Local gaming developers call for more support to ease talent and funding crunch

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LABOUR WOES, FUNDING ISSUES

Local game developer The Gentlebros said making any new content or expanding to other markets will require more manpower, which it cannot afford. 

The video game studio, which started in 2015, is behind Cat Quest, an award-winning role-playing game where a player assumes the role of a cat and goes on a quest to save the world.

Mr Desmond Wong, CEO of The Gentlebros, said “the video game industry as a whole is a pretty risky business”. 

“Most developers are probably one or two video games away from closing if a game isn’t successful,” he added. 

“So if you don’t have a hit, if you don’t have success, usually it’s pretty hard to continue running that business.”

In Singapore, it is also tough operating with the rising cost of living and the high cost of hiring staff,” said Mr Wong. 

“We also have a lot of bigger companies… that also are able to pay really well for staff and employees, and that kind of jacks up the cost to hire in Singapore, which makes it doubly hard to grow and expand.”

Mr Wong said smaller studios like his try to offer workers a greater sense of involvement in their products and competitive salaries to make it “a more attractive place to work”. 

Another game maker, Mighty Bear Games, is facing a similar problem. 

Since January this year, the firm has been looking to fill positions for engineers, artists and project managers with more than three years of experience.

However, hiring talent is difficult, as those with the necessary skill sets would rather go to multinational companies (MNCs), said the game developer.

“The Singapore government has a good track record of attracting MNCs to Singapore and they provide them support as well. This makes it very difficult for local studios to compete, because they don’t get access to the same kind of support,” said Mr Fadzuli Said, co-founder and chief technology officer at Mighty Bear Games. 

“On top of that, MNCs prefer to hire experienced talents and forgo training the junior talent pool. This extracts a lot of value from the ecosystem and puts a lot of pressure on smaller companies to do the training.”

There is a need for homegrown studios to be better supported for Singapore to have “a resilient and sustainable gaming economy”, he said. 

“My main concern is the impact on the gaming ecosystem if major MNCs were to decide to withdraw from Singapore.”

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Navigating Commonwealth’s pandemic-induced challenges

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The economic repercussions of the Covid-19 pandemic pose a substantial threat to the progress made in eradicating poverty, outlined by the Sustainable Development Goal 1 (SDG 1) in least developed countries (LDCs) through various action programs.

Current estimates indicate that an additional 35 million people in LDCs are now living in severe poverty, surviving on less than US$1.90 per day as a direct result of the pandemic and efforts to “contain” it. The rising poverty lines in LDCs are exacerbated by heightened food-security threats stemming from the Covid-19 disruptions, especially in the poorer sections of the Commonwealth countries.

The pandemic disproportionately impacted Commonwealth nations, mainly due to factors such as economic vulnerability, heavy reliance on sectors like tourism that were significantly disrupted, agricultural activities being curtailed, and the global recession triggered by the pandemic in addition to the volatile food and energy markets due to ongoing geopolitical conflicts. 

Covid-19 and the SDGs. Source: UNDESA

Many Commonwealth countries, especially the LDCs in the island states and territories, faced severe economic consequences as their economies depended heavily on sectors that suffered during the pandemic.

Additionally, the crisis underscored existing weaknesses and territorial disparities, revealing a need for regional resilience in Commonwealth nations. These factors collectively hampered sustainable development objectives for the Commonwealth, emphasizing the need for strategic interventions to address these vulnerabilities.

The pandemic further disrupted agricultural activities, causing disruptions in food supply networks and increasing prices for staple items such as wheat, poultry and vegetables. This had regressive implications for the sustainable development goal of Zero Hunger (SDG 2).

The Food and Agriculture Organization (FAO), International Fund for Agricultural Development (IFAD), UNICEF, World Food Program (WFP) and World Health Organization (WHO) report that moderate to severe food insecurity is prevalent in countries with low and middle incomes, with a slightly higher prevalence rate among women than men across every continent.

The severe economic impacts of Covid-19 resulted in increased unemployment across virtually all Commonwealth LDCs. Women, constituting a significant portion of the workforce in service industries such as retail and tourism, were disproportionately affected by the restrictions imposed to combat Covid-19.

In the 54 Commonwealth countries, Covid-related lockdowns disproportionately affected informal-sector employees, many of whom lack adequate financial reserves, access to modern technology, and the ability to engage in remote work and are often subject to discrimination. These challenges undermined the progress in achieving Decent Work and Economic Growth (SDG 8) and significantly impact SDG 10, which aims to reduce socio-economic inequalities.

In 2021, the United Nations General Assembly commemorated the 50th anniversary of establishing the LDC category. This milestone followed the conclusion of the Istanbul Program of Action (IPoA) for LDCs, spanning from 2011 to 2020.

It also marked the beginning of a new action plan covering 2022 to 2031, aligning closely with the concluding decade of the 2030 Agenda for Sustainable Development.

The long-term developmental consequences of the pandemic in LDCs, particularly in terms of education, may not be felt for years. Many learners, especially females, in LDCs have experienced delays in their education due to school closures and declining household finances. Limited access to technology for remote education during pandemic-induced lockdowns further exacerbated the impact on students in LDCs.

The impact of Covid-19 on teaching and learning had a class dimension, particularly in LDCs and developing members of the Commonwealth. The success of interventions to “save the school year” depended on parents’ ability to teach their children at home or engage in remote teaching, which, in the absence of necessary digital skills or low literacy and education levels, hindered some parents’ participation.

The varying levels of teachers’ digital skills also negatively affected children’s well-being, hindering progress toward achieving quality education (SDG 4).

Concerning gender equality (SDG 5), the Covid-19 outbreak unfolded in a manner that suggested women were experiencing the pandemic differently from men, despite a lower fatality rate. Overall, vulnerabilities resulting from women’s gender roles and uneven social positions are heightened.

Differing demands emerged within and outside countries, contributing to financial setbacks and profoundly impacting post-pandemic socio-economic equity. This led to significant sociological and psychological challenges, exacerbating existing issues in critical sectors like health, education, gender equality, and poverty.

The challenges underdeveloped countries face, particularly those within the Commonwealth, are significant and require urgent attention. Addressing these challenges necessitates equitable vaccine distribution, strengthened health-care systems, economic recovery measures prioritizing job creation and supporting vulnerable sectors, access to quality education, and gender-responsive policies.

By focusing on these areas, the international community can work toward building a more equitable and resilient post-pandemic world, placing socio-economic stability at the forefront of development efforts.

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Commentary: China seeks to lessen developing countries’ reliance on the US dollar

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CHINA LOOKS TO INCREASE THE POWER OF ITS CURRENCY

Measured against the vast tide of foreign currency transactions undertaken each day, Argentina’s yuan-for-pesos swap in August was a drop in the bucket. However, it should be seen as just the latest of numerous similar deals that Beijing is doing around the world that are designed to increase the power of its currency, known as the RMB in the markets.

The People’s Bank of China has been busily working similar swap arrangements, most notably with Russia in a deliberate strategy to help evade sanctions that have blocked it from tapping its own international reserves held in other entities.

The arrangement with Russia is almost certainly China’s biggest swap line – and it’s growing. Following the withdrawal of Visa and Mastercard, Russian banks currently issue credit and debit cards linked to China’s Union Pay system.

At last count China had signed these deals – more formally known as bilateral currency swap lines (BSLs) – with no less than 41 countries for a total notional value of US$554 billion.

There is nothing anything inherently sinister in a BSL – the Reserve Bank of Australia, for example, signed one with China years ago. The underlying principle behind a BSL is to avoid the kind of liquidity crunches that happened during the COVID-19 pandemic, but also to smooth out trade payments.

Until recently BSLs had no, or little, political motivation. They were purely mutually beneficial, technical arrangements. But that is changing as Beijing aims to erode the hegemony of the dollar in world markets, by default the anchor currency in a turbulent sea. As a well-researched 2022 paper by the Atlantic Council, an American think tank, points out:

“While these BSLs can be used to meet RMB (or other local currency) liquidity needs, the motivation behind these [Chinese] agreements has been to settle bilateral trade and investment transactions in RMB (or other local currencies) in order to gradually reduce the reliance on the US dollar in bilateral transactions both for political reasons and to avoid the volatility of the dollar value of local currencies due to changes in US Fed monetary policy.”

In pursuit of this long-term plan, in quick succession China has created a network of BSLs in the region it intends to dominate. Between South Korea, Singapore, Indonesia, Malaysia and Thailand, China has built up swaps to the tune of US$92 billion that will help spread the yuan throughout the fastest-developing nations in the world.

“The motivation here is to foster local currency settlement arrangements of the bilateral trade of each of these countries with China,” explains the Atlantic Council.

This can be a mutually convenient arrangement, but there is a more subtle purpose and that is to lessen reliance on the greenback by, as with Argentina, providing an alternative settlement currency. That’s why currency traders sometimes refer to the yuan as the “redback”.

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Chinese media in Australia: clickbait or security threat?

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Recent narratives surrounding People’s Republic of China (PRC)’s influence have framed Australia’s Chinese-language media as problematic. Central is anxiety about the Chinese government’s possible use of diasporic Chinese communities and its media to push its influence.

Some claim Chinese-language media outlets in Australia are primarily instruments of the Chinese Communist Party (CCP). WeChat, owned by China’s Tencent, is often blamed for disseminating propaganda to Chinese diasporic communities.

Anxiety about China is neither new nor unique. But little has been done to understand Chinese-language media in Australia. Considering this, a five-year study was undertaken.

This five-year study shows that the Chinese social media platform WeChat — and its Chinese version Weixin — is one of the main news channels used by Chinese Australians. This is highlighted by data from two surveys conducted on Chinese Australians in 2018–19. 

Over 60% of respondents reported they “always” used Chinese social media to access news. WeChat was the most used social media platform, with 92% accessing it hourly or several times daily. A 2021 survey confirms this trend remains largely unchanged.

Among Chinese-language news media outlets in Australia, the most notable are the WeChat Subscription Accounts (WSAs), which are run by Chinese migrant content entrepreneurs to target Chinese migrants living in Australia. WSAs nestle in the Weixin ecosystem (thus subject to rules governing PRC users) and are popular among middle-aged and older users. 

They use revenue-generating mechanisms to maximize clicks and therefore income from advertising. The user-friendly nature of WeChat and the capacity for infinite reproduction of content ensures online outlets can maximize their reach, profit and impact.

WeChat is underscrunity in Australia. Photo: Handout

This produces a paradoxical situation. These media outlets are Australian content providers that serve local markets but are subject to Chinese platform and content regulations as China-registered accounts. It is important to question to what extent this sector is an instrument of Chinese government influence.

This research reveals a more complex picture, which calls into question some statements made about the Chinese-language media’s foreign influence.

While some WeChat accounts promote Chinese government interests, Chinese-language social media platforms are business operations and not funded by any government. Some have tried to produce independent content, but this aspiration is mostly overshadowed by the need to produce clickbait headlines.

Since maximizing traffic, growing followers and securing advertising revenue are paramount, WSAs will provide what their intended users want. The intended users are mostly first-generation Mandarin-speaking migrants more interested in information relevant to their new lives in Australia than news about China. 

Like any international WeChat users, Australian WeChat users often subscribe to multiple WSAs from multiple sources (including those of the PRC official media), or are exposed to such content in their chat groups. They are also exposed to news from Western media outlets via social media platforms beyond WeChat or Xiaohongshu (popular among young people).

Most Australia-focused WSAs refrain from publishing content critical of China not because they hold a strong pro-China stance, but because of their survival imperatives. News editors note they are also wary of publishing politically sensitive issues involving Australia–China relations for fear of being labeled instruments of the CCP.

Producing content attractive to potential readers while ensuring compliance with Tencent’s regulations requires a pragmatic business model. All posts by WSAs are filtered by automated processes — pre-publication algorithmic censorship and post-publication human censorship. 

WSAs are part of a censorship regime that combines high-tech machine-learning technologies with low-tech user reports. Within WeChat, WSAs face the tightest content restrictions because of their easy reach to mass audiences.

All WSAs must comply with Tencent’s service and user agreements, as well as meeting Chinese legal requirements. This includes prohibitions against spreading information that goes against China’s policies on national security, political unity, religion, public assembly or core socialist values.

Another complicating factor is that only media entities with state-authorized news permits in China are allowed to engage in original news reporting. Yet WSAs run by Chinese living overseas and for diasporic markets are subject to a much more flexible regime. They can push original news that focuses on local content and repost original or translated news from mainstream media outlets.

This means WSAs focus mostly on Australia-related news, news about Chinese communities in Australia and lifestyle news. Clickbait titles, sensationalist descriptions and visual appeal all attract more clicks.

The overemphasis on media control overlooks the bigger role WSAs play in the lives of Chinese Australians and undermines the agency of Chinese Australian content entrepreneurs. WSA self-censorship is more a business decision than political coercion. The status of WSAs is confined by a pre-existing technological infrastructure and regulatory framework, not direct intervention by authorities.

The key business strategy has been to publish locally oriented news from multiple outlets, rather than producing original news. In a sample of 87 news posts, 74 were translations of English-language news from Australian media outlets, which were then compiled with reports from other Chinese-language media outlets in Australia.

English-language news is often not just directly translated, but also editorialized. The source texts in English are points of reference to create commentary in Chinese.

Chinese and Australian flags ripple in the wind. Photo: Facebook

For WSA editors, editorialization is not about accuracy – but the cultural relevance of the story they create. There are very few articles directly translated from English. Content is compiled into one article and peppered with commentary from editors.

As anxiety about China grows, so does concern over the content published by Chinese-language media outlets. China’s influence via social media should be addressed with evidence-based research. It is misinformed to interpret an absence of China-critical content as evidence that the Chinese diaspora is acting on behalf of China.

Though many new Chinese migrants are patriotic, the majority of first-generation Chinese Australians are neither active conduits nor passive receivers of propaganda.

First-generation Chinese migrants use a wide range of social media platforms to express an identity of in-betweenness and to cope with the daily challenges of being caught between two increasingly hostile countries.

Wanning Sun is a Professor of Media and Cultural Studies at the University of Technology, Sydney. She also serves as the Deputy Director of the UTS Australia-China Relations Institute.

Haiqing Yu is Professor and ARC Future Fellow in the School of Media and Communication, College of Design and Social Context, RMIT University.

This article was originally published by East Asia Forum and is republished under a Creative Commons license.

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US threatening to hollow out Asia’s chips industry

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Even as they share similar concerns about economic security and resilience, the United States’ trading partners in Asia wonder what Washington’s new embrace of industrial policy means for their own development.

With deep government pockets, a large domestic market and potent research and development capabilities, the United States has the economic power to capture a significant share of global investment in targeted industrial sectors. 

The US turn towards protectionism and its desire to shift trade to “like-minded” friends raise fears that the US market will be closed to Asian exports unless US demands for common standards and supply chain configurations are met.

The CHIPS and Science Act, passed by the US Congress in 2022, illustrates Washington’s “reshoring” intentions and their implications for trading partners. The act is designed to “bring back” domestic semiconductor manufacturing that is presently concentrated in Asia by offering a menu of subsidies, tax credits and domestic content rules that promote onshore research, development and manufacturing. 

Bipartisan support for the funding comes from the centrality of semiconductors to civilian and military technology and concerns over the geopolitical vulnerability caused by fabrication that has moved to mainland China and Taiwan.

The CHIPS Act subsidizes onshore investment in semiconductor fabrication, promising US$39 billion of manufacturing incentives on top of 25% investment tax credits. These incentives seem to already be attracting the major semiconductor fabricators and their suppliers to invest in the United States.

According to the Semiconductor Industry Association, from the CHIPS Act’s introduction in 2020 to June 2023, 67 new projects and expansions of existing US facilities were announced in research and development, intellectual property, chip design, semiconductor fabrication and manufacturing equipment, supplies and materials. 

This new activity contrasts with the steady decline in the US share of global semiconductor manufacturing, which fell from 19% in 2000 to only 12% in 2020.

US CHIPS Act is attracting new investment in America’s laggard chips industry. Image: Twitter

Assessing how many of these projects have been attracted to the United States because of CHIPS Act subsidies is difficult. The allocation of these funds has not occurred yet and some of these investments might have been made regardless. 

But US export controls on advanced chips and the equipment and supplies needed to produce them have undoubtedly affected decisions within the industry because they limit the materials that can be sent to China for manufacturing.

The CHIPS Act explicitly pulls investment from global semiconductor companies to the United States, raising fears that US industrial subsidies will hollow out tech industries in other regions. East and Southeast Asia is home to 10 of the 16 semiconductor exporters and the top six suppliers, accounting for 84% of global exports in 2021.

While US subsidies are clearly a response to this regional concentration, expanding production capacity in the United States will affect the markets that these exporters now serve. On the one hand, US chip-related activities may reduce US chip imports from some Asian suppliers. But they may also expand trade in materials, equipment and more labor-intensive activities, such as testing and packaging.

How the industry and the market for Asian semiconductor-related exporters evolve in the future also depends on the actions of other countries. In response to the CHIPS Act, the European Union, Taiwan, Japan and South Korea have initiated or extended subsidy programs of their own.

In 2022 the EU launched the European Chips Act to ease government funding rules for semiconductor plants. In August 2023, the Taiwan Semiconductor Manufacturing Company (TSMC) announced plans to build a $11 billion chip manufacturing plant in Germany, in a deal that reportedly includes up to $5.5 billion in government subsidies. 

The United Kingdom also announced a 20-year strategy for its domestic semiconductor industry, recognizing its inability to compete with massive US and EU subsidies and focusing on areas where it already has competencies.

This high level of intervention in the industry raises the specter of a coming glut of semiconductors and falling world prices, even as the cost of production by new players is expected to exceed those in more established locations. If such a scenario plays out, governments will be tempted to protect subsidized manufacturers behind import tariffs or offer customer subsidies conditioned on domestic content requirements.

The US turn to such restrictions is evident in the Inflation Reduction Act, passed in August 2022, which provides subsidies to purchasers of electric vehicles assembled in the United States. The threat to Asian suppliers is clear if the subsidy race blocks semiconductor export markets and lowers world prices.

Another concern for Asian suppliers may arise from US demands to reduce Chinese involvement in supply chains. To date, Washington has not made such demands directly, but the CHIPS Act’s investment tax credits are contingent on recipients refraining from significant new investments in manufacturing facilities in China. This indicates that the United States intends to reduce links to the Chinese industry.

The implications of such ambitions are unclear. Silicon is produced by a handful of countries, but the largest supplier by far is China. Pressure to find alternative sources will be a problem throughout the industry.

A man walks past a company logo at the headquarters of the world’s largest semiconductor maker TSMC in Hsinchu, Taiwan, on January 29, 2021. Photo: Asia Times Files / AFP / Sam Yeh

Even if the United States completely removes China from the supply chains that serve domestic chip manufacturers, it will still rely on imports of legacy chips from foreign partners.

Through ongoing consultations, facilitated in part by the Indo-Pacific Economic Framework’s new Supply Chain Council, Asian exporters may be able to moderate negative spillovers from the emerging semiconductor subsidy race and open up space for their participation in the expanding US industry. 

The Council, envisioned to meet at least annually, is tasked with exploring options to diversify concentrated supply sources for sectors and goods of shared interest. Member countries could work to avoid duplication, maintain open trade among members and gradually modify critical material sourcing.

Mary E Lovely is the Anthony M Solomon Senior Fellow at the Peterson Institute for International Economics.

This article was originally published by East Asia Forum and is republished under a Creative Commons license.

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Revolut, Wise, YouTrip: What you need to know about multi-currency e-wallets in Singapore

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Mr Tan Kiang Khiang, course chair for Singapore Polytechnic’s diploma in banking and finance, said this applies to the other digital-only companies as well.

“They have (a) leaner setup than traditional banks. Hence, their cost of operations is lower,” he said.

These companies may also maintain pools of currencies in different countries so that cross-border transactions would not require actual money transfers, where fees and exchange rates would apply, he said.

Dr Wang Xin, an assistant professor from Nanyang Technological University, said offering good exchange rates can be a marketing strategy to attract customers. “Those payment apps earn money from merchants and through investing customer funds, not the currency exchange fees.”

CAN BANKS COMPETE?

Banks can use some of these strategies, and local banks do have multi-currency accounts where foreign transaction fees don’t apply, but the exchange rates are still usually not as good.

For example on Friday (Nov 24), the exchange rate for Singapore dollars to Japanese yen on YouTrip was S$1 to 111.5 yen, which is close to the rate shown on Google. The rate offered by DBS was 110.34 yen.

“While banks can also access these (wholesale currency) markets, their higher overhead and diverse business interests may hinder their ability to negotiate favourable rates as effectively,” said Mr Lee Yen Teik, a senior lecturer of finance at the National University of Singapore (NUS).

“Even without explicit fees, banks may still apply markups to their exchange rates, effectively increasing the cost for customers.”

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Global markets eye BOJ response as inflation quickens

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Japan’s economic landscape is undergoing a subtle shift as core consumer price growth picked up slightly in October, following a brief easing the previous month. 

The countrywide core Consumer Price Index (CPI), which excludes volatile fresh food costs, rose 2.9% year on year in October, government reveals, compared with the 3% expected by economists in a Reuters poll.

Core inflation had slowed to 2.8% in September from 3.1% in August, the first time it was below 3% since August 2022.

This fresh data published on Friday have sparked debate among domestic and international investors about the potential for the Bank of Japan (BOJ) to reconsider its monetary stimulus measures. 

A potential rollback of such policies could send ripples through global markets, impacting various asset classes and reshaping investor sentiment.

The most immediate impact of a BOJ monetary stimulus pullback would likely be felt in currency markets. 

Historically, changes in the BOJ’s policy stance have influenced the value of the Japanese yen. 

A reduction in monetary stimulus might result in a stronger yen, affecting Japan’s export competitiveness. Also, other major currencies, such as the US dollar, would likely experience fluctuations as global investors reassess their currency allocations in response to a strengthening yen.

Equity markets, both in Japan and globally, would react too to the prospect of a BOJ stimulus policy shift. 

Sectors sensitive to interest rates, such as financials and utilities, could experience volatility as investors reassess the impact of changing monetary conditions on corporate earnings. Conversely, export-oriented sectors in Japan may face headwinds due to a potentially stronger yen affecting international competitiveness.

Changes in monetary policy in Japan would also influence commodities and real assets. As investors seek inflation hedges, commodities like precious metals could be expected to experience heightened demand. 

In addition, real assets such as real estate and infrastructure could see increased attention as investors pivot toward tangible assets in response to evolving economic conditions.

In broader terms, the prospect of the BOJ rolling back monetary stimulus introduces an element of uncertainty into global markets, which could potentially impact risk sentiment. 

Investors may reassess their risk exposure, leading to shifts in allocations between risk-on and risk-off assets. Market volatility could increase as participants adjust their investment mix due to changing expectations for Japan’s economic trajectory.

One thing is for sure: The consequences of a BOJ stimulus shift extend well beyond Japan’s borders, making it a focal point for investors worldwide.

Nigel Green is founder and CEO of deVere Group. Follow him on Twitter @nigeljgreen.

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Chula Dean presents CBS as a top business school with Triple Crown Accreditation

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Chula Dean presents CBS as a top business school with Triple Crown Accreditation
Prof. Dr. Wilert Puriwat, Dean of Chulalongkorn Business School

Chulalongkorn University, the perennial favourite among Thai students, proudly houses the Chulalongkorn Business School (CBS). Under the leadership of its current dean, Professor Dr. Wilert Puriwat, an alumnus and visionary, CBS has recently gained global recognition, earning a place among the top 100 business schools accredited by the prestigious Triple Crown Accreditation.

“CBS has received accreditation from EQUIS (EFMD Quality Improvement System) in Europe in 2019, followed by re-accreditation by AACSB (Association to Advance Collegiate Schools of Business) in the United States in 2020. This AACSB accreditation is recognised as the highest standard of excellence in teaching, research, curriculum, and student success. These esteemed achievements, combined with CBS’s existing accreditation from AMBA (Association of MBAs) in the United Kingdom, have earned CBS the distinguished status of Triple Crown Accreditation,” announced Professor Dr. Wilert Puriwat, Dean of CBS.

Formerly known as the Faculty of Commerce and Accountancy for 85 years, CBS now stands tall among the world’s top 100 business schools, embracing the challenges of a shifting academic landscape and aligning with global trends, including the internationally agreed-upon 2030 Agenda and its 17 Sustainable Development Goals (SDGs). As the academic world seeks practical solutions to move forward, Professor Dr. Wilert has committed to nurturing graduates equipped with the essential skills demanded by post-pandemic global job markets, encompassing hard, soft, and technical skills.

In addition to its recognition as Thailand’s premier business school by the QS Ranking, CBS is now setting its sights on a more substantial global presence with a renewed commitment to shaping the future of academia. At the AMBA & BGA Asia Pacific Conference 2023 held in Bangkok from November 15 to 17, 2023, CBS unveiled its innovative vision, “Chulalongkorn Business Social Enterprise,” poised to redefine the educational landscape for the 21st century.

Representing Thailand’s leading university at the AMBA & BGA Asia Pacific Deans and Directors Conference 2023, the CBS Dean contributed insights to the global delegation. CBS leads the charge with its initiative, “Real Applications, Real Learning, Real Business,” embodied by “Chulalongkorn Business Enterprise.” This groundbreaking model allows students, from their first

to fourth years, to gain real-world working experience within authentic work environments and structures. Students pursuing majors in accountancy, finance, marketing, management, data analytics, as well as international programme students, have the opportunity to enrich their learning through practical work experiences within professional office settings. This immersive experience includes career advancement based on performance and achievement, along with mentorship from business educators who have transitioned into business facilitators.

Collaborations between business enterprises, students, alumni, employers, the public and private sectors, and other stakeholders grant CBS students a privileged firsthand experience with Thailand’s leading enterprises, including PTG, AIS, BJC, KBANK, and more. CBS’s rich heritage, combined with Chulalongkorn University’s 14th consecutive year as Thailand’s top-ranked university according to the QS World University Rankings 2023, has contributed to the expansion of partnerships aimed at establishing a dynamic working environment within the CBS building. As CBS students approach graduation, they can proudly include position credentials and achievements on their curriculum vitae or resumes, affirming their readiness for their first job placements with four years of working experience.

Chulalongkorn University’s core values, rooted in societal contributions since its establishment, are exemplified through “Chulalongkorn Business Social Enterprise.” The profits generated by this initiative will be reinvested in society, reflecting a commitment to the “Philanthropic Spirit” that is an inheritance for CBS students, complementing the dynamic academic programs offered.

“Chulalongkorn Business Social Enterprise” is a strategic leap forward, aligning CBS with global educational visions. Over the past decade, CBS has renewed its vision and laid out strategic plans to form worldwide partnerships that facilitate academic exchanges, strengthen business foundations to global standards, expand students’ learning opportunities, and enhance professional development.

CBS’s MBA programme offers postgraduates an Overseas Study Trip component, continuously forging new partnerships with educational institutions and enterprises worldwide. These real-world international business practices provide students with valuable experiences that can be adapted into practical solutions for local enterprises. As Thailand undergoes transformations in various domains, including digital development, environmental sustainability, and industrial reformation, the country is poised for economic recovery  and demographic shifts. The new generation is expected to bring refreshed perspectives to drive the economy forward.

Teaching professionals and staff at CBS are recognised as a priority in achieving educational transformation. They are equipped with an internationally oriented outlook, innovative skills, and an ethical mindset to navigate the rapid changes of the years to come.

In conclusion, Professor Dr. Wilert emphasises that future trends and insights are in constant flux. In navigating this dynamic environment, CBS and academic institutions worldwide should not merely follow future job trends but take proactive steps to reshape academic curricula or establish their own 18th Sustainable Development Goals. These initiatives will provide prospective students with opportunities to thrive amid uncertainty, ensuring that education remains a beacon of progress and adaptability.

Remark: The QS World University Rankings 2023 are based on six weighted indicators, including academic reputation (40%), employer reputation (10%), faculty/student ratio (20%), citations per faculty (20%), international sutdent ratio (5%), and international faculty ratio (5%).

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China’s property loan scheme may or may not work

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The Chinese government is reportedly drafting a white list of around 50 major property developers that will be allowed to borrow from banks more easily to maintain their construction work, a move that has at least temporarily lifted beleaguered property company shares.

The People’s Bank of China (PBoC), the National Administration of Financial Regulation and the Chinese Securities Regulatory Commission met on November 17 and jointly planned to offer new loans to certain property developers in the first quarter of 2024, according to some Chinese media. 

Hong Kong-listed property developers’ shares have surged by 20-30% over the past few days on the news. Longfor Group’s shares have gained 22% this week while Country Garden’s shares have skyrocketed 36%. Sunac China is up 29%. 

Meanwhile, Bloomberg reported on Thursday that China may allow banks to offer unsecured short-term loans, or so-called working capital loans, for the first time ever to some qualified developers.

Citing unnamed sources, the report said the new financing facility would be available for day-to-day operational purposes, helping property developers to free up capital for debt repayment.

Some property analysts said the new bank loan facility will help large property developers improve their cash flow while leaving smaller developers in the cold. They said the Chinese are still reluctant to purchase homes when prices keep falling. 

On November 8, an article with the title “Property prices in Shenzhen are collapsing” was widely circulated online. 

It said the average property price at Huajun Garden in Baoan district has dropped 57% to 1.85 million yuan (US$259,843) per unit from a peak of 4.2 million yuan a few years ago. Property prices have fallen 41% to 2.4 million yuan at Youlin Apartment in Nanshan district and decreased 46% to 3.9 million yuan at Longyueju in Longhua district.

Citing more than 15 cases, the article said property prices in Shenzhen have lost 30-50% in recent years, causing property investors and homebuyers to delay purchases. 

The article was republished by some media platforms in the following days after its publication but then it was inexplicably removed from the Chinese internet. A few netizens continue to circulate the article. 

Online commentators said it is not a surprise that Shenzhen saw a bigger fall in home prices than other Chinese cities as the technology hub’s property markets had grown faster than those in Beijing, Shanghai and Guangdong over the past decade. 

‘Financing black hole’

In July 2020, China’s financial regulators launched what they called “three red lines” that barred highly-geared property developers from receiving loans for expansion.

The negative impact of the policy started showing effects in the second half of 2021 as property giant Evergrande Group failed to pay its contractors, deliver homes and repay its wealth management product buyers.

Earlier this year, China’s property prices rebounded slightly after the country lifted all of its Covid-19 rules and regulations. But they fell again in the second quarter as people saw their income decline amid a slower-than-expected, post-Covid economic recovery. 

Following in the beleaguered footsteps of Evergrande, Country Garden and Sunac Group also failed to repay their offshore bond investors and were forced to file for bankruptcy protection in the United States. 

An Evergrande development in a file photo. Image: Twitter

Some Chinese media outlets speculated that highly indebted property developers, namely Country Garden, Shimao, Sunac and Cifi Group, will be included on the white list but others were skeptical.

“In the end, those with credit risks may not be added to the white list as they have poor reputations, which make it hard for them to sell their properties,” Zhang Zhifeng, a columnist at Guancha.cn, wrote in an article published on Wednesday.

“These companies also have different and complicated outstanding loans. Once they have access to new money, they may use it to repay their old debt, instead of spending it on business operations,” Zhang says. “While their net assets continue to shrink, the new loan policy may create a ‘financing black hole’ for them.”

“Risks in the property markets are growing and have affected some financially healthy private and state-owned property developers,” said Li Yujia, chief researcher at the Guangdong Planning Institute’s residential policy research center. 

“Banks are in general risk averse and avoid offering new loans to indebted property developers, or even call loans from them,” he said. “It’s possible that this trend will lead to systemic risks in the banking sector.”

Huang Wentao, chief economist of CITIC Construction Investment, said it’s likely that the financial regulators will treat healthy and problematic property developers with the same new lending policy, as long as the developers’ financing needs are reasonable. 

He said he expects the government to announce more supportive measures to boost property market sentiment.

Some commentators said although 50 major property developers will be able to take out new loans, 20,000 smaller developers will still suffer amid the property downcycle.

Declining home sales

In October, property sales declined 14.4% year-on-year to 809 billion yuan while property sales volume plummeted 20.3% to 77.73 million square meters, according to the National Bureau of Statistics.

In the first ten months of this year, property sales dropped 4.9% to 9.72 trillion yuan from the same period last year while property sales volume fell 7.8% to 925 million square meters.

For the same period, property investment in China decreased 9.3% to 9.59 trillion yuan. The figure fell only 9.1% year-on-year in the first nine months of this year.

Yan Yuejin, research director of the think tank center of E-house China, said the weakening property investment showed that many property developers are still suffering from cash shortages and high inventories.

Read: China’s economic recovery faces deflationary risks

Follow Jeff Pao on Twitter at @jeffpao3

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MAS to tighten crypto rules for Singapore retail customers

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In: South-East Asia

Service providers should also discourage retail customers from cryptocurrency speculation by not offering any incentives to trade in cryptocurrencies, said MAS.

A retail customer refers to a customer who is not an accredited investor or institutional investor.

“Retail customers often do not have a full picture of the associated risks and may lack the financial resources to withstand the large losses that are typical in cryptocurrency markets,” MAS said.

Additionally, service providers must not provide financing, margin or leverage transactions. They must also limit the value of cryptocurrencies in determining a customer’s net worth.

Crypto service providers must also determine a customer’s risk awareness to access their services.

Service providers must treat all customers as retail customers by default, with the exception of institutional investors.

Only accredited investors, currently defined as someone with at least S$2 million in net personal assets, are exempted from the rules. Crypto assets can form part of this S$2 million, but no more than 50 per cent of the value of a person’s crypto holdings can be used, or up to S$200,000, whichever is lower.

MAS also laid out business conduct rules for crypto service providers. They have to identify, mitigate and clearly disclose potential and actual conflicts of interest, as well as publish policies, procedures and criteria that govern the listing of a DPT.

They must also establish effective policies and procedures to handle customer complaints and resolve disputes.

Regarding technology and cyber risk, MAS will require DPT service providers to maintain high availability and recoverability of their critical systems, in line with current requirements imposed on financial institutions.

“DPT service providers have the obligation to safeguard the interests of consumers who interact with their platforms and use their services,” said Ms Ho Hern Shin, MAS’ Deputy Managing Director (Financial Supervision).

“While these business conduct and consumer access measures can help meet this objective, they cannot insulate customers from losses associated with the inherently speculative and highly risky nature of cryptocurrency trading.

“We urge consumers to remain vigilant and exercise utmost caution when dealing in DPT services, and to not deal with unregulated entities, including those based overseas.”

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