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SINGAPORE - Singapore oil field services firm Swiber Holdings Ltd filed an application to wind up the company and said a Singapore court had appointed provisional liquidators, making it the biggest local name to fall victim to the slump in oil prices.
In a statement to the Singapore Exchange, Swiber said the hearing to wind-up the company has been set for August 19. Swiber, which operates a fleet of 51 vessels, did give any specific reason for the move but said it was facing letters of demand for US$25.9 million (S$34.9 million) and had warned earlier this month of delays in raising US$200 million in preference shares.
Local oilfield services companies have been burdened by weak oil prices, which have strained their liquidity, with charter rates tumbling and clients either delaying or cancelling projects. "If highly leveraged offshore and marine companies are unable to raise capital from equity markets, then they will be left with very little other options other than to file for liquidation or for judicial management," said Joel Ng, an analyst at KGI Fraser Securities.
Over the next year-and-a-half, bonds totalling nearly S$1.2 billion from energy and offshore marine issuers in Singapore will mature, with S$615 million due over the next five months, according to IFR, a Thomson Reuters publication.
Another firm, Technics Oil & Gas Ltd, and its unit were placed under judicial management this month.
Investors had turned more positive on Swiber after it redeemed two bonds in June and July totalling S$205 million.
Swiber said this month a preference share sale agreement for US$200 million had been delayed and that it was seeking legal advice. But a flood of letters of demand, including statutory demands, had flowed in since Monday, claiming a total US$25.9 million, as of July 26, adding more pressure on the company.
Swiber said some of its executive directors, including its chief financial officer, had resigned.
From just 10 vessels in 2006, Swiber has expanded to own and operate a fleet comprising 38 offshore vessels and 13 construction vessels. It has more than 2,700 employees across Southeast Asia and other countries, according to its website.
Swiber's longest dated bond due 2018 started falling sharply in mid-March. The provisional liquidators of the company, which has a market value of S$50 million, have asked for trading in Swiber's shares to be suspended.
The High Court of Singapore appointed KordaMentha Pte Ltd's Cameron Lindsay Duncan and Muk Siew Peng as the joint and several provisional liquidators of the company.
Feeling the heat: OCBC’s total oil and gas exposure was US9.32bil, nearly half of which to the offshore oil services segment. – Reuters
Banks hit by poor demand for loans from oil and gas sector
SINGAPORE: Two of Singapore’s top banks flagged mounting concerns about loans to the oil and gas sector, on the same day that a prominent local oilfield services firm announced it was winding up, under the weight of crushing debt.
The dour outlook from Oversea-Chinese Banking Corp and United Overseas Bank, Singapore’s second- and third-largest lenders by assets, respectively, came as Swiber Holdings said it had filed for liquidation, making it the biggest local name to fall victim to the slump in oil prices.
OCBC and UOB, along with Singapore’s No.1 lender DBS Group Holdings, have long maintained prudent lending standards and adequate capital levels to become some of the safest banks in the world.
But oil’s 60% slump over the past two years is beginning to impact them, as the lenders’ main activity is centred on South-East Asia, a region for which oil and gas is a key industry. Banks are being hit by both poor demand for loans from the sector and by more loans turning sour.
“The loan demand is very weak,” OCBC CEO Samuel Tsien told a quarterly earnings briefing, adding that the oil and gas services sector continues to be under pressure.
“Our distressed indicators for this portfolio continue to deepen, but have not broadened,” Tsien said.
Over the next year-and-a-half, bonds totalling nearly S$1.2bil (US$881mil) from energy and offshore marine issuers in Singapore will mature, with S$615mil due just over the next five months, according to IFR, a Thomson Reuters publication.
OCBC’s total oil and gas exposure was S$12.6bil (US$9.32bil), nearly half of which to the offshore oil services segment.
UOB expected that over the next one to two years the key concern for the bank would be companies in the oil and gas sector, its CEO Wee Ee Cheong told a briefing,
OCBC posted a 15% drop in quarterly profit, hit by lower insurance income, though UOB surprised with a 5.1% jump in earnings on higher trading income.
However, net interest income was weak at both banks, which also saw bad-debt provisions climb.
OCBC said its customer loans contracted 2% from a year ago due to lower trade loans and reduced offshore borrowings of Chinese companies due to more favourable onshore borrowing rates in China.
Shares of UOB were down 1.6% in late afternoon trade, while OCBC fell 0.6 percent. Shares of DBS, which will report results on Aug 8, were down 2.6%. – Reuters
Apr 6, 2016 ... Some think it will be years before oil returns to $90 or $100 a barrel, a price that
was pretty much the norm over the last decade. Credit Michael ...
Sep 30, 2015 ... Many oil majors have announced job cuts to manage costs that had spiralled
upwards during the boom days in the industry. Oil majors now ...
Nov 23, 2014 ... Malaysia's economy is very much dependent on the oil and gas sector. ... One
notable impact of falling crude oil prices is on the government's ...
Dec 2, 2014 ... PETALING JAYA: With the oil and gas (O&G) sector being the hardest hit in the
current market rout, tycoons who own significant stakes in these ...
Nov 29, 2014 ... Beginning July this year, the oil and gas dynamics changed with the United
States becoming a large producer, thanks to the shale oil and gas.
Jan 14, 2015 ... This could be the beginning of a shakeout of shale oil enterprises. ... PETALING
JAYA: With the oil and gas (O&G) sector being the hardest hit ...
Mar 5, 2016 ... Rail cars and oil tankers sit on railway tracks as water vapour and ...... in far better
shape than many smaller independent oil and gas producers.
KUALA LUMPUR: A 43-year-old moneylender was killed after he was shot at some 16 times near Setapak Central here.
The father of three, who was on his way to meet a relative nearby, was driving alone near a mall when four men on two motorcycles approached his car at 3.55pm yesterday.
“They came when the victim’s car was at the traffic lights. One shooter went to the left and another to the right before both opened fire,” City CID chief Senior Asst Comm Rusdi Mohd Isa told a press conference at the Setapak police station yesterday.
SAC Rusdi said that the shooter on the right fired about three to four shots whereas the other fired twelve and the four men fled shortly after.
“Family members of the victim have confirmed his identity,” said SAC Rusdi, adding that the police would withhold his identity from the press for now.
On whether the shooting might have been gang-related, he said that there is a possibility.
“We have early information on his background of being involved in gangs,” said SAC Rusdi.
A post-mortem would be conducted, he said.
Wangsa Maju OCPD Supt Mohamad Roy Suhaimi Sarif asked members of the public who were present at the time of the shooting to come forward to relay any information they might have on the murder.
A video of what appears to be CCTV footage, which depicts the above chain of events, has been circulating on social media. - The Star/Asia News Network
Moneylender executed at traffic light
Police examine the victim's vehicle with evident bullet holes on the driver's side.
KUALA LUMPUR: A 43-year-old man was killed in a hail of bullets after two gunmen opened fire at a traffic light intersection near the KL Festival City Mall at Setapak Sentral in yet another killing involving firearms in the Klang Valley.
The victim, who was a moneylender and suffered at least 10 gunshots, was driving alone in a heavily-tinted Honda Accord when he was attacked at 3.35pm.
He had stopped at the traffic lights and was on his way to have a drink at the mall nearby when four men on two motorcycles arrived seconds later and pulled over next to his car.
Police said the pillion riders, both who were armed with pistols, got off the motorbikes before each of them went up to the driver's and the front passenger's sides and opened fire, killing the victim on the spot.
The gunmen who are believed to be hired killers fled with their accomplices soon after and investigators believe the attack is linked to a turf war between underworld gangs.
Kuala Lumpur police chief Commissioner Datuk Amar Singh Ishar Singh said based on the spent 9mm bullet casings found at the scene, the gunmen fired 18 gunshots.
He said investigators have a street close-circuit camera recording which showed the attack taking place.
Police are also checking if the case is linked to another murder case in Jinjang in January where a 41-year-old contractor died of three gunshot wounds to his face and chest during a meeting with two men near a factory.
Meanwhile, a family member of the victim who was interviewed by theSun said the man had been in hiding for several months because he knew that he was wanted by underworld members and that his life was in danger.
The family member, who declined to be identified, said he heard about the news of the shooting when the viral picture of the victim was sent to him via WhatsApp from a friend.
"At first I did not believe that the victim was my relative, he had shaved his head, probably because he's been in hiding," he said.
He said the victim had been involved in underworld activities since he was 25.
By Charles Ramendran and Aiezat Fadzell newsdesk@thesundaily.com
IGP: Setapak killers still in the country
By By Justin Zack The Star/Asia News Network
KUALA LUMPUR: The suspects in Wednesday’s fatal shooting at Setapak are still in Malaysia, according to the Inspector-General of Police.
“We believe that they still are here,” said Tan Sri Khalid Abu Bakar when met by the media after launching KPD Mart Community at Kolej Unikop here yesterday.
On whether the latest shooting pointed to a trend of using hired killers, Khalid said the police did not see it as such.
“We don’t see this as a trend of (using) hired killers but I do not deny that we have these cases.
“These are not random shootings. All these cases had a reason behind the shootings, including the latest shooting,” he said.
Police, Khalid added, would be taking more steps to “minimise” such incidents.
kanna setapak shooting victim
While no arrests have been made yet, the police assure the public that the force “will hunt them down” and that the suspects “cannot run”.
Moneylender V. Kandasamy (pic), 43, was shot dead at a traffic light near Setapak Central when four men on two motorcycles fired a total of 16 shots at him while he was still in his car.
City police chief Comm Datuk Amar Singh, when contacted yesterday, confirmed that the victim was a member of the “Satu Hati” gang.
Foreign ministers of ASEAN member states and China at the ASEAN-China Ministerial Meeting in Vientiane, Laos. — VNA/VNS
https://youtu.be/i_J3TQKTXcc
The 49th ASEAN Foreign Ministers' Meeting on Monday issued a joint communiqué, which didn't breathe a word about the South China Sea arbitration, or harbor any overt criticism against China. Although the South China Sea issue was mentioned many times in the communiqué, it only gave a general overview of principles that must be stuck to. Most foreign media view the communiqué as a triumph for China's diplomacy.
On the same day, a joint statement on how to effectively implement the Declaration on the Conduct of Parties in the South China Sea was issued.
The two statements reflect the consistent stand of ASEAN. Attempts at pressuring China through the ASEAN Foreign Ministers' Meeting have failed.
As the first foreign ministers' meeting after the so-called South China Sea arbitration award was issued, the US and Japan hoped to use the meeting in Laos to solicit ASEAN's collective support for the arbitration and impose unprecedented diplomatic pressure on China. But such expectations do not correspond with the realities in East Asia.
Hype was running high among American and Japanese media that only Cambodia was standing in the way of a joint statement that incorporates the South China Sea arbitration, and Laos as the host country didn't voice any firm opposition.
From another perspective, only the Philippines wanted a joint statement with reference to the arbitration, and Vietnam was not so persistent in its demands. Most ASEAN countries have maintained a neutral attitude. They neither want to see a division within the bloc, nor to be dragged into a conflict with China over arbitration.
Manila compromised this time, giving consent to a communiqué without mention of the arbitration. It showed flexibility compared with 2012, when the 45th ASEAN Foreign Ministers' Meeting ended with no joint statement because the Philippines' propositions over the South China Sea issue were firmly opposed.
It's in the common interests of China and ASEAN to maintain peace and stability in the South China Sea. But the US and Japan are willing to see conflicts between China and the Philippines and Vietnam escalate. If the arbitration leads to overall confrontation between ASEAN and China, it will fullfil the desires of the US and Japan.
ASEAN won't be so silly as to head toward a confrontation with China. We have carried out construction activities on islands and reefs in the South China Sea, but with our utmost efforts to avoid confrontation.
The possibility of a military solution to the South China Sea dispute has become smaller and smaller. The arbitration has brought about new risks. Instead of a clash between China and the Philippines, or China and Vietnam, there are more worries about conflicts being sparked between China and the US.
Under such conditions, it could never be ASEAN's desire to amplify the negative influences of the arbitration case. Two weeks after the arbitration result was announced, no other countries outside the region but the US, Japan and Australia have voiced support for it. The farce is coming to an end.- Global Times.
Political manipulation behind arbitral tribunal will be revealed
Chinese Foreign Minister Wang Yi said on Tuesday that the political manipulation behind the arbitral tribunal will be revealed, in response to the comments made by some foreign ministers on the South China Sea arbitration case.
Wang expounded on China's position when attending the 6th East Asia Summit Foreign Ministers' Meeting held in the Lao capital Vientiane.
Wang said China has not participated in the arbitration case and will not accept the so-called ruling, a position that China has made clear since day one and is supported by strong legal basis.
By adopting this position, China is safeguarding the sanctity and impartiality of the United Nations Convention on the Law of the Sea (UNCLOS), said the Chinese foreign minister.
First, the arbitration unilaterally initiated by the former Philippine government violated the principle of having the consent of concerned parties as the basis of arbitration and failed to meet the prerequisite of conducting full exchange of views beforehand, thus lacking the legal conditions to be initiated.
What the former Philippine government had done also abandoned bilateral agreements between China and the Philippines and violated Article 4 of the Declaration on Conducts of the Parties in the South China Sea (DOC) as well as the principle of estoppel prescribed in international law, according to Wang.
Second, he said, the subject matters of the arbitration, however packaged, in fact directly concern territorial sovereignty and maritime delimitation which are beyond the scope of the UNCLOS and the jurisdiction of the ad hoc tribunal. It is a typical act of overstepping the power and ultra vires as well as the abuse of dispute arbitration mechanism.
Wang said by citing a prominent legal expert from Europe that the arbitration case undoubtedly touches upon territorial sovereignty which is not governed by the UNCLOS. The tribunal's practice of separating territorial sovereignty dispute with the status of islands and reefs is unseen in international law, which is like "putting the cart before the horse."
Third, the ruling of the ad hoc tribunal is full of obvious mistakes, Wang said. It blatantly uses its self-invented rules to negate and deprive the lawful and legitimate territorial sovereignty, maritime rights and interests of parties concerned. In particular, it says that Taiping Dao, the largest island in the Nansha Islands with an area of 500,000 square meters, is a rock and has no relevant maritime rights.
If such a judgment can legally stand, the sea map of the world will need to be redrawn, Wang said.
Wang stressed that this ruling runs counter to the spirit of international rule of law as well as the principle and spirit of the UNCLOS.
"This arbitration is imbued with question marks and fallacies in terms of procedure, legal application, fact finding and evidence gathering," he said.
The so-called ruling is illegal in three aspects: the initiation of the arbitration is illegal, the set-up of the tribunal is illegal, and the result of the arbitration is illegal. Therefore, China's stance is fully legitimate which serves the purpose of upholding international equity and justice and regional peace and stability, Wang said.
The Chinese foreign minister said more and more countries have come to see the nature and danger of the arbitration case, and understand and acknowledge China's stance to resolve disputes through direct negotiation and consultation, calling for respect to the rights of sovereign states to independently choose dispute settlement means including respecting the declaration on optional exceptions made under Article 298 of the UNCLOS.
There are also more and more legal experts around the world questioning the legality of the arbitration case and the fairness of the ruling, Wang said, noting that the illegal nature of the so-called South China Sea arbitration case and the political manipulation hidden behind the ad hoc arbitral tribunal will be further revealed. - Global Times
The communiqué issued after the ASEAN foreign ministers' meeting in
Laos, shows the two sides want to work together for regional stability
and prosperity.
Jul 16, 2016 ... The Asean Foreign Minsters Meeting and the Post Ministerial Conference ... Laos
should be given full support in preparing for the meetings.
The official opening of TECH DOME PENANG on July 16 marks the culmination of an arduous and challenging 5-year journey to set up the state’s very first Science Discovery Centre..
TECH DOME PENANG has been modelled after the San Jose Tech Centre whereby the government provided the building and funds are raised from the corporate sector and the public. The Penang State Government has, however, taken this a step further by not only providing the use of the iconic Komtar Geodesic Dome to house the facility but also provided funding of RM5.15 million (through the Penang Development Corporation) to kick-start the project.
When the present State Government assumed office in 2008, it realizes the paramount need to not only maintain Penang’s position and status as a globally-renowned centre of technological excellence but with a mission to take it to the next level and beyond through innovation, research and development.
Chief Minister Lim Guan Eng was instrumental in providing the impetus and the push as he realized that the mission cannot be achieved merely through just the vision and support of the State Government and industry players but would require a very essential component which is a highly skilled and knowledgeable human capital. After all, human talent is the new oil of the 21st century and building human talent requires a PPP model of Public Private Partnership.
There has been increasing concerns about the declining interests in the pursuit of studies and also the continuous decline in standards of English, Mathematics and Science among students below 15 years of age as evidenced through studies conducted under the Program for International Student Assessment (PISA) conducted by the Organisation for Economic Co-operation and Development (OECD).
In their latest ranking released for 2015, Malaysia was ranked a lowly 52 out of 76 countries assessed, well below regional powerhouses like Singapore (1st), Hong Kong (2nd), South Korea (3rd), Taiwan and Japan (joint 4th). What was alarming was that even a comparatively new player like Vietnam was ranked 12th. If Malaysia cannot even surpass Vietnam, how then can we be a manufacturing powerhouse. The urgency to return Penang's position as the Centre of Excellence (COE) for Science and Technology became critical.
Tech Dome Penang will showcase more than 120 international-standard exhibits targeted at sparking the interests of the younger generation to the exciting world of Science and Technology and providing the catalyst to inspire them to pursue studies and careers in these fields. The exhibits are laid out in 6 main galleries, namely Robotics, Information Technology, Forces & Motion, Electromagnetism, Life Tech and Optics. In addition, there is a Children’s Exploration Zone for pre-schoolers and also an Observatory housing the largest telescope in Penang.
The majority of the exhibits were designed and supplied by exhibits design fabricators from New Zealand, Germany and USA. The centre will also showcase exhibits from local manufacturing corporations and other locally-based Multi-National Corporations.
Besides showcasing exhibits, Tech Dome Penang will also house classrooms and a laboratory to conduct science classes, workshops and school holiday camps for students.
Industry players may also find Tech Dome Penang a suitable venue for carrying out their team-building programmes as a number of the exhibits are suitable for such purposes. There is also additional floor space in the annex for companies to hold public exhibitions to showcase their technology and products or to even hold simultaneous walk-in interviews.
There are also CSR opportunities for companies to sponsor visits by children from rural-based schools and also the under-privileged.
Entry charges for those with MyKad are RM12 for children from 5 years to below 12 years, RM16 for children with student cards, and RM20 for adults. Children below 5 years enter free while senior citizens pay RM12.
Tech Dome will be open daily from 10am – 6pm except for Tuesdays (unless Public Holidays) when it will be closed.
We are entering the age of dealing with unknown unknowns – as Brexit and Turkey’s failed coup show
The dark future of Europe
THE Age of Uncertainty is a book and BBC series by the late Harvard economist John Kenneth Galbraith, produced in 1977, about how we have moved from the age of certainty in 19th century economic thought to a present that is full of unknowns.
I still remember asking my economics professor what he thought of Galbraith, one of the most widely read economists and social commentator of his time. His answer was that Galbraith’s version of economics was too eclectic and wide-ranging. It was not where mainstream economics – pumped up by the promise of quantitative models and mathematics – was going.
Forty years later, it is likely that Galbraith’s vision of the future was more prescient than that of Milton Friedman, the leading light of free market economics – which promised more than it could deliver. The utopia of free markets, where rational man would deliver the most efficient public good from individual greed turned out to be exactly the opposite – the greatest social inequities with grave uncertainties of the future. Galbraith said, “wealth is the relentless enemy of understanding”. Perhaps he meant that poverty and necessity was the driver of change, if not of revolution.
The economics profession was always slightly confused over the difference between risk and uncertainty, as if the former included the latter. The economist Frank Knight (they don’t make economists like that anymore) clarified the difference as follows – risk is measurable and uncertainty is not. Quantitative economists then defined risk as measurable volatility – the amount that a variable like price fluctuated around its historical average.
The bell-shaped statistical curve that forms the conventional risk model used widely in economics assumes that there is 95% probability that fluctuations of price would be two standard deviations from the average or mean.
For non-technically minded, a standard deviation is a measure of the variance or dispersion around the mean, meaning that a “normal” fluctuation would be less than two; so if the standard deviation is say 5%, we would not expect more than 10% price fluctuation 95% of the time.
Events like Brexit shock us because the event gave rise to huge uncertainties over the future. Most experts did not expect Brexit – the variance was more than the normal. It was a reversal of a British decision to join the European Union, a five or more standard deviation event – in which the decision is a 180 degree turn. The conventional risk management models, which are essentially linear models that say that going forward or sequentially, the projected risk is up or down, simply did not factor in a reversal of decision.
In other words, we have moved from an age of risk to an age of uncertainty – where we are dealing with unknown unknowns.
There are of course different categories of unknowns – known unknowns (things that we know that we do not know), calculable unknowns (which we can estimate or know something about through Big Data) and the last, we simply do not know what we may never know.
Big Data is the fashionable phrase for churning lots of data to find out where there are correlations. The cost of big computing power is coming down but you would still have to have big databases to access that information or prediction. Most individuals like you and me would simply have to use our instincts or rely on experts to make that prediction or decision. Brexit told us that many experts are simply wrong. Experts are those who can convincingly explain why they are wrong, but they may not be better in predicting the future than monkeys throwing darts.
Five factors
There are five current factors that add up to considerable uncertainty – geopolitics, climate change, technology, unconventional monetary policy and creative destruction.
First, Brexit and the Turkish coup are geo-political events that change the course of history. In its latest forecasts on the world economy, the IMF has called Brexit “the spanner in the works” that may slow growth further. But Brexit was a decision made because the British are concerned more about immigration than nickels and dimes from Brussels. This is connected to the second factor, climate change.
Global warming is the second major unknown, because we are already feeling the impact of warmer weather, unpredictable storms and droughts. Historically, dynastic collapses have been associated with major climate change, such as the droughts that caused the disappearance of the Angkor Wat and Mayan cultures. Iraq, Afghanistan, Syria, Sudan and all are failing states because they are water-stressed. If North Africa and the Middle East continue to face major water-stress and social upheaval, expect more than 1 million refugees to flood northwards to Europe where it is cooller and welfare benefits are better.
The third disruptor is technology, which brings wondrous new inventions like bio-technology, Internet and robotics, but also concerns such as loss of jobs and genetic accidents.
Fourthly, unconventional monetary policy has already breached the theoretical boundaries of negative interest rates, where no one, least of all the central bankers that push on this piece of string, fully appreciate how negative interest rates is destroying the business model of finance, from banks to asset managers.
Last but not least, the Austrian economist Schumpeter lauded innovation and entrepreneurship as the engine of capitalism, through what he called creative destruction. We all support innovation, but change always bring about losses to the status quo. Technology disrupts traditional industries, and those disappearing industries will create loss in jobs, large non-performing loans and assets that will have no value.
Change is not always a zero-sum game, where one person’s gain is another’s loss. It is good when it is a win-win game; but with lack of leadership, it can easily deteriorate into a lose-lose game. That is the scary side of unknown unknowns.
I shall elaborate on how ancient Asians coped with change in the next article.
By Tan Sri Andrew Sheng
Tan Sri Andrew Sheng writes on global issues from an Asian perspective.
Mar 29, 2016 ... While the Federal Reserve doesn't break out hedge-fund ownership, a group
seen as a proxy increased its holdings to a record $1.27 trillion in...
Apr 16, 2016 ... That belongs to the realm of politics and education, which is another story.
Andrew Sheng writes on global issues from an Asian perspective.
People from Seongju county hold the national flags of South Korea and banners to protest against the deployment of the Terminal High Altitude Area Defense (THAAD), during a rally in Seoul, capital of South Korea, on July 21, 2016. More than 2,000 people from Seongju county, where one THAAD battery will be deployed, gathered at a square in Seoul for a rally on Thursday, to protest against the deployment of THAAD. (Xinhua/Yao Qilin)
SouthKoreansprotestUSmissiledeployment. Thousands of SouthKoreans from Seongju county gathered in Seoul to protest against the government’s decision to deploy a U.S.-built THAAD missile defense unit in their home town. People from Seongju county hold the national flags of South Korea and banners...
"Stop the deployment! NO THAAD! NO THAAD! NO THAAD!" Protesters said.
"The way that the government made the decision completely on their own, without talking to residents first, is completely wrong. We are here to express the people's anger living in Seongju," Protest organiser Seok Hyeon-Cheol said.
"The missile deployment site is right in the middle of a city that has around 20,000 people. I can see it when I open the door of my house, the door of my house! And I can see it from my living room. That is why we strongly oppose the THAAD deployment. We oppose it for our children, and their children -- for the future of our county, for our health, and our right to live," Protester form Seongju County Kim An-Su said.
The protest follows a raucous standoff last week between residents and the country's prime minister, Hwang Kyo-ahn, who was pelted with eggs and plastic bottles and trapped inside a bus for several hours when he visited the county to explain his decision to deploy the missile system there.
South Korea's President Park Geun Hye has called for people to support the government's plans. She said the move was "inevitable" because of a growing threat from the DPRK. South Korea's defense ministry says the country's THAAD missile system will become operational before the end of 2017.
A senior official of Seongju county (2nd L, front) attends a rally to protest against the deployment of the Terminal High Altitude Area Defense (THAAD) in Seoul, capital of South Korea, on July 21, 2016. More than 2,000 people from Seongju county, where one THAAD battery will be deployed, gathered at a square in Seoul for a rally on Thursday, to protest against the deployment of THAAD. (Xinhua/Yao Qilin)
People from Seongju county hold the national flags of South Korea and banners to protest against the deployment of the Terminal High Altitude Area Defense (THAAD), during a rally in Seoul, capital of South Korea, on July 21, 2016.
People from Seongju county hold the national flags of South Korea and banners to protest against the deployment of the Terminal High Altitude Area Defense (THAAD), during a rally in Seoul, capital of South Korea, on July 21, 2016. (Xinhua/Yao Qilin)
People from Seongju county hold banners to protest against the deployment of the Terminal High Altitude Area Defense (THAAD), during a rally in Seoul, capital of South Korea, on July 21, 2016. More than 2,000 people from Seongju county, where one THAAD battery will be deployed, gathered at a square in Seoul for a rally on Thursday, to protest against the deployment of THAAD. (Xinhua/Yao Qilin)
HAAD poses real threat to security of China
https://youtu.be/rhlxr6BRv4E
A Terminal High Altitude Area Defense (THAAD) interceptor is launched during a successful intercept test, in this undated handout photo provided by the US Department of Defense, Missile Defense Agency. [Photo/Agencies]
What has historically been ours is ours. Even if others say it is not. That is why, annoying as it is, the Philippines-initiated South China Sea arbitration is actually not worth the limelight it is being given.
It is time for Beijing to get down to real, serious business. It has bigger issues to attend to, the most imperative of which is the anti-missile system being deployed on its doorsteps. Because, while it was coping with the worthless arbitral award from The Hague, Washington and Seoul finalized their plan for the deployment of the US' Terminal High Altitude Area Defense missile system in the Republic of Korea.
The arbitral ruling, which is null and non-executable, will have little effect on China's interests and security in the South China Sea. But not THAAD, which is a clear, present, substantive threat to China's security interests.
The installment of the US system in the ROK should be of far greater concern to Beijing, and warrants a far stronger reaction. Or should we say retaliation?
The ROK has legitimate security concerns, especially with Pyongyang constantly threatening nuclear bombing. With that in mind, Beijing has been adamant about de-nuclearization of the Korean Peninsula, and worked closely with Seoul and Washington in implementing and upgrading United Nations sanctions, and appealed tirelessly for restarting the Six-Party Talks.
But Seoul has brushed aside Beijing's security interests while pursuing those of its own.
Washington and Seoul did claim that THAAD would be focused "solely" on nuclear/missile threats from the Democratic People's Republic of Korea, and would not be directed toward any third-party nation. But THAAD far exceeds such a need. Besides the far more credible threat from Pyongyang's artillery, short-range and lower-altitude missiles is simply beyond the system's reach.
While it will deliver a limited security guarantee to the ROK, THAAD's X-band radar will substantially compromise the security interests of China and Russia, no matter how the United States shrouds its purpose.
Yet having made such a beggar-thy-neighbor choice, Seoul has in effect turned its back on China. By hosting THAAD, it has presented itself as Washington's cat's-paw in the latter's strategic containment of China. All rhetoric about friendship is meaningless lip service with the deployment of THAAD.
Beijing must review and readjust its Korean Peninsula strategies in accordance with the latest threat from the peninsula, including its ROK policies.
That does not mean forsaking its commitment to de-nuclearization, or UN resolutions. But Beijing must concentrate more on safeguarding its own interests, both immediate and long-term.
Source: China Daily Updated: 2016-07-15
China can counter THAAD deployment
https://youtu.be/QTVgIJT1DaY
The US and South Korea on Friday announced their decision to deploy the Terminal High Altitude Area Defense (THAAD) missile system on the Korean Peninsula.
Apart from monitoring missiles from North Korea, THAAD could expand South Korea's surveillance range to China and Russia and pose serious threat to the two countries.
Though South Korea claims it can reduce the surveillance range, the country cannot make the call as the system will be controlled by US forces in South Korea, and such cheap promises mean nothing in international politics.
We recommend China to take the following countermeasures.
China should cut off economic ties with companies involved with the system and ban their products from entering the Chinese market.
It could also implement sanctions on politicians who advocated the deployment, ban their entry into China as well as their family business.
In addition, the Chinese military could come up with a solution that minimizes the threat posed by the system, such as technical disturbances and targeting missiles toward the THAAD system.
Meanwhile, China should also re-evaluate the long-term impact in Northeast Asia of the sanctions on North Korea, concerning the link between the sanctions and the imbalance after the THAAD system is deployed.
China can also consider the possibility of joint actions with Russia with countermeasures.
The deployment of THAAD will surely have a long-term and significant influence. South Korea will be further tied by its alliance with the US and lose more independence in national strategy.
North Korea's nuclear issue has further complicated the situation on the Korean Peninsula, but the country's possession of nuclear weapons also results from outside factors.
The biggest problem of the peninsula's messy situation lies in US' Cold-War strategy in Northeast Asia, and its mind-set of balancing China in the region. Neither Pyongyang nor Seoul could make their own decisions independently, as the region's stability and development are highly related to China and the US.
The whole picture of the situation on the Korean Peninsula could not been seen merely from the view of Pyongyang and Seoul. China's relationship with North Korea has already been affected, and ties with South Korea are unlikely to remain untouched.
China is experiencing the pains of growing up. We have to accept the status quo of "being caught in the middle."
China should neither be too harsh on itself, nor be self-indulgent. Being true to itself, China will fear no challenges
ON July 12, the award on the South China Sea arbitration came out. This political anti-China farce in the disguise of law, manipulated by the United States, and acted by the former Philippine Government, eventually came to an awful end.
This award caused a storm of questions and negative comments in the international community. A lot of professionals are shocked, not to speak of how ridiculous it is to define Taiping Island as a “reef”.
As Professor Tom Zwart from the Netherlands said, “In the region (East Asia), the award will be widely regarded as the fruit of a poisonous tree, and it will fail, therefore, to garner the necessary support.”
Abraham Sofaer, former legal advisor to the US State Department, also pointed out that the arbitration had brought a lot of difficulties and anxiety, which were not good for any parties.
The US attempted to smear and “isolate” China with the arbitration, but unexpectedly received little response. China’s position of non-acceptance of and non-participation in the arbitration has won more and more support.
Even the Philippine people realised that the arbitration is a total conspiracy of the US for its own agenda. This proves again the age old saying, “a just cause enjoys abundant support while an unjust cause finds little support”.
Dao, a combined concept of fairness, justice, rule, trend and direction, and derived from ancient Chinese philosophy, inhabits people’s hearts. The Dao of the present world lies in peace, development and winwin cooperation, and the Dao of solving international disputes lies in fair, lawful and peaceful solutions. On the premise of peaceful settlement, international law provides the right of every state to choose the means of dispute settlement, which should be based on consent, used in good faith and in the spirit of cooperation.
China persists unswervingly in pursuing an independent foreign policy of peace; advocates the awareness about human common destiny; and opposes the Cold War mindset and zero-sum games, and the bullying of the weak by the strong.
China will never seek hegemony or engage in expansion. With regard to territorial issues and maritime delimitation disputes, China adheres to settlement through amicable consultation and negotiation by directly concerned countries, and does not accept any means of third-party dispute settlement or any solution imposed on it.
The violation of Dao by the US lies in its “imperialist mindset” and pursuit of hegemony. After World War II, the US global strategy has always been seeking the “leadership of the world”.
In 2009, the Obama administration launched the Asia Pacific Rebalance Strategy, and took the South China Sea issue as the pivot to maintain its regional hegemony and achieve strategic containment of China.
It is obvious that during the whole process of the arbitration unilaterally initiated and pushed by the Aquino III administration, the US was deeply involved in every step. Although alleging “neutrality and non-involvement”, the US manipulated behind the scene, and tried to forge a “coalition” to hype up the issue, resulting in rise of tension in the South China Sea.
The US always regards itself as “judge of the world”, but history and reality have repeatedly shown that the US has always adopted double standards. In the eyes of the US, international law is only applicable to other countries rather than itself. It only applies the law when it is consistent with its own interest and resolutely abandons it otherwise.
For instance, while advocating “the rule of law on the sea”, it has not acceded to the United Nations Convention on the Law of the Sea (UNCLOS).
While insisting that China must accept the arbitration award, it chooses to forget the Nicaragua case in which it not only withdrew from the proceedings and refused to implement the ruling, but also revoked the declaration of accepting the compulsory jurisdiction by the International Court of Justice. While opposing militarisation in the South China Sea, it has been provocatively dispatching military aircraft and warships into the area, and even deploying aircraft carrier fleets to this region.
More and more countries have found out who is the biggest “trouble-maker” in the world. It is the US intervention that makes the world worse. Afghanistan, Iraq and Libya have all fallen into its trap and are left with mess in the region. As the new Philippine President Rodrigo Duterte frankly said, the root of the bloodshed in Iraq and other Middle Eastern countries lies in the intervention of the US.
Furthermore, just prior to the arbitration award, the UK Iraq Inquiry published its report, stating that the decision of the US and UK to start the Iraq War was based on “flawed” intelligence. Under such circumstance, who will follow such a “leader of the world”?
The violation of Dao by the former government of the Philippines lies in breaching previous commitment and causing a lot of trouble in the shelter of a superpower.
The Philippines and China had been friendly neighbours over a long history. However, in recent years, the bilateral ties were damaged by the Philippine policy of confrontation, especially the unilateral arbitration claim.
The government of Aquino III willingly acted as the pawn of the US Rebalance Strategy and took the road to confront China. It deliberately provoked the Huangyan Island (Scarborough Shoal) incident, unilaterally initiated and pushed the arbitration, and tried to hijack other Asean countries to smear China and benefit from the unlawful arbitration award. Its intention is vicious, and its action illegal.
First, although fully aware that territorial issues are not subject to UNCLOS and that maritime delimitation disputes have been excluded from the UNCLOS compulsory dispute settlement procedures by China, the Philippines deliberately packaged the disputes as mere issues concerning the interpretation or application of UNCLOS.
Second, the arbitration infringes upon China’s right to choose the procedures and means for dispute settlement. In 2006, pursuant to Article 298 of UNCLOS, China declared to exclude from the compulsory procedures disputes concerning maritime delimitation, historic bays or titles, military and law enforcement activities. There are over 30 countries that have made similar declaration.
Third, the unilateral arbitration broke the bilateral agreements reached between China and the Philippines over the years to resolve relevant disputes in the South China Sea through negotiation.
Fourth, the arbitration violated the commitment jointly made by China and Asean countries, including the Philippines, in the Declaration on the Conduct of Parties in the South China Sea (DOC) to resolve the relevant disputes through negotiations by states directly concerned.
The Aquino III administration thought itself clever, but how can it deceive the whole world? As Cambodian Prime Minister Hun Sen said, the arbitration is “the worst political collusion in the framework of international politics”, and “would bring negative impacts to Asean and peace in the region”.
Rod P. Kapunan, Philippine columnist of The Standard newspaper, pointed out that “after six years of hypocrisy and deceit, this shameless stooge (here refers to Aquino III) has brought us right into the doorstep of possible armed conflict with China all because it has chosen to pursue the US-designed policy of inciting hostility with our neighbour”.
Regarding the South China Sea situation, he wrote that “the lives of the Filipinos would be sacrificed to enforce a decision that if examined closely is a US proxy war which the Philippines would serve as cannon fodder in securing its interest in this part of the globe”.
The escalation in the South China Sea will bring enormous risks to the regional and even global security. The Philippines should recognise its mistakes and return to bilateral negotiation with China.
The violation of Dao by the arbitral tribunal lies in political manipulation, unfairness and unlawfulness. The arbitration is completely a political farce under legal pretext. The establishment of this tribunal lacks legitimacy.
The arbitrators it chose lack fairness. The tribunal lacks jurisdiction, and it evidently expanded, exceeded and abused its power.
The so-called “award” is even ridiculous. Experts pointed out that all the fees of the tribunal, including the huge reimbursement to the arbitrators, are borne by the Philippines alone. This has raised a lot of concerns and problems. People are asking if the Philippines “hired the judges”.
The composition of the tribunal is a result of political manipulation. Japan and Yanai Shunji, then president of the International Tribunal for the Law of the Sea, acted as the broker.
The composition of the tribunal is quite weird: four of the five arbitrators are from Europe, the fifth one is a permanent resident in Europe, and all of them lack basic understanding of Asian culture and the South China Sea issue.
One fact could better show the play under the table. When the tribunal was established in April 2013, the first president appointed by Yanai was Chris Pinto, a senior Sri Lankan diplomat. Since Pinto’s wife is Philippine, he especially asked advice from both parties to the dispute and was recognised by the Philippines.
However, when Pinto later hinted that the tribunal might not have jurisdiction over the case, it raised deep concern of the US, Japan and the Philippines. The latter asked Yanai to find somebody to replace Pinto for a so-called “just cause”. In May 2013, Pinto was forced to resign.
The tribunal abused power for its own interest. Many experts of international law believe that the tribunal has no jurisdiction over territorial sovereignty and maritime delimitation. Just as Sofaer said, this arbitration is related to sovereignty disputes. It shouldn’t have been started, especially when a state party has declared in writing that it does not accept compulsory procedures over such disputes as maritime delimitation according to Article 298 of UNCLOS. The tribunal’s ruling “will broadly undermine the potential utility of international adjudication”.
The tribunal disregarded the fact that the essence of the subject matter of the arbitration is the issue of territorial sovereignty and maritime delimitation.
It erroneously interprets the common choice of means of dispute settlement already made jointly by China and the Philippines, erroneously construes the legal effect of the relevant commitment in the DOC, deliberately circumvents the optional exceptions declaration made by China, selectively takes relevant islands and reefs out of the macro-geographical framework of the South China Sea Islands, and subjectively and speculatively interprets and applies UNCLOS.
The conduct of the tribunal and its award seriously contravene the general practice of international arbitration, completely deviate from the object and purpose of UNCLOS to promote peaceful settlement of disputes, substantially impair the integrity and authority of UNCLOS, gravely infringe upon China’s legitimate rights as a sovereign state and state party to UNCLOS, and are unjust and unlawful. It has set an extremely dangerous precedent in the history of international law.
The professional ethics of the arbitrators are widely criticised. All the Western arbitrators and expert witnesses played a shameful role as though they were chameleons.
They reversed their previous position as stated in published papers and even backtracked from their long-held views to make the case for the Philippines.
Arbitrator Alfred Soons had published his opinion that the status of islands was closely associated with demarcation and sovereignty issues.
However, when the tribunal ruled on jurisdiction and admissibility, he said the tribunal had the right to decide on the Philippines’ submissions concerning legal status and maritime entitlement of certain islands including Huangyan Island (Scarborough Shoal) and Meiji Reef (Mischief Reef ), which was entirely contradictory to his previous viewpoint.
Expert witness Clive Schofield also changed his views at the proceedings. On the same subject, using the same materials, he drew totally different conclusions in and out of the tribunal.
People must be wondering: how could they discard professional ethics to serve the interests of those who pay them?
Facts speak louder than words. The unilateral arbitration initiated by the Aquino III administration violates international law.
The tribunal has no jurisdiction over this case. The award of the tribunal is null and void. China’s position is justified and lawful.
It is time to put an end to the arbitration on the South China Sea. Consultation is the right way to settle disputes between states.
China will continue to work together with the Asean countries to implement the DOC comprehensively and effectively, promote the consultation on a code of conduct in the South China Sea, manage and control relevant disputes properly and explore maritime cooperation, in order to build the South China Sea into a sea of peace, friendship and cooperation.
by Huang Huikang The Star Malaysia
The writer is a member of the International Law Commission of the United Nations and the Chinese Ambassador to Malaysia. The views expressed here are the writer’s own.
The Xinhua news agency has accused the US government, the Philippines, the arbitration panel and Japan's prime minister Shinzo Abe of collusion in the recently concluded South China Sea arbitration case.
Four of the five arbitrators of the temporary tribunal were appointed by Shunji Yanai, the former president of the International Tribunal for the Law of the Sea. The former Japanese diplomat's political stance and speeches went against the principles of the independence of the international judiciary. Shunji Yanai served the Japanese Foreign Ministry for 40 years from 1961. He has been involved in controversial issues, including Japan's 2015 security bill, and the Diaoyu Islands dispute with China. He has a close relationship with Japanese prime minister, Shinzo Abe.
The fairness of the tribunal's operations was called into question by the personal wishes of Shunji Yanai. The Xinhua news agency commented that it was not surprising that Yanai generally chose arbitrators who were biased against China.
In addition, an American legal team provided help in drafting thousands of pages of legal documents, representing the Philippines presenting arguments to the tribunal. American lawyer Bernard Oxman, who represented the Philippines, had worked with most of the arbitrators and Yanai. He attended the third United Nations Conference on the Law of the Sea as a representative for United States government. Based on the principles of independence of the international judiciary, the impartiality of a judge can be questioned if there are any links to a party involved in a case. Despite that, Oxman was still involved.
There is no doubt the close relationship between Oxman and US government, the Philippines government, arbitrators, Yanai and Abe. These links form a complex network of special political interests. The Xinhua news agency says they took advantage of legal platform and after three years they issued their pre-arranged ruling and finished their political farce.
Swiber Holdings
Feeling the heat: OCBC’s total oil and gas exposure was US9.32bil, nearly half of which to the offshore oil services segment. – Reuters
Congenial approach: China believes in settling territorial issues and maritime delimitation disputes through amicable consultation and negotiation by directly concerned countries. In March 2005, national oil companies from China, the Philippines and Vietnam signed the Tripartite Agreement for Joint Marine Seismic Undertaking in the Agreement Area in the South China Sea.
