Home Blog Page 1254

Swiss court convicts two execs for embezzling $1.8 billion from 1MDB

A construction worker talks on the phone in front of a 1Malaysia Development Berhad (1MDB) billboard in Kuala Lumpur, Malaysia, Feb. 3, 2016. — REUTERS

BELLINZONA, Switzerland — The Swiss Federal Criminal Court convicted on Wednesday two executives at an oil exploration company for embezzling more than $1.8 billion from Malaysia’s state investment fund 1MDB.

Swiss-British national Patrick Mahony and Swiss-Saudi Tarek Obaid were also ordered to pay back more than $1.75 billion to the fund, which was at the center of an international kleptocracy scandal.

The difference between the two amounts was interest payments the fraudsters paid back to 1MDB during the scam.

The verdict was the latest episode in the 1MDB affair, a complex tale of international corruption that has buffeted a slew of financial institutions and individuals across the globe since allegations of wrongdoing first surfaced in 2015.

Prosecutors alleged that Mr. Mahony and Mr. Obaid had helped to set up a joint venture with 1MDB by creating the impression that their company, PetroSaudi, was backed by the Saudi government.

This was not in fact the case, but the accused managed to persuade 1MDB’s board into signing up to the scheme in 2009 before going on to defraud the fund, prosecutors said

“The accused deceived the members of the 1MDB board of directors into believing that Petrosaudi had links with the Saudi Arabian government and that PetroSaudi would contribute significant oil assets to the joint venture,” the court said.

“These statements were false, and the accused knew this very well.”

According to the indictment, the two executives defrauded the wealth fund of $1.8 billion to enrich themselves, with Mr. Obaid getting at least $805 million and Mr. Mahony at least $37 million

They were both convicted of fraud, criminal mismanagement and money laundering by the court in the southern Swiss city of Bellinzona.

Mr. Obaid was sentenced to seven years in prison, while Mr. Mahony received a sentence of six years. The court said the sentences differed because Mr. Obaid had enriched himself more than Mr. Mahony.

“The court took into account the very high amounts involved, the intensity of the criminal activity, (and) the selfish motive,” it said.

The two men had denied any wrongdoing. Mr. Obaid’s lawyer said his client had immediately filed an appeal against the verdict.

“Mr. Obaid has always contested the commission of any offense,” said Daniel Zappelli. “The reasoning of the court has not taken into consideration very numerous factual and legal aspects that we had brought before it.”

Mr. Mahony’s lawyer did not respond to a request for comment.

Prosecutors said the two men created the fraudulent scheme with fugitive Malaysian financier Jho Low, an adviser to former Malaysian prime minister Najib Razak, who is already in prison over his role in the multi-billion dollar scandal.

Initially extracting $1 billion from 1MDB so it could buy a stake in their venture, the accused took a further $830 million from the fund between 2010 and 2011 as part of an Islamic loan that followed on from their tie-up, prosecutors said.

Between September 2009 and at least July 2015 the accused arranged for bank accounts to be opened in Switzerland to help launder the millions, prosecutors said.

They used the money to buy real estate in Switzerland and London, jewelry and private equity, as well as to develop the PetroSaudi business from which they received a sizeable income, and to maintain “a lavish lifestyle,” prosecutors said.

Malaysian and US investigators estimate a total of $4.5 billion was siphoned away from 1MDB following its inception in 2009, implicating figures including Razak, Goldman Sachs staff and high-level officials elsewhere.

1MDB, the former sovereign wealth fund which is currently trying to recover its stolen assets, welcomed the judgment.

“We welcome today’s verdict…. which means that Patrick Mahony and Tarek Obaid will face justice for their role in embezzling and defrauding the people of Malaysia,” a spokesperson said. — Reuters

China’s airspace intrusion a ‘wake-up call’ for Japan — US Republican lawmaker

ALEJANDRO LUENGO-UNSPLASH

TOKYO — The intrusion of a Chinese spy plane into Japanese airspace is a “wake-up call” for Tokyo about the aggressive nature of China’s leadership, US lawmaker John Moolenaar, who chairs the House Select Committee on China said on Wednesday.

The incident on Monday involving a Y-9 reconnaissance aircraft flying near the southern Kyushu island was the first time a Chinese military aircraft had breached Japan’s airspace, according to Tokyo, which told Beijing it was “utterly unacceptable.”

The Chinese foreign ministry said on Tuesday it was still trying to understand the situation.

We’ve “seen a very different China in the last few years and the question is what’s the best way to deter future aggression and malign activity,” Mr. Moolenaar, who is a Republican member of the House of Representatives, said in an interview in Tokyo on Wednesday.

His visit to Japan, with half a dozen members of a bipartisan committee that has looked at topics ranging from China’s exports of fentanyl precusor chemicals to Beijing’s influence over US businesses, comes as President Joseph R. Biden’s administration looks to expand restrictions on semiconductor manufacturing equipment exports.

While Japan has worked with its US ally to restrict shipments of such technology, unlike Washington it has avoided trade curbs that directly target its neighbor and largest trading partner.

A new rule that will broaden US powers to halt semiconductor manufacturing equipment exports to China from some foreign chipmakers will exclude Japan, the Netherlands and South Korea, two sources told Reuters last month.

In Japan, Mr. Moolenaar met trade and industry minister Ken Saito, who oversees Japan’s technology exports and is meeting with the Prime Minister Fumio Kishida and other senior Japanese officials.

“The question is what’s the best way to deter future (Chinese) aggression and malign activity. We don’t want to feed into a military complex that can be used against us,” he said. — Reuters

Iran operated fake human resources firm to root out unfriendly spies, researchers say

REUTERS

AN IRANIAN hacking group ran a fake professional recruiting business to lure national security officials across Iran, Syria and Lebanon into a cyber espionage trap, according to new research by US cybersecurity firm Mandiant, a division of Alphabet’s Google Cloud.

Researchers said the hackers are loosely connected to a group known as APT42 or Charming Kitten, which was recently accused of hacking the US presidential campaign of Republican candidate Donald Trump. APT42 is widely attributed to an intelligence division of the Iranian Revolutionary Guard, an expansive military organization based in Tehran. The FBI has said it is investigating APT42’s ongoing efforts to interfere in the 2024 US election.

The mission uncovered by Mandiant dates back to at least 2017 and was active until recently. At different times, the Iranians made their operation appear as if it was controlled by Israelis. Analysts say the likely purpose of the impersonation was to identify individuals in the Middle East who were willing to sell secrets to Israel and other Western governments. It targeted military and intelligence staff associated with Iran’s allies in the region.

“The data collected by this campaign may support the Iranian intelligence apparatus in pinpointing individuals who are interested in collaborating with Iran’s perceived adversarial countries,” the Mandiant report said. “The collected data may be leveraged to uncover human intelligence (HUMINT) operations conducted against Iran and to persecute any Iranians suspected to be involved in these operations.”

Iran’s mission to the United Nations did not immediately respond to a request for comment.

Mandiant found that the digital spies used a network of websites impersonating human resources companies to manipulate Farsi-speaking targets. The bogus firms were named VIP Human Solutions, also known as VIP Recruitment, Optima HR and Kandovan HR, among others. They leveraged dozens of inauthentic online profiles on Telegram, Twitter, YouTube and social media platform Virasty, which is popular in Iran, to promote the front companies. Nearly all the associated internet accounts have since been removed.

“VIP Recruitment, a center for recruiting respected military personnel into the army, security services and intelligence from Syria and Hezbollah, Lebanon,” said a statement on one of the websites. “Join us to help each other impact the world. Our duty is to protect your privacy.”

The hackers cast a wide net by using various social media platforms to disseminate links about their fake HR scheme. It is unclear how many targets ultimately fell for the ruse. The collected data, which included addresses, contact details and other resume-related data, could still be exploited in the future, Mandiant said. — Reuters

Deadly typhoon Gaemi made worse by climate change, scientists say

PHILIPPINE STAR/MIGUEL DE GUZMAN

SINGAPORE — A devastating typhoon that tore through the Philippines, Taiwan and China last month, destroying infrastructure and leaving more than 100 people dead, was made significantly worse by human-induced climate change, scientists said in a report on Thursday.

As another typhoon made landfall in Japan, climate researchers said warmer seas were providing extra “fuel” for tropical storms in Asia, making them more dangerous.

Typhoon Gaemi swept across East Asia beginning on July 22, with more than 300mm (11.81 inches) of rainfall falling on Philippine capital Manila in just one day.

Wind speeds as high as 145 mph (232 kph) drove storm waves that sank an oil tanker off the Philippine coast and a cargo ship near Taiwan. Rain from Gaemi also caused fatal mudslides in the Chinese province of Hunan.

Typhoon Gaemi’s wind speeds were around 9 mph more intense and its rainfall up to 14% higher as a result of warmer sea temperatures, according to scientists in a report from World Weather Attribution, an alliance of researchers that analyze the relationship between climate change and extreme weather.

“With global temperatures rising, we are already witnessing an increase in these ocean temperatures, and as a result, more powerful fuel is being made available for these tropical cyclones, increasing their intensity,” Nadia Bloemendaal, researcher at the Royal Netherlands Meteorological Institute, told a briefing on Wednesday ahead of the report’s release.

At the same briefing, Clair Barnes, research associate at London’s Grantham Institute, said typhoons were now 30% more likely to occur compared to the pre-industrial age, warning that they will become even more common and intense if global temperature increases reach 2 degrees Celsius (3.6 Fahrenheit).

East Asia is accustomed to extreme weather, but its flood prevention infrastructure and emergency response planning are coming under increasing pressure, said Maja Vahlberg, a climate risk consultant with the Red Cross Red Crescent Climate Centre.

“Even our best efforts are being stretched to their limits,” she said. — Reuters

Smart and MOONTON unveil revamped tournament format and Battle Trips for Mobile Legends: Bang Bang Professional League Philippines Season 14

PLDT mobile services provider Smart Communications, Inc. (Smart) and international gaming developer and publisher MOONTON Games are partnering for the 14th season of the Mobile Legends: Bang Bang (MLBB) Professional League Philippines (MPL PH) from Aug. 16 to Oct. 6.

With its theme “Heroes Within,” MPL PH Season 14 will feature eight teams, namely Blacklist International (BLCK), Falcons APBren (FCAP), Fnatic Onic (FNOP), RSG Philippines (RSG), Smart Omega (OMG), Team Liquid Philippines (TLPH), TNC Pro Team (TNC), and the newly minted team AURORA (RORA), which will field celebrated esports athletes from various MPL teams.

The eight teams will compete for a US$150,000 prize pool and the opportunity to represent the country in the upcoming M6 World Championship in Kuala Lumpur, Malaysia, in November. 

New tournament format

Fans can expect a more intense and exciting season as MOONTON announces the Open Global Transfer System, which enables mid-season transfers between MPL and MDL teams within the MLBB Esports ecosystem. This means MPL teams may also tap agent imports from other MPL regions, including free agents.

Moreover, teams will play two best-of-three (BO3) matches against seven other teams, and their ranking will be based on points. The lower bracket final has also been changed to a best-of-seven series to determine the strongest opponent for the Grand Finals.

Get in on the action with Smart Battle Trips

As the official telco partner of MPL PH, Smart is also set to launch “MPL PH Smart Battle Trips,” which will give community heroes and student leaders a chance to watch the MPL matches live. 

Fans can also anticipate “Smart Heroes Within,” a content series highlighting the exceptional performances and season statistics of the MPL players. This series aims to celebrate the skill, strategy, and dedication of the league’s top players, providing fans with an insider’s view of the numbers defining the season’s most impressive plays. 

“Our longstanding partnership with MOONTON is one of our flagship esports collaborations aimed at empowering Filipinos with the best mobile gaming experience,” said Alex O. Caeg, Head of Smart Consumer Wireless Business.

“Smart has been a staunch advocate of Philippine esports because we’ve always believed that with the right support, Filipinos can dominate esports with our passion, talent, and skill,” said Lloyd R. Manaloto, First Vice-President, Prepaid Marketing, Content and Business Development of Smart.

On the other hand, avid esports fans can watch the action-packed games live anytime and anywhere on the Smart Facebook page and Smart Livestream App.

Enjoy a Seamless Gaming Experience with ‘No-Expiry’ Magic Data

Smart subscribers can now level up their mobile gaming experience with Smart Magic Data, which provides open-access data without expiry. With Magic Data, gamers can enjoy uninterrupted and immersive gameplay without constantly reloading. Subscribers may register to Magic Data by logging into the Smart App or their go-to mobile wallet app, dialing *123#, or heading to the nearest retailer or convenience store.

Smart powers MPL PH Season 14 with its superior mobile network, which was recently recognized for delivering the Philippines’ Best 5G Coverage Experience by independent network analytics from Opensignal.

Know more about how Smart enables subscribers to level up their gameplay by visiting https://smart.com.ph/prepaid.

 


Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

Philippines wants more liquidity in bonds to lure global funds

BLOOMBERG

The Philippines is looking to improve liquidity in its domestic government bond market, according to a top official, to make its debt more attractive to global funds.

National Treasurer Sharon Almanza told Bloomberg that authorities were trying to address foreign investors’ concerns. One of them is a lack of liquidity in the market.

“We are building a benchmark to make the securities in the domestic market liquid,” she said in a telephone interview. Investors “want the bonds to be tradable.”

She did not say what other measures might be taken to enhance turnover in the debt market or when any changes would take place.

Joining international financial benchmarks like the JPMorgan Chase & Co.’s emerging markets debt gauge can be a watershed moment for a country by facilitating inflows of overseas funds.

Accession to the US bank’s emerging market bond index might attract between $10 billion and $12 billion, according to an estimate by the Department of Finance cited by the Inquirer in an article published earlier this month.

As it stands, the Philippines has different types of local-currency notes, including a large portion of debt tailored to retail investors, which is often held until maturity. The country was excluded from a JPMorgan index earlier this year due to a lack of liquidity in its global peso notes.

The country also frequently sells US currency bonds. It raised $2.5 billion via such instruments this week.

Prior to joining a gauge, countries are typically placed on a watch list, and are encouraged to make various financial market reforms. India acceded to JPM’s flagship EM bond index in late June, having been under scrutiny for eligibility for three years.

Officials in Manila are also looking to resolve matters of taxation, Ms. Almanza said.

The country has a 20% withholding tax on interest income, according to PWC, though treaties with countries like the US and the UK provide for a lower rate. — Bloomberg

Pioneer Insurance salutes Filipino athletes’ Paris Olympic triumph

Nesthy collage: Two-time Olympic medalist Nesthy Petecio with Pioneer Insurance President and CEO Betty Medialdea, Pioneer Chairman Ernesto O. Chan, and Pioneer General Accident Head Jenny Tolentino during Pioneer’s courtesy call for the Philippine National Team last July 2023

Pioneer Insurance joins the whole nation in celebrating the historic achievements of our Pinoy athletes at the 2024 Paris Olympics. Pioneer has supported Team Philippines for over 30 years, providing 24/7 Personal Accident Insurance for athletes, coaches, and training staff as they pursue sporting excellence here and abroad.

Pioneer Group Head Lorenzo Chan, Jr. expressed his immense pride for the competitors. “Our athletes showed what dedication and a never-give-up attitude can achieve. May their incredible journeys inspire us to chase our dreams and make every moment count,” Mr. Chan shared.

The Philippines’ Olympic medal haul included two gold medals from Carlos Yulo in Artistic Gymnastics (Men’s Floor Exercise and Men’s Vault) and two bronze medals from Aira Villegas and Nesthy Petecio in Boxing.

Mr. Chan said these victories highlight the importance of adequate insurance coverage for athletes, especially during pre-game preparations and training.

“In sports, anything can happen. Our athletes can find confidence knowing that they have someone they can rely on every step of the way, and through injuries and victories,” Mr. Chan said.

Pioneer’s long-standing history with sports dates back to 1975 when it insured the iconic Thrilla in Manila heavyweight boxing bout between Muhammad Ali and Ali Frazier. Another significant milestone took place in 1991 when it was designated as the exclusive insurer of the Southeast Asian Games in Manila, where it extended P720 million worth of personal accident cover to all athletes and sportswriters from the nine participating countries.

Pioneer Group Head Lorenzo Chan, Jr., PSC Commissioner Bong Coo, Pioneer Insurance President and CEO Atty. Betty Medialdea with athlete medalists of the 32nd SEA Games last July 2023. Pioneer doubled the insurance cover of our SEA Games medalists.

In July 2023, Pioneer doubled the insurance coverage of the 2023 Southeast Asian Games medalists, most of whom competed in the Paris 2024 Olympics.

Mr. Chan expressed gratitude for the opportunity to support Team Philippines at the biggest sporting event. “We’re honored to have played a part in their success,” Mr. Chan added.

Pioneer is a leading insurer in the Philippines. It is committed to offering life and non-life insurance to clients from socioeconomic classes A to D. Its dedication extends to supporting national programs, including those that uplift our national team.

 


Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

US, Chinese officials to wrap up talks on Taiwan, military communication

REUTERS

 – US National Security Adviser Jake Sullivan met one of Chinese President Xi Jinping’s top military officials on Thursday as he wrapped up three days of talks in Beijing intended to ease simmering tensions between the two superpowers.

Sullivan was expected to push for enhanced working-level military to military communications in his session with General Zhang Youxia, vice chairman of China’s paramount military body, the Central Military Commission, White House officials said.

It is the first meeting between Mr. Zhang and a Biden administration official, and the first between a senior US official and a vice chair of the commission since 2018.

“Your request for having this meeting with me demonstrates the value the US government puts on military security and our military-to-military relationship,” Mr. Zhang said as the pair met at the Ba Yi Building – the headquarters of the People’s Liberation Army.

“I know it is rare that we have the opportunity to have this kind of exchange and given the state of the world and the need for us to responsibly manage US-China relations, I think it’s a very important meeting,” Mr. Sullivan replied.

Mr. Zhang is believed to be close to Mr. Xi and has survived turmoil in the country’s military ranks. Western and Asian diplomats say he is more powerful than China’s defense minister, who more frequently meets foreign officials.

Mr. Sullivan will also talk further with China’s top diplomat Wang Yi on Thursday, seeking to calm tensions ahead of the Nov. 5 US election.

With their teams gathering behind closed doors at a lush resort on the outskirts of the Chinese capital, items on the agenda are likely to include contrasting views over the Middle East and Ukraine, Chinese territorial claims from Taiwan to the South China Sea and trade.

In lengthy meetings on Wednesday, the pair discussed the prospect of fresh talks soon between Presidents Joe Biden and Xi Jinping as well as possible communications between theatre-level military commands – a long-sought demand from Washington.

“The key to the smooth development of China-US interaction lies in treating each other as equals,” Mr. Wang told Mr. Sullivan, according to state broadcaster CCTV.

“The two sides held candid, substantive, and constructive discussions on a range of bilateral, regional, and global issues,” the White House said.

In the final months of his presidency, Mr. Biden has pushed direct diplomacy to influence Mr. Xi and keep those tensions at bay; US Vice President Kamala Harris, the Democratic candidate in November’s election, would likely pursue a similar strategy.

However, many analysts aligned with former President and current Republican candidate Donald Trump see that approach as too soft in the face of China’s increasingly assertive foreign policy.

The US also wants China to take more action at home to prevent the development of chemicals that can be made into fentanyl, the leading cause of US drug overdoses, and reach an understanding about safety standards for artificial intelligence.

Beijing plans to express its disapproval over US tariffs on a range of manufactured goods and export controls targeting Chinese chip makers, and talk about its claims of sovereignty over democratically ruled Taiwan. – Reuters

Trump reposts lewd remark about Harris on his social media site

Reuters

Republican presidential candidate Donald Trump on Wednesday reposted a lewd social media remark about Vice-President Kamala Harris, the latest in a volley of demeaning attacks by Republicans against Mr. Trump’s Democratic rival.

The comment was made by another Truth Social media user, who wrote, below a picture of Ms. Harris and Mr. Trump’s 2016 Democratic rival, Hillary Clinton: “Funny how blowjobs impacted both their careers differently…”

The remark appears to be a reference to former San Francisco Mayor Willie Brown, who briefly dated Harris over two decades ago. A frequent right-wing line of attack against Ms. Harris is that Mr. Brown fueled her political ascent. The Clinton jab is a reference to her husband, former US President Bill Clinton, who had an affair with White House intern Monica Lewinsky in the 1990s.

The Trump campaign did not immediately respond to a request for comment on the post. The Harris campaign, Mr. Brown, Hillary Clinton, and Bill Clinton also did not immediately respond.

Mr. Trump’s amplification of the post comes amid a torrent of racist and sexist attacks from him and his allies against Harris, the first woman and first Black and South Asian person to serve as US vice president.

Since replacing President Joe Biden atop the Democratic ticket, Harris has surged in the polls and now leads Mr. Trump in most recent national surveys.

Mr. Trump has struggled to fully adjust to the new race, and still often muses about facing Mr. Biden, 81, in the Nov. 5 presidential election.

Mr. Trump has called Ms. Harris “crazy,” “nuts” and “dumb as a rock,” and has falsely suggested that she previously downplayed her Black heritage. Some of Mr. Trump’s donors and advisers want him to hew more closely to critiques of his rival’s policies, and members of the “Black Americans for Trump” coalition have warned that disparaging Ms. Harris could hurt him in his outreach to Black voters.

Mr. Trump has repeatedly defended his use of personal attacks.

Last year, Mr. Trump was found liable of sexually abusing writer E. Jean Carroll. Mr. Trump denied the allegations. – Reuters

Typhoon Shanshan makes landfall in Japan, killing 3 and snarling air traffic

By MODIS imagery from NASA's Aqua Satellite - EOSDIS Worldview, Public Domain, https://commons.wikimedia.org/w/index.php?curid=151897495
By MODIS imagery from NASA’s Aqua Satellite – EOSDIS Worldview, Public Domain, https://commons.wikimedia.org/w/index.php?curid=151897495

 – At least three people were killed in southwestern Japan on Thursday as Typhoon Shanshan made landfall in Kagoshima prefecture, bringing heavy rain and very strong winds as well as snarling air traffic and knocking out power to over a quarter million households.

Major automakers including Toyota 7203.T and Nissan 7201.T suspended operations in some or all of their domestic factories due to the storm.

The typhoon, with gusts of up to 55 meters per second (198 km per hour/123 mph), made landfall near Satsumasendai city located in the country’s southwestern island of Kyushu on Thursday morning, the weather agency said.

Authorities warned the storm could be one of the strongest ever to hit the region, and local governments have issued evacuation orders for millions of residents in several prefectures.

Three people were dead, one was missing, two were severely injured, and five suffered minor injuries because of the typhoon, Chief Cabinet Secretary Yoshimasa Hayashi said.

As this typhoon is moving slowly, total amount of rain could be rather big,” Hayashi told a regular news conference.

Footage from public broadcaster NHK showed walls torn and window glass of buildings broken in Miyazaki city in southern Kyushu, with objects scattered on the street or hanging from utility poles.

More than 250,000 households in seven prefectures are experiencing power outage as of 9:00 a.m. on Thursday (0000 GMT), according to Kyushu Electric Power Co.

After hovering over Kyushu for the next few days, the storm is expected to approach the central and eastern regions, including the capital Tokyo, around the weekend, the weather agency said.

Airlines, including ANA Holdings 9202.T and Japan Airlines 9201.T, have already announced cancellations of more than 600 domestic flights. Train services have been suspended in many areas of Kyushu.

Typhoon Shanshan is the latest harsh weather system to hit Japan, following Typhoon Ampil, which also led to blackouts and evacuations, earlier this month. – Reuters

South Korea’s Yoon says $830 bln public pension fund needs urgent reform

South Korean President Yoon Suk-yeol. — REUTERS

 – South Korean President Yoon Suk Yeol said on Thursday the national pension fund, one of the world’s largest with $830 billion of assetsneeds urgent reform to make it more equitable and to ensure income security for an ageing population.

There had been a loss of confidence in the pension system across generations and there was a need for fundamental and sustainable reform to restore the trust of those who needed it in retirement, Yoon told a televised briefing.

“Now is the time to fundamentally reform the national pension system that has the confidence of neither the elderly nor the youth,” he said.

Mr. Yoon said the contributions paid in must be increased to ensure the fund is sustainable and the rate of increase also differentiated between age groups to make it more equitable.

“We will pursue reforms that will be persuasive to the youth who will be paying into the fund the longest and will be receiving pension the last.”

“A pension system that leaves the elderly poor and young people suspicious must fundamentally be reformed,” he said.

South Korea’s public pension fund, established in 1988 and currently the world’s third-largest with 1,113.5 trillion won ($833.98 billion) in assets, is expected to be depleted by 2055 as payments start to outpace contributions from 2041.

The contribution rate into the pension scheme, which is mandatory for wage earners and business owners, is 9% of income, compared to 10.6% in the United States, 18.3% in Japan and an average of 15.4% for members of the Organization for Economic Co-operation and Development (OECD).

The average payout is 31.2% of average pay, compared to the OECD average of 50.7%, meaning South Korea’s elderly are among the poorest out of OECD economies.

Reforming the system has been a policy goal for a series of South Korean presidents but there has been little progress because of disagreements on how to approach the issue.

Mr. Yoon also said he was pushing ahead with ambitious healthcare reforms, saying the focus is now on improving the quality of medical care in essential disciplines and regions outside of large cities.

More than 10 trillion won will be invested over five years to improve services in those areas, he said.

Mr. Yoon’s push for healthcare reform has been met by strong objections from doctors, who reject his plan to increase the number of new medical students each year to address a shortage of physicians. Thousands of young doctors walked off the job in February in protest over the reforms, disrupting hospital services. – Reuters

Chinese Embassy in Philippines protests remarks made by Japan ambassador concerning South China Sea dispute

PHILIPPINE COAST GUARD PHOTO

 – China‘s embassy in the Philippines on Thursday said it had sent a diplomatic note of protest to the Japanese embassy in the Southeast Asian country concerning “irresponsible” remarks its ambassador made regarding the South China Sea‘s Sabina Shoal.

In a statement, the Chinese embassy said the comments displayed “ignorance of the facts and contained unwarranted accusations against China” after Japan‘s ambassador on Monday tweeted a video of a Chinese coastguard vessel under the words “another unacceptable development around Sabina Shoal”. – Reuters