BlackRock tasks Yik Ley Chan to lead SEA private credit as demand increases | FinanceAsia

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Global investment giant BlackRock has appointed Yik Ley Chan to lead the firm’s private credit team in an expanded remit for Southeast Asia (SEA). 

Chan (pictured) will be based in Singapore and will become responsible for the origination and execution of private credit investments. The appointment takes effect next month in July, according to a company media release. He will also join the firm’s Asia Pacific (Apac) private credit leadership team. 

Chan has 16 years’ experience in financial services, of which more than 13 years were spent on structuring private credit and financing solutions. He was most recently Asia head of private credit at Jefferies, where he oversaw markets in SEA including Singapore, Malaysia, Vietnam, Indonesia and the Philippines. Yik Ley previously played a senior structurer role for Credit Suisse, covering SEA and frontier markets.

BlackRock’s global private debt platform manages $85 billion across the asset class. The global private debt team has over 200 investment professionals in over 18 cities globally as of December 2023.

BlackRock’s Apac private credit platform currently invests in opportunities throughout Australasia, South Korea, Japan, Greater China, India, and SEA.

Celia Yan, head of Apac private credit, BlackRock, said in the release: “SEA is an exciting region offering promising opportunities for private credit, as corporates look for ways to finance transformation beyond traditional avenues. Yik Ley’s wealth of investment experience and local insights will be of immense value to our clients, while strengthening our investment capabilities throughout developed and emerging markets in Apac.”

Deborah Ho, country head of Singapore and head of SEA, BlackRock, added: “Client demand for private markets investments has increased dramatically – a trend we believe is here to stay.”

For more FinanceAsia people moves click here. 


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Power imbalance beckons US, Japan to South China Sea – Asia Times

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The annual local security summit held by the International Institute for Strategic Studies in Singapore in the first few days of June, Shangri-La Dialogue, featured a number of significant events.

They included violent remarks from the newly elected Chinese protection minister, Admiral Dong Jun, obvious protests against civilian deaths in Gaza from both Malaysian and Indonesian presidents, as well as a surprise appearance by Ukrainian president Volodymyr Zelensky, who was there to rally support among South Asian and additional middle-income nations for his peace summit in Switzerland on June 15 and 16?

However, the Philippines ‘ President Ferdinand” Bongbong” Marcos won undoubtedly the most awards for his claim that a South China Sea conflict would almost certainly be regarded as a war action if a Filipino soldier was killed by a Chinese water weapon during a fight.

Given that an “act of war” would summon the 1951 common security agreement between the United States and the Philippines, the rules of which Austin himself reaffirmed when signing fresh Bilateral Defense Guidelines in May 2023, the American Secretary of Defense, was somewhat more cautious on this matter. But the concept had yet been sent, loud and clear.

President Marcos’s note, made in response to a query from a Financial Times columnist, sent both a joy and a shiver around the space. A South Asian leader’s strong resistance to Taiwanese bullying was a delight to many people.

The implications, however, were chilling because they showed that a conflict between the country’s two most powerful military forces may arise not just over the unavoidable issue of Taiwan, where preparations and negotiations offer hope for averting issue, but also over the numerous disputed reefs and submerged shoals of the South China Sea, where there is a high risk of errors and accidents at ocean.

The China Coast Guard is now able to apprehend any foreign regional who violates any formally established sea demarcations in the South China Sea, as a new Taiwanese order did on June 15. A Chinese ship collided with a Philippine send on June 17 and a Filipino seaman suffered serious injuries as a result of the decree.

This also raises the possibility that, in contrast to the hope that no Filipino service members will perish as a result of Chinese stress on their missions, China may choose to acquire fishermen, coastguards, or other personnel and carry them hostage in exchange, daring its opponents to intervene or forcing them to communicate.

It is a troubling promise. But there is no denying that there will still be unpleasant encounters at sea and severe words exchanged between the involved governments, perhaps for decades.

Since the middle of the 1990s, China and the Association of Southeast Asian Nations ( ASEAN ) have been discussing the need for a” code of conduct” for maritime operations in the South China Sea, but nothing has changed. This reflects two underlying challenges.

The first is that China views the entire South China Sea as a significant proper space that it wants to command, and possibly the East China Sea as well.

General Chiang Kai-shek’s desire to travel in the South China Sea on an “eleven-dash line” that he had created in 1947, was first expressed by the next Chinese head. The Chinese Socialists, who defeated him in 1949, subsequently adopted and modified that image.

The state is still in place despite the fact that there have been 10 dashes on China’s recognized 2023 map in the last 70 years.

This is in contrast to a 2016 case brought by the Philippines at the International Court of Arbitration in The Hague, which determined that the dashed range is in violation of the UNCLOS.

China may want to keep its options available and its opponents guessing, but it has never explicitly stated whether this claim is one of geographical sovereignty or simply corporate control. According to the order from June 15, it may now want to firm those concepts, at least in some South China Sea regions.

There is a significant power imbalance between China on the one hand and the Southeast Asian nations on the other, which has really emerged in the last 20 years or so with the huge Chinese military build-up.

While China then possesses the nation’s largest maritime force, nothing of Indonesia, Malaysia, the Philippines or Vietnam has been able to build up their own troops in reply, either because of economic failure or competing political interests.

Only the city-state of Singapore and tiny Brunei, two of the ASEAN nations that are located in or close to the South China Sea, spend more than 2 % of their GDP on defense. Singapore’s 2023 defense budget of US$ 13.4 billion was more than double the$ 6.1 billion spent by the Philippines.

Indonesia, the largest ASEAN country by population ( 275 million ) spent$ 8.8 billion, but that was a mere 0.62 % of GDP. China’s official defense budget in 2023 was$ 219 billion.

That enormous imbalance reflects both China’s remarkable record of economic growth and its great-power aspirations. Given that economic growth in Indonesia, Malaysia, the Philippines, and Vietnam is currently faster than that in China, there is a good chance that this imbalance will shrink over the coming decades.

If those four nations were to achieve an average of 7 % per year between now and 2050, and China’s average annual growth rate were to slow to 3 %, their combined economic heft would equal 45 % of China’s annual GDP by the middle of the century, compared to just 15 % today, or even more if exchange rates moved in Southeast Asia’s favor.

This expansion would discourage China from moving its militaries around in the South China Sea, thereby enabling the Philippines and others to build much stronger military forces. The issue is that redressing that enormous economic imbalance will require time, whereas the potential crises, conflict, and miscalculations are occurring right now.

The best long-term strategy is to aim for sustained economic growth while gaining from the diversification that many businesses are pursuing away from China. The best short-term strategy must still be to stay close to the two best non-ASEAN friends that the United States and Japan have in the South China Sea.

If and until that enormous power imbalance can be reduced, the role in the US and Japan region will only continue to grow.

Formerly editor- in- chief of The Economist, Bill Emmott is currently chairman of the&nbsp, Japan Society of the UK, the&nbsp, International Institute for Strategic Studies&nbsp, and the&nbsp, International Trade Institute. His new book,” Deterrence, Diplomacy and the Risk of Conflict Over Taiwan“, will be published by Routledge on July 15.

This is the original of an earlier version of Bill Emmott’s Global View, which was published in Bill Emmott’s article in English and Japanese on the Mainichi Shimbun in Japan. It is republished here with kind permission.

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Singapore a ‘very attractive place’ to develop new climate technology: Bill Gates

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Relationship WITH TEMASEK, ENTERPRISE SINGAPORE

By signing a memorandum of understanding ( MOU) to identify and support budding climate technology in Southeast Asia in April, the company made an announcement to collaborate with government agency Enterprise Singapore and state investment firm Temasek.

A joint money responsibility over the next three years is included in the MOU, which was announced at Ecosperity Week 2024.

The Breakthrough Energy Colleagues program will establish a hub in Singapore, its first provincial hub outside of the United States, to accomplish this.

Through the program, Singapore does co-fund and support deep-tech climate start-ups that deal with solar power and carbon footprint. This aims to assist the place in achieving its net-zero goal by 2050.

The program’s first grain money will be US$ 500,000. They may also get a worldwide network of business companions, mentors, experts, and investors.

” Breakthrough Energy looks at a full spectrum of game-changing solutions to address global warming,” said Lee Chuan Teck, president of Enterprise Singapore.

But you’ll be looking at a variety of technologies, including new non-carbon materials like gas and gas carriers, as well as novel ways to extract carbon from the atmosphere.

Calling the engagement a” earn- get proposition”, Mr Lee added that Enterprise Singapore hopes to take on more partners and address different global challenges like food protection, waste treatment, and healthcare.

Vice-president Ashley Grosh of Breakthrough Energy Fellows praised the “unprecedented professional skills” at Nanyang Technological University and the National University of Singapore.

We are hoping to instill the entrepreneurial spirit in all those experts in the area because we are aware of how much development and research is happening there, she said.

Singapore’s area also allows Breakthrough Energy to employ industry and business partners, added Ms Grosh.

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Indonesia’s ‘giveaway’ minister faces growing pressure to resign after worst cyberattack in years

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JAKARTA: Indonesia’s Communications and Informatics Minister Budi Arie Setiadi is facing growing calls to resign following an continued ransomware assault on the country’s national statistics areas that has affected 239 organizations, including 30 federal departments and agencies.

A Change. Since the Bali-based civil society organization Southeast Asia Freedom of Expression Network ( SAFEnet ) launched its petition last week, it has received over 18, 000 signatures.

According to the petition, Mr. Budi may be held responsible for the security breach. &nbsp,

Ms. Nenden Sekar Arum, SAFEnet’s executive chairman, claims that Mr. Budi was given his name because he had backed President Joko Widodo when they ran for president in 2014 and 2019 in the same way.

” Do n’t persist’ giveaways’ like this… According to Ms Nenden, who was quoted by news outlet Kompas last Thursday ( Jun 27 ),” this ( role ) is very strategic, especially since we cannot be separated from the digital world.” &nbsp,

Mr Budi was formerly the president of Projo, a charity group founded in 2013 that encouraged and supported Mr Widodo’s run for the presidency.

In June 2023, Mr. Widodo appointed Mr. Budi as the Minister of Communication and Informatics and made him the Deputy Minister of Villages, Development of Impoverished Provinces, and Transmigration.

According to the site of his ministry, Mr. Budi earned his degree in communication sciences from the University of Indonesia and pursued post-graduate studies in social growth management.

Mr Budi has declined to comment on the complaint. ” No comment on that. That’s the right of the people to talk out”, he said, as quoted by media outlet Liputan6.

Projo, yet, said in a speech that the complaint was politically motivated. According to the party, it was created by groups that vowed to oppose Mr. Prabowo Subianto in the 2024 national election. Mr Prabowo was the candidate frequently seen to have Mr Widodo’s support in the February vote, and won by a disaster.

According to Projo secretary general Handoko, according to reports from the news website Kumparan on Sunday ( Jun 30 ),” the figures ( behind the petition ) are those who were politically opposed in the context of the 2024 presidential election.”

Mr Nenden from SAFEnet, but, denied any political goal behind the complaint. ” ( Mr Budi’s performance ) has a direct impact on the public. Because this is for the common curiosity, social issues are second-guess,” she said.

The worst ransomware attack in Indonesia in recent years resulted in data loss, data loss for the general public, and a sluggish performance of the damaged organizations’ online services.

According to Indonesian officials, the attack was carried out using program created by the Russian malware company LockBit.

The federal data centre affected store essential information including population files such as names, lists, personal identification numbers, and home files. It even stores sector- certain information, such as on national health programs and the training education.

Immigration services were also impacted by the assault, including those relating to visa applications, residence permits, and virtual passport applications. Due to the fact that card checking had to be done personally after the automatic system went over, lengthy queues formed at Jakarta’s Soekarno- Hatta Airport on June 21.

Mr Silmy Karim, Indonesia’s chairman- general of emigration, said next Friday its system had completely recovered. But, not all information was safely restored for some emigration companies, he said. &nbsp,

The government only made the announcement about the ransomware assault on Jun 24 and revealed its scope on Jun 27, during Mr. Budi’s working conference with House of Representatives people. &nbsp,

According to Mr. Budi, the Indonesian authorities has refused to pay the US$ 8 million ransom that the hackers had demanded to fetch the encrypted data. &nbsp,

The ransomware assault has likewise exposed Indonesia’s computer threats. &nbsp,

According to Mr. Hinsa Siburian, the head of Indonesia’s cybersecurity firm, known by the name BSSN, 98 % of the information in the compromised information center had not been backed up.

” Generally speaking, we see the key issue is management and there is no back-up,” he said at a legislative hearing on June 27, as reported by Reuters.

Some politicians have disputed his comment. ” If there is no up up, that’s not a lack of governance”, said Ms Meutya Hafid, the head of the commission overseeing the event. ” That’s stupidity”.

Mr. Widodo has mandated an assessment of the federal data centers.

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Singapore to tighten regulations to prevent misuse of casinos for terrorism financing

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KEY Challenges

In its assessment, Singapore has identified its vital terrorism financing threats: From criminal groups such as ISIS, &nbsp, Al- Qaeda and Jemaah Islamiyah, while also as&nbsp, possible spillovers from the ongoing Israel- Hamas war and tensions in the Middle East. Self- radicalised individuals who are friendly towards the cause of extremist groups, in particular&nbsp, ISIS, are likewise a risk.

” Considerably- right extremism is also a growing protection issue in many countries”, the authorities observed.

We don’t rule out that some people might find its anti-Islam and anti-immigration speech offensive, despite the fact that it has not gained a lot of support in Southeast Asia.

The government claimed that the updated Terrorism Financing National Risk Assessment has taken into account significant advances since its most recent release in 2020. These include the emergence of new terrorism funding risk typologies, the expansion of the modern economy and financial services in Asia, and other factors.

As in the previous version, the 2024 chance analysis observed that&nbsp, raising and moving money for terrorists and violence activities abroad remains relevant in Singapore’s environment.

Self-radicalized people continue to pose Singapore with the biggest threat to violence financing, according to the authorities.

The top five terrorism-related risk areas identified four years ago are generally comparable to those identified in 2024:

  • Cross-border online payments are identified as a possible new route for violence funding activities, and money remittances are categorized as high risk.
  • With the introduction of new cross-border quick payment systems as a potential new source of terrorism financing activities, banks are at a medium-high risk.
  • Digital repayment key service providers have been elevated from being at least moderately risk to being at least moderately risky.
  • Non-profit organizations are still at moderate to low threat, with international online fundraising identified as a growing extremism financing typology of concern.
  • Cross-border money actions are still moderately risky.
  • Valuable stones, precious metals, and valuable products even stay at medium- lower risk.

The latest report supports the priorities of the&nbsp, National Strategy for Countering the Borrowing of Terrorism, launched in 2022, which&nbsp, comprises deeds to prevent, detect, check and maintain aspects of violence financing.

According to the government, Singapore will continue to work with market people to develop strategies and measures to combat threats posed by terrorism financing.

They will also get near partnership with&nbsp, foreign counterparts, global organisations, and regular- setting bodies such as the FATF.

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The expansion of BRICS+: More may be better – Asia Times

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Malaysia&nbsp, and&nbsp, Thailand&nbsp, just unveiled their plans to join BRICS, which has been rechristened as BRICS with the induction of new people. This international bloc of developing economies in the twenty-first century is frequently seen as an emerging administrative group of the Global South countries aiming to create a robust and diverse multipolar world order.

With its list of new entrants including Egypt, Ethiopia, Iran, Saudi Arabia and the UAE, the clustering has expanded to a ten- associate- sturdy club from the four founding members – Brazil, Russia, India, China – and South Africa, which had joined the second four earlier to put the S to the name.

The BRICS team has been strengthened by China and Russia in the midst of the US punishment, as well as with the Middle East, particularly Iran. &nbsp,

BRICS now represents roughly 3.64 billion persons who constitute about 45.78 percent of the country’s inhabitants. Together, people ‘ markets are worth more than&nbsp,$ 28.5 trillion&nbsp, – about 28 % of the global economy.

At least 34 different nations have indicated their interest in joining the bloc, according to South Africa’s Minister of International Relations and Cooperation.

The gathering makes significant inroads in the ASEAN place now that Malaysia and Thailand have expressed their intentions to join BRICS . Indonesia, a former part of the ASEAN, has also expressed an interest in joining, despite having been more obnoxious about the situation. Moving ahead, Vietnam, the Lao PDR and Cambodia may be possible candidates. Rumours claim that Türkiye is considering a potential BRICS membership, which will take time.

Why are Thailand and Malaysia interested in joining?

BRICS aims to establish itself as a&nbsp, a platform for developing countries to voice their concerns and pursuits regarding the development and operation of the global financial system. The deterioration of the existing global order is a tell-tale indicator of the growing acceptance of BRICS/BRICS . The emerging relationships may not be adequately explained by looking at the BRICS/from the US-China/Russia rivalry’s files.

A closer examination of the positions of the BRICS members on issues involving international institutions and foreign governmental organizations reveals that their positions align with one another, particularly in the area of international financial architecture.

The BRICS encourages the use of local currencies in transactions between its member state while also avoiding deal in US dollars. They also support rules-based, opened, and clear global business. This goal is supported by the growth of its membership. A new choice by Saudi Arabia to&nbsp, ending a 50- time consists package with the US for multi- currency sales &nbsp, may also be read in this context.

BRICS and BRICS represent the tones of the Global South, which have been urging the World Bank and the International Monetary Fund&nbsp, ( IMF) &nbsp, to make substantial changes and to be more accountable&nbsp, &nbsp, and diverse in their view.

Moreover, BRICS has been fighting ever-present for a complete overhaul of the UN Security Council, arguing that its latest membership structure, which includes the five permanent members, does not adequately represent the interests of the worldwide community.

Malaysia’s determination to steer clear of any part results amid the growing US- China competition is natural. However, choosing the BRICS for Thailand, a long-standing and near alliance of the US, surprises some. Reading too much of the” China element” into this would be misleading.

For one thing, Malaysia joined the US-led Indo-Pacific Economic Framework ( IPEF ) much before it expressed any interest in the BRICS, despite Malaysia having yet to make its position known. Furthermore, there has been no downward tendency in Thailand’s relationships with the US and the West. BRICS, therefore, is more about grabbing more international opportunities than being a part of an pro- US/anti- Western club. The presence of India, Saudi Arabia and the UAE now dilutes any such attempt or tales, for that matter.

ASEAN and de- dollarisation

At the 42nd&nbsp, ASEAN Summit, part states agreed to encourage the use of local money for purchases. The bloc’s approach to changing from widely used economies like the US dollars appears to be this. ASEAN nations appear to be preparing themselves for any situation in which their business is impacted by any sanctions because Washington has increasingly harmed the US dollar with punitive sanctions.

It is natural that nations feel vulnerable combining robust business with China and a dependence on the US buck for trade, especially with the US- China trade war and de-coupling going on for a long time. They should be able to deal in both local and foreign currencies.

In other words, de-dollarization is a precautionary measure to guard against the event that the US imposes more sanctions on its rivals and adversaries, including Russia ( but also China ). According to Anwar Ibrahim, Malaysia needed to look at de- devaluations, and he even&nbsp, backed the concept of an Asian Monetary Fund. South Asian countries are becoming more cautious because of the economy’s involvement in US-imposed sanctions. &nbsp,

US punitive punishment

These fears are no unfounded. For example, Anwar has received threats of punishment from European nations and their staff in Malaysia because he has been very vocal about his concerns about the Palestinians ‘ situation. In December 2023, the US Treasury Department fined four Malaysian-based companies after they claimed they had assisted Iran in producing robots.

Washington accuses Iran of providing deadly robots to Russia for use in Ukraine and as a proxy for Middle Eastern terrorists, according to Washington. One of the 300 companies that Washington placed sanctions on next month is Malaysia-based semiconductor company Jatronics Sdn Bhd, which is said to have had ties to Russian military supplies.

Anwar Ibrahim made the keynote address at the SEMICON Southeast Asia 2024 technical meeting last month, claiming that his nation is the ideal “neutral and non-aligned” number for semiconductor manufacturers in the wake of the US-China technology conflict and that his government plans to entice US$ 100 billion in new investment.

Anwar praised the US as a significant investment partner and a major export market place for Malaysian chips, but he emphasized that his administration could not impose unilateral sanctions that would impede his nation’s independence.

China: not the only factor

By 2050, the BRICS members will account for about 40 % of the global economy, according to Goldman Sachs ‘ economist Jim O’Neill’s projections. Between 2012 and 2022, the BRICS countries combined contributed more than 45 % of the world’s GDP, with China alone accounting for about 25 % of this growth. &nbsp,

China is viewed as a key member of the BRICS because of its economic strength and growing role in international affairs, both from the perspective of intra-bloc trade flows and the bloc’s foreign policy perspectives. From 2009 to 2023, China has remained Malaysia’s most significant trading partner, accounting for US$ 95.8 billion in total trade.

Naturally, China’s prominence in the BRICS makes Malaysia feel more secure. China is Thailand’s largest trade partner as well. The trade between China and Thailand increased by US$ 13 billion in 2023 despite continuing to grow for the past five years. For Malaysia and Thailand to join the BRICS makes sense in terms of business. &nbsp,

That said, China is not the only factor binding BRICS together. Russia or China for that matter are both much more important than the BRICS. Southeast Asian nations like Malaysia and Thailand are already interconnected with China in a number of ways through bilateral and ASEAN-led multilateral agreements, so they do n’t need to approach BRICS forums to engage with China.

India, South Africa, and Brazil are the three main emerging economies in the modern financial system and global politics with strong ties to the US and its allies in the West and Asian worlds as well. While assessing the BRICS, it is unfortunate that these three nations have their own minilateral, IBSA, despite how inactive it is. &nbsp,

Conclusion

Despite China being neither a rising economic nor military power, it is actually one of the two superpowers and technically does not belong to the Global South any longer. BRICS, which started as a primarily economic initiative to facilitate the transmission of economic clout to the Global South, has grown into an important multilateral grouping representing the rising powers of the world. The BRICS face challenges and opportunities because of their diverse membership and the presence of China and Russia. &nbsp,

It is not likely to be a Sino-Russian-centric bloc aimed at drawing diplomatic blows at the US, though one cannot look into a crystal ball and predict the future of BRICS/BRICS . When at their best, BRICS will counteract the current West-led liberal international order by combining the world’s various viewpoints into one that best fits the bloc’s shared minimum goals rather than a Sino-Russian club with some friends.

Members ‘ deteriorating sentiments regarding Beijing’s diplomatic acceptability and the bloc’s heavy economic and trade dependence on China make the bloc vulnerable. China’s hegemonic ambitions have &nbsp, subverted this grouping of solidarity&nbsp, of the Global South especially in the context of relations with India. India’s explosive growth and growing geopolitical influence also put a strain on the BRICS’s ability to stay China-focused.

A growing multi-regional and multilateral bloc may not be able to produce any alliance-style outcomes based on the examples of other large groups like the EU or ASEAN, given the differences in economic status, cultural background, individual country agendas, and their respective balancing acts in relation to the US and its allies.

The BRICS multilateral will be further democratized by the addition of Malaysia and Thailand, keeping it a few more steps away from member dominance. Avoidance of domination, after all, is precisely what BRICS stands for.

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Southeast Asia has its reasons for pivoting to BRICS – Asia Times

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The sudden reversal of Southeast Asia toward the BRICS countries is a major game-changer that some in Washington anticipated.

In recent days, Malaysia extensive its interests to visit Brazil, Russia, India, China and South Africa. Thailand and Vietnam are even interested in joining the Association of Southeast Asian Nations, which is a group of nations.

In Indonesia, there’s growing recognition that Argentina, Egypt, Ethiopia, Iran, United Arab Emirates, Saudi Arabia and another” International South” countries have a place in vying to join this burgeoning international business.

Anwar Ibrahim, the prime minister, made the declaration in an interview with Chinese media prior to Li Qiang’s attend to Malaysia, announcing his intention to re-join the union, which has grown by a whopping 2 % in the last year. That dynamic is luring the Global South countries, primarily because it provides access to funding and a political movement that is unconstrained by Washington’s influence. &nbsp,

Joe Biden, the US senator, might find the South Asian stumbling block particularly troubling. Since the Biden time, a provincial shield has been built to counteract China’s growing influence and attempts to replace the US dollars in trade and finance.

Relationships between the US and some ASEAN people are clearly deteriorating. This, at a time when&nbsp, Saudi Arabia&nbsp, is looking to step out the “petrodollar”. As China, Russia, and Iran square off against old partnerships, Riyadh is intensifying de-dollarization work.

” A gradual reform of the international financial environment may be afoot, giving way to a planet in which more local economies can be used for international purchases“, says analyst&nbsp, Hung Tran at the Atlantic Council’s Geoeconomics Center. The money would continue to be important but without its enormous influence, which would be complemented by currencies like the Taiwanese renminbi, the euros, and the Chinese yen in a way that’s proportionate to the global footprint of their economies.

Tran points out that “in this environment, how Saudi Arabia approaches the consists continues to be a significant predictor of the economic coming.”

Malaysia’s excursion tells the story. Anwar Ibrahim, the prime minister, made a world impact by supporting Western finance. That was in the late 1990s, when Anwar’s liberal tendencies clashed with Mahathir Mohamad’s stances.

Mahathir shut Anwar down. The door was opened to Deputy Premier Anwar, who was afterwards imprisoned. Anwar’s efforts to improve competition and establish equal using fields were even reversed. Capital controls were imposed by Mahathir and Malaysia Inc. were circling the vehicles.

Then it’s Anwar who’s turning away from the Adam Smith- encouraged guidelines he once championed — and toward the&nbsp, BRICS.

” We have made our plan apparent and we have made our choice”, Anwar tells Chinese internet outlet&nbsp, Guancha. The proper process will begin immediately, according to the statement. As far as the Global South is concerned, we are totally supportive”.

Anwar gave a shoutout to Argentine President Luiz Inacio Lula da Silva, who is determined to end the economy’s dominance.

” Last month, Malaysia had the highest expenditure ever, but the money was also attacked”, Anwar explains. ” Well, it has eased in the past few months. But it does n’t make sense, it goes against basic economic principles”.

Anwar documents that the question is: Why? He claims that” a coin that is completely outside the two nations ‘ business structure and useless in terms of economic activities in the country has become prominent merely because it is used as an international money.”

Among the many reasons for Anwar’s ideological reversal is China’s emergence on the global scene, providing a regional growth engine. Another: the” Western narrative” surrounding events like Hamas’s October 7 attack on Israel.

After their meeting in Beijing on March 31, 2023, Malaysian leader Anwar Ibrahim addressed Chinese President Xi Jinping in positive terms. Image: Facebook / Anwar Ibrahim

” People keep talking about October 7, which annoys me”, Anwar says. Do you want to obliterate 70 years of history by repeating one event? This is the Western narrative. You see, this is the problem with the West. They want to control the conversation, but because they are no longer a colonial power and independent nations should be free to express themselves, we can no longer accept it.

In late May, Thailand announced it’s applying for&nbsp, BRICS&nbsp, inclusion in part to boost its presence on the world stage. If approved, Bangkok would likely become the first ASEAN economy added.

According to Nikorndej Balankura, a spokesman for the foreign ministry,” Thailand believes that BRICS has an important role to play in strengthening the multilateral system and economic cooperation between countries in the Global South, which aligns with our national interests.” ” As for economic and political benefits, joining BRICS would reinforce Thailand’s role on the global stage, and strengthen its international cooperation with emerging economies, especially in trade, investment and food and energy security”.

Thailand’s bid, according to Soumya Bhowmick, an associate fellow at the Observer Research Foundation think tank, supports Beijing’s wider strategic objectives of boosting its economic influence in Southeast Asia.

” For China”, Bhowmick notes,” Thailand’s membership represents an extension of its regional influence, complementing its Belt and Road Initiative. This is in line with China’s strategic goals of fostering stronger economic ties and the creation of new infrastructure in Southeast Asia.

The first BRIC grouping was created in 2001 by Goldman Sachs economist Jim O’Neill. The members formally joined forces in 2009; A year later, they added the” S” when South Africa joined. In 2023, the BRICS doubled in size by luring more&nbsp, Global South&nbsp, nations.

Today, BRICS nations account for half the world’s population and two- fifths of trade, including top energy producers and importers. &nbsp, BRICS nations also account for 38 % of global petroleum imports, led by China and India. &nbsp,

The grouping could give the Global South a greater voice in international affairs and challenge the domination of existing institutions, according to Daniel Azevedo, an analyst at Boston Consulting Group.

BRICS , Azevedo adds,” creates a forum that, at minimum, gives&nbsp, emerging markets&nbsp, the opportunity to align on global topics and new opportunities to promote mutual&nbsp, economic development &nbsp, and growth. And it’s evolving steadily”.

Azevedo notes that as the BRICS build political and&nbsp, financial institutions&nbsp, and a payment mechanism for executing transactions,” there are important potential implications for the future of&nbsp, energy&nbsp, trade, international finance, global supply chains, monetary policy and technological research”.

Global companies will need to take these new geopolitical and economic realities into their investment strategies, according to Azevedo. They ought to also improve their ability to take advantage of opportunities and reduce risk.

The BRICS have n’t always demonstrated their viability as a bloc. Five core nations are present, with nothing else in common besides some economists ‘ imagination. The BRICS frequently seem to be focused solely on improving access to China’s rapidly expanding economy and doing little else.

Paul McNamara, investment director at GAM&nbsp, Investments, speaks for many when he observes that the&nbsp, BRICS&nbsp, is still an acronym in search of cohesive economic argument. Would most current global elites care about the BRICS without China at the core, asks McNamara?

As such, says Ian Bremmer, president of Eurasia Group, the “impotence of&nbsp, BRICS”&nbsp, makes joining the group” a low- stakes gambit with some potential upside. It may help Thailand, which is its biggest trading partner and most worrying military threat, win over China. But, if not, what has Bangkok really lost”?

Vietnam traveled to Russia earlier this month to take part in the BRICS summit. According to Deputy Minister of Foreign Affairs Nguyen Minh Hang, Hanoi is eager to collaborate with like-minded developing nations.

At a time when political dysfunction is at its worst, and all this is happening amid deteriorating American finances. As the national debt approaches US$ 35 trillion – on the way to&nbsp, US$ 50 trillion&nbsp, – Biden’s Democrats and Donald Trump’s Republicans are barely on speaking terms.

This is not appropriate for either investing in government funding in the short run or making necessary upgrades to promote innovation and productivity over the long run. Additionally, it implies the threat of a second Capitol Hill insurrection similar to the one that occurred on January 6, 2021.

That event played a direct role in the August 2023 move by Fitch Ratings to revoke Washington’s AAA credit grade. Extreme polarization, explains Fitch analyst Richard Francis, “was something that we highlighted because it just is a reflection of the deterioration in governance, it’s one of many”.

The key is now how Moody’s Investors Service, which still assigns Washington AAA, responds to the chaos caused by Trump’s campaign promises to win back control. And as Biden attempts to overthrow Trump, Biden uses new trade sanctions.

This puts US Treasury securities in a high degree of risk. Japan and China alone have US government debt totaling$ 2 trillion. Any sudden run on the dollar could trigger a fire sale, sending US yields skyrocketing.

The Federal Reserve’s reluctance to lower interest rates as was widely anticipated increases the chance of a policy error in this regard. One of the most well-known Fed errors in history was missing the subprime crisis ‘ level of distress in credit markets in 2007.

As Fed Chairman Jerome Powell’s team prolongs the “higher for longer” era for yields, developing economies are increasingly in harm’s way. That’s especially so as the dollar’s surge hoovers up global capital.

These worries fall under the umbrella of the broader BRICS’s plan to pool more than US$ 100 billion in foreign currency to absorb financial shocks. Members can use the funds in emergencies, preventing them from visiting the International Monetary Fund. Since 2015, the bank that the BRICS created has approved tens of billions of dollars of loans for infrastructure, transportation and water.

The&nbsp, BRICS currency &nbsp, project has been gaining traction since mid- 2022, when the 14th BRICS Summit was held in Beijing. Vladimir Putin, the president of Russia, stated there that the BRICS were developing a “new global reserve currency” and were willing to expand its use.

Brazil’s Lula&nbsp, also has thrown his support behind a BRICS monetary unit. Why ca n’t a bank like the BRICS bank use a currency to finance trade between Brazil and China, as well as Brazil and all other BRICS nations? he asks. Who made the decision to use the dollar as the reserve currency following the end of gold parity?

President of Brazil, Lula da Silva. Photo: Editora Brasil 247

Fernando Haddad, Lula’s finance minister, has been making a point about the more prevalent use of local currencies in bilateral trade instruments like credit receipts. The focus, he says, must be phasing out the use of a third currency.

The benefit is that trade transactions are resolved in the currency of a non-membership-based nation, he claims.

Economist Vikram Rai of TD Bank points out that” there is great potential for regionally dominant currencies and a multipolar international regime to emerge,” with the roles being “filled now by the dollar shared with the euro, a more open yuan, future central bank digital currencies, and possibly other options we have yet to see” within the next ten or two.

Analysts at Moody’s warn that the Americans going overboard on tariffs, concerns about default and weakening institutions are threatening the dollar ‘s&nbsp, reserve currency status.

” The greatest near- term danger to the dollar’s position stems from the risk of confidence- sapping policy mistakes by the US authorities themselves, like a US default on its debt for example”, Moody’s argues. The dollar’s global role is threatened by weak institutions and a political pivot toward protectionism.

It’s difficult to believe that America could lose much more than just the economic plot as Southeast Asia increasingly leans toward the BRICS.

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Why no Taylor Swift concert for Indonesia? Complex permit processes partly to blame, says President Jokowi

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Indonesia’s largest economy is hampered by the difficult administrative procedures involved in organizing activities, especially those for concerts, according to President Joko Widodo. &nbsp,

He cited the case of music singer Taylor Swift, for example, who performed her songs in Singapore rather than Indonesia. &nbsp,

Why does Singapore manage to number these occasions consistently? At the launch of a digital licensing service event in Jakarta on Monday ( Jun 24 ), Mr. Widodo was quoted as saying by CNN Indonesia as saying that their effective service had helped them attract these artistes.

Taylor Swift’s” The Eras Tour” ended in Singapore earlier this year, with six sold-out shows taking place between March 2 through March 4 and March 7 through March 9. The news broke in the internet that Singapore and Swift had agreed to make the Republic her only South Asian stop on her global journey. &nbsp,

According to Mr Widodo, a large percentage of Swift’s crowd in Singapore comprised Citizens, referencing Spotify data that shows 2.2 million Citizens are viewers of the artiste. &nbsp,

He added that a significant factor is the government’s complete support from Singapore in facilitating access and ensuring protection for international activities.

” I asked the ( local ) organisers, and they said our licensing process is too complicated”, said Mr Widodo. &nbsp,

He further cited the yearly Mandalika Moto GP celebration held in West Nusa Tenggara as an example of Indonesia’s bulky licensing system, which is a major barrier to attracting more global activities. &nbsp,

According to Mr. Widodo, the event’s organizers needed 13 various grants and recommendation letters to hold the event. &nbsp,

Mr. Widodo described the economic impact of losing out on organizing internationally renowned events as saying that money is flowing from Indonesia to Singapore, which has left his nation with a financial loss.

” So there was money discharge, as Indonesia’s wealth went to Singapore. Not only were we losing money on music tickets, but also. But we were even losing money as people spent their money on accommodations, transportation, food, and drink”, he said, according to a record by The Jakarta Globe.

Economists estimated that Swift’s concert could contribute up to S$ 500 million ( US$ 369 million ) in tourism revenue for Singapore’s economy. &nbsp,

Mr. Widodo claimed that a situation that was almost identical occurred when Singapore hosted the British stone group Coldplay for six times in January. The group just performed one night in Jakarta next November at the Gelora Bung Karno Main Stadium as part of its Music Of the Spheres earth trip next month. &nbsp,

Mr. Widodo stressed the need for Indonesia to reduce its licensing program in order to make it more affordable for organisers to hold events involving unusual artists, in the hope that the process will be simplified in the future. &nbsp,

” With the impending automation of permits, I hope it will not only get a web company but really provide ease of control, advance certainty, lower bureaucracy, and lead to lower costs while being more receptive and transparent”, he said.

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