Briefs

Japanese Prime Minister Shinzo Abe and South Korean Prime Minister Lee Nak-yon have agreed that they must work to ease the feud between their countries that has spilled over into trade and security.

Both sides issued statements expressing a desire to repair ties, after the two leaders met for about 20 minutes on Oct 24, their highest-level meeting in more than a year.

Lee delivered a letter to Abe from South Korean President Moon Jae-in that, according to the Yonhap News Agency, described Japan as a valuable partner in securing a lasting peace with North Korea and urged efforts to resolve the disputes.

“It’s important that relations must not be left in their current state,” Abe told Lee, describing them as “very severe”, according to a statement from Japan’s Ministry of Foreign Affairs.

Lee said in a tweet that he had urged Abe to continue communications, adding, “we will make an effort to solve issues that we have different positions on through wisdom”. He added that the “bilateral talks are now picking up some speed,” Yonhap News reported.

The meeting is the most positive signal since South Korean courts issued a series of rulings last year backing the claims of Koreans forced to work for Japanese companies during the country’s 1910-1945 occupation of the Korean Peninsula. — Bloomberg LP

CFOs fear global recession: JPMorgan survey

Nearly a third of chief financial officers and group treasurers have flagged a potential global recession as the “top risk” to their businesses in the next six to 12 months, according to a survey by JPMorgan.

Twenty-seven per cent of respondents expressed caution over the impact of global trade tariffs, while 24% were worried about a market slowdown in the horizon.

Concerns over cybersecurity and the outcome of Brexit rounded out the top-five risk concerns.

The survey of more than 150 respondents from 130 global corporations was conducted at the 2019 JPMorgan Asia Pacific CFO and Treasurers Forum in Shanghai earlier this month.

“Clearly, the concerns over the impact of headwinds in the global macro environment are front and centre in the minds of the top CFOs and treasurers of global corporations,” says Oliver Brinkmann, ­JPMorgan’s head of corporate banking for Asia-Pacific. “We still see growth opportunities, especially in emerging Asia, but the geopolitical events are somewhat clouding sentiment.” — By Jeffrey Tan

Malaysia may settle for a fraction of US$7.5 bil demanded from Goldman Sachs

Again and again, Malaysia has publicly demanded that Goldman Sachs pay an eye-popping US$7.5 billion ($10.2 billion) for its role in the 1Malaysia Development Bhd scandal. But privately, Malaysian negotiators are considering settling for a fraction of that.

Representatives for Malaysia have discussed figures of around US$2 billion to US$3 billion in talks with the Wall Street bank, according to people with knowledge of the matter. Though a final deal may diverge from that range, it shows what negotiators for the country may be willing to accept. Simultaneously, Malaysian prosecutors are trying to turn up the pressure by pushing for Goldman’s criminal case to be heard at the country’s High Court.

Malaysia’s Prime Minister Dr Mahathir Mohamad is keen to reach an accord before year-end to show progress on his pledge to recoup money plundered from the scandal-ridden state investment fund. He has dispatched Daim Zainuddin, a confidant outside his cabinet, to serve as a top dealmaker, the people say, asking not to be named because talks are confidential.

A sizeable settlement would help cement the country’s fiscal footing, which Mahathir has cited as a reason he has delayed handing over power to his former protégé, Anwar Ibrahim. — Bloomberg LP

Urban Commons reportedly ‘not in default’ on The Queen Mary lease

The manager of Eagle Hospitality Trust says Urban Commons, the sponsor of EHT, has confirmed that it is “not in default on The Queen Mary ground lease” and that the decommissioned ocean liner “remains safe and structurally sound”.

Now converted into a 347-room upscale hotel in California, the US, The Queen Mary is a key asset in the 18-property portfolio of EHT.

On Oct 23, The Edge Singapore reported that the Urban Commons CEO had received a letter from John Keisler, the economic development director of the city of Long Beach, where the ship is docked. The letter, dated Oct 1, is said to have alleged that Urban Commons had failed to meet its obligations under a 2016 lease agreement to repair and upkeep the ship. It warned that Urban Commons might be found in default if the company failed to respond within 30 days.

In a bourse filing on Oct 24, the REIT manager said it immediately communicated with Urban Commons to seek clarifications of the letter when it became aware of it. It said Urban Commons had replied that it was preparing a response, which would be “imminently released to the city, addressing items referenced in the letter”. — By Stanislaus Jude Chan & Uma Devi

Sustainable fashion not fashionable yet: DBS survey

While consumers are conscious of the impact that their rapid changes in fashion tastes has on the environment, the majority here in Singapore are not doing their part to limit the damage, according to a survey by DBS.

The survey comes as the fast fashion industry has been blamed for creating copious mountains of discarded clothes, thereby contributing to the sap on the world’s resources and adding to the strain on the environment and fuelling climate change.

Seven in 10 respondents said they did not ensure that the clothes they bought were sustainably made and sourced, even when 60% of respondents said they were aware that fashion was one of the largest contributors to pollution globally.

When asked to rank the main barriers to changing their consumption behaviour, 35% of the respondents cited cost, while a quarter of them admitted they were apathetic.

Karen Ngui, managing director and head of group strategic marketing and communications at DBS, thinks that even as the world grapples with climate change, small changes in behaviour can make a collective difference.

“All of us have a responsibility to do our part, be it in big ways or everyday ways. Fashion provides utility, colour and expression to our lives, and by making conscious decisions in our fashion buys, we can improve societal and environmental outcomes,” says Ngui.