Indonesia plans oil storage facility near Singapore to improve energy self-sufficiency: Minister

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JAKARTA: Indonesia plans to build an oil backup service on an area near Singapore- connecting with President Prabowo’s goals for energy self-sufficiency- amid political uncertainty, according to a government minister. &nbsp,

The new storage facility will be designed to house various types of oil, according to Energy and Mineral Resources Minister Bahlil Lahadalia on Wednesday ( Dec. 11 ), but he did not specify the location and details of its construction. &nbsp,

At a Golkar party event in Jakarta, he was quoted as saying,” The storage facility will be able to store oil for up to 30 to 40 days, and Pertamina will purchase oil ( from the facility ) at global economic prices so that we can achieve energy sovereignty.” &nbsp,

In light of the ongoing conflicts in Gaza and Ukraine, which have hampered global oil and gas supply chains, the new facility will allow the state-owned energy company Pertamina to buy oil in bulk, reducing its dependence on the dangerous world market. &nbsp,

Putra Adhiguna, managing director of the think tank Energy Shift Institute, applauded this action, stating that the new facility might have” strategic buffer ( oil ) reserves” and adding that the reserves Indonesia currently have are for operational use.

” This is an important move, considering Indonesia is a major oil supplier so having proper cushion reserves is essential for security, especially with the government’s plan on power security”, Putra told CNA. &nbsp,

According to an Antara record in April, Pertamina’s primary energy trade sources are Singapore, comprising 56.58 per cent of overall energy imports, followed by Malaysia at 26.75 per cent and India at 6.28 per cent. &nbsp,

However, the United States, the United Arab Emirates and Qatar are the primary solutions of Pertamina’s imported liquefied gas fuel. &nbsp,

The new center therefore also seeks to reduce Indonesia’s heavy emphasis on Singapore, as reported by The Jakarta Globe. &nbsp,

Indonesia imports 60 % of its fuel from Singapore, despite the fact that it does not have any fuel. This is extremely mind-blowing to me”, Bahlil, who is the Golkar party president, said on Oct 11, while quoted by Antara. &nbsp,

The program is also expected to reduce expenses related to third-party store, transport and entity taxes, thus facilitating more cost-efficient fuel purchases. &nbsp,

Despite having none of its own oil and gas resources, Singapore is one of the world’s top three export refining centres, according to the country’s Economic Development Board. &nbsp,

The city-state imports crude oil from countries such as the United Arab Emirates, Qatar, Saudi Arabia and Kuwait.

In addition, Bahlil also highlighted Indonesia’s low oil supplies which he considered a concern, emphasising the importance of increasing storage capacity to enhance energy resilience. &nbsp,

” This is a geopolitical issue. His statement was quoted by the Jakarta Globe as saying,” Our oil reserves and storage can only last for 21 days if our country goes to war.” &nbsp,

With plans to reduce regulations, reactivate idle wells, and increase output, the new Prabowo administration reportedly intends to revive oil and gas production in an effort to reverse a ten-year decline in output. &nbsp,

” We must have energy self-sufficiency and we are capable ( of being ) self-sufficient”, Prabowo said in his inauguration speech on Oct 20, citing geopolitical tension. &nbsp,

He also intended to leverage efforts made by the previous administration, led by former president Joko” Jokowi” Widodo, to boost massive gas discoveries in South Andaman and reduce biofuel use. &nbsp,

In October, Bahlil said that the Indonesian government planned to maximise the use of existing oil fields to reduce crude oil imports, which have reached a value of approximately 500 trillion rupiah ( US$ 31.4 billion ) annually. &nbsp,

The government intends to revive oil fields that have been idle by roking licenses in order to accomplish this goal, he added.

According to him,” I asked why these wells are not being operated, and the answers were unclear. It seems that I will start revocation of business licenses as we are looking at the potential to reorganize wells that are not being worked on by contractors, including state-owned enterprises,” he said on October 9 as quoted by the Jakarta Globe. &nbsp,

Based on data from Bahlil’s Ministry of Energy and Mineral Resources, Indonesia has nearly 45, 000 oil fields, with 16, 600 considered inactive. &nbsp,

Among these idle fields, around 5, 000 are seen to have the potential to be revitalised to boost national oil production. &nbsp,

” For wells that are not being optimised, we will revoke their license and offer them to those capable of increasing our national production, we should not hold on to them, our country needs this”, Bahlil added. &nbsp,

Indonesia’s oil production, which was formerly an Organization of Petroleum Exporting Countries ( OPEC ), decreased to less than 600,000 barrels per day in 2024 from a peak of roughly 1.6 million barrels per day in the 1990s, which is attributed to declining investment and aging blocks. &nbsp,

In addition, the country’s oil consumption has more than doubled to 1.5 million barrels per day, leading to imports of fuel and oil, which have cost the US$ 28 billion annually over the past ten years. &nbsp,

According to the Jakarta Globe, this oil issue has contributed to the rupiah’s fluctuating value.

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Historic US missile hit sends a warning to China from Guam – Asia Times

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As tensions rise over a possible Taiwan war, the US only demonstrated its ability to shoot down nuclear missiles from Guam. This sends a strong message to China.

The US Missile Defense Agency ( MDA ) conducted its first live intercept of a ballistic missile from Guam on Tuesday ( December 10 ), according to The War Zone, marking a significant milestone in the development of the Aegis Guam System.

The War Zone mentions that the test, known as Flight Experiment Mission-02 ( FEM-02 ), successfully saw a Standard Missile-3 Block IIA intercept a mock medium-range ballistic missile over 200 nautical miles northeast of the island. It notes that the test is an important step in ensuring Guam, a geopolitical island in the Indo-Pacific region, receives 360-degree protection.

According to the report, Aegis Guam’s method, which has a leaning Mk 41 Vertical Launch System (VLS), offers more freedom for missile launch points than another Aegis Ashore systems. It makes note of the AN/TPY-6 sensor, which demonstrates the Guam’s incorporated air and missile defence capabilities.

The program is a part of a wider effort to strengthen Guam’s threats against potential risks from China, which has been swiftly expanding its nuclear weapon army. In the event of a discord, it makes note of the MDA’s continuous expansion of the Guam Defense System, which aims to establish a strong, multi-layered defense network involving regional allies and members of the US military.

Aegis Ashore, Terminal High Altitude Area Defense ( THAAD), Typhon, and Patriot systems are integrated into Guam’s wider Enhanced Integrated Air and Missile Defense ( EIAMD) system for 360-degree protection, according to Asia Times.

Guam will also make use of the Integrated Battle Command System ( IBCS) to unite various radar and missile assets into a single network, addressing flaws in US missile defense kill chains.

Yet, significant barriers remain. The complexity of integrating various systems and the limited land area of Guam cause risks of clumsy responses when combined with nuclear, cruise, and hypersonic missiles, while the country’s limited land space and hilly terrain complicate the development of infrastructure.

Additionally, over-reliance on set sensor-to-shooter links does limit adaptability against next-generation risks. China’s possible use of multi-domain attacks—combining cyber, electrical, and dynamic strikes—threatens the dignity of US destroy chains.

Apart from these challenges, a finite number of interceptors per system ( Aegis, THAAD and Patriot ) means that if a large-scale, multi-axis attack occurs, the inventory of available interceptors could be depleted quickly.

In line with that, Megan Eckstein mentions in a February 2024 Defense News content that the US Navy faces significant challenges as a result of supply chain bottlenecks and antiquated manufacturing capabilities.

Eckstein claims that despite dramatically increasing weapons costs, the US Navy struggles with insufficient stockpiles of crucial weapons, including the Long Range Anti-Ship Missile ( LRASM), MK 48 torpedoes and Standard Missile varieties.

She mentions that vital suppliers of elements like jet motors and electronics are unable to meet the growing demand while big defense contractors have expanded their facilities and modified processes. She notes that while the US Navy’s FY24 funds includes US$ 380 million to address these obstacles, business professionals warn that it will take time to discover changes.

Eckstein points out that efforts to increase productivity are further hampered by the US Navy’s reliance on a select few eligible rocket engine manufacturers.

Further, Mackenzie Eaglen mentions in a July 2024 article for The National Interest ( TNI ) that the US Department of Defense’s ( DOD ) decision to terminate SM-3 Block IB production in favor of the newer SM-3 Block IIA has not been matched with adequate increases in the latter’s procurement, leading to a shortfall in interceptor stockpiles.

Eaglen notes the FY 2025 defence budget reduces planned purchasing of SM-3 Block IB from 153 to zero over the next five years, saving US$ 1.9 billion but no reinvesting these benefits into SM-3 Block IIA output, which remains stagnated at 12 weapons annually.

He points out that despite a projected increase in SM-6 purchasing, total missile production is still insufficient to meet the US Navy’s requirements.

Eaglen says that efforts to increase output are further hampered by the persistent preference for smaller purchasing quantities and the reliance on a small number of skilled rocket motor manufacturers.

To address those challenges, the US Navy released an industry Request for Information ( RFI ) in July 2024 to assess the production capabilities for SM-6 rocket motors, specifically the MK72 booster and MK104 dual thrust rocket motor, to enhance fleet defense.

In its July 2024 RFI, the US Navy seeks details on these creation efforts ‘ value and professional preparation, aiming for merger in the FY26-FY27 timeframe or faster.

Additionally, the supplies of missiles, energy and extra parts for interceptors, sensor systems and communications technology is logistically difficult. Guam may experience resupply delays as a result of a protracted conflict due to the disruption of seafaring supply lines.

China has been constantly expanding its appearance in the South Pacific in an effort to do so. Some experts suggest that threatens to minimize entry between Guam, Australia, New Zealand and the US.

In Asia Times, Grant Newsham mentions how China is encroaching on the South Pacific through a comprehensive plan of social, economic, and military invasion.

According to Newsham, China is using political conflict to undermine US presence while the US is focused on reestablishing airfields and dispersing forces under the Agile Combat Employment (ACE ) strategy.

He mentions that China is funding Kiribati aircraft repairs and has built dual-use infrastructure, including games and ships, in US states like the Commonwealth of Northern Mariana Islands.

He says that in the Federated States of Micronesia, China is constructing airports that mirror US work, while China aims to influence Palau’s political authority in its pursuit through purchases.

Newsham points out that Huawei’s buildings and harbor restoration in the Solomon Islands support the latter’s China-friendly program. He claims that an East Timor airport constructed with US cash might ultimately be a “gift” for China.

Newsham says China’s approach to these South Pacific says includes corruption, political offers and misinformation, usually outmatching US attempts.

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Trump heralds the end of dollar dominance – Asia Times

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Donald Trump’s win in November’s US presidential poll saw the US dollars improve. In less than two weeks, it reached a one-year large and has since maintained its power in comparison to its main competitors. His vote has also raised the possibility of US tariffs on goods, and notice has also been drawn to the potential disruption to international trade.

As part of this, Trump made a not-so-veiled threat of rough taxes on the&nbsp, BRICS&nbsp, team of leading emerging industry really they&nbsp, create a rival&nbsp, to the US dollar, which has been the country’s “dominant money” since the Second World War.

Dollarization refers to the use and positioning of the US dollar by different nations. It has various degrees of meaning, from places like Panama using the US dollar as their reserve and as their car money. This latter position enhances international trade.

Get Chile and Malaysia as an example. There will be a big and active marketplace for the exchange of Chilean pesos for the Indonesian rupiah, for which any industry between these two nations will be required. Pesos are rather exchanged for US money and US dollars for dinars, making business easier and less expensive.

However, the US dollar is used in more than 50 % of international business invoices, and over 80 % of all international trade deals worldwide. But, it is possible that Trump’s” America First” foreign policy may provide to hasten the end of the US currency’s dominance.

Pros and cons

Dollarization is advantageous for international business. However, it has distinct advantages for the US, as other nations require US currency to help trade and pay for a lot of commodities. This implies that the US dollar’s demand is still high, and that it does not experience depreciation force.

Perhaps the most crucial aspect is that nations don’t hang US dollars in cash when they do so. Instead, they buy US Treasury bills and thus, in effect, lend money to the US authorities. Due to the US government’s great need for US Treasury, borrowing at a lower interest rate than would otherwise be feasible.

But, there are also disadvantages. A robust US buck increases the price of dollar-denominated goods and, therefore, the cost of international trade. And for the US itself, a robust US dollars may damage its local trade organization.

These shortcomings have frequently prompted the idea of a multi-currency worldwide program, but this has never gained any traction or been a significant factor. But that could change with a following Trump administration.

When Trump takes office in January, he has threatened to impose large trade sanctions. Photo: Phil Mistry / Shutterstock via The Talk

During his first name, for enquiries grew louder. Additionally, there have been some changes to US dollars holdings since that point, causing a decline in global US dollars reserves.

Therefore, which Trump plans may hasten the end of US dollars dominance? The incoming president is viewed as pro-business, which will likely translate into laws designed to lower taxes and regulations. At a time when worldwide productivity is less than respectable, engaging private growth will result in an even stronger US dollar.

A stronger US dollars, as mentioned above, even increases the price of petrol and related supplies. Countries will certainly be asking themselves why, as crude from Saudi Arabia, for instance, may be purchased in US bucks as those dollars increase in value.

Trump’s financial plans are likely to raise US bill, which could lower the value of the significant US dollar deposits held around the world. According to one research, Trump’s plans may include as much as US$ 15 trillion to the world’s loan over a decade. Some nations may be less willing to hold US bill as a result of a decline in the value of US dollars resources.

The result of these policies may be considered unexpected. But other procedures, like as Trump’s program for higher taxes, are more consciously designed.

A robust US dollar hurts US exports because they become more expensive locally and import prices are less expensive. Taxes are a way to shield domestic producers from this global rivals.

However, raising tariffs will only serve to strengthen the US dollars if no other nation reacts, as fewer exports will result in fewer US dollars being sold on the global trade market. This does, at least in part, erase the impact of the price policy while imposing trade costs worldwide.

Countries may agree to use choices as a reserve money and a payment method for global commodities in order to prevent this. A distinct money, such as the Euro or Yuan, has been suggested by the Brics countries. Trump’s challenges may merely speed up this hunt for an option.

What would this imply for the United States?

Countries would then need to carry less US money, but may sell off their US Treasuries. The outcome will be a surge in the US’s loan and a decline in the value of the US dollar. Unfortunately, this would increase the price of goods ( the goal of Trump’s tax policy ), but it could also lead to inflation.

A work on the US dollar did have significant effects on the US and the world in the worst-case situation, if nations coordinated their offering of US dollars and Bonds. This may require the US to reduce its trade deficit and raise its loan costs.

Globally, it may disrupt industry, increase purchase costs and there would be a loss of benefit for any dollar-denominated property and resources. A major world recession would probably follow from this.

For the immediate future, the US dollar will be a world money. But Trump’s” America First” plan, as well as the greater weaponisation of the US dollars, could lead to its fall from being the only world currency.

David McMillan is doctor in finance, University of Stirling

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

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Power semiconductors show the way to secure supply chains – Asia Times

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Despite a declining demand for electric vehicles and industrial machinery, the manufacturing capacity for silicon carbide power semiconductors is still growing worldwide.

Silicon carbide wafer and discrete semiconductor manufacturers in the US, Japan, Europe, South Korea, and China are switching from 6-inch ( 150mm ) to 8-inch ( 200mm ) diameter wafers to increase productivity and protect their businesses from politically motivated supply chain disruption.

Silicon carbide ( SiC ) is rapidly replacing ordinary silicon ( Si) as the preferred substrate for power semiconductors. Its benefits include:

  • opposition to higher volts,
  • sensitivity for a wider variety of noise and temperatures, and
  • greater system lifetimes.

By switching from AC to DC electric power and setting the correct voltages, strength semiconductors transform the electricity produced by motors, energy systems, lighting, and other appliances.

Compared with golden, SiC-based products are more energy efficient and reliable. They are essential for the performance of both battery- and battery-charged professional technology, solar and wind power, and data centers.

The US organization Wolfspeed, the first to apply SiC and is still the largest maker of SiC wafers in the world, just received$ 2.5 billion in funding to improve and increase its 8-inch chip manufacturing capabilities in North Carolina and New York.

The money includes

  • a$ 750 million award under the CHIPS Act,
  • $ 750 million in loans from institutional investors Apollo, the Baupost Group, Fidelity Management &amp, Research Company and the Capital Group, and
  • US Internal Revenue Service is anticipated to provide Section 48D advanced manufacturing tax credits of$ 1.0 billion.

The US Department of Energy identified silicon carbide as one of “one of 17 important materials” with a higher chance of supply disruption, which are essential to clean energy technologies, Wolfspeed noted in announcing the financing. The information is critical to national security, according to the US Commerce Department.

The funding will allow Wolfspeed to construct the world’s first and largest 8-inch Si factory in Mohawk Valley, New York. This should improve the company’s revenue structure and support its business communicate, which, in the estimation of European market research and consulting firm Yole, dropped from close to 50 % in 2021 to about 35 % in 2023 due to the rise of Chinese SiC chip companies.

The cheap switch from 6-inch to 8-inch chips, which has caused Wolfspeed to become a red-light, is also required by the new funding.

Wolfspeed is also in direct competition with Chinese manufacturers, who are also switching to 8-inch wafers and losing money. For the first time in a few years, Rohm, the largest Asian producer of SiC chips and devices, experienced a decline in the three weeks to September.

Selling to Taiwanese electric vehicle manufacturers, including those who sold SiC power devices, were among the reasons for this. Other factors included declining factory automation and energy demand, rising labor and materials costs, rising R&amp, D expenses, and amortization as a result of the company’s violent expansion of its power semiconductor business.

With higher yields and the switch from 6-inch to 8-inch ( 200mm ) wafers, which will increase the number of chips per wafer by about 1.8x, Rohm anticipates higher margins. The firm anticipates that demand from electric vehicle manufacturers and industrial customers will return to the previous decade’s upward pattern.

After purchasing European SiCrystal in 2009, Rohm is then gearing up to produce 8-inch SiC chips in Kyushu’s Miyazaki Prefecture. In Miyazaki, Rohm now produces SiC products, as well as in Kyoto, in two companies in Fukuoka Prefecture, both of which are located in Kyushu. In addition to its family firm, SiCrystal supplies STMicroelectronics (ST Micro ) and other manufacturers of energy electronics.

Rohm claims to have won more than 50 style awards from global automakers, including Geely and Xpeng, both from China. And it owns 20 % of a cooperative venture with China’s Zhenghai Group that is engaged in R&amp, D, style, manufacturing and sales of Such energy components in Shanghai.

In Fukuoka Prefecture’s Green Asia International Strategic Comprehensive Special Zone, Mitsubishi Electric recently made an announcement to invest ten billion dollars ($ 67 million ) to build a new facility where power semiconductor modules can be assembled and tested. It will strengthen and automated production lines that have already been dispersed, increasing both capability and effectiveness.

The new Fukuoka plant’s primary goal is to serve the electric car market in particular. It is scheduled to start operating in 2026. In the nearby Kumamoto Prefecture, Mitsubishi Electric is even building an 8-inch line and upgrading its 6-inch Such power device production lines. Coherent, a US company that manufactures business materials, may supply 8-inch SiC wafers.

Japan’s NGK Insulators and Resonac ( formerly Showa Denko ), have also developed 8-inch SiC wafers and are moving toward commercial production.

And on November 29, Denso and Fuji Electric, two companies that make up the Toyota Group, announced their plans to expand their line of SiC chips, energy semiconductors, and modules. With an investment of more than ¥200 billion ( approximately$ 1.4 billion ), up to a third of it provided by METI, the project “aims to secure supply capacity on par with market-leading European and American companies” ,&nbsp, according to METI Minister&nbsp, Yoji Muto. Manufacturing is moving to 8-inch chips, according to Denso and Fuji Electric.

Starting in 2026, STMicroelectronics will begin manufacturing SiC in Italy, which will include 8-inch wafers, distinct strength semiconductors, and energy components. The 5-billion grow complex is expected to be operational by 2033 with help from the EU Chips Act.

STMicro may also form a partnership with Chinese company Sanan Optoelectronics to create Such power products using its proprietary production process on 8-inch SiC wafers made in a separate facility that Sanan Optoelectronics did build, own, and run. Beginning in the late 2025, STMicroelectronics may start selling the products to customers in China.

According to market research firm TrendForce, STMicro holds the top position for SiC power devices ( not wafers ) on the global market, accounting for about a third of that market.

Bosch, an auto parts manufacturer, intends to begin producing energy supplies on 8-inch SiC chips in 2026, both through an update to its 6-inch service in Germany and through an acquisition of a factory in California.

Nvidia, which began production of Such energy devices at a stock in Kulim, Malaysia, in August, buys wafers from many vendors including Wolfspeed, South Korea’s Stat Siltron and Taiwanese companies TankeBlue and SICC. Infineon plans to develop its Kulim 3 plant into” the world’s largest and most competitive 200-millimeter silicon carbide ( SiC ) power semiconductor fab, “going head -to-head with Wolfspeed.

According to TrendForce, SICC has achieved stable mass production of 8-inch substrates, TankeBlue is ramping up production, and two other Chinese companies, Shanxi Semisic Crystal and Synlight Semiconductor, are also capable of making them.

On top of that, on November 13, SICC announced the world’s first 12-inch ( 300mm ) SiC wafers, perhaps getting ahead of itself, but raising the bar and reminding the world that the Chinese are not just copycats.

Silicon wafers typically produce the majority of their semiconductors using 300mm. The material handling issue has caused SiC wafer sizes to decrease. When using 12-inch wafers, which have equivalent yields, the number of chips per wafer is roughly 2.25x higher than those of 8-inch wafers.

In addition to making or planning to make power devices on 8-inch SiC substrates, at least a dozen other businesses are making or preparing to do so, Yole projects a 24 % compound annual growth in sales of almost$ 10 billion over the next six years, reaching almost$ 10 billion. Through 2026, capital spending is expected to surpass sales. After that, companies and governments will expect to profit from their investments.

The SiC wafer and device market, which have production in “many locations around the world and no government able to impose its will on the market or development of the technology, may serve as a model for future resilient supply chains.

Follow this writer on&nbsp, X: @ScottFo83517667

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Singaporeans invited to share views for Budget 2025

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SINGAPORE: Singaporeans are invited to share their views for Budget 2025 over a six-week period from Monday (Dec 2) until Jan 12. Individuals, organisations and businesses can provide suggestions under four broad themes: Building our Singapore together, developing a more vibrant business ecosystem, providing opportunities for skills upgrading and jobsContinue Reading

Beijing vows retaliation if Biden curbs Chinese chip firms again – Asia Times

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The Chinese government has vowed to “implement necessary measures” after media reports said the United States would add more Chinese semiconductor firms to its Entity List. 

He Yadong, spokesperson of the Chinese Ministry of Commerce, on Thursday threatened to retaliate against Washington after Reuters reported on November 22 that the Biden administration would soon unveil a new round of sanctions to ban shipments of US chips and chip-making equipment to 200 Chinese chip companies.

Media reports said the curbs would be announced before November 28, or Thanksgiving Day, but they have not yet been announced as of this writing. 

Some Chinese commentators said China should further tighten its export rules to prevent US companies from obtaining its metals such as germanium and dysprosium.

“China has dominated the supply of precious metals such as germanium and dysprosium, which are the most important raw materials in the semiconductor industry,” a Jilin-based columnist says in an article. “Our country can completely stop the export of these raw materials, forcing western countries to delay the pace of their technological development.” 

He said this move would provide more time for China to catch up with the US in terms of technological development. 

He said China should consider forming an alliance with Singapore and Japan to jointly stop the US from obtaining key raw materials to make chips.

Meanwhile, some other Chinese commentators are not optimistic that China can unveil any effective countermeasures against the US. 

A Henan-based writer using the pseudonym “Xiaoxi Lishi” published an article with the title “200 Chinese chip firms will be sanctioned. This is game over!”

“The potential sanctioning of 200 Chinese chip companies is undoubtedly a heavy blow to the fast-growing chip industry in China,” the article says. “If chip foundries or packaging firms cannot get their core machine parts, they will have to stop production and suffer from heavy losses.”

The writer says such a disruption will also extend to the upstream and downstream sectors, slowing China’s industry upgrade. He adds that the only thing that China can do is to boost its investment in research and development and form new partnerships with other countries.

200 Chinese firms 

In late July, Reuters reported that the Biden administration planned by the end of August to expand the coverage of its Foreign Direct Product Rule (FDPR), which was first introduced in 1959 to control the trading of US technologies. 

The wire service also said that the US plans to add about 120 Chinese entities, including six chip foundries and their hardware and software suppliers, to its restricted trade list.

But the White House postponed the announcement as American chip and chip-making equipment makers are worried that their revenue in China will be sacrificed. 

Citing an email sent by the US Chamber of Commerce to its members on November 21, Reuters reported that the US Commerce Department planned to publish the new regulation “prior to the Thanksgiving break.” 

The email also said that another set of rules curbing shipments of high-bandwidth memory chips to China was expected to be unveiled in December. 

Analysts said that these would be the Biden administration’s last two rounds of curbs against China’s chip sector before Republican President-elect Donald Trump takes office on January 20, 2025. 

N+3 process

The Reuters report about the potential sanctions against 200 Chinese firms came a few days after Richard Yu, chief executive of Huawei Consumer Business Group, said on November 15 that Huawei would launch its Mate70 flagship smartphone on November 26. 

Chinese media said the premium Mate70 models would use a new 7-nanometer processor known as the Kirin 9100, which is said to be comparable to Qualcomm’s Snapdragon 8 Gen 2 and 8+ Gen 1 for central processing units (CPU) and graphic processing units (GPU), respectively. 

They expected Chinese chipmaker Shanghai Manufacturing International Corp (SMIC) to use its deep ultraviolet (DUV) lithography machines and N+3 process to produce the 9100 processor. 

But on November 26, Huawei’s fans were disappointed by news that the Mate70 Pro would use a chip called Kirin 9020, which is only a fine-tuned version of the existing Kirin 9010 processor made with N+2 process.

The N+3 process can feature 130 million transistors per square millimeter while the N+2 one can only achieve 89 million transistors per square millimeter.

Some Chinese commentators said the failed debut of the 9100 chip showed that Huawei and SMIC were unable to improve their foundry technology without ASML’s extreme-ultraviolet (EUV) lithography machine. 

Read: Huawei’s Mate70 to flex high-end chip self-sufficiency

Read: TSMC’s 7nm chip ban targets China’s AI chipmakers

Read: US to tighten China chip squeeze with old Cold War rule

Read: China: US high-tech investment ban to hurt global supply chain

Read: China boxed out of high-NA lithography race to 1nm chips

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Indian airlines hit by nearly 1,000 hoax bomb threats in 2024

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India’s airlines and airports received 999 hoax bomb threats this year as of 14 November, the country’s deputy civil aviation minister told its parliament.

This was nearly 10 times more than the threats received in 2023, Mr Murlidhar Mohol said.

More than 500 of the year’s threats were received just in the last two weeks of October.

The dramatic surge in hoax threats had wreaked havoc on flight schedules, causing widespread disruption in services.

The recent threats were all hoaxes, Mr Mohol said, with “no actual threat detected at any of the airports/aircraft in India”.

Police have registered 256 complaints and 12 people have been arrested in connection with these threats, the minister said.

But the cases mark an unprecedented spike in such hoaxes.

Between 2014 and 2017, authorities had recorded just 120 bomb hoax alerts at airports, with nearly half directed at Delhi and Mumbai, the country’s largest airports.

The flurry of hoax threats this October had delayed several affected flights while others were diverted.

Hoax threats against flights heading for other countries also lead to international agencies getting involved.

In October, Singapore’s Air Force sent two fighter jets to escort an Air India Express plane following a bomb threat.

The same month, another Air India flight from New Delhi to Chicago was forced to land in a remote airport in Canada.

Passengers on the flight were later airlifted to Chicago on an Air Force plane deployed by Canadian officials.

India’s civil aviation ministry had then said it was making “every possible effort” to safeguard flight operations.

India’s airports have a Bomb Threat Assessment Committee which assesses the gravity of the threat and takes action accordingly. A threat can lead to the involvement of the bomb disposal squad, sniffer dogs, ambulances, police and doctors.

Passengers are off-loaded from the plane along with cabin baggage, check-in baggage and cargo, and they are all screened again. Engineering and security teams also search the plane before it is cleared for flying again.

The resultant delay can cost thousands of dollars in damages to airlines and security agencies.

More than 150 million passengers flew domestically in India last year, according to the civil aviation ministry.

More than 3,000 flights arrive and depart every day in the country from more than 150 operational airports, including 33 international airports.

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Severe flooding continues in South, trains disrupted

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More than 130,000 households affected, with heavy rain forecast for several more days

A man looks at the flooded Road 43 in Nong Chik district of Pattani on Thursday. The road serves as a main link between Songkhla and other southernmost provinces. (Photo: Pattani Public Relations Office's Facebook)
A man looks at the flooded Road 43 in Nong Chik district of Pattani on Thursday. The road serves as a main link between Songkhla and other southernmost provinces. (Photo: Pattani Public Relations Office’s Facebook)

More than 130,000 households in seven southern provinces have been hit by floods following downpours that are forecast to continue in many areas until Dec 3.

Heavy rain continues to pound all southern provinces along the Gulf of Thailand, and many train services have been suspended due to flooded tracks between Pattani and Yala.

The weather office issued another warning on Thursday about downpours until Sunday in eight provinces: Chumphon, Surat Thani, Nakhon Si Thammarat, Phatthalung, Songkhla, Pattani, Yala and Narathiwat. This could further exacerbate flooding.

Water levels in key southern rivers — Pattani, Saiburi, Kolok and Tanyongmas — are forecast to rise significantly in the coming days, overflowing the banks and surging by 1.5 to 2 metres, said Thanaroj Woraratprasert, director of the National Water Administration Center at the Office of the National Water Resources (ONWR).

The accumulated rainfall in vast areas of the South has been substantial, with Narathiwat recording the highest rainfall over the past seven days, totalling 1,100 millimetres.

On Tuesday alone, the province recorded 502mm of rain, followed by Pattani at 492mm and Yala at 405mm. Local officials in Yala said the floods were the worst in three decades.

Rainfall, however, is predicted to ease toward Dec 4. After that, water levels in flooded areas are set to gradually recede.

Flood water that accumulated from Tuesday to Wednesday is now flowing out to sea.

The ONWR has taken various measures to tackle the flood crisis, including preparing equipment for rescue and relief operations, establishing evacuation centres and offering assistance with utilities.

Interior Ministry spokeswoman Traisuree Traisaranakul said the heavy rainfall in the South has caused widespread flooding over a relatively short period of time. Landslide alerts have also been issued in communities close to mountains.

The Department of Disaster Prevention and Mitigation (DDPM) reported ongoing flooding in seven southern provinces, affecting 50 districts, 321 tambons and 1,884 villages in which 136,219 families live.

Tens of thousands more families are struggling to cope with floods in other districts in the region.

Racing against time, the DDPM has collaborated with the National Broadcasting and Telecommunications Commission (NBTC) and mobile network providers to issue flood warnings via mobile SMS to residents in Pattani, Yala and Narathiwat.

Santi Pailoplee, a professor of geology at Chulalongkorn University, said a lot more rainfall has triggered the southern floods than those that damaged Chiang Rai and Chiang Mai recently.

If the same volume had hit the upper North, the floods there would have been 10 times worse, he said.

So far, threats to people’s lives have been limited in the South as few communities live precariously close to waterways or flood-prone locations, the academic added.

Train services disrupted

The State Railway of Thailand (SRT) said on Thursday that all trains to Yala and Sungai Kolok stations are now stopping at Hat Yai in Songkhla, except for local trains 463 and 464, which run between Phatthalung and Sungai Kolok, stopping at Thepa station in Songkhla.

The service disruption was due to flooding on the tracks between Mai Kaen station in Pattani and Raman in Yala.

The SRT advised travellers to keep monitoring the latest developments.

Southern trains to Surat Thani, Nakhon Si Thammarat, Trang and Phatthalung have not been affected by the extreme weather.

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DBS’ chief data and transformation officer on ‘human’ AI in banking | FinanceAsia

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In: Asia, Finance, South-East Asia

Speaking to FinanceAsia at the 2024 Singapore Fintech Festival, Nimish Panchmatia, chief data and transformation officer at DBS, described how artificial intelligence (AI) could evolve beyond optimising individual tasks in banking,

Panchmatia noted: “Today, a lot of people are focusing on what I would call user-centered AI, but if you lift this up to the next level, is human-centred AI.”

This shift, Panchmatia explained, isn’t just about streamlining processes, but about building AI models that actively support customer well-being, financial literacy, and a positive societal impact

Going deeper into this human-centred AI (HCAI), IBM in a recent paper explained, “adhering to the core value that “human + AI” is better than either one individually, novel user experiences can be.  developed that foster human-AI collaboration”.

HCAI is an emerging discipline and Panchmatia believes it is increasingly important for the banking sector. With AI-driven tools like virtual financial advisors and personalised education modules becoming more common, banks can reduce the transactional feel of interactions and establish themselves as partners in their customers’ financial journeys — a shift expected to drive stronger customer retention than models based solely on service speed or product sales.

Panchmatia also discussed adaptive feedback loops, which refine customer insights to continuously improve AI models.

For example, if a customer is given a “nudge” (such as an instalment option for a large purchase) and chooses not to engage, that feedback helps adjust future interactions.

“If you got a nudge and didn’t act, this went back into the model to say, ‘Okay, why didn’t this customer engage?’” he explained. By continuously learning from customer behaviour, banks can anticipate needs more accurately, aligning with the industry-wide shift toward hyper-personalised services.

According to a 2023 report by S&P Global, the potential for the new AI to reshape banking is vast with below being some common AI applications in banking.

 

The McKinsey Global Institute (MGI) estimates that across the global banking sector, generative AI (Gen AI) could add between $200 billion and $340 billion in value annually, or 2.8% to 4.7% of total industry revenues, largely through increased productivity.

In terms of commercial priorities, Panchmatia explained how DBS builds its AI models around customer understanding. The bank uses a variety of methods, including surveys and sophisticated anthropology studies, to gather insights. “We sit down with client groups and observe,” Panchmatia said. By understanding customer needs before making decisions, the bank can ensure that AI-driven offers are relevant and beneficial.

The human angle of transformation

A successful transformation requires looking at all the components—technology, people, and processes—and understanding their collective impact, according to Panchmatia.

“What does this mean for the people in the organisation? What does it mean for the tech stack? What does it mean for the customers, the regulators, and any other stakeholders?” Panchmatia emphasised the importance of stakeholder mapping, assessing both potential successes and failures.

It’s through this holistic approach that banks can find the right balance between technology and people.

He stated, “If you change your branch system… is it a big tech project? Yes. Is it a bigger people project? For sure.”

Data responsibility

With AI becoming a standard feature of banking, the question of data ethics has risen to the forefront. Banks are increasingly tasked with managing not only structured data but also unstructured information.

In the finance industry, unstructured data can be found in various forms such as emails, social media posts, news articles, customer reviews, legal documents, and multimedia files. Unlike structured data, which is neatly organised in tables with a predefined format, unstructured data is not systematically arranged. It often consists of large amounts of text or multimedia content, making it more challenging to analyse and interpret.

With the rise of unstructured data comes an increased risk of misinterpretation, requiring clear guidelines to ensure responsible use.

At DBS, a protocol known as “P.U.R.E” governs this process. This structure reflects a growing industry-wide movement toward transparency, especially as more countries tighten their data regulations.

“Whatever you do must fit all these (P.U.R.E) parameters,” Panchmatia explained, emphasising that “the unsurprising and easy-to-explain part (in P.U.R.E) became a little more dynamic” when working with unstructured data.

Globally, banks are establishing similar frameworks to foster transparency and accountability in AI applications, aligning with regulatory shifts that prioritise customer privacy.

In Singapore, where DBS is headquartered, stringent data privacy laws require financial institutions to be meticulous about data governance. In June 2023, the Monetary Authority of Singapore released a toolkit for the responsible use of AI in the financial system called the Veritas Toolkit version 2.0 that will help financial institutions (FIs) carry out the assessment methodologies for the Fairness, Ethics, Accountability and Transparency (FEAT) principles.

Implementation of data integrity

In terms of data, Panchmatia explained that it is unsurprising for both the users who are handling it and the customers who are receiving it. Customers don’t have to question why they’re receiving certain information. “If you come to me and say, – why did you send me this notification – I need to be able to explain this to you.”

From a technical perspective, having the right tools and infrastructure in place for data is crucial, shared Panchmatia.

“If you’re going to build the model right, you’ve got to register it first.” This ensures accountability and traceability, allowing data management to kick into the workflow efficiently. If the necessary steps aren’t followed, such as completing a proper assessment, data cannot be used effectively for model training or testing.

The importance of oversight cannot be understated, either. “We have a senior committee in the bank that ensures that data initiatives align with the company’s strategic objectives and risk appetite. It’s not just about purchasing the latest tools—it’s about being thoughtful and deliberate in how data is handled across the organisation.”

Pace of change and societal impact

Looking to the future, AI’s rapid pace of development requires banks to build flexibility into their systems.

Panchmatia noted, “What was really novel eight months ago is now old school,” illustrating the speed with which AI advancements are transforming the landscape. This ongoing evolution is prompting banks to make continuous updates to their AI frameworks.

Statista predicts the banking sector’s spending on generative artificial intelligence (AI) to surge to $85 billion by 2030, with a remarkable 55.6% compound annual growth rate.

Elaborating on the scale of AI in DBS, Panchmatia shared some numbers.

For example, DBS has delivered over 370 AI/machine learning use cases spanning customer-facing businesses and support functions, and 1,500 AI/ML models to date (as of November 2024). It has also managed to compress time to value from 12 to 15 months down to two to three months, with the  goal is to bring it down further to two to three weeks over the next few years; the bank said it has delivered a tangible economic impact of over S$370 million ($276.5 million) in 2023, S$700 – 800 million in 2024, and projected S$1 billion in 2025, working on its AI industrialisation approach.

Beyond technical agility, banks are grappling with the societal impacts of AI, particularly in terms of workforce transformation. While automation may streamline certain functions, new roles requiring specialised skills in AI and data analytics are emerging.

“It’s important to consider societal impact,” Panchmatia emphasised, adding that while AI might replace some roles, it will create others requiring upskilling and reskilling.

Beyond AI

Meanwhile, emerging technologies such as quantum computing and blockchain interoperability are also poised to expand the capabilities of banking AI. Quantum computing, with its potential to enhance complex risk assessments and fraud detection, is being tested through proof-of-concept initiatives in leading banks.

“We are doing some POCs with quantum,” Panchmatia explained, though he noted that large-scale banking applications may still be a few years away.

Blockchain’s progress hinges on interoperability; should these issues be resolved, decentralised finance (DeFi) could become a viable option for more banks, according to him.


¬ Haymarket Media Limited. All rights reserved.

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Severe flooding continues in South, train services disrupted

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In: South-East Asia

Trains to Surat Thani, Nakhon Si Thammarat, Trang and Phatthalung remain intact

PUBLISHED: 28 Nov 2024 at 11: 35

A man looks at the flooded Road 43 in Nong Chik district, Pattani, on Thursday. The road serves as a main link between Songkhla and other southernmost provinces. (Photo: Pattani Public Relations Office's Facebook)
A person looks at the flooded Road 43 in Nong Chik city, Pattani, on Thursday. The key link between Songkhla and the other southernmost provinces is the road. ( Photo: Pattani Public Relations Office’s Facebook )

Southern regions along the Gulf of Thailand are still battling heavy rains until Saturday, when several train services are being canceled due to flooded lines between Pattani and Yala.

After being slowed by rains for about a year, the wind company monitoring the situation along the Gulf of Thailand in the southeastern region issued a second notice on Thursday. Its downpours could cause further flooding in eight regions until Sunday.

The counties that are in danger are:

  • Chumphon
  • Surat Thani
  • Nakhon Si Thammarat
  • Phatthalung
  • Songkhla
  • Pattani
  • Yala
  • Narathiwat

Due to strong waves and a stormy water, the weathermen advised small boat owners to keep their vessels offshore. Residents who live close to hills are being advised to be extremely careful about potential discharge.

The eight regions have experienced tremendous rain-induced flooding. Yala is among the regions hit hardest, particularly Muang city, which experienced the heaviest snowfall in the state on Wednesday. Yala’s public relations company reported that this was the province’s worst flood in three years.

Specialists in the Muang district’s Pattani River advised residents on Thursday to relocate their entire items to higher ground. Heavy rain even blanketed all towns in Narathiwat. Due to the high rainfall levels, the Yarang area in Pattani has been designated a disaster area.

The Pattani and Sai Buri river burst, according to the Pattani Public Relations Office, which reported the weather on Thursday.

A powerful northeast rainfall and a low-pressure program, in the opinion of the Meteorological Department, cause the heavy rainfall in the eastern region of the South.

Teach companies disrupted

Except for local trains No. 1, all trains leaving Yala and Sungai Kolok stations will be stopped at Hat Yai in Songkhla on Thursday, according to the State Railway of Thailand ( SRT ). 463 and 464, which runs between Phatthalung and Sungai Kolok, stopping at Thepa place in Songkhla.

The lines between Mai Kaen Station in Pattani and Raman Station in Yala were flooded, causing the company upheaval.

Travelers were advised to keep an eye on the SRT’s support changes.

Southern carriages to Surat Thani, Nakhon Si Thammarat, Trang and Phatthalung are hardly affected by the severe weather.

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