Category: Economy

Group of Seven (G7) advanced nations should adopt “risk-based” regulation on artificial intelligence, their digital ministers agreed on April 30. However, the ministers said that such regulation should also “preserve an open and enabling environment” for the development of AI technologies and be based on democratic values.

The top tech officials from G7 – Britain, Canada, the EU, France, Germany, Italy, Japan and the United States – met for G7 Digital and Tech Ministers’ Meeting in Takasaki, a city about 100 km northwest of Tokyo, Japan, on April 29-30. In a joint statement issued at the end of a two-day meeting, the digital and technology ministers recognised that “policy instruments to achieve the common vision and goal of trustworthy AI may vary across G7 members.” The agreement sets a landmark for how major countries govern AI amid privacy concerns and security risks.

European lawmakers have been pushing for an AI Act to enforce rules on emerging tools such as ChatGPT. “The conclusions of this G7 meeting show that we are definitely not alone in this,” European Commission Executive Vice President Margrethe Vestager said in an interview ahead of the agreement.

Governments have been led by the popularity of generative AI tools such as ChatGPT, a chatbot developed by Microsoft Corp-backed OpenAI that has become the fastest-growing app in history since its November launch.

In the statement, the block said that it plans to convene future discussions on generative AI, which could include topics such as governance, how to safeguard intellectual property rights such as copyright, promote transparency, address disinformation like information manipulation by foreign forces.

South Korea has restored Japan to its list of countries it gives preferential treatment in trade on April 24, three years after the Asian countries downgraded each other’s trade status in the midst of a diplomatic row led by historical grievances. South Korea’s Ministry of Trade, Industry and Energy in a government gazette also said Seoul will further restrict technology and industrial exports to Russia and its ally Belarus over the war in Ukraine.

Japan and South Korea are working to repair relations, as they boost three-way security cooperation with Washington to counter the threat posed by North Korea. With the announcement, South Korea expects Tokyo to restore Seoul as a favoured trade partner as well.

In September 2019, South Korea dropped Japan from its white list of countries, which get fast-track approvals in trade. It was in response to a similar move by Japan. Tokyo had also tightened export controls on key chemicals South Korean companies use to make semiconductors and displays, a move that made South Korea file a complaint with the World Trade Organization. Earlier, South Korea had also ordered Japanese companies to offer reparations to South Koreans pushed into forced labour during Japanese rule.

Relations between the neighbours began to ease in March when South Korean President Yoon Suk Yeol announced plans to use South Korean funds to compensate the forced laborers without requiring Japanese contributions. During his recent visit to Tokyo to meet Japanese Prime Minister Fumio Kishida, the leaders vowed to rebuild the countries’ security and economic ties. 

The UK government has announced £100 million in funding for a taskforce that would develop artificial intelligence (AI) models similar to ChatGPT and Google’s Bard, to help the country build and adopt the next generation of safe AI.

The Foundation Model Taskforce will be modelled on the success of the COVID-19 Vaccines Taskforce, and will work on safe and reliable use of this pivotal AI across the economy and ensure that the UK is globally competitive in this strategic technology. The expert taskforce will launch first pilots targeting public services in the next six months, said an official statement. The investment will build the UK’s ‘sovereign’ national capabilities, the statement added.

Foundation models such as large language models like ChatGPT and Google Bard are a category of AI systems trained on huge volumes of data such as text, images, video or audio to gain broad and sophisticated capabilities across many tasks. It will help deliver on the objective of growing the UK’s economy, while generating better outcomes for people through better public services.

Research suggests that the broad adoption of such systems could triple national productivity growth rates. The technology is also predicted to raise global GDP by 7 percent over a decade. This will make its adoption a vital opportunity to grow the UK economy, and support businesses and public trust in these systems and drive their adoption, the statement said.

A World Bank report has estimated a 120% rise in the incomes of Indians working abroad and a 40% increase in incomes of Indians who migrated internally. The World Development Report (WDR) 2023 said that low-skilled Indians who migrate to the US could see a 500% jump in their incomes, while those settling in the UAE could see nearly 300% income rise. People migrating to the Gulf Cooperation Council (GCC) nations – Oman, Kuwait, UAE, Saudi Arabia, Qatar and Bahrain are likely to see a lesser income gain.

The report, Migrants, Refugees and Societies noted that apart from skills, other factors such as destination, language ability, and age play a crucial role in deciding one’s income. The gains for highly-skilled workers such as engineers or doctors are much higher, but low-skilled workers are also witnessing a multi-fold jump in their income.

The study found that the world has 184 million migrants with around 37 million refugees. It classified the migrants into four types – refugees with skills in demand, economic migrants with skills that match with demand, distressed migrants, and refugees. India-US, India-Bangladesh and India-GCC have been considered among the top migrant corridors.

The WDR further noted that the migration comes at a cost for people moving countries for work. Indians moving to Qatar spend their two months’ earnings on an average to meet the migration cost; the cost is a little higher in Kuwait. It also noted the rise in remittances due to the large migrant population, such as Indian migrants in the UAE sending around 70% of their income to their family.

Shanghai Cooperation Organisation (SCO) Defence Ministers meeting took place in New Delhi under the chairship of India, with ministers from Russia, China, the Central Asian nations and observer nations Iran and Belarus discussing critical issues related to regional security.

The meeting was chaired by Defence Minister Rajnath Singh and included Russia’s Sergei Shoigu, Tajikistan’s Colonel General Sherali Mirzo, Iran’s Brigadier General Mohammad Reza Gharaei Ashtiyani, Chinese Defence Minister Li Shangfu, and Kazakhstan’s Colonel General Ruslan Zhaksylykov and other leaders. Malik Ahmed Khan, SAPM on Defence Affairs attended the meeting on behalf of Pakistan’s Defence Minister Khwaja Muhammad Asif.

In addition to regional security, the ministers talked about the security challenges in Afghanistan, cross-border terrorism, radicalisation, and narco trafficking, among other issues. The priority of the SCO members’ nations is to further enhance efforts to combat terrorism and extremism.

India has been urging the member countries to also focus on military medicine and devise ways to deal with new emerging threats the soldiers face by the constantly evolving battlefield technology and threats of chemical, biological and nuclear warfare.

The SCO was set up in 2001 by Russia and China and Kazakhstan, Tajikistan, the Kyrgyz Republic and Uzbekistan. India and Pakistan became full members of the grouping in 2017. The defence ministers of the member countries focus on economic cooperation and security in the Eurasian region.

Nineteen nations, including Algeria, Egypt and Indonesia have shown interest in joining the BRICS group of nations. The group has received membership requests from these nations ahead of its annual summit, said Anil Sooklal, South Africa’s ambassador to the group in an interview on April 24.

The BRICS group of nations is preparing to hold the proposed annual summit in South Africa. The emerging markets bloc will meet in Cape Town on June 2-3 to discuss its expansion, added Anil Sooklal. Thirteen countries have formally asked to join the group and another six have asked informally. Conclusively, Sooklal said new applications are submitted “every day.”

BRICS comprises Brazil, Russia, India, China, and South Africa. The group only admitted a single member of South Africa in 2010 since its formation as the BRIC in 2006. Earlier this year, the BRICS collective said that it is open to new members. As the bloc of countries has surpassed the G7 nations in GDP (PPP), it seems expansion could continue to implement a shift in the global power balance. This is specifically important amid the bloc’s continued efforts to replace the US dollar in international trade.

The foreign ministers from the five member states have all confirmed to attend the discussions in June. In addition to its membership, they will discuss “hot spots” such as Sudan.

For the third in a row, tech giant Google has ranked as Singapore’s best employer, led by work-from-home and flexible work arrangements when the Covid-19 pandemic hit. Despite the challenging times, with mass layoffs and company closures, the company has stuck to its hybrid work arrangements, helping it maintain its top ranking in the Singapore’s Best Employers 2023 list attests.

Consumer goods corporation Procter & Gamble (P&G) came in second, followed by financial services company Wells Fargo. Tech giant Apple and jet engine maker Rolls-Royce made the rest of the top five, out of more than 1,700 eligible organisations across 27 industries. Singapore’s Best Employers 2023 ranks the top 250 companies and institutions with at least 200 employees. The list stems from an online survey of around 17,000 employees in September and October 2022.

Companies in Singapore were given a score based on whether their staff members would suggest their employer to a friend or family member. Six categories were assessed: atmosphere at work and potential for development; image; working conditions; workplace; salary; and diversity.  The top score for 2023 was 9.13 out of a maximum of 10, while the score for the 250th place was 6.97.

In 2023, the annual study by global data firm Statista recorded improvement in overall satisfaction among surveyed employees from previous years, with 20 industries out of 27 getting higher overall scores. The option of working from home had the most influence on employee satisfaction under the category of working conditions.

HCL Co-founder Ajai Chowdhry has said that India can replace China to become the product factory of the world. To him, in the next eight or 10 years, there is going to be a huge opportunity in hardware, presenting a huge opportunity for startups and to make India a product nation, he added.

In an interview, Chowdhry — who is part of the IT ministry-constituted advisory panel of experts that will steer objectives and provide guidance on the semiconductor program — said India’s manufacturing push, supported by favourable policies, is timely and positions the country strongly to grab a massive opportunity in the electronics hardware space amid COVID-induced supply chain disruptions and global trust deficit around China. The veteran exuded confidence that India can become a reliable partner for the world in the area of hardware production and chip-making.

One of the six HCL co-founders, Chowdhry is now an investor in and mentor to startups in segments from quick-service restaurants to space tech. He is also the author of Just Aspire: Notes on Technology, Entrepreneurship and the Future, which was launched in Delhi on March 14. In a conversation at his home office in the city, he said the next big thing in tech will be in the hardware space.

Companies in East Asia are facing more inspection on their environmental credentials and net-zero emissions pledges.

In January, South Korea became the first nation in East Asia to draft a law that would fine firms for false or exaggerated green claims. South Korean oil company SK E&S was pressured by activists into withdrawing claims that it would produce carbon-free gas. Industry professionals are calling for tougher action against companies to target greenwashing in the Asia-Pacific region.

SK E&S has said it would produce “CO2-free” liquefied natural gas (LNG). In March 2022, South Korea’s Environment Ministry warned the company that it needed to base its claims on facts. The firm finally changed the message on its website to say the Barossa gas project off Australia’s northern coast was “low-carbon”.

South Korea is now preparing a greenwashing law. The draft greenwashing law, which includes fines of up to US dollars 2,300, is expected to be passed in the first half of 2023.

While the fine is small, the Bill is seen to be a major shift in approach from the government, which earlier tackled greenwashing by giving administrative guidance to oil refiners and steel giants.

Greenwashing is in the spotlight globally, with United Nations experts issuing a warning at COP27 climate summit last year about its prevalence, and new standards on environmental, social and governance credentials currently under consideration by an international body.

Union Minister of Petroleum and Natural Gas Hardeep Singh Puri is confident that India will meet the target of supplying petrol mixed with 20 percent ethanol by 2025, five years ahead of the previously planned roll-out in 2030.

Petrol blended with 20 percent ethanol was launched at select petrol pumps in 11 states and Union Territories in February 2023 under a programme to raise the use of biofuels to cut emissions and dependence on oil imports. Currently, 10 percent ethanol is blended in 90 percent petrol. The blending of 10 percent ethanol in petrol was accomplished in June 2022, five months ahead of the schedule. The Centre now plans to double this quantity by 2025.

India not only saved Rs. 41,500 crore in forex spending from 10 percent blending, but also benefitted farmers, the union minister said. “We also advanced the availability of E20 blended petrol to 2025, five years from earlier planned in 2030,” he added.

Use of E20 leads to an estimated reduction of carbon monoxide emissions by about 50 percent in two-wheelers and about 30 percent in four-wheelers compared to E0, i.e., neat petrol. Hydrocarbon emissions are estimated to reduce by 20 percent in both two-wheelers and passenger cars.