Investors worry as Singapore, India fight over futures

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Investors worry as Singapore, India fight over futures

ASEAN+ May 26, 2018 01:00

By THE STRAITS TIMES
ASIA NEWS NETORK
SINGAPORE

WHAT STARTED as a business disagreement between two Asian exchanges has become a source of growing concern for international investors.

A fight between Singapore Exchange and National Stock Exchange of India over derivatives contracts is threatening to end a popular way of hedging Indian shares.

The battle, which went to court in Mumbai this week, has left traders scrambling to find new ways to manage their exposure to the US$2.3 trillion market, one of Asia’s biggest. The dispute broke into the open in February after NSE said it was axing licensing agreements with overseas bourses.

India is trying to discourage offshore trading and promote a tax-free trading zone in Prime Minister Narendra Modi’s home state, part of a broader effort by Asian nations to keep control of capital while further integrating into the global financial system. That’s not a combination that appeals to money managers.

“The moves do not help and it sends a wrong signal to the investing community,” said Salman Ahmed, London-based chief investment strategist at Lombard Odier Investment Managers. “You want to open your capital account incrementally, and for foreigners to invest in your very young population. This is a very bad signal to give.”

NSE and SGX first clashed in January, when the Indian bourse asked its counterpart to delay plans to introduce single-stock futures that would track some of the subcontinent’s largest companies.

SGX ignored the request, and a week later India’s three national exchanges said they’d cancel their offshore pacts, which meant that Singapore could no longer offer Nifty 50 Index futures.

“The battle is more about control and volumes,” said Vik Mehrota, chief executive officer of Venus Capital Management in Boston, who has been investing in India since 1994. “This is a self-preservation move by NSE. This is an unnecessary fight.”

Officials from NSE and SGX declined to comment.

NSE is suing to prevent SGX from starting contracts that would replace the Nifty 50 derivatives.

Singapore’s exchange has readied the SGX India Futures for launch on June 4, and has said the contracts will use publicly available data. NSE argued that they are “unlicensed products” and “identical” to the Nifty-branded futures. The Indian exchange had sought the urgent hearing without giving notice to SGX, a sign of how much the 18-year partnership between the companies has deteriorated.

The next hearing in the case is due on Saturday; in the meantime the Bombay High Court has issued an injunction against SGX to prevent it from launching the new products.

If the NSE wins, and assuming SGX abides by a ruling from India, investors will be left without an easy offshore way to hedge Indian stocks.

Some global asset managers are saying they may pull out of the country, said Eugenie Shen, managing director and head of the asset management group at the Asia Securities Industry & Financial Markets Association. Others may lower their exposure, she said.

“Many still prefer to access India through offshore products or offshore means because the general view is that it is difficult and costly for foreigners to invest onshore,” Shen said.

The question investors are asking is what they’ll do if Singapore abandons Indian futures, which currently have about US$15 billion in open interest, according to Sean Cunningham, head of capital markets and fixed income for iShares in Asia Pacific at BlackRock Inc.

“Investors are looking to alternatives to be able to get the exposure they are going to have to get,” Mr Cunningham said. “There is still a lot of uncertainty out there what the end result will be.”

Govt urged to hasten on draft organic food law

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Govt urged to hasten on draft organic food law

ASEAN+ May 26, 2018 01:00

By THE PHNOM PENH POST
ASIA NEWS NETWORK
PHNOM PENH

THE PRIVATE sector in Cambodia has called on the government to speed up enacting the organic food law, which is currently languishing in the draft stage. Having the law, it said, will provide product recognition.

Ten Ra, the technical adviser on trade facilitation and standards for German development agency GIZ, said a national organic food law is an important key to build trust in the market.

While there are organic farms producing quality produce that has made its way into markets across the country, consumers still question the quality and safety of the food.

“Cambodia doesn’t have an organic law to certify products, so it is difficult to gain the trust of consumers.

“While farmers can attest to the quality and safety of their products, consumers fear buying them,” he said, adding that some organic producers spent a lot of money for international certification, which isn’t necessary for selling in the domestic market.

“Having our own organic law will be cheaper than obtaining international certification. The government should consider having the law passed as soon as possible to control the quality of such products and promote them locally too,” Ra said.

Kean Sophea, the deputy director for the Department of Horticulture and Subsidiary Crops in the Ministry of Agriculture, said the national organic bill has already completed the draft bill.

It is currently under review by a Ministry of Agriculture committee, which may take some time to finalise it as the bill contains about 60 articles.

“The bill is being analysed by a committee in the ministry, and only after they have completed the job can we make it available for public review,” Sophea said, adding that such a law is key to enforcing standards and monitoring quality.

When passed, he said the ministry will provide a logo to be stamped on the product to certify their quality, standard, and safety, and to weed out those who merely claim their food is organic.

“We have the mechanism to control the quality of organic food in order to build trust with markets and consumers,” Sophea said, adding that the ministry will encourage farmers to produce organic products by using proper techniques and with compost as fertiliser.

He said this will reduce the cost and raise production to meet market needs. Currently, organic products cost about 50 per cent more than regular domestic and imported vegetables, due to a shortage of producers and low production.

Sam Vitou, an adviser to the Cambodian Center for Study and Development in Agriculture, an organisation that works with Cambodian farmers and who was at the first meeting with the Ministry of Agriculture last year to discuss proposed organic law, said it would help to promote and encourage organic farmers to be passionate about producing high-quality and safe produce.

“The law will ensure that the farmers’ produce is of high quality and safe. It will also encourage them to expand their farms and add value to their produce through better prices,” he said.

Jakarta issues samurai bonds worth $912m

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Jakarta issues samurai bonds worth $912m

ASEAN+ May 26, 2018 01:00

By THE JAKARTA POST
ASIA NEWS NETWORK
JAKARTA

THE INDONESIAN government on Thursday announced it would issue Japanese yen-denominated samurai bonds worth 100 billion yen (US$912.18 million).

The government debt papers consists of four series – RlJPY0521, RlJPY0523, RlJPY0525, and RlJPY0528 – which are worth 49 billion yen, 39 billion yen, 3,5 billion yen and 8,5 billion yen respectively.

The coupon rates of the series are of 0.67 per cent, 0.92 per cent, 1.07 per cent and 1.27 per cent, while the maturity dates are May 31, 2021, May 31, 2023, May 30, 2025, and May 31, 2028.

The Finance Ministry’s government debt paper director Loto Srinaita Ginting said Indonesia’s regular issuance of samurai bonds had received positive responses from Japanese investors. “This is indicated by the high demand for the instrument amid global market fluctuation, particularly for government debt papers from developing countries like Indonesia,” he said in Jakarta on Thursday as quoted by kontan.co.id.

He said his team had informed potential investors of the plan to issue samurai bonds during a non-deal roadshow to explain the achievements of the Indonesian economy such as the credit rating upgrades granted by a number of institutions.

The roadshow had managed to maintain Japanese investors’ confidence in the Indonesian economy, he added.

The samurai bonds will be issued on May 31. The joint lead arrangers are Daiwa Securities Co Ltd, Mizuho Securities Co Ltd, Nomura Securities Co Ltd and SMBC Nikko Securities Inc.

The four series have obtained Baa2 from Moody’s, BBB- from S&P, and BBB from Fitch.

Sugar lobby battles sweet drinks tax

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Sugar lobby battles sweet drinks tax

ASEAN+ May 26, 2018 01:00

By VIET NAM NEWS
ASIA NEWS NETWORK
HANOI

THE Vietnam Sugarcane and Sugar Association has voiced concerns against a government proposal to impose a special consumption tax of 10 per cent on sweet drinks.

According to the draft of the five revised tax laws put forward by the Finance Ministry, including the law on special consumption tax, the ministry has proposed to levy a special consumption tax of 10 per cent on sweet drinks, excluding milk, and to increase the value-added tax (VAT) by two percentage points from 2019.

The ministry finished collecting feedback on the drafts of amendments to these laws at the end of 2017, including laws on VAT, special consumption tax, corporate income tax, personal income tax and natural resources protection tax.

The aim of the proposal is to protect the health of consumers, especially to reduce obesity and diabetes. However, the Sugarcane and Sugar Association, businesses and consumers disagree with the proposal.

The association said the state should review the proposal comprehensively.

It said special consumption tax on sweet drinks is neither a popular practice in the world nor in the region, which comprises 25 per cent of the total countries in the world. Moreover, there is no evidence that levying tax on sweet drinks can improve the health of consumers, reported Nguoi lao dong newspaper.

Tax and health experts also do not guarantee that increasing taxes on sweet drinks will reduce the incidence of diabetes and obesity because there are many causes of these diseases besides food. Moreover, increasing taxes is unlikely to reduce sweet drinks’ consumption in urban areas, where middle- and high-income people can afford higher prices.

Therefore, the association has proposed the Ministry of Finance to reconsider its decision.

It said there is a need for a comprehensive report on the impact of this policy on domestic sugar and beverage production industries as well as on consumers and domestic economy.

The Vietnam Beer, Alcohol and Beverages Association has also opposed the proposal.

It said the price of beverages would surge by at least 12 per cent if the state imposes the special consumption tax on sweet drinks of 10 per cent, and increases VAT for those products from 10 per cent to 12 per cent and VAT for sugar from 5 per cent to 6 per cent.

Enterprises in the beverage production industry will find it difficult to compete and will face the risk of a reduced scale of production, it said.

At the same time, the Vietnam Sugarcane and Sugar Association said the State needs to exercise tight control on the use of high-fructose corn syrup (HFCS), the raw material for the production of beverages, to protect consumers’ health.

HFCS is a sweetener made from cornstarch that has been processed by glucose isomerase to convert some of its glucose into fructose.

Malaysian collector Joshua Arulselvan has 700 glasses to drink with

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Malaysian collector Joshua Arulselvan has 700 glasses to drink with

Breaking News May 26, 2018 01:00

By The Star
Asia News Network

He may not be a drinker but he is a collector of drinking glasses. You name it, he has it – beer glasses, wine glasses, champagne glasses, shot glasses, crystal glasses, souvenir glasses, branded glasses, even commemorative Merdeka glasses.

“I only drink on social occasions, such as Chinese New Year and Christmas. I’d have many more glasses if I were a drinker,” says Joshua Arulselvan, 58, of Bandar Sri Damansara, Kuala Lumpur, who has amassed about 700 unique glasses. “There is only one of each,” he emphasises.

To the casual observer, the glasses in Arulselvan’s collection seem very ordinary. Arulselvan explains that, though some of the glasses look similar, upon closer inspection, one will notice the subtle differences. For instance, one glass may have one ring around the rim while another has two rings, or there may be a slight difference in the height of the glasses.

“I’m trying to reach 1,000 glasses,” adds the insurance agent and teamworking trainer. Although he doesn’t think that there are any valuable collector’s items in his collection, he says, “Ultimately, a collection has the most meaning for the collector, no matter how spectacular or otherwise.”

The clinking of glasses

It was in 1982-83 that Arulselvan got started on this peculiar hobby.

“I used to have this habit of reading in bed at my home in Ipoh, with a drink beside me. One day, after I had finished my drink, I pushed the glass under my bed as I was too lazy to wash it immediately … and I heard a clink. I looked down and saw four or five other glasses there. They were Milo glasses of different designs – free gifts with a purchase of the product.”

Nestle was just one of several companies that were giving away free glasses when they were promoting their brands back in the 1980s. That prompted him to look around his home for other glasses – and he found various ones.

“In the 1960s and 70s, drinking glass sets were often presented as wedding gifts. Some of the glasses were not used, yet were not given away either.”

glasses

Joshua Arulselvan holds up the first glass in his collection, which got him started on this hobby.

image: https://www.star2.com/wp-content/uploads/2018/05/str2_evjoshua_ev_6_oldbrands.jpg

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Drinking down memory lane with a few vintage brands.

 

Arulselvan gets his drinking glasses from a variety of sources. “From relatives – cousins, my sister-in-law who took some from her mother’s house – friends, colleagues, Rotaract Club members, church friends, games partners.”

When word gets out that he collects such items, his contacts tend to give him their spare ones, sometimes to de-clutter their own homes.

Special items

Arulselvan remembers meeting an elderly woman over a decade ago in Petaling Jaya Old Town, Selangor. She said that in her late father’s collection were a few Queen Elizabeth coronation glasses that bore the image of England’s coat of arms.

She told him that no one else in the family was interested in the collection. He would have offered to buy the glasses from her but, to be fair, he did tell her that they would be of worth. And that probably caused her to change her mind about selling them.

“They would’ve been quite valuable, and collector’s items,” he comments, “with a small glass worth RM60 to RM100 and a big glass, upwards of RM200. I like browsing flea markets, jumble sales and garage sales, as you never know what kinds of glasses you’ll find there.”

glasses

Joshua has no less than 700 unique receptacles.

image: https://www.star2.com/wp-content/uploads/2018/05/str2_evjoshua_ev_8_colourful-1024×1024.jpg

glasses

Joshua gets his drinking glasses from friends and relatives.

However, his search for the Queen E coronation glasses, in places like Amcorp Mall in Petaling Jaya, has proved unfruitful.

“Only 10% to 15% of the 700 in my collection are bought, whether locally or from overseas. The rest are gifts, what people didn’t want, some left behind when people moved house,” Arulselvan elaborates.

The glasses that were bought from overseas have come from countries such as France, Belgium, the Netherlands, the Philippines, England, Australia, Indonesia, Cambodia and Thailand.

“The one that is most dear to me is the one I call No.1, the very first glass that started the whole collection. It is a sturdy and plain non-coloured glass with a handle. To me, it’s very special and I won’t give it away,” he says.

image: https://www.star2.com/wp-content/uploads/2018/05/str2_evjoshua_ev_3_kualaLumpur.jpg

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The Kuala Lumpur glass depicting iconic landmarks stands out.

image: https://www.star2.com/wp-content/uploads/2018/05/str2_evjoshua_ev_5_foreign2.jpg

glasses

Seven hundred is a lot of glasses, so storage is quite a challenge for Arulselvan. “In my previous place, there were ample shelves. Then I moved to this apartment. There are five long tables, and all my glasses are displayed here. I’m running short of space!”

In any case, the glasses are not purely ornamental. And there is definitely no lack of glasses to drink from, whenever he has visitors. “When friends or relatives come over, they are invited to choose a drink … and a glass,” he quips.

glasses

Quirky glasses in the shape of a boot, and in various sizes to boot.

Creative ways

“I have given a number of the extra ones away as gifts, for Christmas, weddings, birthdays, anniversaries, etc. At one time, I also had 50-plus mugs and I gave them away. To me, it’s akin to giving part of myself away,” says Arulselvan.

His recipients have done some creative things with the glasses. For example, the womenfolk in his family and among his colleagues place floral-shaped soaps into the glasses and wrap them in lace. They do make pretty gifts.

Some take the glasses to Central Market in KL to have special words painted on them – such as, “As you go through life together, take some time to have a drink” – to be given as wedding presents. For a touch of personalisation, some have their own names painted on the glasses.

Arulselvan also uses his collection to build his student’s vocabulary when he gives tuition classes.

“I started giving English language tuition three years ago, and I still do it every Saturday morning. My student, Amir Hazim Hanzam Hairus, 12, knows my glass collection well. Part of his English lessons with me had been on the different varieties in my collection.

“He asks about my collection every now and then, and whether I’ve got any new ones. He understands my passion for my collection – and doesn’t think I’m strange or crazy!

“Also, he carefully keeps some of the glasses I’ve given to him. Eventually, I intend to leave a significant part of my collection to him,” says Arulselvan.

Asia stocks fall as Trump ditches Kim summit, but Europe rebounds

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  • Hong Kong’s Hang Seng index is down 0.6 percent closing at 30,588.04. Photo/AFP
  • South Koreans react to President Trump’s cancellation of the summit with North Korea. Photo/AFP

Asia stocks fall as Trump ditches Kim summit, but Europe rebounds

Breaking News May 25, 2018 18:40

By Agence France-Presse
London

Asian markets mostly fell Friday as US President Donald Trump abruptly axed next month’s summit with North Korean leader Kim Jong Un, but Europe rebounded on hopes the pair would still meet.

Frankfurt, London and Paris equities had already skidded lower on Thursday as Trump’s announcement hit the newswires, prompting many investors to ditch risky equity investments.

But European indices bobbed higher on Friday as both Washington and Pyongyang left the door open for the summit to eventually take place.

North Korea declared that it is willing to talk to the United States “at any time”, while China urged both sides to show restraint.

“The focus has been firmly centred upon Donald Trump, with his decision to cancel the June meeting with Kim Jong Un bringing about a return to the risk-off sentiment,” said analyst Joshua Mahony at trading firm IG.

“However, it seems that it is the North Korean who is the pragmatist on this occasion, with his openness to reinstate the meeting helping limit the fallout from yesterday’s announcement.”

In a letter released by the White House, Trump told Kim he was cancelling the June 12 summit because of North Korea’s “anger” and “hostility”.

The message came after a key aide to Kim hit out at comments by Vice President Mike Pence, saying they were “ignorant and stupid” and warning the talks could be cancelled.

However, Trump’s letter added that the talks could still go ahead.

Markets have been jittery this week as the US president had warned in recent days that he could cancel the summit, while also voicing his displeasure at a deal to avert a trade war with China and threatening tariffs on car imports.

Thursday’s summit cancellation took many by surprise — including North and South Korean officials — and fuelled concerns about the future of a rapprochement that has had many hoping for peace on the divided peninsula.

“It looks like we are back to fire and fury as the modus operandi for the White House again after President Trump (threatened) a new 25 percent car import tariff and cancelled the summit with North Korea,” said Greg McKenna, chief market strategist at AxiTrader.

“Not only was the summit cancelled but it was back to threatening the DPRK with a military response.”

Fears for oil cap 

World oil prices meanwhile dived by more than a dollar, extending Thursday’s heavy falls after Russia said an agreement with OPEC to cap production — which has provided support to prices in recent years — could be up for revision at a meeting next month.

The comments from Energy Minister Alexander Novak dented a rally in the commodity, which has hit three-and-a-half-year highs on the back of improving demand and supply worries from Venezuela and Iran.

Meanwhile Russian and Saudi Arabian oil ministers meeting in Moscow on Friday said they believe a deal is possible to gradually boost oil output from as soon as July.

Key figures around 1000 GMT

London – FTSE 100: UP 0.3 percent at 7,736.86 points

Paris – CAC 40: UP 0.6 percent at 5,581.57

Frankfurt – DAX 30: UP 1.1 percent at 12,989.76

EURO STOXX 50: UP 0.6 percent at 3,544.32

Tokyo – Nikkei 225: UP 0.1 percent at 22,450.79 (close)

Hong Kong – Hang Seng: DOWN 0.6 percent at 30,588.04 (close)

Shanghai – Composite: DOWN 0.4 percent at 3,141.30 (close)

New York – Dow: DOWN 0.3 percent at 24,811.76 (close)

Euro/dollar: UP at $1.1727 from $1.1720 at 2100 GMT

Pound/dollar: DOWN at $1.3369 from $1.3381

Dollar/yen: UP at 109.57 yen from 109.26 yen

Oil – Brent North Sea: DOWN $1.75 at $77.04 per barrel

Oil – West Texas Intermediate: DOWN $1.02 at $69.69

Some US news websites blocked by EU data law

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Photo : AFP
Photo : AFP

Some US news websites blocked by EU data law

ASEAN+ May 25, 2018 16:21

Brussels – Several major US news websites including the Los Angeles Times were blocked in Europe on Friday after the EU’s new data protection laws came into effect.

    The LA Times, Chicago Tribune, New York Daily News, Baltimore Sun and Orlando Sentinel websites all displayed the same message saying they could not be accessed.

“Unfortunately, our website is currently unavailable in most European countries,” the message read.

“We are engaged on the issue and committed to looking at options that support our full range of digital offerings to the EU market. We continue to identify technical compliance solutions that will provide all readers with our award-winning journalism.”

The blocked websites are all owned by media company Tronc, formerly known as Tribune Publishing.

Local US newspapers owned by Lee Enterprises, including the St. Louis Post Dispatch and Arizona Daily Sun, were also out of reach.

“We recognise you are attempting to access this website from a country belonging to the European Economic Area (EEA) including the EU which enforces the General Data Protection Regulation (GDPR) and therefore cannot grant you access at this time,” its website said.

The EU says the so-called General Data Protection Regulation (GDPR) will allow citizens to take back control of personal information held online.

Brussels insists that the laws will become a global benchmark for the protection of people’s online information, particularly in the wake of the Facebook data harvesting scandal.

But it has also been blamed for a flood of spam emails and messages in recent weeks as firms rush to request the explicit consent of users to contact them.

Even though the rules were officially adopted two years ago, with a grace period until now to adapt to them, companies have been slow to act, resulting in a last-minute scramble this week.//AFP

Malaysia resolves to seek justice for MH17 victims

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  • File photo : AFP
  • File photo : AFP
  • File photo : AFP

Malaysia resolves to seek justice for MH17 victims

Breaking News May 25, 2018 13:38

Putraya – Malaysia said it is determined to seek justice for the victims of Malaysia Airlines Flight MH17 that was shot down on July 17, 2014.

The Foreign Ministry (Wisma Putra) said in a statement on Friday that Malaysia remained resolute in the pursuit to prosecute those responsible for the act.

In this regard, it said, Malaysia appreciated the presentation by the Dutch-led Joint Investigation Team (JIT) on Thursday (May 24) on the latest report and the way forward on the criminal investigation as well as its related press statements.

“We will study the findings contained in the report carefully,” Wisma Putra said.

image: https://content.thestar.com.my/smg/settag/name=lotame/tags=all,Demo_AffluentAudience,Int_Business_Finance

 

In a statement published on its website, JIT said the team was convinced that a BUK TELAR was used to down MH17, and that it originated from the 53rd Anti Aircraft Missile Brigade (53rd Brigade), which is a unit of the Russian Army from Kursk in the Russian Federation.

Wisma Putra said that as a member of the JIT, Malaysia expressed its gratitude for all the hard work of the JIT members that had enabled critical information regarding the tragic incident to be established.

“Malaysia commends the progress on this,” it said.

Wisma Putra said Malaysia had consistently called for and supported a fully transparent, independent and exhaustive investigation process.

Hence, it said. Malaysia reiterated the JIT’s call for the public to come forward to assist in the investigation process and to provide additional supporting evidence against the people directly involved in order for justice to prevail.

“Our thoughts and prayers are with the grieving families and the loved ones of the passengers and crew of Flight MH17.

“We owe it to them to do everything possible to bring closure to this tragic incident,” Wisma Putra said.

The Malaysia Airlines Boeing 777 was flying from Amsterdam to Kuala Lumpur when it was shot down over the conflict zone in eastern Ukraine on that fateful day. All 298 people on board were killed.

Almost $30 million seized in raids linked to Malaysian ex-PM

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Malaysia's former prime minister Najib Razak speaks to the media after being questioned at the Malaysian Anti-Corruption Commission (MACC) office in Putrajaya on May 24, 2018./AFP
Malaysia’s former prime minister Najib Razak speaks to the media after being questioned at the Malaysian Anti-Corruption Commission (MACC) office in Putrajaya on May 24, 2018./AFP

Almost $30 million seized in raids linked to Malaysian ex-PM

Breaking News May 25, 2018 13:25

By Agence France-Presse
Kuala Lumpur

3,261 Viewed

Malaysian police said Friday they found cash amounting to almost $30 million in a raid on a luxury apartment as they probed corruption allegations swirling around ousted leader Najib Razak.

The money was seized along with 284 boxes containing designer handbags, as well as watches and jewellery from a condominium in Kuala Lumpur, which was raided along with Najib’s home and other sites last week.

Najib’s coalition was thrown out of power for the first time in over six decades in the May 9 poll, defeated by a reformist alliance headed by his former mentor Mahathir Mohamad.

Public disgust at allegations of corruption swirling around Najib was a major factor for the loss, with the ex-leader, his family and cronies accused of looting billions of dollars from sovereign wealth fund 1MDB.

There has been much speculation about what the seized goods consisted of and their value after five trucks were reportedly brought in to help move the vast stash.

Giving an update, the police’s head of commercial crime Amar Singh said: “From the money found, there were 26 currencies, the total amount as of yesterday is 114 million (ringgit) ($28.6 million).”

The money was found in 35 bags while another 37 bags contained watches and jewellery, he told a press conference. The value of other items will be calculated later, he said.

The seizure of the luxury goods added to public scorn of Najib’s wife Rosmah Mansor, long reviled by Malaysians for her perceived haughty demeanour and reported vast collection of designer bags, clothing and jewellery.

Her love of overseas shopping trips, as middle class Malaysians struggle with rising living costs, added to a sense of spreading, deeply-entrenched rot in the country’s long-ruling elite.

The couple’s fall from grace has been swift and hard.

They have been barred from leaving the country and the ex-premier has been questioned by anti-graft investigators over claims 1MDB money ended up in his bank accounts, and looks likely to be charged.

Najib and the fund deny any wrongdoing.

SPECIAL REPORT: Media freedom takes beating under junta

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SPECIAL REPORT: Media freedom takes beating under junta

politics May 26, 2018 01:00

By KITTIPONG THAVEVONG
THE NATION

Through its orders, NCPO has managed to rein in outlets.

THOUGH there are no longer military personnel posted at media outlets, unlike during the period following the military coup on May 22, 2014, a tight grip on media has been maintained more surreptitiously via junta laws and orders.

Journalists and media groups have complained about restrictions on press freedom under the junta, which has been in power for four years. Media groups contend that freedom has been curbed by the National Council for Peace and Order (NCPO) through its orders and announcements.

Even a junta plan to reform the media, as part of national reforms, is viewed as an attempt to control free flow of information. The plan calls for the issuance of a new law that aims to regulate the media through “promoting ethics and standards for the profession”, rather than protecting freedom of the media against many existing restrictive laws such as the Computer Crime Act.

On World Press Freedom Day on May 3, media associations called on the NCPO to revoke its orders and announcements deemed to restrict freedom of the press. Among some 800 orders issued by the junta over the past years it has been in power, several have restricted media freedom.

In many instances, those orders and announcements were used to close – temporarily or permanently – TV stations critical of the NCPO and its government. Among those targeted were Voice TV, Peace TV, TV24, DMC and Fah Hai TV. Most of them are linked to the red shirts and are satellite-based, except Voice TV, which is a digital channel run by former prime minister Thaksin Shinawatra’s son Panthongtae.

In addition to media outlets, authorities have also censored news websites by blocking access to them. Critical journalists have been summoned by the junta for “attitude adjustment” sessions at military barracks, among them former senior Nation reporter Pravit Rojanaphruk.

The junta’s tough actions have caused the mainstream media to turn to self-censorship.

The restrictive orders will also affect the media and journalists after the junta has left power, since they will be inherited by the post-coup government. Orders issued by the coup-makers are regarded as laws and could prove difficult to rescind.

For example, it took a 14-year campaign by media groups before an elected government in 1990 rescinded the restrictive National Reform Council Order No 42 (“Por Ror Sisib Song”). The order, issued after a military coup in October 1976, prohibited newspapers from publishing any content deemed threatening to national security or damaging to the government, the country or the Thai people as a whole. It also empowered authorities to withdraw the licence for publishers, editors and owners involved, which led to newspapers being closed down.

Media associations also campaigned against moves perceived as attempts to control the media through legislation passed under the guise of “media reform”. They protested against a bill proposed by the National Reform Steering Assembly that would require licensing of media professionals and a regulatory committee that would include top bureaucrats. Media cried foul and pointed to the possibility of state interference.

The bill later was discarded, but a similar law is in the making after the formation of the National Reform Committee on Media and Information Technology, which includes some prominent media personalities. The junta’s master plan for reforming the country in 11 areas, including the media and IT, has been in effect since April 6. Promoting media ethics and standards are some of the aspects in the reform plan.

The new legislation, on the Promotion of Media Ethics and Professional Standard, is being drafted and is expected to be enacted within this year. Called the “media control law”, this bill has been strongly opposed by the Thai Journalists Association and other media professional groups.

Over the past four years, the junta has managed to control community radio stations that were often used to spread political views and mobilise political support before the coup. As a result, many “red shirt” radio hosts moved online, setting up news channels on YouTube. But they have to run their programmes from outside the country.

In the meantime, Thailand has seen the birth of new media outlets since the coup, including BBC Thai, Standard and The Matter, whose online articles have been critical of the junta.

On the international front, Thailand’s image over the past four years has taken a beating with freedom of the press on the decline. Reporters Without Borders called junta leader General Prayut Chan-o-cha a “press freedom predator” and accused the NCPO of keeping journalists and web bloggers under permanent surveillance.

The NCPO “often summons them for questioning and detains them arbitrarily”, it said.

The international media watchdog’s 2018 World Press Freedom Index ranks Thailand at 140 out of 180 countries, slightly better than last year when the Kingdom was at 142. Thailand was ranked 136 in 2016, 134 in 2015, and 130 in 2014.