Singapore Airlines to resume flights to 3 Chinese cities from Apr 22 after disruption due to 'regulatory reasons'

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SINGAPORE: Singapore Airlines (SIA) flights to Chongqing, Chengdu and Xiamen will resume from Apr 22, the national carrier said on Monday (Apr 1). 

SIA will start with five times weekly flights from Apr 22 to Apr 28. Thereafter, it will be increased to daily services, the airline said in response to CNA’s queries.

The services will be suspended from Mar 31 to Apr 21 due to “regulatory reasons” an SIA spokesperson said without giving further detail. Before the suspension, SIA operated daily services to Chengdu and Xiamen, and three times weekly services to Chongqing.

Checks of SIA’s website showed that return flights to Chongqing are available from end-April until end-October, while those between Singapore and Chengdu are available from end-Apr to end-May. SIA flights operating between Singapore and Xiamen are also available from end-April to end-May. 

The period of suspension follows a similar situation last year, when SIA flights into five cities, including Chengdu, Chongqing and Xiamen were halted. Services to these three cities resumed on Nov 26 last year.

According to SIA’s website, for the week of Apr 1 to Apr 7, the airline still offers a total of 70 flights from Singapore to four cities in mainland China: 35 to Shanghai, 14 to Beijing, 14 to Guangzhou and seven to Shenzhen.

Aviation analysts CNA spoke to suggested a few reasons for service disruptions, including capacity limits and the unavailability of flight slots.

POSSIBLE REASONS BEHIND DISRUPTION

Independent analyst Brendan Sobie said that the suspension might be because the carrier had not managed to obtain approval for the summer season, which runs from end-March to end-October, in time. 

The analyst who founded aviation consultancy Sobie Aviation noted that the now-defunct SilkAir – which merged with SIA in 2021 – previously had the rights and slots to the affected routes, but that the slots could not simply be transferred to SIA. 

“You need regulatory approvals from all countries to do these kinds of transfers. Different countries have different rules about this but China essentially requires a new application and doesn’t automatically approve any transfer of slots or rights from one airline to another,” he said. 

As a result, SIA has had to obtain approvals from Chinese authorities. It managed to do so belatedly for the winter season last year, which runs from end-October to end-March. At that time, SIA did not sell seats on the affected routes beyond end-March, Mr Sobie stressed, adding that the regulatory issue had been going on “for a long time”. 

According to Mr Sobie, slot approvals are not necessarily permanent. 

“The old SilkAir slots were permanent but are now lost. So SIA Group has to try to get permanent slots for both summer and winter across all the former SilkAir routes.”

China is not the only authority to disallow transferring of slots. Changi Airport practises a similar policy, Mr Sobie pointed out. 

“So to transfer you need to reapply, and you are essentially at the back of the queue. many airports don’t have available slots so it’s not easy unless you want to operate at really off-peak times like 2am,” said Mr Sobie. 

Agreeing with Mr Sobie’s assessment, transport analyst Terence Fan from the Singapore Management University (SMU) said that scheduled air passenger traffic in and out of China comes with more constraints compared to that of many other countries. 

This is partly due to the heavy impact on China’s aviation sector during the pandemic, leading to China prioritising the recovery of their local airlines. 

He said that in particular, airlines in the US have not been able to reinstate their pre-pandemic capacities as they had wished, and have had to adjust to new restrictions. 

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How China's Volt Typhoon hackers target US infrastructure - Asia Times

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On March 19, 2024, the US government and its main world intelligence lovers, known as the Five Eyes, issued a warning about the action by Volt Typhoon, a Chinese state-sponsored thief class, that targeted vital equipment.

The security community’s new research on Chinese state-sponsored hacking has echoed the warning. As with many attacks and adversaries, Volt Typhoon has several names and is also known as Vanguard Panda, Bronze Silhouette, Dev- 0391, UNC3236, Voltzite and Insidious Taurus.

Following these latest instructions, China repeatedly denied that it engages in unpleasant cyberespionage.

Since being publicly identified by safety experts at Microsoft in May 2023, Volt Typhoon has hacked into thousands of products all over the world. However, some analysts in the security and government sectors believe the organization has been pursuing equipment since the middle of 2021, or perhaps even for a long time.

Volt Typhoon uses shady technology to hack into internet-connected systems by stealing weaknesses like poor superintendent passwords, factory definition logins, and outdated hardware. The thieves have targeted contacts, electricity, transport, water and wastewater systems in the US and its lands, such as Guam.

Volt Typhoon is a malware operator that has plagued the online for decades in many ways. It possesses access to vulnerable online resources like routers and security cameras to conceal and build a beachhead before using that system to start attacks in the future.

Because of their actions, security experts are unable to pinpoint the source of an invasion with accuracy. Worse, defenders may unintentionally launch retaliation against a target who is aware that they are a part of Volt Typhoon’s malware.

Why Volt Typhoon issues

YouTube video

]embedded information]

The possible economic harm of disrupting essential equipment is high worldwide. The US government may also be harmed by the activity of Volt Typhoon because it might cause power and water to be stricken military installations and crucial supply chains. At a legislative hearing on January 31, 2024, FBI Director Christopher Wray testified about Chinese attackers attempting to attack US critical equipment.

According to Microsoft’s 2023 report, Volt Typhoon may “disrupt crucial communications system between the United States and Asia area during upcoming problems.” The Cybersecurity and Infrastructure Security Agency also issued a warning that the bot may cause “disruption or loss of essential services in the event of increased political conflicts and/or military conflict with the United States and its allies.”

The existence of Volt Typhoon and the rising tensions between China and the US, especially over Taiwan, highlight the most recent link between international events and security.

Defending against Volt Typhoon

The FBI reported on January 31, 2024, that it had disrupted Volt Typhoon’s activities by removing the party’s malware from hundreds of small office/home business devices. However, the US is also determining the amount of the party’s penetration of America’s critical infrastructure.

The US and UK announced on March 25, 2024, that they had imposed restrictions on Chinese thieves who had hacked their facilities. And other states, including New Zealand, have revealed attacks traced back to China in recent years.

All organizations, particularly network providers, had process time- tested healthy computing centered on preparation, detection and response.

They must make sure that their clever devices and data systems are properly set up and patched, and that activity may be recorded. Additionally, they may look for and remove any hardware that their merchant no longer supports at the sides of their systems, such as routers and firewalls.

Companies can also put in place robust user-authentication methods, such as stochastic authentication, to make it harder for Volt Typhoon-like hackers to sacrifice systems and devices. In general, the extensive NIST Cybersecurity Framework can assist these organizations in developing stronger cybersecurity strategies to protect against Volt Typhoon and other assailants.

People, to, can take steps to protect themselves and their companies by ensuring their devices are properly updated, enabling multifactor authentication, always reusing passwords, and then remaining diligent to wary action on their accounts, devices and networks.

Attacks like Volt Typhoon can represent an enormous geopolitical cybersecurity threat for cybersecurity professionals and society in general. They serve as a reminder to everyone to keep an eye on what’s happening in the world and consider how current events can impact the availability, confidentiality, and availability of all things digital.

At the University of Maryland, Baltimore County, Richard Forno is the principal lecturer in computer science and electrical engineering.

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

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Cambodian monkey exports to Canada for lab tests are surging, fueling Canadian health concerns - Southeast Asia Globe

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A significant U.S. medical research firm was subpoenaed in 2023 by U.S. investigators because of unique monkey shipments it had received from an admitted “international animal smuggling ring” originating from Cambodia.

Charles River Laboratories agreed to work with U.S. Department of Justice leaders and suspended supplies of monkeys from Cambodia to its U.S. laboratory.

But as one way for the medication- testing monkeys shut over, another opened wider – from Cambodia to Charles River’s labs in Quebec, Canada.

Long-tailed lemurs are now being imported into Canada for individual drug testing in extraordinary numbers thanks to large captive walls in provinces close to Phnom Penh, according to an investigation by the Southeast Asia Globe, Pulitzer Center, and Toronto Star.

Federal information shows that the value of American exports of these endangered animals has increased nearly six times since Charles River’s announcement in February 2023 to cease animal imports to the United States. The only Canadian company that has a documented importation of lemurs from Cambodia is Charles River.

Chimps are farmed in large containers in Cambodia, a key global supplier of the monkeys

Concerns have been raised that Canada has then inherited a deteriorated supply chain that includes protected species such as wild long-tailed macaques, which may contain dangerous pathogens. &nbsp,

” While they ‘re]Charles River ] doing the right thing in the U. S., they’re doing the wrong thing in Canada”, says Dr. Nicholas Dodman, a veterinary medicine expert and professor emeritus at Tufts Veterinary School in Boston. ” It’s a kind of back door…They can still do their research, just not in the United States”.

A Charles River spokesperson stated in a statement that the company meets with all American laws and that it has made sure” no members of the public have been exposed to any health or health challenges from our services.”

The company said its facilities in Canada are part of its “global network” that includes” state- of- the- art operations in over 20 countries”. Following the subpoena, Charles River’s CEO called investors and stated that the company had quickly changed its monkey shipments to nations with “friendly governments” who are “working with us.”

Poached macaques allegedly entered the United States illegally.

Experts and advocates for captive angling raise questions about how adequately the authorities here have handled those imports.

Officials from Canada point to numerous quality control measures in place to ensure the importation of macaques. However, agents in the exporting nations have a significant burden of oversight, including two Cambodian government officials, who were charged under the same U.S. investigation that sparked the international scandal that caused Charles River to lose value.

Charles River has only been subpoenaed and is not facing any charges.

The small, docile test subjects are used in Charles River’s lab research, including the development of a COVID- 19 vaccine. According to international standards, animals used in this research are supposed to be captive bred.

According to the 2022 indictment, thousands of imported wild macaques were poached and laundered in the United States as part of the captive-bred trade. Since 2018, officials believe that about 2,600 wild macaques have been residing in the United States on false permits.

The same year of the indictment, the status of long- tailed macaques on the Red List of Threatened Species was upgraded to “endangered”. According to the threat report, “biological resource use” was cited as a major factor in the decline of macaques in the wild.

There are good reasons why laboratory animals should not be captured from the wild, says Andrew Knight, veterinary professor of animal welfare at Australia’s Griffith University.

” Scientifically, their genetic composition, and their health or disease status, may be unknown or variable, which can make experimental results less reliable”, he says. ” Additionally, there are major animal welfare concerns when primates are captured from the wild, or transported from breeding centres close to wild populations”.

A wild long- tailed macaque infant clings to its mother in Cambodia’s Phnom Sampov, Battambang

” Human health and animal welfare is paramount”

According to Lisa Jones- Engel, a senior science advisor with the U.S. activist group People for the Ethical Treatment of Animals ( PETA ), Canadian regulators should pay more attention to the importation of macaques because of the alleged issues U.S. investigators discovered as well as because Cambodian monkeys may carry diseases.

” Charles River…went just to the north to Canada and not only did ( Canadian officials ) not shut it down, but it appears they threw the borders wide open, rolled out the red carpet”, she said. ” And Canadian officials are ignoring the fact that monkeys exported from Cambodia have been carrying pathogens that not only pose a deadly zoonotic risk, but the presence of these pathogens further undermines and misplaces the use of these monkeys in experiments.”

This primate trade is characterized by the “highest risk of zoonotic disease transmission,” according to Jones- Engel in a letter to Ottawa officials in May, warning that Canadian residents may be paying the price for this industry’s hazardous practices.

She claimed for the Globe that the possibility of wild-caught monkeys entering the supply chain “means that this industry is more likely to usher in the next pandemic than to prevent it.”

We may create or import animals that contain infectious agents that can spread disease to people.

Charles River Laboratories

A recent case study by U. S. researchers tied a case of melioidosis, an infectious disease that can affect both humans and animals, to a Cambodian macaque imported to the U. S. in January 2021. &nbsp,

The animal was not imported by Charles River, the company said.

Charles River said in a statement that it respects the viewpoints of “groups and individuals who vehemently oppose the use of animals in human drug testing.”

” However, any factual and accurate assessment of Charles River’s conduct of such drug testing would come to the conclusion that our commitment to both human health and animal welfare is crucial. We have no doubt that those whose lives have been saved or significantly improved by the drugs we’ve contributed to develop will concur with us.

In addition to COVID vaccines, the company develops drugs to treat cancer, diabetes and rare diseases.

The company did not respond directly to questions about whether wild-caught monkeys could have been included in their Canadian supply chain. In a 2020 form to the U.S. Securities and Exchange Commission, Charles River noted that “We may create or import animals that contain infectious agents that can spread disease to people.,” which “could be a possible risk of human exposure and infection.” 

The company claims that Canadian authorities regularly monitor the company’s strict protocols, which include a 30-day quarantine for imported primates and required disease testing. &nbsp,

Officials in Canada echo Charles River and claim to closely monitor the primates to protect the public. &nbsp,

Dodman, the expert in veterinary medicine, is less certain.

” Grabbing a monkey out of a tree and shipping them to a lab, you’re asking for a health crisis”, he says. Who knows how long these diseases can survive without taking any precautions, and how long do they usually wait before developing a virus?

Oversight depends on permits issued in Cambodia.

Environment and Climate Change Canada (ECCC ) monitors the importation of lab animals. &nbsp,

The United Nations-run Convention for the International Trade of Endangered Species ( CITES ) serves as a resource for the federal government’s efforts to properly vet the animals ‘ origin and ensure there is no harm to the species ‘ wild population. &nbsp, &nbsp,

The authorities in Ottawa stated that they are concerned about ensuring that the incoming animals have CITES permits issued by authorities in the country of origin.

The CITES Management Authority in Cambodia, which is led by Masphal Kry and Omaliss Keo, the two senior Cambodian officials who are charged with violating the U.S. Department of Justice, is responsible for obtaining the permits that Canadian officials claim they rely on.

Kry is the only person to have gone on trial so far, and he was detained in the United States in November 2022 while traveling to a convention on the international trade of endangered species. He was found not guilty of smuggling and conspiracy to smuggle on March 22. His attorneys did not respond to a request for comment.

Despite the indictment, Keo is still listed as the CITES chairman for “terrestrial forest and wildlife resources” in Cambodia. When reached, Keo did not answer specific questions, but responded,” I thank]you] for your email and appreciate your asking ( for clarification ) and finding truth. I will respond as soon as possible”.

Upon Kry’s verdict and return to Phnom Penh, the Ministry of Agriculture, Forestry and Fisheries released a statement that read” This misrepresentation]the arrest of Kry ] was based on evidence obtained via improper investigations, concealed from Cambodian authorities, and contravening normal practices of cross- border law enforcement norms”.

The press release continued that the allegations against Cambodia regarding the long-tailed macaque trade had no supporting evidence and were based on untrue claims made by some individuals or NGO personnel, distributed through local unprofessional media, and used Western mainstream media to discredit Cambodian officials and influence the court’s decision.

Six officials associated with Vanny Bio- Research, a major exporter of long-tailed macaques bred for use in research, are also facing charges. In a statement, the company said it” denies any wrongdoing.”

The allegations by U. S. prosecutors carry significant implications, said Sarah Kite, co- founder of the international advocacy group Action for Primates, adding that they” raise serious questions regarding how widespread this smuggling operation was — and may continue to be — in Cambodia.”

Vanny Bio- Resource’s expansive monkey farm in Cambodia’s Pursat Province

” By continuing to allow the importation of long- tailed macaques from Cambodia, Canada may be… contributing substantially to the cruelty of trapping, and the decimation of the species in the wild,” Kite continued.

Monkey shipments pivoted to ‘ friendly’ countries

Since the indictment, redacted letters from the U.S. Fish and Wildlife Service have been the subject of at least two re-export requests for live long-tailed macaques and biological specimens. However, the U.S. government has not officially imposed a ban on the import of Cambodian monkeys.

Pierre Verreault, executive director of the Canadian Council on Animal Care, which inspects Charles River facilities and other Canadian labs to ensure animal welfare, says the U. S. government’s probe is a key way to find out whether the supply chain is tainted”. Hopefully, if there’s something wrong there, it will stop.”

In the meantime, Charles River’s movement of macaque importations away from the U. S. has had no significant impact on operations, CEO James Foster said in a September conference call with investors.

While the indictment” was very concerning,” the company pivoted to its” international footprint, which is quite large, we have got great facilities all over.”

” We have friendly governments…working with us… We’re not going to pivot back to the U. S…The preponderance will be done elsewhere,” Foster said.

Shareholders of Charles River are also suing the company for class action. The plaintiffs contend that the company “made materially false and/or misleading statements” and “did not disclose” that it had engaged in illegal activity in relation to the importation of non-human primates for research, including relying on “unpreferable suppliers of animals from Cambodia.”

As a result of the company’s” precipitous decline in market value “following the subpoena, shareholders have suffered” significant losses and damages,” the claim alleges.

Charles River did not respond to inquiries regarding the legal action. The company, which responded to the allegations in a court filing, denied making any false claims and claimed to have “regularly warned investors of the risks of supply interruption” and the need to rely on alternative suppliers.

The response reads,” Charles River expressly warned investors about the risk of disruption to its supply of macaques and about the possibility that its operations may not adhere to laws, including those governing the importation of macaques.” Charles Rivers ‘ warning that it might be required to source goods from “non-preferential” vendors shows that the business was being open and not trying to deceive the market.

Charles River has requested that the court drop the civil claim.

~~~

The Toronto Star and Southeast Asia Globe collaborated on this article, and The Pulitzer Center‘s Rainforest Investigations Network contributed financially.

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HSBC launches $1bn fund for Asean's digital economy | FinanceAsia

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HSBC has launched a$ 1 billion Asean Growth Fund to help scale up “platform players” in the region’s digital economy.

The goal is to enable electronic businesses to expand their asset portfolios and achieve scale. The fund intends to support “new-economy names”, well-established corporations, and non-bank economic institutions by “evaluating working metrics tied to their cashflow-generative asset portfolio, rather than only relying on conventional financial metrics,” according to a media release. &nbsp,

In Asean, the London- headquartered world institution has a reputation in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, and the bank will be looking to support companies in these countries, a spokeswoman told&nbsp, FinanceAsia.

In recent years, the lender has provided significant funding to a number of online gamers. In August 2023, the Philippines-based consumer finance digital platform Atome Financial announced plans to expand its$ 100 million debt facility. Earlier this month, HSBC agreed a$ 100 million credit facility with the Akulalu Group, a bank and digital software group with activities across Indonesia, the Philippines, Thailand and Malaysia. &nbsp,

Individually, HSBC has set apart$ 150 million to provide financing to earlier- stage, higher- growth companies in Singapore that are backed by venture capital or personal equity investors.

” Like so many other internationally minded businesses, we are excited about Asean’s booming digital economy”, said Amanda Murphy, head of commercial banking for South and Southeast Asia ( SEA ) at HSBC, in a statement. Asean has” so much potential for growth” with a working population that is digitally native, growing in size, and poised to consume more goods and services, especially in e-commerce.

Murphy continued,” The introduction of our most recent offerings makes us better able to support new-economy companies in Asean as they spread throughout the region and advance along the corporate lifecycle.”

Digitalising operations

SEA’s digital economy is among the world’s fastest- growing and was worth around$ 218 billion in 2023. By the end of this decade, it is anticipated to have a value of$ 600 billion, with a compound annual growth rate of 16 %. &nbsp,

HSBC recently surveyed 600 companies operating in SEA and found that 42 % said that “digitalising operations” is their top business priority. This was followed by “growth in SEA”, at 40 %, while 37 % of businesses said&nbsp, “research and development” is their top priority. &nbsp,

As Asean’s economies integrate more, 66 % of respondents said they want to expand into new markets within SEA, and 65 % of respondents said they plan to increase their investment in the digitalization of their businesses. &nbsp,

¬ Haymarket Media Limited. All rights reserved.

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Employers and employees both have part to play in workers' career health amid industry disruptions: Panellists

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“ACCELERATED” Upheaval In his starting statement before the panels dialogue, Dr Tan spoke about how technologies- driven problems are occurring at an “accelerated” speed. Against this backdrop, it is important for workers to take possession of their job health. Much like real wellness, taking a proactive and strategic approach isContinue Reading

China tries to block NGO tribute to dead dissident at UN

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Geneva: On Friday ( Mar 22 ), China attempted to obstruct a statement from a dissident who had been detained and died after attempting to attend the UN Human Rights Council ten years prior. Beijing used administrative maneuvers to object to a statement released by dozens of human rights organizationsContinue Reading

SG Bike to exit bicycle-sharing market after nearly 7 years; user accounts to be transferred to Anywheel

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SINGAPORE: With the transfer of SG Bike’s user accounts to Anywheel expected by the end of April, the native bicycle-sharing company is exiting the industry after almost seven years.

This move may successfully create homemade company Anywheel, when a rival of SG Bike, the largest player. &nbsp,

Users of SG Bike will be able to switch their current budget balance to the Anywheel platform in accordance with an agreement between the two companies. &nbsp,

Both companies said in a joint statement on Thursday ( Mar 21 ) that Anywheel ride only credits cannot be used for ride coupons, Anywheel passes, or merchandise. &nbsp,

This design comes as SG Bike has decided against renewing its license because it will expire on April 30 due to a” proper shift in business way.”

This agreement between Anywheel and SG Bike was made with the best interests of their users in mind, according to both users to ensure the stability and dependability of bike-sharing solutions and to minimize disruption to its clients in Singapore. &nbsp,

Starting on Thursday, SG Bike may quit accepting new sign-ups, fresh credit top-ups, and purchases of passes.

By May 3 for all SG Bike users, a notification on the Anywheel website states that they will have their budget balance reflected in the Anywheel software and that no further action will be required. &nbsp,

Those with S$ 0 or more in their budget does opt- in earlier for a S$ 10 ride- just credit incentive. By May 3 or earlier, according to the business, people who do so may view their budget balance displayed on the Anywheel game.

According to the statement, exchanges and converters can only be performed using the same documented or linked telephone number. &nbsp,

Clients of SG Bike who want to change their mind about the change can do so online. A payment has not been offered.

” We greatly encourage users to initiate automatic or early conversions for additional incentives.” The change will never occur if they choose to opt out, and their finances balance will be on the SG Bike application. In such a case, the treatment of the budget balance did following existing terms and conditions”, said an SG Bike director. &nbsp,

” Following, SG Bike will also be clearing all our bicycles off the streets for scrapping”.

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Friend-shoring having the desired anti-China effect - Asia Times

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The tendency to shift production and trade aside from nations that are perceived as political rivals or national security risk to countries that are perceived as allies, or as “friend-shoring,” is a hot topic in academics. The phrase appeared during the Covid crisis, a period of significant disturbance to supply chains, and gained more popularity when Russia invaded Ukraine.

One of the most well-known outcomes of a friend-shoring policy is that Mexico has overtaken China as the country’s top importer and Canada has recently surpassed China in terms of total trade ( see figures below ).

This came after Donald Trump’s business strategy was introduced, which was intended to lessen US dependence on Chinese goods, primarily for political causes and partially because of Trump’s view of China as a foe nation. In an effort to boost US attractiveness with China and develop the US tech business, Joe Biden has also imposed trade restrictions on China.

During the Trump administration, the US substantially increased import tariffs. These prices continue to be large, increasing the costs of importing goods from China to the US.

Additionally, the International Labor Organization Global Wage Report 2022-23 reveals that China has experienced the highest level of actual income rise among all G20 nations during the time 2008-2010, which also increases the cost of Chinese products.

The Biden presidency continues to support friend-shoring, which has more ensnared businesses to change their output from China to Mexico as they weigh up variations in manufacturing costs against political risks.

Although no information is available about how many companies are moving production, the most recent business information ( see Figures 1 and 2 ) suggests Mexico has been able to capitalize on the US- China conflict.

Closer relationships with allies can be created by forming new trade agreements, for example, the US, Mexico, Canada Agreement ( USMCA ), which is more about geopolitics and friend- shoring than lowering tariff barriers as was the case of its predecessor, the North America Free Trade Agreement ( Nafta ).

However, the USMCA was likewise a design innovation. The social will of the US had shifted to undermining political rivals and releasing anti-China social remarks that were popular with voters.

Trump, a frequent critique of Nafta, had argued that it lacked American jobs and income, a claim that certainly made sense in US industrialized nations where manufacturing is declining. According to a report from the National Bureau of Economic Research, much more US jobs were lost as a result of China’s competition.

Doing business with your buddies

A fresh name for a practice that has existed for a long time is friend-shoring. Countries participated in restrictions, barricades, and friend-shoring during the first and second world wars on a little larger scale.

The US began a 50-year-long program of economic sanctions against the Soviet Union in 1948, which included trade restrictions and was later strengthened by the Export Control Act of 1949.

Following the increase of the Korean War, these sanctions, which were made stronger after the Battle Act of 1951, were intended to restrict access to proper products to the Russian union. They became a permanent component of Cold War plan.

Social factors are analyzed in data analysis to illustrate how industry reacts. Trade economists have used the gravity type of business for more than 60 years to demonstrate empirically that nations trade more with nations geographically closer to them as well as those with nations where there is a common language, legal program, frequent exchange price regime, and shared colonial history.

Additionally, research shows how trade is impacted by political distance between nations and conventional military alliances.

Value of US imports from the top five buying lovers between 2010 and 2010:

US deal with countries by benefit:

Governments can use trade policy to strategically support their own industries, making it possible for them to cut out trade with rivals in order to promote domestic manufacturing ( and jobs ) instead of relying on imported goods.

The US Chips and Science Act and the German Chips Act, both of which are illustrations of procedures that can cause financial problems to adversaries while ensuring local production of this essential component of high-tech production.

However, developing an industry takes time. By the time the industry is established, it might not be successful, either as a result of declining prices brought on by increased supply or a depressed economy that stifles demand.

It is particularly interesting to note that the current industry focuses on creating high-quality chips through the design and production process. Therefore, the latest policy will see low- cost microchips, the mainstay of the Chinese chip industry, start to be produced in the US and compete with the established US high- end suppliers.

These kinds of policies have had the opposite effects in the US before. Just consider the US support for the steel industry, a popular choice among US presidents, including the current administration. Under the Trump administration, this saw 25 % tariffs imposed on steel imports, which benefited the US industry but imposed costs on steel users.

Countries such as Australia were exempt from this policy, while other allies, such as the EU, were hit hard. It’s possible to reduce dependence on rivals with industrial policy, but it’s not clear whether friends are always given special treatment.

Other laws may have an impact on a friend-shoring goal. The most recent wave of EU trade agreements address issues like environmental protection and labor rights, making it clear that third countries that want to conduct business with the EU must adhere to the same standards. Additionally, the EU has been discussing new anti-forced labor legislation, which could lead to more serious consideration of this kind of legislation in the UK, for instance.

Friend- shoring policies are n’t new, but the slogan is. Self-sufficientness at the national level can cause adversaries short-term harm but may have only the potential to be advantageous in the medium term. However, more and more people are now accepting that trading bloc friends are necessary for businesses.

Trade between trade blocs, which account for half of all trade currently occurring, and recent trade data for the US and Mexico ( see figures above ) suggest that trade blocs may gain more and more significance as production increases.

Karen Jackson is Reader in Economics, University of Westminster and Oleksandr Shepotylo, is Lecturer in Economics, Aston University

The Conversation has republished this article under a Creative Commons license. Read the original article.

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Asia feels the pinch of growing 'food chokepoints' - Asia Times

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In recent years, global food security has suffered from overlapping problems caused by problems, political tensions, climate change, and the Covid- 19 pandemic, resulting in severe foods provide problems.

These problems have been made worse by a number of “food causeways,” such as those that Yemen-based Houthi soldiers have attacked merchant boats and have hampered food shipments through the Suez Canal.

The transport visitors through the Panama Canal has decreased expected to&nbsp, drought&nbsp, which likewise hit river transport systems like as the&nbsp, Mississippi River&nbsp, and the&nbsp, Rhine River.

The emphasis on particular transport routes makes the pressure on global food security even more pressing because the global food system is already becoming increasingly dependent on the movement of meals from a few key “breadbasket” exporting areas to food-deficit locations around the world – frequently through these “food chokepoints”

It furthermore impacts agricultural goods profitability, shipping schedules, as well as food supply and prices. Longer delivery periods even put perishable foods at hazard, while&nbsp, shipping disruptions&nbsp, such as changes to shipping schedules stress cargo management and street transport sectors, causing major delays.

What does Asia’s interpretation of this mean?

For both food- exporting and importing countries, challenges loom. Exporting nations may experience profit margin pressures, which lower the cost of production while importing nations may have to deal with potential increases in transportation costs, which could lead to higher food prices, increased price volatility, and altered consumption patterns.

Due to their reliance on European and Black Sea markets for important agricultural products and fertilizers, Southeast Asia, East Asia, and South Asia are more vulnerable. Import disruptions pose inflation risks, contributing to a cost- of- living crisis.

In countries already grappling with crises like extreme weather ( Pakistan ), conflict ( Bangladesh and Myanmar ), economic turmoil ( Sri Lanka ) and political uncertainties ( Thailand ), &nbsp, food price inflation&nbsp, exacerbates poverty, stalling socioeconomic growth.

The most under- and middle-income households, which are most likely to be affected, may also be at increased risk of malnutrition, which could turn back decades of development progress in Asia.

Trade disruption implications

The US announced plans for a task force&nbsp in late December 2023 to combat the Houthi attacks in the Red Sea, but it is unlikely that immediate redress for trade turbulence and food price inflation will occur.

Concerns about food and fertilizer supplies being manipulated are raised by ongoing supply chain disruptions, as demonstrated by the Ukraine-Russian war, combined with the escalating geopolitical tensions.

Amid recurrent crises, urgent reforms to food systems are essential. Governments and policymakers must prioritize&nbsp, preparedness and resilience- building&nbsp, at national and regional levels to address food security issues and mitigate future impacts.

Governments and policymakers should diversify their sources of supply chain disruptions in addition to the increasing national stockpiles that the numerous net food importing nations in Asia have.

A good example is Singapore, which, while importing over 90 % of its food, has reduced vulnerability to food price and supply fluctuations through contact with&nbsp, more than 180 countries and regions.

This strategy has been largely successful, resulting in Singapore enjoying the world ‘s&nbsp, second most affordable food, behind Australia. &nbsp, The average&nbsp, Singaporean household&nbsp, spends less than 10 % of monthly expenses on food, in contrast with the Philippines ‘ 38 %.

Additionally, the Philippines, which has a large food deficit, ranks low in affordability, importing&nbsp, nearly 80 %&nbsp, of its agricultural imports. Food inflation in the Philippines reached&nbsp, 8 % &nbsp, in 2023.

Facilitating food access

Governments across the country must develop early action plans and strengthen social safety nets to lessen the strain of the cost-of-living crisis. For lower-income households with lower incomes, initiatives like food relief, cash support, and food voucher programs can help ease the strain. Subsidies and tax measures, which can provide temporary relief, may also be considered.

With average households spending over a third of their income on food in countries like&nbsp, the Philippines, and lower- income households in countries like&nbsp, Indonesia&nbsp, spending up to 64 % on food monthly, addressing food price inflation is crucial to safeguard average and lower- income households from undernutrition.

To address the interconnected issues of food availability, access, and affordability, Asian governments reliant on food imports could sign agreements with agricultural exporting countries in the region such as&nbsp, grain and oilseed powerhouses&nbsp, Australia and New Zealand. Doing so can avoid risks posed by chokepoints.

Greater focus on intra- regional trading could also be encouraged, such as in Southeast Asia, which has large exporters of key agricultural products including&nbsp, rice&nbsp, ( Vietnam and Thailand ) and&nbsp, palm oil&nbsp, ( Malaysia and Indonesia ).

Increased intra- regional trade could reduce&nbsp, regional food import dependency&nbsp, while also increasing regional food accessibility, market stability, and economic development. This could be aided by initiatives to encourage investments in agricultural research and development in the area to increase production of other staple grains ( such as wheat ) and reduce reliance on imports.

Looking ahead

The Middle East’s ongoing supply chain disruptions serve as a reminder of how crucial it is to have resilient national and regional food supplies and agrifood systems, according to Asian governments and policymakers. Countries must try to address these interlinked issues at national and regional levels in both the short and long term in the face of persistent food price inflation and malnutrition.

The region has a better chance of preparing itself for the challenges that lie ahead in terms of food security by implementing policy measures like diversifying food imports and strengthening social safety nets.

Genevieve Donnellon- May is a Research Associate at the Asia Society Policy Institute, Melbourne, Australia. Paul Teng is a Senior Adjunct Fellow at Nanyang Technological University (NTU), Singapore’s Nanyang Technological University (NTS Center ), S. Rajaratnam School of International Studies ( RSIS), and the Centre for Non-Traditional Security Studies (NTS Centre ).

This article first appeared on RSIS Commentary, and it has since been republished with kind permission. &nbsp,

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AI's rapid evolution | FinanceAsia

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Asian listed technology stocks outperformed world indices in 2023. While lingering geopolitical worries and supply chain constraints muffled the industry’s early year outlook, the sector was buoyed by the near overnight mass adoption of generative artificial intelligence (AI).

The release of user-friendly chatbots found an immediate audience. Within two months of its official launch, ChatGPT reached 100 million monthly active users, making it the fastest-growing consumer application in history, according to Similarweb data. The popularity of the OpenAI-designed chatbot spurred other notable rivals, including Google’s Bard and graphic designer Midjourney. AI systems are now capable of producing digital art designs, college-level essays and software coding – all in just a matter of seconds.

Unsure which generative AI platform will ultimately reign supreme, investors have been adopting a “picks and shovels” approach, a mining analogy favouring equipment makers. The Philadelphia Semiconductor Index returned almost 50% in 2023. Asian tech companies followed, with the MSCI AC Asia Pacific Information Technology Index rallying more than a fifth, compared to a 10% gain for the MSCI World Index.

Looking into 2024, there is little to believe tech’s outperformance will reverse, said Mazen Salhab, chief market strategist, MENA for BDSwiss, speaking to FinanceAsia. Salhab foresees the trend continuing beyond the next 12 months, considering the urgency for corporations to leverage innovative technologies capable of addressing headwinds such as tightening labour dynamics and higher costs.

Given its technological reach, experts see generative AI’s transformative properties creating significant economic value across a spectrum of industries. Bloomberg Intelligence predicts generative AI sales to reach $1.3 trillion over the next decade from a market size of $40 billion in 2022, representing a compounded annual growth rate (CAGR) of 42%, with rising demand for AI products adding $280 billion in new software revenues. 

These numbers are hard to ignore, explained Hong Kong-based Robert Zhan, director of financial risk management for KPMG China, to FA. He added that companies harnessing AI would not only establish a competitive advantage for themselves, but would also unlock substantial client and shareholder values, enriching the entire business ecosystem.

Concentrated gains

Yet, despite the broad-based optimism, generative AI value creation has been narrowly focussed with select names. The market cap of US-listed Nvidia, the graphic processing unit (GPU) chipmaker behind chatbots like ChatGPT, tripled in 2023, breaching the trillion-dollar level and quickly becoming the industry’s benchmark for AI sentiment.

The excitement surrounding AI pushed Nvidia’s current price-to-earnings (P/E) multiple to 120 times, compared to Nasdaq’s market multiple of just 25 times, with analysts justifying AI premiums due to the sector’s rising income profile and robust sales outlook. While historical productivity cycles have often inflated speculative prices, even at the current trading multiples, Salhab doesn’t believe an asset bubble exists, arguing that visible efficiency gains are set to materialise in the near future.

Timing when those AI-related gains appear is riddled with obstacles for asset allocators. Chip designer Arm Holdings, which listed on the Nasdaq in September 2023, has been trading with a P/E as much of 200 times, nearly double that of Nvidia’s, reflecting the widening gap investors are assigning to companies with AI linked revenues.

Despite the elevated valuations, fund managers see generative AI investments as just one catalyst for the tech sector. 

The outlook is particularly promising for semiconductors, said Matthew Cioppa, co-portfolio manager of Franklin Templeton’s technology fund, in a conversation with FA. Cioppa highlights ongoing drivers such as proliferating demand for electric vehicles, internet of things (IoT), and cloud computing, noting that these technologies are at the early growth stages of their innovation, offering catalysts for semiconductor stocks.

The politics of chips 

There are also many political considerations for AI investors. 

As semiconductors serve as the underlying hardware for AI, experts say the technology will inevitably always be related to political decisions that can quickly rattle markets. In October 2023, the US tightened export controls on advanced chip sales to China, hampering Beijing’s AI ambitions and fuelling US-Sino tensions ahead of the US 2024 presidential election.

The US-China trade dispute has diminished the Chinese semiconductor market for US suppliers, acknowledged Cioppa. Although he argues that export restrictions are already priced into the market, Cioppa believes that the political fallout linked to semiconductor chips and AI technology remains a volatile factor that can never be ignored, especially when the world’s two largest economies are directly involved.

Nvidia’s share price has bucked the trend. While the company has thus far overcome trading hurdles by offering alternative chips, that balancing act appears vulnerable following the group’s third-quarter earnings announcement which mentioned a more challenging operating environment ahead. That caution is now being echoed by Nvidia’s Chinese customers who are also concerned about their own generative AI aspirations.

In late November 2023, e-commerce giant Alibaba reversed its decision to spin off its Cloud Intelligence Group, citing the US export controls of advanced Nvidia chips, while China’s Tencent said it would look to domestic semiconductor manufacturers to meet its demand. Even as Nvidia coordinates with the US government on developing approved chip designs compliant with the existing rules, the outcome and timing of decisions remains unclear.

This matters for any technical development, said KPMG’s Zhan. “[Because] geopolitics impacts which AI vendor is selected, companies will be cautious to ensure they meet local regulatory requirements, particularly across data privacy and security.”

Rapid development of Chinese-produced semiconductors may test market sentiment if incumbents like Nvidia underestimate those capabilities. While supply may meet chip demand in the current market, Nvidia believes those alternatives may not provide sufficient computing power to train the next generation of AI systems, as stated in the earnings report.

Technological challenges are also occurring alongside policymaker efforts to incubate a regulatory landscape that supports AI platforms without derailing its potential. In October 2023, London initiated a summit aimed at establishing an AI oversight committee, but soon discovered that Washington had similar intentions, reflecting a lost coordination opportunity. 

What regulations are ultimately introduced is uncertain, but it’s anticipated that numerous discussions and obstacles will arise in the years ahead, said Zhan. When asked what type of regulation works best, he shared: “I would like to compare AI to a human. Right now, AI technology is still in its infancy, so it makes sense that it should get more supervision and more controls to help it learn and grow. But as AI matures and learns, such controls should adjust proportionately according to the risk.”

It is a sentiment underscored by Franklin Templeton’s Cioppa, who said that “over time a combination of sovereign regulatory frameworks and private market solutions would effectively provide AI guardrails as not to stifle innovation or make it too difficult for smaller companies to compete with the mega cap companies on any advancements.”

2024 outlook

The uncertainties facing AI investors for the year ahead are magnified by higher capital costs such as elevated interest expenses as central bankers grapple with inflation, and also the increasing need for expensive data centres.

It will be interesting to see how AI stocks’ performance compare to non-tech companies in an overall weaker investment environment. Any company looking to bring AI into their businesses will have an expensive journey which could weigh on their earnings’ outlook.

As the market undergoes tapering, venture capital and private equity firms are adjusting their expectations. Hong Kong-based Alex Wong, head of M&A advisory at FTI Capital Advisors, told FA:

“Our clients, particularly those considering Hong Kong initial public offerings (IPOs), have recalibrated their expectations. Impacted by the weaker local market, some are exploring various alternatives at reduced exit valuations. Others are studying different listing venues, or altogether, deferring IPO plans and choosing direct exit strategies like trade sales.”

For fund managers preparing for the year ahead, these factors may bode well again for Asia’s technology stocks over non-tech names, particularly innovative companies backed by reliable cash flows and visible dividend payouts to shareholders. For investors that may mean holding onto 2023’s winner in 2024.

Peter Choi, a senior analyst at Vontobel, favours firms such as Taiwan Semiconductor Manufacturing Company (TSMC), the largest constituent for MSCI AC Asia Pacific Information Technology Index which returned more than a third to investors last year, highlighting that TMSC powers AI businesses not only for Nvidia, but also for tech giants such as Google and Microsoft.

Yet, no matter which AI-related companies lead stock market returns, the generative AI attention will unlikely fade, explained Andrew Pearson, managing director of Intellligencia, an AI and analytics company in Hong Kong and Macau.  

“Fundamentally, generative AI is anything that can be imagined even if it doesn’t currently exist, making it good marketing material inside a PowerPoint presentation or even a book,” said Pearson, who recently published The Dead Chip Syndicate. Ominously, he added: “There will always be an audience for something that carries a 10% chance of destroying the human race. It is too big to disregard at this point.”

For investors, there may be a sense of irony by sticking to the same investment strategy in 2024, as arguably the most prudent approach to capture the market upside for a constantly evolving technology, is to repeat what has worked before. Will this trade work again? We will find out over the next 12 months.

This article first appeared in the print publication Volume One 2024 of Finance Asia.


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