is not just about efficiency; it is also changing the way legal services are provided in the legitimate career.

The report’s conclusions include:

  • 70 % of respondents believe they will fall behind if they don’t begin using conceptual AI techniques. The companies they serve ( 36 % ), peers ( 30 % ), and clients ( 16 % ) also have personal motivation, pressure, and expectations.
  • 48 % of legal experts in Malaysia and Singapore expressed confidence in their ability to use conceptual AI tools and equipment.
  • In their work, 66 % of respondents said they were using generative AI tools, with those working in law firms demonstrating greater adoption than those working internally.
  • 56 % of respondents believe that the impact of incorporating generative AI into their businesses or organizations is revolutionary or major.

Meet Lexis AI.
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Shareholders approve XLSMART merger, Axiata and Sinar Mas Set to advance regional collaboration

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In: Technology
  • Both parties signed LOIs to deepen collaboration across MY, ID & SEA
  • Following the merger, Axiata & Sinar Mas will each hold a 34.8% stake in XLSMART

Left to Right: Vivek Sood, appointed commissioner of XLSMART/Group CEO of Axiata Group, Arsjad Rasyid P.M., appointed president commissioner of XLSMART, Franky O. Widjaja, chairman of Sinar Mas Telecommunications & Technology, Rajeev Sethi, appointed president director & CEO of XLSMART) and Antony Susilo, appointed director & CFO of XLSMART at the media conference in Jakarta yesterday to announce shareholders’ approval on the XL Axiata-Smartfren merger.

Axiata Group Berhad and Sinar Mas have jointly announced that shareholders of PT XL Axiata Tbk (XL Axiata), PT Smartfren Telecom Tbk (Smartfren), and PT Smart Telcom (SmartTel) have formally approved the merger of the three companies, marking a significant milestone in Indonesia’s telecommunications sector.

In a statement, the companies said the approval was secured following extraordinary general meetings of shareholders (EGMS) held on 25 March 2025 by XL Axiata, Smartfren, and SmartTel. This follows prior in-principle regulatory approvals from Indonesia’s Ministry of Communication and Digital Affairs and the approval of the Indonesia Stock Exchange and Financial Services Authority, further solidifying institutional support for the strategic consolidation, they added.

The approval signifies the confidence of shareholders in the combined potential of XL Axiata and Smartfren, reinforcing their commitment to driving a more integrated, efficient, and innovative telecommunications industry. With this shareholder endorsement, XLSMART will continue the important roles played by XL Axiata and Smartfren in Indonesia’s development via the critical telecommunications industry. Combining XL Axiata’s extensive infrastructure and reach with Smartfren’s digital innovation, XLSMART is better able to serve consumers and businesses in the era of digitalisation.

With a subscriber base exceeding 94.3 million, annual projected revenue of US$2.76 billion (RM12.24 billion), and an EBITDA of US$1.35 billion (RM6 billion), XLSMART is well-positioned to lead the next phase of growth in Indonesia’s telecommunications sector. The landmark merger is also set to realise significant cost synergies, with an estimated annual run-rate pre-tax synergies of US$300 million (RM1.3 billion) to US$400 million (RM1.7 billion) post-integration completion.

Following the completion of the merger, Axiata Group and Sinar Mas will become the joint controlling shareholders, with each holding a 34.8% stake in XLSMART, with equal influence over its strategic direction and decisions.

To strengthen the collaboration beyond XLSMART, Axiata and Sinar Mas, on 28 January 2025, signed two letters of intent (LOIs) at a ceremony witnessed by Malaysian prime minister Anwar Ibrahim and the president of the Republic of Indonesia Prabowo Subianto at the Petronas Twin Towers in Kuala Lumpur. This coincides with Malaysia’s role as the chair of Asean, a position that allows the country to influence the regional agenda and drive collective objectives.

These LOIs laid the groundwork for deeper collaboration between the two companies, focusing on potential synergies in Malaysia, Indonesia, and Southeast Asia. The agreement envisioned joint efforts in advanced 5G solutions, enterprise services, digital infrastructure, and fintech innovations, supporting the broader goal of accelerating digital transformation across the region. The shareholder approvals mark a critical step forward in realising that vision and advancing strategic cooperation between the two companies.

As part of the newly formed company’s leadership, Rajeev Sethi has been appointed as president director and CEO, supported by a robust executive team that includes nine directors and nine commissioners, ensuring a well-balanced representation from both XL Axiata and Smartfren. Rajeev has extensive and successful experience in transforming telecommunications companies in emerging markets that will help XLSMART to realise its synergy values, and was previously the CEO at Robi Axiata Bangladesh.

The integration of these leadership teams also reflects the company’s focus on operational excellence, strategic growth, and synergy-driven transformation. XLSMART will focus on expanding network coverage, enhancing service quality, and driving digital innovation, while also unlocking opportunities in mobile broadband, enterprise services, and emerging digital technologies to meet the evolving needs of Indonesia’s telecommunications market. The merged entity will combine Axiata’s regional expertise and deep experience in managing integrated operations with the local knowledge and established presence of Sinar Mas, creating a larger, financially robust organisation.

Franky Oesman Widjaja, chairman of Sinar Mas Telecommunications and Technology, emphasised the significance of this merger in strengthening Indonesia’s digital economy. “We believe this consolidation is a crucial step toward creating a more robust telecommunications industry in Indonesia. By combining XL Axiata’s solid infrastructure with Smartfren’s customer-focused digital services, XLSMART will offer enhanced connectivity solutions that empower consumers and businesses while supporting the nation’s long-term digital aspirations.”

“We are excited for the opportunity to drive meaningful progress for Indonesia’s digital economy, ensuring that our customers, partners, and stakeholders benefit from increased efficiency, broader coverage, and superior service quality,” he added.

Meanwhile, Vivek Sood, group CEO of Axiata Group, highlighted the broader impact of the transaction. “This merger marks a defining moment in Indonesia’s digital landscape. The confidence of our shareholders in approving this transaction underscores our vision to build a stronger, more resilient telecommunications entity that delivers value through scale, efficiency, and innovation. With XLSMART, we are poised to enhance customer experience, expand digital services, and contribute to the growth of Indonesia’s digital economy.”

“This merger is not only about combining two businesses but about creating a new, forward-looking company that will set benchmarks in innovation, service quality, and operational excellence. We believe this business combination will allow for the improved financial health of the industry, and we are confident XLSMART will emerge as a formidable player—enabling us to significantly accelerate investments in digital infrastructure and innovation, and ultimately empower communities,” he added.

According to the parties, the transition towards XLSMART will be carefully managed to ensure a seamless integration for customers, employees, and partners. The company will prioritise a smooth operational transition while maintaining service reliability and customer satisfaction. Three brands (XL, Smartfren, and Axis), which are well-positioned in their respective customer segments and complementary, will continue. Over the coming months, Axiata and Sinar Mas will work closely to align business operations, optimise network infrastructure, and explore new service offerings that capitalise on the strengths of the merged entity.

Beyond the business integration, the formation of XLSMART represents a deeper strategic collaboration between Malaysia and Indonesia in the digital economy sector. As two of Southeast Asia’s largest economies, Malaysia and Indonesia share a common vision of fostering digital inclusion, enhancing connectivity, and leveraging technology as a key driver of economic growth.

The partnership between Axiata and Sinar Mas is a testament to this shared ambition, demonstrating how cross-border collaborations can create value not just for businesses but for entire economies. Through this merger, both companies are setting a new standard for regional telecommunications partnerships, integrating expertise, resources, and infrastructure to deliver innovative and customer-centric solutions. Furthermore, this collaboration aligns with the broader national and regional digital economy agendas, ensuring that the telecommunications sector remains a key enabler of economic progress.

As Indonesia and Malaysia continue to strengthen their economic ties, this partnership stands as a model for future corporate alliances that transcend borders, creating a more interconnected, competitive, and sustainable digital ecosystem. With XLSMART, Axiata and Sinar Mas reaffirm their commitment to fostering stronger corporate partnerships that drive innovation, support national digital agendas, and contribute to Southeast Asia’s growing role as a global digital powerhouse.

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Paetongtarn lays down tax challenge

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In: South-East Asia

The criticism is welcome to ask for an investigation into home transactions, according to PM.

PUBLISHED: 25 Mar 2025 at 21: 06

Prime Minister Paetongtarn Shinawatra speaks to reporters prior to the opening of the no-confidence debate at parliament in Bangkok on Monday. (Photo: Reuters)
Prior to the start of the no-confidence conversation at the Bangkok parliament on Monday, Prime Minister Paetongtarn Shinawatra addresses writers. ( Photo: Reuters )

Prime Minister Paetongtarn Shinawatra pushed the opposition to file a complaint with the Revenue Department on Tuesday asking them to stop paying the 218.7 million ringgit estate taxes.

Ms. Paetongtarn told an audience of writers outside parliament that she was unconcerned with the opponent’s prepare to file a complaint with the tax agency and launch an ethics research.

” Go ahead and following the process so that everything is crystal obvious,” she urged. ” As for myself, I have often followed all the rules and restrictions. We welcome any inquiry. I knew when I entered elections that I would face inquiries.

Women’s Party MP Wiroj Lakkhanaadisorn accused Ms. Paetongtarn of avoiding inheritance taxes of 218.7 million baht by&nbsp and accepting stocks for 4.43 billion ringgit from family members on Monday.

Bank notes were issued for pay, but Mr. Wiroj inquired as to why they did not specify a payment deadline and were interest-free.

The director-general of the Revenue Department, Pinsai Suraswadi, stated on Tuesday that the Civil and Commercial Code permits promissory notes to describe a repayment period and may or may not contain an interest rate.

However, it must be clearly stated on the word if interest is charged.

The owner is responsible for paying taxes when selling stock on the secondary market. According to Mr. Pinsai, salary is only recognized when a personal income tax is paid when it is paid in full in money.

Tax may get paid when the statement is paid in cash if shares are sold using bank information. In this situation, it is well known that Ms. Paetongtarn may receive a cash payment in 2026, which means that the recipient has factor this income into their 2026 tax calculations when preparing a return in 2027.

The receipt of the bank note does not affect the tax until it is received.

This type of revenue falls under Category 4, which is subject to withholding income at a liberal price and must also be taken into account in the citizen’s general progressive income tax analysis.

Mr. Pinsai emphasized that these revenue laws have been in place since before 1987. He continued,” The division has consistently applied the money rule in all circumstances.”

Mr. Wiroj responded by saying that the government is awaiting more information from the top regarding the note and the tax payment for the upcoming year.

The Revenue Department needs to know whether such deals are commonplace in organization as the top claimed and whether they are legitimate for dealing in anonymity.

He stated that he intends to fully address the problem to the Revenue Department for immediate clarity.

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