Asian stocks track Wall Street gains and Japan’s inflation slows

Business

January 19, 2024

South Korea Financial Markets — FILE - Currency traders watch monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, on Jan. 11, 2024. Asia markets mostly advanced Friday, Jan. 19, after Wall Street recouped most of the week's earlier losses and Japan reported slowing inflation, which may keep its ultra-low interest rates steady. (AP Photo/Ahn Young-joon, File)

HONG KONG (AP) – Asia markets mostly advanced Friday after Wall Street recouped most of the week’s earlier losses and Japan reported slowing inflation, which may keep its ultra-low interest rates steady.

US futures were mixed and oil prices fell. Tokyo’s Nikkei 225 index climbed 1.4 per cent to 35,946.50.

Japan’s inflation slowed for a second straight month, increasing the chance that the Bank of Japan will keep its ultra-low interest rates unchanged at its meeting next week. The country’s annual headline inflation rate has remained above the BOJ’s two per cent target since April 2022, with a gradual decline observed from its peak of 4.3 per cent last year to the rate of 2.6 per cent in December that was reported Friday.

The Hang Seng in Hong Kong lost 0.1% to 15,373.00 and the Shanghai Composite index was down 0.5 per cent at 2,832.29.

In South Korea, the Kospi added one per cent to 2,464.76. Australia’s S&P/ASX 200 advanced one per cent to 7,421.10. In Bangkok, the SET was up 0.6 per cent.

On Thursday, the S&P 500 rose 0.9 per cent to 4,780.94 following back-to-back drops that started the holiday-shortened week. The Dow Jones Industrial Average gained 0.5 per cent to 37,468.61, and the Nasdaq composite jumped 1.3 per cent to 15,055.65.

Big Tech stocks led the way, including Apple, which rose 3.3 per cent to flip its loss for the week so far into a gain.

Chip companies were also strong after Taiwan Semiconductor Manufacturing Co gave a forecast for revenue in 2024 that analysts said was higher than they were expecting. Broadcom gained 3.6 per cent, while TSMC’s stock that trades in the United States jumped 9.8 per cent.

The market was broadly steadier as Treasury yields in the bond market slowed their jump from earlier in the week. Yields had been climbing as traders pushed back their forecasts for how soon the Federal Reserve will begin cutting interest rates. Higher yields in turn undercut prices for stocks and raise the pressure on the economy.

The Fed has indicated it will likely cut rates several times in 2024 because inflation has been cooling since its peak two summers ago, meaning it may not need as tight a leash on the economy and financial system.

The yield on the 10-year Treasury rose again Friday, to 4.16 per cent from 4.11 per cent late Wednesday.

Treasury yields swung up and down in the minutes after a report on Thursday morning showed the number of US workers applying for unemployment benefits fell last week to its lowest level since two Septembers ago. That’s good news for workers and for the economy overall, which has so far powered through predictions for a recession.

Other reports on the economy were mixed Thursday. One showed manufacturing in the mid-Atlantic region is contracting by more than economists expected. Another said homebuilders broke ground on more projects last month than economists expected, even if it was weaker than November’s level.

On the losing end of Wall Street were several financial companies that reported weaker results for the end of 2023 than analysts expected. Discover Financial Services fell 10.8 per cent, and KeyCorp lost 4.6 per cent after both reported profits that fell well short of Wall Street’s forecasts, though their revenues topped expectations.

In energy trading, benchmark US crude lost USD0.09 to USD73.86 a barrel. Brent crude, the international standard, gave up USD0.21 to USD78.89 a barrel.

Currency traders watch monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, on Jan. 11, 2024. Asia markets mostly advanced Friday, January 19, after Wall Street recouped most of the week’s earlier losses and Japan reported slowing inflation, which may keep its ultra-low interest rates steady. PHOTO: AP

South Korea urges UN action on North Korea

World

January 19, 2024

UNITED NATIONS (AP) – South Korea called on the divided UN Security Council on Thursday “to break the silence” over North Korea’s escalating missile tests and threats.

“It’s a big question,” South Korea’s UN Ambassador Hwang Joonkook told reporters after an emergency closed meeting of the council on the North’s first ballistic missile test of 2024 on Sunday. South Korea is serving a two-year term on the council.

The Security Council imposed sanctions after North Korea’s first nuclear test explosion in 2006 and tightened them over the years in a total of 10 resolutions seeking — so far unsuccessfully — to cut funds and curb its nuclear and ballistic missile programmes.

The last sanctions resolution was adopted by the council in 2017. China and Russia vetoed a US-sponsored resolution in May 2022 that would have imposed new sanctions over a spate of intercontinental ballistic missile launches.

Since then, the two veto-wielding permanent council members have blocked any council action, including media statements.

North Korea’s escalating test-launches in violation of the existing UN sanctions — five ICBMs, more than 25 ballistic missiles and three satellite launches using ballistic missile technology in 2023 – coupled with new threats from the North’s leader Kim Jong Un have raised regional tensions to their highest point in years.

On Monday, Kim declared North Korea would abandon its commitment to a peaceful unification with South Korea and ordered a rewriting of its constitution to eliminate the idea of a shared statehood between the war-divided countries.

He said South Koreans were “top-class stooges” of America who were obsessed with confrontation, and repeated a threat that the North would annihilate the South with its nukes if provoked.

Before Thursday’s council meeting, US Deputy Ambassador Robert Wood told reporters Kim’s provocations “are of great concern.”

He said the 15 council members need to be reminded that North Korea is violating sanctions and its obligations to the council, “and we have to insist that they adhere to those obligations, and for all Security Council members to enforce those resolutions.”

By contrast, China’s UN Ambassador Zhang Jun, whose country is a close ally of North Korea, called on all parties involved in the Korean Peninsula to stay calm and refrain from actions that would further raise tensions.

In a message clearly aimed at the United States and South Korea, Zhang expressed hope that while attention is mainly on North Korea, “other countries are also responsible to avoid further escalation.”

France’s UN Ambassador Nicolas De Riviere told reporters that North Korea’s actions are “getting worse and worse,” with regular ballistic missile launches, continuing uranium enrichment, and advancement of its nuclear program.

“Everyone is focused on missile launches, but I think the biggest threat is their nuclear programme which continues to grow again and again,” De Riviere said.

And he called it “a shame” that Russia is violating Security Council resolutions by “buying military stuff that they use in Ukraine” from North Korea. “It’s really bad,” he said.

South Korea’s Hwang said all 15 members of the Council are worried that North Korea’s rhetoric and actions are “getting more and more serious.”

But how to break the council’s silence and inaction?

“We will discuss and think about it, and how to move forward,” he said. “It’s a big question.”

As for Kim’s abandonment of peaceful reunification, Hwang called it “a big change” in their rhetoric, actions and policy. “The nuclear policy is highly, highly alarming,” he said.

North Korea’s military guard post is seen from the unification observatory in Paju, South Korea, Tuesday, January 16. North Korean leader Kim Jong Un said his country would no longer pursue reconciliation with South Korea and called for rewriting the North’s constitution to eliminate the idea of shared statehood between the war-divided countries, state media said Tuesday. PHOTO: AP

Jungkook achieves double platinum in Canada

Entertainment

January 19, 2024

2328583 — BTS' Jungkook's '3D' made it to the top spot on Billboard Global 200 chart. PHOTO: BIGHIT MUSIC

(ANN/KOREA HERALD) — Jungkook of BTS has garnered certifications from Music Canada for his solo music, marking a historic achievement as the first Asian solo singer to attain three “gold single” songs from a single album in the country.

This distinction was confirmed by the organisation, formerly known as the Canadian Recording Industry Association.

The track “Seven” achieved a remarkable feat by attaining double platinum certification, while “3D” and “Standing Next To You” received gold certifications. All three songs are featured in his inaugural solo album, “Golden.”

Jungkook. PHOTO: Big Hit Music via ANN/KOREA HERALD

“Seven” made an impactful debut by securing the top position on Billboard’s Hot 100 and received accolades as one of the best songs of 2023 from major publications, including The New York Times, The LA Times, and Rolling Stone magazine.

Simultaneously, both the album and the focal track “Standing Next To You” have demonstrated enduring success on the charts.

They have maintained their presence on Billboard 200 and Hot 100 for an impressive 10 consecutive weeks, securing positions at No. 43 and No. 76, respectively.

Vietnam powers up semiconductor future

Technology

January 19, 2024

close up view of computer microchip and tweezers in hands of engineer — PHOTO: ENVATO

HANOI (ANN/THE VIETNAM NEWS) – Vietnam is strategically positioning itself for the impending surge in semiconductor investment by diligently establishing both solid and soft infrastructure, implementing policy mechanisms, investing in research and development, formulating strategies, and cultivating a skilled workforce.

Globally recognised as a vital industry, the semiconductor sector is poised for substantial growth, with the global market targeting a significant milestone of USD1 trillion by 2030.

Vietnam has outlined clear and specific directions along with action plans to propel the development of its semiconductor industry.

As a nation fostering a vibrant innovation ecosystem, Vietnam’s rapid advancements in the digital economy and remarkable growth in the high-tech sector have attracted the interest of numerous global corporations, enticing them to invest in the flourishing semiconductor industry.

Minister of Planning and Investment Nguyen Chi Dung, in an interview with the government’s online newspaper baochinhphu.vn in early 2024, elaborated on the crucial tasks assigned to various government departments, particularly the Ministry of Planning and Investment (MPI), in preparing for investments in Vietnam’s semiconductor industry.

Prime Minister Phạm Minh Chinh (second from the left) visits the semiconductor chip production line of Hana Micro Vina Co Ltd in Bac Giang Province. PHOTO: ANN/VIETNAM NEWS

The government specifically asked the Ministry of Information and Communications to create a plan for developing the semiconductor industry in Vietnam until 2030, with the final stages of drafting currently underway.

Meanwhile, MPI has been entrusted by the Government and the Prime Minister to lead the human resources development project for the semiconductor industry in Vietnam until 2030. The specific objective is to train 50,000 semiconductor engineers, reflecting the nation’s commitment to nurturing skilled professionals in this critical field.

Vietnam has also established the National Innovation Centre (NIC) and collaborated with two of the largest chip design corporations in the United States, Synopsys and Cadence, to set up a chip research and design centre within NIC’s facilities.

Infrastructure readiness

In addressing the crucial aspect of infrastructure, Minister Dung highlighted the meticulous preparations made by localities.

Enhancements in land infrastructure, with active efforts to free up land for semiconductor enterprises, have been a priority.

Simultaneously, strategic transportation infrastructure connecting economic centres, seaports and airports is being enhanced.

The focus extends to preparing for issues related to information technology, electricity, water and social infrastructure for the workforce in the semiconductor industry.

These preparations underscore the government’s commitment to creating a conducive environment for semiconductor investments and its determination to actively participate in the global semiconductor value chain, the minister said.

Dung underscored the significance of human resources development as a primary challenge in the semiconductor industry.

He outlined the MPI’s progress in the final stages of designing the human resources development project. This initiative aims to train a substantial number of 50,000 engineers, 1,000 master’s degree holders, and 100 PhD researchers in the semiconductor industry by 2030.

The plan includes potential domestic and international training programmes, emphasising collaboration with universities and institutions.

To realise these goals, Vietnam has forged a collaborative agreement with the University of Arizona, a prominent institution specialising in semiconductor education in the United States.

The minister highlighted the importance of mobilising diverse resources, including state funds, private sector support and non-refundable aid, to ensure the successful implementation of the project.

With increasing competition for foreign direct investment (FDI) and the implementation of global minimum tax in 2024, Minister Dung outlined Vietnam’s measures to support domestic and foreign enterprises participating in the semiconductor production and supply chain.

The government aims to develop a strategic roadmap, ensure rapid implementation to meet human resource demands, and improve institutions and policies.

Mining titan from down under digs green agenda

Features

January 19, 2024

SWITZERLAND-DIPLOMACY-ECONOMY-SUMMIT-DAVOS — Australian businessman Andrew Forrest takes part to a session of the World Economic Forum (WEF) annual meeting in Davos on January 18, 2024. PHOTO: AFP

DAVOS, SWITZERLAND (AFP) – Andrew Forrest, a blunt Australian billionaire who made his fortune in iron ore mining, stood out among the heads of emissions-spewing industries at the meeting of global elites in Davos.

He has been dubbed a “climate evangelist” who is working to decarbonise his company’s operations and presses fellow industrialists to also stop burning fossil fuels.

“I’m saying to the industrial world, if the crabby, backwards old mining industry can do it, so can everyone else,” Forrest told AFP in an interview in the Swiss Alpine resort.

Forrest is a regular at the World Economic Forum, where he came again this week to talk about climate change and sparred with an oil executive on the global energy transition.

His company, Fortescue, plans to use renewable power instead of diesel and natural gas across its energy-intensive mining operations by 2030.

He is also betting heavily on green hydrogen, ploughing billions of dollars into projects to produce the clean fuel by using renewable energy.

Last week, Forrest pledged to deliver 14 gigawatts in clean energy to Australia by the end of the decade through his solar and wind firm, Squadron Energy, which could power the equivalent of six million homes.

His critics point out that Forrest became rich through mining operations that last year alone emitted 2.5 million tonnes of greenhouse gases, more than a small Pacific island.

Forrest admits his own culpability.

“There’s about 1,000 industrialists who are responsible for the consumption of oil and gas around the world. And I am one of those. I burn a billion litres of diesel a year,” he said.

“But before you put my head up on a spike alone, look at the other 999, because at least I’m moving with thorough economic plans to eliminate all fossil fuels from my supply chain. And that’s what I’m asking every other executive to do.”

Australian businessman Andrew Forrest takes part to a session of the World Economic Forum (WEF) annual meeting in Davos on January 18, 2024. PHOTO: AFP

Death race

Forrest reserves his most scathing criticism for the oil and gas industry, accusing it of “peddling poison”.

He said the planet was in a “death race” and that the fossil fuel sector was “dragging the rest of the world down with them”.

He said he asks oil executives the same question: “When will you allow your customers to stop burning fossil fuel?”

“If they said, ‘well, we’re not going to’, then you say, ‘thanks for telling the truth’. If they say, ‘well, we are already’, then you say, ‘please don’t treat me like a moron’.”

During the UN’s COP28 conference in Dubai last month, Forrest took out newspaper ads criticising the oil and gas industry and calling for a fossil fuel phase-out. The summit ended with an agreement for the world to transition away from fossil fuels.

In Davos on Thursday, he had a lively debate with Vicki Hollub, the CEO of US firm Occidental Petroleum, during a panel discussion on the energy transition.

“I haven’t really seen anything just and fair about the fossil fuel sector,” Forrest told the panel.

Hollub said the oil industry would play a “key part” in the energy transition, in part by continuing “to provide the fuel that the world needs”.

While solar and wind energy can be used for power generation, maritime shipping, aviation and road haulage will still require fuel, she said.

“(In) the transition, as much as you would like, we cannot stop fossil fuels today,” Hollub said.

Miracle molecule

Forrest’s campaign has drawn praise among some climate activists.

“Andrew Forrest has voiced the urgency to halt fossil fuel expansion and has been decidedly critical of oil companies,” said Harjeet Singh, global engagement director for the Fossil Fuel Non-Proliferation Treaty Initiative, which campaigns for an end to the expansion of coal, gas and oil.

“We need a greater number of business leaders to fully acknowledge the enormity of the climate crisis and actively invest their resources in real solutions,” Singh told AFP.

But Forrest’s belief that hydrogen – which he calls “the miracle molecule” – will play a major part in the energy transition has drawn scepticism.

Hydrogen, which emits only water vapour, is touted for potential use in high-polluting industries such as transport, shipping and steel.

But producing it at mass scale is a major challenge, as costs remain high and the infrastructure is lacking so far.

The International Energy Agency (IEA) said in a report last week that only seven percent of projects announced worldwide to use renewables to produce hydrogen this decade are expected to come online by 2030.

IEA chief Fatih Birol told AFP it was good that “billionaires also want to see a clean energy future. This is great.”

“Green hydrogen definitely belongs to the future of our clean energy mix,” he added. “But one should be a bit careful not to have high expectations.”

France orders rare Atlantic fishing ban to protect dolphins

Business

January 19, 2024

FRANCE-FISHING-ENVIRONMENT-SOCIAL — This photograph taken on January 18, 2024, shows red mullet fish in a container at the Chef de Baie fishing port in La Rochelle, western France. To preserve dolphins, French and foreign fishermen in the Bay of Biscay will remain docked for a month starting January 22, 2024, for the first time since 1945, much to the dismay of an industry that fears a social crisis. (Photo by Christophe ARCHAMBAULT / AFP)

LA ROCHELLE, FRANCE (AFP) – The French government will temporarily ban almost all commercial fishing in the Bay of Biscay to protect dolphins, much to the dismay of the industry.

The month-long ban off the country’s West coast — the first since the end of World War II — is set to begin Monday and applies to both French and foreign fishermen.

It follows calls by environmental activists to protect the marine mammals, pointing to a surge in dolphin deaths on the Atlantic coast.

From Finistere in the extreme west of Brittany to the Spanish border, fishing will cease almost entirely until February 20.

On Thursday, the French government broadened the ban to all ships, regardless of origin, while promising to support fishermen and fishmongers. The ban was originally ordered by the country’s top administrative court, the State Council.

CIEM, a scientific body that tracks North Atlantic ecosystems, has for years urged a winter pause for some indiscriminate fishing techniques, meeting fierce resistance from industrial fishermen.

Workers sort out and pack cuttlefish in boxes during conditioning at the Chef de Baie fishing port in La Rochelle, western France on January 18. PHOTO: AFP

The organisation estimates that around 9,000 dolphins die each year off the French Atlantic coast as a result of accidental capture.

The ban concerns boats longer than eight metres and will affect around 450 French vessels. Fishermen and industry groups decried the temporary measure.

“It’s absurd to stop businesses like this for a month,” Raymond Millet, a fisherman from La Rochelle, a city on France’s west coast, told AFP.

Millet, who has been a fisherman for the past forty years, said that vessels nine to 11 metres long “are not the kind of boats that fish for dolphins”.

Franck Lalande, an owner of two boats in the southwestern city of Arcachon, said he feared the ban would cause “social problems”.

He said the compensation payments promised by the authorities were insufficient.

The French National Fisheries Committee (CNPMEM) denounced “extremist NGOs”, claiming that the marine mammals are “not endangered”.

This photograph taken on January 18, shows red mullet fish in a container at the Chef de Baie fishing port in La Rochelle, western France. PHOTO: AFP

Fish processing companies estimate they could lose more than EUR60 million (USD65 million) because of the ban.

On Thursday, the government promised to support the industry and would activate “partial unemployment measures and specific aid, if necessary”.

Some fishermen hinted they might go out to sea despite the threat of prosecution, but local authorities promised to intensify patrols.

Philippe Garcia, head of an association called Protection of Aquatic Environments (DMA), said it was in fishermen’s interest to observe the ban.

“If the fishermen don’t play along, it’s counter-productive for them,” he said, as dolphin deaths would strengthen the environmentalists’ case.

Philippines, UK seal defence alliance

Southeast Asia

January 19, 2024

MANILA (ANN/PHILIPPINE DAILY INQUIRER) – The Philippines solidifies defence ties with the United Kingdom for the next five years, encompassing military exercises and maritime-focused training.

According to the Philippines Department of Foreign Affairs (DFA), a memorandum of understanding (MOU) on defence cooperation was recently signed at the Philippine Embassy in London.

Philippine Ambassador to the UK Teodoro Locsin Jr and UK Minister of State for Defense Timothy Minto formalised the agreement, outlining a framework to strengthen bilateral collaboration in areas such as defence and military education, training, capacity building, peacekeeping operations, humanitarian assistance and disaster relief, armaments and military equipment, as well as research and technology.

For the UK Embassy in Manila, the MOU “outlines the intent of our defence engagement for the next five years across a range of areas, including military exercises, training and modernization efforts.”

“We can expect this engagement to focus on the maritime domain, exclusive economic zone, hydrograph, and UK participation in future military exercises,” it said.

Last August, Philippines Foreign Secretary Enrique Manalo signed a joint statement of intent with then-visiting former UK Foreign Secretary James Cleverly for both nations to “develop bilateral defence engagement to uphold the rules-based international order across the traditional air, land and maritime domains.”

In their joint statement, the Philippines and the UK said they would promote “a free and open maritime order based on upholding the United Nations Convention on the Law of the Sea as the legal framework for all activities in the ocean and seas.”

Jennie renews solo record on Billboard charts

Entertainment

January 19, 2024

(ANN/KOREA HERALD) — Jennie, a member of the renowned K-pop group Blackpink, has soared to No. 61 on Billboard’s Hot 100, breaking her own record as a solo K-pop female artist.

This accomplishment was confirmed by her label, YG Entertainment, on Tuesday.

Jennie achieved this milestone with “One of the Girls,” a collaboration with The Weeknd and Lily-Rose Depp for the original soundtrack of the HBO drama “The Idol,” in which they all played significant roles.

Jennie at the screening of the film ‘The Idol’ during the 76th edition of the Cannes Film Festival in Cannes, southern France, on May 22 2023. PHOTO: AFP

Initially entering the main songs chart at No. 100 upon its release, the single gained momentum, reentering at No. 69 last week.

Remarkably, solo efforts by other Blackpink members also secured positions on the chart.

Rose’s “On The Ground” claimed No. 70, while Lisa’s tracks “Lalisa” and “Money” secured No. 84 and No. 90, respectively.

In a noteworthy development, Jennie offered fans a glimpse of her workspace in a video marking her birthday.

Recently, she established her own company in collaboration with her mother to oversee her burgeoning career.

N Korea says tested ‘underwater nuclear weapon system’

World

January 19, 2024

SKOREA-NKOREA-MISSILE — People watch a television screen showing a news broadcast with file footage of a North Korean missile test, at a railway station in Seoul on January 14, 2024. North Korea fired a ballistic missile on January 14b, Seoul's military said, days after Pyongyang staged live-fire exercises near the tense maritime border with the South. (Photo by Jung Yeon-je / AFP)

SEOUL (AFP) – North Korea said Friday that it had tested an “underwater nuclear weapon system” in response to joint naval exercises by Washington, Seoul and Tokyo that involved a US nuclear-powered aircraft carrier.

The drills were “seriously threatening the security” of the North, so in response, Pyongyang “conducted an important test of its underwater nuclear weapon system ‘Haeil-5-23’ under development in the East Sea of Korea,” according to a statement from the defence ministry carried by state news agency KCNA.

Early last year, Pyongyang said it had carried out multiple tests of a purported underwater nuclear attack drone — a different version of the Haeil, which means tsunami in Korean — claiming it could unleash a “radioactive tsunami”.

Analysts have questioned whether Pyongyang has such a weapon.

Earlier this week, South Korea, the United States and Japan carried out joint naval drills in waters off southern Jeju Island, which they said were in response to North Korea’s Sunday launch of a hypersonic missile.

People watch a television screen showing a news broadcast with file footage of a North Korean missile test, at a railway station in Seoul on January 14, 2024. PHOTO: AFP

The drills involved nine warships from the three countries, including the aircraft carrier USS Carl Vinson.

Pyongyang said Friday the drills “constituted a cause of further destabilising the regional situation, and they are an act of seriously threatening the security” of the North, the defence ministry spokesman said, according to KCNA.

North Korea’s own test — the exact date of which was not given — ensured “our army’s underwater nuke-based countering posture is being further rounded off and its various maritime and underwater responsive actions will continue to deter the hostile military maneuvers of the navies of the US and its allies,” the spokesman said.

Recent months have seen a sharp deterioration in long-tense ties between the two Koreas, with both sides jettisoning key tension-reducing agreements, ramping up frontier security, and conducting live-fire drills along the border.

North Korean leader Kim Jong Un last week declared the South his country’s “principal enemy”, jettisoned agencies dedicated to reunification and outreach and threatened war over “even 0.001 mm” of territorial infringement.

Drones deployed?

The new announcement on the underwater test “is a clear sign of Haeil drones deployment to its navy fleets for use”, said Hong Min, a senior analyst at the Korea Institute for National Unification in Seoul.

“The North’s statement illustrates Pyongyang’s stance that it will respond in proportion to military exercise by the South, Japan and the US,” he said, adding that the North didn’t appear to be trying “to cross the line so as to provoke an armed conflict.”

Ahn Chan-il, a defector-turned-researcher who runs the World Institute for North Korea Studies, told AFP that it was “difficult to determine the exact capabilities” of North Korea’s purported underwater nuclear weapons systems.

“Considering North Korea’s defence science level and the fact that the weapon is still in a developing stage, it is not yet at a stage to pose a significant threat,” he said.

At Pyongyang’s year-end policy meetings, Kim threatened a nuclear attack on the South and called for a build-up of his country’s military arsenal ahead of armed conflict he warned could “break out any time”.

On Sunday, the North launched a solid-fuel hypersonic missile, just days after Pyongyang staged live-fire exercises near the country’s tense maritime border with South Korea, which prompted counter-exercises and evacuation orders for some border islands belonging to the South.

Kim also successfully put a spy satellite into orbit late last year, after receiving what Seoul said was Russian help, in exchange for arms transfers for Moscow’s war in Ukraine.

Singapore urges global law against deepfakes

Southeast Asia

January 19, 2024

SINGAPORE (ANN/THE STRAITS TIMES) – The oversight of artificial intelligence (AI) is anticipated to vary across a spectrum, with deepfakes residing at the extreme end, potentially necessitating robust legal intervention, stated Singapore Communications and Information Minister Josephine Teo on January 17.

Describing deepfakes as an “assault on the infrastructure of fact,” she emphasised the need for legal measures to address the fraudulent use of AI tools in creating deceptive images resembling real individuals. Minister Teo shared these insights during a panel discussion at the World Economic Forum (WEF) in Davos, Switzerland, held from January 15 to 19, highlighting the global challenge posed by deepfakes to societal integrity.

Mrs Teo spoke in the session titled 360° on AI Regulations alongside European Commission vice-president for values and transparency Vera Jourova, White House Office of Science and Technology Policy director Arati Prabhakar, and Microsoft vice-chair and president Brad Smith.

Mrs Teo said a risk-based approach could be taken to regulate the AI industry without hampering innovation, with laws for extreme matters like deepfakes, and “lighter” frameworks and guidelines that can apply to innovation on the other end of the spectrum.

“There is a real sense that (deepfakes are) an issue that all societies, regardless of political model, will have to deal with. And what is the right way of dealing with deepfakes?”

She added: “I cannot see an outcome where there isn’t a law in place. Exactly in what shape or form it will take, we will have to see.”

Ms Jourova, who sits on the European Commission, said concerns about AI-driven disinformation have prompted European regulators to mandate that AI-made content be labelled.

The European Union’s AI Act passed in December will eventually require all AI-generated content to be watermarked.

She added: “For me, it is a nightmare (if) voters are manipulated in a hidden way by means of AI and a combination of targeted disinformation. It would be the end of democratic elections.”

Singapore’s Model AI Governance Framework for Generative AI, announced on January 16, identifies nine key dimensions of AI governance, like accountability and security, expanding on the existing framework from 2019 that covers only traditional AI amid rapid AI development.

Content provenance is a key way to address the misuse of AI, the framework stated, referring to technical solutions that clearly show the source of AI-generated content like digital watermarking and the ability to trace the source of such content.

This comes as a spate of deepfakes that have hit Singapore, including videos of Prime Minister Lee Hsien Loong and Deputy Prime Minister Lawrence Wong, whose likenesses were used in scam videos to promote investment products.

The authorities also announced on January 10 that USD20 million has been earmarked for a new research initiative to tackle the rising scourge of deepfakes and misinformation.

Communications and Information Minister Josephine Teo (second from left) at a panel discussion, moderated by Eurasia Group president Ian Bremmer (centre), at the World Economic Forum on Jan 17. PHOTO: ANN/THE STRAITS TIMES SOURCE

GLOBAL STANDARDS NEEDED

Asked about how easy it will be for Singapore to navigate differing AI standards globally, Mrs Teo said that views on the use of AI and the risks are split.

But this is a “divergent phase” and views will likely converge as AI’s uses and risks become clearer, she added.

“We can’t have rules that we made for AI developers deployed in Singapore only, because they do cross borders… These have to be international rules.”

Mr Smith of Microsoft said many of the regulations around the world have shaped up around similar concerns. These build on existing fundamental laws in data privacy, competition and consumer protection that already apply to AI, even though they may not have been written for the technology.

Asked about China’s role in influencing global AI, Ms Jourova said there were similarities in views between Europe and China on how AI should be used, but they differ in the use of AI for surveillance.

“The main issue was how far to let the states go in using AI, especially in law enforcement, because we want to keep this philosophy of protecting the individual and balancing it with national security measures,” she said. “So here, we cannot have a common language with China.”

Mrs Teo said China has been open regarding its use of AI and has published its expectations for businesses. “If you go to China and you talk to its AI developers, there is no misunderstanding on their part about the expectations that their government has on them.

“If your AI models are primarily going to be used within the enterprise sector, there is a light touch (in regulation). But if it is going to reach consumers in society, there are a whole host of requirements that will be made.”

Borneo Bulletin OnlineThe Independent Newspaper in Brunei Darussalam, Sabah and Sarawak

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