Briefs

Chinese trade officials will travel to Washington, DC in early October for talks with their US counterparts, potentially restarting stalled negotiations after weeks of uncertainty and escalation in trade tensions. Vice-Premier Liu He agreed to the visit in a telephone call with Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer, according to a Sept 5 statement from China’s Ministry of Commerce.

Lower-level officials will have “serious” discussions first to prepare for the talks, which had originally been expected to take place this month. The prospect of talks is a sign of progress in the more-than-yearlong trade conflict, though clear differences between the two sides on the substantive issues remain. Both China and the US raised tariffs on Sept 1; the US plans to add more tariffs on Oct 1, and then both nations will increase them again on Dec 15 unless there is a breakthrough in negotiations. “No one is holding their breath,” says Chua Hak Bin, an economist at Maybank Kim Eng Research. “Investors are slowly coming to terms that a trade deal is increasingly remote, with both sides talking tough and preparing for a long battle.” — Bloomberg LP

Elections in Singapore on the way

The Singapore government has formed the Electoral Boundaries Review Committee, signalling that the next general election may be just months away. The committee, headed by Prime Minister Lee Hsien Loong’s secretary, Tan Kee Yong, has been tasked with reducing the average size of group representation constituencies. The committee is to also increase the number of single-member constituencies, from 13 currently. “The committee is now in the midst of its deliberations and will make its recommendations to the prime minister when it has completed its review,” the Prime Minister Office’s statement reads. Judging from previous dates when the committee was formed and the actual date of polls, the coming general election might take place as early as December or next May. The next general election must be held by April 2021.

HK’s Lam says scrapping bill a ‘first step’ to easing unrest

Hong Kong Chief Executive Carrie Lam says her decision to scrap the extradition legislation was only the “first step” to addressing the city’s unrest, after protesters said her concessions fell short of their demands. Lam told a news conference on Sept 5 that her decision to formally withdraw the controversial bill allowing extraditions to China and other moves would only be the “first step to breaking the deadlock in society”.

The proposed legislation sparked almost three months of historic protests, and its withdrawal has been a key demand of demonstrators over weeks of increasingly violent clashes with police. Lam promised to examine underlying causes for the unrest that extend beyond the bill. “It’s obvious to many of us the discontentment in society extends far beyond the bill,” Lam said, citing political, economic and social issues, including housing and land supply. “We can discuss all these deep-seated issues in our dialogue platform to be established.”

Pro-democracy activists and lawmakers have dismissed Lam’s concessions as “too little, too late” and still want their remaining major demands met, including an independent inquiry into the use of force by the police and a push to nominate and elect their own leaders, a proposal Beijing has ruled out.

Protesters’ next moves will telegraph whether Lam and her backers on the mainland bet correctly that conceding on the bill’s withdrawal will calm the movement after three months of outcry over Beijing’s increasing grip over the city. Students and other groups staged small peaceful protests on the morning of Sept 5 to express disappointment with Lam’s speech. — Bloomberg LP

UK Parliament blocks Johnson’s manoeuvres

UK Prime Minister Boris Johnson has suffered one humbling defeat after another within two hours on Sept 4. Members of Parliament first voted for legislation to stop the UK from leaving the European Union without a deal, before blocking Johnson’s attempt to call an election meant to seize back the initiative on Brexit.

Rebel MPs from the ruling Conservative Party joined forces with the opposition to approve a Brexit delay bill aimed at blocking a no-deal Brexit on Oct 31. Johnson has decried the bill as one that represented “surrender” since it would allow the EU to set the terms for any delay to Brexit, and hold the country in a Brexit limbo “for many years to come”. Johnson also tabled a measure to hold a general election on Oct 15. He says the people can then decide whether he or Labour Party leader Jeremy Corbyn would conclude Brexit negotiations.

Public transport fares may rise as much as 7%

Public transport fares could see a maximum hike of 7% later this year after a fare review exercise, the Public Transport Council said on Sept 3. The annual review is based on a formula that takes into account energy prices, inflation and manpower costs. The formula, tweaked last year, also takes into account commuter demand as well as enhancements in public transport capacity.

Last year, there was a fee increase of 4.3% after three years of fare reductions. “The largest contributing factor for the fare formula output quantum is the double-digit increase in energy prices, having rebounded 26.2% in 2017 and 32.3% in 2018,” said PTC. Other key cost items, such as wages, increased as well. The operators may submit their fare applications to PTC by Sept 23.

GRI opens Asean hub to help improve ESG reporting

Global Reporting Initiative, an international body that helps companies organise and communicate their environmental, social and governance (ESG) data to the wider stakeholder ecosystem, has opened its Asean hub in Singapore.

Netherlands-based GRI is gaining more attention as sustainability issues move up the priority list of companies and organisations. GRI says more than 90% of the world’s largest companies report ESG information, of which 75% use the GRI Standards.

The Singapore Exchange is already making locally listed companies do sustainability reporting as part of a wider and stronger focus in this area.

The GRI Asean hub was launched on Sept 3 with the backing of 12 companies that have contributed funding for the first three years: CapitaLand, City Developments, DBS Bank, EY, Keppel Corp, KPMG, PwC, Sembcorp Industries, Singapore Exchange, StarHub, Stewardship Asia and Tata Consultancy Services.

Tim Mohin, CEO of GRI, hopes the Asean hub will help companies in the region unlock the benefits of sustainability reporting. “GRI’s experience around the world shows disclosure helps businesses improve performance, build relationships with global buyers and increase their reputation as responsible global citizens,” he says.

Mohin adds that, with Asean’s economy growing strongly and set to continue before achieveing developed nation status, it was a “historic opportunity” to “embed” the values of corporate responsibility early on, and also to nudge the allocation of capital to sustainable ways of working. “The only way to do this is with high-quality ESG disclosure based on a global common language — the GRI Standards.”

GRI’s Asean hub is led by Michele Lemmens, head of business sustainability for Asia-Pacific at Tata Consultancy Services.