GIC posts 20-year annualised real return of 3.9%, down from 4.6%

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The number for FY2023/24 represents the average annual profit of GIC’s investment between April 2004 to March 2024, while taking world inflation into account.

GIC noted in its statement that the robust performance from April 2003 to March 2004- when capital markets recovered from the strong modification of the dot-com crisis- dropped out of the rolling window for this year’s 20-year return. &nbsp,

The global market was tenacious in 2023 despite economic plan tightening the year before, and prices slowed, leading sturdy performance in danger assets, GIC said. The technical sector’s increased interest in conceptual artificial intelligence even increased profits.

But, geopolitical risks increased with the Russia-Ukraine battle continuing from 2022 and fight breaking out in the Middle East in October.

According to the review,” there are more likely to be renewed prices and lower growth” because of the spectre of product and supply chain disruptions.

CEO Lim Chow Kiat remarked in the statement that the level of uncertainty had “exaggerated significantly” over the past few years, challenging the assumptions made during the past four decades. He cited the rapid technological advancements, weather shift, and political flow in some nations.

Investors no longer need to ponder just where we are in the economic cycle or the interest rate trend’s direction, he wrote. &nbsp,

” This&nbsp, unprecedented uncertainty translates into a wider range of possible outcomes. Pitfalls&nbsp, and investments await in similar measure”.

He claimed that the climate change is a good illustration of how GIC’s long-term versatile money can influence behavior.

Investors have begun to realize that financing the transition does require short-term opportunity costs that they are unwilling to bear, according to Mr. Lim, citing a drop in venture and development expense in the sector and fewer exits.

However, a team from GIC’s private collateral department identified businesses that needed funding to expand “first-of-a-kind” projects that usually fall between conventional capital buckets and launched an investment program for natural assets.

” Individual funds like ours is well-suited&nbsp, to manage climate technology’s potential&nbsp, J-curve”, said Mr Lim.

Nuclear fusion is one instance of an investment with a longer sky, according to GIC chief investment agent Jeffrey Jaensubhakij.

The portfolio invested in a nuclear fusion business about three years ago, but he claimed the tech is still in its eight to tenth year of development.

ECONOMIC, GEOPOLITICAL CHALLENGES

In its statement, GIC claimed that elements like tight economic policy in the US, China’s real estate market, and heightened geopolitical tensions are making the world purchase setting appear difficult. But, it claimed that a faster rate of AI implementation would result in higher productivity growth.

The world economy has been adaptable, but that may slow down the disinflation approach, and some big central bankers have postponed their ideas or done less than expected, said the sovereign wealth fund, which manages Singapore’s resources and helps to Singapore’s monthly budget.

Core central banks may not only have to keep rates higher for longer but also have to potentially raise them, according to the report.” If inflation proves more persistent than expected and even increases, core central banks may not only have to keep rates higher for longer. This would increase the risk of a recession and put strain on households and businesses that are already dealing with high borrowing costs.

Mr. Lim responded to a question about the impact of the upcoming US elections by saying that GIC has a high level of confidence in the nation.

” Whoever is in charge, we think the country will continue to do well because they have so many positive fundamentals”, he said, pointing to innovation, talent and deep markets in the US.

” Clearly, the US will continue to be a very important market for us”.

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Budget 2024: Six takeaways from India PM Modi’s new spending plan

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Getty Images A woman works in office, Bangalore, Karnataka, India.Getty Images

After the ruling Bharatiya Janata Party ( BJP) lost its overwhelming majority in parliament, India’s finance minister Nirmala Sitharaman presented the coalition government’s first budget.

The new spending plan has replaced a stop-gap interim budget that came into effect from 1 April.

The budget announcements obviously indicate a change in interests for Prime Minister Narendra Modi’s new law, with ramped up allocations for rural development, skilling, work and agriculture.

Here are the six important insights from India’s resources:

Poor information for buyers

The budget increased the amount of tax on long-term capital gains from 10 % to 12.5 % on all financial and non-financial assets. Long-term holdings of property are regarded as.

Short-term capital gains will now be taxed at 20 % instead of 15 %.

The derivatives trading securities transaction taxes has also been increased by the funds.

The Economic Survey released a moment before, raising concerns about rising debate and the rise of retail traders in American capital markets, was widely anticipated.

Getty Images Indian workers align to submit registration forms as they seek employment in Israel during a recruitment drive at the Industrial Training Institute (ITI) in Lucknow, capital of India's Uttar Pradesh state on January 25, 2024.Getty Images

A$ 24bn jobs plan

Ms. Sitharaman has announced three new initiatives to address India’s persistent employment problem, which will cost the government 2tn rupees ($ 24 billion, £18.5 billion ) over the next five years.

For their first week’s income, up to 15, 000 rupees, first-time job applicants in the formal market will receive more immediate cash transfers.

Furthermore, two more programs have been announced to improve manufacturing jobs, which will provide employment-linked incentives to both employees and employers.

Tax relief for start-ups, end groups and international corporates

The government’s burgeoning start-up habitat will have something to cheer about, with an angel taxes levied on capital raised by secret firms now abolished.

Minor tweaks were also announced to personal income taxes, with expected savings of up to 17, 500 rupees ($ 209, £162 ) in outgo for people who opt for the new tax regime.

Corporate tax on foreign companies has also been reduced from 40 % to 35 % to promote investments.

Getty Images This photo taken on October 20, 2017 shows the Andhra Pradesh state government headquarters in the under construction "city" of Amaravati.Getty Images

A funds for the friends

The BJP’s two front-runners in the state of Bihar, Janata Dal ( United ), and Telugu Desam Party, both of whom hold 28 seats in the lower house, were asked to pay for the budget.

The finance minister announced 150 billion rupees worth of financial aid for the expansion of Andhra Pradesh’s money, with the promise of additional funding in the upcoming years.

A slew of new aircraft, path and energy projects were sanctioned in Bihar.

Reduced funds gap

For this fiscal year, the budget’s fiscal deficit, which is the amount that spends more than revenue, is set to be, at 4.9 %, less than the 5.1 % target that was previously announced, has been revised.

Rating companies carefully monitor the figure and have a direct impact on interest rates.

The government’s deficit was significantly reduced without significantly reducing expenditure thanks to a significant dividend payout of more than$ 25 billion from the nation’s central bank.

Getty Images Workers are working on the construction of a bridge over the Brahmaputra River in Guwahati, India, on July 23, 2024.Getty Images

Capex intact

The investment on state-led money spend on equipment generation, nevertheless, remained unchanged from the$ 134bn announced in the time budget.

” It is clear the focus has now become more diverse to other areas like employment, small businesses and social welfare”, said Shubhada Rao, scholar and founder of QuantEco Research.

She continued,” The budget is obviously more equitable in nature, and while there’s not necessarily “more immediate cash in the hands of people,” announcements like salary increases to new employees and minor tax changes could increase disposable incomes.

The Indian finance ministry anticipates an economy growth of between 6.5 % and 7 % for the fiscal year ending March 2025, which is lower than the previous forecast of 8.2 % and below that of multilateral organizations like the International Monetary Fund and the Asian Development Bank.

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Universiti Malaysia Terengganu partners pitchIN to boost fundraising for its spin-offs

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  • programs to recruit students from UMT to make investments in the businesses
  • PitchIN’s motivation to get as many institutions as possible on panel

(from left): Dzulkifi Mahmud, Chairman of UMTJ Committee; Prof Dr Marinah Mohd Ariffin, UMT Deputy Vice-Chancellor of Research & Innovation; Dr Ahmad Ramzi Mohamad Zubir, CEO of UMTJ; Sam Shafie, CEO of pitchIN; Xelia Tong, COO of pitchIN.

Universiti Malaysia Terengganu’s ( UMT ) wholly-owned subsidiary UMT Jaya Holdings Sdn Bhd ( UMTJ) signed a Memorandum of Agreement with Pitch Platforms Sdn Bhd ( pitchIN ) last week to help UMT’s spin-offs to raise funds through the equity crowdfunding (ECF ) platform.

UMT is the first to fully agree to work with us, focusing on boosting purchases made by UMT instructors and individuals into spin-off companies, according to Sam Shafie, CEO of PitchIN.

With colleges having their own domestic processes, various that pitchIN has engaged with are in the final phases of agreeing to a related association, such as Universiti Malaya, Universiti Sains Malaysia, and Universiti Teknologi Petronas.

Dr Ahmad Ramzi Mohamad Zubir, CEO of UMTJ said that the school’s intellectual property investment comprises patents, business designs, technology utilities, trademarks, custom rights, and industry secrets that are ripe for commercialisation. In 2023 alone, UMT registered a total of 60 intellectual property assets, including 40 products as proprietary rights, 13 as trade secrets, four registered patents, with the three others under other categorizations of intellectual property.

These university intellectual assets are still significantly underused and not producing commercial returns, which is a loss for UMT and the country as a whole, as is common throughout academia in Malaysia.

Therefore, partnering and co-operating with universities makes sense, and we’ve been trying to do this for a long time, but the bureaucracy was very cumbersome until I met Ramzi, Sam said.

PitchIN-UMT partner campaign and targeting&nbsp, alumni as potential investors

Through this agreement, UMTJ will serve as a bridge linking UMT’s spin-offs with potential investors via the pitchIN platform.

” Those spin-off companies will later be featured on our microsites ( partner campaigns ) on PitchIN, where partners like the university will curate the companies they select for fundraising on the platform”, Sam said.

In the case of UMT, all spin-offs will be housed under its own microsite. Additionally, PitchIN intends to work with UMT to engage its alumni and introduce them to investment opportunities offered by their alma mater.

The firstgroup of companies UTM is considering consist&nbsp, of spin-offs focusing on renewable energy, green hydrogen, and oil and gas industry.

A company with an oil & gas focus and two researchers who created an oil-absorbent material was chosen as the first candidate for listing. Ramzi criticized the founders for being among the top 1 % of world researchers, denying their claim to own the business.

” We’re going to pitch for funding and also go for the secondary market as well”, he added, referring to pitchIN’s secondary ECF trading market ( PSTX ) which went live on July 10, which&nbsp, allows people to trade shares of companies that have raised funding on the platform.

We’ll try to get the company listed before the end of Q3 or the beginning of Q4, according to Sam, because we’re going to begin our due diligence and compliance on the company soon. We’re also aiming to encourage institutional investors to make an investment in this business.

The spin-offs of UMT will be guided by Fundraising Accelerator ( FA ), a startup initiative launched by pitchIN Academy in October 2022, as part of the MoA. For its spinoff founders to successfully raise money, FA will provide the necessary guidance and skills.

Some of the other partners that have their micro-sites on pitchIN.

What’s next for pitchIN&nbsp,

With over 177 successful ECF campaigns and more than US$ 69.6 million ( RM325 million ) raised for issuers in Malaysia, what’s next for pitchIN, industry observers have wondered.

” Well, we have no immediate plans for listing as we still have a long way to go”, said Sam, sharing that the revenue target for this year is US$ 429, 000 ( RM2 million ).

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‘New model for human civilisation’: What is so unique about China’s style of modernisation?

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LOCAL Administrations

Another defining characteristic of China’s reform is the part of regional governments, which is noticeable in Suzhou.

Martinez noted:” Their active participation through industrial planning, and then the following development of high-end industries, creativity and innovation&nbsp, – these are all areas in which the regional governments, the city governments in China are greatly involved”.

One of China’s major industrial areas, Suzhou Industrial Park, specializes in producing cutting-edge software products while utilizing the state’s long history of producing premium consumer products.

Since the 14th century, the town in Jiangsu state has also been China’s leading manufacturer of silk&nbsp, – possibly the digital product of its time.

HOUSING SLUMP AMONG OTHER HEADWINDS

Some regional governments, which typically receive more than 40 % of their income from property sales, are now financially hampered after three years of an extraordinary housing market fall.

China also faces other challenges including adolescent poverty, an ageing population, and strong places wary of sharing systems with it.

According to Jin, China needs to resurrect its connection and capital markets as well as overhaul its economic system over the long run.

” Geopolitical tensions have taken a burden, but that has resulted in reorganization and a consider of globalization around the world,” she continued.

” I believe there is a tremendous potential to address some of the younger generation’s ability and education disparity,” he said.

Raymond Deng, a senior advisor to DBS China, stated that China needs to improve its systems and increase funding for businesses.

” In the 2008 financial crisis, many countries implemented quantitative easing, but for China, soon after 2008, we started quietly soaking up the extra money offer”, he added.

” So we do have the room and financial position to help build the key sectors that we need today when we need the stimulus,” he said.

China did exactly that to grow its current dominant electric vehicle industry. Punitive tariffs have also been brought in by the West, including the European Union and the United States.

With China having growth options, the effects of whatever it chooses may be felt everywhere and possibly even rebound backwards.

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One in three Malaysian have never used AI at work: Randstad

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  • More than 1 in 5 employees use AI usually or every day at work.
  • 81 % of Malay responders are aware of the impact AI will have on their employment.

One in three Malaysian have never used AI at work: Randstad

One in three Malay has never used AI at work, and another ten percent of those who have used AI tools only when, illustrating a considerable coverage gap in Malaysian skill development.

The total effects of Randstad’s 9th monthly Employer Brand Research in Malaysia have been made available. The study, which Kantar TNS conducted in January 2024, surveyed more than 173,000 people all over the world, including 2,500 from Malaysia, making it what it claims to be the most thorough company branding analysis based on general talent views.

One in three Malaysian have never used AI at work: RandstadFahad Naeem, state chairman at Randstad Malaysia, said,” The quarterly firm brand research guides employers with year-on-year analysis, as well as talent attitudes and opinions on important matters like skill development and equity. AI systems will continue to alter labor structures and skill requirements, and investing in talent development may help businesses find competent talent and entice more Malaysian workers to work there.

81 % of Malay are affected by AI at work.

More than one in five employees, particularly Gen Zers ( 36 % ) and Millennials ( 24 % ), are currently using AI at work every day or frequently, according to the survey. But, 34 percent of respondents said they have not used AI tools at work.

Importantly, there are major generational disparities regarding Iot exposure. At job, 42 percent of Gen Xers have not used AI, and this increases to 73 percent for Baby Boomers.

In Malaysia, 81 percent of respondents understand the impact AI will have on their work. Despite the fact that 71 percent of Gen Xers believe that AI will have an effect on their careers, compared to a whopping 75 % of Gen Xers who have never had any prior work experience. This is similar to Gen Zers (74 percent ) and Millennials ( 73 percent ), who are already more familiar with AI, the survey stated.

It added that, cheerily, labor attitudes on AI’s influence at work bias good, with 45 percent of respondents stating that it will enhance their job satisfaction. Importantly, those already using AI and the higher-educated are more positive that AI will enhance their career happiness, it said.

One in three Malaysian have never used AI at work: Randstad

Naeem said,” The development of AI has been fascinating, but it’s regular for people to know how it will affect their profession. First exposure to new technology may improve their career prospects and promote organizational skills development. Employers should move up to support their workers ‘ skill development as a result of the rapid and considerable advancement in AI connectivity.

One in ten responders, according to the study, did not receive enough opportunities to advance in their field. Workers who do not have opportunities for advancements in their careers are twice as likely to leave their organizations ( 31 % ) than those who do ( 31 % ).

Salary &amp, gains top of mind for indonesian job applicants

According to the report,” Attractive salary and benefits” stand out as the top priority for respondents when looking for an ideal employer to work for in Malaysia, followed by a” good work-life balance”.

The importance of” Strong Management” has also regaining popularity as the third most crucial workplace value statement after moving up to second place in 2023.

According to the report, people who leave their jobs also cite inadequate work-life balance as a major reason for their jobs, which highlights that 48 % of job switchers seek out new companies to improve it. Also, one in three Malay reported leaving their jobs as a result of rising living costs and low salaries.

Naeem continued,” The cost of living has significantly increased over the past two decades, which has resulted in some Malay looking for higher-paying work. Given that dwelling costs have increased in comparison to pay, this is not surprising. People who are overly stressed out about their personal income are also more likely to lose concentration at work. Some in-demand workers are reluctant to change careers as a result of the current economic climate. Therefore, it is crucial for employers looking to hire skill to be aware of both the expectations of candidates and the new business salary averages that their rivals offer.

One in three Malaysian have never used AI at work: Randstad

When questioned if their companies had offered them financial assistance to control the rising cost of living, 35 % of the time said no. Only 10 % of their businesses gave them one-time financial assistance, and another 34 percent claimed that their pay raise had helped to include some of the costs.

Employer Brand Research, which was commissioned by Randstad in its ninth season, features the opinions of at least 2,500 Malaysian responders.

The report includes more in-depth research findings that may aid businesses and employers in developing their boss branding strategies and attracting top talent to Malaysia. Companies are provided with year-over-year trends examination of the top 10 employee value statement factors as well as insights into skills perceptions on crucial human resource issues like capital at work and the effects of AI on skills.

Click here to view a copy of the report.

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IN FOCUS: IPO drought, poor valuations: What can be done to revive Singapore’s ailing stock market?

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GOVERNMENT MEASURES

The Singaporean government has taken actions to increase the appeal of the regional stock market.

Two money – especially the S$ 1.5 billion Anchor Fund@65 and S$ 500 million EDBI Growth Investor Fund -&nbsp, were established in 2022 to help high-growth firms to raise capital through pubic listings around.

Fund managers assist companies in advising them on the SGX listing requirements as well as facilitating meetings with investment banks and market makers, according to a Ministry of Trade and Industry ( MTI ) spokesperson.

According to Mr. Chee, these funds have so far been invested in nine businesses, according to a statement released last week in Parliament.

When asked if this number meets any initial goals and whether the funds have been successful in revitalizing the local stock market, MTI would only respond that the last two years have been “more challenging for equity markets globally” with a decline in IPO activities as a result of the high interest rate environment.

According to the spokesperson, the region’s equity markets have experienced similar repercussions in Singapore and the region.

CNA inquired further about the nine businesses that received support, as well as whether additional investments are planned. MTI did not respond.

In addition, there are plans to cover SGX-listed companies ‘ research costs and help with listing costs. &nbsp,

The Monetary Authority of Singapore ( MAS ) offers grant amounts up to S$ 2 million that help offset listing-related expenses as part of the Grant for Equity Market Singapore ( GEM) scheme, which was launched in 2019.

As of May, this grant has supported a total of 46 listings from sectors ranging from new technology, media, healthcare to information technology, an MAS spokesperson said.

Ten of these included mainboard listings like Digital Core REIT and Nanofilm Technologies. The remaining 36, including newly listed SAM Holdings, are listed on the Catalist board.

A research development grant, which is also funded by GEMS, has supported more than 10 research institutions and has hired 38 research analysts as of the end of 2023.

Over 900 research reports covering more than 130 SGX-listed companies have been produced by these research firms, with information provided by these firms providing insights for retail investors and aiding in better decision-making, according to MAS.

The central bank’s spokesperson told CNA that “one of the factors that potential IPO aspirants take into account when considering a listing on our equities market is the GEMS grant funding.”

“MAS will continue to work with industry stakeholders on this goal and review new ideas and proposals to improve our equities market and support business growth,” according to the statement.

On its part, SGX introduced new rules in 2021 to permit the listing of special purpose acquisition companies, or SPACs, on the mainboard and more recently, a Thailand-Singapore Depository Receipt was launched to broaden access to capital and markets.

It also&nbsp, started a market maker and liquidity provider programme in 2014 to boost trading volumes. The market operator declined to reveal specifics of this programme, citing confidentiality.

Additionally, SGX declined to comment on other inquiries made by CNA for this article, such as whether it is reviewing its current initiatives to improve performance.

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China’s subsidies create, not destroy, value – Asia Times

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Money is the only thing that controls everything in my life.

C. R. E. A. M., getting the cash

Buck dollar bill, y’all

– Wu- Tang Clan&nbsp,

The European business press frequently reports that China’s funded industries destroy benefit because they are not profitable, including everything from high-speed rail to electric cars to solar panels ( the subject of the most recent The Economist collapse ).

If The Economist really knows better and is just spreading its anti-China grin, we give it a go. However, if this opinion is really held, which all indications indicate it is, then we are dealing with something much more perverse. 248 years after the publication of Adam Smith’s” The Wealth of Nations” and the West has lost the financial story. &nbsp,

To enjoy Tesla’s US$ 788 billion business cover in comparison to BYD’s$ 93 billion is to mistake opportunities with results. Both businesses are given ample tax cuts and other government benefits. Elon Musk’s success is attested by the fact that Tesla is much more successful than BYD while Vehicles have a much lower US market penetration. Tesla pocketed the incentives while BYD ( and competitors ) delivered outcomes.

Similar to how America’s First Solar just rose to the position of being the most important photovoltaic company as fierce competition in China wiped out profits. In a tariff-protected market, First Solar’s superior valuation should n’t cause celebration. &nbsp,

The fact that China’s renewable companies are slaying each other by flooding the world with cheap solar panels is prima facie evidence of beautiful policy success and worth development, despite The Economist’s hand-wringing. &nbsp,

To not be able to understand this important point would never have been able to comprehend Adam Smith. ” The Wealth of Nations” was not about the pursuit of profits. &nbsp,

They are guided by an unseen hand to distribute the necessities of life, as would have been done, had the planet been divided into equal portions among all of its inhabitants, and therefore without any intention, without any knowledge, to advance the interests of the society, and obtain means to the multiplication of the species.

The secondary/tertiary outcomes that improve outcomes for everyone were supposed to be the whole point of intelligent self-interest. &nbsp,

It is not from the compassion of the barber, the baker, or the cook that we expect our supper, but from their respect to their own personal- interest.

What we want from the butcher, the baker and the cook are pork, beer and food, not for them to be fabulously wealthy store owners. Cheap EVs and solar panels should be what China needs from BYD and Jinko Solar ( as well as the US from Tesla and First Solar ), as opposed to trillion-dollar market-cap companies. In fact, mega-cap estimates suggest that something has gone completely wrong. Do we really want t entrepreneurs, or do we really want it? &nbsp,

The company press has a mediocre grasp of value creation. At worst, liberal befuddlement has damaged the neurons of legislators, rendering them capable of diagnosing economic ills. &nbsp, &nbsp,

The far- heralded multiple- trillion dollar prices of a handful of American companies ( Microsoft, Apple, Nvidia, Alphabet, Amazon and Meta ) – all of which will swear up and down and all day much that they are not monopolies – are symptoms of serious financial displacement. How much of their pricing is the result of advancement, and how much is the result of anti-trust impunity and governmental capture? &nbsp,

It’s hard to say. China stomped on its tech monopolies and now manages to deliver similar if not superior products and services – able to make inroads into international markets ( e. g. TikTok, Shein, Temu, Huawei, Xiaomi ) – at always much lower prices.

The European business media, confusing incentives with outcomes, gently relies on stock markets to establish value creation. An important but unmeasured indicator of economic value is a company’s market capitalization.

If you do not own shares of Microsoft, the company’s value is in the price and performance of Windows, Word, PowerPoint and Excel, which we are all forced to use. &nbsp,

Non-shareholders should be asking how much less expensive and better productivity software would be if regulators actually carried out their duties. Given Microsoft’s$ 3 trillion market cap, monopoly business model and how often Excel crashes, we can be reasonably certain that consumers are getting screwed. &nbsp,

The saddest creatures in late-stage capitalism are cheerleaders who support mega-cap companies like sports teams but only have a small amount of equity. With 54 % of total US market cap held by 1 % of the population, it’s a given that these confused devotees far outnumber the real beneficiaries. &nbsp,

Perhaps that is the end of the modern proletariat, who are stupefied fanboys who celebrate their neoliberal serfdom. This writer believes that they would benefit from less Elon Musk and a higher demand for affordable cars, but that’s just my opinion.

One must of course consult Karl Marx and” Das Kapital” in order to fully comprehend what is happening, which both declared that:” To truly comprehend what is going on, one must consult:

People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.

As soon as the land of any country has all become private property, the landlords, like all other men, love to reap where they never sowed, and demand a rent even for its natural produce.

Haha, gotcha. That’s actually Adam Smith and” The Wealth of Nations”. It seems unclear whether Karl Marx and Adam Smith shared the same end goal. The profit motive can produce superior outcomes, but only when it operates paradoxically, is what Adam Smith and Karl Marx both got right. In other words, profits must be withdrawn from the market, at least for the long term. &nbsp, &nbsp,

Much of the confusion is brought on by the mechanics of capitalism. Profits become the focus of finance and, regrettably, economics because so much of the infrastructure has been devoted to its measurement because the invisible hand of the market is supposed to be guided by the enlightened self-interest of participants. &nbsp,

Every two-bit graduate of Western universities has a working knowledge of accounting, financial statement analysis, and valuation models, with the explosion of MBA programs and undergraduate business courses. &nbsp,

Unfortunately, all of that is at best half the story – the producer surplus part of the supply/demand chart. Because 1 ) no one is earning any money off of it and 2 ) there is no reliable method to measure the consumer surplus portion, it is of little interest. Universities are n’t offering Master of Consumer Advocacy programs all over each other. &nbsp,

What China has accomplished in industry after industry is to subsidize hordes of producers to flatten the supply curve. This spurs innovation, increases output and crushes margins. Value is not being destroyed, it’s accruing to consumers as lower prices, higher quality and/or more innovative products and services.

If you are looking for returns in the financial statements of China’s subsidized companies, you are doing it wrong. If China’s subsidized industries are generating massive profits, policymakers should be investigated for corruption. &nbsp,

A recent CSIS report estimated that China spent$ 231 billion on EV subsidies. We’ll go with it, even though that is a gross overestimation ( the think tank’s assumption about the EV sales tax exemption is far too high ). That comes out at$ 578 per car when spread over all ~400 million cars ( both EV and ICE ) on China’s roads. &nbsp,

The result was a Cambrian explosion of new EV manufacturers flooded China’s market with more than 250 models. Unbridled competition, blistering innovation and price wars have blinged out China’s EVs with performance/features and lowered prices on all cars ( both EV and ICE ) by$ 10, 000 to$ 40, 000. Chinese consumers will pocket a further$ 500 billion in consumer surplus in 2024, assuming an average savings of$ 20, 000 per car.

What number should we put on that? 10x? 15x? 20x? Yes, China’s EV industry is barely scraping a profit. So what? For a measly$ 231 billion in subsidies, China has created$ 5 to$ 10 trillion in value for its consumers. The combined market cap of the world’s 20 largest car companies is less than$ 2 trillion. &nbsp, &nbsp,

Graphic: Asia Times

The supply/demand curves above demonstrate that the main market effects are what we have been studying. The more significant outcomes of industrial policy are externalities. And it is all about the externalities. &nbsp,

Switching to electric vehicles saves China from oil imports, reduces particulates and CO2 emissions, creates jobs for swarms of new STEM graduates, and creates ultra-competitive companies in international markets, to name a few. &nbsp,

The shocking drop in solar panel prices may have even greater impact on the externalities. From mass desalinization to synthetic fertilizer, plastics, and jet fuel to indoor urban agriculture, previously uneconomic engineering solutions may be possible. China’s potential to significantly lower the cost of energy for the Global South has significant geopolitical repercussions.

The city of Hefei in backwater Anhui province has achieved spectacular growth in recent years through shrewd investments in high- tech industries ( e. g. EVs, LCD, quantum computing, AI, robotics, memory chips ). The Hefei model, which uses local governments to run venture capital funds, may be more effective than Silicon Valley’s. &nbsp,

The Hefei model is more flexible than the traditional venture capital investment returns, which are based on the company’s profits. Returns can be gathered through a variety of means, from lowering employee taxes to improving workforces to boosting consumer surplus. If positive externalities are a component of the incentive structure, the internal hurdle rate can be reduced.

The model is n’t really unique, despite Hefei’s tradition of hosting symposiums for processions of municipalities hoping that some of its magic will work. When challenged against the technological frontier, the China model looks exactly like it does. &nbsp,

While quantum computing, AI and robotics may be sexy, the formula is not much different from the macro China model. That is, a model that is aware of every aspect of value creation, from producers to externalities to consumers, not one that is fixated on and distorted by profits. &nbsp,

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China flexes AI muscle at Shanghai expo – Asia Times

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The Shanghai World Expo Exhibition and Convention Center’s fifth World Artificial Intelligence Conference, held from July 4 through July 7, demonstrated China’s commitment to developing a large, various, and global solution to a US-focused AI business.

More than 500 companies working on big language models, machine learning, the use of AI in smartphones, PCs and wearables, healthcare and another Iot- enabled services, professional AI, smart robots and autonomous vehicles participated in the event and showed off their products in the exhibition hall.

Most were Foreign but Amazon Web Services, Dell, GE, GM, Google, Microsoft, Tesla and Qualcomm even attracted masses of customers.

Foreign participants ranged from technology giants Alibaba, Baidu, Huawei and Google to Computer maker Lenovo, telecom equipment maker ZTE, network operators China Mobile, China Telecom and China Unicom, and many Iot- related software and service providers. Text- to- words, wording- to- image, wording- to- video, on- device and opened- source models were on display.

A special area of the show matched 100 start-ups from all over the world with 100 traders from government-guided funds, venture and private ownership funds, state-owned businesses, and listed companies. Areas of focus included financial, smart terminals, bright transport, the lower- altitude economy and medical applications.

A Comprehensive Connection Hub distributed information on various AI-related projects to investment banks and procurement firms. An AI Application Scenarios Comprehensive Zone hosted scenario providers from China and close to 20 other countries including the US, Canada, Mexico, the UK and Singapore. The event’s organizers estimate that more than 10 billion yuan ($ 1.38 billion ) will be spent on procurement requests overall.

The robot exhibition featured more than 20 humanoid robots from companies including Data Robotics, Deep Robotics, Robot Era, Fourier Intelligence, Unitree and Tesla, which showed off its Optimus Gen 2 inside a glass box. China’s humanoid robot open- source community was also represented. Quadruped, wheeled and dexterous fixed robots were also on display.

However, the most important thing about the state of AI in China was the presentation of large language models, their creators, and their capabilities. The Shanghai government organizers chose the following examples for their impact:

  • The first model from a major state-owned company to be registered with the National Cyberspace Administration for generative AI services and algorithms, China Mobile’s” Jiutian Base Model” was the first. It is already employed by the government, healthcare, and a number of businesses, including China Railway Construction Corporation ( CRCC ) and China Ocean Shipping Company ( COSCO ).
  • China Unicom’s” Yuanjing’ 1 1 M ‘ LLM system”, which is already used in network management, customer service, fraud detection, government and industry.
  • Smart homes and smart city services are made possible by China Telecom’s models and cloud computing.
  • The state-owned CITIC Group ( previously known as China International Trust Investment Corporation ) Group presented its” Lighthouse Factory,” an internet-based manufacturing system developed for the special steel industry and soon to be used for aluminum auto parts.
  • Google and Lanzhou University collaborated to incorporate Dunhuang mural patterns into contemporary clothing by using the open-source software library for machine learning developed by Google. Unhuang is a significant archeological site on the ancient Silk Road, known for the manuscripts, murals, and Buddhist statues discovered in its numerous caves.

New large language models and applications were presented by more than 15 Chinese companies, including Alibaba, Ant Group, Baichuan Intelligence, Baidu, Huawei, iFLYTEK, Kingsoft, Midu, Minimax, Model Best, SenseTime, Tencent, Transwarp, Unisound and Zhipu AI.

Many of these businesses are probably not known to most non-Chinese readers. Some, if not many, of them seem likely to become familiar names in the future. They demonstrate the rapid and extensive development of AI in China, which combines Japan-style industrial policy with a US-style start-up culture and Chinese entrepreneurship.

Joe Tsai, the chairman of Alibaba Group, claimed in an interview with the South China Morning Post that China is “possibly two years behind” leading American AI developers. He blamed this on US export restrictions, which prevent Chinese companies from buying Nvidia’s most advanced GPUs. He continued, “it is an issue in the short run and probably the medium run.”

Despite the sanctions, it might be said that China’s leading AI developers lag their US counterparts by only two or three years, despite the difficulty of calculating the gap.

In terms of the real-world application of AI in society, China may already be ahead of the US in terms of the variety of goods and services on display at the conference and exhibition in Shanghai.

More than 80 businesses devoted to the creation of AI models have been drawn to the Shanghai Foundation Model Innovation Center ( SMC), a business incubator, according to the China Daily. The city currently has 34 large language models.

With about 250, 000 employees and a valuation of over 380 billion yuan ($ 52 billion ), Shanghai’s AI sector leads the nation.

Follow this writer on&nbsp, X: @ScottFo83517667

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Risk migrates to Europe from Asia – Asia Times

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Chance leaves Asia and travels to Europe.

According to David P. Goldman, political threat in Europe is rising as the National Rally in France and the AfD in Germany increase confusion and uncertainty in European areas, while quiet has returned to China’s ownership industry.

European parliamentary elections as expected

Diego Faßnacht reports on the effects of the French legislative election, with the National Rally receiving more than 33 % of the vote. Strong split between the left and Macron’s supporters make assistance hard, likely leading to a divided and dormant congress.

Ukraine’s losing place casts darkness over US vote

Concerns about the effects of US political dynamics on their support are rising in Kiev, according to James Davis, which could lead to negotiations over securing protection services, aid, and possible NATO membership assurances. Russia appears to be paying close attention to the political climate in the US.

US sanctions against Chinese technology are getting near their boundaries.

Scott Foster discusses Japan’s emphasis on preventing Beijing from imposing new technology restrictions at Washington’s peril, citing China’s significant market share for Chinese semiconductor equipment manufacturers and the rapid development of Chinese artificial intelligence and 5G.

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How do you manage a staff of mostly 1,500 gamers? Razer’s head of people pushes for inclusivity and innovation

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Lunchtime is spent in breakout groups, playing Mobile Legends: Bang Bang ( MLBB ), a popular multiplayer online battle arena game, Pokemon Unite, or any of the team’s latest gaming obsessions.

AFK, little for” Gone From Keyboard”, happens every last Friday of the month. When Razer employees engage in video game or observe other employees engage in them while they are employed.

Wan even directs her team’s involvement in the Razer Cup, a monthly inside gaming competition that is typically streamed live to the staff.

A major part of her work includes advocating for conservation, and shaping the labor culture for greater diversity, equity, employee engagement and effectively- being.

Razer USA and Razer Singapore were able to maintain their Great Place to Work accreditation for two consecutive years between 2021 and 2023 under her authority. This worldwide certification is based on independent study and employee feedback.

Variety, THE CORE OF Development

Being a adult leader distinguishes her from other women: Razer Singapore is 35 percent feminine and 65 percent man. The company’s international sex ratio is 62 per share men and 38 per cent female. &nbsp,

She is also a Gen Xer, a non-traditional player who is influential in entertainment society. Thin admitted that she is never a hardcore gamers and is now playing a more” puerile” game, Disney Frozen, which is similar to Candy Crush. &nbsp,

She argues, however, that modern game has transcended traditional man or youth culture. And with that, richness of the workplace is key to technology.

” Diversity is about richness of thoughts, and variety of ideas come from the personal history, culture, gender and persons each individual interacts with. That is essential to developing items that appeal to the intended audience, she said.

Wan’s first priority when he started working for the company in 2019 was to advocate for the introduction of a human resources data program, which would allow the company to digitize and analyze the data of its 1,500 personnel around the world.

Pale and her 50-strong crew waited about a time to type the data. With information like people ‘ race, gender, age, employment, pay, and other factors, the software can identify which sections of Razer have more skill set and which places are lacking in order for the company to optimize performance and productivity.

Additionally, it makes it possible for the firm to implement anti-bias training programs and diverse hiring practices.

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