SINGAPORE (Dec 3): “This is a geriatric expansion. It wouldn’t take much to go wrong to put us into a recession.” — David Kelly, chief global strategist at JPMorgan Asset Management, referring to the US economy that is still growing but slowing.
Go-Jek launches beta app in Singapore
A month after announcing a driver recruitment exercise, Indonesian ride-hailing platform Go-Jek has launched a beta mobile application for its services in Singapore. Only “thousands” of users will have access to the app, and rides are to be available in limited areas first in order for the firm to “better manage supply and demand”. These areas include the Central Business District, Sentosa, Jurong East, Changi and Punggol, and coverage will be expanded in the coming weeks.
Go-Jek’s services will be competing against those of Grab, currently Southeast Asia’s largest ride-hailing firm after Uber’s exit, as well as taxi services provided by ComfortDelGro, HDT, Premier Taxis, SMRT and Trans-cab. “It’s time to rebalance the equilibrium and add a lot more consumer- and driver-friendly policies and introduce some competition,” says Go-Jek CEO Nadiem Makarim.
In May, Go-Jek said it was investing US$500 million ($685 million) in an international expansion strategy that would cover Singapore, as well as Thailand, Vietnam and the Philippines. The company had raised some US$1.5 billion in its most recent funding round, from investors that include Temasek Holdings, Google and Tencent. Go-Jek has also partnered with DBS Group Holdings to offer payment services in the region.
Deutsche Bank in Panama Papers probe
Deutsche Bank’s headquarters in Frankfurt were raided by German prosecutors on Nov 29 in connection with a money laundering probe. This raid was part of an investigation triggered by the Panama Papers leak in 2016, which saw voluminous amounts of information disclosed from a Panamian law firm, Mossack Fonseca.
Two bank employees were the suspects in the case, according to a statement from the prosecutors. Other Deutsche Bank premises in the city were also searched as part of the operation. Prosecutors are looking into whether Deutsche Bank staff helped clients set up offshore accounts, and whether the bank failed to report suspicions that its accounts have been used to launder money.
Genetic editing uproar
The international scientific community has denounced the work of a Chinese scientist claiming to have genetically edited a pair of twins born in November. Scientists have reached a broad consensus that genetically modifying babies is deeply unethical. It is illegal in many countries, though not in China, to deliberately alter the genes of an embryo.
He Jiankui, based in Shenzhen and a physicist by training, says he used Crispr, a gene-editing technology, to alter a gene in the embryos before they were implanted in the mother. The goal was to make the babies resistant to infection with HIV, the virus responsible for AIDS, which the babies’ father has. The scientist has not provided any data or evidence of what he has done. He also says there is another woman enrolled in his trial who is pregnant with a baby with modified genes.
The university and hospital where He was attached has disavowed him and his work, and the Chinese government has halted his work, said vice-minister for science and technology Xu Nanping in an interview with state broadcaster CCTV.
Khazanah pares stake in IHH
Malaysian sovereign wealth fund Khazanah Nasional is divesting a part of its stake in healthcare group IHH. It will sell 1.4 billion shares for RM6 a share to Japanese trading company Mitsui & Co. After the RM8.42 billion ($2.76 billion) deal is completed, Khazanah’s shareholding in IHH will be down to 26.05%. This is based on IHH’s enlarged share capital after it has completed the acquisition of an additional 30% equity interest in Turkish hospital group Acibadem Saglik Yatirimlari Holding.
Khazanah says the divestment of its share in IHH is part of the restructuring of its portfolio. Proceeds will go towards new investments and capital requirements. Khazanah’s portfolio also includes a 60% stake in M+S, the joint venture with Temasek Holdings that developed the Duo and Marina One mixed-use projects. The two state investment funds are also JV partners in Pulau Indah Ventures, which is developing integrated wellness projects in Iskandar Malaysia, Johor.
Healthcare systems face biggest risk from climate change
Rising temperatures and extreme weather could see healthcare systems overwhelmed by more patients with heat-related illnesses, according to a report by medical journal The Lancet. This compounds the effect that climate change is already having on human health, from mental wellbeing to the capacity to work outdoors and negatively impacting nutrition.
A survey done by Lancet across 478 cities shows that more than half of city officials expect climate change to seriously compromise public health infrastructure. It also notes that current levels of funding to adapt to climate change spent directly on public health infrastructure is not enough.
HNA Group to sell recently acquired CWT
Singapore-based logistics company CWT, which was acquired by China’s HNA Group for US$1 billion, is being put up for sale. CWT is one of more than 90 assets with a list price of some US$40 billion that HNA is offering to unload in a bid to slash its debt load. Apart from CWT, HNA plans to sell other assets, such as CIT Aircraft Leasing for US$10 billion and a US$3.1 billion artificial island project in Hainan. HNA completed the acquisition of CWT only in December 2017. The purchase was part of China’s Belt and Road Initiative, in which Chinese companies are snapping up logistics and infrastructure assets across the region.
Kimly under MAS, CAD probe
Coffeeshop chain operator Kimly’s executive chairman Lim Hee Liat, executive director Chia Cher Khiang and former non-executive director Alain Ong Eng Sing are being investigated by the Monetary Authority of Singapore and the Commercial Affairs Department for suspected offences under the Securities and Future Act. According to Kimly, in an SGX announcement on Nov 29, the three have been interviewed by authorities and their passports, impounded. In a separate announcement, Kimly says it will cancel the acquisition of drinks company Asian Story Corp. The acquisition, which was paid using $16 million in cash, was announced and completed on July 2.
