Breaking away from commission-based fees, Mereka opts for subscription model for its talent marketplace of experts

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  • Charging regular cost of US$ 20 for piano, &nbsp, US$ 40 for team
  • Model is expected to remove the need for skill to keep the platform&nbsp, &nbsp,

Rashvin, co-founder and CEO of Mereka making his pitch at the 2024 MBAN Summit held in KL in Sept.

” You are the one delivering the job, you should get paid the full amount for that work”, said Rashvin Pal Singh, team CEO of Mereka, an education tech company. &nbsp,

He refers to knowledge-based gig workers rather than delivery and rideshare, where the business models of platforms like Upwork and Fiverr are set to take a cut, ranging from 10 % to 20 % from each job the workers receive through the platforms. One platform, Toptal which connects businesses with software engineers, designers, finance experts, product managers, and project managers, charges up to 40 %. &nbsp,

With the launch of its subscription-based skill marketplace platform in June, where talent do not have to give the platform for the number of work they get, Rashvin found this to be fundamentally unjust because” the person delivering the service is the expert, but the system as an entity takes a big slice of their income.” Rather users pay a US$ 20 ( RM88 ) monthly fee for individuals or US$ 40 ( RM176 ) for teams. ” You pay us for access, versus the other way around where you come on board the platforms for free, but they keep taking 20 % to 40 % of what you earn” .&nbsp,

Some points made by Rashvin.Mereka has launched an ownership fundraising strategy on pitchIN with the aim of raising RM1.5 million in addition to the launch of the skills system. As of 6 Nov, it has reached RM800, 700, primarily from existing owners from its 2018 battle that raised over RM1.6 million. &nbsp,

]RM1 = US$ 0.227]

The money will solve Rashvin’s two main issues. Finding the balance between having an impact and being equitable while simultaneously addressing its individual business needs is a high wire work, like all socially-driven effect companies. If the money is depleted, it will work as a security net.

The second is that a seven-person software team requires ongoing investment in software development in order to achieve long-term results as opposed to balancing cash circulation for the current year. &nbsp,

” We want to improve our technical advancement”, Rashvin said.

Having said that, Mereka has had a positive cash flow for the past three decades.

 

changing the subscriber type

To be sure, when the program initially launched in 2021, it did not begin with the subscription model. Although it provided career matching and training programs, it primarily served as a resource management platform that made it possible for users to book both the Mereka training programs and the huge makerspace’s rental facilities. Additionally, it partnered with Taylor’s University and a few TVET/vocational center in Kuala Lumpur to record their services for rent. &nbsp,

Because it posed the least obstacle to entrance and was the norm in the market, it decided to adopt the commission model. &nbsp,

Despite seeing 220, 000 learners access various courses ( from 2021 to 2023 ), 80 % of those who attended the Skills for Jobs Indonesia program with Mereka serving as implementing partners had a bad year.

Rashvin even noticed the problem with all programs that match gig workers to jobs, with employees leaving the platforms to deal with clients immediately. ” There was no commitment to the systems, but I understood this”, said Rashvin. The problem with transaction-based models is that once you start finding a few projects on the program, you will typically find a way to keep because you would like to avoid paying the fee per job.

The subscription design, which allows ability to retain all of their earnings, not only generates good publicity, but it also helps to foster loyalty and lessens the likelihood of talent wanting to deal with clients outside of their own country.

” We will also continue to add value to our customers by providing them with access to our university courses and putting them in work via our work board. We can stick to our motto, “Skills to Income,” by strengthening our brand and making the system more equal, said Rashvin.

The phrase “expert” is used to describe the skills is intentional because the market does not only target knowledge employees but also those who are experts in their fields, ex-craftsmen, even though this group only accounts for 5 % of the ability.

With the job market in Southeast Asia valued at US$ 3 billion, said Rashvin, Mereka is targeting to sign-up 50, 000 authorities on the software over the next eight years.
 

The discrimination in compensation between workers and knowledge-based job

Rashvin, a co-founder and CEO of Biji-Biji Initiative, was first exposed to the unfairness of compensating skills. Biji-Biji, a social organization founded in 2013 by some companions, focuses on sustainable development through education and technology in Malaysia.

During the first three years of Biji-Biji, although they were doing production work like woodworking, metal fabrication, handmade bags for women, the challenge faced was being valued as mere’ labor’ work. They were not being compensated fairly for what Rashvin claims was skilled labor that was being paid between RM100 and RM150 per day.

He only realized this when Biji-Biji began providing educational programs in 2015 and this realization only hit him. We realized that customers who were learning from instructors were receiving RM150 to RM200 per hour, as opposed to the same rate per day for any production work, according to Rushvin.

Mereka, a division of Biji-Biji Initiative, established as a result of this glaring pay gap in 2017, which aims to provide higher-quality education and coaching to businesses. &nbsp,

Seven years later, Mereka has evolved into a talent development ecosystem that trains artists, professionals, and businesspeople for the future of the workforce. Through our talent marketplace, Rashvin stated,” We give our learners access to digital entrepreneurship content and opportunities to make money,”

He anticipates a positive response from the market for the model. Because the money is yours, there is no incentive for you to transact off-platform. ” &nbsp,

He anticipates the business to be viable because Mereka will earn recurring income while talent who joins the platform will have access to two things: ongoing income-generating opportunities and job opportunities ( which they have to pay for ).

Mereka will launch a free tier in January, where users can access the platform’s digital content but not its income-generating opportunities.

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Capital equipment not enough to revive US chip-making – Asia Times

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After decades of decline, a new boost in US manufacturing is garnering considerable media attention. In particular, the semiconductor industry has been prioritized for US government support through the CHIPS Act initiative with some US$50 billion worth of state funding.

But what will be needed to increase and sustain US high-technology manufacturing? A  serious resurgence of advanced manufacturing (chips being the most demanding) will require much more than investing in more sophisticated equipment in new plants.

It will require training a new generation of highly skilled personnel to operate such plants successfully. While increasingly sophisticated technology is key to much of competitive manufacturing, it is productive only with staff with very specialized training to operate in complex plant environments. Badly managed mechanization will hinder rather than promote value creation.

I learned from experience in semiconductor manufacturing. Early in my career at RCA,  I was tasked with designing and operating one of the first silicon transistor factories to manufacture the 2N2102, a transistor I had developed for use in building computer and other electronic systems.  

I outfitted the factory with equipment scaled from my laboratory. At the time, no commercial production equipment existed. For example, the optical lithographic equipment was built by the local photography shop in Somerville, New Jersey, for a few hundred dollars.

When production volume needed to increase, new equipment was required and we purchased new, more automated commercial production  equipment then coming to market. I had hoped that such equipment would increase production volume and yields.

However, volume increased but product yields declined. The cause, we discovered, was inadequate process definition for the automated equipment.

We found that with the original manual processes, the production technicians introduced changes as they deemed necessary to maintain quality and production rates in the face of small changes, for example, in the temperature of chemical solutions.

The new machines were designed to operate under fixed pre-set conditions and changes were not automatically adjustable. To make the factory operate, we had to invest time and effort in defining all of the production elements and avoid human intervention randomly introduced to correct anomalies.

The machines had to be programmed with great precision for desired results. This required much process research to understand variables.

Here, I learned a valuable lesson in production management—the importance of very precise process definition and control. As new, more automated equipment was introduced, product yields frequently declined initially.

They did not improve until the production process was refined to new levels because new automated equipment required new levels of process knowledge and control.

To enable successful production required a close working relationship between production process  engineers and equipment operators. These engineers had to be trained to fully understand the technology. This was a new engineering discipline.

This necessitated change in production methodology was costly and hard to accept by production managers trained in the old days of low levels of automation. But change they did as a new generation of production managers entered chip manufacturing.

However, I found that, given the same equipment, plant performance was a strong function of local management quality and staff  training. The variables to be controlled and adjusted with automation were practically endless and the plants had to develop their own process engineering skills to perform economically.

In effect, starting with devices designed in the laboratory, moving them into production was a whole new endeavor requiring talent as valuable as that of the original design team.

It is evident that as chips increased in complexity, production became extraordinarily demanding in capital and human resources. For my original  transistor, the device dimensions were in fractions of a centimeter and a photoshop could make the equipment to form the dimensions.  

Today, integrated circuit chips have billions of transistors interconnected with dimensions approaching atomic ones. Whatever challenges I faced, today’s plants have them in far greater complexity and cost.

Fast-forward to 2024, and my simple homemade lithographic tool has evolved for the most sophisticated chip production to a huge piece of ultraviolet laser-powered equipment produced by ASML (the sole producer globally), which sells for about $300 million and requires specially trained staff to operate.  

Faced with such costs and management challenges, it is easy to understand why the leaders of so many chip companies decided that manufacturing was too challenging and outsourced production to Taiwan’s TSMC, which is exclusively committed to chip manufacturing.  

TSMC’s success is not based on the invention of unique equipment. Rather, it is rooted in outstanding management of human and capital resources. The company trains its staff to a high level of performance and operates its plants to get the best possible performance from its costly equipment.

 A new fully equipped plant costs $20 billion but it is the highly trained management and staff that make it work. At this time, TSMC produces over 90% of the highest-performance chips in the world. Anyone looking to compete has to invest in the human resources needed, not just the equipment.

Henry Kressel is a technologist, inventor, author and industry executive. He is a long-term private equity investor in technology businesses. Incidentally, the original 2N2102 product is still commercially available.

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Multimedia University, Huawei Malaysia to enhance ICT education ecosystem with Huawei ICT Academy Support Center 

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  • Courses will cover 5G, AI, cloud computing, green tech & cybersecurity
  • Aims to cultivate local talent with skills for the evolving digital landscape

(From left) Multimedia University deputy dean of Student Affairs Assoc. Prof. Dr Ng Kok Why and Multimedia University president & CEO Prof. Dr. Mazliham Mohd Su’ud with Rony Zhang, Huawei Malaysia account director for Enterprise Government Business Group and Ye Zhonghua, Huawei Malaysia director of the Board at the MoU exchange ceremony.

Multimedia University (MMU), the tertiary education arm of Telekom Malaysia Bhd, has partnered with Huawei Technologies (Malaysia) Sdn Bhd to establish a Huawei ICT Academy Support Center (IASC). The IASC will serve as a central hub, supporting the operations and development of both new and existing Huawei ICT Academies across the nation. This initiative aims to strengthen Malaysia’s Information and Communications Technology education ecosystem and cultivate local talent with the skills necessary to meet the evolving demands of the digital landscape.

Through this partnership, MMU will drive the expansion and onboarding of new Huawei ICT Academies nationwide via the IASC, employing marketing strategies, orientation assistance, on-site workshops, and various outreach activities designed to foster industry-academia alliances. These initiatives are intended to showcase the value of digital talent and attract new students.

Huawei Malaysia will equip the IASC with regularly updated, authorised course materials aligned with industry trends, drawing on its expertise as a global ICT solutions provider with significant local insight. These materials will cover key tech domains, including 5G technology, Artificial Intelligence (AI), Cloud computing, Big Data, green technology, and cybersecurity. Additionally, the company will support the IASC with Train-the-Trainer (TTT) programmes, technical guidance, and lab resources.

Prof. Dr. Mazliham Mohd. Su’ud, president of MMU, stated, “This partnership marks a significant milestone in our commitment to advancing ICT education in Malaysia. By establishing the Huawei ICT Academy Support Center, we are not only enhancing our educational offerings but also ensuring that our students are equipped with the skills required to thrive in an increasingly digital world. This collaboration with Huawei Malaysia will empower educators, foster industry-academia partnerships, and ultimately help bridge the skills gap in our workforce. Together, we are paving the way for a more digitally inclusive future.”

“Digital equity is built on digital literacy, and with the ICT sector employing 1.24 million people last year—7.8% of Malaysia’s workforce—there is growing demand for expertise in emerging technologies. However, as technology advances at an unprecedented pace, educational programmes often struggle to close the digital skills gap and address the mismatch between academic output and industry needs. The expansion of our Huawei ICT Academies network, supported by the IASC, will be instrumental in ensuring each academy operates with maximum efficiency. We are excited to partner with MMU on this initiative to elevate Malaysia’s ICT education ecosystem to new heights,” said Oliver Liu, vice president of Huawei Malaysia.

The collaboration was formalised with the recent signing of a Memorandum of Understanding (MoU) in Shenzhen, China.

Under the MoU, MMU will oversee the integration of Huawei ICT Academy courses into formal academic curricula. At least two Huawei Certified ICT Associates instructors will be part of MMU’s resources to deliver the necessary TTT programmes required by the various academies.

Additionally, the university will monitor students’ progress and provide the necessary support for academies to secure Huawei Certification Exam Vouchers, enabling students to obtain internationally recognised certifications that will enhance their career prospects in the ICT field.

To date, Huawei Malaysia has established Huawei ICT Academies in 40 public and private higher education institutions nationwide and claims to have already trained 54,000 individuals through the Huawei ASEAN Academy, surpassing its target of 50,000 digital talents by 2025.

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How China can revive its bruised and dwindling billionaire class – Asia Times

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Is the “smart” money still fleeing China? Whether it’s wise to leave Asia’s biggest economy is debatable. What’s not is that the mainland billionaire emigration trend continues and that their ranks have thinned by more than a third in just the last three years.

The latter dynamic, tracked by research group Hurun, spotlights how the fallout from the last few years of government crackdowns, slowing economic growth, volatile equities and property collapse is catching up with Xi Jinping’s policymakers and complicating their efforts to counter Wall Street worries that China has become “uninvestable.”

To be sure, the “avoid-China” vibe isn’t what it was, say, six months ago. As Nicholas Colas, co-founder of research firm DataTrek, notes, the recent “surprise announcement of aggressive fiscal and monetary policy action is spurring a reappraisal of the view” that Chinese equities are uninvestable.

“China’s leadership has finally acknowledged that the country’s economy needs much more monetary and fiscal stimulus if it is to achieve its growth potential over time,” Colas says.

Billionaire David Tepper has been making his own headlines by declaring it time to buy “everything” in China. And after “running around the world” in recent weeks, Kinger Lau, chief China equity strategist at Goldman Sachs, says that “for some investors who haven’t really looked at China over the past one to two years, certainly, the interest level has picked up a lot”

As Lau tells the South China Morning Post, “I’m not saying everyone is buying. But the level of interest has picked up a lot, very much consistent with the flows and positioning.” He’s among many who now see “upside” for Chinese equities.

Where this leaves China’s remaining billionaires in US dollar terms – Hurun says there are now 753 versus a peak of 1,185 in 2021 – is debatable. What’s clear, though, is that the stakes surrounding next week’s gathering of the standing committee of National People’s Congress are rising.

Rarely has there been a better opportunity for Xi’s inner circle to reassure the billionaire set at home and global funds abroad.

“The announcement of the NPC Standing Committee meeting for November 4-8 reflects Beijing’s strategic approach to the major economic policy U-turn underway,” says economist Diana Choyleva at Enodo Economics.

Choyleva noted that “by scheduling the meeting immediately after the US presidential election on November 5, the Chinese leadership has positioned itself to announce fiscal measures with full knowledge of the electoral outcome, enhancing its ability to manage market expectations and responses effectively.”

Next week’s confab will “allow Chinese policymakers to fine-tune their announcements and potentially adjust the scale or presentation of stimulus measures based on the new geopolitical context,” she says.

Choyleva notes that “a better-coordinated approach to policy announcements could actually enhance market stability. Investors should view the timing as a sign of careful planning rather than delay, particularly given the potential for more comprehensive and strategically calibrated announcements.”

Billionaires and global funds alike are craving a “well-thought-out approach” that “sets the stage for more impactful and sustainable market responses,” Choyleva says. “For investors, this timing and a more coordinated policymaking reduces uncertainty by ensuring that China’s fiscal response will be announced with full knowledge of the US political landscape, potentially leading to more stable and sustained market reactions rather than volatile short-term responses.”

The potential wildcard of a Donald Trump 2.0 presidency would be a game-changer for Asia, starting with a 60% tax on all Chinese goods that would upend Asian growth and supply chains.

Derek Holt, Bank of Nova Scotia’s head of capital markets economics, speaks for many when he warns that “Trump’s plans risk being highly destabilizing to world markets in a much more fractured world.”

Investors everywhere are bracing for a supersized US trade war in the event of a second Trump White House, including Europe. Germany’s recession is already casting a pall over European markets.

“In a worst-case scenario of a full-blown tariff war with retaliation, we estimate potential for a mid to high single-digit drag on European earnings-per-share growth,” says Barclays Plc strategist Emmanuel Cau. A “big chunk” of analysts’ worry more than 10% growth in earnings next year could disappear as trade tensions spike, he notes.

One worry is Trump’s desire to add fiscal stimulus via giant tax cuts into an economy that doesn’t need it. “The US economy doesn’t need pump-priming, it’s in excess demand and will remain there next year,” Holt notes. And while “the US needs to assert control over its borders, Trump’s extreme immigration policies would severely damage the US economy.”

Trump’s desire to weaken the US dollar also would increase inflation risks, complicating hopes the Federal Reserve might cut interest rates. Not that Vice President Kamala Harris has a great track record in global market circles, Holt notes. As a US senator in 2020, Harris was one of only a few lawmakers who voted against a revised US-Mexico-Canada trade agreement.

In Holt’s view, “it’s a matter of picking the one you think will be less damaging. As a professional economist, I have no doubt that this means voting against Donald Trump and the weak self-serving men behind him.”

Yet risks abound as the US national debt tops the US$35 trillion mark. “America’s fiscal position is living on borrowed time and the more damage that’s done now, the higher taxes will go in the future in a potentially more divided and more dangerous world,” Holt explains.

Reassuring China’s billionaires and overseas funds requires bold and transparent action by Xi’s inner circle. 

Earlier this month, Beijing cut borrowing costs, slashed banks’ reserve requirement ratios, reduced mortgage rates and unveiled market-support tools to put a floor under share prices. Beijing is telegraphing bolder fiscal stimulus steps.

Team Xi also raised the loan quota for unfinished housing projects to 4 trillion yuan (US$562 billion), nearly double the previous amount. The bump was less than markets wanted, but pledges of more come has limited big negative market reactions.

The bigger issue, though, is repairing the balance sheets of giant property developers. Success in devising a mechanism to dispose of toxic assets could go a long way toward reassuring investors.

Xi’s inner circle has surely demonstrated it knows what’s needed to turn things around and reassure its capitalist class: a clear strategy to strengthen the finances of good-quality developers; incentivizing mergers and acquisitions; improving capital markets so that consumers stop seeing property as their only investment option; creating social safety nets so that households spend more and save less.

Beijing also must allay concerns that the tech crackdowns that began in late 2020 are over and done with.

Xi has left it to Premier Li Qiang to make the case for a more dynamic, competitive and predictable China. In January, Li said that “choosing investment in the Chinese market is not a risk, but an opportunity.”

He stressed that “investing in China will bring huge returns and a better future” and described CEOs on hand as “participants, witnesses, and beneficiaries of China’s reform and opening up.”

China, Li added, “stands ready to seriously look into and solve the difficulties and problems encountered by foreign enterprises” operating in the country. “We will take active steps to address reasonable concerns of the global business community,” Li said.

The bottom line, says Fred Hu, CEO of Primavera Capital Group, is that if China “really commits to rule of law and market reforms, I do think the confidence will slowly but surely come back, then the animal spirit will be rekindled.”

One reason the clock is ticking in Xi’s reform plans is that the 10-year mark of his “Made in China 2025” scheme is fast approaching.

When he took the reins of power in 2012, Xi promised to let market forces play a “decisive” role in Beijing’s decision-making. In May 2015, Xi unveiled his ambitious plan to morph China into a high-tech Mecca for semiconductors, renewable energy, electric vehicles, biotechnology, aerospace, artificial intelligence, robotics and green infrastructure.

A decade on, progress has been more sporadic than hoped. Team Xi has often proved better at treating the symptoms of China’s economic funk, not the underlying ailment. 

It’s a lesson Japan taught the world: throwing money at an economy traumatized by plunging property values and deflationary pressures won’t work without supply-side moves to repair cracks in the economy.

Late last year, Xi introduced the buzz-phrase “new quality productive forces.” Though somewhat cryptic, Xi’s inner circle has been selling it as the answer to China’s economic future.

China wants to get its consumers to spend more and save less to keep growth near 5% year after year. That means continuing to raise incomes and building more robust social safety nets to encourage spending. It means creating deeper, trusted capital markets so the average Chinese can invest in stocks and bonds — not just real estate.

Beijing’s extreme focus on boosting consumption over the years has proved counterproductive, economists say. It leaves China susceptible to boom-and-bust cycles that require urgent attention at the expense of moving the economy upmarket. China’s heavy reliance on exports leaves the economy vulnerable to Trump-like antics.

There’s no better alternative to accelerating and broadening China’s evolution into a high-tech powerhouse, development experts say. And indications are, this is precisely the pivot Xi and Li are making as 2025 approaches.

At the NPC in March, Xi’s Communist Party said “it’s imperative to boost the endeavors to modernize the industrial system, and accelerate the development of new productive forces.” Billionaires skittish about China’s prospects couldn’t agree more. The days and weeks ahead offer Xi a ready opportunity to do just that.

Follow William Pesek on X at @WilliamPesek

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To challenge China, the next US president should fix trade – Asia Times

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This article was originally published by Pacific Forum. It is republished with permission.

In the September presidential debate, former President Donald Trump and current Vice President Kamala Harris had sharply contrasting views on issues ranging from energy to immigration to policy toward China and the Middle East.

Yet, both agreed that tariffs were useful for US foreign policy.

The debate started with tariffs, and the two candidates went back and forth on the likelihood that the new tariffs would cause inflation. By the end of the debate they returned to their discussion on tariffs, where they disagreed on the sectors where they thought tariffs should be imposed and on which countries should be targeted – but agreed that tariffs are useful.

Regardless of the detrimental consequence of tariffs, including inflation, the candidates emphasized the need to impose them to protect critical sectors and spur domestic manufacturing.

The debate clearly demonstrated the arrival of a new era in the United States, one in which the two parties are recalibrating the balance between national security and economics.

Biden’s trade war and Trump’s

The United States has a growing list of grievances about Beijing’s mercantilist practices. These include

  • widespread market-access restrictions, from equity caps on investment to regulatory harassment;
  • pervasive subsidies directed at national champions that tilt the competitive playing field against foreign firms in China and in third markets; and
  • widespread forced technology transfer and intellectual property theft.

To protect domestic industries vital to national security and incentivize China to change its practices, both the Trump and Biden administrations have imposed tariffs on Chinese products.

In March 2018 President Trump announced the administration would impose a 25% tariff on imported steel and a 10% tariff on imported aluminum. Following the announcement, the Trump administration imposed several rounds of tariffs on steel, aluminum, washing machines, solar panels as well as goods specifically from China, impacting more than $380 billion worth of trade at the time of implementation and amounting to a tax increase of nearly $80 billion.

President Biden said in a 2019 speech: “President Trump may think he’s being tough on China, but all he has delivered is more pain for American farmers, manufacturers, and consumers.”

Yet, the Biden administration has largely upheld existing tariffs, with some exceptions. These include suspending certain tariffs on European Union imports, replacing tariffs with tariff-rate quotas (TRQs) on steel and aluminum from the EU and UK, as well as steel from Japan, and allowing tariffs on washing machines to expire after a two-year extension.

In May 2024, the Biden administration announced additional tariffs on $18 billion of Chinese goods, resulting in a tax increase of $3.6 billion.

Authors’ compilation derived from White House Fact Sheet

President Biden’s trade policy differs from the former president’s in that he seeks to increase production and jobs in a select group of emerging high-tech industries. Additionally, he has tightened trade restrictions with China under the “Small Yard, High Fence” approach, limiting the sale of American technology to Beijing while directing federal subsidies to US manufacturers competing with Chinese manufacturers. Another key difference in President Biden’s trade policy is that his strategy relies on bringing international allies together to counter China through a mix of domestic incentives and potentially coordinated tariffs on Chinese goods.

Weighing Washington’s tariffs on Beijing

Among the reasons countries impose tariffs are:

  • to protect domestic industries vital to national security,
  • to incentivize foreign countries to change their practices, and
  • to raise revenue.

The Trump and Biden administrations both stated they imposed tariffs for the first two reasons.

The Trump administration argued that tariffs were “imposed to encourage China to change its unfair practices” as they “threaten United States companies, workers, and farmers.”

Similarly, after the Biden administration announced tariff hikes on May 14, the White House announced tariff increases were designed “to protect American workers and American companies from China’s unfair trade practices,” including forced technology transfers and theft of intellectual property. The administration also pointed out China’s “growing overcapacity and export surges that threaten to significantly harm American workers, businesses, and communities.”

The biggest problem with the latest round of tariffs imposed in May is that it cannot resolve the problems the Biden administration sought to tackle. Rather than focusing on changing China’s forced technology transfers and protecting intellectual property rights, the tariff increases were more about boosting US industries.

Furthermore, doubts persist about whether tariffs truly benefit the US economy. By raising the cost of parts and materials, tariffs increase consumer prices, and reduce private sector output. This will eventually reduce the return to labor and capital, incentivizing Americans to work less and invest less.

There are numerous studies claiming the negative economic consequences of tariff policy. In August 2019, the Congressional Budget Office (CBO) estimated that the negative GDP effects of recent tariff increases had outweighed the positive ones and were decreasing real output by 0.3%. Meanwhile, the Tax Foundation estimated in July 2023 that the long-run effects would bring GDP down by 0.2% and total employment down by 142,000 jobs.

Another issue with the extended tariff policy is that China has evaded its impact. The US-China trade war and rising risks of investing in China prompted global companies to adopt a “China Plus One” strategy, diversifying production into ASEAN countries. These nations became attractive alternatives to replace China for their relatively young populations, free trade agreements with key players, and prime geographical locations.

However, it wasn’t just American firms relocating to Southeast AsiaChinese manufacturers also shifted operations there. Currently, Chinese firms attempt to bypass tariffs by selling components to manufacturers in ASEAN, where the final goods will not be regulated by the US. In the electric vehicle industry, Chinese companies are rapidly expanding into Southeast Asia, making it difficult to regulate them under current trade policies.

Harming allies

Successive administrations have pursued protectionism, from Trump’s steel and aluminum tariffs to Biden’s Inflation Reduction Act subsidies. Unfortunately, these protectionist policies are also hurting friendly countries. The steel and aluminum tariffs also affect the European Union and Japan, while the subsidies from the Inflation Reduction Act have created challenges for US allies trying to conduct business in the US.

In response, countries like Japan, the EU, Canada, Australia, and others have adopted their own domestic subsidies.

Getting trade policy right

If the new administration aims to achieve the stated goal of changing China’s unfair trading practices, the new president should consider reviewing its trade-distorting policies and reigniting a policy of market-driven economic integration with its allies.

To regulate China’s non-market, export-driven model of growth, the administration should work through international organizations and institutions, just as it did during the recent G7 meeting in Italy. Through channels such as the G7, the WTO and the OECD, the US could build an international coalition demanding that Beijing change direction. If those efforts should prove ineffective, the administration could authorize collective action to rein in China’s exports while simultaneously revitalizing the market economy.

Su Hyun Lee ([email protected]) is a researcher focusing on US-China relations and economic security at the Korea National Diplomatic Academy. Previously, she was a 2021-22 resident Korea Foundation fellow at the Pacific Forum.

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Ishiba’s election setback raises red investor flags over Japan – Asia Times

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Japan’s ruling Liberal Democratic Party (LDP) has suffered a substantial political setback, leaving Prime Minister Shigeru Ishiba with a fractured mandate after failing to secure a majority in the lower house election on October 27. 

For global investors, this outcome adds yet another layer of uncertainty in a world already grappling with economic volatility, inflationary pressures, geopolitical tensions and a highly uncertain US election.

Although Ishiba will likely manage to pull together some form of coalition government, the fragility of such an arrangement casts doubt on Japan’s ability to maintain a coherent economic policy. 

Investors will be particularly cautious as a weakened government often struggles to implement long-term reforms, let alone respond decisively to sudden economic shifts.

The question now is not just whether Ishiba can secure enough support to govern but also whether he can deliver the stability and consistency that investors need to feel confident in Japan’s economic trajectory.

Without a clear majority, the LDP’s agenda for economic reform will be at the mercy of coalition partners with potentially divergent priorities. 

For investors, this spells potential paralysis on issues like tax reform, trade policy and fiscal stimulus—all critical levers that affect business confidence and capital flows.

The country’s aging population and sluggish growth have long posed structural challenges and any sign of policy gridlock could deter foreign investment at a time when Japan needs it most.

The post-election environment likely means more negotiation, more compromise and less ability for Ishiba to push through the bold initiatives that would attract more foreign capital. 

Market participants will be watching closely to see whether the coalition, if and when formed, signals a willingness to tackle these deep-seated issues or merely focuses on short-term political survival.

In either scenario, Ishiba’s government will need to work hard to reassure both domestic and international markets that Japan remains committed to economic stability and growth.

Japan’s hot geopolitical environment, with tensions on the rise with China, adds another layer of urgency. Rising regional tensions—particularly with China—place the country in a critical position within global supply chains. 

Ishiba’s ability to manage these relations while maintaining domestic political harmony will be closely scrutinized by investors, who are weighing the potential for and implications of a more unstable Asia-Pacific region.

A weakened Japanese government unable to present a unified front may find itself vulnerable and weak in diplomatic negotiations with key actors, complicating potential trade and investment deals.

As Japan faces 30 days of coalition negotiations, markets will rightly be on high alert. Ishiba’s capacity to negotiate and his willingness to compromise will set the tone for Japan’s economic outlook.

If he emerges from the process with a reasonably stable coalition, it may be enough to restore investor confidence. 

If the resulting government appears highly fragmented or indecisive, investors may start pricing in increased risk premiums, affecting the yen, equity markets and Japan’s credit ratings.

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Budget 2025: MBAN applauds measures, asks for matching grant to further amplify early-stage funding

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  • Announced measures will strengthen Malaysia’s Startup Ecosystem
  • Matching grant will spur more participation, increase investment pool

Budget 2025: MBAN applauds measures, asks for matching grant to further amplify early-stage fundingThe Malaysian Business Angel Network (MBAN) welcomed the recent Budget 2025 announcement, especially the establishment of a US$229 million (RM1 billion) National Fund-of-Funds allocation under Khazanah, alongside US$14.9 million (RM65 million) for Cradle Fund, describing this “as a pivotal step in empowering startups to expand both regionally and globally.”

Pointing to a recent 500 Global survey that Malaysia has over 30 “A1” grade startups, each generating more than RM5 million in annual revenue with over 20% growth, MBAN highlighted that access to funding remains a critical challenge with studies showing that inadequate financing is among the top three reasons for startup failures.

[RM1 = US$0.229]

It also applauded the new matching investment fund exceeding RM100 million that will be introduced through an equity crowdfunding (ECF) platform to support the growth of local suppliers in the electrical and electronics (E&E) sector, as well as in specialty chemicals and medical devices.

“This initiative aims to provide significant advantages to different areas within the startup ecosystem,” it said. Budget 2025 also allocated RM25 million for creative social entrepreneurs, further strengthening the support for a wide range of entrepreneurial initiatives.

Reinforcing its commitment to nurturing early-stage startups, and acknowledging the support these measures will provide, MBAN nonetheless believes that introducing a matching grant would further amplify early-stage funding.

“This initiative would provide matching capital to angel investors, encouraging more participation and increasing the overall investment pool for startups. We hope the government will consider this proposal, as it could further enhance our ecosystem and support early-stage businesses in their growth journey,” the angel network said.

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Prabowo’s big chance to be a global green leader – Asia Times

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Indonesia entered a bold new era with the October 20 inauguration of President Prabowo Subianto.

The leader’s ascent, rooted in a military career as a special forces commander, embodies a deep commitment to national sovereignty. But in a world where threats are as environmental as they are geopolitical, sovereignty must evolve beyond traditional defense.

So will Prabowo’s Indonesia, the world’s fourth-most populous nation and a vital maritime axis, merely drift with the currents of global change or will it seize the helm and steer toward more assertive environmental leadership and sustainable prosperity?

Indonesia’s vast archipelago loses an estimated US$4 billion annually due to illegal, unreported and unregulated (IUU) fishing, accounting for about 17% of global IUU fishing losses. It’s a crisis that depletes marine biodiversity and jeopardizes the livelihoods of over 2.6 million Indonesians in the fisheries sector.

As the nation’s maritime wealth is stolen, impinged on by illegal fishing boats including from China, the impacts are being felt in terms of economic potential and food security.

To reverse this tide, Indonesia must embrace advanced maritime surveillance and stringent enforcement, as demonstrated by Norway’s success in curbing illegal fishing. By adopting cutting-edge technologies like satellite monitoring and automated identification systems, Indonesia can reclaim control over its rich marine territories.

Strengthening legal frameworks and fostering regional cooperation through ASEAN will further amplify these efforts, positioning Indonesia as a guardian of marine resources and reinforcing sovereignty in a tangible way.

Simultaneously, Indonesia’s pursuit of economic growth through industrial downstreaming has transformed its abundant nickel reserves into a booming export industry. In 2015, Indonesia’s nickel exports were valued at only 45 trillion rupiah (US$2.9 billion).

However, following the implementation of downstream processing policies, the figure surged to 520 trillion rupiah ($33 billion) by 2023. This economic boon, however, has caused significant environmental risks.

Energy-intensive smelting processes, primarily powered by coal, contribute substantially to greenhouse gas emissions, undermining both global climate efforts and Indonesia’s own environmental sustainability.

Here, Indonesia faces a pivotal choice: continue on an environmentally unsustainable path or pivot toward a renewable energy revolution. The country has an estimated 400 gigawatts (GW) of technical potential for renewable-based power generation.

Solar alone could contribute half of this potential, while hydropower and geothermal could deliver up to 75 GW and 29 GW, respectively. Yet, renewables currently account for only 13% of the national energy mix.

By investing in renewable infrastructure and incentivizing clean energy integration in industrial processes, Indonesia could emulate China’s successful model of aligning economic growth with environmental stewardship.

To accelerate this transformation, Indonesia must adopt strategic policies such as feed-in tariffs, tax incentives for renewable projects and the gradual phasing out of fossil fuel subsidies.

To his credit, Subianto has said he plans to launch a green economy fund by selling carbon emission credits from projects such as rainforest preservation, aiming to raise $65 billion by 2028, one of his advisors told Reuters last month.

Establishing green industrial zones powered entirely by renewables could not only reduce carbon emissions but also attract global investors committed to sustainable practices. This shift will require confronting entrenched fossil fuel interests and mobilizing public support—a test of leadership that could ultimately define Prabowo’s legacy.

At the heart of this agenda is the imperative to improve the lives of all Indonesians. Sustainable development must be inclusive, ensuring that economic progress does not come at the expense of environmental integrity or social equity.

Engaging local communities in renewable energy projects can create jobs, reduce energy poverty and stimulate rural economies. Community-based initiatives, such as micro-hydropower plants and solar cooperatives, empower citizens and distribute the benefits of growth more equitably, fostering a sense of ownership and shared prosperity.

Indonesia’s strategic position grants it significant influence over regional stability and environmental stewardship. By championing sustainable practices and leading collaborative efforts to address climate change, Prabowo’s administration can elevate Indonesia’s global standing.

The choices made today are critical—not just for Indonesia but for an entire region grappling with the dual challenges of economic development and environmental degradation. Indonesia’s actions could set a precedent for others, amplifying its impact far beyond its borders.

President Prabowo’s inauguration represents more than a change in leadership; it is an opportunity to redefine Indonesia’s role in the 21st century.

By boldly integrating environmental sustainability with economic ambition, Indonesia can demonstrate that prosperity and ecological responsibility are not opposing forces but rather complementary goals.

The path forward will be challenging, but with decisive action and visionary leadership, Indonesia can transform potential into tangible progress. Prabowo has the opportunity to transform Indonesia into a beacon of sustainable development at the heart of Asia. And the time to act is now.

Setyo Budiantoro is a fellow at the IDEAS Global Program, Massachusetts Institute of Technology (MIT), and Nexus Strategist at The Prakarsa.

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