Trump’s JD Vance problem is now China’s, too – Asia Times

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Xi Jinping, the president of China, is upset that his Second Plenum extravaganza is competing for attention with occasions 11 000 kilometers away from Beijing.

In Xi’s protection, it’s tough to compete for articles with an&nbsp, death attempt&nbsp, against former US President Donald Trump half a world apart. That comes just over two months after Trump’s heated argument with a mentally challenged President Joe Biden.

However, Trump’s selection of JD Vance as his working mate could indicate a much bigger upstaging of Xi’s biggest financial plans going forward.

US votes seldom, if ever, move on VP takes. And Vance, a first-term lawmaker from Ohio, is more Trump “mini me” than a working partner who may develop the card’s charm. But Vance is an important communication choose– signaling a doubling down on Trumpism’s worst intuition.

Doubling down on Trumpism’s worst intuition

And it might be negative for Trump’s hopes that he might be more contextual than confrontational in a second term.

Granted, this was always a longer shot. However, Tokyo officials have been having a hard time accepting the possibility of Trump striking a “grand discount” trade agreement with Xi, leaving other important Asian nations looking inward from the outside.

It’s anyone’s think what having China-hawk Vance– who’s all-in on revoking Beijing’s “most-favored state” standing – whispering in the government’s ear does think for a Trump 2.0 presidency. It at least suggests that Trump’s 60 % price is just the start of a larger campaign to rekindle trade wars.

The credit damage could be exceptional. UBS Group AG believes that just this duty had cut China’s annual rise by more than 50 %, slapping 2.5 percentage points off the gross domestic product of Asia’s largest economy. China grew just 4.7 % in the first quarter &nbsp, amid weak retail spending, property investment and new home sales.

That would smash China ‘s&nbsp, trade website, which has been a particularly strong growth driver this year. There is also a chance that other nations will even impose tariffs on imports from China, according to UBS economist Wang Tao, who believes that increasing exports through and production in other economies may help lessen the impact of higher US tariffs over time.

That includes Europe, which has been angling to decrease down China’s energy vehicle&nbsp, business. Biden, to, announced a 100 % tax on China-made Vehicles. Trump, though, has telegraphed 100 % or 200 % tariffs on all imported cars.

Trump’s choice to support Vance over the Republican presidential campaign’s potential for VP almost indicates a desire to bargain. In an interview with Fox News on Tuesday, Vance called Xi’s business the “biggest danger” to America.

Lin Jian, a spokeswoman for the Chinese Foreign Ministry, responded to Vance’s question about Chinese elections by referring to Beijing’s “opposes US votes making an topic of China.”

In April, Vance argued Washington’s rely on Ukraine is a harmful diversion. ” To be powerful enough to push back against the Chinese, we’ve got to focus there, and right now, we’re stretched to thin”, noted Vance, who’s long called for “broad-based taxes” on Chinese products.

Vance also supports returning American production to the country to lessen dependence on Beijing. Of course, Biden does to. However, the Trump-Vance plan will undoubtedly concentrate more on attempting to stifle China’s economy rather than fostering domestic financial muscles or rekindling US innovation.

Wu Xinbo, dean of the Institute of International Studies at Fudan University in Shanghai, tells the South China Morning Post that a Trump-Vance White House would be more involved in the Taiwan issue than Trump’s 2017-2021 management.

” Vanes would strengthen and enhance China’s software restraints and suppression,” Wu claims. He may pay close attention to the Taiwan problem because he thinks it is very significant for the US economy, particularly in terms of cards.

Suddenly, Trump would supposedly call the shots. But the Vance wrinkle might make it even harder for Trump to distance himself from” Project 2025″, the&nbsp, 900-page playbook the Heritage Foundation&nbsp, devised for a second Trump term. Vance has close associations with the blueprint’s artists.

Though the policy’s efforts to heart the state legal company gets the most interest, Project 2025 also advocates for the abolition&nbsp, of the Federal Reserve and reverting back to a gold standard for the US dollar. These concepts are certainly comforting to China’s international trade reserve managers, who are in charge of the US$ 770 billion in US Treasury securities holdings.

The upcoming US election is beginning to have a significant impact on how Xi’s market will fare. In Beijing this year, Xi is convening with major Communist Party officials at the&nbsp, long-awaited Third Plenum. And the world is watching.

” Historically, this function has been important in signaling important legislation shifts and economic changes in China”, notes analyst Alicia Garcia-Herrero at Natixis. Market individuals and China watchers hope the Third Plenum will address a very specific issue: whether enough growth-enhancing steps will be announced to restore the country’s struggling business after years of disappointing performance.

Xi is calling on group leaders to demonstrate “unwavering beliefs and commitment” to his transformation interests championing “high-quality development”. International academics are paying particular attention to  fiscal reforms, particularly those involving taxes and federal spending, and initiatives to lessen the burden on local governments by increasing their income sources.

Yet the work comes at a time when some international&nbsp, expense banks are cutting projections for China’s development. Additionally, China’s international markets are depressed by its lack of extreme stimulus measures.

” This” ,&nbsp, Garcia-Herrero says, “has important consequences for the global economy, namely that China’s demand for foreign products will remain subdued and that Chinese companies will continue to rely on foreign markets to survive. This suggests that trade war are still raging in newspapers and possibly going on beyond.

The signs that Team Xi sends to foreign buyers are all-watched. Given that property policies are one of the main topics of discussion at the meeting, the continuous downturn continues to pose the greatest threat to the market given its considerable wealth effect, according to Kevin Wong, an analyst at currency broker Oanda.

According to Wong, policymakers are “walking on a line” to reduce the risk inherent in the real estate industry as a result of the last ten years ‘ unsuccessful purchase initiatives to fuel economic growth. They are also aware that a further drop in real estate prices may cause inflation to spiral downward.

Wong adds that the US$ 41 billion system, which was announced in May to assist state-owned companies in purchasing empty housing investment from property developers, has so far failed to “bolster mood in the property sector as housing prices continued to decline in June.”

Wong believes that” the next policy-market approach may be taken into consideration during the Third Plenum, given the urgency of reviving the current weak state of local domestic demand, is to implement more prominent fiscal stimulus initiatives that can have a strong impact on consumer spending, such as spending vouchers or further , tax rebates , without launching quantitative easing measures to add more liquidity into the market that can lead to renminbi depreciation and in turn

If such a form of direct fiscal stimulus measures is announced, Wong concludes,” the China and Hong Kong stock markets may get a short-term sentiment boost”.

Yet&nbsp, many&nbsp, argue that expectations are quite low for policy fireworks out of Beijing this week.

This “four-day meeting of the country’s top governing body could n’t come soon enough”, says Harry Murphy Cruise, an economist at Moody’s Analytics. However, it’s unlikely to be a particularly exciting situation given that the demand for reform is high.

The same ca n’t be said of risks emanating from Washington. The political polarization behind the&nbsp, Capitol Hill&nbsp, insurrection&nbsp, on Jan. 6, 2021&nbsp, contributed to&nbsp, Fitch&nbsp, Ratings ‘ August 2023 move to revoke Washington’s AAA status. Even if Trump loses in November, there’s a zero percent chance he would concede graciously.

Moody’s Investors Service, the keeper of Washington’s only remaining AAA, points to these risks, as well as clashes over funding the government and raising the statutory debt ceiling, as threats to the US credit outlook.

Trump also has opinions that will undoubtedly pique the interest of Asian policymakers. As a New York&nbsp, businessman in decades past, Trump was a serial bankruptcy filer. Trump made an illogical flurry of hints about a default on American debt while campaigning in 2016.

” I would borrow, knowing that if the economy crashed, you could make a deal”, Trump told&nbsp, CNBC&nbsp, when asked about his fiscal plans. ” And if the economy was good, it was good. So therefore, you ca n’t lose”.

In 2020, the Washington Post reported that Trump officials, looking to punish China, mulled&nbsp, cancelling debt&nbsp, held by Beijing. It’s not difficult to comprehend how catastrophic a catastrophe that would be as the US debt is rising toward US$ 35 trillion.

Trump’s reelection platform and choice of running mate suggest that global investors are likely to have no idea where Sino-US trade disputes might turn next.

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Bangkok hotel deaths: Victims drank tea laced with cyanide

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According to police, six Asian nationals who died in a posh hotel set in Thailand were most likely to have been poisoned by cyanide-laced tea.

Later on Tuesday, nannies discovered the dead at Bangkok’s Grand Hyatt Erawan resort.

They were thought to have been dead for 24 hours by that time, according to authorities.

Officials are looking into debt as a factor in the enigmatic deaths, claiming that two of the six had loaned “tens of thousands Thai rmb” to another dying for investment objectives.

The grisly identification of the bodies had previously been surrounded by uncertainty and mystery, with initial reports suggesting there had been a firing. Authorities later dismissed these reviews.

Police say the group of six people gathered in a place early on Monday afternoon, giving the impression that more information is now being made about what might have transpired.

The party had checked into the hotel individually and were given five rooms, four on the sixth floor and one on the second, according to Deputy Bangkok police captain Gen Noppassin Poonsawat in a press conference on Wednesday. The second floor room was already accessible to the group.

Two of the patients, Sherine Chong, 56, and Dang Hung Van, 55, had two American citizen.

The other four were Nguyen Thi Phuong, 46, her father Pham Hong Thanh, 49, Nguyen Thi Phuong Lan, 47, and Tran Dinh Phu, 37.

The party made a request for food and drink, which Ms. Chong received and delivered to the area at 14:00 local time.

A servant offered to make tea for the guests, but the assistant police chief disputed this.

The waiter afterwards left the room; it is believed that no one else besides the six outside is thought to possess entered the room. According to the officers, there were no indications of a fight or robbery.

Later, officers discovered traces of poison in each of the six tea cups.

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Murder-suicide suspected in Thai hotel poison deaths

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PUBLISHED: 17 Jul 2024 at 11: 21

Murder-suicide suspected in Thai hotel poison deaths
On Wednesday night at the Lumpini police station in Bangkok, top Bangkok authorities members discuss the Vietnam-death case. ( Photo supplied )

Authorities believe that one of the six Asian victims who were discovered useless at the Grand Hyatt Erawan Hotel in Bangkok on Tuesday night poisoned the others before going on to commit suicide.

At the Lumpini police station on Wednesday night, officers questioned the child of one of the patients and other witnesses, according to Pol Maj Gen Theeradet Thumsuthee, analysis key at the Metropolitan Police Bureau.

Their records were important, he said.

” The situation likely branches from a debt problem. There are no other alternatives. Because they were the only ones who entered the room, the culprit is among the six ( dead ). There were no some”, Pol Maj Gen Theeradet said.

Authorities are still trying to determine the poison being used, he said.

On Tuesday night, six Asian people were discovered dead in a place on the second floors of the Grand Hyatt Erawan Hotel in Bangkok. The other two were Asian citizens, while the other two had American citizenship.

According to a knowledgeable source, criminal officers found a cyanide-like material in used cups in space 502 where the bodies were discovered. It was obviously occuring and more powerful than poison, and extremly destructive, the source said.

The next-door room had been reserved by a sixth Taiwanese resident. She was reportedly a younger girl of one of the six survivors, according to authorities.

The girl had left the country on July 10 and was unlikely to have been involved in the incidents. According to a cause, the killer was thought to have poisoned the five people before taking their personal lifestyle.

Police forensic science officer Trairong Phiewphan reported on Wenesday that a drink that appeared to be black coffee had been found in two bottles in the dying place.

The six Vietnamese are seen carrying their bags in the following safety camera screenshots, who appear to be traveling on Monday evening from the Grand Hyatt Erawan Hotel to place 502 on the second floor of the Pathum Wan area. On Tuesday night, they were discovered useless in their area. ( Photos supplied )

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Kazakhstan seeks ‘great gain,’ not the ‘Great Game’ – Asia Times

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Last week in Astana, I asked Roman Vassilenko, deputy foreign secretary, what Kazakhstan means by its so-called “multi-vector” international policy&nbsp, – a word often bandied about in scientific circles.

Vassilenko said that Kazakhstan has been able to secure and advertise its national passions because&nbsp, the Ministry of Foreign Affairs ‘ diplomatic&nbsp, reach has been&nbsp, intelligent and versatile rather than silly, aggressive, and intellectual. He said this without a sign of arrogance to be found.

Vassilenko put it this way:” Our diplomatic abilities are rooted in the Kazakh people’s traditional world view, which has for thousands of years protected their interests through diplomacy, not through war. Kazakhstan’s President Kassym-Jomart Tokayev carries&nbsp, on&nbsp, in the same history. We are sandwiched between great power and societies, and, for this reason, we have constantly strived to develop constructive, mutually polite, mutually beneficial relationships with neighboring nations”.

What’s more, Kazakhstan does not see itself as&nbsp, a pawn&nbsp, in someone else’s” Great Game”, and rejects any attempt to be treated as such. Rather, Kazakhstan&nbsp, maintains that it&nbsp, has chosen its own path of socio-political development. Like India, &nbsp, Kazakhstan, always alert to outside pressures, &nbsp, has no desire to buy into whatever web any great power may be spinning at any given time. &nbsp, &nbsp, It remains to be seen how well Kazakhstan can withstand great power arm-twisting when it happens.

Vassilenko&nbsp, insists that the proof is in the pudding:” We are a nation at peace with ourselves, at peace with our neighbors, and at peace with the rest of the world”, he said. ” And despite a difficult and tense geopolitical environment, we are able to maintain and develop relations with Russia, &nbsp, China&nbsp, and the West, not to mention the Arab, Turkic and broader Muslim world”.

Vassilenko is saying that the most rational path for Kazakhstan is to engage in commonsense, pragmatic&nbsp, realpolitik&nbsp, that observes international law and pursues humanitarian concerns. For this reason, Kazakhstan’s foreign policy, he says, &nbsp, is neither ideological nor dogmatic but seeks mainly to further the public good.

On a diplomatic roll

During our conversation, Vassilenko left no room for doubt that Kazakhstan, despite living in a world gone mad, has been on a&nbsp, diplomatic roll&nbsp, since the failed&nbsp, coup d’etat&nbsp, against President Tokayev in 2022. &nbsp, Kazakhstan has managed relations with its near neighbors with savvy and skill, and the country is, after all, stable.

Vassilenko said that Kazakhstan ] and “its foreign partners, including the West, must continue to seize the moment, &nbsp, carpe diem, i. e., do things as soon as possible because time is of the essence. We need to advance in three areas without hesitation – transport and logistics, rare earth metals and green energy, including green hydrogen”.

He thinks that” the moment is favorable to entice significant sums of long-term investment in the region.” When asked why the interest in Central Asia has soared, he responded that “governments and investors see that the process of&nbsp, Central Asian cooperation has gained momentum and is here to say. Additionally, Kazakhstan has implemented internal political and economic reforms to address sovereign risks.

Vassilenko refutes accusations that its neighbors are threatening its sovereign independence by engaging with its neighbors in the development sector. As long as the conditions are clear, favorable, and in the people’s interests,” we are not afraid to take investment capital from China, Russia, the US, or Europe.” Stated differently, Kazakhstan’s well-wishers should give it more credit when it engages its neighbors because it knows its neighbors better than anyone&nbsp, else. &nbsp,

Concerning debt traps – an issue often raised by Western media– Vassilenko said: &nbsp,” Yes, the Chinese have made loans to finance projects in Kazakhstan but]these loans ] are at very, very manageable levels. We are aware of the idea of ‘ debt traps’ but we are nowhere near the situation where we should be worried about ]over-indebtedness ] as a threat to our national sovereignty. You can be sure that Kazakhstan will not overload its sovereign balance sheet with debt&nbsp, that is unpayable by&nbsp, future generations”.

Bakhty-Tacheng border crossing

Vassilenko confirmed that Kazakhstan will build a third rail and road&nbsp, border crossing&nbsp, between Kazakhstan and China. In addition to crossings at Khorgos and Dostyk on the China-Kazakhstan border, we will proceed to build the third at Bakhty, in the north-east of Kazakhstan, adjacent to Tacheng, China. It will also be useful for Russia and the northeastern region of Kazakhstan. This is what I mean by’ carpe diem ‘ – Kazakhstan will seize opportunities&nbsp, on its terms&nbsp, when they arise.”

‘ Central Asia plus China ‘ format

” Central Asian countries,” Vassilenko emphasized”, have had very high-level cooperation with Beijing through the’ Central Asia Plus China ‘ format – and these are not simply beautiful words. This multilateral arrangement with China has been more productive and fruitful than many of the twelve other formats ]such as with the United States, the EU, South Korea, Japan, Gulf Cooperation Council, etc. ]. The five regional nations and China have established a permanent” Central Asia Plus China” secretariat, with President Xi Jinping himself serving as the president of Xi’an. We are unanimous in developing fruitful multifaceted cooperation that&nbsp, meets&nbsp, the fundamental interests of all countries and their peoples. This is a concrete expression of multilateralism.”

Kazakhstan has n’t &nbsp, buckled under pressure&nbsp, to take sides in one or another of the great powers’ ideologically motivated projects”. What does it mean to take sides? ” Vassilenko asks, adding :” We&nbsp, believe grand initiatives such as China’s Belt and Road Initiative, EU’s Global Gateway or G7’s Program for Global Infrastructure and Investment ( PGII ) are complementary as far as Kazakhstan is concerned as they help achieve&nbsp, our&nbsp, goal of turning&nbsp, Kazakhstan&nbsp, into a connecting hub in the center&nbsp, of this&nbsp, huge continent.”

He concludes: &nbsp”, We’re not looking to irk anyone but rather further our interests peacefully. And we think there is enough room for everyone to work together in a good way.

The deputy minister finished by&nbsp, quoting Tokayev‘s recent address to foreign diplomatic missions accredited in Astana:” Kazakhstan ‘s]diplomacy ] is very simple and clear – we do not believe in zero-sum games. We wish to replace the’ Great Game ‘ with Great Gain for&nbsp, all in the heart of Eurasia. We are interested in sustaining and growing trust, friendship, and strategic partnership with our neighbors as well as with all nations who are actively interested in expanding Kazakhstan’s cooperation.

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Clifford Capital’s CEO on scaling infrastructure debt financing | FinanceAsia

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Clifford Capital is an equipment credit leasing program focused on creation, distribution, and investment across infrastructure and other genuine assets globally.

The Singaporean government supports the business, which has a plan authority to boost exports and foreign investments, and has pledged to fund projects around the world since it was founded in 2012. &nbsp,

The largest transaction to date for Clifford Capital recently sold for$ 5 million, making it the fifth public infrastructure asset-backed securities ( IABS ) transaction. A subsidiary of Clifford Capital and a wholly owned and newly incorporated distribution vehicle of Bayfront Infrastructure Management ( Bayfront ), which also includes the Asian Infrastructure Investment Bank ( AIIB ) as a shareholder, is Bayfront Infrastructure Capital V ( BIC V ).

BIC V features a collection size of approximately$ 508.3 million multiply across 37 personal money and bonds, 36 tasks, 15 states and 10 market sub-sectors. BIC V has an original aggregate main balance of US$ 218.4 million of ready green and social resources, as defined under Bayfront’s Sustainable Finance Framework, which represent 4 % of the overall principal balance of the profile.

FinanceAsia&nbsp, recently caught up with P. Murlidhar ( Murli ) Maiya, Clifford Capital’s group chief executive officer, to discuss the infrastructure debt financing landscape and its scalability.

FA: Describe your company and the sweeping changes being made to the environment of structured financing options, especially in network purchases, on which Clifford Capital focuses.

Maiya ( pictured&nbsp, above ): &nbsp, Clifford Capital was established 12 years ago, with the support of the Government of Singapore, to address a financing gap in long-tenor credit for infrastructure companies and projects with a nexus to Singapore. We as a group enjoy over$ 5 billion in government guarantees, which give us the ability to raise money at a very competitive price, which in turn allows us to extend credit across long tenors.

Our main areas of focus have always been on the power and coastal infrastructure sectors. However, the concept of system has evolved significantly over time, especially with technological&nbsp, development and the growing emphasis on responsible and socially equal development. As a result, we internally redefined infrastructure to encapsulate all sectors that provide essential services to people and raise the standard of living.

From a credit standpoint, conducting an in-depth analysis of the organization’s or project’s likely cash flows has always been a part of infrastructure financing. One of the keys to our success has been our constant effort to uphold a high standard of analytical rigor throughout the credit process. This analytical rigor is readily applicable to what is now a much wider range of relevant infrastructure sectors, enabling us to provide clients with creative debt financing solutions even for those that were previously viewed as infrastructure.

FA: Could you describe some of the subtleties of these industries and how you see them as the originators of long-term debt financing deals?

Maiya: Beyond renewable energy and digital infrastructure, there is a lot of interest in the data center market, which will grow as demand increases as AI becomes more prevalent. Unlike conventional real estate projects, data centres often enter long-term contracts with hyper-scalers, like major cloud service providers, and these long trem contracted cash flows provide the basis on which non-recourse debt can be structured.

Given the important roles that social infrastructure plays in society and their advantages over traditional long-tenor financing, such as schools, universities, and hospitals.
In industrials and transportation, we see sectors like steel, cement, and aluminum in transition to cleaner and more energy efficient production methods. Financing for intriguing new technologies is also being fueled by a combination of policy support and corporate sustainability goals.

Additionally, the transportation sector is undergoing significant changes, particularly in the electric vehicle space. Parts of the electric vehicle ( EV ) value chain, such as charging infrastructure and batteries lend themselves to infrastructure-like financing solutions. This evolution demonstrates how important verticals, such as transportation and industrials, are both experiencing significant shifts in sustainability.

Lastly, for our natural resources vertical, our focus is on new resources like green hydrogen, green ammonia, and key mineral resources like lithium, nickel, etc. to propel the upcoming sustainable economy.

FA: Given your various strategic priorities, how do you decide which client opportunities to pursue?

Maiya: We primarily assist businesses with debt financing when they want to invest regionally or globally. We do this by supporting those with strong ties to Singapore. We look into any financing issues they might have in commercial markets. Notwithstanding our government support, we operate on a commercial basis, and always ensure rigorous credit assessment and market-based pricing.

Our industry groups all benefit from our credit analysts ‘ expertise. We have been making real progress on this front, and sustainability is another area of focus for us. In 2023, 52 % of new primary loans originated were for infrastructure projects that are green and/or sustainable.

FA: Could you elaborate on how sustainability is affecting the industry you run in?

Maiya: The rise of green and sustainable initiatives has a significant impact on the growth trajectory of infrastructure debt financing. Across client organisations, we’ve observed varying approaches, but they all converge on a common challenge: the immense funding needed for the green transition to achieve net zero emissions. The Asia-Pacific region receives only about 10 % of global funding, despite having a third of the world’s funding needs. This discrepancies offer significant opportunities for businesses like us.

Another powerful tool is blending finance, which can sometimes be a challenge in Asia, to unlock funds for sustainable development. Local governments, multilateral development banks, and other concessional capital sources are making tangible commitments to blended finance.

For instance, the MAS’s Financing Asia’s Transition Partnership ( FAST-P), a blended finance initiative that aims to mobilize up to$ 5 billion to finance transition and marginally bankable green projects in Asia.

Clifford Capital is also responsible for its commercial operations, and it is crucial to demonstrate positive commercial outcomes. By delivering returns to our private sector shareholders, we are also demonstrating our ability to combine public policy objectives with private capital initiatives. This demonstration demonstrates that it is possible to incorporate a public policy goal into a successful business model, allowing it to catalyze other sources of capital over time.

FA: How do you stand out from the competition when it comes to providing debt financing for infrastructure projects?

Maiya: Due to our ability to take on greenfield construction risk and longer tenor financing, we have a unique approach in comparison to most institutional capital providers. Institutional capital frequently struggles with construction risk, preferring to invest in already-active assets that generate cash flow.

Our area of expertise is in managing risks at this stage. We develop a specialized financing plan that addresses the needs of the borrowers while upholding a code of ethics for creditworthiness and market-clearing pricing. Due to the variations in contracts and economic business models, this combination calls for specialized technical skill sets that vary by industry. We have invested a lot of time in developing teams and procedures that make it easier for us to operate in the demanding world of infrastructure credit.

FA: How do you intend to expand your debt-free solutions to make room for the significant funding gap?

Maiya: Clifford Capital has a proven method for distributing infrastructure credit. We established the Infrastructure ABS asset class in Asia and still run a highly profitable securitization business under the name” Bayfront.” We also obtain loans from both primary and secondary loan markets, primarily from the banking industry, in addition to originating our loans from corporate clients. Then, based on their risk appetites, we then divide the loans into securitized portfolios and divide them into various tranches. We keep a sizable portion of these structures ‘ original losses.

Our end-to-end origination and distribution model makes the company’s ability to raise significant capital quickly, allowing us to fund higher credit volumes without having to rely solely on our own, expanding the company’s scalable business model. Through Infrastructure ABS, our efforts to bring institutional debt capital into the infrastructure market bridge the financing gap in the Asia Pacific region for green infrastructure. &nbsp,

¬ Haymarket Media Limited. All rights reserved.

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Italian police free 33 Indian farm labourers from ‘slavery’

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According to police, hundreds of American farm laborers have been freed from slavery in northeastern Italy.

According to police, two other Indian immigrants lured the 33 workers to Italy with the promises of jobs and a better future.

Instead, they allegedly had to work more than 10 hours per day, seven days a week, to make a meager income that was used to pay off the alleged gangmasters ‘ payments.

The two men- who were found with approximately$ 545, 300 ( £420, 000 )- have been arrested.

It is well known that labourers in Italy are being exploited, both by immigrants and natives. Frequently without permission and in extremely hazardous conditions, thousands of people work in domains, vines, and greenhouses scattered throughout the nation.

Just last month, an Indian fruit picker died after his arm was severed in a work accident.

Following the accident, which even left the man’s feet crushed, the man was allegedly left on the side of the road.

His company is currently being investigated for murder and criminal negligence.

The 33 men rescued by police in the Province of Verona had paid €17, 000 ($ 18, 554, £14, 293 ) or 1.5m rupees each in return for seasonal work permits and jobs, according to a police statement sent to the BBC.

To raise the funds, authorities said, some pawned their home assets, while some borrowed the money from their companies.

But they were only paid €4 per minute for their 10 to 12-hour time, with that amount settling any debt owed.

Their documents were also taken out as soon as they arrived in Italy, and they were prohibited from leaving their “dilapidated” rooms.

The police said in a statement that “every day, the staff piled into automobiles covered in canvas where they hid among containers of vegetables until they reached the Verona land for work.”

The employees were “forced to live in vulnerable and humiliating conditions” and “in overall infraction of health and hygiene regulations,” according to the apartment searches that revealed the workers.

The rescued workers have their documents returned, and social service and a movement organization are assisting them in moving to safer enclosure and working conditions.

According to police, the two alleged gangmasters are currently facing felony gang gang charges in connection with abuse and slavery.

Illegal laborers in Italy are frequently subject to the” caporalato,” a gangmaster system that forces middlemen to hire illegal laborers who are then forced to work for very low pay. Also legal guardianship is frequently paid far below the legal compensation by employees.

According to a study from the Italian National Institute of Statistics, nearly a third of the agricultural labor in Italy was employed by this technique in 2018. The training also has an impact on workers in the construction and service businesses.

After a woman from Italy worked 12-hour swings picking and sorting strawberries for which she received €27 per day, she died of a heart attack. In Italy, it was outlawed in 2016 after that same lady worked a 24-hour shift.

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Syed Ahmad Fuqaha believes there’s blue in the red ocean, and, in letting startups fail while it’s cheap

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  • 10th month as&nbsp, businessman with Katsana, an business mobility solutions provider
  • Shutting down a significant item taught difficult lessons about adapting to business challenges.

Syed Ahmad Fuqaha, founder/CEO of Katsana, from row, right, with his team.

” To cultivate fresh companies, you have to let them fail. Let them flunk when they are still on the cheap, soars Syed Ahmad Fuqaha, the founder and CEO of Katsana, who founded it in April 2014. Reflecting on a decade of entrepreneurship, he does n’t mince words about the company ecology:” Currently, there’s almost no street to fail. It’s the epitome of entrepreneurs. Innovation is about failing, failing strong and profitably. If someone wanted to know what the government should be doing, I’d suggest they may provide more chances of failing.

As his business celebrates its 10th anniversary, Fuqaha activists for a dramatic change in how we nurture fresh companies. His message is clear: make more options for startups to neglect quick and inexpensively. It’s a theory that flies in the face of some government initiatives, which Fuqaha, who was a boss with business JomSocial which was sold in 2013 to a Silicon Valley company, &nbsp, sees as extremely safe. In his watch, real innovation thrives on the freedom to take risks, slip, and study from those mistakes. &nbsp,

This counterintuitive approach to developing technology has shaped Fuqaha and Katsana’s voyage from a budding company to a focused business provider offering integrated fleet solutions&nbsp, with&nbsp, over 3, 600 customers, while offering useful lessons for entrepreneurs. Along the way he has raised US$ 1.39 million ( RM6.5 million ) in funding from Axiata’s Digital Innovation Fund ( ADIF ) managed by Intres Capital in 2016&nbsp, and US$ 535, 200 ( RM2.5&nbsp, million ) in&nbsp, venture debt from Malaysian Debt Ventures ( MDV ) in 2022. &nbsp,

Lesson 1: Understand when to cut your loses

Syed Ahmad Fuqaha believes there’s blue in the red ocean, and, in letting startups fail while it’s cheapFuqaha’s words are n’t just rhetoric – they’re born from experience. The rise and fall of DriveMark, one of the bank’s first advances, was perhaps best illustrated by the company’s own trip, which is punctuated by calculated dangers and proper pivots.

A smartphone-based scoring system called DriveMark was created to bridge the gap between driver behavior and insurance premiums. It was intended to promote safer driving. At its peak, it boasted an impressive 80, 000 to 90, 000 users. ” We came up with a solution that is very much scalable, using smartphones”, Fuqaha explains, highlighting the system’s accessibility and initial promise.

However, DriveMark soon encountered challenges unique to the Malaysian market. Malaysian insurance premiums are comparatively low compared to those in the US or the UK, where young or first-time drivers can be exorbitantly expensive. ” In Malaysia, on average, if I’m not mistaken, takaful is around US$ 150 ( RM700 ). For general insurance, the premium is around US$ 192.7 ( RM900 ) on average”.

This pricing structure presented a fundamental challenge to the business model of DriveMark. The majority of users fell into a less exciting category, whereas the top performers with the highest DriveMark scores could receive significant rebates of up to RM160, which were entirely funded by DriveMark. ” For a majority of users, the RM15-RM20 in rebate is just too small to be meaningful”, Fuqaha explains, highlighting the bell curve distribution of benefits.

]RM1 = US$ 0.214]

Ultimately, DriveMark’s business model proved unsustainable. Relying on insurance renewal commissions that averaged only RM70 to RM80 per user, the economics did n’t work out. Two years into the pandemic, Katsana had to make the difficult but necessary decision to stop using DriveMark despite some respectable income. ” We just decided to kill it”, Fuqaha states, acknowledging the need to adapt to market realities

The decision was n’t made hastily. In fact, Katsana spent a year exploring ways to pivot and salvage the technology. After a year of refuting the idea and attempting to convert it to a method for businesses to measure Scope 3 carbon emissions, particularly those involving mobility emissions, we shut DriveMark down in 2022, Fuqaha said. &nbsp,

User privacy and data protection were key components of the process. ” The shut down meant erasure of user data, as we did not want to abuse the consent they gave to DriveMark”, Fuqaha explains. &nbsp,

This decision to shutter DriveMark, while difficult, exemplifies Fuqaha’s philosophy of adapting. As a provider of solutions, Katsana was able to refocus its resources on more promising areas of its business, which ultimately led to a more sustainable enterprise market. &nbsp,

The driveMark experience served as a valuable lesson in Katsana’s decade-long journey, emphasizing the importance of adapting to market conditions and being willing to let go of initiatives that do n’t align with the company’s core strengths or financial viability.

Katsana's latest win was with Universiti Teknikal Malausia Melaka (UTEM) in a partnership with AVIS to equip 10 shuttle buses with a suite of solutions in the KATSANA Fleet Management ecosystem.

Lesson 2: The pandemic pivot: Finding the silver lining

As with businesses worldwide, the Covid-19 pandemic forced Katsana to reevaluate its operations. However, Fuqaha views this disruption as a” silver lining” that allowed the company to sharpen its focus.

Prior to the pandemic, Katsana was active in various telematics-related auto sector. The business also provided fleet management solutions for business clients like bus and taxi drivers, as well as GPS tracking solutions for private vehicles and the RunMark smartphone-based driver scoring system. They were also looking into potential opportunities in the insurance industry, and they were putting their knowledge and technology to use to create usage-based insurance products.

” We had a silver lining from the pandemic,” said the spokesperson. We made the decision to concentrate on the three areas that “made sense for us financially” and to stop providing tracking for private vehicles, Fuqaha said.

While there was money to be made in the private vehicle market, the economics simply did n’t work for Katsana’s high-touch operational model. ” For private vehicles, we have so many competitors out there. Fuqaha explains that there are numerous GPS trackers that can be purchased on Shopee for about RM70.

Katsana would primarily concentrate on its enterprise solutions, particularly fleet management for businesses, as a result of the strategic refocus. This allowed the company to leverage its strengths in developing sophisticated, tailored solutions that go beyond the capabilities of off-the-shelf products.

” What we are doing for enterprises, it makes a lot of sense and it is the best use of our capability”, Fuqaha explains. This change required removing the consumer market and concentrating on larger clients with more complex needs.

By streamlining its offerings, Katsana was able to focus its resources on developing more advanced fleet management solutions, including features for monitoring driver behavior ( building on its DriveMark experience ), vehicle performance, and operational efficiency.

This refocusing made it possible for Katsana to stand out in a noisy market. While many competitors offer white-label solutions from countries like China, Katsana’s intensified focus enabled it to develop unique, high-value offerings for enterprise clients. ” What we do is quite unique”, Fuqaha asserts, highlighting the company’s established expertise in providing sophisticated fleet management tools for larger operations.

Katsana went from being a company spread across multiple market segments to a more focused operation as a result of the pandemic-induced strategic realignment. This change enabled the business to escape the abyss of the pandemic and allowed for more sustainable expansion in the post-pandemic economy.

A Katsana exec installing fleet monitoring equipment on a truck.

Lesson 3: Strategic focus trumps rapid expansion

Fuqaha’s journey has included expanding regional, leading to ongoing projects in Indonesia and Brunei. This expansion predated the pandemic. However, he remains cautious about further expansion. ” It is an interesting proposition, but right now, if you want to have a broader presence over there, it is going to stretch us thin”.

This measured approach to growth demonstrates a maturation that comes from experience. Fuqaha has learned to play to its strengths and keep a laser focus on its core competencies as it continues to serve its existing regional clients as it pursues each opportunity rather than chasing every one.

When the pandemic struck, which presented significant challenges to businesses around the world, this strategic focus proved crucial. Katsana, however, managed to navigate the turbulent times without reducing its workforce, which currently stands at around 45 employees. The company’s resilience stemmed from a combination of its focused strategy and pragmatic decision-making.

” During the pandemic, we made a conscious decision not to hire anymore”, Fuqaha reveals, highlighting the importance of adaptability in times of crisis. He chose a more measured strategy as opposed to fighting against unchecked market forces. He also strategically used government funding, utilizing Malaysian Debt Ventures ‘ Covid Relief Fund for Startup program to boost finances.

Fuqaha was able to weather the storm effectively by maintaining its focus on its core competencies while utilizing government support mechanisms. &nbsp,

Looking to the future: A focused SaaS vision

Katsana enters its second decade with a more in-depth analysis and clearer vision than ever. ” Before the pandemic, we had a lot of things on our plate”, Fuqaha reflects. ” We are now more focused,” she said. No doubt, right before the pandemic, we were on the verge of profitability, even last year we were”.

This transition from a multi-faceted startup to a specialized enterprise solutions provider encapsulates many of the difficulties faced by tech companies in emerging markets. When focus and specialization are what is truly needed, Fuqaha’s story is one of learning to ignore the siren song of diversification.

Looking ahead, Fuqaha has set his sights on transforming Katsana into a Software as a Service ( SaaS ) company. This shift aims to leverage the company’s expertise in fleet management and telematics into a scalable, cloud-based solution. By adopting a SaaS model, Katsana can potentially expand its reach while streamlining its operations and lowering hardware reliance.

Fuqaha says,” We’re developing solutions that are quite unique,” giving a hint as to the sophisticated software features that will make up their SaaS offering’s foundation. This change allows Katsana to compete more effectively both domestically and internationally in line with global trends in enterprise technology.

As Fuqaha approaches his tenth year as a founder, his journey has revealed valuable lessons that could be applied to other startup founders. ” Opt for proven business models,” he advises, noting that red oceans still offer plenty of opportunities for those who understand their market and positioning. Startups are frequently encouraged to chase “blue ocean” opportunities. Red oceans frequently have enough space for multiple providers to coexist, each with their own distinctive offering.

Moreover, Fuqaha emphasizes the importance of nurturing existing customer relationships. The phrase” Existing customers are your best sales channel. Spend time with your current customers to become your supporters rather than just developing new features to make your products more appealing. Meet them at kopitiams, send them greeting cards, set up webinars. These are soft approaches that work”, he advises.

In a sector where many are looking for the next big thing, Katsana has found success by focusing on what it does best: offering top-tier fleet management solutions to businesses that are truly in need while also valuing and developing its existing customer base. After all, with a decade of hard-earned wisdom under its belt, Katsana, in the view of Fuqaha, is well-positioned to navigate the roads ahead, wherever they may lead.

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China convenes third plenum with focus on reforms and advancing modernisation

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WHAT’S THE THIRD PLENUM?

The second chamber has traditionally served as a launchpad for significant economic and social development objectives that define the country’s priorities for the coming years.

The event, which is known as the San Zhong Quan Hui in Mandarin, is one of seven meetings of the CCP’s Central Committee holding during the wealthy body’s five-year name.

The meeting usually occurs between September and November, the year after the National Congress. It was scheduled to take place next month, but it was postponed without cause.

The chamber is closely monitored because such events as the 1978 session, which saw China began its reform and opening up policy, have historically marked significant milestones in its history.

In 2021, Mr Xi first introduced the concept of” Chinese reform” in a statement to indicate the group’s jubilee, calling it” a new model for human society”.

WHAT’S ON THE AGENDA?

For this treatment, watchers are not anticipating extreme policies. Instead, objectives are for a scaling up of existing reform methods.

Analysts think the Chinese management may not want to overthrow the country’s economic woes, including the ongoing estate crisis.

The key words for this program may be uniformity and balance because China is currently facing an uphill struggle to deal with both domestic and international pressure, according to Dr. Liu Baocheng, director of the Center for International Business Ethics at the University of International Business and Economics.

The desired outcome of this meeting would be to keep Xi Jinping’s main leadership and, on top of that, to encourage more of the Communist Party’s leadership at various institutions, he said.

Politicians are putting their trust in the development of novel and cutting-edge solutions to spur economic growth. Authorities said this includes biology, clean power, artificial intelligence and the aviation industry.

This move shifts from its previous growth strategy, which relied on infrastructure and real estate, and raises questions about the level of support China’s property sector will get.

Measures so far have failed to resurrect the crisis-hit industry, with latest house price data also logging a drop.

Anticipation FOR Changes

The country’s second-biggest market is also grappling with a declining people, shrinking labour force, and weakened business trust.

Although China is expected to reach its growth goal of about 5 % this year, economists claim that Chinese policymakers need to start making structural adjustments to concentrate on long-term economic policy.

As regions are saddled with loan, the house crisis has worsened their situation, so they have been pressing the central government to foot the bill.

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