What to expect next out of suddenly unhinged South Korea – Asia Times

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Yoon Suk Yeol, the president of South Korea, declared martial law on Tuesday evening, sending ripples through the earth.

Yoon’s competitors in the National Assembly soon gathered at the government to protest the order. This caused a serious conflict in which soldiers took command of the structure.

However, in the early time of Wednesday, adequate numbers of South Vietnamese legislators gained access to the room. Of the 300 people, 190 made it in, which is far more than the 150 needed for the voting to take place. They overwhelmingly voted down the government’s purchase at around 1 am.

However, around the government, Yoon’s competitors continued to accumulate in a tense standoff with defense.

By about 4:30 am, Yoon had formally acknowledged that his effort had failed and that the military forces had already left. The order may been rescinded. It put an end to a president-to-the-National Assembly’s brief but significant constitutional issue.

Important political freedoms are suspended by military law, which enables the military to training more authority in times of war or serious threats to public safety.

A order by Yoon’s just empowered martial law chief, Army Chief of Staff General Park An-su, proclaimed:

]… ] all political activities, including those related to the National Assembly, regional assemblies, political parties, the forming of political organisations, rallies and protests are banned.

Additionally, this martial law decree placed severe restrictions on the press’s liberty and put an end to an ongoing strike by young South Korean doctors.

But, little immediate attempt was made to adopt the order. As a result, criticism activity was frequently reported in real-time.

Why was military laws declared?

Yoon defended the military law by accusing his domestic political rivals of “anti-state actions plotting revolt.”

He asserts that he was shielding “pro North Korean forces” from the law. This is a facetious term that some South Korean conservatives often use against their liberal foes.

Decades of domestic political conflict between the North Korean head and the opposition-dominated National Assembly provide abroader perspective for this decision.

Yoon cited his detractors ‘ repeated attempts to remove senior members of his leadership and their blocking of budget policy as additional justification for martial law.

Who is South Korea’s leader?

In 2022, Yoon won with a extremely unpopular lot. He’s immediately seen a range of social corruption scandals, further depleting his help.

According to recent polls, he only receives about 25 % of the Asian public’s opinion.

After a number of embarrassing scandals involving alleged fraud, tensions rose especially between Yoon’s woman and South Korea’s first woman, Kim Keon-hee, who had formally apologized for their behavior in early November.

Legacy of dictatorship

Senate is undoubtedly in order, especially if South Koreans turn out in large quantities over the upcoming trip to demand that Yoon’s term be overthrown.

South Korea has made significant progress in political merger since the change to democratic rule in 1987, with a solid and engaged civil society.

At the same time, there is a lengthy history of scandal, impeachment and yet reported criminality among Korea’s democratically elected president.

Most recently in 2017, original President Park Geun-hye’s term in office ended shortly after public demonstrations and prosecution around an influence-peddling incident.

In 2018, Park was given a lengthy prison sentence for relevant acts. In 2021, she received a pardon from her leader.

On the one hand, the effective antagonism to Yoon’s military laws decree has demonstrated the political resilience of South Korea’s organizations and social traditions.

Critics of military rules included the mind of Yoon’s conservative People Power Party, Han Dong-hoon, who denounced the government’s order as “wrong” and promised he do” prevent it with the people”.

But for some of Yoon’s competitors, his strength capture was an all too common reminder of the region’s mid-20th-century tradition of conservative, military-led law.

What will happen next?

In South Korea’s current democratic period, military legislation was first enacted.

The country’s money and marketplaces may experience immediate financial damage, but its hard-won reputation as a stable and mature democracy may suffer a significant blow.

While the immediate constitutional crises has then receded, the political problems remains. Issues have now turned to Yoon’s potential.

The president’s main opposition party has vowed to launch a proper prosecution investigation unless he resigns right away.

Alexander M Hynd is a doctoral study fellow, UNSW Sydney

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

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Trump tariffs potential death knell for Japan automakers – Asia Times

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Somewhere in the world, probably Beirut, Carlos Ghosn is having a severe case of sadness.

The Nissan-Motor-CEO-turned-international-fugitive is seeing stock plunge 47 % during the recent CEO’s five-year career. Makoto Uchida also lost more than 100 percent details to Japan’s Topix score. He’s then Nissan’s worst-performing president since at least 1974.

But Nissan’s slip isn’t happening in a suction, as Japan’s another engine giants can speak.

In 2019, the business was still reeling from Ghos n’s arrest on financial misconduct charges and escape. Nissan and its Japanese competitors are now facing a worldwide market shakeup caused by the growth of China.

Or, as Michael Dunne, CEO of automobile industry advice ZoZoGo, calls it, the “great China vehicle blitzkrieg”. According to Dunne,” the unexpected flood of Chinese cars is upending years of steady market securities and profits.”

As Donald Trump enters the White House to start off trade war, China Inc. is becoming even more of a goal. Chinese manufacturers are under increasing pressure due to a precise explosion in competition from China, particularly in the field of energy vehicles.

The Volt manufacturing acceleration process has been at best slower. Has Japan Inc. CEOs ‘ pressure on the nation’s long-dominant hybrid car market shifted to EVs and loosened their hand?

” China may export a spectacular 6 million vehicles to more than one hundred countries this month, cementing its status as the country’s No 1 producer”, Dunne says.

The typical price of those made-in-China cars: US$ 19, 000. ” That’s less than half the regular price of a new vehicle in America and Europe”, Dunne adds. Customers in all time zones are switching to new Chery, MG, Changan, and BYD models instead of Chevys, VWs, and Hondas.

If not for Trump’s returning to the scene 48 time from now, Chinese EVs eating Japan’s meal would be problems much. The US president-elect has hit the ground running by enacting transfer taxes on both China and Canada.

Trump’s inclusion of neighbors in his price list is shocking Tokyo and Seoul. One big concern is Trump’s plan to impose 100 % levies on vehicles made in Mexico ( and, presumably, on Canada too ).

As Trump results to business, his “revenge” journey is sure to start in Asia. That has leaders at Toyota, Honda, Nissan, Hyundai, Kia and some bracing to levies of similar scale heading Asia’s manner. Auto-production-heavy markets like Thailand also may be in harm’s way as global supply chains go astray.

Tesla businessman Elon Musk has Trump’s hearing as the next trade war develops, thinning the story. Earlier this year, Musk warned that Chinese Vehicle areas are destined to have” important” achievement outside China.

Musk claimed in January that” the Chinese auto companies are the most competitive car companies in the world.” According to the statement,” I believe they will have a major achievement outside of China depending on the establishment of taxes or trade barriers.”

But, he added, “frankly, I think, if there are no industry restrictions established, they will very much dismantle most various companies in the world”.

In the months that followed, Musk has attempted to refute those sentiments. Apparently, someone in the Shanghai place reminded Musk of Tesla’s sprawling manufacturing presence there, where he built his first outside” Plant”.

Musk’s close relationship with Trump — including a position as authorities efficiency advisor— muddies the issue. How Musk manages to compromise his position in Trump World with an economy that Tesla heavily relies on, one that Tesla relies on.

Some argue that Musk’s level – and position in Trump World – may help Tesla engage in China via-a-vis contemporaries.

Tesla “has the scale and scope that are unmatched in the EV industry, and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled with likely higher China tariffs that will continue to dethrone cheaper Chinese EV players ( BYD, Nio, etc. )” from flooding the U. S. business over the forthcoming times”, says Dan Ives, an analyst at Wedbush Securities.

There is nothing scientific about where all this leads, though, in Japan, where the country’s economy is still reeling from decades of excessive monetary easing.

Japanese Prime Minister Shigeru Ishiba has been frantically trying to meet with Trump since his shock victory on November 5. But to no cost. So much, Trump World has refused to grant Ishiba a Mar-a-Lago market.

Ishiba hopes that by forming a specific relationship with Trump, Japan Inc. will suffer less collateral harm. It’s what former Prime Minister Shinzo Abe did during Trump’s 2017-2021 president.

Abe became the first earth president to jump to Trump Tower in New York to love the ring in November 2016, just weeks after Trump’s victory in the election. But other than garnered worldwide headlines, the prank did little good.

Trump continued to withdraw from the Trans-Pacific Partnership, which was started by the US. Abe had pressed Trump to be on the TPP, which was the foundation of Tokyo’s efforts to encircle China.

Nor did Abe’s beauty offensive win Tokyo a slip on the Trump 1.0 taxes. Trump, however, palled around with Kim Jong Un in way that upheld North Korea’s brutal government at the cost of Japan’s national security. Trump humiliated Abe by revealing that the Chinese president had nominated him for the Nobel Peace Prize, adding insult to injury.

But there’s another reason Ishiba may perform Trump 2.0 quite carefully: the interpersonal US leader’s wish for a “grand bargain” with Xi.

Trump government takes, including Scott Bessent as US Treasury director, argue that this is the end game. Today’s risks of large tariffs, they argue, are only a negotiating strategy aimed at prodding Beijing to flex to US needs.

Japan’s issue is that it would be looking into any diplomatic Group of Two trade offer from the outside. Chinese EV industry would be the main beneficiaries of any such agreement.

That, of course, would be the same of President Joe Biden’s plan of shutting Chinese Vehicles out of the US business with 100 % fees.

Trump claimed on the campaign trail that “large companies are only being built across the border in Mexico” by China to make vehicles to offer in the US market. Our folks will man those flowers, and those plants will be constructed in the United States.

The vegetables Trump may employ to encourage China to construct US factories remain ambiguous. But the stick if China Inc doesn’t post could be 200 % tariffs, Trump has warned.

Where does this leave South Korea and Japan, in my opinion?

Now, it’s clear Foreign EV makers are on a break. By the time they were a month quick, BYD, Leapmotor, and Xiaomi already had their yearly delivery goals crossed. What’s more, BYD, Xpeng and Zeekr saw record quarterly sales in November.

BYD, for instance, delivered 504, 003 passenger cars in November and 500, 526 in October. Its full-year sales for passenger vehicles presently hit 3, 740, 930, exceeding the week’s 3.6 million goal.

Leapmotor, which is backed by Stellantis, saw 40, 169 deliveries in November, up 5.2 % from October and a whopping 117 % year on year. As competition in China heats up, Tesla has had to slash Model Y prices by 10, 000 yuan ( US$ 1, 371 ) to 239, 900 yuan ( US$ 32, 000 ).

At the moment, Chinese automakers are playing catch-up in the EV area and boosting purchases. That’s regardless of what becomes of Trump’s business conflict or his pledge to eliminate Biden’s$ 7, 500 return on EV payments.

Toyota, for instance, is building a great power shop in the US state of North Carolina”. We plan for the long term, but political considerations aren’t a factor in how we approach product creation or investment opportunities,” says David Christ, vice president of Toyota North America.

Yet Japan Inc. is bleeding global market share. A new analysis by Bloomberg economists found that Japanese automakers saw the biggest market share losses of any peers between 2019 and 2024 in China, Indonesia, Malaysia, Singapore and Thailand.

How China is gaining from those losses can be written in bold font between the lines. It’s likely they’ll strengthen that push,” says Bloomberg Intelligence senior auto analyst Tatsuo Yoshida of China’s ambitions.

Even the sales and output of the much-vaunted Toyota appears&nbsp, to have plateaued. All six of the main Japanese automakers that Bloomberg Intelligence has tracked have consistently ceded ground. In Thailand and in Singapore, where Japanese carmakers long enjoyed strong customer loyalty, market shares are down to 35 % from 50%-plus in 2019.

In 2023, China dethroned Japan to become the world’s top automaker. The devastating blow to Japan’s collective psyche was the worst since China overtook Japan in terms of GDP in 2011.

However, the ways that Chinese automakers managed to capture Japan’s nap continue to surprise economic historians. It’s not just autos. Efforts to generate more tech” unicorns,” for example, didn’t gain the traction Japan’s government expected. Even today, Japan trails Indonesia in the race to generate US$ 1 billion-plus valuation startups.

As the EV market expanded, Japan’s persistent obsession with hybrid vehicles reflects this same pattern. Granted, the slowdown in US demand for EVs has many auto analysts believing Japan’s dual-track approach has merit. At least temporarily.

Yet Toyota officials and their Japanese counterparts are in fact aware of their errors when they dismiss the EV future as being in view. Toyota is catching up on older models. Japan’s top automaker is tripling EV output as it chases China’s BYD, which in 2023 surpassed Musk’s Tesla.

The question, of course, is whether it may already be too late as Tesla, Detroit, Germany and China beat Toyota to the market”. No one,” says advisory ZoZoGo’s Dunne”, can match BYD on price. Period. Boardrooms in America, Europe, Korea and Japan are in a state of shock.”

Of course, Trump’s trade war could complicate the outlook considerably. This is especially important because no one is sure whether Trump will strike a deal with Xi’s China or instead impose tariffs.

For now, Cigdem Cerit, an analyst at Fitch Ratings, sees a” neutral outlook for the global automotive sector, “reflecting” our expectation of a stable production environment, with global light vehicle sales projected to increase by about 2 %.”

But Cerit adds”, the growth will be unevenly distributed across regions, as European and Chinese markets face macroeconomic challenges. We expect pricing to remain subdued due to escalating competition.”

For Japanese chieftains like Nissan’s Uchida to those at Toyota, the threat from China’s auto industry isn’t to be taken lightly. Nor does the upcoming US government work with China Inc. or support its replacement.

Follow William Pesek on X at @WilliamPesek

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Equinix energises digital landscape in Singapore with additional 58.5 MWp of solar energy 

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  • Agreement help Singapore’s move towards a brighter economy
  • Equinix will receive 133.5 MW of solar energy from Sembcorp Power.

Equinix energises digital landscape in Singapore with additional 58.5 MWp of solar energy 

The digital infrastructure company® Equinix, Inc., has signed its second renewable energy power purchase agreement ( PPA ) with Sembcorp Power Pte Ltd, a wholly owned subsidiary of Sembcorp Industries, in an effort to help reduce the effects of global climate change. Sembcorp Power announced in a statement that it will support Equinix’s expanding data center portfolio with a maximum of 133.5 Megawatts ( MWp ) of renewable energy with this second PPA.

According to the report, Equinix’s continuing investment underscores its commitment to providing modern facilities for economic growth while reducing carbon emissions in accordance with the Singapore Green Plan 2030.

Beginning in 2029, this minute PPA will allow Equinix to generate a maximum capacity of 58.5 MWp of solar power generated by JTC’s qualities on Jurong Island. This renewable energy source may significantly reduce carbon emissions by 30 to 30 to 200 tonnes annually, making that number comparable to the power of over 17, 200 four-room HDB condos. This PPA may allow fresh energy to help the country’s transition to a green economy by aligning with the Singapore government’s commitment to make Jurong Island a sustainable energy and substances park.

Lee May Leong, Managing Director, Singapore, Equinix, said:” Data centres serve as the foundation of the online business, but the increasing power demands of AI are impacting national energy constraints and emissions targets. Equinix is positively addressing these issues by putting forth energy-saving best practices and procurement strategies that are in line with our climate commitments. We’re delighted to announce our next PPA in Singapore, which demonstrates our ongoing commitment to supporting our customers ‘ efforts to advance their businesses and achieve conservation goals.

Meanwhile, Vickrem Vijayan, Head of Energy Commercial ( Singapore ), Sembcorp, said:” We are pleased to deepen our ongoing partnership with Equinix, supporting them in advancing their sustainability goals and helping to shape a more sustainable digital economy. We look forward to future partnerships that will advance Singapore’s 2030 Green Plan and promote the change of strength.

Highlights/Key Information:

  • The houses of five JTC houses, including Jurong Rock Caverns ‘ above-ground services and Jurong Island Checkpoint, will be covered by this thermal deployment on Jurong Island, which will also include 60 hectares of vacant land.
  • Equinix and Sembcorp signed their first long-term PPA in Singapore in April 2024, which is anticipated to produce about 75 MWp of renewable energy starting on January 1, 2027.
  • Since 2015, Equinix has executed 25 PPAs worldwide, including arrangements in Australia, India, and Singapore in 2024. These agreements are expected to contribute approximately 3, 250, 000 megawatt hours ( MWh ) of renewable energy annually to local grids across the US, Australia, France, Finland, India, Italy, Portugal, Spain, Sweden, and Singapore once operational.
  • In 2023, Equinix achieved 96 % solar cover across its international operations. In Asia-Pacific, Equinix achieved 100 % renewable coverage in China, Hong Kong, India, Japan, Korea, and Singapore markets in 2023.

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Tariffs have two very different meanings for Trump – Asia Times

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Donald Trump has not adhered to agreement. But some people were surprised last week when he threatened to attack China, Mexico, and Canada over what his trade policy would be when he took office on January 20. Presidents-elect are not supposed to announce policies in advance, but he does n’t care about such niceties.

Strangely enough, but, his statement was really very soothing, perhaps more convincing than he meant it to be.

How could it be regarded as comforting to know that the first day of his presidency would threaten to impose 25 % tariffs on all exports of goods from America’s two biggest and closest investing partners? How could it be comforting to be threatened with a 10 % tax increase on Chinese goods? The obvious motivation behind these risks is what provides the answer.

Trump’s stated love of tariffs, which he described as” the most beautiful word in the dictionary,” is the subject of a heated debate over whether he views them as economic and fiscal policy tools or as leverage in negotiations. If they are instruments of financial and fiscal policy, the taxes will be popular and long-lasting. They will be targeted at particular places and may be very short-lived if they are negotiating weapons.

The threat of tariffs as negotiating weapons was really comforting because of how they were placed in the next category. And since the names of the arms ‘ potential targets were so ambiguous and impossible, it should be relatively simple for China, Mexico, and Canada to deal with them.

In reality, each of the three threats was aimed at putting an American national issue on the shoulders of foreign nations. Trump claimed that the threats made against China and Mexico were meant to force those nations into halting the flow of the methadone drug that results in 100, 000 deaths annually in America as a result of overdoses.

None of these nations may fulfill their obligations. Fentanyl and its components are subject to stricter controls in China, but it can be purchased from numerous sources and is notoriously difficult to control. According to the&nbsp, Financial Times, deaths caused by fentanyl abuse in the US actually decreased by 20 % last year. It is unclear why Mexico could be any worse at policing the US-Mexico border than the US itself, given that the illegal immigration across the French border is currently little.

The expectations are clear. Trump may only want to sway a small amount from each of these governments so that he can consider a victory and demonstrate earlier in his administration how strong he is and how America may outperform different nations under his leadership.

This kind of bullying behavior is not the real cause of Trump’s and taxes ‘ worries. Nor does it stay in his employ of tariffs against certain places, such as China. In the same way that he did during his first term in office, he dealt with challenges of the kind this year. Perhaps a nation as large as China would simply defer business through other channels rather than completely halt it with high tariffs against it. After Trump imposed 25 % tariffs on Chinese goods in 2018, this was the case, and it would happen once more.

The real worry

The real worry is that he might want to use tariffs as a genuine tool of economic and fiscal policy, believing that imposing high tariff barriers around America will raise fiscal revenues, promote domestic manufacturing and eliminate America’s trade deficits. If so, then his campaign promise of implementing a 10% or 20% universal tariff – on goods imports from all countries except those on which even higher tariffs are imposed – would be carried out.

This would not be a communicating technique, which would force Europe to spend more on defense or purchase more American liquefied natural gas. In the belief that doing so would render the US more productive and stronger, it would adhere to a deeply held deglobalization idea. Such a plan may be sustained until at least the close of Trump’s word in 2028 and had basically make the existing laws of the world trading system, policed by the World Trade Organization in Geneva, outdated (or, at best, in expulsion ).

Trump’s deglobalization theory is still a mystery as of right now. His choice of Scott Bessent as the Treasury Secretary suggests that he wo n’t attempt to implement a radical change in economic policy. Bessent is a fairly orthodox investment fund manager. However, his nominations for Commerce secretary ( Howard Lutnick, another financier ) and US trade representative ( Jamieson Greer, a lawyer ) suggest that he might, for those men have voiced strong support for broad tariffs.

The manufacturing sector in America typically relies on imported components and raw materials, which would present a significant challenge for Trump, Lutnick, and Greer in imposing a 10 % or 20 % universal tariff. While some manufacturers may welcome defense against foreign competitors, others, including in the defense industry, had notice their input costs rise sharply as a result. Replacing global supply chains with local ones would be problematic, time-consuming, and costly and generally might not even be feasible.

The best chance is that any proposal to implement a universal tariff will receive a wave of lobbying for specific exemptions, enough to postpone the policy or possibly discredit it immediately.

This year’s tax risks were all about negotiating with foreign institutions. Also Trump’s pretended best buddy, Elon Musk, whose Tesla electric car company, Starlink satellite online company, and SpaceX rocket-launcher all rely on world markets and supply chains, would need to negotiate a large tariff.

Discussions with foreigners might be much simpler than those with Americans.

Previously editor-in-chief of The Economist, &nbsp, Bill Emmott&nbsp, is currently president of the&nbsp, Japan Society of the UK, the&nbsp, International Institute for Strategic Studies&nbsp, and the&nbsp, International Trade Institute.

This post, originally published on Bill Emmott’s Global View, is the English classic of an essay published December 2 in Italian by La Stampa. It is republished with authority.

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All bow before the almighty US dollar – Asia Times

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The earth was suffering from a massive abundance of dollars in 1971. The world was being flooded with money by British international investment and assistance, as well as US government policies that were inflationary.

The earth had too little golden at the same time, especially the United States. That was a problem because, unlike today, exchange rates did n’t float freely on markets. Money were to be exchanged for gold for$ 35 an ounce. ( The currencies of other countries were fixed-rate pegged to the dollar. )

Europeans were frantically attempting to exchange money for metal or exchange them for other currencies. With the US progressively unable to fulfill its responsibility, traders expected devaluation.

President Richard Nixon halted the economy’s conversionibility into gold in August of that year in response to the money crisis.

Despite a later established devaluation, speculators continued to attack the money. By 1973, the gold standard and resolved exchange rates were past.

Nixon’s Treasury Secretary John Connally made a wonderfully cynical post that is frequently quoted yet now during the devaluation negotiations in 1971. Connally stated to foreigners,” The money is your problem, but ours.”

In an unexpected way, the money was likewise my problem. In 1971, I was the 24-year-old minesweeping and offer agent on the USS Pivot. The Nixon administration decided to pay for basic rights that by granting Pivot and several other US Navy minesweepers as pay for the money problems.

In preparation, the Pivot’s captain tasked me with teaching our crew Spanish – a language that I did n’t know and that the crew turned out to be uninterested in learning. I called the Pentagon in a desperate attempt to find someone there who could help me compile a lengthy list of minesweeper conditions in Spanish. By pointing at their mimeographed files of the list, the crew successfully overcame the language barrier.

These weeks a strong money is, in many ways, everybody’s issue. It’s particularly difficult for international places.

International Monetary Fund research last year concluded that for emerging-market economies,” a 10 % U. S. dollar appreciation, linked to global financial market forces, decreases economic output by 1.9 % after one year, and this drag lingers for two and a half years”. Development-developed nations are worst hit by their ballooning local currency principal and interest duty.

Higher interest rates are a possible issue for the Federal Reserve Board and Fed Chair Jerome Powell, if that’s one of the reasons for a stronger money. Donald Trump, the president-elect, wants more authority over the Federal Reserve, weaker currencies, and lower interest rates. However, the Fed will keep rates higher, which will tend to keep the buck powerful, if his policies are as many economists and investors predicted. In such a case, Powell may find himself in Trump’s sights again.

A stronger money would be no joy for US exporting companies, pretty little including agriculture. Without the money dwindling more, it’s difficult enough to engage with Brazil and other ag-exporting nations.

The money appears to be strengthening further. Since April 2022, the US Dollar Index has been in solid country, rising above 100, and rising since soon September. Despite the mayor’s choices, Wall Street is betting that it will expand under a Trump presidency.

Trump has significantly reassured markets by appointing hedge-fund director Scott Bessent as treasurer. In recent days, the money and long-term interest rates have both increased slightly. Wall Street’s fears about prices have been fueled by the promise of enormous tariffs. Bessent has criticized taxes less heavily, claiming that they can serve as a bargaining chip and that coordination should be done with US friends.

Bessent furthermore, however, has promised to keep the economy’s position as the nation’s reserve currency. That’s a good thing for any government minister to perform, reserve-currency position affords the US many advantages. Keep in mind, though, that it is one of the factors the money is therefore often strong. With so much of the world’s business and assets denominated in dollars, there’s nearly always require for the divine buck.

Connally was half-right, the money is really our money. But it’s not just their difficulty. It’s about everybody’s.

Past lifelong Wall Street Journal Asia journalist and editor&nbsp, Urban Lehner&nbsp, is writer professor of DTN/The Progressive Farmer.

This&nbsp, content, &nbsp, initially published on December 2 by the latter news business and then republished by Asia Times with authority, is © Copyright 2024 DTN/The Progressive Farmer. All rights reserved. Follow&nbsp, Urban Lehner&nbsp, on&nbsp, X @urbanize&nbsp,

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Malaysia deepens economic ties with a Russia shunned over Ukraine invasion

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However, industry players said some companies may not want to get into business with Russia out of fear they would face trade obstacles given the ongoing sanctions.

For instance, the United States’ latest sanctions sought to further curtail Russia’s use of the international financial system.

Standardising currency used in business with Russia may therefore emerge as a challenge, noted chairman of the Small and Medium Enterprises Association of Malaysia William Ng.

Also, while Russia may have developed its own state-of-the-art software and information technology applications, they would be a hard-sell in Southeast Asia, he added. 

“We have been reliant on the American (and) European vendors for many years. To now shift the reliance to Russia as an option will take a bit of learning,” he said. 

“At the end of the day, we know what is the elephant in the room: That is the issue of Ukraine. Until and unless Russia solves it – and only Russia can solve this issue – everybody else will be at risk (of sanctions),” he added.

RELATIONS BETWEEN ASEAN AND RUSSIA

Still, Malaysia, which will take on the leadership of ASEAN next year, is eager to engage with Russia and BRICS member countries to diversify from its traditional markets, while maintaining ASEAN centrality amid intense superpower rivalries.

Already, ASEAN has benefitted from its trade ties with Russia.

In 2023, Russia’s trade turnover with ASEAN grew by 15 per cent from the previous year. 

The BRICS grouping, which was formed to act as a counterweight to the West and originally comprised Brazil, Russia, India, China and South Africa, added 13 partner countries in October, including ASEAN nations Malaysia, Vietnam, Indonesia and Thailand. 

ASEAN, with a combined GDP of almost US$4 trillion, is the fifth-largest economy in the world. 

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Singaporeans invited to share views for Budget 2025

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SINGAPORE: Singaporeans are invited to share their views for Budget 2025 over a six-week period from Monday (Dec 2) until Jan 12. Individuals, organisations and businesses can provide suggestions under four broad themes: Building our Singapore together, developing a more vibrant business ecosystem, providing opportunities for skills upgrading and jobsContinue Reading

Phuket to tackle food waste crisis

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Eyes reduction by 15 tonnes daily

Travelers visit Phuket airport in October. (Photo: Achadthaya Chuenniran)
Travelers visit Phuket airport in October. (Photo: Achadthaya Chuenniran)

Phuket has introduced a food waste management initiative aimed at reducing waste by 15 tonnes daily as part of its effort to become a low-carbon destination.

Janthima Duangsai, director of the Environmental and Pollution Control Office of the Pollution Control Department, said Phuket generates approximately 1,000 tonnes of waste daily.

This is driven by the rising number of visitors and the expansion of businesses on the island. From January to September this year, Phuket welcomed around nine million visitors, and the numbers are expected to grow.

Effective waste management, particularly of food waste, is essential, Ms Janthima said. Currently, 50% of the daily waste collected for disposal comprises food waste. Its high moisture content reduces the efficiency of Phuket’s waste incinerator, which has a capacity of 700 tonnes per day.

A study identified fresh markets as the largest source of food waste, followed by hotels, large retail stores, hospitals, restaurants, education outlets, religious institutions, small retail stores, and households. Waste generation also spikes on holidays compared to weekdays.

The project, funded by the Environmental Fund under the Ministry of Natural Resources and Environment, will run until April 30 next year. It will initially focus on three pilot districts: Muang, Kathu, and Thalang.

Authorities will conduct a food waste data survey, develop a platform for managing food waste and surplus food, promote food distribution systems, repurpose food waste, and provide materials and equipment to enhance waste management efficiency. They will also raise awareness and monitor the project’s progress, Ms Janthima said.

Last year, Phuket began implementing this initiative by signing a Memorandum of Understanding (MoU) among 17 public and private sector agencies and setting up a project management committee.

The committee promotes fundamental waste reduction practices, including reducing, reusing, and recycling. The project will expand to include households, retail stores (large and small), hotels, restaurants, fresh markets, and education outlets.

“We need cooperation from all sectors to reduce food waste as we strive to transform Phuket into a low-carbon, environmentally friendly city,” Ms Janthima said.

Thiraphong Chuaychu, deputy Phuket governor, added Phuket currently operates one incinerator, but the Ministry of Interior has approved funding for a second.

Meanwhile, a location for a third incinerator is being finalised.

“Increasing the number of incinerators will significantly improve the province’s capacity to manage daily waste,” he stated.

He also highlighted plans to convert some food waste into fertiliser, recycle used oil for biofuel, and turn waste into valuable products.

“We call on all sectors to work together to reduce the waste entering incinerators. This will enhance Phuket’s image as a sustainable province.”

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Japan and other major exporters face a Trump-tariffs trade war – Asia Times

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This year, 2024, has been a good one for Japanese business, with profits strong and the Tokyo stock market finally returning to its peak level from way back in 1989-90. However, if President-elect Donald Trump carries out the promises that helped him win re-election, next year, 2025, is looking likely to be a lot less comfortable, at least for exporters in Japan and other trade-surplus countries. The key questions concern how uncomfortable it will become, and what businesses can do about it.

Throughout his campaign, Trump promised to impose at least a 10% tariff on all goods imported from abroad, and sometimes threatened to make the tariff 20%. As average US import tariffs are now less than 2%, this would represent a big increase. Some argue that American businesses might successfully lobby him to reduce or delay these tariffs. But this looks very unlikely. As this second term will be his final period in office under the US Constitution, he no longer needs businessmen’s support.

Robert Lighthizer, his close advisor who was US Trade Representative during the 2017-20 Trump administration, published an opinion article in the Financial Times on November 1 justifying Trump’s proposed trade policies by blaming those foreign countries that had for years run surpluses in their trade with the United States. Obviously, that includes Japan, a country he battled against as deputy US trade representative under President Ronald Reagan in the 1980s. He wouldn’t have published that article if Trump had not authorized him to do so. And Trump on Tuesday picked Lighthizer’s former chief of staff and protege Jamieson Greer for the USTR job in the new term.

It is therefore highly predictable that this tariff will be imposed, probably quite early in the new administration, because the Trump team believe the tariff will raise new tax revenue, which is something they will badly need –given that the fiscal deficit in 2024 was 8% of GDP, given that Trump has promised to cut taxes especially for corporations and given that he is expected to seek a big increase in the defense budget in order to counter China.

Two other important factors are not predictable, however. One is the response of the countries targeted by these tariffs, which means the responses of all the countries in the world including, notably, those of two trading giants, the European Union and Japan. The other is the reaction of the US dollar on world currency markets.

The indications from the trade authorities in the European Union in Brussels are that they intend to respond to American tariffs in an immediate way. Their approach will be to hit back hard, on the view that this will strengthen their negotiating position with a man who seems to respect only toughness. In Japan’s case, much will depend on the strength of the new government, but a similar response would make a lot of sense.

If other countries in Asia, Europe and elsewhere follow the same policy, this will mean that not only will American imports decline owing to the Trump tariff but so will America’s exports. Meanwhile, trade among other countries may well increase, since tariffs on trade within the European Union, within the Comprehensive and Progressive Trans-Pacific Partnership and between those blocs will have stayed low. The Trump tariff plan might even encourage such blocs to further liberalize their own trade rules, in the hope of compensating for the reduction in exports to the United States.

We can therefore predict that this trade war will break out, but we cannot predict how it will develop, over time. There may well be negotiations, which could help a country such as Japan that is important for America’s military stance in the Indo-Pacific. Businesses must nonetheless prepare for a sharp change in the terms on which they trade goods across American borders, whether they are exporters to America or importers from it.

In terms of America’s trade connections with the rest of the world, this could be a genuine period of deglobalization. However, trade between other countries may well remain strong and even increase. Businesses will be looking for opportunities in markets that, unlike America, are remaining open to them.

The currency markets will also play a vital role in setting the new terms of trade, in ways outside Trump’s control. If the US dollar’s value increases sharply when the tariffs are imposed, this could reduce or even negate the tariff’s true impact on import prices into the US. But if it were to decline, as it might if markets feared that the US might face a recession thanks to the tariffs or even a financial crisis, this could further penalize exporters to the US.

The American economy has outperformed the rest of the rich countries in recent years, making it an attractive market for exporters. In 2025, that is poised to change.

Formerly editor-in-chief of The Economist, Bill Emmott is currently chairman of the Japan Society of the UK, the International Institute for Strategic Studies and the International Trade Institute.

First published in English on Bill Emmott’s Global View, this article is the original of an article in Japanese published by Nikkei Business. It is republished with permission.

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Musk’s DOGE could protect Asia from Trump’s tariffs – Asia Times

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In: Asia, Business

Elon Musk, the driving force behind Tesla and SpaceX, has consistently disrupted traditional industries with his relentless focus on innovation, efficiency and radical change. 

Now, as co-head of the newly established Department of Government Efficiency (DOGE) in Donald Trump’s incoming administration, Musk is poised to reshape not just the US government but potentially the global economic landscape. 

While the overarching goal of DOGE is to cut bureaucratic waste and streamline public services, Musk’s involvement signals a more ambitious agenda: a fundamental rethinking of how technology and government intersect, with significant implications for Asia’s economies.

The world’s richest man’s influence in the new administration is not merely symbolic. His reputation as a disruptor suggests he will bring a Silicon Valley mindset to Washington, advocating for aggressive digitization, automation and the adoption of emerging technologies across government operations. 

This approach, however, is far from straightforward, especially when viewed through the lens of Trump’s threatened new tariffs. These protectionist measures, designed to bolster domestic industries, add a layer of complexity to Musk’s efficiency mission. 

For Asian economies, which are deeply integrated into global supply chains and heavily reliant on trade with the US, the combination of Musk’s efficiency drive and Trump’s tariffs presents both risks and opportunities.

One of the immediate effects of Musk’s leadership within DOGE could be the acceleration of technological adoption in areas like customs and border control. 

Streamlined processes powered by artificial intelligence and blockchain could reduce administrative bottlenecks, making trade faster and more transparent. This would be a welcome development for exporters across Asia, particularly in countries like South Korea, Japan, and Vietnam, where delays and inefficiencies often add significant costs. 

But these procedural improvements may be offset by the financial burden of higher tariffs, particularly in key sectors such as electronics, automotive parts and machinery.

For example, South Korea’s semiconductor industry, which plays a crucial role in the global tech supply chain, will face increased costs due to the new tariffs. While Musk’s push for efficiency might lower non-tariff barriers, the direct impact of higher duties cannot be ignored.

Similarly, Japan’s automotive sector, a major exporter to the US, will need to tackle this challenging landscape. Musk’s known advocacy for electric vehicles (EVs) and sustainable technologies could open doors for collaboration in these areas, but traditional manufacturers may find themselves under pressure to adapt quickly or risk losing market share.

China, the primary target of Trump’s tariffs, faces a particularly nuanced challenge. While the tariffs themselves are a clear obstacle, Musk’s efficiency reforms could paradoxically benefit Chinese exporters by simplifying compliance and reducing bureaucratic hurdles. 

Tesla’s significant presence in China, exemplified by its Gigafactory in Shanghai, positions the country as a potential partner in Musk’s broader vision of government efficiency and technological integration. 

However, the geopolitical tensions underpinning US-China relations complicate this dynamic. Beijing’s response will likely involve a careful balancing act, seeking to leverage any benefits from Musk’s reforms while countering the broader impact of higher tariffs.

India, on the other hand, may find itself in a more advantageous position. With its growing emphasis on digital infrastructure and renewable energy, India aligns well with Musk’s priorities. If DOGE promotes closer US-India cooperation in these areas, it could catalyze significant investment and innovation.

Tesla’s long-anticipated entry into the Indian market could finally materialize, driven by a more favorable regulatory environment shaped by DOGE’s initiatives. Beyond Tesla, the broader renewable energy sector stands to gain, with potential collaborations in solar power, battery storage and electric mobility.

The financial markets are already reacting to the twin forces of Musk’s appointment and Trump’s tariffs. Investor sentiment in Asia is mixed, reflecting both optimism about efficiency gains and concern over protectionist policies. 

Currencies in export-dependent economies like South Korea and Japan are under pressure, while equity markets are closely monitoring developments. In the medium term, much will depend on the extent to which Musk’s reforms can offset the trade frictions caused by tariffs. 

If DOGE succeeds in making the US government more agile and responsive, the resulting improvements in trade logistics could mitigate some of the negative impacts on Asian exporters.

However, it would be a mistake to view Musk’s role purely through an economic lens. His broader vision encompasses a reimagining of governance itself, with implications that extend beyond trade and tariffs.

Musk’s commitment to sustainability, for instance, is likely to influence DOGE’s priorities, potentially leading to increased support for clean energy initiatives. This could create new opportunities for Asian countries that are leaders in renewable energy technologies. 

Japan’s investment in hydrogen, South Korea’s leadership in solar manufacturing and India’s ambitious renewable targets all position these nations as potential partners in a global shift toward sustainability, driven in part by Musk’s influence.

In this context, Musk’s impact on US-Asia relations will be profound but not uniform. Countries that can align with his efficiency agenda and invest in next-generation technologies will likely emerge as winners. 

Those who remain reliant on traditional export models may struggle to adapt. The key for Asian economies will be agility and innovation—traits that Musk himself embodies. Ultimately, Musk’s leadership of the new DOGE represents a bold experiment in governance. For Asia, the stakes are high, but arguably so are the opportunities.

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