Work It podcast: Why there is now a wider conversation about the purpose of work

SINGAPORE: Companies on the hunt for talent in a tight labour market are seeing potential candidates asking questions that go beyond how much they are paid – focusing instead on what the organisation can do for them, so they are engaged in meaningful work. 

“Everyone has choices, especially those who are younger. They are a lot more mobile, at the earliest stages in their career. (So they ask) what’s your proposition for me as an employer, why should I join you?” said Mr Hong Siu Ming, senior vice president for people, culture and group rewards at Great Eastern. 

Speaking to hosts Crispina Robert and Adrian Tan, Mr Hong, who studied for a banking career but eventually joined human resources, said an entire generation has been shaped by a more globalised world. 

They have different attitudes towards life and work and for them, a sense of purpose or meaning is becoming more important, he added. 

According to the 44-year-old, people who find meaning in work also tend to do a lot better in the long run. He puts this down to what he calls “discretionary effort’’ and this comes from being highly engaged. 

“What engagement (looks like) is that you have extra discretionary effort. Because you find meaning and purpose in what you do, you go beyond the mundane tasks. That extra effort becomes obvious, and you will be recognised,’’ said Mr Hong. In short, this can lead to greater monetary rewards down the line.  

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Five suggestions to improve the COE system and whether they would work

The ministry will continue to study the impact of private-hire cars on the market, he said, but added that they give commuters more choices and serve a wider segment of society than private cars.

“We should be careful when making calls about imposing any caps, sometimes arbitrary, on the PHC population,” he said.

Associate Professor Raymond Ong, from the Department of Civil and Environmental Engineering at NUS, said introducing a private-hire quota is a “double-edged sword”. 

While it could reduce COE prices marginally, at the same time, it “inevitably will lead to poorer reliability” or higher prices for private-hire services, he told TODAY recently

Mr Yeo Swee Guan, management associate at Motorist Singapore, said it may be more useful to place private-hire cars in another COE category together with car-sharing and rental vehicles.

“Placing operators of such companies in a separate COE bidding category may indeed yield significant results in calming COE prices for the general public, especially during this period when COE supplies are tight,” he told CNA.

Mr Yeo added that these companies have “strong financial incentive” to secure more vehicles and can offset high COE premiums through rental revenue.

2. TAX THOSE WHO HAVE MORE CARS

Many online commenters have called for an additional buyers’ stamp duty (ABSD) for cars, like for property – to tax those who buy more than one car.

But less than 15 per cent of households own multiple cars today, down from 19 per cent in 2012, said the Transport Minister.

At the end of October last year, 471,000 households owned cars, and 12 per cent of those owned two cars. Less than 3 per cent owned three or more cars.

The proportions have remained consistent, Mr Iswaran said, adding that multiple-car households are spread across public housing, condominiums and landed property.

Assoc Prof Ong agreed, saying in the TODAY article that additional taxes would have a small impact on COE prices if those who own more than one car are the minority.

3. SEPARATE COE CATEGORY FOR FOREIGNERS

Have foreigners driven up demand for cars in Singapore and should such buyers come under a separate COE category? 

Between July 2020 and December 2022, less than an average of 3 per cent of car COEs were allocated to foreigners, Mr Iswaran said.

“The proportion of car COEs secured by foreigners remains low and has not changed significantly over the years,” he said.

Motorist Singapore’s Mr Yeo said some people think high-income expatriates are crowding out the Category B market by purchasing luxury vehicles. But as Mr Iswaran said, demand from foreigners is marginal, Mr Yeo pointed out.

“The optics of creating a separate category of COE based not on vehicle type, but instead on the nationality of the vehicle’s owner, may not be palatable,” he added.

4. CONSIDER THE NEEDS OF THE APPLICANT   

The Transport Minister highlighted difficulties in implementing a points-based system that takes the car owner’s needs into account, which was suggested in parliament. Families with young children or people with disabilities were cited as possible groups that would be awarded “extra points”.

Mr Iswaran asked if these groups would pay less for their COE.

“Or does it mean that they go into a different pool? And if they go into a different pool, how do we segment the pools?” he said.

Mr Yeo of Motorist Singapore pointed to the Disabled Persons Scheme for citizens with permanent disabilities who cannot take public transport but are able to drive and need a vehicle for work.

Those who qualify are exempt from paying the COE premium.

But giving concessions to groups such as families with young children may not be practical as there could be ways to game the system. The vehicle could easily be used by other family members after being purchased in a qualifying person’s name, he said.

“Furthermore, there could be too many groups to prescribe preferential subsidies or priorities to,” he said. “That would defeat the purpose of creating priority groups since most households would end up qualifying for one or the other group.”

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Philippines’ new military deal with US: Will it tilt power balance in South China Sea?

Meer has been fishing for 39 years but has gone only twice to Scarborough Shoal, even though fish are “really abundant” there.

The disputed reef in the South China Sea is within the Philippines’ exclusive economic zone but effectively under Chinese control.

“I don’t go there any more because we’ve been prohibited. … There are Chinese guards at Scarborough,” he said. “We’d get scared because they have guns. That’s why we’d rather just go home.”

Although the Permanent Court of Arbitration in The Hague has rejected most of Beijing’s claims to the South China Sea in a case brought by the Philippines, small-scale Southeast Asian fishermen still find their right to fish under threat.

With greater US access to his country’s bases and facilities, “we have protection from those who want to occupy the Philippines”, said fisherman Jeremias Mesia.

“At the very least, (China) will be more careful in the way it treats us,” said Jay Batongbacal, the director of the Institute for Maritime Affairs and Law of the Sea at the University of the Philippines.

“China is controlling almost the whole region. Our own fisher folk can’t even fish in our own waters because China prevents them from doing so.

“Because of that, we have no choice but to strengthen our security alliance with the US so we can protect our own interests.”

CHINA NOT THE ENEMY?

In northern Luzon’s Cagayan province, however, Governor Manuel Mamba begs to differ. China, he said, is “not an enemy”.

“We have intermarriages with them. We have good relations with the Chinese,” he said. During disasters and the COVID-19 pandemic, China rendered help by giving rice, for instance, he added.

Cagayan is home to two of the four new sites the US military can access: Camilo Osias naval base and Cagayan North International Airport, or Lal-lo airport. Mamba worries that this will “invite more enemies” and drive away Chinese investors.

His priority is to reopen Cagayan’s Aparri port for it to be a gateway to Northeast Asia. He sees China as the “biggest market” for his province’s agricultural, fishery and livestock products.

“I’d rather trust this neighbour than somebody who’s far, far away,” he said.

“What I’m saying is, most of the people do not discuss EDCA on the streets here. What the people discuss here is how they’d be able to fill their stomachs every day.”

The rehabilitation of Aparri port would require dredging the sea floor to allow bigger ships to dock. Part of the Cagayan River Restoration Project, this also aims to mitigate flooding.

In 2020, news outlet The Philippine Star reported that two companies, Riverfront Construction Incorporated and Great River North Consortium, had been accredited for the project and would foot its cost. But controversy has erupted since.

Environmentalists, fishery representatives and Aparri’s mayor have claimed the dredging is a cover for black sand mining, and there is concern that the black sand is being shipped to China, news site Rappler reported in 2021. Extensive extraction of the resource elsewhere in the Philippines has caused coastlines to recede.

In response, Mamba challenged the critics to prove their allegations.

Like him, International Peace Bureau co-president Corazon Fabros disagrees with the “Western narrative that the enemy is China”.

“Who gains in (the) billions of dollars when there’s war? The one who (would make) a killing (from) a situation of war is the US,” she said.

“They sell the arms, they sell all these fighter jets and everything, including what the soldiers will wear.”

Analysts noted, however, that former Philippine president Rodrigo Duterte’s pivoting towards China did not ultimately benefit his country’s strategic interests — “particularly in the West Philippine Sea”, cited Aries Arugay, a visiting fellow at Singapore’s ISEAS – Yusof Ishak Institute.

“Because Chinese incursions … not only continued but … intensified, despite the gesture of cordiality being extended by the Duterte administration.”

During much of his term from 2016 to last year, Duterte distanced himself from the US. He even threatened to suspend defence pacts including the Visiting Forces Agreement (VFA) and the annual Balikatan joint military exercise.

In the final months of his presidency, however, the Philippines and the US held their largest joint military exercise in seven years.

NOT A ZERO-SUM GAME

Under the current president, Ferdinand Marcos Junior, ties have grown warmer, and he was welcomed to the White House this month by US President Joe Biden.

But Marcos Jr has not turned his back on China, which he visited in January and returned from with US$22.8 billion in investment pledges.

Maximising the benefits from both superpowers will be a “balancing act”, said Batongbacal. “They have an offer, but that always comes at a price.”

There is always apprehension that each time the Philippines “gets closer to the US”, there would be a “corresponding deterioration” in relations with China, said Arugay.

But other Southeast Asian countries have shown it is possible to manage relationships with both superpowers, “so Philippine foreign policy and strategic policy should be clear that there’s no zero-sum game here”.

When it comes to the EDCA, first signed in 2014, the Philippines has also struck some sort of balance.

It fulfilled its constitutional requirement that bars foreign troops from having a permanent presence in the country, by allowing for the rotation of American forces stationed at its bases.

And it skirted the “very unpopular” notion of having foreign bases in the country, as the sites and facilities remain under Philippine control, Arugay noted.

Fabros’ opposition to the VFA and to the presence of foreign forces in her country stems from the fact that US troops are given “a lot of privileges”, like where they are detained if convicted of a crime and being allowed to remain in US custody while judicial procedures are ongoing.

In 2005, US Marine Lance Corporal Daniel Smith was accused of raping a Filipina and was allowed to be detained at the US embassy while his case was under appeal. Eventually, he was acquitted.

In 2014, another Marine, Lance Corporal Joseph Scott Pemberton, killed a transgender woman. He was pardoned by Duterte in 2020 after serving less than six years of his sentence in an air-conditioned cell at a Philippine military base.

These cases show the “asymmetrical relationship” between the Philippines and the US and can stir negative sentiments, adding to the “historical trauma”, said Arugay.

But Batongbacal reckoned that with smartphones and social media, such incidents “won’t happen easily any more”.

Technology has occasioned a bittersweet ending in one case at least: Last year, Bulawan’s son, Edmark, saw his father for the first time after she used DNA testing to track him down.

“I’m happy for him now, for his future, because we found his father,” she said.

Watch this episode of Insight here. The programme airs on Thursdays at 9pm.

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US debt default could quickly trigger dollar’s collapse

Congressional leaders at loggerheads over a debt ceiling impasse sat down with President Joe Biden on May 9, 2023, as the clock ticks down to a potentially catastrophic default if nothing is done by the end of the month.

Republicans, who regained control of the House of Representatives in November 2022, are threatening not to allow an increase in the debt limit unless they get spending cuts and regulatory rollbacks in return, which they outlined in a bill passed in April 2023. In so doing, they risk pushing the US government into default.

It feels a lot like a case of deja vu all over again.

Brinkmanship over the debt ceiling has become a regular ritual – it happened under the Clinton administration in 1995, then again with Barack Obama as president in 2011, and more recently in 2021.

Defaulting on the national debt would have real-life consequences. Even the threat of pushing the US into default has an economic impact.

In August 2021, the mere prospect of a potential default led to an unprecedented downgrade of the the nation’s credit rating, hurting America’s financial prestige as well as countless individuals, including retirees.

And that was caused by the mere specter of default. An actual default would be far more damaging.

Dollar’s demise

Possibly the most serious consequence would be the collapse of the US dollar and its replacement as global trade’s “unit of account.” That essentially means that it is widely used in global finance and trade.

Day to day, most Americans are likely unaware of the economic and political power that goes with being the world’s unit of account. Currently, more than half of world trade – from oil and gold to cars and smartphones – is in US dollars, with the euro accounting for around 30% and all other currencies making up the balance.

As a result of this dominance, the US is the only country on the planet that can pay its foreign debt in its own currency. This gives both the US government and American companies tremendous leeway in international trade and finance.

No matter how much debt the US government owes foreign investors, it can simply print the money needed to pay them back – although for economic reasons, it may not be wise to do so.

Other countries must buy either the dollar or the euro to pay their foreign debt. And the only way for them to do so is either to export more than they import or borrow more dollars or euros on the international market.

The US is free from such constraints and can run up large trade deficits – that is, import more than it exports – for decades without the same consequences.

For American companies, the dominance of the dollar means they’re not as subject to the exchange rate risk as are their foreign competitors. Exchange rate risk refers to how changes in the relative value of currencies may affect a company’s profitability.

Since international trade is generally denominated in dollars, US businesses can buy and sell in their own currency, something their foreign competitors cannot do as easily. As simple as this sounds, it gives American companies a tremendous competitive advantage.

If Republicans push the US into default, the dollar would likely lose its position as the international unit of account, forcing the government and companies to pay their international bills in another currency.

Kevin McCarthy., left, Chuck Schumer, right, and President Joe Biden meet at the White House on May 9, 2023. Photo: AP via The Conversation / Evan Vucci

The dollar’s dominance means trade must go through an American bank at some point. This is one important way it gives the US tremendous political power, especially to punish economic rivals and unfriendly governments.

For example, when former President Donald Trump imposed economic sanctions on Iran, he denied the country access to American banks and to the dollar. He also imposed secondary sanctions, which means that non-American companies trading with Iran were also sanctioned.

Given a choice of access to the dollar or trading with Iran, most of the world economies chose access to the dollar and complied with the sanctions. As a result, Iran entered a deep recession, and its currency plummeted about 30%.

US President Joe Biden did something similar against Russia in response to its invasion of Ukraine. Limiting Russia’s access to the dollar has helped push the country into a recession that’s bordering on a depression.

No other country today could unilaterally impose this level of economic pain on another country. And all an American president currently needs is a pen.

Rivals rewarded

Another consequence of the dollar’s collapse would be enhancing the position of the US’s top rival for global influence: China.

While the euro would likely replace the dollar as the world’s primary unit of account, the Chinese yuan would move into second place.

If the yuan were to become a significant international unit of account, this would enhance China’s international position both economically and politically.

As it is, China has been working with the other BRIC countries – Brazil, Russia and India – to accept the yuan as a unit of account. With the other three already resentful of US economic and political dominance, a US default would support that effort.

They may not be alone: Recently, Saudi Arabia suggested it was open to trading some of its oil in currencies other than the dollar – something that would change long-standing policy.

China’s yuan would gain for any collapse in the US dollar. Photo: Facebook

Beyond the impact on the dollar and the economic and political clout of the US, a default would be profoundly felt in many other ways and by countless people.

In the US, tens of millions of Americans and thousands of companies that depend on government support could suffer, and the economy would most likely sink into recession – or worse, given the US is already expected to soon suffer a downturn. In addition, retirees could see the worth of their pensions dwindle.

The truth is, we really don’t know what will happen or how bad it will get. The scale of the damage caused by a US default is hard to calculate in advance because it has never happened before.

But there’s one thing we can be certain of. If Republicans take their threat of default too far, the US and Americans will suffer tremendously.

Michael Humphries is Deputy Chair of Business Administration, Touro University

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

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Elections won’t rescue middle income-trapped Thailand

Clearly, self-awareness isn’t Prayut Chan-ocha’s forte as the Thai prime minister warns of a “black hole of conflict” in what was once one of Southeast Asia’s most promising economies.

The conflict about which Prayut warns is assured if voters support opposition groups in Sunday’s general election, or so he claims. Yet many economists agree that Prayut’s nine years in power have been their own black hole of dysfunction and complacency.

In May 2014, the general-turned-politician led the latest military junta to grab power in Bangkok. Since the 1930s, Thailand has experienced at least 28 coups. And just like most junta leaders who came before him, Prayut had no real plan to improve the efficiency of government or raise living standards.

In fact, the last nine years of political gridlock were preceded, too, by eight years of complacency. An earlier coup, in 2006, showed then-prime minister Thaksin Shinawatra the door. After that, a revolving door of governments came and went with few, if any, upgrades to raise Thailand’s economic game.

This lost period is coming back to haunt the kingdom, regardless of who wins on May 14 — be it Prayut’s United Thai Nation Party or one of the opposition parties. These last 17 years of political turbulence have greatly increased the odds that Thailand is falling into the dreaded “middle-income trap.”

“Thailand is a middle-income economy that risks having its lunch eaten by lower-income rivals competing in similar manufacturing segments —especially Vietnam,” warns economist Vincent Tsui at Gavekal Research.

As generals plotted and politicians dithered, Tsui says, “Thailand has suffered a steady deindustrialization, with both the export and investment share of GDP having fallen, while that for tourism-related services has risen — although badly hit in the pandemic.”

The real black hole to worry about here is how China, India, Indonesia, Vietnam and other competitors got their innovative acts together. The pace at which Indonesia alone is minting tech “unicorn” startups should panic officials in Bangkok.

So should the ways in which Vietnam is arguably the biggest winner from the US-China trade war. Vietnam is winning a disproportionate amount of the factories, jobs and longer-term investment fleeing the mainland.

To understand why Thailand is stuck in place, says economist Peerasit Kamnuansilpa at Khon Kaen University, one has to recognize it’s dominated by central economic development agencies, which provide economic incentives for large businesses, investors and wealthy entrepreneurs in the forms of income and capital gains tax breaks coupled with other indirect benefits such as business protection or market monopolies.

Prime Minister Prayut Chan-ocha is flanked by CP Group chairman Dhanin Chearavanont (2nd R) and ThaiBev founder billionaire Charoen Sirivadhanabhakdi (L) at Government House in a file photo. Photo: AFP Forum / Chanat Katanyu

This latest experiment with “trickle-down economics,” though, isn’t working. “Perhaps the most important obstacle to long-term economic prosperity is its institutional weaknesses,” Peerasit notes. “All economic development policies have been formulated and strategic choices have been made by heavy-handed central government agencies.”

Thailand, in other words, is heavy on economic hardware but lacking in the software needed to compete in the 2020s. To address the problem, says economist Upalat Korwatanasakul at Waseda University, the government should “consider policies that can deal with the issues of insufficient knowledge and technology transfer and a lack of local firms’ capacities as they are the primary causes of the limited upgrading.”

The trouble, of course, is that the last several Thai governments have been so busy struggling to keep their jobs that they failed to do their jobs.

Gavekal’s Tsui adds that “Thailand had been an important exporter of electronics products but its global share has shrunk to about 1.7% from 2.2% a decade ago. In the same period, Vietnam has registered fivefold gains to account for 5% of this market.”

Automobiles are a bright spot for Thailand, which remains Southeast Asia’s largest vehicle exporter and the world’s 10th largest with a 2.1% global export share over the last five years. Here, though, there are two big problems.

One, as Tsui explains, the real challenge is that this position is built around the internal combustion engine, and as for many car-producing nations the risk is that China, in particular, steals a march as it comes to dominate production of electric vehicles.

The other: neighbors like the Philippines are lobbying automakers to migrate to the greater Manila area. Indonesia, too, is positioning itself for EV manufacturing in a big way.

True, Thailand has managed to secure investments from Chinese automakers like BYD, Great Wall Motor and SAIC Motor, which are looking to build some offshore production capacity.

“Still,” Tsui says, “Chinese automakers have well-developed onshore supply chains and are less likely to outsource material amounts of production as Thailand does not offer much of a cost advantage. In reality, Thailand’s auto sector is in a defensive crouch and is at risk of losing its existing share and seeing a further wave of deindustrialization.”

An employee works at an assembly line at the new Ford Thailand manufacturing plant located in Rayong province, East of Bangkok May 3, 2012. Ford Motor Corp is eyeing Indonesia as a production centre to help meet strong demand for cars in Southeast Asia but supply problems mean Thailand will remain its regional hub for the foreseeable future, company executives said. REUTERS/Chaiwat Subprasom (THAILAND - Tags: TRANSPORT BUSINESS) - RTR31JKS
A worker at Ford Thailand’s plant in Rayong province, East of Bangkok. Photo: Facebook

Thailand’s waning competitiveness has voters wondering what Prayut was thinking when he commandeered power in 2014. On his watch, critics argue, inequality rose while many freedoms disappeared. The fruits of Thailand’s gross domestic product (GDP) are being shared by an increasingly narrow elite.

As young Thais fret about their future, past empires are trying to stage comebacks. Exhibit A: the Shinawatra family.

Since his coup ouster in 2006 and later criminal convictions, Thaksin Shinawatra has lived in self-exile. So does his sister, Yingluck, also a former prime minister, who was removed in 2014 by the nation’s Constitutional Court.

Now, Thaksin’s daughter, Paetongtarn Shinawatra, has her own date with destiny. On May 14, she hopes to carry her father’s opposition Peua Thai party to power. And with her, repair the tarnished legacy of her billionaire father who played an outsized role in Thailand’s current chaos.

Thaksin first came to power making a claim Donald Trump would later make to win the US presidency: as a wildly successful CEO, I know how to fix the nation’s problems.

This was back in 2001, as the shadow of the 1997-98 Asian financial crisis hung over Thai politics. Amid great upheaval and economic pain, uber-wealthy Thaksin embraced first nationalistic then populist rhetoric to gain an unlikely, pro-poor folk-hero status.

After five years, voters realized they had elected Thailand’s Silvio Berlusconi. Like the Italian billionaire-turned-prime-minister, Thaksin also weakened government institutions in the service of his telecom empire. He, Berlusconi-style, channeled massive amounts of stimulus money to rural areas to counter the skepticism of urban elites.

But the urban-rural divide that Thaksin exacerbated blew up on him in 2006. Since that coup, a revolving door of governments simply papered over the cracks.

Former premier Thaksin Shinawatra initiated the kingdom’s populist death spiral. Image: Agencies

Rather than revive institutions, increase transparency and invest in innovation, government after government juiced up GDP with short-term plans. This sugar high after sugar high did little to prepare Thailand for the digital age now reordering Asia’s economic hierarchy.

When it was Prayut’s turn to give government-ing a try, he forgot what US political guru James Carville said two decades earlier: “It’s the economy, stupid.”

Carville was an advisor to then-US president Bill Clinton, on whose watch the Asian crisis occurred. But nine years on, Prayut is giving coup leaders a bad name for a whole new reason. When generals grab power, they tend to argue the motive is to restore order and get big things done.

Scarcely little reform has taken place since the early 2000s. All the while, troubles are bubbling under the surface that the government is too distracted, or economically inept, to address. Prayut’s Eastern Economic Corridor (EEC) project, which has aimed to lure multinational investment in “4.0” industries has by most assessments been a flop due to a lack of local talent.

Household debt, meanwhile, hit 90% of GDP in 2021, among the highest levels in Asia. All too many past governments promoted household borrowing to consume as a short-term fix to economic headwinds. Now, the hangover.

Economist Bert Burger at Atradius calls the “high level of household debt” a “lingering risk for Thailand’s economy.” He adds that “in the long run,” the “high household debt might affect private consumption and derail the financial sector in the event of rising interest rates or falling income.”

It’s no wonder then that nearly all political parties, Prayut and Paetongtan’s included, are campaigning on populist promises, including de facto cash handouts, they won’t likely be able to implement, legally or fiscally.

Constant electioneering also has been hazardous to Bangkok’s fiscal health, warns Bank of Thailand officials. With inflation near 14-year highs, the government continues to prioritize subsidies to ease the pain of rising living costs over supply-side reforms to increase productivity and economic efficiency.

“We should avoid policies promoting bad incentives,” says economist Somchai Jitsuchon, a member of the BOT’s rate panel.

A mournful Thai holds a Thai baht note. Photo: NurPhoto via AFP Forum/Anusak Laowilas
A mournful Thai holds a Thai baht note. Photo: NurPhoto via AFP Forum / Anusak Laowilas

The bigger-picture problem, though, is that none of the 10 governments that have managed the economy since 2001 tackled the middle-income trap risk that can no longer be ignored. This trap is defined by gains in per capita income stalling out around $10,000. Thailand is now at $8,100, by International Monetary Fund’s numbers.

Another problem: Thailand’s Southeast Asian neighbors are accelerating efforts to increase competitiveness as Thailand walks in place. Raising the temperature further, Indonesia, Malaysia, the Philippines, Vietnam and others are lobbying multinational companies to pivot their way, some of which are major employers in Thailand.

This Thai election should be a moment to plot a new course for the one-time Asian tiger economy. Sadly, it seems the vicious cycle that Bangkok fell into two decades back will continue to dim prospects for the next two.

Shawn W Crispin contributed reporting from Bangkok.

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Commentary: WhatsApp in-chat transactions could shake up Singapore’s e-payment scene – but how safe are they?

Businesses can leverage this feature to serve customers better without the need for a sophisticated, often costly, e-commerce and payment infrastructure. The ease of transaction could lead to increased sales as customers find it more convenient to shop and pay without leaving the app.

Just look at how much time people spend scrolling through TikTok, interacting with brands and making purchases. In 2022, Southeast Asian users spent US$4.4 billion on the platform, twice more than in 2021. 

WhatsApp’s in-chat payments could be a game-changer for some businesses that are still struggling to establish an online presence, enabling them to compete with larger companies on a more level playing field.

The DBS digital banking outages in May and March, which left customers inconvenienced and frustrated, highlight the vulnerabilities of the e-payment ecosystem and the need for more diverse alternatives.

Perhaps WhatsApp’s payment feature could spark healthy competition among Singapore’s e-payment players to enhance service reliability and resilience. This, of course, could benefit end-customers.

COMPETITION AND SECURITY CONCERNS

WhatsApp has stated that it doesn’t collect transaction fees for now. Questions arise: Is this a sustainable business model? Will WhatsApp eventually charge businesses and customers? How soon, and how much?

Will transaction data be used for targeted advertising, as Facebook has done in the past? How will this data be protected?

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TCC calls for cuts to Ft rate as bills bite

Wants to promote solar panels at home

The Thailand Consumers Council (TCC) is urging the government to consider lowering the fuel tariff (Ft) amid mounting complaints about high electricity bills, adding that the Energy Regulatory Commission (ERC) must promote the use of solar panels at home to help address the problem.

Itthaboon: ‘Govt must review contracts’

At a seminar discussing recent increases in power costs, TCC deputy secretary Itthaboon Onwongsa said the way Thailand generates its electricity is partly to blame for the recent spikes observed by households and industries.

He noted that the Electricity Generating Authority of Thailand (Egat), despite its name, only produces about 34-35% of the electricity used in the country.

The rest, he noted, has to be purchased from various private companies, which Egat would then re-sell to the Metropolitan Electricity Authority and Provincial Electricity Authority.

“The government must review its contracts with private companies, and in the meantime, it should call off the construction of new private power plants,” said Mr Itthaboon.

Prasat Meetam, a president of the Sub-Committee for Public Services, Energy and Environment, pointed out that Thailand reviews the Ft rate once every four months, while Malaysia does so every month.

“The power cost for a 500 kilowatt-hour [unit] in Thailand is 2,638 baht while in Malaysia it is only around 1,292 baht,” he said.

The TCC also called on the government to take immediate action to reduce power bills.

It said the Office of the Energy Regulatory Commission should base its Ft rate calculation on actual usage instead of forecast usage.

The Ministry of Energy should also restructure the price of gas used for electricity generation in the country, by including the amount of gas supplied to Gas Separation Plants (GSPs) and the petrochemical industry, according to the TCC, which claimed doing so could bring down the rate to 0.23-0.25 baht per unit, saving around 40-50 billion baht per year.

The TCC also suggested the Energy Ministry order PTT Plc to subsidise Egat’s natural gas supply using revenues from the GSPs.

The ERC should promote solar panels at home and urge users to enable “net metering”, a tool which “stores” the excess energy produced.

Chalie Charoenlarpnopparut, a member of the Sub-Committee for Public Services, Energy and Environment, said electricity overproduction in Thailand stems from the Loss of Load Expectation (LOLE).

The standard LOLE is 24 hours per year, but Thailand’s rate is 16.8 hours per year.

Mr Chalie said the public still has to pay to maintain power plants, even when they are not operational. Between January and April, 6.1 billion baht was paid to maintain two suspended power plants.

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Turkish election is likely to disappoint the West

From a geopolitical perspective, the Turkish presidential election on Sunday may appear to be one of the most crucial nonviolent political events of this year. But appearances can be deceptive in Turkish politics. 

In the surcharged polarization of “West versus Rest” in international politics, Western media are rooting for the defeat of incumbent President Recep Erdogan so that one of the leading proponents of multipolarity and strategic autonomy in the emerging world order who is setting a horrible example for the Global South, walks into the sunset. 

Truly, the importance of Erdogan is that, unlike so many self-styled proponents of the Global South who have mushroomed lately, he practices what he preaches.  

The Western media’s excitement stems from a simplistic notion that Erdogan, a charismatic “strong man” who has been riding the wings of his immense popularity and astuteness to exploit the fragmentation of the Turkish electoral scene, is meeting his nemesis in the unified opposition candidacy of Kemal Kilicdaroglu. 

Although Sunday’s election may seem too close to call, it may well produce a clear-cut victory for Erdogan in the first round itself (with over 50% votes) that would obviate the need for a runoff. The known unknown today is whether Kilicdaroglu’s eclectic brand of party politics, which helped him clinch the presidential nomination and paper over ideological divides that are as much historical as cultural, would be sufficient to persuade enough voters to help him win the race. 

Erdogan is a man of history with a formidable track record in power in consolidating civilian supremacy in a working democracy.

Russian President Vladimir Putin with Turkish President Recep Tayyip Erdogan after a meeting in Soch in 2020. Photo: Asia Times files / AFP / Mustafa Kamachi / Turkish Presidential Press Service

Kilicdaroglu, on the contrary,  has nothing to show and never held an elected post. Yet, if Western capitals are dreaming about a Kilicdaroglu victory, it underscores the high stakes in Sunday’s election.  

However, the paradox is, even if Kilicdaroglu is the winner, western powers shouldn’t expect an outright alignment of Turkish foreign policies with Western demands. Kilicdaroglu himself remarked recently that Turkish foreign and defense policies “are managed by the state” and are “independent of political parties.” 

What does he mean by that strange remark? Make no mistake, Kilicdaroglu is an old-world “Kemalist,” a social democrat passionately devoted to the ideological foundations of the Turkish state that Ataturk created, who believes in the core principles of nationalism, secularism and statism.

The Western hope is that,given the alchemy of the rainbow coalition that may propel Kilicdaroglu to victory, he will be leading a weak government — unlike Erdogan’s assertive, stable government. 

Indeed, the West does have immense experience in manipulating weak allies and partners in directions that suit the requirements of Western hegemony. But, as current happenings in the West Asian region testify, especially in the Gulf, the United States’ erstwhile vassal states are resisting being pushed around, are asserting their strategic autonomy and are systematically plotting the advancement of national interests from a long-term perspective. 

The Saudi-Iranian detente; Saudi-Emirati reconciliation with President Bashar Al-Assad; the nascent peace talks over Yemen and Sudan — these show that regional states are perfectly capable of navigating their national interests, and that the exclusion of Western hegemony can actually have productive outcomes rather than perpetual conflict and strife.  

Turkish foreign policies are rooted in its history, geography, national interests and the ethos of a classic “civilizational state.” Ankara largely followed a non-aligned independent foreign policy with the accent on preserving its strategic autonomy in the highly volatile external environment that surrounds it. 

Typically, half a century ago, Prime Minister Bulent Ecevit risked US sanctions and ordered military intervention in Northern Cyprus to safeguard the security and welfare of the ethnic Turkish community. No successor government rolled back that decision and the Turks learned to live with Cyprus and Greece’s veto on their EU membership. 

Kilicdaroglu will adhere to the Cyprus policy (and strategy). Considering that President Biden is fully in the orbit of the influential Greek lobby in US politics (which lavishly funded his political career through decades), Kilicdaroglu will have no illusions while upholding claims of maritime boundaries, special economic zones or exploration of gas reserves in East Mediterranean.

Kemal Kilicdaroglu. Photo: Wikiimedia Commons

The single biggest impediment in Turkish-American relations is the trust deficit and that is largely attributable to Washington’s intentions toward Turkey being a national security state. This is not only about the failure of the CIA-backed coup attempt in 2016 to overthrow Erdogan, but specifically, about Washington’s alliance with separatist Kurdish groups in Syria and Iraq (who also have long-standing ties to Israeli intelligence) that destabilize Turkiye (and Iran). 

Ironically, Kilicdaroglu himself is an ardent proponent of normalization of relations with the Assad government. He would favor resuscitation of the Adana Agreement (1998), which envisaged bilateral cooperation between Ankara and Damascus in counter-terrorist activities, something that would horrify Washington, Paris and Berlin. 

The bottom line is, of course, the close, friendly, mutually beneficial relationship that Erdogan forged with Russia. Now, this has an old history. The new kids on the block do not know that Ataturk himself was on friendly terms with the Bolsheviks. In the Cold War era, too, Ankara, its NATO membership notwithstanding, maintained a certain non-alignment. Succinctly put, Erdogan has not only reverted to that past but has done it openly, and built on it rapidly, being in a hurry to position Turkey optimally in the emerging multipolar world order. 

The Turkish neutrality in the Ukraine conflict cannot be understood as a “stand-alone” issue. In reality, geoeconomics has been a driving force in Turkish-Russian relationship. Whether Kilicdaroglu may or may not have uses for the Russian S-400 anti-missile system is a moot point, but he certainly cannot do without the $20 billion Akkuyu Nuclear Power Plant, which Russia’s Rosatom is not only constructing but will also be operating in future. 

The Turkish economy is partly built on the “German model” — Turkish companies use cheap energy from Russia to produce industrial products at competitive prices for the European market. Why would Kilicdaroglu emulate the folly of the present “trans-Atlanticist” leaders in Berlin to terminate cheap long-term energy supplies from Russia at the cost of deindustrialization?

Scholz has deep pockets and can probably afford to replace Russian piped gas under long-term contracts with LNG supplies from America at phenomenally marked-up prices, but Russia has proven to be a highly reliable source of abundant energy through pipelines that run just across the Black Sea to Turkiye. 

The raison d’être of Turkey’s dual orientation – eastward and westward – corresponds to an old tradition in Turkish foreign policy. The country has its own understanding of Russia, borne out of a long, difficult common history. Therefore one can’t view as aberrational the great deliberateness and congruent interests involved when Erdogan and Vladimir Putin, each a complex personality in his own way, take such pains to understand each other and work together. 

The Western powers are fantasizing that by manipulating the right-wing, pro-western parties aligned with Kilicdaroglu in the Faustian deal to keep Erdogan out of power, they can bring the dour Kemalist to his knees. In reality, though, Erdogan, too, has largely followed a foreign policy rooted in the ideology of the Turkish state that Ataturk founded, including the fetishism over secularism that’s typical of an archetypal Kemalist like Kilicdaroglu. 

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Prigozhin’s attacks on Kremlin dig ever deeper hole

Yesterday my Bakhmut update noted that it appeared the Ukrainians had launched a major offensive on the southern flank of Bakhmut. The evidence for this was news reports, Ukrainian claims of a big victory, and the claim by the head of private military contractor Wagner, Yevgeny Prigozhin, that Russian soldiers had not fought but run away, and that maybe 500 of them had been killed. He went on to claim he would fix the problem, although it was not his area of responsibility.

But was this what actually happened? Even the Institute for the Study of War, which tends to be strongly pro-Ukrainian (although it tries to keep some objectivity), isn’t so sure because it was unable to confirm the Ukrainian success “visually.”

At least one excellent video analyst on You Tube describes the action by Ukraine as a sort of reconnaissance in force, but one that only chased away a small group of Russian soldiers. The channel goes on to say that the chance for any Ukrainian followup is very small, because Russia’s flank defenses beyond the trip line are very strong.

But the real issue is Prigozhin who, in the last few days, savagely attacked the Russian army leadership and called Putin, who in Russia is known as Grandfather, an “a**hole.”

Prigozhin lives off of Putin’s support and Putin is regarded as his “best friend.” So what is going on?

Prigozhin has had his aides put out that he wasn’t taking about Putin but about Colonel General Valery Gerasimov, Chief of the General Staff of Russia’s armed forces. There is little likelihood the nomenklatura in Moscow will believe this excuse.

To begin with, Prigozhin was not at the front and his line of information seems to be coming from Ukrainian statements. When he heard about Russian army people running away – as Ukraine claimed, providing a video of a half dozen soldiers running – he exaggerated it even beyond Ukraine’s own declarations, saying that 500 Russian soldiers were killed.

Since there were, at most, only a couple of Russian army companies along the contact line for the alleged battle, this is statistically impossible.

This blast at Putin, along with Prigozhin’s claims about ammunition and his attacks on the Army’s leadership, add up to evidence indicating that while Wagner is being used for Bakhmut urban fighting, Prigozhin is not receiving intelligence briefs outside of his immediate mandate.

That would mean, among other things, that he is not trusted and not regarded as a “real” military commander. And, in truth, Prigozhin has no military training or background. He relies on field commanders, lately some drawn from the top ranks of the Russian military, to run Wagner operations.

All this said, some think that this time Prigozhin may have crossed a red line with Putin. In simplest terms, Prigozhin is demanding recognition and prestige, and he is getting neither.

His credibility is now at an all-time low.

Furthermore, he may have dug a deep enough hole to suggest his days as head of Wagner are numbered.

Stephen Bryen is a senior fellow at the Center for Security Policy and the Yorktown Institute. This article was originally published on his Substack, Weapons and Strategy. Asia Times is republishing it with permission.

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Kishida’s South Korea visit a geopolitical triumph

Japanese Prime Minister Fumio Kishida’s visit to Seoul on May 7-8, 2023, represents a triumph of geopolitics over the search for historical justice. Both South Korean President Yoon Suk Yeol and Kishida are now driven by the ominous international environment, led by threats to the international order from Russia’s invasion of Ukraine and China.

Kishida remained cautious when responding to South Korean calls for an apology and compensation for the victims of Japan’s colonial and wartime forced labour system. These issues were compounded by later trade and security tensions.

But he acted with urgency in restoring normalcy to South Korea-Japan relations and tightening cooperation on a wide range of shared concerns. These concerns spanned from regional security in the face of North Korean missile and nuclear advances to supply chain resiliency and controlling the flow of advanced electronic technology to China.

Both Japan and South Korea are embracing the strategic direction coming from Washington. They understand that their survival, both nationally and politically, depends on subordinating themselves to the US President Joe Biden administration’s global and regional priorities.

“Korea cannot strengthen its alliance with the United States unless Korea maintains a good working relationship with Japan, and Yoon knows it very well”, former foreign minister Yu Myung-hwan, advisor to Yoon, told me.

He added that “Chinese bullying might also have been a motivation to restore trilateral security cooperation” and that “increasing North Korean nuclear threats are a good excuse for him to strengthen trilateral security cooperation.”

The compressed diplomatic calendar of early 2023 reflects the determination of both leaders — and their US backers — to accomplish the dramatic shift in relations. The shift in South Korea-Japan relations began in early March 2023 with Yoon’s decision to end deadlocked negotiations on the forced labor issue.

South Korean President Yoon Suk Yeol is making a clear New Cold War choice. Image: CNN / Screengrab

Instead, Yoon used a South Korean fund to unilaterally offer compensation to survivors and their families who have gone to court, removing the demand for an apology and payments from Japanese companies. Within days of his decision, Yoon visited Tokyo and took important steps towards returning to a business-like atmosphere.

The Tokyo trip was necessary for Yoon’s state visit to Washington in April 2023. A diplomatic showcase of the alliance is embodied in a ‘Washington Declaration’ that strengthened extended deterrence in return for South Korea forswearing any nuclear ambitions.

There is some indication that the Biden administration now aims to create a trilateral extended deterrence dialogue. Yoon told reporters that Japan might be added to the Nuclear Consultative Group created under the Washington Declaration but his office weakened that formulation as it would undermine his achievement with South Korea.

Yet a trilateral security dialogue between Japan, South Korea and the United States would convey a formidable response both to North Korea and to China, and even to a potential Chinese-Russian military axis. It would also lead to a June trilateral meeting between defense ministers which would reportedly formalize data sharing on missile defense — a goal set in 2023.

Both Yoon and Kishida made ample reference to geopolitical goals in their one public appearance together at a joint press conference. “We are the key US allies in Northeast Asia,” Kishida said. He also emphasized that Japan and South Korea are seeking to strengthen their deterrence and response capabilities to North Korea through a series of security alliances between Japan, South Korea and the United States.

Still, unresolved issues of historical justice could not just be put aside. Leading up to the visit, progressive and conservative South Korean media expressed expectations that Kishida would go beyond previous statements and make a personal apology — perhaps opening the door to Japanese corporate payments to victims.

Kishida, under pressure from vocal conservatives who oppose any further Japanese apology or admission of responsibility for repression in South Korea, was hesitant to go that far. But he decided to make his personal sympathy for the victims clear — telling reporters that his “heart aches” over their suffering.

He also offered South Korea access to the Fukushima nuclear site to allay concerns over radioactive contamination in waters being released. According to Japanese media, Kishida wanted to offer some concessions to bolster Yoon against criticism within South Korea of his eagerness to give in to Japan without much in return.

The shadow of the 2011 nuclear disaster at Fukushima has long hung over Japan’s nuclear energy sector and relations with Korea. Photo: AFP/TEPCO/JIJI Press

The gestures met a divided response in South Korea — progressive politicians and media were dismissive and while conservative backers of Yoon were appreciative of Kishida’s apparent sincerity, they were not overwhelmed.

Former foreign minister Yu said that “Kishida failed to apologize directly to the Korean people and obviously lacks the political courage to do so,” but that President Yoon “believes that begging the other side to apologize is not politically correct.”

This leaves historical issues still buried like landmines, not far from the surface and ready to be set off. More court hearings on forced labor victims in a separate suit against Mitsubishi Heavy Industries are scheduled to start on May 11, 2023.

For now, the imperatives of geopolitics will sustain the momentum created by early 2023.

Daniel Sneider is Lecturer of International Policy and East Asian Studies at Stanford University and a Non-Resident Distinguished Fellow at the Korea Economic Institute.

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

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