Citi boosts Asia markets team with two hires from JP Morgan | FinanceAsia

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Citi is adding to its Asia markets team with two appointments from JP Morgan who are both set to start at Citi in December. 

Anand Goyal is set to join Citi’s FX team as head of FX institutional sales for Japan, Asia North & Australia and Asia South clusters. Based in Singapore, Goyal (pictured right) will report to Cécile Gambardella, head of sales for markets for Japan, Asia North and Australia clusters and Sam Hewson, global head of FX sales.

Goyal was previously head of macro FX (MacroX) and real money sales for Asia Pacific (Apac) at JP Morgan, where he began his career over 20 years ago, according to his LinkedIn profile. 

In addition, Hooi Wan Ng will join Citi as head of markets for Malaysia. Ng (pictured left) will report to Sue Lee, head of markets for the Asia South cluster and Vikram Singh, Citi country officer and banking head for Malaysia. She was most recently head of local corporate sales and private side sales at JP Morgan, where she has served since 2011.

The upcoming move follows the appointment of Ngo Hong Minh as head of markets and country treasurer for Vietnam who joined Citi in December 2023 from JP Morgan.

Commenting on Goyal’s appointment, Hong Kong-based Gambardella said, “As Apac’s leading markets and FX franchise, we have opportunities for growth across our network. With his extensive experience and deep understanding of regional market trends, we are well positioned to further strengthen and grow our client relationships under Anand’s leadership.”

Commenting on Ng’s appointment, Singh said: “Malaysia is a key market for Citi globally, where we are seeing strong growth across our interconnected businesses. Malaysia is at the forefront of investments, both foreign and domestic, as it continues to benefit from supply chain shifts. I’m confident under Hooi Wan’s leadership Citi’s growth momentum will continue.”

Citi’s Q3 2024 results 

 

Meanwhile, on October 15, Citigroup revealed that its net profit was $3.2 billion in the third quarter 2024, compared to net profit of $3.5 billion in Q3 2023. 

The bank said this was driven by the higher cost of credit, which was  partially offset by the higher revenues and the lower expenses.

Citigroup revenues of $20.3 billion in Q3, an increase of1%, on a reported basis. Excluding divestiture-related impacts, primarily consisting of the approximately $400 million gain from the sale of the Taiwan consumer banking business in the prior-year period, revenues were up 3%. This increase in revenues was driven by growth across all businesses.

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Trump win potential puts Asia on a tariff-ied edge – Asia Times

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Asia is suddenly starting to think about the “what-if” storm that will sweep Donald Trump and his Republican Party to win on November 5th. situations.

Despite the extremely close election in the US, Kamala Harris ‘ Democrats constantly had a statistical advantage. The GOP-controlled White House, Senate, and House of Representatives is currently influencing betting markets, which will force Asia to fight a” Trump business” circumstance in 2025.

Most Asian officials prefer Harris, as she would represent stability from Joe Biden’s administration. Trump’s industry policies alone had transform the world economic system, which is unusual.

The most immediate danger from Tokyo to Jakarta to the rest&nbsp, of export-oriented Asia is Trump’s supersized taxes. The Trump plan for a 60 % tax on China will stifle growth in Asia’s largest economy and stifle supply stores everywhere.

UBS&nbsp, Group thinks that tariff alone will cut China’s annual growth by more than half – chopping 2.5 percentage points off the gross domestic product ( GDP ) of the globe’s top trading nation. Due to weak retail spending, property purchase, and new home sales, China increased just 4.6 % in the third quarter year over year.

Over time, UBS&nbsp, analyst Wang Tao warns of the “risk of various nations raising tariffs on imports from China as well”, kicking off a prospective hands culture of tit-for-tat trade restrictions.

It’s not the end of the world, of training. As Tianchen Xu, senior analyst at The Economist Intelligence Unit, information, China’s full-year GDP target of around 5 % &nbsp, “is presently within approach with more stimulus in the third fourth”.

Despite the magnitude of these” challenges”, Xu notes,” China’s economy is not incurable as some would suggest”. However, Trump’s return to the height of massive trade wars was quickly alter that situation.

Trump has threatened to impose taxes of between 100 % and 20 % on imported cars from Mexico, and he has threatened to increase Biden’s new punitive tariffs on Chinese electric vehicles even further. But how long will it be before Chinese, South Asian and Indian-made cars face comparable Trump levies?

For maneuvers did put Thailand and other Southeast Asian export-oriented economies in harm’s way. Trump 2.0 may aggravate Thailand’s” Detroit of Asia” styles on being the leading China fence for international automakers.

According to Capital Economics ‘ chief economist, Neil Shearing, Asia is anticipating a “universal tariff on all imports to the US” as well as higher Trump taxes.

Additionally, Eastern policymakers must figure out how much more stringent the restrictions on US immigration will cost. Additionally, Trump has promised fresh tax breaks, which will only help the US’s$ 35 trillion national debt grow.

” While it’s reasonable to assume that many of Trump ‘s&nbsp, campaign pledges will be diluted&nbsp, when faced with the reality of government, the common thread running through each of these proposals is that they will end in higher inflation”, Shearing says.

By the middle of 2026, according to Capital Economics, Trump 2.0 plans could increase prices by two percentage points over recent levels. Real GDP may be roughly 0. 75 % lower while the federal funds rate would be roughly 50 basis points higher. ” Used up”, Shearing says,” this would be bad for both US bonds&nbsp, and&nbsp, stocks”.

The comments effects may be felt worldwide. Shearing notes that “emerging markets with higher levels of additional debt or northern banks that are especially vulnerable to movements in the exchange rate – somewhat Turkey, Indonesia, and, given its latest inflation problems, Brazil – would probably dial up the pace of monetary easing.”

Shearing adds that” the risk of higher tariffs, if implemented, could also have a significant impact on countries that trade with the US – Mexico, Korea, Vietnam and, of course, China— especially if Trump imposes a general tariff, which would be much harder to avoid through trans-shipment”.

Trump’s policies may have an impact on emerging markets and investment. ” Tariff concerns have been a drag on EU equities”, says Emmanuel Cau, a strategist at Barclays.

Emre Peker, an analyst at Eurasia Group, notes that&nbsp,” Trump’s threat of at least 60 % tariffs on all Chinese goods and a 10 % levy on US imports from the rest of the world, as well as his potential suspension of China’s most-favored-nation trading status under World Trade Organization rules, would stoke EU-China&nbsp, trade&nbsp, tensions as more Chinese overcapacity flows to Europe. It could also increase the pressure on European industries, which are already struggling against US and Chinese rivals, from metals to automotive, green energy, and technology.

This, Peker adds,” could put pressure on Brussels to be more forward-leaning on its own duty or tariff posture toward Beijing. Furthermore, a&nbsp, Trump&nbsp, administration would likely monitor third countries for possible trans-shipment of Chinese goods and/or circumvention of US tariffs against Chinese overcapacity, threatening additional duties on the EU and others to close any backdoors into the US market”.

One of the bigger wildcards about a Trump presidency is that the US dollar will increase, putting downward pressure on China’s exchange rate. Carie Li, a global market strategist at DBS Bank, says “markets are watching if the Trump trade is heating up and pushing the yuan back to 7.15 against the dollar.”

Some people believe there is a reason to worry about Trump. According to Bilal Hafeez, CEO and head of research at Macro Hive,” The fixed income selloff accompanying rising odds of a Republican sweep could be overdone because Trumponomics is likely to be more rational than the media conveys.”

Hafeez goes on to say that” the impact of the tariffs on inflation has been greatly exaggerated. The US is a domestic-driven economy. Consumer goods imports, excluding cars, represent only about 5 % of total consumer spending, with imports from China accounting for about 40 %”.

A 60 % tariff increase on imports from China and a 10 % tariff increase on imports from other countries could increase consumer price indices by about 150 basis points, according to Hafeez.

However, crypto bets and other assets are all being negatively impacted by Trump’s re-election specter. ” Elections remain hard to call, but if you are long crypto here, you are likely taking a Trump trade”, says Bernstein analyst Gautam Chhugani.

Most troubling about Trump 2.0 is what Asia does n’t know. Imponderables abound. Trump’s first act as president in 2017, remember, was pulling out of the Trans-Pacific Partnership ( TPP ). A President Harris, by sharp contrast, will almost certainly attend next year’s Asia Pacific Economic Cooperation ( APEC ) summit and as she did in Bangkok in 2022 declare the US a” Pacific nation”.

But it’s easy to count the ways Trump might shake up Asia’s 2025 and beyond. He would undoubtedly act to lower the dollar in order to boost US manufacturers ‘ competitiveness, for instance. That could worsen the negative effects China’s current headwinds and undermine confidence in the dollar as a global reserve currency.

Trump will undoubtedly pounce on the Federal Reserve during a second term. Trump will browbeat Fed Chairman Jerome Powell to lower rates in 2019. Trump also considered firing Powell, along with criticizing the Fed on social media. Thus, Powell injected unneeded liquidity into a struggling economy.

Recently, Trump argued that&nbsp,” the president should have at least a say in” Fed interest rate decisions. Meanwhile, the” Project 2025″ scheme that the Heritage Foundation right-wing think tank devised for Trump 2.0 favors meddling with the Fed’s mandate.

Then there’s the default risk. &nbsp, As a businessman in decades past, Trump was a serial bankruptcy filer. Trump made hints about US debt default while campaigning in 2016 and spooked Wall Street.

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

In 2020, the Washington Post reported that Trump officials, looking to punish China, mulled canceling debt held by Beijing. It’s not difficult to comprehend how catastrophic a catastrophe would be because the US national debt is now twice the size of the Chinese GDP.

Trump is not going away, even if Harris wins on November 5. There is only a slim chance that Trump will graciously concede defeat and go back to his golf courses. Trump’s legal team is already working on the election results, which could incite a 2021-like insurrection that will be staged at locations across the country.

Washington’s political polarization could lead to unexpected risks that would cause the laws of financial gravity to resurface. The last insurrection&nbsp, Trump fomented dragged Washington’s credit&nbsp, rating&nbsp, down with it. When&nbsp, Fitch&nbsp, Ratings&nbsp, yanked away Washington’s AAA status last year, it cited the insurrection as a key factor.

As&nbsp, Fitch&nbsp, put it, the chaos on&nbsp, January&nbsp, 6, 2021, was a “reflection of the deterioration in governance” imperiling US finances. The US national debt is now twice the size of&nbsp, China’s GDP, threatening Washington’s last remaining AAA&nbsp, rating&nbsp, from Moody’s Investors Service.

Here, it’s worth noting how a Trump 2.0 presidency would play into Beijing’s hands. Surely, Team Xi is n’t looking forward to Trump’s coming onslaught of tariffs. However, the ways that nations like Japan and Korea could end up as collateral damage may make China appear more appealing as a trading partner.

At the same time, the more Trump 2.0 blocks Asia’s access to US markets, the more governments in Bangkok, Jakarta, Manila, Putrajaya and Singapore might be incentivized to draw closer to Beijing.

Hence Asia’s worries about a “red wave” 11 days from now that makes economic paranoia great again. Policymakers in the region are already weighing how hard their economies would be hit by tariff-sealed US markets and how to respond as the odds of Trump’s return rise.

Follow William Pesek on X at @WilliamPesek

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Thailand’s digital transformer

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CEO Supparat thinks more money is required to realize the nation’s vision of a hub for electric system.

Mr Supparat said Thailand has a huge opportunity to not only contribute domestically, but hopefully to compete at a regional level.
Thailand has a great opportunity to contribute internally, according to Mr. Supparat, and finally to contend at a local level.

As demand rises, the hyperscale data center company ST Telemedia Global Data Centers Thailand (STT GDC Thailand ), led by deputy executive Supparat Sivapetchranat Singhara na Ayutthaya, has taken a major part in the country’s development of digital equipment.

STT GDC has achieved positive growth in earnings before interest, taxes, depreciation and amortisation ( Ebitda ), outpacing the industry average.

Mr. Supparat claimed that the business positions Thailand as a key player in Southeast Asia’s burgeoning artificial intelligence ( AI ) economy.

Broadens Property Ltd. and ST Telemedia Global Data Centres are joint ventures, or STT GDC Thailand.

Mr. Supparat is in charge of all Thai data center business and administrative efforts, including the STT Bangkok 1 lineup hyperscale center in Bangkok.

STT Bangkok 1 you meet the growing need for digital system as a result of the government and business sectors’ increasing media consumption. STT Bangkok 2 may be next to STT Bangkok 1, adding to the 20 megawatts of available light and customized co-location solutions for high-density and AI tasks.

STT Bangkok 3 is presently located in the One Bangkok area, Thailand’s largest mixed-use growth. It may serve as an interconnection hub, offering great carrier density and lower overhead– perfect for enterprises needing quick access to data, applications, and cloud services.

With over 20 years of industry experience, Mr. Supparat is regarded as a vital executive driving change and growth in today’s modern market. He even serves as the director of the Thailand-China Business Council and the vice-chairman of the Thailand Data Center Association, underscoring his considerable influence in the field.

” Over the past two to three years, we’ve concentrated on capturing the hyperscale data center business”, he said. The expansion of the AI business is a important trend that we are currently seeing. Hyperscale data centers that assist this AI economy may be able to offer high-density servers and powerful cooling.

” At STT GDC, we do n’t just offer solutions for cloud service providers, we’re also ready to deliver value-added solutions for AI-related customers through innovative cooling technologies.”

Graphic Processing Units ( GPUs ) are necessary for the AI economy, but they also generate significant heat from high power consumption. Due to the rapid expansion of GPU usage, standard heat cooling in data centers cannot keep up with wet heating systems as a more effective way to manage contemporary AI workloads.

According to Mr. Supparat, Thailand has a substantial opportunity to contribute regionally and compete locally. We see three main areas: the first is a local hotspot with Singapore and Malaysia as key areas, “he said”. The second is Indonesia, with its 283 million people representing large financial potential. The second is Indochina, where Thailand is successfully compete, especially with neighbouring countries like Vietnam, Laos, and Myanmar.

” To capitalise on these possibilities, we may ensure several key factors are in position for Thailand to flourish. Second, we’ve demonstrated that we have the necessary qualifications to draw in the country’s largest cloud services.

Also, STT GDC has effectively supported AI-related buyers, he said.

The firm anticipates growing interest from other clients looking to enter Thailand’s industry as the business matures.

” Our purpose is to place Thailand as a leading online network hub for Indochina, fostering development and innovation”, said Mr Supparat.

He praised the president’s support for the development of modern facilities, but urged it to take into account potential use cases for AI. He cited the potential for AI to enhance the value of the country’s existing electric vehicles ( EVs ) and their infrastructure, particularly by turning them into autonomous vehicles ( AVs ) for the logistics sector.

Mr Supparat said STT GDC takes great pride in its customer-centric technique.

” Our international appearance is bolstered by data centers that span the United Kingdom to Japan,” says the company. The fact that the data center we’re already running has been built from the ground upward is what makes the Thai staff specifically glad,” he said.

We have successfully grown this company from zero to 1 billion ringgit in remarkably short time, surpassing the industry standard, thanks to the knowledge of our table and shareholders for the right schedule.

” Not only have we established a solid income basic, but more important, we have even attracted a diverse range of clients, including Cloud and AI services.”

The company’s expansion has enabled it to surpass the five-year market average in terms of Ebitda by more than four years.

” My staff and I spend about 80 % of our day engaging with customers,” Mr Supparat said”. We are aware of their objectives and definitions of success, and by working closely with them, we aim to increase both the economy and our corporations up.

Supparat Sivapetchranat Singhara na Ayutthaya

CEO of ST Telemedia Global Data Centers ( Thailand )

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Why Modi’s shifting India away from US toward China – Asia Times

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On the heels of the 16th BRICS mountain, India and China have lately come to an agreement to end their protracted border standoff in the northern region of the India-China Himalayan border. Since the death of 20 Indian and an undetermined number of Chinese troops in a high-mountain conflict on June 15, 2020, conflicts have erupted.

After Prime Minister Narendra Modi took office and began boosting ties with the United States, China’s major grievance with India became public. India began putting together contracts that successfully made it a US partner and supporter in South Asia.

China perceived this as part of Washington’s broader” China containment policy”, which was central to former President Barack Obama’s” Pivot to Asia” strategy during his second term. China attempted to exert pressure on India in response, attempting to prevent it from aligning itself very strongly with the US.

On August 29, 2016, India and the US signed an adapted version of the Logistics Exchange Memorandum of Agreement ( LEMOA ). In reply, China ramped up pressure on India, especially at the Doklam tri-junction, where the edges of Bhutan, China and India merge.

In an effort to relieve tensions, India’s then-foreign minister, Subrahmanyam Jaishankar, visited Beijing and assured his Chinese rivals that India was committed to resolving variations through a high-level system.

This led to the first casual conference between Modi and Chinese President Xi Jinping in Wuhan, China, on April 27–28, 2018, where both officials &nbsp, discussed and agreed on several issues to handle their differences.

On the eve of the first 2 2 dialogue between the two nations, India continued to sign another fundamental agreement with the US, the Communications and Information Security Memorandum of Agreement ( CISMOA ).

On October 11-12, 2019, the following casual conference between Modi and Xi took place in Mahabalipuram, Tamil Nadu. The mountain, however, appeared to be a disappointment, possible due to Modi’s determination to align more closely with the US by agreeing to a third basic deal. Xi of India’s purpose to define its relationship with the US may have been Modi’s blunt response during their conversations.

Xi later made this notion during a formal visit to Kathmandu, Nepal, shortly after the Mahabalipuram conference. Xi it warned that “anyone attempting to cut China in any part of the country may end in smashed body and shattered bones,” which could have been interpreted as a covert response to India’s growing ties with the US.

Following the deadly clashes in Galwan on June 15, 2020, the Indian media—often referred to as” Godi media” for its pro-Modi stance—launched an intense anti-China propaganda campaign. India continued to strengthen its ties with the US despite China’s concerns and Modi’s earlier assurances to Xi at the Wuhan summit.

India’s fourth foundational agreement with the US, known as the Basic Exchange and Cooperation Agreement for Geospatial Intelligence ( BECA ), was signed on October 26, 2020, further bolstering its partnership. This was done in response to the General Security of Military Information Agreement ( GSOMIA ) being signed earlier in 2002. By moving forward with these agreements, India formally aligned itself with the US, disregarding Chinese objections.

Modi sounded assured that his enticing relationship with then-US President Donald Trump would give India preferential access to US technology and markets. During his visit to the US, Modi even campaigned for Trump’s re-election at the” Howdy, Modi”! event in Houston, Texas, where he famously cheered,” ‘ Abki Baar, Trump Sarkar’, rang loud and clear”. ( meaning” Next term, Trump’s government” ).

High-ranking US officials at the time frequently predicted that an Indian caravan of American companies would move from China. However, this shift never substantially materialized, and US investment in India remains minimal. Instead, India’s trade dependence on China has increased significantly.

In his second term as prime minister, Modi appoints S. Jaishankar in 2019, hoping that his pro-American stance will encourage investment and technology in the United States as well as secure preferential access to Indian goods in American markets, as China did in the 1990s.

However, treaties and regulations that the US government has in place mostly limit the scope of the US government’s role in its economy to establishing a legal framework for international trade and investment. The host nation is responsible for creating a conducive investment environment, which American investors have long felt is lacking in India. Instead of increased US investment, major American companies like Ford, General Motors and Harley-Davidson exited the Indian market during this period.

Recently, it was hoped that assembling Apple’s iPhones in India would be a successful venture. However, the initiative experienced significant setbacks as a result of a high rejection rate of 50 %, concerns about E coli bacteria contamination, and lower worker productivity than in China. As a result, India’s economic gains from joining the US and becoming a partner did not materialize as planned.

On the geopolitical front, meanwhile, India lost significantly. It once regarded South Asia and the Indian Ocean as its main areas of influence, but none of its neighbors, who have since become US allies, still do so. India has arguably grown closer to the US as a subordinate ally.

This was made clear when the US carried out a Freedom of Navigation Operation ( FONOPS) in the Indian Ocean on April 7, 2021, which sparked a strong backlash in Indian academia and media despite India being a US partner. Additionally, the US has been accused of fueling anti-India sentiment in neighboring countries and covertly helping to oust pro-Indian governments in Sri Lanka, Nepal, and the Maldives.

This made India realize that Washington expects it to renounce its” strategic autonomy” and that its assertions of a regional sphere of influence in South Asia are unacceptable.

Henry Kissinger famously remarked,” It may be dangerous to be America’s enemy, but to be America’s friend is fatal”. This sentiment seems to fit India’s experience perfectly. At regional gatherings, the US continued to press India politically.

Meanwhile, despite India’s rhetorical trade restrictions on Chinese goods, its trade with China continued to grow. India’s increased trade with the US was largely driven by its rising imports from China. This interaction revealed that while China is required by China for its economic growth, China is not required by India.

Ultimately, after four years of experimenting with foreign policy, the Modi government came to understand that China’s cooperation is essential for India’s economic development. The economic adviser to the prime minister claimed that because of its dependence on India and the possibility of growing Chinese investment, China would likely refrain from intervening in border issues.

On the other hand, the West put more pressure on India to oppose Russia following the conflict in Ukraine. India was persuaded to abandon its relationship with Russia by the US, promising in exchange for arms if it continued to purchase Russian oil.

Despite this pressure, India has continued to buy cheap Russian oil and is currently Russia’s largest oil buyer. Russia accounts for approximately 36 % of India’s arms imports. India’s national interests are at odds with the US’s pressure on it to refrain from purchasing arms and oil from Russia.

Recently, the US and Canada have been pressing India to cut off from China and leave the BRICS. Following the murder of Hardeep Singh Nijjar, Canada’s expulsion of Indian diplomats highlighted this effort. In addition, the US Department of Justice has started legal action against an Indian government employee in connection with Gurpatwant Singh Pannun’s alleged attempted murder.

Modi’s allies now recognize that maintaining a relationship with China is crucial for India’s economic development. India would face significant challenges if China placed trade restrictions on it. India can no longer expect the benefits the US provided China in the 1990s.

Additionally, the US-US alliance agreements have proven ineffective in putting pressure on China. Due to India’s protectionist industrial and international trade policies, which favor the return of manufacturing to America, Modi has come to terms with this country’s ability to obtain preferential market access, technology, or investment from the US. Consequently, he has also acknowledged that India can seek technology, investment and market opportunities from China.

Dr. Manmohan Singh’s government was arguably more resilient than any other administration in India to withstand American pressure. Before the 2014 elections, the US exerted significant pressure on India to support its” Pivot to Asia” policy.

However, Singh’s government resisted these demands. When the US detained and conducted Indian diplomat Devyani Khobragade, there was a significant backlash in India. In response, the Singh administration withdrew the privileges of US Ambassador to India, Nancy J Powell. She resigned as ambassador and went through immigration the same way she would any other US citizen upon her return to the US.

In a show of defiance, Delhi Police erected barricades in front of the US Embassy in New Delhi, and associated institutions and organizations were subject to restrictions. Singh continued to oppose becoming a US ally despite losing the subsequent election six months later. He instead chose to temporarily put the border dispute aside in favor of pursuing a policy that promoted economic development through partnerships with China.

Conversely, Modi’s policy aimed at becoming a steadfast ally and partner of the US, which was intended to serve India’s interests, has proven to be fundamentally misguided. India’s national priorities have been squandered and given up by the ongoing border tensions with China. Modi has come to understand the truth in Kissinger’s words about the dangers of being America’s friend.

One of the worst decades in India’s history in terms of international relations was witnessed by the first and second terms of Modi’s administration. India has experimented with international and geopolitical strategies for unprecedented opportunity costs during this time. Modi is shifting from the US to China in his third term, aiming to change course.

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Recognising visionary leadership and lasting impact

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The Bangkok Post once more honors outstanding leadership and innovation in the business industry. The” Bangkok Post CEO of the Year 2024″ prizes are a testament to our unwavering determination to recognizing excellent authority.

This week’s awards highlight key executives and top leaders whose advice has transformed businesses into symbols of achievement, progress, and green growth, continuing our tradition of honoring creative and inspirational leaders who have reshaped industries and sparked beneficial change.

The awards recognize not only commercial accomplishments but also the important contributions and lasting efforts these leaders have made to society and the economy across a range of categories. These distinctions highlight the impact of their perspective and commitment, from striking tactics to revolutionary leadership.

This time, 15 prizes may be presented, each accompanied by a unique and compelling narrative that captures the government’s enthusiasm. In the upcoming weeks, we will share the stories of these outstanding leaders, highlighting their accomplishments and contributions to moving both their communities and community ahead.

To level the CEO of the Year 2024 news, the Bangkok Post is launching a unique collection today, with regular features on the awarded CEOs– showcasing their accomplishments, business strategies, and encouraging visions, both in print and online.

Mr. Bandhit claimed that Thai Oil is on the verge of great success as a result of changing its enterprise to conform to international megatrends.

Mr. Bandhit claimed that Thai Oil is on the verge of great success as a result of changing its enterprise to conform to international megatrends.

Girding for revolution

The chief executive of Thai Oil has prepared the company for upcoming issues while making sure the workforce’s needs are always at the forefront.

As Thailand transitions toward cleaner energy, Bandhit Thamprajamchit, the company’s chief executive and chairman, is aware of new challenges facing the business as it moves ahead.

He embraces technology and development to ensure the bank’s long-term success while helping Thai Oil change its company strategy in response to growing demand for green energy.

Thai Oil is Thailand’s largest plant and distributor of gas merchandise, producing one of the highest sizes of high-value done petroleum products in Asia-Pacific.

Thai Oil embraces change in order to convert prospective crises into opportunities for growth as it deals with physical challenges like the power transition, the push towards sustainability, advances in artificial intelligence technology, and a statistical shift.

Through its slogan” Empowering Human Life through Sustainable Energy and Chemicals,” Mr. Bandhit made clear that the business was ready to address these physical issues.

Thai Oil has set an aspiration portfolio goal for 2030, which involves reducing the percentage of its petroleum business and high-value petroleum products from 70 % to just 45 % of its overall portfolio. By 2030 the remaing 55 % of the overall portfolio would be made up of the company’s petrochemical business and high-value petrochemical products ( 30 % ), new S-Curve business ( 20 % ), and power business ( 5 % ).

3V Plan

Thai Oil uses three” V’s” to accomplish its objectives and be in line with its total vision, according to Mr. Bandhit, who says the company is aiming to generate the business.

The first” V” refers to benefit maximization, which involves the inclusion of the existing business value ring with the achievement of investment options in the downstream chemical industry as well as the development of high-value products to improve the bank’s competitive capabilities.

This is supported by key business systems, including the Clean Fuel Project ( CFP), and through its investment in PT Chandra Asri Petrochemical Tbk, Indonesia’s largest integrated petroleum company.

The minute’ V’ refers to worth enhancement. According to Mr. Bandhit, this method aims to expand the company’s international areas in order to support a variety of Thai Oil Group items.

In addition to its primary sales center in Thailand, Thai Oil may develop into destination countries that have higher rates of economic and population progress, such as Vietnam, Indonesia and, most recently, India.

The third’ V’ refers to value diversification. Under this strategy, the company will expand its investment into new S-curve businesses that relate to the latest mega-trends, he said.

Parmi the new industries targeted are the chemical industry, which inhibits and eliminates harmful germs, surfactants used in cleaning products ( disinfectants and surfactants ), bio-businesses, and new energy industries, including investment and business creation through corporate venture capital.

3C APPROACH

Through the use of three” C’s,” Thai Oil’s business transformation also includes efforts to reduce its environmental impact.

According to Mr. Bandhit, the business is focusing on achieving its sustainability goals, including achieving carbon neutrality by 2050 and a net-zero target by 2060. The interim goal is to reduce greenhouse gas emissions by 15 % by 2035.

The first’ C’ refers to reducing Thai Oil’s existing emissions. The company is attempting to put Thai Oil’s current production processes to the best possible use by studying and developing net-zero pathways. This is a priority.

The company aims to make up for the remaining amount of greenhouse gases in the second” C,” according to Mr. Bandhit. The second” C” involves compensating for residual emissions.

The third ‘C’ refers to controlling future emissions. The company wants to control the amount of greenhouse gases by adjusting its portfolio to include a significant proportion of investment in alternative low-carbon businesses and products, aligning with its V strategy. Mr. Bandhit claimed that Thai Oil is on the verge of great success as a result of changing its enterprise to conform to international megatrends.

The chief executive of Thai Oil has developed all aspects of the business and communicated the messaging needed to support these changes. He places an emphasis on satisfying the needs of employees so they can produce high-quality work and live a good life, as he believes in the message behind the slogan” Your Value, Our Priority,” which will help Thai Oil develop consistently and sustainably to become a 100-year-old organization.

Bandhit Thamprajamchit President and Chief Executive Officer of Thai Oil Public Company Limited

Dr. Tanupol stated that he intends to increase the percentage that the wellness segment contributes to the group's overall revenue going forward.

Dr. Tanupol stated that he intends to increase the percentage that the wellness segment contributes to the group’s overall revenue going forward.

BDMS zeroing in on wellness

Company’s operations aim to generate &nbsp, a larger chunk of overall revenue from its preventive &nbsp, and lifestyle medicine services

The chief executive of Bangkok Dusit Medical Services Plc ( BDMS ) Wellness Clinic and BDMS Wellness Resort, better known as Dr. Amp, is a renowned authority on preventive medicine and lifestyle medicine.

Dr. Tanupol continued his education by studying anti-ageing medicine and becoming certified in the American Board of Anti-Aging and Regenerative Medicine after graduating from Siriraj Hospital’s Faculty of Medicine.

Dr. Tanupol has a lot of knowledge in helping patients adjust their lifestyles, particularly in terms of weight management and the treatment of obesity.

Dr Tanupol is also a best-selling author of several health and wellness books, while his YouTube channel– DrAmp Team– now has more than 1 million subscribers.

” My vision is to improve the quality of life for Thais, and people around the world”, he said.

Dr. Tanupol claimed that as the number of people over 60 increases, the world is becoming an aging society.

In Thailand, this segment accounts for more than 20 % of the population, above the global average of 16-17 %, with people aged 60 and above expected to account for 28 % of the Thai population by 2031.

Another challenge facing human health is the prevalence of non-communicable diseases (NCD ), including strokes, cardiovascular disease, hypertension, lung disease, and obesity.

In 2023, around 77 % of deaths in Thailand were attributed to NCDs, accounting for 380, 000 deaths per year, which is considered to be extremely high.

Thailand also had the highest incidence of obesity in the area.

BDMS reported revenue of over 100 billion baht in the last year, of which only 10 % was made up of the wellness sector, with the rest coming from the treatment of illnesses.

Dr. Tanupol stated that he intends to increase the percentage that the wellness segment contributes to the group’s overall revenue going forward.

Over the past five years, BDMS ‘ revenue from wellness services has increased by 30 % annually, far exceeding the average of 10 % globally.

BDMS Wellness Clinic operates 19 wellness clinics nationwide, including its headquarters in Bangkok, located in Soi Somkid.

The 15-billion-baht Bangkok facility includes a clinic, the Mövenpick BDMS Wellness Resort Bangkok, BDMS Connect Center, which is a meetings facility, along with a private jet service to meet the needs of wealthy clients.

During this year’s second and third quarters, 60 % of the company’s clients were foreigners, mainly from China or the Middle East, who recognise the BDMS brand as the ideal provider of healthcare and wellness services.

Dr. Tanupol noted that the company also employs a number of employees with extensive hospitality industry experience because they are already well-equipped with a service-oriented mindset to provide clients with their services at the clinics.

” My vision is not only driving revenue, but rather to contribute to society, making Thailand one of the world’s leading wellness destinations”, he said.

Thailand is ranked 15th for wellness tourism in 2022, according to the Global Wellness Institute, and BDMS Wellness Clinic wants to improve its position in the world rankings to be among the top five, he said.

He claimed that the group had already made an additional 25 billion dollars to build a wellness complex in Bangkok in an effort to become the “wellness valley of the world.”

It is estimated that the project, which will feature hotels, clinics, and residential units aimed at people who have chosen to adopt a “wellness lifestyle”, will be completed within five years.

Additionally, the business has just introduced the BDMS Wellness Clinic in Laguna Phuket, which is geared toward Russian-born visitors looking for wellness.

BDMS has invested a lot in research and technology in addition to running a leading healthcare group for more than 50 years.

” Today, every aspect of a person’s medical information can be checked”, said Dr Tanupol.

” Medicine today is not a case of “one size fits all.” It’s all about precision and providing more personalised solutions”.

Advanced technology enables in-depth analysis of personal health factors, including aspects pertaining to hormones, andropause, menopause, stress levels, sleep quality, food and diet, and vitamin and mineral levels.

A complete genome genetic test is also available that can help doctors help you plan a healthy lifestyle and determine a person’s risk of developing a disease later.

Tanupol Virunhagarun is the CEO of BDMS Wellness Clinic and BDMS Wellness Resort.

Thapana Sirivadhanabhakdi.

Thapana Sirivadhanabhakdi.

attempting to create a sustainable future

Thapana Sirivadhanabhakdi of ThaiBev is utilizing Sufficiency Economy principles to promote long-term stability and resilience.

Thai Beverage Public Company Limited ( ThaiBev ), led by Thapana Sirivadhanabhakdi, CEO and president, has grown the business into one of the largest beverage conglomerates in Southeast Asia and has also been a proponent of sustainable business practices.

His direction goes beyond profit, highlighting the crucial role that businesses play in promoting social and environmental responsibility.

Under Mr Thapana’s stewardship, ThaiBev has embraced the philosophy of the Sufficiency Economy, as advocated by His Majesty King Bhumibol Adulyadej The Great, King Rama IX.

By using this strategy, Mr. Thapana has demonstrated that sustainability is a potent force for long-term stability and resilience rather than a stopper of growth.

This philosophy, rooted in moderation, responsible consumption, and environmental care, has become a guiding principle for ThaiBev, serving as a case study on how sustainability can be integrated into business operations.

Beyond his own business, Mr. Thapana has collaborated with the Chaipattana Foundation to promote this philosophy as a social foundation for both families and businesses.

For the past five years, Mr Thapana has spearheaded Sustainable Expo ( SX), Asean’s largest sustainability-focused event. The expo brings together government, private sectors, and civil society to foster collaboration on critical sustainability issues, including carbon emission reduction, environmental protection, and the role of technology in achieving these goals.

SX 2024 marked its most successful year, extending the event from seven to ten days, with over 640, 000 participants both online and offline, surpassing the initial target of 500, 000. Of these attendees, more than 227, 000 were young people aged 18-35, highlighting the growing interest in sustainability among the next generation.

The expo featured insights from over 700 speakers representing 270 organisations, all aiming to find practical solutions to global sustainability challenges.

Remarkably, the event generated over 40 million baht in revenue through community product sales and booth exhibitions. All profits went to social organizations and local communities, and ThaiBev kept the costs low for exhibitors, demonstrating the company’s strong commitment to supporting social causes and social good.

The SX initiative sends a clear message that all industries are eager to learn and take steps toward sustainability. Youths ‘ overwhelming participation reflects their growing awareness of the impact of their actions on the future of the planet and their place in it, according to Mr. Thapana, who cited the success of the event.

” Collaboration are crucial for the dimensions of sustainability. We must prioritise the five ‘ P’s– planet, people, prosperity, partnership and peace, to truly drive sustainable progress”, he said.

Mr Thapana credits much of his business acumen to his father, Charoen Sirivadhanabhakdi, the founder of ThaiBev. He learned the importance of” consistency and resilience” in business, especially in times of economic uncertainty.

” If you’re committed to something, you have to continually adjust and solve problems, no matter how small, without giving up”, Mr Thapana shared.

Ethics are also a cornerstone of Mr Thapana’s approach to business. He firmly believes that businesses must collaborate with their partners without petty customers or suppliers.

” Unethical practices destroy sustainability”, he says, underscoring that ethical conduct is key to long-term business success.

Mr Thapana’s success lies in his ability to balance growth with sustainability. He emphasises three key elements– awareness, mindfulness, and adaptability.

First, businesses must stay aware of “disruptions” in the marketplace by understanding consumer behaviour and megatrends. Second, mindfulness and thoughtful decision-making are essential for sustaining both growth and environmental responsibility.

Finally, adaptability is essential to navigating the rapidly evolving global technology and environmental challenges.

Thapana Sirivadhanabhakdi’s leadership reflects a deep commitment to not only building a thriving business but also making a lasting, positive impact on society. The Bangkok Post proudly recognizes him as CEO of the Year in Sustainability Impact Leadership for his remarkable contributions and acknowledges his leadership in shaping a more sustainable future for ThaiBev and society.

Thai Beverage Plc.’s Chief Executive Officer of Thapana SirivadhanabhakdiGroup

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ASEAN states have to ‘work very closely’ to tackle region’s climate change risks, says bloc’s sec-gen

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Crisis RISK REDUCTION FINANCING

Southeast Asia, which is sensitive to rising sea levels, storms, heatwaves and floods, faces difficulties when it comes to financing weather action, said watchers at the SIEW conference. &nbsp,

” If you look at reactive financing, clearly there is significant financing that’s going on, after ( a disaster ) has taken place”, said Dr Ramesh Subramaniam, director general and group chief of the sectors group at the Asian Development Bank ( ADB). &nbsp,

” But the problem that we face is that, in terms of allocating from your macroeconomic resources, a certain percentage of the funds to be ready to face catastrophe, that has been quite, quite slow”, he told CNA.

” And if you look at healthcare industry, I would say it’s about non-existent”.

Next month, the lender approved a new purpose to give climate finance 50 % of its monthly loans by 2030.

Dr. Subramaniam touched on the creation of a loss and damage account during the meeting and mentioned the COP28 climate summit in Dubai last year, stating that it is” a very important first action” in helping less-developed nations.

” We are very positive that there’ll get momentum”, he said, calling for more aid beyond what has been pledged by developed countries. &nbsp,

” Evidently, in terms of funding, the problem that we face is that given the scale of tragedies, no amount of funding is going to be enough”.

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Elon Musk battles Mukesh Ambani over India’s satellite internet

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Reuters Elon Musk, chief executive officer of SpaceX and Tesla, attends the launch of SpaceX's Starlink internet service in Indonesia at a sub district community health centre in Denpasar, Bali, May 19, 2024Reuters

As they prepare to square off in India’s satellite broadband business, Elon Musk and Mukesh Ambani, two of the country’s richest men, are getting more and more competitive.

After India’s government announced last week that satellite spectrum for broadband would be allocated administratively rather than through auction, this battle has only heated up.

Mr. Musk had previously criticized the Mr. Ambani-backed bid type.

Satellite broadband provides internet access somewhere within the spacecraft’s policy.

In remote or rural areas where conventional services like DSL, which uses phone lines to convey data, or cable are absent, are possible. It even helps to bridge the hard-to-reach online break.

Professional satellite internet services are still in development, and India’s telecom regulator has not yet made an announcement regarding spectrum pricing.

However, according to the credit rating agency ICRA, India’s satellite internet users are projected to reach two million by 2025.

The market is competitive, with around half a dozen major athletes, led by Mr Ambani’s Reliance Jio.

Having invested trillions in broadcast auctions to occupy the telecoms industry, Jio has then partnered with Luxembourg-based SES Astra, a top dish operator.

Unlike Mr Musk’s Starlink, which uses low-Earth orbit ( LEO ) satellites positioned between 160 and 1, 000 km from Earth’s surface for faster service, SES operates medium-Earth orbit ( MEO ) satellites at a much higher altitude, offering a more cost-effective system.

Satellite signals are processed into digital data by ground receivers that process them.

Mr Musk’s Starlink has 6,419 satellites in orbit and four million subscribers across 100 countries. He has been aiming to launch services in India since 2021, but regulatory hurdles have caused delays.

If his firm enters India this time, it may increase Prime Minister Narendra Modi’s efforts to recruit foreign investment, some say.

It will also assist his administration’s efforts to burnish its image as pro-business, countering says that its guidelines favour leading American traders like Mr Ambani.

Getty Images Mukesh Ambani, chairman and managing director of Reliance Industries Ltd., is speaking at an event in Mumbai, India, on March 30, 2024. (Getty Images

While auctions have proved lucrative for it in the past, India’s government defends its decision to allocate satellite spectrum administratively this time, claiming it aligns with international norms.

According to Gareth Owen, a systems analyst at Counterpoint Research, satellite spectrum is not commonly distributed by auction because the costs involved could have an impact on the company’s economic justification or investment. In contrast, operational planning may assure range is very distributed among “qualified” people, giving Starlink a chance to enter the race.

Given the absence of explicit legitimate guidelines in India regarding how to provide satellite broadband services to consumers, Mr. Ambani’s Reliance contends that an auction is necessary to ensure fair competition.

Reliance constantly urged the development of a “level playing field between satellite-based and earth access providers” in letters written to the telecoms regulator earlier in October, which the BBC saw.

Additionally, the company claimed that” satellite-based services are no longer limited to places unserved by terrestrial network” and that “recent advances in satellite technology… have considerably blurred the lines between satellite and terrestrial systems.” According to one letter, under India’s telecoms laws, range assignment is done through auctions, with managerial planning only permitted in cases where “public attention, government functions, or technical or financial reasons prevent auctions.”

On X, Mr. Musk remarked that the ITU had long designated the spectrum as” shared spectrum for satellites.” The International Telecommunication Union ( ITU), a UN agency for digital technology, sets global regulations, and India is a member and signatory.

When Reuters news agency reported that Mukesh Ambani was lobbying the government to reconsider its position, Mr Musk responded to a post on X, saying: “I will call [Mr Ambani] and ask if it would not be too much trouble to allow Starlink to compete to provide internet services to the people of India.”

Mr Ambani’s resistance to the administrative pricing method might stem from a strategic advantage, suggests Mr Owen. The tycoon claims that he could be “prepared to outbid Musk” by using an auction to potentially force Starlink out of the Indian market.

Getty Images A Starlink satellite on the roof of a home in Galisteo, New Mexico, US, on Monday, March 18, 2024. Starlink is a satellite-based internet provider owned by SpaceX.Getty Images

However, Mr. Ambani was not the only one to support the auction route.

Sunil Mittal, chairman of Bharti Airtel, has said that companies aiming to serve urban, high-end customers should “take telecom licences and buy spectrum like everyone else”.

Mr Mittal- India’s second-largest wireless operator- along with Mr Ambani, controls 80 % of the country’s telecom market.

According to Mahesh Uppal, a telecommunications expert, this resistance is a “defensive move aimed at raising costs for international players seen as long-term threats.”

” While not immediate competition, satellite technologies are advancing quickly. Telecom companies ]in India ] with large terrestrial businesses fear that satellites could soon become more competitive, challenging their dominance”.

At stake, clearly, is the promise of the vast Indian market. Nearly 40 % of India’s 1.4 billion people still do n’t have internet access, with rural areas making up most of the cases, according to EY-Parthenon, a consulting company.

For context, China is home to almost 1.09 billion internet users, which is almost 340 million more than India’s 751 million, according to DataReportal, which tracks global online trends.

India’s internet adoption rate is still in decline compared to the global average of 66.2 %, but recent studies indicate that the nation is closing the gap.

If priced properly, satellite broadband can help bridge some of this gap, and even help in the internet-of things (IoT), a network that connects everyday objects to the internet, allowing them to talk to each other.

Pricing will be crucial in India, where mobile data is among the cheapest globally – just 12 cents per gigabyte, according to Modi.

” A price war]with Indian operators] is inevitable. Musk has deep pockets. There’s no reason why he cannot offer a year of free services in]some ] places to gain a foothold in the domestic market”, says Prasanto K Roy, a technology analyst.

In Kenya and South Africa, Starlink has already reduced prices.

AFP This picture taken on April 7, 2017 shows a 'Zero Connect' programme van driving on parched earth arriving for a tent school workshop with the children of Indian salt pan workers in the Little Rann of Kutch (LRK) region of Gujarat some 180km west of Ahmedabad. The children of Indian salt pan workers, drawn from the Agariya community in Gujarat state, accompany their parents in the remote and arid Little Rann of Kutch (LRK) region for nearly eight months of the year during the salt farming season. The 'Zero Connect' initiative provides basic education for the children in a joint initiative by the Agaria Heet Rakshak Manch, Digital Empowerment Foundation, Internet Society and Wireless for Communities groups. The initiative runs mobile workshops for the children, providing online access and education materials. -- Sheltered beneath a canvas sheet to escape the blistering desert sun, miles from any roads or power lines, a group of Indian children huddle around a digital tablet and experience the internet for the very first time. The remote wi-fi connection is powered by a van bringing the digital world to around 10,000 families living on the inhospitable salt flats of western Gujarat, where they work eight months a year in extreme conditions. (AFP

It may not be easy though. In a 2023 report, EY-Parthenon noted that Starlink’s higher costs – almost 10 times those of major Indian broadband providers – could make it difficult to compete without government subsidies.

As a result of rising launch and maintenance costs, many more LEO satellites, the kind Starlink operates, are required to provide global coverage.

And some of the concerns of Indian businesspeople may not be valid.

Businesses will never completely transition to satellite unless there is no alternative to a terrestrial system. Terrestrial networks will always be less expensive than satellite, except in thinly populated regions”, says Mr Owen.

Mr Musk could have a first-mover advantage, but” satellite markets are notoriously slow to develop”.

The conflict between two of the richest men in the world has officially begun.

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More than money: Geopolitics drives Saudi sports spending – Asia Times

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There’s a saying in sporting news:” The solution to all your concerns is money”. However, money is not the whole story in the case of Saudi Arabia’s large sports purchase programs during Crown Prince Mohammed bin Salman’s rule.

In a basic feel, there is a clear revenue goal. Saudi Arabia’s sovereign wealth fund, which has assets worth US$ 925 billion in 2023, can increase its fuel revenues to generate even more federal money.

Last season, the government’s Public Investment Fund reported$ 36.8 billion in profits. Since 2016, it has spent$ 51 billion on activities properties.

The point is never to switch bin Salman into the nation’s greatest athletics artist. Instead, it’s more likely that he’s trying to improve Saudi Arabia’s economic and political situation through activities opportunities while ensuring the Saudi regime’s long-term viability.

Beyond Newcastle United, LIV Golf

Development nations frequently announce their appearance on the international level by investing in sports. Alternatively of one-and-done big events, Saudi Arabia is pursuing a more separated and different approach.

The Public Investment Fund’s most well-known opportunities include the order of Newcastle United of the English Premier League in 2021 and the LIV golf journey, which challenged the PGA’s decades-long supremacy of the game.

Beyond sport and sport, Saudi Arabia has also spent startling amounts on lower report investments in esports, wrestling and motorsports. In another activities, like games and netball, the profit goal is less clear.

The logical conclusion is that Saudi Arabia views its sporting opportunities as lost leaders, an unsustainable exercise meant to spur more lucrative exercise elsewhere. International funding pools “allow Saudi Arabia to expand its global reach and influence,” according to the Public Investment Fund’s 2022 monthly statement.

But what does that actually mean?

‘Sportswashing’

Sportswashing, a process of reputation-laundering in an effort to create a cleaner regional graphic, is the traditional term for Saudi Arabia’s technique.

But that explanation does n’t go far enough. The collection of sports opportunities and attributes is only a small component of a larger plan to make Saudi Arabia for a 21st era in which world oil demand is anticipated to decline by the middle of the century and geopolitics will become more complex, according to al Salman.

This is no solution: Saudi Arabia’s standard fantastic strategy — Vision 2030 — envisions the total development of the country’s economy and foreign policy. Saudi Arabia’s sports diplomacy serves as a part of a wider geopolitical plan to make the country for a multipolar society where power is distributed among various states.

Sports diplomacy even restores Saudi government financial and political ties to the West. Bin Salman wants to establish economical and safety partnerships with individuals whose passions correlate with those of the Saudi royal family and the Saudi position, thus ensuring the long-term heath of both.

Saudi Arabia and the West regularly interact with each other, forming an understanding that Riyadh is a “normal” place to conduct business, and that too much fanfare can be posed against the country for its authoritarian policies and poor human rights record. Sports investing, in short, is a Saudi hedge against western abandonment.

The allure of the big payday

The most troubling implication of Saudi sports investment, in the eyes of westerners, is the institutionalization of authoritarian capitalism as a symptom of the emerging international order.

Along with China, Russia, Singapore and others, Saudi Arabia represents an alternative to western democratic capitalism as a pathway to development.

This would surprise a generation of scholars and policymakers, who had previously believed that free markets and free societies were a self-reinforcing phenomenon.

However, doing business with dictators and strongmen has become inevitable and even desirable in some cases given the staying power of authoritarian capitalism. In the sports world, few have resisted the charms of a huge payday.

Democratic backsliding is closely related to authoritarian capitalism. Democracy and freedom are deteriorating all over the world, and the slow-drip normalization of economic relations with authoritarian capitalists is a result of this deterioration.

How to proceed?

So can anything be done? Western states have options, but they’re limited.

After all, both the private and public sectors are eager to pursue Saudi Arabia’s investments.

Officials in the West can object to the awarding of mega events to authoritarian governments. However, if liberal democracies are willing to cover the costs of hosting themselves, which they are increasingly reluctant to do, mewling about problematic hosts means little.

Meanwhile, authoritarians are eager to host large-scale gatherings and acquiesce to their prestige. Currently, for example, Saudi Arabia is the sole bidder for the 2034 FIFA World Cup.

Countries could try enforcing laws to limit the Saudi influence’s reach. National security is frequently used as a pretext to thwart foreign investments in crucial sectors, such as ports and 5G wireless networks.

Saudi plan is working

However, American regulators are unlikely to intervene because golf and video games do not pose a threat to national security. Even less likely is it to be politically influenced by the US Congress or the White House. Saudi Arabia is a crucial component of the United States ‘ strategy to defeat Iran in the Middle East, and arguing too much about human rights or sports investment is not worth the strategic expenditures.

The genius of Saudi Arabia’s enterprise is that it’s power projection by consent. Investors and fans want what bin Salman is selling, governments have limited recourse and critics are left to grasp at standard, out-dated arguments.

For Saudi Arabia, however, its sports charm offensive is about more than money. It’s about making an investment in the kingdom’s future prosperity and security and the Saudi dynasty’s longevity. So far, the plan is working.

At Carleton University, Aaron Ettinger is an associate professor of international relations.

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

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BRICS summit gives IMF gang a run for their money – Asia Times

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It’s going to be a active, anxious and challenge-laden International Monetary Fund meeting in Washington this month.

There, the financial glitterati will fight a bewildering range of hot-button issues ranging from China’s decline to Germany’s crisis to geopolitical risks everywhere to a toss-up US election that’s screening nerves everyday. Put in the IMF’s instructions about a US$ 100 trillion people loan timebomb.

Amazingly, Washington may become hosting this week’s next most effective economic gathering. The more enthralling function will be in Moscow, where the BRICS countries are holding their annual conference.

Some observers predicted that the grouping, which combines Brazil, Russia, India, and South Africa, would eventually have been a sideshow. In 2001, then-Goldman Sachs analyst Jim O’Neill coined the BRIC acronym. In 2010, the four original users added South Africa.

In the decades since, the BRICS seemed to reduce forward thrust. In a 2019 review, Standard &amp, Poor’s said the union had lost impact. &nbsp, Around that same day, O’Neill himself took some photos at his design.

O’Neill recently wrote that” the divergent long-term financial direction of the five states weakens the scientific value of viewing the BRICS as a clear economic grouping.” According to some people, I’ve made jokes about how appropriate it would have been to call the name “IC”&nbsp, given the obvious debacle of the Portuguese and Soviet economies in the last decade since 2011, both of which have obviously performed significantly worse than &nbsp, what the 2050 scenario path laid out.

However, the BRICS have since recovered some of their momentum and are now adding five more users. This year, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates may join the slide.

Mariel Ferragamo, an analyst at the Council on Foreign Relations, information that” the addition of Egypt and Ethiopia will intensify tones from the African continent. Egypt likewise had close business ties with China and India, and social ties&nbsp, with Russia”.

As a fresh BRICS part, &nbsp, Egypt” seeks to&nbsp, get more investment&nbsp, and increase its damaged economy”, Ferragamo information. ” China has long courted Ethiopia, the third-biggest business in sub-Saharan Africa, with&nbsp, billions of dollars of investment&nbsp, to make the region a hub of its Belt and Road Initiative. The addition of Saudi Arabia and the UAE would send in the&nbsp, two biggest economies&nbsp, in the Muslim world and the next and eighth major oil producers internationally”.

The schedule of this growth dovetails with a major BRICS plan: de-dollarization.

The BRICS announced plans to create a “multilateral online lawsuit and pay system” called BRICS Bridge in February, which “would help bridge the gap between the financial markets of BRICS member countries and promote joint trade.”

According to reports, the gathering this week will use a new strategy to make efforts to replace the US dollar more quickly. Udith Sikand, an analyst at Gavekal Dragonomics, notes that one idea is for a gold-backed BRICS monetary unit.

According to Sikand, it seems unlikely that any single currency could get past this compulsion to completely replace the US dollar’s central role.

” A wide range of currencies could, in a more multipolar world, theoretically chip away at their enormous role. The logical consequence of a change would be that while the dollar is still important to global trade and capital flows, its ability to serve as a safe haven when stress is diminished as investors weigh their options from a myriad of alternatives.

The West needs to understand how much it makes the BRICS more comfortable. After all, this opening for the Global South is largely attributable to the Bretton Woods gang messing up their individual economies and, consequently, the global system.

Take the US, which is rife with political chaos at a time when the nation’s debt is over$ 35 trillion. The risks posed by the upcoming&nbsp, November 5 election alone have credit rating companies on edge, particularly Moody’s Investors Service, which is the last to assign Washington a AAA grade.

Germany is flatlining, highlighting headwinds bearing down on the broader continent. As Germany’s Economy Ministry puts it, “economic weakness likely continued in the second half of 2024, before growth momentum gradually increases again next year”, adding that “technical recession” risks abound.

The European Central Bank’s decision to cut rates for the third time this year last week highlights the level of concern.

Allianz Global Investors ‘ global chief investment officer, Michael Krautzberger, claims that” this increase in the speed of rate cuts is justified because the combination of sub-trend euro growth and target inflation supports a much less restrictive monetary policy than is currently the case.”

Krautzberger adds that” there are some hopes that recent Chinese policy support will help trade-sensitive markets like Germany, but we doubt that will be sufficient to offset the region’s weak domestic demand picture.” There is also a chance that trade disputes will return to the policy agenda after the upcoming US elections in November, adding to the risk of negative growth.

Making matters worse, according to the US and China’s combined borrowing patterns, public debt levels are projected to reach$ 100 trillion this year.

” Our forecasts point to an unforgiving combination of low growth and high debt – a difficult future”, says IMF managing director&nbsp, Kristalina Georgieva. ” Governments must work to reduce debt and rebuild buffers for the upcoming shock, which will undoubtedly occur, and perhaps sooner than we anticipate.”

Such unthinkable debt levels pose a serious and immediate threat to the world financial system. In a recent report, IMF analysts wrote that “higher debt levels and uncertainty surrounding fiscal policy in systemically important countries, such as China and the United States, can lead to significant spillovers in the form of higher borrowing costs and debt-related risks in other economies.”

These spillovers could make monetary policy decisions in both Asia and the world more difficult.

Officials from the Bank of Japan are declaring their intention to keep raising rates in Tokyo. Yet that’s despite data showing renewed weakness in retail sales, exports, industrial production and private machinery orders. and concerns among ministry of finance officials about the potential return of deflationary forces in the months to come.

Even though inflation is easing in Japan,” the central bank has made clear that it will raise interest rates”, says Danny Kim, an economist at Moody’s Analytics. ” At best, this will slow growth. At worst, it could trigger a wider economic decline”.

All of this raises the question of whether the world’s top economies are complacent about potential dangers. &nbsp,

As officials arrive in Washington, there’s considerable relief that the US has n’t experienced the recession that the vast majority of economists predicted. Or that China’s downshift had n’t pushed mainland growth too far below this year’s 5 % target.

However, there is reason to believe that this is the last sigh before the storm. The geopolitical path is as dangerous as they can get. Middle East tensions are rising as Russia’s war against Ukraine drags on, aside from the ominous debt milestone that the IMF has flagged. And then there’s the return of the” Trump trade”.

Polls indicate a close race between Kamala Harris and former US President Trump. The betting markets, though, suggest Trump might prevail. If so, Asia could quickly find itself in harm’s way.

Trump’s threat to slap 60 % tariffs on all Chinese goods is just the beginning. Many people predict that a Trump 2.0 administration will impose much higher taxes and trade restrictions, wreaking havoc on Asia in 2025.

Even if Trump loses to Harris, he’s hardly going to accept defeat and move on peacefully. Many people are already concerned that their supporters may launch an attack on the US capital to protest his demise because the election was stolen. That’s likely to imperil Washington’s credit rating anew and spook investors pushing Wall Street stocks to all-time highs.

The fallout from the Trump-inspired January 6, 2021 insurrection was among the reasons Fitch Ratings revoked its AAA rating on US debt, joining Standard &amp, Poor’s. The question now is whether Moody’s downgrades the US, too.

This uncertainty favors the BRICS. Southwest Asia is also clearly orienting its attention toward the BRICS countries. &nbsp, All this is a global game-changer that few in the West saw coming.

Earlier this year, Malaysia detailed its ambitions to join the intergovernmental organization. Thailand and Vietnam are also interested in joining the Association of Southeast Asian Nations, which is a group of nations. In Indonesia, an increasing number of lawmakers are BRICS curious, too.

Joe Biden, the president of the United States, may be dealt a particularly bad blow by Southeast Asia’s involvement. Since 2021, a regional bulwark has been a hallmark of the Biden era in opposition to China’s growing influence and attempts to replace the US dollar in trade and finance.

The BRICS phenomenon demonstrates a growing stutter in relations between the US and many ASEAN members. This, at a time when&nbsp, Saudi Arabia&nbsp, is looking to phase out the “petrodollar”. As China, Russia, and Iran square off against old alliances, Riyadh is making more efforts to de-dollarize.

” A gradual democratization of the global financial landscape may be underway, giving way to a world in which more local currencies can be used for international transactions”, says analyst&nbsp, Hung Tran at the Atlantic Council’s Geoeconomics Center.

” In&nbsp, such a world, the dollar would remain prominent but without its outsized clout, complemented by currencies such as the Chinese renminbi, the euro, and the Japanese yen in a way that’s commensurate with the international footprint of their economies”, Tran says.

According to Tran, “how Saudi Arabia approaches the petrodollar continues to be a significant predictor of the financial future as its creation occurred fifty years ago.”

This week in Moscow, that potential future is on full display. Officials in Washington ignore those machinations at their own risk, 800 kilometers away.

Follow William Pesek on X using the hashtag# WilliamPesek

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