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US Supreme Court conservative justices lean toward allowing transgender sports bans

WASHINGTON — Conservative US Supreme Court justices appeared ready on Tuesday to uphold state laws banning transgender athletes from female sports teams amid escalating efforts nationwide to restrict the rights of transgender people.

The justices heard more than three hours of arguments in appeals by Idaho and West Virginia of decisions by lower courts siding with transgender students who challenged the bans in the two states as violating the US Constitution and a federal anti-discrimination law. Twenty-five other states have similar laws on the books.

The Supreme Court, which has a 6-3 conservative majority, backed other restrictions on transgender people in rulings issued last year. Republican President Donald J. Trump’s administration defended the laws during the arguments.

Conservative justices raised concerns about imposing a uniform rule on the entire country amid sharp disagreement and uncertainty over whether medications like puberty blockers or gender-affirming hormones eliminate male physiological advantages in sports. Questions by the liberal justices mostly signaled sympathy for the transgender challengers.

Sports are “kind of a zero-sum game for a lot of teams,” conservative Justice Brett Kavanaugh told Joshua Block, a lawyer for the transgender challengers. “And someone who tries out and makes it, who is a transgender girl, will bump someone from the starting lineup, from playing time, from the team, from the all-league (honors), and those things matter to people, big time.”

Kavanaugh, who has coached girls’ basketball teams, suggested that because the 1972 Title IX civil rights law that bars sex discrimination in schools, and its related regulations, permit teams separated by biological sex, it should be up to Congress to change that.

The Idaho and West Virginia laws designate sports teams at public schools including universities according to “biological sex” and bar “students of the male sex” from female athletic teams. The states said the laws preserve fair and safe competition for women and girls.

“If women don’t have their own competitions, they won’t be able to compete,” Alan Hurst, Idaho’s solicitor general arguing for the state, told the justices.

“Idaho’s law classifies on the basis of sex, because sex is what matters in sports,” Hurst said. “It correlates strongly with countless athletic advantages, like size, muscle mass, bone mass and heart and lung capacity.”

WIDER REPERCUSSIONS
The case could have wider repercussions for transgender people and affect whether other measures targeting them in the public sphere — including military service, bathroom access, treatment in classrooms and designations in official documents such as passports — can be enforced.

The challengers argued that the Idaho and West Virginia measures discriminate based on an individual’s sex or status as a transgender person in violation of the Constitution’s 14th Amendment guarantee of equal protection under the law, as well as Title IX, which bars discrimination in education “on the basis of sex.”

Part of the arguments focused on how the Idaho law treats people differently, whether based on sex or their status as transgender, and whether that would require the court to more skeptically assess the reasons expressed by states for adopting such measures — a form of judicial review called intermediate scrutiny.

“There’s no question here that a male who identifies as a female, but is a male, is being excluded from a female sport,” liberal Justice Sonia Sotomayor told Hurst. “By its nature, that’s a sex classification. And all sex classifications, we have said repeatedly in our case law, require intermediate scrutiny.”

The plaintiffs also contend that the use of certain medications by transgender students should matter regarding whether states can lawfully apply these bans to them if it can be shown that they do not possess sex-based physical advantages.

Kathleen Hartnett, another lawyer for the challengers, said the Idaho plaintiff mitigated the physical advantage through the use of testosterone suppressants and estrogen, eliminating the ban’s justification.

Defenders of the bans said they are valid regardless of individual circumstances, and that physical advantages remain despite medical treatments.

“Denying a special accommodation to trans-identifying individuals does not discriminate on the basis of sex or gender identity or deny equal protection. All of that remains true even assuming a man could take drugs that eliminate his sex-based physiological advantages,” said Justice Department lawyer Hashim Mooppan, arguing for the Trump administration.

Conservative Justice Samuel Alito asked Hartnett to address some of the concerns expressed about transgender women athletes.

“There are an awful lot of female athletes who are strongly opposed to participation by trans athletes in competitions with them,” Alito said. “What do you say about them? Are they bigots? Are they deluded in thinking that they are subjected to unfair competition?”

Hartnett said she would not call them that.

“That’s the reason why there is intermediate scrutiny,” Hartnett said. “You don’t legislate based on undifferentiated fears.”

Hartnett added that transgender athletes who have excelled in their sports are “actually few and far between.”

ANTI-DISCRIMINATION LAW
The court in 2020 delivered a landmark ruling protecting transgender people from workplace discrimination under a different law, called Title VII, that contains wording similar to Title IX.

Conservative Justice Neil Gorsuch, who authored the Title VII decision, appeared to indicate, along with some other justices, that the rationale of the Title VII ruling may not extend to Title IX in part because of regulations adopted under a 1974 law called the Javits Amendment that allowed for sex-separated sports teams.

“Javits changed Title IX, and it said, you know, sports are different – and we’ve got these regulations that have been out there for 50-plus years,” Gorsuch told Block. — Reuters

NFL’s wild-card drama scores huge ratings

THE NFL’s blockbuster regular season rolled straight into wild-card weekend, and the audiences followed.

Fox opened on Saturday with the Rams’ 34-31 victory over the Panthers drawing 28 million viewers, up 7% over last year in the same time slot for the biggest Saturday afternoon wild-card audience on any network since 2011, Front Office Sports reported.

Prime Video then shattered streaming records as the Bears’ 31-27 win over the Packers averaged 31.6 million, which is Amazon’s largest NFL audience by far and the most-watched exclusively streamed game in league history, topping Netflix’s late-afternoon Christmas matchup (27.5 million). The figure was 43% higher than last year’s streaming wild-card game on Amazon.

Sunday kept the surge going. CBS’ early window featuring the Bills’ 27-24 win over the Jaguars delivered 32.7 million viewers, the best early Sunday wild-card number on record for any network.

Fox’s late game, the 49ers’ 23-19 victory over the defending champion Eagles, led the entire weekend at 41 million for Fox’s biggest wild-card audience since 2015. It marked a 14% jump over the comparable slot a year ago.

NBC’s primetime game, with the Patriots ousting the Chargers, 16-3, averaged 28.9 million, narrowly behind last year’s comparable game but still the most-watched Sunday night broadcast of any kind since last February’s Super Bowl.

ESPN’s numbers for the Texans’ 30-6 win over the Steelers on Monday night will arrive on Wednesday.

The early playoff spike aligns with the league’s regular-season average of 18.7 million viewers per game, the second highest since 1989, highlighting how every rights holder experienced growth this year, from major broadcasters to streamers. — Reuters

Alabama QB Ty Simpson spurns $6.5-M offer, enters NFL draft

ALABAMA quarterback (QB) Ty Simpson has submitted paperwork to enter the 2026 NFL Draft, according to multiple reports on Tuesday, one day ahead of the deadline for underclassmen to do so.

This followed reports on Monday that multiple college programs attempted to entice Simpson with up to $6.5-million offer to transfer and delay his decision to enter the draft.

Simpson, who declared for the NFL draft on Jan. 7, had not entered the transfer portal but did accept an invitation to the Senior Bowl. He posted “Been a great ride” on Instagram on Tuesday with a photo of his Crimson Tide locker. — Reuters

China’s trade ends 2025 with record $1.2 trillion surplus despite Trump tariff jolt

STOCK PHOTO | Image by StockSnap from Pixabay

BEIJING — China on Wednesday reported a strong export run in 2025 with a record surplus of nearly $1.2 trillion, as producers braced for three more years of a Trump administration set on slowing the production powerhouse by shifting US orders to other markets.

Beijing’s resilience to renewed tariff tensions since President Donald J. Trump returned to the White House last January has emboldened Chinese firms to shift their focus to Southeast Asia, Africa and Latin America to offset US duties.

With Beijing looking to exports to counteract a prolonged property slump and sluggish domestic demand, the record-shattering surplus risks further unsettling economies concerned about China’s trade practices and overcapacity, as well as their overreliance on key Chinese products.

The manufacturing powerhouse’s full-year trade surplus came in at $1.189 trillion — a figure on par with the gross domestic product of a top 20 economy globally like Saudi Arabia — customs data showed on Wednesday, having broken the trillion-dollar ceiling for the first time in November.

“The momentum for global trade growth looks to be insufficient, and the external environment for China’s foreign trade development remains severe and complex,” Wang Jun, a vice-minister at China’s customs administration, said at a press briefing on Wednesday.

However, “with more diversified trading partners, (China’s) ability to withstand risks has been significantly enhanced,” Mr. Wang said, adding that “the fundamentals for China’s foreign trade remains solid.”

Outbound shipments from the world’s second-biggest economy grew 6.6% in value terms year-on-year in December, compared with a 5.9% increase in November. Economists polled by Reuters had expected a 3% increase.

Imports were up 5.7%, after a 1.9% bump the month earlier and also beat a forecast for a 0.9% uptick.

“Strong export growth helps to mitigate the weak domestic demand,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management.

“Combined with the booming stock market and stable US-China relations, the government is likely to keep the macro policy stance unchanged at least in Q1.”

EXPORTS UP AS CHINA SET TO GAIN MORE GLOBAL SHARE
China’s yuan held steady following the upbeat data even as equity investors welcomed the forecast-beating numbers. The benchmark Shanghai Composite index and blue-chip CSI300 both rose more than 1% in morning deals.

The Asian economic juggernaut’s monthly trade surpluses exceeded $100 billion seven times last year, partially underpinned by a weakened yuan, up from just once in 2024, underscoring that Mr. Trump’s actions have barely dented China’s broader trade with the wider world even if he has curbed US-bound shipments.

Exports to the US slumped 20% in dollar terms in 2025, while imports from the world’s top economy were down 14.6%. Chinese factories managed to make inroads in other markets, with exports to Africa jumping 25.8% and those to the ASEAN bloc of Southeast Asian nations up 13.4%. European Union (EU)-bound shipments grew 8.4%.

Mr. Trump on Tuesday said he thinks China can open its markets to American goods, after threatening a day earlier to slap a 25% tariff on countries that trade with Iran, risking reopening old wounds with Beijing, Tehran’s biggest trading partner.

Economists expect China to continue gaining global market share this year, helped by Chinese firms setting up overseas production hubs that provide lower-tariff access to the United States and the EU, as well as by strong demand for lower-grade chips and other electronics.

A flagship of Beijing’s global industrial ambitions, China’s auto industry saw overall exports jump 19.4% to 5.79 million vehicles last year, with pure electric vehicle shipments up 48.8%. China would likely remain the world’s top auto exporter for a third year after first superseding Japan in 2023.

Beijing, however, has shown signs of recognizing it must moderate its industrial exports if it is to sustain its success, and the leadership has been increasingly cognizant and vocal about imbalances in China’s economy and the image problem outsized exports are causing.

After November’s trillion-dollar surplus data, Chinese Premier Li Qiang was quoted last week on national television as calling for “proactively expanding imports and promoting the balanced development of imports and exports.”

The country also scrapped subsidy-like export tax rebates for its solar industry, a longstanding point of friction with EU states.

Lawmakers last month passed revisions to the Foreign Trade Law after two, rather than the usual three readings, in a signal to members of a major trans-Pacific trade pact that China is prepared to shift from industrial subsidies and towards freer, more open trade.

Despite the year-long truce on tariffs that Mr. Trump and Chinese President Xi Jinping struck in late October, US duties of 47.5% on Chinese goods are well above the roughly 35% level analysts say enables Chinese firms to export to the US at a profit. — Reuters

2025 was the world’s third-warmest year on record, EU scientists say

kamchatka | Freepik

BRUSSELS — The planet experienced its third-warmest year on record in 2025, and average temperatures have exceeded 1.5°C of global warming over three years, the longest period since records began, European Union (EU) scientists said on Wednesday.

The data from the EU’s European Centre for Medium-Range Weather Forecasts (ECMWF) found that the last three years were the planet’s three hottest since records began — with 2025 marginally cooler than 2023, by just 0.01°C.

Britain’s national weather service, the UK Met Office, confirmed its own data ranked 2025 as the third warmest in records going back to 1850. The World Meteorological Organization will publish its temperature figures later on Wednesday.

The hottest year on record was 2024.

EXTREME WEATHER EVENTS
ECMWF said the planet also just had its first three-year period in which the average global temperature was 1.5°C above the pre-industrial era — the limit beyond which scientists expect global warming will unleash severe impacts, some of them irreversible.

“1.5°C is not a cliff edge. However, we know that every fraction of a degree matters, particularly for worsening extreme weather events,” said Samantha Burgess, strategic lead for climate at ECMWF.

Governments pledged under the 2015 Paris Agreement to try to avoid exceeding 1.5°C of global warming, measured as a decades-long average temperature compared with the pre-industrial era.

But their failure to reduce greenhouse gas emissions means that level could now be breached before 2030 — a decade earlier than had been predicted when the Paris accord was signed in 2015, ECMWF said.

“We are bound to pass it,” said Carlo Buontempo, director of the EU’s Copernicus Climate Change Service. “The choice we now have is how to best manage the inevitable overshoot and its consequences on societies and natural systems.”

POLITICAL PUSHBACK
Currently, the world’s long-term warming level is about 1.4°C above the pre-industrial era, ECMWF said. Measured on a short-term basis, the world already breached 1.5°C in 2024.

Exceeding the long-term 1.5°C limit — even if only temporarily — would lead to more extreme and widespread impacts, including hotter and longer heatwaves, and more powerful storms and floods.

In 2025, wildfires in Europe produced the highest total emissions on record, while scientific studies confirmed specific weather events were made worse by climate change — including Hurricane Melissa in the Caribbean and monsoon rains in Pakistan which killed more than 1,000 people in floods.

Despite these worsening impacts, climate science is facing increased political pushback. US President Donald J. Trump, who has called climate change “the greatest con job,” last week withdrew from dozens of United Nations entities including the scientific Intergovernmental Panel on Climate Change.

The long-established consensus among the world’s scientists is that climate change is real, mostly caused by humans, and getting worse. Its main cause is greenhouse gas emissions from burning fossil fuels such as coal, oil and gas, which trap heat in the atmosphere. — Reuters

Vietnam to implement cigarette excise tax from 2027; gradual hike to follow

REUTERS

HANOI — Vietnam will introduce an absolute excise tax on cigarettes starting in 2027, with rates increasing incrementally to 10,000 dong ($0.38, $1 = 26,294 dong) per pack by 2031 as part of a campaign to curb smoking, state media reported late on Tuesday.

The amended Special Consumption Tax law, passed last year, will adopt a mixed tax regime starting from 2027, combining the existing 75% base rate with an absolute levy starting at 2,000 dong per pack and rising over the following four years.

“The tax on tobacco for the 2012-2025 period is very low and had no impact on reducing consumption, while Vietnam’s per capita income has steadily increased every year,” Phan Thi Hai, deputy director of the Tobacco Harm Prevention Fund, was quoted as saying by Suc Khoe Doi Song, the official newspaper of the health ministry.

Vietnam has raised tobacco taxes twice since 2013, but officials say the increases have had little impact on smoking.

The health ministry reported that the current tax burden on tobacco represents only 36.8% of retail prices, well below the 70-75% level recommended by the World Health Organization, and also much lower than the rates seen in neighboring ASEAN countries, including Thailand at 78.6% and Singapore at 67.1%.

The health ministry on Tuesday proposed further changes to the Tobacco Harm Prevention Law, including the expansion of smoke-free areas, the tightening of retail restrictions, the enlarging of health warnings to cover 85% of cigarette packets, and imposing advertising and marketing bans to restrict youth access.

Vietnam health officials estimate that approximately 100,000 deaths occur annually as a direct or indirect result of smoking.

The health ministry last year said Vietnam had more than 15 million smokers in 2024, ranking it among the world’s top tobacco-consuming countries.

The ministry warned that the affordability of cigarettes remained a significant barrier to reducing tobacco use, particularly among men. — Reuters

Vietnam expects to sign deal to export 2.5 million tons of rice to Philippines

REUTERS

HANOI — Vietnam expects to sign an agreement to export 2.5 million metric tons of rice to the Philippines this year, state media reported on Wednesday. 

The Philippines, which has for years been Vietnam’s largest market for rice, suspended rice imports during the last four months of 2025 to support domestic production. 

But it plans to import 3.6 million tons of rice this year, with most of the grain to be sourced from Vietnam, Voice of Vietnam radio reported, citing an official with the Embassy of Vietnam in the Philippines.

The comments came after a meeting between Philippine Agriculture Secretary Francisco Tiu Laurel and Le Phu Cuong, Commercial Counselor at the embassy. 

The Philippines will implement measures to control rice import volumes this year, including tariffs, the report added. — Reuters

At least 25 killed after crane falls on train in Thailand, police say 

Wreckage at the site where a train was derailed when a construction crane collapsed and fell onto its carriages, causing several casualties, in Sikhio district, Nakhon Ratchasima province, Thailand, January 14, 2026. — REUTERS/CHALINEE THIRASUPA TPX IMAGES OF THE DAY

BANGKOK — A train derailed in northeastern Thailand on Wednesday after a construction crane fell on three of its carriages, killing at least 25 people and injuring about 80, police said.

The accident took place on Wednesday morning in the Sikhio district of Nakhon Ratchasima province, 230 kilometers (143 miles) northeast of Bangkok, on a train from the capital bound for Ubon Ratchathani province.

“The death toll has now reached 25. The search for more bodies is ongoing,” Police Colonel Thatchapon Chinnawong told Reuters by phone.

Transport Minister Phiphat Ratchakitprakarn said in a statement that there were 195 people on board, adding that he had ordered a thorough investigation to be carried out.

Those killed were in two of the three carriages hit by the crane, he said.

The crane was working on a high-speed rail project when it collapsed and hit the passing train, causing it to derail and briefly catch fire.

Images shared by the ministry showed carriages overturned next to shrubland and firefighters extinguishing a blaze as smoke billowed out.

Footage of the crash site verified by Reuters shows rescue workers trying to extract casualties from one of the buckled carriages, with some badly injured passengers already being loaded into ambulances.

The elevated high-speed rail project, one of several under construction in Thailand, was being built above the existing rail line. Part of the collapsed crane is still propped up by the stanchions built to support the new rail link.

Chinese Foreign Ministry spokesperson Mao Ning said at a press briefing that the Chinese government attached great importance to the safety of projects and personnel and was looking into the situation.

“At present, it seems that the relevant section was under construction by a Thai enterprise. The cause of the accident is still under investigation.”

The high-speed rail project will connect to China through Laos. The government said last year that more than a third of construction had been completed in the segment connecting Bangkok to Nakhon Ratchasima, and the whole line to Nong Khai at the border with Laos would be ready by 2030. — Reuters

Jollibee CFO says growth supports 2027 US listing of international arm

BW FILE PHOTO

MANILA/SINGAPORE — Jollibee Foods Corp’s JFC.PS international business is “ready to be a standalone”, its global chief financial officer said on Wednesday, as the Philippine fast food group prepares to spin off overseas operations to list on a US exchange in late 2027.

The plan unveiled on January 5 envisages retaining the Manila listing of its Philippine business. The company’s shares have climbed nearly 16% year-to-date, for a market capitalization of about $3.9 billion, LSEG data showed.

There were “so many reasons to believe that international is ready to be a standalone and the potential is there to continue because of the growth rate,” said Richard Shin, the global chief financial officer.

The international business accounted for 6,800 of Jollibee’s 10,300 stores by the end of last year’s third quarter, he told reporters.

Over the past 15 quarters its store network racked up compound annual growth of 26.7%, outpacing the group’s overall expansion of 15.1%, he added.

Mr. Shin said the spin-off would simplify the group’s structure and improve transparency, allowing investors to assess the domestic and international businesses on a standalone basis.

The United States offers capital markets with a large investor base experienced in valuing global consumer and restaurant growth companies, Mr. Shin said.

A listing there would provide greater liquidity, deeper capital markets and broader analyst coverage, he added.

Jollibee operates across 33 countries with brands such as Jollibee, Chowking, Smashburger, and Tim Ho Wan.

Known for the flagship brand of the same name, which offers menu items from sweet-style spaghetti to fried chicken, it has expanded its store base internationally alongside a broader multi-brand portfolio. — Reuters

Saks Global files for bankruptcy after Neiman Marcus takeover leads to financial collapse

SAKS Fifth Avenue flagship store in Toronto, Canada. — CAN PAK SWIRE/FLICKR

NEW YORK — High-end department store conglomerate Saks Global filed for bankruptcy protection late on Tuesday in one of the largest retail collapses since the pandemic, barely a year after a deal that brought Saks Fifth Avenue, Bergdorf Goodman and Neiman Marcus under the same roof.

The move cast uncertainty over the future of US luxury fashion, though the retailer said early on Wednesday its stores would remain open for now after it finalized a $1.75 billion financing package and appointed a new CEO.

Former Neiman Marcus CEO Geoffroy van Raemdonck will replace Richard Baker, who was the architect of the acquisition strategy that left Saks Global saddled with debt.

The company also appointed former Neiman Marcus executives Darcy Penick and Lana Todorovich as chief commercial officer and chief of global brand partnerships at Saks Global, respectively.

Saks Fifth Avenue, the retail arm of Saks Global, listed $1 billion to $10 billion in assets and liabilities, according to court documents filed in US Bankruptcy Court in Houston, Texas.

The court process is meant to give the luxury retailer room to negotiate a debt restructuring with creditors or sell itself to a new owner to stave off liquidation. Failing that, the company may be forced to shutter.

A retailer long loved by the rich and famous, from Gary Cooper to Grace Kelly, Saks fell on hard times after the COVID pandemic, as competition from online outlets rose, and brands started more frequently selling items through their own stores.

The original Saks Fifth Avenue store, known for displaying exclusive brands like Chanel, Cucinelli and Burberry, was opened by retail pioneer Andrew Saks in 1867.

FINANCING DEAL
The new financing deal would provide an immediate cash infusion of $1 billion through ‌a debtor-in-possession loan from an investor group, Saks Global said. Reuters earlier reported the loan was led by Pentwater Capital Management in Naples, Florida, and Boston-based Bracebridge Capital.

Financing worth $240 million would be available through an asset-backed loan provided by the company’s asset-based lenders, according to the company.

The luxury retailer will have access to $500 million of financing from the investor group once it successfully exits bankruptcy protection, expected later this year, the company added.

A host of luxury brands were among the unsecured creditors, led by Chanel and Gucci owner Kering at about $136 million and $60 million respectively, the court filing said. The world’s biggest luxury conglomerate, LVMH, was listed as an unsecured creditor at $26 million. In total, Saks Global estimated there were between 10,001 and 25,000 creditors.

In 2024, Mr. Baker had masterminded the takeover of Neiman Marcus by Canada’s Hudson’s Bay Co, which had owned Saks since 2013, and later spun off the US luxury assets to create Saks Global, bringing together three names that have defined American high fashion for over a century.

The $2.7 billion deal was built on about $2 billion in debt financing and equity contributions from investors including Amazon, Salesforce, and Authentic Brands, which were listed in the court filing as equity investors in Saks Global.

NEIMAN MARCUS DEAL ADDED DEBT
The Neiman Marcus deal was designed to create a luxury powerhouse, but it saddled Saks Global with debt at a time when global luxury sales were slowing, complicating an already difficult turnaround for CEO and veteran executive Marc Metrick.

Saks Global struggled last year to pay vendors, who began withholding inventory, disrupting the company’s supply chain and leaving it with insufficient stock.

The thinly stocked shelves may have driven shoppers away to rivals like Bloomingdale’s, which posted strong sales in 2025, compounding pressure on Saks Global.

“Rich people are still buying,” Morningstar analyst David Swartz said last month, “just not so much at Saks.”

Running out of cash, Saks Global last month sold the real estate of the Neiman Marcus Beverly Hills flagship store for an undisclosed amount. It had also been looking to sell a minority stake in exclusive department store Bergdorf Goodman to help cut debt.

On December 30, it failed to make an interest payment of more than $100 million to bondholders. — Reuters

Indonesian ride-hailing industry set for shake-up under draft presidential decree

GRAB SINGAPORE

JAKARTA — Millions of Indonesian ride-hailing drivers would receive major increases to financial and social benefits under a draft decree being considered by President Prabowo Subianto, two sources said, threatening the profitability of ride-sharing platforms in their largest market in Southeast Asia.

Mr. Prabowo is under pressure to respond to drivers’ demands for better pay and conditions, particularly after their involvement in widespread student-led protests in August demonstrated the political clout of the sector’s workforce.

The debate also comes amid concerns about driver welfare as a result of a potential merger between the two largest ride-hailing platforms in the country, Indonesia’s GoTo and Singapore-based rival Grab. Critics of the deal say it will create a monopoly that will work against drivers.

The draft rules, seen by Reuters, details of the concessions, and potentially immediate enforcement via a presidential decree have not previously been reported. It was not clear if this was the final draft or when it would be enforced.

The decree under consideration would slash caps on commissions – the amount ride-hailing companies take from drivers for each trip – to 10% from the current 20%.

Indonesia is the only country in Southeast Asia that places caps on commissions for two-wheel ride-hailing services, and a cap would further limit the platforms’ margins.

Platforms would also have to pay for drivers’ accident and death insurance in full – which could cost companies about $1 a month for each of the roughly seven million delivery drivers in the ride-hailing industry.

It would also split health, old-age, and pension premiums for industry workers, potentially driving up hiring costs further.

“Most of the players in the industry cannot sustain these changes,” an industry source, who has seen the draft, told Reuters, expressing concern that the insurance fees would mean skyrocketing annual spending.

A second source, who also confirmed the proposals, warned that costs of premiums borne by platforms could lower margins and reduce the number of drivers they are able to allow on their platform.

Such benefits have for years been resisted by companies, which insist drivers are gig workers not eligible for the same insurance available to full-time employees.

The draft also authorizes the government to review agreements between the companies and online transportation workers, and protects the right to unionize.

The Indonesian government and the presidential office did not respond to Reuters requests for comment.

POLITICAL FORCE
The administration of President Prabowo has been particularly sensitive to appeasing drivers. Presidential spokesperson Prasetyo Hadi has labeled them “heroes of the economy.”

“Motorcycle taxi drivers have become an increasingly visible political force, staging multiple protests over commission rates and rights and drawing significant public attention to their grievances,” Siwage Dharma Negara, a senior fellow at the ISEAS-Yusof Ishak Institute in Singapore, said.

He said the death of a motorcycle taxi rider during the August protests sharply intensified public scrutiny of gig workers’ vulnerability, and likely increased political urgency around worker protection.

In 2024, Indonesia led the ASEAN taxi market with a 37% share, based on its population and rapid uptake of digital payments, data from India-based research firm Mordor Intelligence showed.

The decree under consideration would also apply to on-demand logistics firms such as Lalamove, a Hong Kong-based company, and global logistics service firm J&T Express, which is listed on the Hong Kong stock exchange. — Reuters

Cambodia to keep up crackdown on scam centers after arrest of alleged mastermind 

Police raided a suspected Philippine offshore gaming operator hub in a building in Parañaque City. — PHILIPPINE STAR/EDD GUMBAN

CAMBODIA’S arrest of alleged scam center kingpin Chen Zhi and his extradition to China was “not the end” of the Southeast Asian nation’s battle to stamp out trans-border crimes, its foreign minister said.

Last week’s surprise arrest of Chinese-born Mr. Chen is a key step in an until now fragmented international campaign targeting sophisticated scam networks in Southeast Asia run by criminal gangs, swindling victims worldwide out of billions of dollars.

The extradition of Mr. Chen, sanctioned by several countries and indicted by the United States for wire fraud and money laundering, followed a joint investigation by China and Cambodia, details of which have not been made public.

“It’s a continued combat, and we have set measures and steps in order to eradicate this crime,” Cambodian Foreign Minister Prak Sokhonn said in a rare interview from Phnom Penh, the capital.

Cambodia has always been determined to crack down on transnational crimes, especially crimes employing new technology, such as online scam organizations, he told Reuters.

“The fact that Chen Xi was arrested and extradited to China is just reflecting this firm commitment of Cambodia to combat the crime. And it’s not the end of the combat.”

He gave no details of the investigation into Mr. Chen but said full cooperation with Beijing had started months ago.

BILLIONAIRE CONGLOMERATE HEAD
Mr. Chen, an enigmatic billionaire in his late 30s, heads the Prince Group conglomerate, based out of Cambodia with scores of ostensibly legitimate businesses worldwide.

But US authorities have said those were fronts for “one of the largest investment fraud operations in history”.

Last year, Prince Group rejected as baseless the accusations against Mr. Chen.

Hong Kong, Singapore, and Taiwan have frozen hundreds of millions of dollars in assets linked to Prince Group, while Britain and South Korea have imposed sanctions.

Last year, US prosecutors seized about $15 billion in bitcoin linked to Mr. Chen and Cambodia has liquidated the Prince Bank he founded.

It is not clear what Mr. Chen will be charged with in China, which set up a special task force in 2020 to investigate Prince Group, Chinese court documents dating to 2022 showed.

Last week, China’s state broadcaster showed video of Mr. Chen arriving in Beijing handcuffed and hooded.

It said Mr. Chen was wanted for fraud and running illegal casinos and described him as the “leader of a major transnational gambling and fraud crime syndicate”.

The scams, operated from vast compounds in countries such as Cambodia, Myanmar, and Laos, involve tens of thousands of workers.

Among them are human trafficking victims lured by promises of jobs in industries such as technology and hospitality, forced to cheat strangers online or face brutal punishment.

Cambodia has “very close cooperation” on transnational crime with countries such as the United States, China, South Korea, and neighbors Vietnam and Thailand, the Cambodian minister said.

“This is the result of a long investigation,” Prak Sokhonn added, referring to the events that led to Mr. Chen’s extradition.

“Chen Zhi had Cambodian nationality, but when we made those investigations and found that his nationality was not legally obtained and he is also a Chinese national … we have decided to extradite him to China.” — Reuters