Will next Iran president make nicer with the West? – Asia Times

By:
On:
In: Asia

Tehran does have a chance to hit reset on foreign policy issues following years of growing hawkishness. In fact, the degree to which the candidates does pivot to a greater engagement with the West has been a crucial strategy problem.

The country’s highest religious and political authority, the supreme leader, is the final arbitrator of disputes with global powers, but the president of Iran has influence in a political system with multiple political centers.

The presidential election comes as Iran grapple with significant interconnected local, regional, and global issues, which was forced by President Ebrahim Raisi’s dying in a May 2024 plane accident. The UA and UK’s most recent round of sanctions were levied by the government’s market in April 2024 after Iran launched a clear strike against Israel.

Sanctions are n’t the West’s only way to apply pressure on Tehran. Cyber war, soft power and martial could are also at countries ‘ disposal. However, Iran’s activities have continued uninterrupted in recent years, including funding proxy extremist groups, avoiding restrictions through China and Russia, and advancing its regional nuclear and missile plans.

As specialists on US international policy and Iran, we think this raises a crucial issue: Are the efforts of the US and its allies to deter Iran having any impact? And could the West have the chance to alter its position in the political business?

The boundaries of politics

The US and Iran have n’t established diplomatic relations since 1979, when the Islamic Revolution occurred. But that does n’t mean that there are no diplomatic efforts. In reality, there are illegal programs, such as the US working through the Swiss state.

However, at the best days, US diplomatic relations with Iran are tense. They are prone to disturbance when the US or Iran assume management, and their situation has only become worse as Iran’s ties to China and Russia have improved.

The end result has been a discordant political approach when it comes to how the US and the West frequently handle Iran.

This is a byproduct, in element, of China expanding its economic and geopolitical relations to Tehran and increasing its influence in the Middle East. Likewise, Russia has strengthened military, political and economic links with Iran.

Iran does n’t feel compelled to agree with the US and its allies regarding security interests because of this, which has lessened the impact of Western diplomacy.

The Trump administration abandoned the nuclear disarmament deal in 2018, the Joint Comprehensive Plan of Action, as a perfect case. European rulers have tried to prevent Iran from acquiring nuclear weapons, but they were unsuccessful in obtaining Iranian assistance after President Donald Trump resigned from the deal.

Despite this lack of progress, the US and Iran also have lines of communication. In an evident effort to halt US interests in the region, the US made clear to Tehran that it had not been involved in the operation following Israel’s attack on an Iranian Embassy substance in Syria.

Yet, Iran has little opportunity to discuss given the inconsistent, unexpected policies of US leadership.

A pending US-Saudi security agreement may also push Iran further away from its Western allies and China and Russia into their orbits.

In the end, the US and Europe have two objectives: to stop Iran from developing nuclear weapons and lessen Middle Eastern issue that is sponsored by Iran.

But, to meeting, both targets seem obscure with Iran’s continued, uninterrupted uranium enrichment and its problems throughout the Middle East constantly taking place.

In the past, Iran gave politics a prospect out of concern that Western hawks who oppose Iran’s nuclear program might not be as fond of showing some determination.

A new revolutionary Iranian chairman might win over the opposition for bringing diplomats to the table of negotiations. However, it may probably have the highest leader’s blessing.

In any case, the next president appears to be more likely to become a hard-liner than the high head. And while the Iranians perhaps feel more diplomatic pressure from both domestic and international allies, they could as well veto existing policy.

Peddling sweet energy

The US and its supporters have turned to various means of pressure on Iran as confidence in finding a diplomatic solution is declining.

American intelligence agencies have carried out a number of cyberattacks and information efforts to undermine Iran’s leaders and their local plans.

For instance, in 2010 a combined U.S. Israel digital operation called Stuxnet hacked the Iranian Natanz nuclear material enrichment facility, degrading and preventing regular centrifuge operations while alerting operators to their normal course of operation.

In response to Iran’s failure to address US safety concerns about nuclear proliferation and its anti-West activities in the area, these businesses continue to this day.

Tehran also engages in virtual warfare. A US statement warned Iran’s use of extreme cyberattacks to attain its policy objectives in a US report from 2023. They include the use of state-sponsored intermediaries to install heinous ransomware and malware.

The Persian election comes amid local unrest, giving the West another means of putting pressure on Tehran: anti-regime propaganda.

Independent radio and news networks supported by the US and its Western allies have targeted the Persian public with anti-Iran government messages and intensified local protests in an effort to lower public support for the current government and stoke unhappiness among the Iranian population.

Falling back on punishment

Iran’s presidential hopefuls have generally promised to retaliate against Western propaganda. According to these efforts, the prospects appear to be sensitive to the sanctions ‘ significant effects on middle-class people, particularly in Iran.

For a variety of factors, the US and Europe have recently increased sanctions against Iran. The European Union imposed a number of sanctions on Iran as a result of its repressive reaction to the protests in 2022 following the death of a younger woman, Mahsa Jina Amini, in police custody. The US and UK most recently used restrictions in April to stifle Iran from bringing drones into Russia and escalating the Middle East conflict.

Punishment, such as those leveraged during the United States ‘ maximum pressure campaign during Trump’s president, have certainly placed some stress on Iran’s economic systems and business. You can see their effect in the government’s high inflation rates and financial recession.

However, some experts claim that Iran’s political efforts have been undermined by the promotion.

Others contend that sanctions have failed because of how Russia and China have aided in providing pleasure by granting Iran access to their businesses.

Although sanctions have clearly weakened Iran’s market, their ability to contribute to the overall goal of bringing Iran back to the table of negotiations, especially in terms of its nuclear programme and local activities, is less certain.

Turning to defense methods?

The US has shown a growing commitment to turn to military action to counter Iranian-backed groups since October 7, 2023, when Hamas insurgents launched a surprise attack on Israel.

In retaliation for a previous drone attack by an Iranian-backed party that claimed the lives of three US support members in Jordan, the US and UK conducted the most notable strikes in February.

To date, Western attacks have had a more metaphorical impact by reducing actions supported by Iran. But they demonstrate the US and its supporters ‘ military can.

In recent years, politics, sanctions and gentle authority have failed to convince Iran’s rulers back to the table. Iran’s fresh president may also continue down the path of withdrawal, but doing so dangers inviting the West to improve its deterrence answer.

Daniel P. Colletti is an American political science professor at the United States Military Academy West Point, while Nakissa Jahanbani is an alternative professor at Penn State.

The Conversation has republished this essay under a Creative Commons license. Read the original content.

Continue Reading

South Korean officials naive about data sovereignty – Asia Times

By:
On:
In: Asia

Data are regarded as a crucial aspect of information technology and artificial intelligence. Data independence is gaining more and more of a place in the world as more superpowers and thick powers compete to become the forefront of AI and IT services.

Data independence refers to the notion that a nation’s and its citizens ‘ data should also be under their power, just as national sovereignty does so. This implies that governments and citizens or consumers should be able to choose when, where, how, and why their information are used.

With the use of AI and the web becoming more commonplace, more and more people are putting more emphasis on making sure that the ownership of data is determined by the country and its citizens. Therefore, countries have recently focused more on strengthening information sovereignty and restricting and evaluating access to data based on different types of data and international companies.

Without distinguishing colleagues from enemies, data sovereignty is lacking.

On June 30, 2021, Didi Chuxing, often referred to as” the Chinese Uber”, proceeded with its IPO on the New York Stock Exchange, raising$ 4.4 billion despite strong opposition from Chinese authorities. The officials had urged a pause because they worried that sensitive personal and regional data may be contained in the Offering documents.

By July 2022, Chinese authorities imposed a great of$ 1.19 billion on Didi Chuxing for violating security laws, leading to the company’s volunteer withdrawal. In response to these concerns, China enacted the Three Data Laws to regulate online information control. The three are who.

  • Cybersecurity Law,
  • Data protection legislation and regulations
  • Personal Information Protection Law

To protect information independence, these laws established regulations like the Security Assessment Measures for Cross-Border Data Transfer, which mandate federal evaluations for the transfer of crucial data abroad.

China’s steps against major software and its data sovereignty measures have received criticism in the West for having a negative impact on businesses, including the US and Europe. However, similar measures were immediately adopted in these areas.

For example, the US Protecting Americans from Foreign Adversary Controlled Applications Act, which was signed into law by US President Joe Biden last month, requires TikTok’s family business, Chinese business ByteDance, to sell its US businesses within 360 time or face a ban due to concerns that the Chinese government might have access to people ‘ personal information.

Prior to this, President Biden had signed an executive order in February to protect Americans ‘ sensitive data, such as biometric, health, and location information, from adversarial nations like China.

Additionally, countries such as Australia, the UK, and the European Union have banned TikTok on government devices and strongly recommend its removal from personal devices.

Europe also has been proactive in addressing data sovereignty. The General Data Protection Regulation, which governs the transfer of data to third parties and countries unless otherwise authorized by the EU, was put into effect in 2018. Additionally, it grants individuals the ability to access and delete their personal data.

The Digital Markets Act and the Digital Services Act, which were signed into law this year, were both more recent efforts to stop foreign big tech platforms like Google, Meta, and Apple from dominating the market, fundamentally aimed at protecting domestic businesses.

Missing Korea’s data sovereignty

In the neighboring economies of South Korea, data privacy and location restrictions are in place. This pattern is evident in the recent Naver Line conflict between Korea and Japan. The Japanese government pressured Naver to transfer its 50 % share of the joint venture Line to its partner, Japan’s SoftBank, due to fears that data from Line Yahoo, used by most Japanese, could be transferred to the Korean company Naver. This demand comes after an information leak from Naver Cloud, which runs the Line messenging service that is most popular among Japanese consumers.

The issue began last November when Line Yahoo’s servers were attacked, resulting in the leak of over 440, 000 personal data records. The Japanese Ministry of Internal Affairs and Communications then issued administrative instructions to Line Yahoo on March 5 and April 16 to safeguard the security of communications. This response highlights Japan’s growing concern about data sovereignty and the use of data outside their purview.

Meanwhile, the Korean government focused solely on opposing the forced sale of Naver’s shares, pledging to “firmly and strongly respond” to these measures. However, this reaction did not address the broader issue of data sovereignty protection.

In contrast to other major nations ‘ efforts to prevent foreign companies from gathering and obtaining data, Korea’s response seems overly complacent. The Korean government still views data sovereignty protection merely as personal information protection, which is the main argument.

The current Personal Information Protection Act explicitly states in Article 1, Paragraph 1, that” the purpose of this law is to protect individuals ‘ freedom and rights by stipulating matters relating to the processing and protection of personal information and, furthermore, to realize the dignity and value of individuals.”

It also briefly and vaguely states in Article 14 Paragraph 2 that the state is required to formulate policies for the transfer of personal information abroad and that it must obtain the information subject’s consent when doing so, without giving an explicit description of its territorial scope.

These limitations indicate that the Korean government continues to view data sovereignty protection with a narrow lens rather than as a matter of national security and a geopolitical issue. The PIPA falls short of the comprehensive measures required to safeguard national data sovereignty in an increasingly interconnected digital world by failing to address the broader implications of data transfers and lacking a clear extraterritorial application.

An Australian think tank recently discovered that Chinese state-controlled propaganda organizations are frequently linked to the collection of data from Chinese businesses, including the shopping and gaming apps AliExpress and Temu.

Relevant Korean ministries, such as the Ministry of Science and ICT and the Personal Information Protection Commission, have only mentioned observing how user data from Chinese online retailers is collected and used, which seems unrelated to the seriousness of the situation.

While other nations put in place measures to restrict where data can be collected and to prevent foreign companies from doing it, Korea still believes that as long as foreign companies properly manage collected personal information and protect against cyberattacks in accordance with PIPA, it is not a major issue.

This suggests that Korea may not fully comprehend how collected and used citizens ‘ data are used by foreign companies operating there. South Korea should take stronger measures to safeguard crucial data for economic security and actively change strict legislative guidelines that cover extraterritorial scope.

Seunghwan ( Shane ) Kim&nbsp, ( seunghwankim619@gmail.com ) is a researcher at the Korea Foundation.

This article, first published by Pacific Forum, is republished with permission.

Continue Reading

Yen slumps to lowest since 1986, putting traders on alert

By:
On:
In: Asia

Masato Kanda, a bottom dollar minister, stated on Monday that Japan was always ready to take action against extreme market movements, but traders ignored the warning after the most recent treatment failed to stop the selling. Because it’s not being supported by any shift in levels, Tuckey said, “perhaps thatContinue Reading

Gentari partners with Virta to grow EV charging market in Southeast Asia 

By:
On:
In: Technology
  • Gentari integrates Virta’s systems, experience for EV charging system
  • aspires to have 2, 000 charging points added to the Gentari Go system by the year 2024.

Left to Right: Elias Pöyry, co-founder and chief business development officer of Virta, Shah Yang Razalli, deputy CEO of Gentari and CEO of Gentari Green Mobility and Aaron Sarma, Digital Ecosystem, Gentari

As a software partner, Gentari Sdn Bhd, a company of Malaysia’s Petronas Group, is working with Virta, a leading Volt charging company solution provider, to increase the EV charging network throughout Southeast Asia. &nbsp,

In a statement, the clean electricity solutions company said that through its conglomerate Gentari Green Mobility Sdn Bhd, it will utilize Virta’s digital app services, technology, and industry knowledge to help the rollout and function of EV charging system.

The lovers will also collaborate with third-party organizations to make it possible for EV charging to be interoperable in the area.

Gentari announced it is deploying technologically advanced EV charging companies throughout the area through its clean energy system – Gentari Go in line with its long-term goal to get Asia Pacific’s leading lover for efficient accessibility options. Gentari Go, which was introduced in Malaysia in February 2024, also provides access to batteries in Thailand and Singapore, strengthening Gentari’s status as a market leader in high-powered strong current paying. &nbsp,

More than 2,400 charging items are now operational in the three states, according to the company, and Gentari Go will add another 2, 000 charging details by the end of 2024.

Elias Pöyry, co-founder and key business development officer of Virta, stated that” this collaboration has a great ability to get the speed of the energy transition in Southeast Asia. In just a year and a half, Genetari Green Mobility has grown from its inception to a leading marketplace person in e-mobility, and we are pleased to support this progress with our market-tested end-to-end global EV charging solutions and expertise, including regionally in Singapore, Thailand, and Australia.

He added that the company’s customers and partners will gain from its ecosystemic approach, which” Powered by Virta” ( Powered by Virta ), which will speed up EV penetration throughout the entire region.

” I’m convinced that Gentari is well-positioned to lead the East Asian business.” We now have a sizable presence in the area and a thorough understanding of the needs of the local business and consumer objectives. We see this engagement as essential in carrying out our plans with the best speed and scale, according to Shah Yang Razalli, assistant CEO of Gentari and CEO of Gentari Green Mobility, recognising the value of partnering with a company that has international standards and business experience.

Virta, the leading European EV charging platform, brings its ten- year track record in EV charging services to the partnership, having enabled over 1, 000 charging networks to manage their charging business on Virta’s platform in 36 countries, including the most mature EV markets in Europe. Since 2022, Virtu has also established itself in Southeast Asia.

As Southeast Asia and Oceania increase in EV penetration, there is an increasing need for robust charging infrastructure right now. Additionally, several countries in the region are already showing double-digit EV share in new car sales.

The firms anticipate that the region’s market will grow much more quickly than the US and EU have so far because there are already a lot of EVs on the market thanks to local and Chinese EV manufacturers making affordable models to meet demand.

Continue Reading

25-year weak yen obsession is blowing up on Tokyo – Asia Times

By:
On:
In: Asia

Forex traders who are betting on a yen bounce should talk to policy veterans who are more knowledgeable and not the current ones.

Officials from the Bank of Japan, Shunichi, Suzuki, Masato Kanda, and Kazuo Ueda, the yen’s government, argued that the renminbi is a victim of the Japan-US offer gap, while the yen was at its lowest point over the past year.

This is bedroom, as Hiroshi Watanabe, past vice minister of finance for foreign affairs, tells Nikkei Asia. Yet if Tokyo participates suddenly, there’s little opportunity for the yen to march from 159 then history, say, 150 to the US dollar, he says.

In the days to come, the chances are that the yen will continue to decline. The purpose: Tokyo’s 25- year- ancient poor- yen strategy is blowing up on Asia’s next- biggest economy in real time, leaving the currency on a upward path.

” The level of japanese loss in recent years is startling”, says Robin Brooks, scholar at the Brookings Institution. The Turkish lira, which has traditionally been the weakest money in the major markets, has lost more in real terms than the renminbi. However, since the end- 2019 – since only before Covid hit – only one money, the Egyptian pound, has fallen more than the yen in true terms”.

Brooks adds that,” no surprisingly, the level of this loss has sparked controversy on its drivers and how much further it can expand”. On some level, he explains, “yen weakness stems from Japan’s extremely high debt, which forces the bank to cover long- term government bond yields via available- ended bond buying”.

Finally, Brooks concludes,” Japan is a sobering stories about letting debt fall unchecked. Countries can impose limits on state bond yields with the help of their main businesses, but doing so only leads to weak currency depreciation.

Now that Watanabe is no longer employed directly by the government and is leading a Tokyo think tank, he can explain why the yen should n’t be viewed as a safe haven asset. And why does the market wager that the Ministry of Finance’s intervention wo n’t succeed?

A number of Asian governments have been using a weak yen-only strategy to encourage growth and combat inflation since the late 1990s. After Chinese officials claimed they were moving away from the old beggar-thy-neighbor policies, the ploy gained perhaps more significance.

The Liberal Democratic Party’s resumption of power in late 2012 is referenced below. With a strong plan to boost the business, Prime Minister Shinzo Abe came back into power.

Abe compared victory to the warrior analogy, which depicts how three projectiles fired at a target. Abe’s bolts, aimed at slaying depreciation, included intense monetary easing, more imaginative macroeconomic policies and a reform Big Bang.

However, structural changes to cut red tape, revive innovation and productivity, enable people and attract more major global skills were few and far between. Similar to how to create a new fiscal stance. Over the past 14 plus years, debt has remained high.

Instead, Abe prioritized lower interest rates and a weaker yen. To further the quantitative easing initiative that Tokyo had instituted in 2001, he appointed Haruhiko Kuroda as governor of the Bank of Japan in 2013. The BOJ had more stocks and bonds than it had in 2013 and 2018, so much so that its balance sheet surpassed Japan’s US$ 4.7 trillion gross domestic product.

Count the ways this strategy is backfiring. As the Fed tightened in 2022 and 2023, the yen’s weakness deepened. That made Japan vulnerable to rising oil, food, and other important imports.

According to economist Atsushi Takeda of the Itochu Research Institute,” the ideal scenario would be for wage gains to be passed on to prices and for prices to rise steadily.” Instead, “bad” inflation imported from abroad is undermining household and business confidence.

Goushi Kataoka, a former BOJ board member, notes that” cost- push pressure is heightening at a degree never seen before, prodding firms to raise prices”.

The yen’s decline is also gaining new life. It is possible that yen selling as a result of a certain threshold, as long as US-Japan rate differentials are above a certain threshold, even with some rate differential narrowing, says Barclays ‘ strategist Shinichiro Kadota.

However, the yen is falling because of investor confidence in the currency. So far this year, the yen is down more than 13 %. Its current course is raising questions about whether China will decide to accept a lower exchange rate as well. The yuan is on the verge of breaking point since 2008;

A weaker yuan is suggested as the best way to address the deflationary pressures on China. However, Japan’s experience serves as a warning about the advantages of putting aggressive monetary policy policies before policies to boost competition and disruption.

The BOJ basically inaugurated the biggest political and corporate welfare scheme in history. Since the late 1990s, it has made it more important for the 13 governments to rebalance growth engines and establish level playing fields.

Corporate executives felt less pressure to innovate, change, and take significant risks. For two- plus decades, it’s been easier to harness BOJ support than for CEOs to disrupt industry. In 2024, Ueda’s BOJ team is currently plagued by that BOJ-enabled complacency.

The yen is sagging again because it is Tokyo’s only real policy, as Watanabe and other Japanese policy veterans now acknowledge. This explains, in part, why Ueda has avoided any chance even just to start the process of normalizing rates. Ueda has jumped at every chance he has had to signal that change is on the way in his 14 plus months in charge.

The yen is still in secular-declining mode even if the MOF intervenes in the coming days. Too quickly is the BOJ able to feel at ease braking against the economy. Nor does Tokyo’s political environment encourage tighter policy.

The approval rating for the LDP’s current prime minister, Fumio Kishida, who is now 21 %, is the only factor that is falling faster than GDP. Ueda wants to blame the BOJ for causing Japan to go into recession, but that is last. The BOJ keeps its foot on the gas, but the yen drops as it goes.

According to Kelvin  Wong, senior analyst at currency broker Oanda,” softer prints of Japanese economic data may cause BOJ to delay its next interest rate increase to September in addition to the near-term increase in geopolitical risk premium coming out of the Eurozone as a result of the looming first round of French legislative elections scheduled this Sunday, June, supporting potential bids on the US dollar due to safe-haven demand.”

Japan contracted 1.8 % year on year in the January- March quarter. The one bright spot is exports, which are “having a positive impact”, says Yeap Jun Rong, market analyst at&nbsp, IG Asia Pte.

There’s an argument, though, that Japan’s economy is in worse shape than the official data suggest. &nbsp, Marcel Thieliant, economist at Capital Economics, points to hopes that exports alone will save the day.

He claims that the majority of the rise in trade values was caused by the yen’s sharp decline rather than by any discernible increase in volumes.

One wild card is the November 5 US election. If Beijing lets the yuan weaken, too, exchange rates could become a big controversy in Washington. No issue brings together Republicans led by President Joe Biden and Donald Trump like beggar-thy-neighbor scheming in Asia. That could add fresh fuel to trade- war politics in Washington, provoking retaliation in Beijing.

However, making up a claim that Japan is responsible for Washington’s policy is ineffective is not more credible. The preponderance of the data refutes both contentions.

Continue Reading

Japan frets over its ‘digital deficit’ – Asia Times

By:
On:
In: Asia

With exports of AI processors rising to record levels, the monthly balance of payments deficit in online services has more than doubled to about 5.5 trillion ($ 34 billion ) in Japan, which is a phrase. Amazon, Apple, Facebook, Google and Microsoft dominate the net- based businesses, while Nvidia and other overseas companies provide Japan with superior computing- related logic ICs.

Digital services include e- commerce and online advertising, social media, conceptual AI, email, search and other digital services, bright phone and computer operating systems, application software and subscriptions, cloud computing and data storage and associated consulting services.

High business stocks are a result of new market research findings.

  • Amazon in e- commerce ( 48.6 % ) versus Japan’s Rakuten ( 32.4 % ),
  • Apple in cell phones (60.2 % ) versus Samsung ( 7.5 % ) and Sony ( 4.6 % ),
  • Microsoft Windows ( 43.3 % ) versus Apple iOS ( 23.8 % ) and Google Android ( 16.3 % ), and
  • Google Search ( 78 % ) versus Microsoft Bing ( 11 % ) and Yahoo! Search ( 10 % ).

Rakuten is the only Chinese company in these markets with a considerable presence, and Amazon has been its rival.

Japan’s complete trade deficit for goods and services was$ 6. 0 trillion in March 2024, which is almost twice as large as its electronic deficit. Due to the end of the Covid crisis and the loss of the yen, it has increased in size than outbound tourism profits, which has increased.

Japan’s Digital Agency has developed a thorough “priority policy system for realizing modern society” in an effort to address this issue. In order to improve the nation’s industrial base and reverse the decline in employee productivity, the program aims to encourage the use of data, conceptual AI, and other modern technologies.

The company would also like to increase the now lower level of satisfaction with the government’s online services, including My Number individual identification, by making them more convenient and reliable.

Digitalization is also used to address Japan’s increasing natural disasters, reduce the impact of waste disposal, and improve health care.

Japan’s declining population and persistently worsening labor shortage make all of these issues even more pressing.

In addition, as digitalization proceeds, so does the need for cyber security. By the end of the decade, the Japanese government intends to increase the number of certified information security specialists from 20 000 to 50 000. In doing so, it wants to make sure that government offices, at the regional and local levels as well as the national level, can access the specialists ‘ expertise to small and medium-sized businesses, not just large corporations.

The looming retirement of the majority of the employees in charge of keeping them running also poses a problem. It is also a problem. This is being called the” 2025 digital cliff”. Japan’s Ministry of Economy, Trade and Industry ( METI ) estimates potential losses at ¥12 trillion ($ 75 billion ).

Smaller businesses typically run into this risk because they lack the resources to find, train, or pay for the digital systems and services they require. Japan’s large multinational companies do not have this problem. In this regard, Hitachi and NEC stand out as two recognizable examples of businesses that are ahead of METI and the Digital Agency.

NEC, Japan’s largest provider of telecommunications equipment and social infrastructure software and services, bases its long- term growth strategy on the transition from 5G to 6G, digital government, smart cities and digital finance. It supports cloud computing from Microsoft Azure and Amazon Web Services. Additionally, NEC offers facial recognition systems for use at airports in Japan and some other countries.

Hitachi, Japan’s largest industrial conglomerate, now gets nearly 30 % of its sales from the digital transformations in national and local government, finance, telecommunications and media, energy, transport and logistics, healthcare and, of course, manufacturing.

This was largely achieved by GlobalLogic’s acquisition of US-based Digital Engineering Services for$ 9.6 billion in 2021. GlobalLogic, which is now growing at a rate of more than 15 % per year, is forecast to provide 22 % of Hitachi’s consolidated revenue this fiscal year.

These and other Japanese companies are pursuing digitalization in cooperation, not competition, with US companies, and the digital deficit is partially offset by direct foreign investment. Google and Microsoft both have data centers in Japan, while Amazon has several logistics centers.

Another example: KDDI, Japan’s second ranking mobile telecom carrier, is in discussions with US server provider Supermicro to acquire space in Japan for a large new data center using Nvidia AI processors.

Taro Kono, Japan’s minister for digital transformation, told reporters last week that the key metric is “how many of the]digital ] systems and programs that everyone uses are made in Japan”.

That may be true, but from an overall economic perspective, it is not in line with the Digital Agency’s efforts to increase productivity and address the labor shortage. In 2023, Japan’s overall trade surplus with the US ( in both goods and services ) was$ 63 billion, or more than 10 times its digital deficit, which is mostly with the US. Based on their comparative advantages, the two nations have complementary trade relationships.

In contrast, China is building its own, increasingly autonomous digital economy. Japan has no corporate equivalents of Alibaba, Baidu or Huawei, but as things stand now, it does n’t need them. Follow this writer on&nbsp, X: @ScottFo83517667

Continue Reading

Malaysia headquartered Paywatch secures USmil funding in largest raise for Earned Wage Access startup in SEA

By:
On:
In: Technology
  • Money to expand employee wellness programs and initiatives throughout the Ocean
  • Third Prime, the head investor, invests in financial and industrial technology companies.

The Paywatch team with founders, Richard Kim (seated, 2nd from right) and his brother, Alex Kim (3rd from right).

In what is believed to be the largest funding round closed by an earned- wage access ( EWA ) startup in Southeast Asia, Malaysian headquartered startup, Paywatch, has raised US$ 30 million ( RM141 million ) in funding from a mix of equity and credit facilities to supercharge growth.

With the help of new investors Octagon Venture Partners and Wooshin Venture Investment Corp., Paywatch received over US$ 14 million ( RM65 million ) in Series A equity funding led by Third Prime and a consortium of US investors, including Vanderbilt University and the University of Illinois Foundation. Additionally, it secured payment services worth US$ 16 million from big banks, including Citi and other big banks, at global locations.

]RM1 = US$ 0.212]

” We take great pride in the assurance these reputable investors and banks have in our vision in the midst of this money and tech winter. We were firmly convinced from the beginning that ensuring accessibility to major financial institutions and offering Received Wage Access at the lowest, minimum payment was the best course of action. Our rapid expansion and collection of high-caliber business customers validate our approach, even though it was a more difficult way to market, according to Alex Kim, president and co-founder of Paywatch, who co-founded the business in South Korea in 2020 with his nephew Richard Kim.

An ESG individual gain

Employees can access a portion of their accumulated earnings in real-time as it is earned, as well as before the conclusion of their pay cycle, thanks to Paywatch’s debt-free EWA solution, also known as on-demand pay, an impressive employee benefit.

Paywatch’s remedy has clearly decreased employees ‘ dependency on loans, alleviated home debt and enhanced fiscal management. Together, Paywatch’s smooth, fully automated program has greatly boosted businesses ‘ employee retention and efficiency, resulting in significant cost savings associated with hiring and training.

Paywatch has partnered and collaborated with a few Malaysian brands and institutions such as Lotus, Jaya Grocer, QSR Brands ( including KFC and Pizza Hut ), FFM Bhd, PayNet, Shopper360, Guardian ( part of DFI Group ), Corus Hotel ( under MUI Group ), Llao Llao ( by Woodpeckers ), Coway, Media Prima, University of Nottingham Malaysia, UNITAR and Durioo.

It claims that these partnerships show how committed it is to offering a revolutionary financial service that meets the demands of Malaysia’s labor.

Most foreign EWA in Asia, biggest level with US$ 58mil processed

The firm, which serves the largest foundation of employees in Asia, has processed more than US$ 58 million in salaries through its method to time, and its monthly disbursements have increased by as much as US$ 8 million, or 15 %, month over month.

According to Paywatch, this results in the largest EWA service in Asia by volume of transactions. By the end of the year, the company anticipates receiving more than US$ 120 million in salary, more than double its lifetime value.

Since its establishment in 2020 in South Korea, Paywatch has expanded quickly to three other markets- Malaysia, Philippines, Indonesia. With the most recent funding, the company is “ready to expand into new markets and develop even more financially inclusive tools for our users,” Kim said.

Along with the company’s other innovation efforts, a significant portion of the Series A funding will be used to enhance the company’s embedded finance offerings.

Third Prime, a U.S.-based early-stage venture capital firm that invests in global leaders in financial and industrial technology, is Paywatch’s leading investor for this funding round.

Malaysia headquartered Paywatch secures US$30mil funding in largest raise for Earned Wage Access startup in SEAIn the US and Latin America, EWA has become a common employee benefit. And with such great momentum, Paywatch is emerging as the market’s leading change agent in Asia. As markets with different regulations and cultures are increasingly popular, the rapid adoption of earned wage access is a gratifying time, said Michael Kim, General Partner of Third Prime ( pic ).

Aligning with Malaysia’s financial inclusion vision

With a strong base of clients in Malaysia, Paywatch’s innovative EWA solution is set to enhance the financial well- being of Malaysian workers, one of the outcomes stated in the country’s National Financial Inclusion Strategy.

Paywatch argued that its instant access to earned wages supports the Malaysian government’s efforts to combat income disparity and foster financial stability among its citizens.

First time for US university endowments

The direct investment by the Vanderbilt University and the University of Illinois Foundation in Paywatch is regarded as a milestone in the market because it marks the first time these endowment funds from US universities have made an investment in an Asian tech startup.

We have long supported financial inclusion, and we think Paywatch’s earned wage access technology can help the movement advance significantly. Beyond the technology, we also believe in the company’s dedication and commitment to delivering true impact in Southeast Asia”, shares Travis Shore, Chief Investment Officer of the University of Illinois Foundation.

The Paywatch management team with founders, Alex Kim (4th from right) and Richard Kim (5th from right).

Continue Reading

Darkest days before the dawn

By:
On:
In: South-East Asia
Darkest days before the dawn
At Chon Buri province’s Laem Chabang deep-sea interface, containers are being prepared for trade. ( File photo: Nutthawat Wichieanbut )

After the release of the federal budget, financial experts predict that the situation will bottom out in the next half of the month. However, the market is currently at one of its worst points.

According to Nonarit Bisonyabut, an economist at the Thailand Development Research Institute ( TDRI), things typically seem to be at their worst just before things start to improve.

Mr. Nonarit attributed a short-term decline in the country’s economy to a number of factors, most notably the slow funding of the federal budget and great domestic and international interest rates, which discourage investment.

Politics a probable move

He claimed, however, that as interest rates drop globally, the position will increase. Interest rates were just lowered by the European Central Bank, and the US is projected to experience another reduction this season.

” I’m calling it the’ 4am business’ because we’ll view a ray of light immediately. We’ve seen lower interest rates, he said, with Thailand likely to follow suit and the US expected to make four cuts next month.

Mr. Nonarit stated that as soon as the details of government jobs are made clear, state spending may start in May and may continue to increase. The trade industry, however, is showing signs of improvement, and so is the global market.

” That means we’ll be entering the sun, and the sector is expected to start growing again”, he said.

But, a nation’s economic growth depends heavily on its ability to meet the needs of the world’s economy and address challenges brought on by an aging society.

Also, the state of politics is also retard the economic treatment, particularly if Prime Minister Srettha Thavisin is removed from office, causing social problems.

In the most recent cabinet reshuffle, Pichit Chuenban was criticized for his controversial appointment as the PM’s Office secretary. 40 lawmakers, who had accused the prime minister and Pichit of breaking government minister morals, started the investigation.

They asked the court if the pair should be removed from office under Section 160 ( 4 ) and ( 5 ) of the constitution, which deals with the ethics of cabinet ministers.

They claimed that Pichit, who had represented Thaksin Shinawatra in a corruption case in 2008 and spent time in jail for contempt of court, was inadequate to hold a cupboard position.

The social climate also affects the business. If the land has to find a new prime minister, state laws will be further delayed”, Mr Nonarit said.

Nonarit: Politics may trick recovery

Digital pocket the main concern

The TDRI researcher asked whether the Pheu Thai-led administration’s policies over the past nine months have had an impact on the economy, noting that the government is focusing more on the digital budget plan than other small-scale monetary measures.

” The state has to save money for the cash handout program, so there are no smaller initiatives to wax the rims”, he said.

There remains a major question mark over foreign assets, he said. Although some major companies claim they intend to travel to Thailand, it is too early to say whether the prime minister’s outside journeys will have any impact.

” There are basic factors that may pull investments, such as human resources and skill set. He claimed that this is the major challenge, and that long-term planning is required to handle this.

According to Mr. Nonarit, the government should take short-term steps and begin addressing economic reforms, particularly building the workforce to support the business, once political uncertainty has vanished and social security has been established.

Weak imports, lower paying

Tanit Sorat, vice- chairman of the Employers ‘ Confederation of Thai Trade and Industry ( EconThai ), said the export sector, which is traditionally Thailand’s driving force, remains weak, so supply chains have been affected.

Due to the low purchasing power of local and international markets, the industrial firm’s production accounts for 60 % of its full potential.

As a result, the services, logistics, employment and transport industries are all suffering from this downturn of financial activity.

The circumstance for companies has become worse as a result of global factors, including the US-China trade war and the Middle East’s tensions, particularly those involving shipping vessels in the Red Sea.

A high level of household debt has caused a negative situation for companies and raised cash concerns for businesses as a result of poor customer spending.

” Only the tourism industry seems to be surviving, but the sector makes up for 8 % of the country’s GDP”, he said.

On international investments, he said businesses make lengthy- term expense plans, which are not likely to be halted only by social issues.

Last year saw investment principles of more than 600 billion rmb, of which 70 % was the result of foreign direct investment.

Government” sitting on its arms”

In the past nine times, Mr. Tanit claimed that the government has hardly done something. The government chose to wait for the electronic wallet system rather than start a signal program to increase profitability and start a bill suspension.

The prime minister should have started working right away because he is a businessman. He is aware that businesses require small incentives and debt payment suspensions to keep up with rising household debt. He thinks like a politician, not a businessman”, he said.

He noted that the car manufacturers ‘ supply chain has experienced a 23 % contraction, and that other struggling industries include sugar, cassava, and rubber.

Half of export clusters have also contracted, and without government intervention, the supply chain will be dragged down, he noted.

The government should develop a plan to increase public spending and increase production while the rollout of the digital wallet is in progress. Operating at 50–60 % of their total capacity, businesses will not be able to retain workers, he said.

” Can the government also suspend debt for a year?” This is a short- term measure. And for the digital wallet, the government should ensure it can be spent anywhere, not just in convenience stores”, he said.

Tanit: Export sector remains weak

The ruling party, according to deputy finance minister Paopoom Rojanasakul, has always said that the nation is experiencing economic stagnation and that the digital wallet handouts are intended to lift it from its slumber.

Mr. Paopoom attributed the slow economy to three factors: the inaction of the 2024 fiscal budget, ineffective fiscal and monetary measures to stimulate the economy, declining consumer confidence in spending, and contraction in loans, particularly for small and medium-sized enterprises ( SMEs ).

” In short, the fiscal sector lacks ammunition, and while the monetary sector has it, it refuses to use it. Banks are cautious about extending loans as a result of this. With all these elements, the country’s economy is sluggish”, he said.

State funds begin to flow.

Mr. Paopoom claimed that funds have been injected into the system since the 2024 fiscal budget bill was finally approved after a protracted delay.

Additionally, measures are now in place to accelerate investments in state enterprises which meet 95 % of the government’s target.

More money will be injected into the system as a result of the rollout of the digital wallet scheme, which is scheduled to take effect in October of this year.

The deputy finance minister claimed that due to the slow production and lack of consumption, Thailand has lost its appeal.

He acknowledged that business decision-making depends also on political stability. He expressed confidence in the government’s efforts to solve the country’s economic problems and the introduction of a number of fiscal measures, including soft loans, as well as upcoming loan guarantee measures.

Central bank must play a role

He argued that the Bank of Thailand must cooperate with the government in order to carry out its measures, and he also emphasized the necessity of interest rate reductions.

We have remained unwavering about the necessity of lowering interest rates because they do not conform to the economic conditions. Interest rates appear higher than they should be with the current inflation rate of 0.6 % to 0.7 %, which is below the lower 1 % threshold.

Mr. Paopoom added that much-needed reforms like the Virtual Bank project, credit guarantee upgrades, and the retirement lottery policy are in the works and that the economy is on track to recover, particularly in the second half of this year.

Paopoom: Banks cautious about extending loans

Continue Reading

Commentary: US plans to downgrade marijuana to low-risk drug is a regressive step

By:
On:
In: South-East Asia

Advocates applaud the Biden administration’s decision to unwind its prohibition on cannabis for addressing what they claim is an asymmetrical drug enforcement strategy that has disproportionately affected some communities and caused mass incarceration. This commendation, however, seems contradictory because it overlooks the potential negative effects a walk might have on socio-economically underprivileged and underprivileged neighborhoods already ravaged by the drug epidemic.

Experimental evidence from states that have adopted harm reduction methods, such as Portugal, the Netherlands, Switzerland, Canada, and Australia, reveals combined benefits.

For example, the Netherlands, known for its governed sale of cannabis through therefore- called” coffeeshops”, continues to face problems of drug hospitality and related social ills where children as young as 14 years old are recruited as” cocaine lovers”. The Dutch government warned the Dutch of the danger of becoming a “narco-state” in an article published in the Guardian in January 2024.

In Sweden, the number of deadly shootings has more than doubled since 2013, reaching 391 in 2022, mainly due to group- related medicine and arms conflicts. In December, a lawyer representing the victims of the teen shootings claimed that” kids are carrying the Swedish drug businesses on their arms rather than their own bags.”

Also, Canada and Australia, despite their complete harm reduction strategies, repeatedly face drug- related crime and health issues. In 2023, British Columbia decriminalised medication to reduce opioid levels, but only to discover it wave by 5 per share, the BBC reported. Officials in BC are currently considering revising the prohibition against the possession of painful medicines in public spaces.

Thailand, which is much closer to home, plans to decriminalize marijuana for usage only two years after it first became the first country in Southeast Asia to do so.

These instances demonstrate the complexity and potential negative effects of calm drug laws, especially for those who are at risk.

Singapore stays unwaveringly committed to preventing the intergenerational cycle of violence, arrest, confinement, and re-incarceration for this reason.

Singapore’s method, guided by knowledge and practical considerations, prioritises injury prevention over harm reduction and serves as a solid framework for tackling this widespread issue.

Tan Chong Huat, the president of the National Council Against Drug Abuse (NCADA ), and Narayanan Ganapathy, a member of NCADA, are both NCADA members.

Continue Reading