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Suspected state hackers stole military data from Philippines, Malaysia

A broken ethernet cable is seen in front of binary code and words “cyber security” in this illustration taken on March 8, 2022. — REUTERS

A HACKING campaign suspected to be linked to an Asian government breached seven high-profile targets in Southeast Asia and Europe, including government and military agencies, according to the cybersecurity firm Group-IB.

The newly identified hacker group, dubbed Dark Pink, used phishing emails and advanced malware to compromise the defenses of military branches in the Philippines and Malaysia, as well as government organizations in Cambodia, Indonesia, and Bosnia-Herzegovina, from September to December last year. Also targeted were a non-profit, a religious organization, and a European state development agency based in Vietnam, Singapore-based Group-IB said in a report published Wednesday.

The relevant government and military agencies in those countries didn’t immediately respond to emailed requests for comment.

“Dark Pink’s activity is significant, as it is clear that they attempted to steal documentation from compromised networks in order to find sensitive information,” said Andrey Polovinkin, a malware analyst at Group-IB. “Taking into account the group’s modus operandi, its target list that includes mainly government and military bodies, as well as their sophisticated toolset, Dark Pink is most likely a previously undocumented nation-state espionage campaign.”

The cyberattacks that likely originated from the Asia-Pacific region were aimed at corporate espionage, including by stealing documents and recording audio from targeted devices, according to Group-IB. The hackers sent their targets emails containing a website link that could be used to download a malicious file, which would then steal personal information from the infected devices including passwords, browser history, and data from social apps like Viber and Telegram.

Chinese researchers from the Zhejiang-based firm DAS-Security also published a report on WeChat last Friday on the hackers, which it named Saaiwc Group. It said the group had targeted a Vietnamese leadership initiative run by the US State Department, the Philippines military, and Cambodia’s ministry of economy and finance in May, October, and November respectively.

Government and military organizations are frequently prime targets for hackers, given the confidential and sensitive data on their networks, and email continues to be one of the common breach methods. Asia became the region most targeted by cyberattacks, according to IBM Security’s threat intelligence index last year, receiving one in four recorded attacks. — Bloomberg

US FAA has struggled to modernize computer, air traffic operations

STOCK PHOTO | Image by Rudy Dong from Unsplash

WASHINGTON — The breakdown of a key computer system, which resulted in the suspension of US flight departures on Wednesday, is not the first such issue to hinder Federal Aviation Administration (FAA) operations, and happened amid efforts to upgrade technology.

The 90-minute halt, which was caused by a problem with an alerting system that sends safety messages for pilots and others, occurred less than two weeks after a different critical air-traffic control system caused flight delays at major airports in Florida. The latest glitch disrupted more than 11,000 flights on Wednesday.

The FAA has struggled to modernize some long-standing parts of air traffic control. A 2021 Transportation Department Office of Inspection General (OIG) report repeatedly cited challenges in the FAA’s multi-billion-dollar Next Generation Air Transportation System (Next) infrastructure project.

The OIG said its work “has shown that FAA has struggled to integrate key NextGen technologies and capabilities due to extended program delays that caused ripple effect delays with other programs.”

In October, for example, the FAA said it was working to end a long-ridiculed, decades-old practice of air traffic controllers using paper flight strips to keep track of aircraft. But adopting the change at 49 major airports will take the FAA until late 2029.

The FAA has also been trying to modernize the Notices to Air Missions (NOTAM) system “to improve the delivery of safety critical information to aviation stakeholders,” according to its website. The system provides pilots, flight crews, and other users of US airspace with relevant, timely and accurate safety notices.

Last April, the FAA began investing $1 billion, out of $5 billion set aside in the infrastructure package signed into law in 2022, in repairing and replacing key equipment in the air traffic control system, including power systems, navigation and weather equipment, and radar and surveillance systems across the country.

“There’s a great deal of work needed to reduce the backlog of sustainment work, upgrades and replacement of buildings and equipment needed to operate our nation’s airspace safely,” FAA Deputy Administrator Bradley Mims said at the time.

In Florida, a system known as the En Route Automation Modernization (ERAM) used to control air traffic prompted the FAA on Jan. 2 to issue a ground stop order, slowing traffic into airports and snarling hundreds of flights.

The problem with the ERAM system at a major regional air traffic control center in Miami was behind dozens of flight delays at the Miami International Airport and flights into other airports in the southern US state.

ERAM in 2015 replaced the 40-year-old En Route Host computer and backup system used at 20 FAA Air Route Traffic Control Centers nationwide.

House Transportation Committee chair Sam Graves, a Republican, labeled as “inexcusable” FAA’s failure to properly maintain and operate the air traffic control system.

The FAA said in 2020 it was more difficult “for the FAA to hire technical talent as quickly and effectively than in the past”.

The Department of Transportation (DoT), which oversees the FAA, has struggled with information technology. In 2019, a Government Accountability Office report on federal government IT planning found the DoT was one of three major agencies without a modernization plan. — Reuters

Uniqlo owner gives Japan, Inc. a jolt with 40% wage hike

A STAFF MEMBER works at the Uniqlo flagship store in Tokyo in this April 9, 2015 file photo. — REUTERS

TOKYO — Uniqlo parent Fast Retailing Co Ltd. on Wednesday said it would raise wages by as much as 40%, a clear sign that Japan’s rock-bottom salaries may be starting to budge after decades of deflation and cost-cutting.

The move by the casual clothing giant is likely to heighten focus on worker pay ahead of annual spring labor negotiations, although it looks unlikely that the rest of Japan, Inc. will deliver increases on the same scale.

Prime Minister Fumio Kishida has repeatedly called for companies to increase wages, a plea that has gained urgency as prices have surged, leading to once-unthinkable increases in the cost of everything from food to fuel.

The poor state of pay has become arguably the greatest problem for the world’s third-largest economy. In dollar terms, average annual pay in Japan was $39,711 in 2021, well below the OECD average of $51,607 and little changed from the early 1990s.

“Fast Retailing aside, there have been a number of companies that up to last year have significantly boosted their rate of pay increases. That’s a positive factor for the Japanese economy,” said Taro Saito, executive research fellow at NLI Research Institute.

Still, he cautioned that Fast Retailing’s case was that of one company with the wherewithal to afford sharp increases, which was not true of many other Japanese companies.

Fast Retailing’s move marked the first time in at least 20 years that the company, which operates more than 3,500 clothing stores worldwide, would revise remuneration across its entire group, said spokesperson Pei Chi Tung.

The change was aimed at making the company’s work style and remuneration more globally competitive, she said, adding that there was an “urgent need” to raise pay in Japan, where it has remained low compared with overseas operations.

From March, new graduate employees would be paid 300,000 yen ($2,300) a month, compared with 255,000 yen now, representing an annual increase of around 18%, the company said. New store managers will see an increase of around 36% to 390,000 yen a month, it said.

PRICE HIKES
The wage announcement comes a year after the company said it would have to raise prices for some products due to higher costs for materials and shipping. This year it increased prices of fleece goods and down jackets in its autumn-winter product lines, in what was seen as something of a turning point for consumers.

Uniqlo’s ability to meet Japanese consumers’ zealous demand for both relatively high quality and low prices has made it known for its cosupa — cost performance — turning the maker of 2,990-yen fleece jackets and 3,990-yen selvedge jeans into a global retailer and making founder Tadashi Yanai Japan’s richest man.

But, like other Japanese companies, it is also grappling with a shrinking labor pool at home.

“We believe this is probably down to inflation and Japan’s tight labor market,” said Oshadhi Kumarsasiri, an analyst at Lightstream Research who publishes on the Smartkarma platform.

“In addition, the company’s aggressive expansion plans in markets such as the US and Europe would mean that they will need to deploy some of the trained senior staff from Japan into those markets.”

Fast Retailing’s overall personnel costs in Japan would rise about 15% from the previous year, taking into account a previous hourly wage hike for part-time workers, with the expense absorbed by productivity improvement, Tung, the spokesperson, said.

Meanwhile, drinks maker Suntory Holdings has said it is looking at raising wages more than 6%, while Honda Motor Co Ltd. has said it wants to tackle wage increases “aggressively”.

The question is whether overall increases will be enough to compensate for recent spikes in food and other consumption items.

“We welcome reports of companies that have announced aggressive wage hike policies,” Hirokazu Matsuno, the government’s top spokesperson, told a news conference.

“We believe that the best way to address the current increase in prices is to realise continuous increases in wages.”  Reuters

‘Seriously doubt’ imminent invasion of Taiwan by China — Pentagon chief

CHESS PIECES are seen in front of displayed China and Taiwan’s flags in this illustration taken Jan. 25, 2022. — REUTERS

WASHINGTON — US Defense Secretary Lloyd Austin said on Wednesday he seriously doubted that ramped up Chinese military activities near the Taiwan Strait were a sign of an imminent invasion of the island by Beijing.

“We’ve seen increased aerial activity in the straits, we’ve seen increased surface vessel activity around Taiwan,” Mr. Austin said during a press conference alongside US Secretary of State Antony Blinken and their Japanese counterparts.

“But whether or not that means that an invasion is imminent, you know, I seriously doubt that,” Mr. Austin said. — Reuters

Royal Mail export services severely disrupted after ‘cyber incident’

LONDON — Britain’s Royal Mail said on Wednesday it was facing severe disruption to its international export services following what it described as “a cyber incident”.

“We are temporarily unable to dispatch items to overseas destinations,” Royal Mail, one of the world’s largest post and parcel firms, said in a service update on its website.

It advised customers to temporarily hold any export mail items while it works to resolve the issue. The company says thousands of businesses use it to export around the world.

Royal Mail, part of International Distributions Services, said it was working with external experts to investigate the incident and had also reported it to regulators and security authorities.

Britain’s data protection watchdog, the Information Commissioner’s Office, said it would be making enquiries, while the National Cyber Security Centre said it was working with the company alongside the National Crime Agency to “fully understand the impact”.

The 507-year-old Royal Mail, which was privatized in 2013, had a rocky year last year, losing millions of pounds due to lower mail volumes and hit by a series of staff strikes in a long-running row over pay and conditions.

The Communication Workers Union (CWU), which represents more than 115,000 postal workers at Royal Mail, is planning further industrial action in the ongoing dispute, with a fresh ballot due to open later this month.

The “cyber incident” is the latest in a growing list of high-profile cybersecurity events in Britain.

The Twitter accounts of at least two senior government ministers appeared to have been hacked in recent weeks, while the Guardian newspaper said last month it had been hit by a “serious IT incident” believed to be a ransomware attack.

Royal Mail said its import services remained operational, albeit with minor delays. — Reuters

39 outstanding innovations announced as winners at the International Innovation Awards 2022

Enterprise Asia is pleased to confer the International Innovation Awards 2022 to 39 remarkable innovations. As one of the pillar of the Innovation Revolution movement spearheaded by Enterprise Asia since 2017, the award recognition program aims to create an innovation ecosystem for enterprises which is held annually to recognize outstanding innovations across the globe. This year marks the 6th edition of the awards which took place in Bangkok, Thailand in which the Awards was officiated by the Vice-Minister for Commerce of Thailand, Dr. Sansern Samalapa.

This year’s winning innovations embody the true essence of innovation in accelerating growth and efficiency and promoting inclusiveness, which aligns with the objective of the award recognition program — to provide businesses a global platform to showcase their innovations that unlock doors to a better and sustainable future and encourage organizations to continue investing in innovation.

The awards drew an exceptional mix of submissions across 19 countries such as Brazil, Cambodia, Germany, Hong Kong, Indonesia, Israel, Malaysia, Singapore, Spain, Taiwan, Thailand, the Philippines, United Arab Emirates, and United States. 39 innovations were selected and crowned winners from over 200 applications through undergoing a rigorous evaluation process by a jury of prominent judges across three categories: Product, Service & Solution, and Organization & Culture.

“We are facing a global crisis of dwindling resources. The expense of doing business rises with each passing day. This is where innovation comes in: the ‘extraordinary forces’ that businesses can unleash. Through innovation, we are not just protecting and extending our competitive edge but also future-proofing our businesses in a time of volatility, uncertainty and increasing complexity,” Richard Tsang, president of Enterprise Asia, stated in his welcome address.

Among the notable recipients of the ‘InnoCube’ under the Product Category include Far Eastern New Century with Recycled Waste-gas Based Polyester Fiber, which is the world’s first recycled waste-gas based polyester fabric, and First International Computer, Inc. of Taiwan with FIC ADD (Advertisement Display For Automotive) which provides a new styled solution for car signage, and Dubai Police with Identification System :26 Rapidly Mutating Y-STR Single Multiplex Assay, which is a multiplex system DNA kit that contains special reagents for forensic genetic laboratories to differentiate related male individuals.

For the Service & Solution Category, the Export-Import Bank of Thailand was awarded for Solar Orchestra: An EXIM Thailand’s Climate Finance For Sustainable Export, which supports solar rooftop investments and carbon credit for small-scale projects to a single registration, and Medidata Solutions International Asia Pacific Pte Ltd of Singapore with its Sensor Cloud, which is a transformational approach to managing medical-grade sensors and devices, and their clinical trial data.

Deloitte & Touche LLP of the United States claimed the accolade under the Organization & Culture Category with Deloitte Audit & Assurance: Innovating for Purpose campaign, which implements programs and initiatives to help further foster a culture of innovation in the workplace. The Road Transport Authority of the United Arab Emirates also emerged as a winner under the Organization & Culture Category with its RTA Innovation Culture Framework, which aims to make innovation an everyday practice by experimenting with new approaches to enrich its innovation culture.

Prior to the awards ceremony, the International Innovation Summit 2022 was held during the day. Themed “Building Breakthroughs with People-first Innovation,” the summit is a transformative program featuring industry leaders from around the region and provides a platform to inspire important conversations and shaping the agenda in building human-centric organizational strategies.

Over 300 innovation experts, industry leaders, and policy makers across the globe gathered at the summit to share and exchange the latest insights on adopting people-first cultures to reshape the world of work and drive lifetime employability and sustainable economic growth.

At the Summit’s opening, Enterprise Asia Chairman Dr. Fong Chan Onn expressed that “A crucial element is often overshadowed as companies raced to make the next revolutionary breakthrough — People. Putting people first enables companies to develop adaptive capabilities and adopt agile and innovative ways of working in order to evolve and future-proof their organizations. By supporting people to realize their full potential, we are able to reshape organizational culture and structure, and optimize for multi-disciplinary teamwork.”

The Summit’s speakers included Dr. Chinawut Chinaprayoon, executive vice-president of the Digital Economy Promotion Agency (depa); Jakkris Tangkuampien, Corporate Innovation coach, Ekipa Consultancy, and former Lead Innovation practitioner at Pruksa Holding, Roche Thailand & ExxonMobil Thailand; Joseph Hong, managing director of Bosch Thailand & Laos PDR; William Malek, director of the Rendanheyi SEAsia Research Center; Sayan Roy, managing director of B. Braun Thailand Ltd; Surachai Chatchalermpun, Country Cyber Security & Privacy officer of Huawei Thailand; Paul Hutton, co-founder of  Ekipa Consultancy; Vivekanand Sistla, head of R&D – Beauty & Wellbeing SEA at Unilever; Pattarapark Rangsrikitphoti, head of Data Governance at the Prudential Life Assurance; Touchaphol Threechitdhanachai, senior agile coach of Allianz Technology; Dr. Rak Vorrakitpokatorn, president of the Export-Import Bank of Thailand (EXIM Thailand); Collin Jin, Deloitte Asia Pacific Audit & Assurance Innovation leading partner of Deloitte & Touche LLP; Tsvetelina Müller, Integrated Disease Value lead Breast Cancer and Hematology at Roche; Paphonwit Chaiwatanodom, co-founder & chief executive officer of Agnos Health.

The International Innovation Awards and International Innovation Summit are endorsed by Thailand Convention and Exhibition Bureau (TCEB); supported by the Hong Kong Applied Science and Technology Research Institute (ASTRI), Digital Economy Promotion Agency (depa), Malaysian Alliance of Corporate Directors (MACD), Malaysian Thai Chamber of Commerce (MTCC), Singapore Thai Chamber of Commerce (STCC); with PR Newswire as the official news release distribution partner; Bangkok Post, BusinessWorld Philippines, Commercial Times Taiwan, Hong Kong Economic Times, Jumpstart Media Hong Kong, Kumparan Indonesia, and SME Magazine as the official media partners.

RECIPIENTS OF THE INTERNATIONAL INNOVATION AWARDS 2022

PRODUCT CATEGORY

WINNING INNOVATION

COMPANY

COUNTRY/ REGION

AXDIF – AN INTEGRATION OF PRODUCTIVITY APPS

ELABRAM GROUP

INDONESIA

BEST PROBIOTICS, WONDERFUL LIFE_SYNGEN PATENTED FUNCTIONAL PROBIOTICS SERIES

SYNGEN BIOTECH. CO., LTD.

TAIWAN

BLUE DIRECT DIODE LASER

TURNING POINT LASERS CORPORATION

TAIWAN

DELOITTE OMNIA ESG MODULE: TURNING CHAOS INTO CLARITY

DELOITTE & TOUCHE LLP

UNITED STATES

EZECOM MOBILE APPLICATION

EZECOM

CAMBODIA

FESPIXON®

ONENESS BIOTECH CO., LTD.

TAIWAN

FIC ADD (ADVERTISEMENT DISPLAY FOR AUTOMOTIVE)

FIRST INTERNATIONAL COMPUTER, INC

TAIWAN

FINSTRO TRADE: INTEGRATED B2B PAYMENTS MANAGEMENT

FINSTRO

UNITED STATES

GT BRIGHTENING C+ WITH GLUTATHIONE

GTCOSMETICS MANUFACTURING INC.

PHILIPPINES

IDENTIFICATION SYSTEM :26 RAPIDLY MUTATING Y-STR SINGLE MULTIPLEX ASSAY

DUBAI POLICE

UNITED ARAB EMIRATES

PET WASTE UPCYCLING TECHNOLOGY

FAR EASTERN NEW CENTURY

TAIWAN

RECYCLED WASTE-GAS BASED POLYESTER FIBER

FAR EASTERN NEW CENTURY

TAIWAN

TROY CAR EXOS

SHINE-ON BIOMEDICAL CO., LTD.

TAIWAN

SERVICE & SOLUTION CATEGORY

WINNING INNOVATION

COMPANY

COUNTRY/ REGION

AI RIDE DEMAND PREDICTION

CLOUD MILE INC., TAIWAN BRANCH

TAIWAN

AVIATION SECURITY RISK ASSESSMENT AND ANALYSIS SYSTEM

DUBAI POLICE

UNITED ARAB EMIRATES

BEVERAGE INNOVATION

FREDLEY GROUP OF COMPANIES

PHILIPPINES

BIG CITY SERVICES EASILY ACCESSIBLE BY PHONE

FAR EASTERN BIG CITY SHOPPING MALLS CO.,LTD.

TAIWAN

COSDENT SMILE DESIGN

COSDENT CO., LTD.

THAILAND

D8AI BOT AS A SERVICE: ENTERPRISE INTELLIGENCE BOT

D8AI INC.

TAIWAN

DELOITTE OMNIA: INNOVATING WITH TRUST AT THE CENTER

DELOITTE & TOUCHE LLP

UNITED STATES

ELABRAM HR SOLUTIONS

ELABRAM GROUP

INDONESIA

EMERGENCY DATA PLATFORM (EDP)

NEW TAIPEI CITY GOVERNMENT

TAIWAN

GRAPHJET TECHNOLOGY’S STATE-OF-THE-ART TECHNOLOGY IN PRODUCING GRAPHITE & GRAPHENE FROM PALM OIL WASTE, PALM KERNEL SHELLS

GRAPHJET TECHNOLOGY SDN BHD

MALAYSIA

INDUSTRIAL DIGITALIZATION INCLUSION

DIGIHUA INTELLIGENT SYSTEMS CO., LTD.

TAIWAN

ING-MA, DENGUE VIRTUAL HUMAN

TAKEDA THAILAND, LTD.

THAILAND

MEDIDATA SENSOR CLOUD

MEDIDATA SOLUTIONS INTERNATIONAL ASIA PACIFIC PTE LTD.

SINGAPORE

MIKO DRIP AND URINE MONITORING SYSTEM

MIKOTEK INFORMATION INC.

TAIWAN

POWERED BY AUTOPASS

AUTOPASS INC.

TAIWAN

PROJECT LOVE

EZECOM

CAMBODIA

RCBC DISKARTECH

RIZAL COMMERCIAL BANKING CORPORATION

PHILIPPINES

SOLAR ORCHESTRA: AN EXIM THAILAND’S CLIMATE FINANCE FOR SUSTAINABLE EXPORT

EXPORT-IMPORT BANK OF THAILAND

THAILAND

THE READER REWARDS SYSTEM

ET NEW MEDIA HOLDING CO., LTD.

TAIWAN

YUANTA MR. FUND APP

YUANTA SECURITIES INVESTMENT TRUST CO., LTD.

TAIWAN

ORGANIZATION & CULTURE CATEGORY

WINNING INNOVATION

COMPANY

COUNTRY/ REGION

COMMUNITY HEALTH PLATFORM FOR ALL AGES

FAR EASTERN BIG CITY SHOPPING MALLS CO.,LTD.

TAIWAN

DELOITTE AUDIT & ASSURANCE: INNOVATING FOR PURPOSE

DELOITTE & TOUCHE LLP

UNITED STATES

ONE KRUNGTHAI

KRUNGTHAI BANK PCL

THAILAND

RTA INNOVATION CULTURE FRAMEWORK

ROAD TRANSPORT AUTHORITY

UNITED ARAB EMIRATES

WORKING IN DIVERSITY, EQUITY AND INCLUSION CULTURE.

ELABRAM GROUP

INDONESIA

YUNG CHING REALTY GROUP, INTEGRITY IS TOP PRIORITY.

YUNG-CHING REALTY GROUP

TAIWAN

 


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Chinese fret over infecting elderly as holidays prompt COVID warnings

A POTENTIAL WAVE of coronavirus infections in China is worrying experts. — CFOTO/SIPA USA VIA REUTERS CONNECT

BEIJING — People in China worried on Thursday about spreading coronavirus disease 2019 (COVID-19) to aged relatives as they planned returns to their home towns for holidays that the World Health Organization (WHO) warns could inflame a raging outbreak.

The Lunar New Year holiday, which officially starts from Jan. 21, comes after China last month abandoned a strict anti-virus regime of mass lockdowns that prompted widespread frustration and boiled over into historic protests.

That abrupt U-turn unleashed COVID on a population of 1.4 billion which lacks natural immunity, having been shielded from the virus since it first erupted in late 2019, and includes many elderly who are not fully vaccinated.

The outbreak spreading from China’s mega-cities to rural areas with weaker medical resources, is overwhelming some hospitals and crematoriums.

With scant official data from China, the WHO on Wednesday said it will be challenging to manage the virus over a holiday period considered the world’s largest annual migration of people.

Other warnings from top Chinese health experts for people to avoid aged relatives during the holidays shot to the most-read item on China’s Twitter-like Weibo on Thursday.

“This is a very pertinent suggestion, return to the home town … or put the health of the elderly first,” wrote one user. Another user said they dare not visit their grandmother and would leave gifts for her on the doorstep.

“This is almost the New Year and I’m afraid that she will be lonely,” the user wrote.

More than two billion passengers are expected to take trips over the broader Lunar New Year period, which started on Jan. 7 and runs for 40 days, China’s transport ministry has said. That is double last year’s trips and 70% of those seen in 2019 before the pandemic emerged in the central Chinese city of Wuhan.

LACK OF DATA CRITICIZED
The WHO and foreign governments have criticized China for not being forthright about the scale and severity of its outbreak, which has led several countries to impose restrictions on Chinese travelers.

China has been reporting five or fewer deaths a day over the past month, numbers that are inconsistent with the long queues seen at funeral homes. The country did not report COVID fatalities data on Tuesday and Wednesday.

Liang Wannian, the head of a COVID expert panel under the national health authority, told reporters that deaths could only be accurately counted after the pandemic was over.

Although international health experts have predicted at least 1 million COVID-related deaths this year, China has reported just over 5,000 since the pandemic began, a fraction of what other countries have reported as they removed restrictions.

Looking beyond the death toll, investors are betting that China’s reopening will reinvigorate a $17 trillion economy suffering its lowest growth in nearly half a century.

That has lifted Asian stocks to a seven-month peak, strengthened China’s yuan currency against the US dollar and bolstered global oil prices on hopes of fresh demand from the world’s top importer.

TRAVEL CHALLENGES
After three years of isolation from the outside world, China on Sunday dropped quarantine mandates for inbound visitors in a move expected to eventually also stimulate outbound travel.

But concerns about China’s outbreak has prompted more than a dozen countries to demand negative COVID test results from people arriving from China.

Among them, South Korea and Japan have also limited flights and require tests on arrival, with passengers showing up as positive being sent to quarantine.

In a deepening spat between the regional rivals, China has in turn stopped issuing short-term visas and suspended transit visa exemptions for South Korean and Japanese nationals.

Despite Beijing’s lifting of travel curbs, outbound flight bookings from China were at only 15% of pre-pandemic levels in the week after the country announced it would reopen its borders, travel data firm ForwardKeys said on Thursday.

Low airline capacity, high air fares, new pre-flight COVID-19 testing requirements by many countries and a backlog of passport and visa applications pose challenges as the industry looks to recovery, ForwardKeys Vice President Insights Olivier Ponti said in a statement.

Hong Kong Airlines on Thursday said it does not expect to return to capacity until mid-2024. — Reuters

Airlines hope for return to normal Thursday after FAA outage snarls US travel

Miami International Airport

WASHINGTON/CHICAGO — The US aviation sector was struggling to return to normal on Wednesday after a nationwide ground stop imposed by the Federal Aviation Administration (FAA) over a computer issue that forced a 90-minute halt to all US departing flights.

More than 10,000 flights have been delayed so far and over 1,300 canceled, according to FlightAware, in the first national grounding of flights in about two decades. Many industry officials compared the grounding to what occurred after the terror attacks on Sept. 11, 2001.

Major carriers, such as Southwest Airlines Co., United Airlines, Delta Air Lines and American Airlines, all reported 40% or more of flights Wednesday delayed or canceled, though airline officials expressed confidence that normal operations could largely return by Thursday.

The FAA computer issue had prevented airports from filing updated safety notices that warn pilots of potential hazards such as runway closures, poor weather and construction, bringing flights to a temporary halt.

FAA officials said a preliminary review traced the problem to a damaged database file, but added that there was no evidence of a cyberattack and that the investigation was continuing. The same file corrupted both the main system and its backup, said people familiar with the review, who asked not to be identified.

FAA officials said they were working to “further pinpoint the causes” so the problem could be avoided in the future.

Transportation Secretary Pete Buttigieg told CNN the ground stop was the “right call” to make sure messages were getting sent correctly and there was no direct evidence of cyberattack.

The White House said President Joseph R. Biden, Jr., had confidence in Mr. Buttigieg.

Mr. Buttigieg told reporters a backup system went into effect on Tuesday but questions were raised about the system’s performance, which led to a complete reboot of the system and prompted the FAA to issue the ground stop about 7:30 a.m. EST (1230 GMT). It was lifted just before 9 a.m. EST.

An FAA advisory said the system that provides so-called Notices to Air Missions with safety messages for pilots and others failed about 3:30 p.m. EST on Tuesday, which meant no new messages could be processed.

The outage occurred at a typically slow time after the holiday travel season, but demand remains strong as travel continues to recover to near pre-pandemic levels.
It could affect traffic through Friday, said Captain Chris Torres, vice president of the Allied Pilots Association.

“This thing was lifted at 9 a.m. Eastern. That doesn’t mean the problem stops at 9 a.m. This is going to cause ripple effects,” said Mr. Torres, whose members fly for American Airlines.

One issue airlines are facing is trying to get planes in and out of crowded gates, causing further delays. Crews’ time-limit rules may also be a factor.
At an airport in Greenville, South Carolina, Justin Kennedy abandoned a work trip to nearby Charlotte, North Carolina. He described confusion as airline employees and many passengers were initially unaware of the FAA’s moves and flight delays.

“I sat in a Chick-fil-A dining area that had a good view of the TSA exit,” the 30-year-old information technology employee said. “I saw at least four people sprinting to gates because they thought they were going to miss their flight, only to come back to the food court, out of breath.”

‘CATASTROPHIC’ FAILURE
US airline customers have few alternatives. Driving distances are too great, and the country’s passenger rail network is thin compared with those in other countries. The US Travel Association, which represents the travel industry including airlines, called the FAA system failure “catastrophic.”

The outage appeared to have limited impact on transatlantic routes.

US Senate Commerce Committee Chair Maria Cantwell, a Democrat, said the panel would investigate. Republican Senator Ted Cruz called the failure “completely unacceptable.”

Shares of US carriers rebounded after the market opened as flights resumed. The S&P 500 airlines index closed up 0.9%.
An operational meltdown at Southwest at the end of last year stranded thousands.

The DOT, FAA’s parent agency, criticized Southwest’s failures and pressured the airline to compensate passengers. Mr. Buttigieg on Wednesday rejected the suggestion the FAA should reimburse travelers for delays caused by the outage.

The FAA suffered another significant computer issue on Jan. 2 that led to significant delays in Florida flights.

Package delivery companies FedEx, United Parcel Service and DHL, which rely heavily on planes, said they faced minimal disruptions on Wednesday.

Separately on Wednesday afternoon, air traffic control manager NAV Canada reported an outage of about 90 minutes in a similar messaging system used in Canada, but said the issue had not caused any flight delays. The agency said it did not believe its outage was related to the FAA one, but was investigating.

Ria Malhotra, a 29-year-old resident physician from Weehawken, New Jersey, had been scheduled to fly from Newark to Las Vegas for a medical conference, but her flight was first delayed and then rescheduled. After this, she wonders how much she will fly.

“I just don’t want to deal with this process anymore because I feel like flight delays are more the norm than they are the exception to the rule,” she said. — Reuters

US and Japan agree to step up security cooperation amid China worries

COMMONS.WIKIMEDIA.ORG

WASHINGTON — The United States and Japan on Wednesday announced stepped-up security cooperation in the face of shared worries about China, and Washington strongly endorsed a major military buildup Tokyo announced last month.

A joint statement issued after a meeting between their foreign and defense ministers in Washington said the two countries “provided a vision of a modernized Alliance postured to prevail in a new era of strategic competition.”

“We agree that the PRC is the greatest shared strategic challenge that we and our allies and partners face,” US Secretary of State Antony Blinken told a joint news conference after the meeting, referring to the People’s Republic of China.

At the briefing, US Defense Secretary Lloyd Austin announced plans to introduce a Marine Littoral Regiment in Japan, which would bring significant capabilities, including anti-ship missiles. Mr. Blinken said that two sides also agreed to extend the terms of their common defense treaty to cover space.

The joint statement said that given “a severely contested environment,” the forward posture of US forces in Japan should be upgraded “by positioning more versatile, resilient, and mobile forces with increased intelligence, surveillance, and reconnaissance, anti-ship, and transportation capabilities.”

Mr. Austin is to meet Japanese Defense Minister Yasukazu Hamada again on Thursday at the Pentagon ahead of a meeting between US President Joseph R. Biden, Jr., and Japanese Prime Minister Fumio Kishida on Friday.

A senior administration official told Reuters that Messrs. Biden and Kishida are expected to discuss security issues and the global economy and that their talks are likely to include control of semiconductor exports to China after Washington announced strict curbs last year.

Although the total number of US troops in Japan will not change, the new deployments could be the first of several announcements this year on military forces in Asia aimed at making Beijing think twice before initiating any conflict.

The agreement follows nearly a year of talks and comes after Japan last month announced its biggest military build-up since World War Two — a dramatic departure from seven decades of pacifism, fueled by concerns about Chinese actions in the region.

That five-year plan will double Japan’s defense spending to 2% of its gross domestic product and see it procure missiles that can strike ships or land-based targets 1,000 km (600 miles) away.

Asked about the Japanese reforms, Mr. Blinken said:
“It’s very simple, we heartily welcome the new strategies especially because
there is … a remarkable convergence between our strategy and strategies and Japan’s.

“We applaud the commitment to increase investment, to enhanced roles, missions and capabilities … to closer cooperation not only between the United States and Japan but as well with other allies and other partners,” he said. “We already have a strong foundation that’s only going to grow.”

The anti-ship missiles will arrive in Japan under a revamped Marine Corps regiment of 2,000 troops that will focus on advanced intelligence, surveillance and transportation, US officials told Reuters. The move is expected to be completed by 2025.

The officials added that a separate US Army company of about 300 soldiers and 13 vessels would be deployed by this spring to help transport US and Japanese troops and equipment, allowing for the rapid dispersal of forces.

Japan has watched with growing concern China’s belligerence toward Taiwan as Beijing seeks to assert its sovereignty claims over the island.

Mr. Austin noted ramped-up Chinese military activities near the Taiwan Strait, but said he seriously doubted they were a sign of plans for an imminent invasion of the island by Beijing.

Japan hosts 18,000 US Marines, the biggest concentration outside the United States. Most are on the main Okinawan island, which is part of a chain that stretches along the edge of the East China Sea to within about 100 km (62 miles) of Taiwan.

The large US presence has fueled local resentment, with Okinawa’s government asking other parts of Japan to host some of the force. In total, there are about 54,000 US troops in Japan. — Reuters

Twitter says no evidence new user data leaks were obtained via system bug

AKSHAR DAVE-UNSPLASH

Twitter Inc. said on Wednesday that there was no evidence that data recently being sold online was obtained by exploiting a vulnerability in the company’s systems.

Twitter said the data of 5.4 million of the accounts had been compromised by a bug it discovered early last year, which it previously fixed and disclosed over the summer.

Another 600 million pieces of user data “could not be correlated with the previously reported incident, nor with any new incident,” Twitter said in a blog post.

“There is no evidence that the data being sold online was obtained by exploiting a vulnerability of Twitter systems. The data is likely a collection of data already publicly available online through different sources,” it said.

The social media company told users in August last year that a system vulnerability revealed Twitter accounts of users by submitting their email address or phone number, after the company learnt about it through a bug bounty program months earlier.

In December, media reports claimed that someone could gain access to over 400 million Twitter-associated user emails and phone numbers, and that the data had been exposed through the same vulnerability discovered in January 2022. — Reuters

Failed crypto exchange FTX has recovered over $5B, attorney says

PIXABAY

NEW YORK/WILMINGTON, Del. — Crypto exchange FTX has recovered more than $5 billion in liquid assets but the extent of customer losses in the collapse of the company founded by Sam Bankman-Fried is still unknown, an attorney for the company told a US bankruptcy court on Wednesday. 

The company, which was valued a year ago at $32 billion, filed for bankruptcy protection in November and US prosecutors accused Bankman-Fried of orchestrating an “epic” fraud that may have cost investors, customers and lenders billions of dollars. 

“We have located over $5 billion of cash, liquid cryptocurrency and liquid investment securities,” Andy Dietderich, an attorney for FTX, told US Bankruptcy Judge John Dorsey in Delaware at the start of Wednesday’s hearing. 

Mr. Dietderich also said the company plans to sell nonstrategic investments that had a book value of $4.6 billion. 

However, Mr. Dietderich said the legal team is still working to create accurate internal records and the actual customer shortfall remains unknown. The US Commodities Futures Trading Commission has estimated missing customer funds at more than $8 billion. 

Mr. Dietderich said the $5 billion recovered does not include assets seized by the Securities Commission of the Bahamas, where the company was headquartered and Mr. Bankman-Fried resided. 

FTX’s attorney estimated the seized assets were worth as little as $170 million while Bahamian authorities put the figure as high as $3.5 billion. The seized assets are largely composed of FTX’s proprietary and illiquid FTT token, which is highly volatile in price, Mr. Dietderich said. 

ASSET SALES 

FTX could raise additional funds in the coming months for the benefit of customers after Mr. Dorsey approved FTX’s request for procedures to explore sales of affiliates at Wednesday’s hearing. 

The affiliates — LedgerX, Embed, FTX Japan and FTX Europe — are relatively independent from the broader FTX group, and each has its own segregated customer accounts and separate management teams, according to FTX court filings. 

The crypto exchange has said it is not committed to selling any of the companies, but that it received dozens of unsolicited offers and plans to hold auctions beginning next month. 

The US Trustee, a government bankruptcy watchdog, opposed selling the affiliates before the extent of the alleged FTX fraud is fully investigated. 

In part to preserve the value of its businesses, FTX also sought Mr. Dorsey’s approval to keep secret 9 million FTX customer names. The company has said that privacy is needed to prevent rivals from poaching users but also to prevent identity theft and to comply with privacy laws. 

Mr. Dorsey allowed the names to remain under wraps for only three months, not six months as FTX wanted. 

“The difficulty here is that I don’t know who’s a customer and who’s not,” Mr. Dorsey said. He set a hearing for Jan. 20 to discuss how FTX will distinguish between customers and said he wants FTX to return in three months to give more explanation on the risk of identity theft if customer names are made public. 

Media companies and the US Trustee had argued that US bankruptcy law requires disclosure of creditor details to ensure transparency and fairness. 

In addition to selling affiliates, a company lawyer on Wednesday said FTX will end its 19-year $135 million sponsorship deal with the NBA’s Miami Heat and a 7-year about $89 million deal with the League of Legends video game. 

FTX’s founder, Mr. Bankman-Fried, 30, was indicted on two counts of wire fraud and six conspiracy counts last month in Manhattan federal court for allegedly stealing customer deposits to pay debts from his hedge fund, Alameda Research, and lying to equity investors about FTX’s financial condition. He has pleaded not guilty. 

Mr. Bankman-Fried has acknowledged shortcomings in FTX’s risk management practices, but the one-time billionaire has said he does not believe he is criminally liable. 

In addition to customer funds lost, the collapse of the company has also likely wiped out equity investors. 

Some of those investors were disclosed in a Monday court filing, including American football star Tom Brady, Brady’s former wife supermodel Gisele Bündchen and New England Patriots owner Robert Kraft. — Reuters

Outsourcing Philippines: The role of advanced technology in fintech support

The Philippines has become the preferred outsourcing destination for companies in the financial services and fintech industries due to its strong English language skills, highly educated workforce, and cost-effective labor. As such, contact centers in the Philippines are using cutting-edge technology to support fintech clients and improve the overall customer experience.

“One way that technology is being used in call centers in the Philippines is through the implementation of artificial intelligence (AI) and machine learning (ML),” says Ralf Ellspermann, CEO of PITON-Global, an award-winning contact center outsourcing provider in the Philippines specializing in omnichannel support for fintech companies. “These technologies can be used to automate certain tasks and processes in both the front and back offices.”

In the front office, AI and ML can be used to automate customer service inquiries and appointment scheduling. This not only saves time for customer service agents, but also allows them to handle more complex tasks, resulting in a more efficient and effective contact center operation. In turn, this can lead to cost savings for the client, as they can potentially handle a larger volume of calls with a smaller staff. AI-powered chatbots can also be used to provide quick and accurate responses to customer inquiries, improving the overall customer experience.

In the back office, AI and ML can be used to automate processes such as data entry, analysis, and fraud detection. This can help to improve the efficiency of the operation and reduce the risk of errors.

“Another technology that is commonly used in contact centers in the Philippines is interactive voice response (IVR),” says Mr. Ellspermann. “IVR systems allow customers to interact with a computerized system using their voice or phone keypad, rather than speaking with a human agent. This can be useful for handling simple inquiries or directing customers to the appropriate agent or department. IVR systems can also be integrated with AI and ML to provide personalized and efficient interactions with customers.”

Other advanced technologies that are being used in call centers in the Philippines include cloud-based systems, which allow for remote access and increased flexibility, and omnichannel communication platforms, which allow customers to reach out through a variety of channels (e.g., phone, email, chat, social media) and have their interactions seamlessly connected across these channels.

“Omnichannel communication platforms are particularly useful for fintech companies, as they allow for seamless communication with customers across multiple channels,” says Mr. Ellspermann. “This helps to improve the customer experience and increase customer satisfaction.”

Overall, the use of cutting-edge technology in contact centers in the Philippines is helping to support fintech clients and improve the overall customer experience. “By automating certain tasks, improving efficiency, and offering a variety of communication channels, fintech clients can achieve greater satisfaction and loyalty from their customers,” says Mr. Ellspermann. The Philippines’ highly educated and cost-effective labor force makes it the preferred outsourcing destination for companies in the financial services and fintech industries.

 


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