Tesla, posting a crucial profit, unveils Austin factory plan page 11

Monday, July 27, 2020

26,469.89 9,375.40 38,128.90 1,902.02 −182.44 pts +7.11 pts −11.57 pts Gold +0.77% Six reasons to love the trendy Dow QE sensex nova 7 5G page 10 Price percentage Price percentage 22.85 Brent 43.34 +0.07% WTI 41.34 +0.66% Silver -0.60% GCC corporates QC recruitment platform expected to focus on preservation draws over 2,300 firms than growth: S&P Qatar Chamber’s online recruitment platform only official job portal in Qatar: Sharqi Tribune News Network Tribune News Network Doha Doha GCC scenario S&P Global Ratings has fore- ● A single digit real GDP More than 2,300 companies cast that the key focus for contraction for most rated in Qatar have registered with rated GCC corporates will be GCC states expected in the Qatar Chamber’s (QC) on preservation rather than online recruitment platform growth as key priorities for 2020 and operating that seeks to help employ- businesses include cost opti- conditions to remain weak ees who have lost jobs and misation, managing liquidity, over the next few quarters private-sector firms looking and cash flowpreservation, ● GCC national oil for skilled hands to find each with new investments expect- other. ed to take a back seat for most companies should benefit The platform, which can sectors. from their cost advantage be accessed through Qatar The agency expects a mid- compared with global peers Chamber’s website, is the to-high single digit real GDP in the low oil price only official online platform contraction for most rated environment that facilitates labour recruit- GCC sovereigns in 2020 and ment in Qatar, its Director- operating conditions to re- ment of capital expenditures General Saleh Hamad Al main weak over the next few by a number of companies Sharqi said. quarters. particularly those in the real Other portals that serve In its recent report “Twin estate sector. similar purposes do it unof- Shocks of Low Oil and COV- However, the deterioration ficially, he added while ad- ID-19 Mean Double Trou- appears to be relatively limited dressing a webinar held to ble for GCC Corporates”, the for telecom operators, utilities, review the progress of the QC ratings firm expects a more and some government-related platform. cautious spending approach entities (GRE). The region’s The webinar was hosted from oil and gas players, with leading national oil companies by a joint committee of Qatar Officials of Qatar Chamber and the Ministry of Administrative Development, Labour and Social Affairs take part in a webinar. capital expenditure cuts and have also announced defer- Chamber and the Ministry of downward revisions from ments to investments. Administrative Development, The webinar was attended 2020 guidance already an- Regional banks, however, Labour and Social Affairs Boosting employment by several members of the nounced so far. still remain accommodative to (MADLSA). Companies in Qatar should make committee, including As- However, GCC national good credits, providing fund- “The ministry and the use of the platform as its services sistant Director-General for oil companies should ben- ing at better terms than the chamber would soon sign an Government Relations and efit from their cost advantage capital markets. agreement to regulate the are free, and it is supported by Committee Affairs Ali Bush- compared with global peers in “Therefore, we expect rela- work of the platform, which Qatar Chamber and the MADLSA arbak Al Mansuri, Director the low oil price environment. tively limited debt capital mar- has been officially approved,” ● It is not a temporary facility and would of Legal Affairs Abdel Aziz Al Overall, the report said, ket activity for most rated GCC Sharqi said. continue to help companies and Kawari, Director of Member the region has witnessed a de- corporates in 2020, outside of He called on companies in employees even after the effects of the Affairs Anoud Al Muhannadi, cline in new investments and opportunistic refinancing,” it Qatar to make use of the plat- Legal Research’s Hamad Ali the reduction and postpone- said. form as its services are free, pandemic have subsided Muaiqal Al-Mari, Director of and it is supported by the ● Platform now allows employees looking Employment Administration chamber and the MADLSA. for jobs to log into the platform and upload at MADLSA Fawaz Mohamed Although the platform their data and resumes Al Rayyes, Director of Labour was launched as the COV- Relations Department Abdul- QIC reports premium ID-19 outbreak started mani- Qatar Chamber Director-General Saleh Hamad Al Sharqi lah Mubarak Al-Dosari, Di- festing its impact on jobs and rector of Labour Inspection businesses in Qatar, Sharqi details of the employees they and supervised by MADLSA, Obaidli said the platform Department Fahad Zafer Al growth of 13% in H1 said it was not a temporary let go. he said, noting that the plat- was an important initiative Dosari and Committee report- Tribune News Network compared to QR6.4 billion in facility and would continue to Sharqi said the platform form would be promoted in by the chamber and would er Mohamed Juma Al Kawari. Doha the same period of last year. help companies and employ- now allows employees look- many languages to extend its go a long way in offsetting The attendees agreed The growth was predomi- ees even after the effects of ing for jobs to log into the reach among labourers. the damages triggered by the on the committee’s working Qatar Insurance Company nately driven by the rate hard- the pandemic have subsided. platform and upload their Besides Sharqi, MADLSA pandemic in the jobs market. mechanism and to hold its (QIC) on Sunday announced ening in select international When the platform was data and resumes. Assistant Undersecretary He also noted that the meetings on a monthly basis, that it registered a double-digit insurance markets and contin- initially launched, the Qatar The procedures for con- for Labour Affairs Mohamed platform would help laid-off as well as discussing all issues year-on-year growth in pre- ued expansion of QIC’s domes- Chamber had allowed only tracting with labourers are Hassan Al Obaidli also ad- workers move to new compa- related to the recruitment mium of 13 percent to QR7.2 tic personal lines business with the companies to enter the governed by the laws of Qatar dressed the webinar. nies looking for new workers. platform. billion for firsthalf of 2020 stable underwriting profits. Jet fuel demand QIB adds new features to its mobile app to fully recover by Tribune News Network stantly update their details daily transactions by simply Doha by simply uploading their logging into our all-inclusive renewed QID or Passport mobile app from anywhere, 2023, says BofA As part of QIB’s ongoing ef- and continue to enjoy the without the need to visit a forts to provide innovative full suite of QIB services of- branch.” Agencies In terms of supply, while digital solutions to empower fered by the app, including He said, “Under the cur- New York refiners have sharply reduced its customers, Qatar Islamic making transfers and pay- rent circumstances, we urge their jet output, stocks of mid- Bank (QIB) recently re- ments or opening additional our customers to continue us- Demand for jet fuel may dle distillates and jet remain leased the latest version of its accounts. ing our digital channels for all take years to recover from the “very high” in most locations, award-winning QIB Mobile The latest update, in re- their needs while reminding Covid-19 pandemic and will lag BofA said. App with the introduction sponse to the prioritised cus- them that we are available to behind an uptick in oil prices “The only way out of this of key new features, as well tomer needs, enables users to support them with any bank- as air travel demand remains for jet seems a cure or a vac- as a host of performance en- retrieve their username and ing request. Customers can weak, especially in the absence cine for Covid19,” bank ana- hancements. unblock their access to the call our call centre or their of a vaccine, according to Bank lysts said. “Yet creating 6 bil- Developed with its cus- app. To retrieve the app cre- respective relationship man- of America (BofA). lion vaccines for 7.8bn people tomers’ daily banking re- dentials, customers need to agers for any banking inquiry A measured rebound is in the world could take several quirements in mind, the lat- enter their debit card number or support on how to use our expected in the third quarter years. And even if most of the est update further empowers and the card’s PIN as well as digital banking services.” of 2021 before a full recovery jet fuel demand recovery will QIB customers by allowing the one-time password (OTP) QIB’s core strategy keeps in demand for the aviation come from OECD and China them to fulfil the majority of which is sent to the custom- customers’ best interests in fuel by 2023, the BofA Global going forward, it could still take their banking needs through er’s registered mobile number mind, exemplified by the rig- Research said in a July 23 12 to 18 months to vaccinate 2 the mobile app without the with QIB. orous updates the bank’s digi- commodities report. The Or- billion people.” need to visit a branch. As part of QIB’s continued the year, QIB partnered with dates, QIB Personal Banking tal platforms receive. ganisation for Economic Co- Air traffic around the world Following the upgrade, efforts to reward the custom- Western Union to offer the Group General Manager D The QIB mobile app has operation and Development collapsed following the Cov- customers can now update ers through the ABSHER Re- fastest and easiest way to send Anand said, “Customers will become a single one-stop- (OECD) countries and China id-19 outbreak as countries their QID and passport infor- wards Program, customers money anywhere in the world always remain at the heart of shop for customers, providing will drive most of that uptick. shut down their borders and mation through the app, re- can now redeem their earned through the QIB Mobile App. our business. As we contin- multi-services and accommo- The recovery in jet fuel airlines grounded their air- trieve their username and un- points to settle their Vodafone Customers can now request to ue to progress by deploying dating all financial requests. demand will be L-shaped as craft, leading to a crash in jet block their access to the app, payments instantly through cancel a previously initiated new and innovative digital Testifying to the quality ser- quarantine requirements and fuel demand. instantly settle Vodafone pay- the app. Western Union transfer. solutions and technologies, vices that QIB offers on its fresh outbreaks of Covid-19 in Some freight and domestic ments using Absher rewards Customers can continue The cancellation request we remain customer-centric Mobile Application, the Bank some cities curb air travel. An passenger travel have started to points and request to cancel a settling Ooredoo bills, top- is available in case the trans- throughout. achieved the highest rating L-shaped recovery is a slug- pick up. Recent trends suggest Western Union transfer. ups and Kahramaa bills by fer is still pending and has “By digitalising our prod- amongst all local banks on gish rebound that follows a air traffic between or within Customers who have an redeeming ABSHER rewards not been yet collected by the ucts and services, we are Apple Store and Google Play deep recession with persistent developed and emerging econ- expired QID or passport in points through the app. beneficiary. enabling our customers to Store, by receiving an average unemployment and stagnant omies, may remain restricted QIB’s records are able to in- Since the beginning of Commenting on the up- perform the majority of their rating of 4.7 out of 5.0. economic growth. until the end of the year. 10 Monday, July 27, 2020 Economy & Business US orders inspections of 2k Boeing planes grounded by virus

plane’s return to service, the to restart, which could result they find an issue.” The order affects jets that have been in agency said. in a forced off-airport land- The Boeing 737 NG is the storage and not flown for 7 or more days The FAA directive said the ing.” immediate predecessor plane move was prompted by four Boeing also advised opera- to the Boeing 737 MAX, which recent reports of single-engine tors of the planes to inspect for has been grounded since AFP emergency airworthiness di- shutdowns due to valves being engine valve corrosion. March 2019 following two fa- New York rective for Boeing 737 NG and stuck open. “With airplanes being tal crashes. Classic aircraft to look for cor- “Corrosion of these valves stored or used infrequently On Tuesday, the FAA said US air safety regulators on Fri- rosion on air check valves that on both engines could result in due to lower demand during it would issue a proposed air- day ordered plane operators could result in engine failure, a dual-engine power loss with- the COVID-19 pandemic, the worthiness directive for the to inspect some 2,000 Boeing an agency spokesman said. out the ability to restart,” the valve can be more suscepti- MAX, moving the plane one jets that have not been flying The order affects jets that FAA directive said. ble to corrosion,” a Boeing step closer to returning to due to weak travel demand have been in storage and not “This condition, if not ad- spokesman said. the skies. But the FAA said amid the COVID-19 pandemic. flown for seven or more days. dressed, could result in com- “Boeing is providing in- there were still several steps The Federal Aviation Ad- If corrosion is found, the valve pressor stalls and dual-engine spection and replacement in- before the MAX is cleared to ministration (FAA) issued an must be replaced prior to the The headquarters of the Boeing Company in Chicago. (AFP) power loss without the ability formation to fleet owners if fly again. Unilever sales Federal Reserve convenes as slow despite virus cleaning frenzy virus puts US recovery on edge

AFP The Hague The two-day meeting beginning on Tuesday comes as cases of coronavirus surge again British-Dutch consumer AFP giant Unilever said recently Washington that worried consumers Marked snapped up cleaning prod- The Federal Reserve meets ucts due to the coronavirus changes next week amid mixed signals pandemic but that overall Unilever said coronavirus and on the health of the US econo- sales slid. my, with some sectors bounc- During the first half of lockdowns provoked changes ing back from the coronavirus- the year, sales came in at 25.7 in consumer behaviour, with caused downturn and others billion euros ($29.8 billion), people spending more time struggling. a drop of 1.6 percent from at home and being more con- Retail and new home the same period last year, cerned about hygiene sales were among those with currency fluctuations showing growth over the last also negatively affecting the two months but the Labor results. In the second quar- billion euros. Department said last week ter, when lockdowns were in “Lockdowns in our mar- new claims for unemploy- place in much of Europe and kets and reduced personal ment benefits had increased North America, overall sales care occasions amidst re- week-on-week after months slid by 2.9 percent to 13.3 bil- stricted living, led to lower of declines. lion euros. demand for skin care, deo- Analysts say the mixed Unilever said coronavi- dorants and hair care, which indicators won’t be enough rus and lockdowns provoked each saw volume and price to get the rate-setting Fed- changes in consumer behav- decline,” said Unilever. eral Open Market Committee iour, with people spending The division’s largest (FOMC) to change course, more time at home and be- brand, Dove soap, saw mid- particularly not after it cut ing more concerned about single digit growth, however. the benchmark lending rate hygiene. Sales of food products, to 0-0.25 percent in March as “We saw increased con- which includes brands such the pandemic hit. sumer demand for house- as Magnum ice cream, Knorr “We don’t expect much hold cleaning products, soups and Lipton tea, slid 1.8 to come out of this particular such as Cif surface cleaners, percent in the second quarter meeting,” said Jonathan Mil- and our home and hygiene to 5.4 billion. It noted a 40 lar, deputy chief US economist brands delivered high-teens percent drop in food service at Barclays Investment Bank. underlying sales growth,” the sales at hotels, restaurants The two-day meeting be- company said in a statement. and cafes which was partially ginning Tuesday comes as cas- Nevertheless sales of offset by a rise in retail food es of coronavirus surge again, home care products overall sales. The results were bet- particularly in the southern Face masks are displayed at a shop near in Calexico, California recently. (afp) fell by 3.7 percent during the ter than expected by many and western United States, quarter to 2.6 billion euros. analysts, and shares in the raising fears that the world’s The most recent Labor De- Capital Markets said Fed Chair since COVID-19 is continuing ment in the overall economy.” And with many people no firm jumped by more than 8 largest economy is set for a partment report on weekly un- Jerome Powell would likely re- to hamper demand, even with In an interview with The longer going into the office percent in morning trading, prolonged downturn. employment claims was seized main vague in any comments interest rates low and liquidity Washington Post earlier this or out to socialise, sales of outpacing the 1.2 percent The Fed has offered tril- on by both Democrats and about the economy’s health at plentiful. month, Dallas Federal Reserve personal grooming products gain for Amsterdam’s main lions of dollars of liquidity to Republicans as they negotiate his press conference following Oxford Economics pre- President Robert Kaplan ech- sagged by 3.6 percent to 5.3 stock index. keep markets moving amid over aid. the FOMC meeting. dicted the Fed may in fact link oed a call from public health surging unemployment and Democrats pointed to the “He would respond by their movement of the lending officials for people to wear sharp drops in activity, while uptick in new claims as proof saying the Fed is aware of the rate to inflation. masks to prevent transmission warning in its “beige book” aid to the jobless is needed, recent rise in the spreading of “We believe the Fed is lean- of the coronavirus. survey released earlier this while Republicans said de- the pandemic and how high ing towards stating it won’t lift Yet even as more and more month of a “highly uncertain” clines in the four-week mov- frequency data suggest it is interest rates off the effective businesses mandate face cov- outlook. ing average of claims and the adversely affecting economic lower bound until inflation is erings, some Americans have The central bankers will insured unemployment rate activity -- and that the Fed is sustainably at or above the 2 rejected them as an infringe- convene via teleconference were evidence people are re- prepared if necessary to pro- percent target,” they said. ment on personal freedom, as lawmakers in Washington turning to work. vide more support to the econ- “We now forecast that rate meaning Powell is unlikely to negotiate over whether to ex- Fed officials have repeat- omy,” Levy said. lift-off will not take place until weigh in on the issue, Millar tend parts of the $2.2 trillion edly called for more fiscal sup- Though inflation jumped mid-2024 as inflation strug- said. CARES Act rescue package port to get the country through 0.6 percent in June as gas gles to reach 2 percent on a “I’d be surprised to see passed in March to blunt the the downturn. prices rose, there are few ex- sustained basis and the unem- them come and make a politi- pandemic-driven downturn. Mickey Levy of Berenberg pectations of it picking up pace ployment rate lags improve- cal statement,” he said. Six reasons to love the trendy 7 5G smartphone

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tca/dpa Los Angeles

With Tesla crossing a key finan- cial milestone and enjoying a diz- zying climb in the value of its stock, the company is treating itself to a splurge: a new factory. After months of speculation and unconfirmedreports, Chief Execu- tive Elon Musk previewed plans to build a plant in Austin, Texas, during a conference call to discuss Tesla’s second-quarter earnings Wednes- day. The news temporarily overshad- owed concerns hanging over the electric carmaker, which range from competitors eating away at its mar- ket share in Europe, to customer service struggles, to a reliance on government credits for its slender profits. The Austin facility’s main pur- pose will be the manufacture of cars, pickups and semi trucks, but Musk said the site will also serve as an “ecological paradise,” with publicly accessible pathways and boardwalks along the Colorado River where visi- tors can watch birds and butterflies. He offered little other detail. Asked how many vehicles the plant would eventually produce, he said “a lot.” The factory, scheduled to open in 18 months, would manufacture the company’s Cybertruck pickup, a semi truck, and Model 3 and Model Y cars for the Eastern United States, Musk said. The company’s California plant, in Fremont, would continue to build the Model S and Model X for global markets, and Models 3 and Y for the Western US. Tesla opened a factory in Shang- hai late last December and is erect- ing another in Grunheide, Germany, to build vehicles for the European market. Each plant will cost several bil- lion dollars. Tesla’s current cash flow is not strong enough to pay for such File photo of Tesla CEO Elon Musk in Shanghai. (afp) construction without raising more equity, debt, or both. Its profits right It marked the company’s fourth panies to help them meet average rently 100 per cent predicated on fortable with tiny profits for now. sla sold 367,000 vehicles. now come from the sale of regulatory quarterly profit in a row, which tech- fleet-wide emissions standards as selling one-time temporary credits “We want to be slightly profitable Tesla’s chief financial officer, pollution credits, not motor vehicles. nically qualifies the company for in- they remain dependent on internal to guys who increasingly don’t need and maximize growth and make the Zach Kirkhorn, told analysts that However, if Tesla’s spectacular clusion in the Standard & Poor’s 500 combustion engines. them,” said Gordon Johnson of GLJ cars as affordable as possible,” he the company continues to reduce stock market performance contin- index. If the S&P index committee In the second quarter, Tesla said Research, which assesses company said Wednesday. operating expenses. Money lost due ues - shares have more than quad- gives the OK, index funds that buy it sold 428 million dollars in credits, finance and strategy for big inves- Tesla’s sales in Europe and the to temporary shutdowns of both the rupled in value since March, closing stocks to replicate the broad mar- all pure profit. Net income for the tors. US have flattened or declined.I n Cal- Fremont and Shanghai plants was Wednesday at 1,592.33 dollars - rais- ket, and many more specialized ex- second quarter came in at 104 mil- But some stock analysts see ifornia, the company’s top US mar- made up by cutting employee pay ing such money shouldn’t pose a change-traded funds as well, will be lion dollars. Without the credits, the change ahead. Dan Ives, analyst at ket, Tesla registrations were down and delaying employee bonus pay- problem, as long as financial regula- required to buy its stock, potentially 17-year-old company would have lost Wedbush, said he’s especially ex- 48 per cent in the state for the second ments. tors approve. contributing another updraft to its 324 million dollars. cited about future demand in China, quarter, to 9,774 cars, according to However, Musk himself, who Tesla reported revenue of 6.04 already heady ascent. For the first half of the year, Te- which he said “remains a ray of light an analysis from market researcher earned a 700-million-dollar bonus billion dollars for the second quarter, Subtract regulatory credits from sla’s net income was 120 million dol- for Tesla in a dark global macro and Cross-Sell. earlier this year, qualified for an up 1 per cent from the first quarter the picture and Tesla continues to lars on the strength of 782 million appears to be on a run rate to hit Tesla last year said it planned to additional 2.1-billion-dollar bonus but down 5 per cent from the same lose money. Tesla earns those cred- dollars in credits. For all of 2019, Te- 150,000 unit deliveries” this year. sell 500,000 total vehicles in 2020. Tuesday based on the stock price and period in 2019. The company eked its because its electric cars, which sla sold 594 million dollars worth of Still, he said, he believes the com- With the Covid-19 epidemic sending the company’s market value, paid in out a 104-million-dollar profit for the spit out no tailpipe emissions, give pollution credits. pany’s stock is currently overvalued. spasms through the economy, that stock options that can be cashed in at quarter. it a credit surplus it can sell to com- “Tesla’s business model is cur- Musk told analysts that he’s com- will be tough to reach. Last year, Te- a later date. EPA takes first step on aircraft emissions limits

ICAO rule in 2016, which had al- industry is inherently internation- The Trump administration offered the rule at a ready prompted manufacturers to al, it can be difficult to determine pivotal time for the industry, which has been respond. Forced by environmental- which country is responsible for ists who sued the agency, the EPA what emissions. burning through cash due to the coronavirus acknowledged in 2016 that emis- “EPA’s proposal to adopt sions from airplanes threaten the ICAO’s fuel efficiency and CO2 cer- tca/dpa plane emissions. climate and humans _ a finding tification standard for newly manu- Washington The Trump administration of- that required the agency to set lim- factured aircraft is good for our fered the rule at a pivotal time its for plane emissions. industry, for our country and for The US Environmental Protection for the industry, which has been “The Trump administration is the world,” Nancy Young, A4A Vice Agency (EPA) took a first step to- burning through cash due to the trying to dodge its legal responsi- President, Environmental Affairs, ward setting an emissions standard coronavirus pandemic, as it faces bility and help airlines escape ac- said, while Boeing called the EPA for commercial aircraft last week, technical challenges in flying in a countability for their dangerous proposal “a major step forward for pleasing the industry and disap- hotter world, is bracing for rising emissions,” said Clare Lakewood, protecting the environment and pointing environmental advocates sea levels due to human-caused cli- climate legal director at the Center supporting sustainable growth of who sought tougher rules. mate change and generates a mas- for Biological Diversity, an envi- commercial aviation and the Unit- In announcing the rule, EPA sive portion of greenhouse gases in ronmental group. “As the climate ed States economy.” Airport woes Administrator Andrew Wheeler the US transportation sector and File photo of a Boeing 737 MAX jet in Seattle, Washington. (afp) crisis deepens, we desperately need As the world heats, sea levels are said the agency was trying to match worldwide. Major emitter Aviation technology-forcing standards that rising, prompting managers of air- the 2016 rule set by the Interna- generates about 3 per cent of global the type of plane, including a re- ensure that older, less efficient air- actually reduce aircraft pollution.” ports, which are often on low-slung tional Civil Aviation Organization, greenhouse emissions - meaning quirement for new designs certified planes are replaced by newer, more Decarbonizing the aviation sector stretches of land near water, to pre- a UN office, to address global emis- if it were a country, it would rank as of January 2020. Other dead- efficient models.” Strikingly, in a is difficult technologically and le- pare for rising water levels. sions from aircraft. among the top 10 nations with the lines under the proposal would be draft version of the proposal, the gally, as Democrats on the House In 2017, Oakland and San Fran- A leading industry lobby and biggest carbon footprints, on par met for different planes in 2023 EPA acknowledged that it is not Select Committee on the Climate cisco sued BP PLC, Chevron Corp., trade group, Airlines for America, with nations like Germany, Italy and 2028. expected to lower greenhouse gas Crisis said in a June report . ConocoPhillips Co., Exxon Mobil said it was pleased with the rule, and Japan. “We are implementing the emissions. “Full electrification of airline Corp. and Royal Dutch Shell PLC which environmental groups criti- The proposed standards would ICAO recommendations, ICAO “The EPA is not projecting fleets, if technologically feasible, over climate change damages, call- cized as feeble, pointing to the not apply to aircraft in use but in- standards,” EPA Administrator emission reductions associated may be decades off,” the committee ing for them to pay for the costs of agency’s own admission that the stead cover planes in a series of Andrew Wheeler told reporters. with today’s proposed GHG regu- said in the report, the result of 18 building sea walls to rebuff rising proposal would likely not curb steps and deadlines, depending on “The finalized regulation will help lations,” the agency said, citing the months of work. And because the waters. 12 Monday, July 27, 2020 Economy & Business 1MDB: Malaysia’s COVID-19: Emerging markets extraordinary financial scandal face challenges, opportunities AFP The department said Kuala Lumpur more than $4.5 billion was Coronavirus is galvanising governments in emerging economies to boost domestic food production stolen from 1MDB between Malaysia’s extraordinary 2009 and 2015 by high-level Tribune News Network 1MDB corruption scandal officials at the fund and Doha allegedly saw top officials their associates. loot billions from state cof- Tens of millions of dol- The coronavirus pandemic fers and go on a worldwide lars were used in 2012 by has exposed the potential vul- spending spree -- buying Najib’s stepson Riza Aziz, nerability of the world’s food a $250 million yacht and an aspiring film producer, supply chains, according to a painting by Van Gogh, to fund the Hollywood film the Oxford Business Group and financing aH ollywood “The Wolf of Wall Street”, (OBG). blockbuster. starring Leonardo DiCaprio. This is galvanising govern- Najib Razak, the then- Hundreds of millions ments in emerging economies prime minister, was accused were also used, mainly by to boost domestic production of involvement in plunder- Riza and Low, to purchase through new agricultural in- ing the fund and the contro- high-end real estate in Bev- puts and investment in agri- versy helped sweep his long- erly Hills, New York and tech and logistics networks. ruling coalition from power London. The UN’s World Food Pro- in 2018. gramme (WFP) has warned He is currently facing Political turbulence that 265 million people glob- three court cases over the Najib desperately ally could face acute food in- scandal. The verdict in his sought to contain the scan- security by the end of the year first trial, over allegations he dal, targeting critics and in- – double the figure before the pocketed around $10 mil- troducing repressive laws, pandemic. lion, will be handed down on but the allegations hit the This dramatic spike is Tuesday. popularity of his long-ruling based on a number of factors. Here is a look back at the coalition and contributed to For example, the lockdown saga: a shock election defeat in measures have led to severe 2018. labour shortages in key agri- What was 1MDB? A new government cultural areas, meaning that 1Malaysia Development headed by veteran politician many crops were simply left to Berhad (1MDB) was a state Mahathir Mohamad, rot in fields. investment fund which now aged 95, came This was compounded by Najib launched in 2009 to office on a wave disruptions to local and inter- shortly after becoming of public anger, national supply chains. As a As a result of COVID-19 disrupting many of the world’s trade links, countries in the Middle East have sharpened their focus on regional coopera- prime minister. and re-opened in- result of shortages, the prices tion and self-sufficiency. Its portfolio includ- vestigations. of key staples increased, which ed power plants and Najib was hit meant that many people in also been made to address leading to food shortages. other energy assets in with dozens of lower socio-economic demo- structural inefficiencies and At-risk groups, such as Malaysia and the charges, and graphics were unable to afford bolster Africa’s food supply Challenges by region indigenous communities and Middle East, his first trial basic goods. network. ● the 3m Venezuelan migrants as well as over the These factors have com- One area of focus is the Even before the outbreak of COVID-19, around half of in Colombia, Ecuador and real estate scandal fi- bined with existing challenges, quality of inputs. Available Africa’s population were facing some form of food insecurity. Peru, also face significant in Kuala nally start- such as the impact of climate seeds are often poor quality ● As a result of hot and dry weather, Middle East is the threats to their food supplies. Lumpur. ed in April change on agricultural yields, and unable to withstand peri- In light of these concerns, The last year. to create an acute food secu- ods of inclement weather. world’s most water-stressed region. in Colombia the WFP has fund was But in rity challenge. In light of this, To help address this issue, ● As one of the world’s leading food producing and exporting been assisting nearly 400,000 closely February, countries around the world in June the Nigerian govern- regions, Latin America is facing its own set of challenges people every month with cash overseen the reform- have been proactive in trying ment, along with the Interna- when it comes to food security. transfers or food rations. In by Najib. ist alliance to stabilise food supplies. tional Crops Institute for the Ecuador it has been provid- Najib Razak collapsed Semi-Arid Tropics, announced ● The world’s worst locust infestation in 25 years has ing monthly food vouchers to after bit- Agricultural innovation in that more than 10,000 farm- provided fresh challenges for many parts of south-west Asia. 96,000 people, while in Peru Whistleblowers say Low ter infighting, and a new Africa ers across 13 states would re- it is providing logistical sup- Taek Jho, a jet-setting Ma- coalition that included Na- Even before the outbreak ceive high-quality sorghum, port to the government to de- laysian financier close to jib’s scandal-plagued party of COVID-19, around half of pearl millet, cowpea and rice In mid-April, at the height with the WFP estimating that liver 240,000 food kits to vul- Najib but with no official po- seized power. Africa’s population – an es- seeds to bolster crop produc- of the outbreak, the GCC the number of people in Latin nerable households in Lima sition, helped set up 1MDB Charges against Riza timated 670m people – were tion. adopted a Kuwaiti proposal to America and the Caribbean and Callao. and made key financial deci- were unexpectedly dropped facing some form of food in- This follows the lead of create a joint food supply net- facing severe food insecurity sions. in May after he agreed to re- security. It is therefore no sur- Mozambique, where a pilot work across the bloc. could increase from 3.4m in Asia battles locust infes- Concerns escalated in turn assets to Malaysia. prise that the continent has programme for newly devel- As part of the deal, mem- 2019 to 13.7m this year. tation 2014 as 1MDB slid into an A month later, corrup- been considerably affected by oped, heat-tolerant bean seeds ber countries set up special ar- The situation is particu- The world’s worst locust $11-billion debt hole, and tion and money-laundering the pandemic. is ongoing; and Ethiopia, rangements at border controls larly acute in Haiti, where infestation in 25 years has intensifying public scrutiny charges against a key Najib The uptick in personal fi- where the introduction of rust- and Customs posts to facilitate 1.6m of the 11.4m-strong provided fresh challenges revealed missing funds. ally, Musa Aman, were also nancial insecurity has also resistant wheat varieties has the movement of basic food population are facing severe for many parts of south-west The scandal first came dropped. heightened the risk of food seen farmers’ yields increase and medical supplies. food shortages, and Central Asia. to light through the Sarawak insecurity, with food prices in by around 40%. Parallel to this, there has America’s so-called dry cor- In addition to East Africa Report news portal, and The trial many countries rising as a re- been an increase in agri-tech ridor, consisting primarily of and parts of the Middle East, gained further traction in Najib’s first trial linked sult of panic buying, transport A turn to to agri-tech in investment in the region. Guatemala, Honduras and El locust outbreaks have badly 2015 when The Wall Street to the 1MDB scandal cen- restrictions and a drop in pro- the Middle East In April, Kuwait’s Wa- Salvador, where the number affected crops in India and Journal published docu- tres on allegations that 42 duction. The Middle East is another fra International Investment of people facing severe food Pakistan, placing many com- ments showing Najib re- million ringgit ($9.9 mil- For example, a World region that is particularly vul- Company announced that it insecurity is expected to al- munities at risk of food inse- ceived at least $681 million lion) was transferred to his Bank survey found that 70% of nerable to food insecurity. was to invest $100m in Abu most double to 3m. curity. in payments to his personal bank accounts from SRC In- urban and 75% of rural Nigeri- As a result of hot and dry Dhabi-headquartered start-up To combat these short- While efforts are under bank accounts. ternational, a former unit of ans were facing food insecuri- weather, it is the world’s most Pure Harvest. ages, made worse by virus- way globally to try and reha- the fund. ty as a result of the pandemic. water-stressed region. Middle related border closures, there bilitate areas affected by lo- Rich living He is facing four charges To make matters worse, Eastern countries are there- High-risk groups in Latin has been increased emphasis custs, new forms of technol- The US Justice Depart- of corruption and three of the continent is also expe- fore among the largest food America on improving logistics con- ogy are also proving useful. ment launched its own money-laundering in the riencing a locust outbreak importers globally, with most As one of the world’s lead- nections to areas in need. In May drones were used probe after claims that sto- case, and denies wrongdo- around the Horn of Africa, relying on imports for around ing food producing and ex- Elsewhere, despite being for the first time in the state len Malaysian public money ing. placing further pressure on re- half of their food needs. porting regions, Latin Amer- responsible for the bulk of the of Rajasthan, northern India, was laundered through the His lawyers insist he had gional agricultural production. As a result of COVID-19 ica is facing its own set of region’s agricultural produce, to spray insecticides designed US financialsystem, and has no knowledge of the trans- While a series of govern- disrupting many of the world’s challenges when it comes to rural areas are at greater risk to disperse swarms of locusts. filed lawsuits seeking some fers and have claimed that ment stimulus packages and trade links, countries in the food security. of food insecurity, with coro- In addition, drones have been $1.8 billion in assets alleged- Low was the true master- inter-governmental financial Middle East have sharpened COVID-19 has placed sig- navirus-related disruptions used to carry out pest sur- ly purchased with the cash. mind behind the scam. aid has sought to provide im- their focus on regional coop- nificant strain on particular to employment exacerbating veillance and monitor crop mediate relief, efforts have eration and self-sufficiency. countries and social groups, existing levels of poverty and growth.

‘Too scared to come back’ Indian firms struggle to lure migrant workers back as economy crumbles

AFP and Odisha, who worked as secu- creches for kids,” the group’s has (also) stopped because... credit Mumbai rity guards, cooks and cleaners. billionaire co-founder Niranjan disbursal is based on construction But as the city became a virus Hiranandani told AFP. progress and sales,” he said, pro- Spurning free air tickets, ac- hotspot, around 80 percent of con- With a colossal slump in jecting the turmoil to deepen. commodation and higher pay, mil- struction workers left the financial growth expected, Prime Minister Business owners in other fields lions of migrant workers who fled hub after work came to a stand- Narendra Modi’s government paint an equally grim picture. India’s cities when coronavirus still, according to the Maharashtra has steadily eased restrictions on Aseem Kumar, general sec- hit are too scared to return, with Chamber of Housing Industry. many businesses even as coro- retary of the Garment Exporters grim implications for the already Four months on, with lock- navirus cases surge towards 1.5 Association of Rajasthan, told AFP crumbling economy. down measures eased, some million. his sector was “in a mess”. Migrant labourers form the workers have trickled back but But analysts say firms are still The organisation represents backbone of Asia’s third-biggest more than 10,000 building sites staring at a bleak future due to 300 manufacturers exporting economy toiling in every sector are lying virtually abandoned due battered finances, stalled projects clothing to Japan, the United from making consumer goods and to severe labour shortages across and crucially, a lack of workers. States and Europe. Many have stitching garments to driving cabs. the city. Real estate demand has plum- offered workers accommodation, But when India went into lock- “We are trying our best to meted by almost 90 percent in insurance and a 20-percent raise, down in late March, vast numbers bring back migrant workers, even Mumbai alone, with falling sales but to little avail. lost their jobs, prompting a huge going to the extent of giving them and the lull in construction severe- “Most of the orders have been heart-rending exodus back to their air tickets, COVID-19 health insur- ly affecting access to credit. deferred to next season as there home villages, sometimes on foot, ance ... (and) weekly checkups Workers walk near the construction site of a coastal road project in Mumbai, “We have a double whammy are no labourers available,” he their children in their arms. by doctors,” real estate developer India. (AFP) with the pandemic eroding de- said. Some died on the way. Rajesh Prajapati said. mand while construction workers A lack of transport means that Mumbai’s swanky high-rises, “But it has not reaped any tinued to pay its workers during 4,500 workers to stay on site. are not available,” Pankaj Kapoor, even those who are willing to swal- for example, were built and largely positive signs yet,” he told AFP. lockdown, has had more success, “We looked after them, took CEO of Mumbai-based consul- low their fear and return to work staffed by people from poorer Property giant Hiranandani but has still only managed to care of their food, safety and tancy Liases Foras, told AFP. -- many are desperate to do so -- states such as Uttar Pradesh, Bihar Group which -- unusually -- con- convince around 30 percent of its sanitisation and even had mobile “Credit flow from the lender are unable to.