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The founder of a failed Singapore oil trading company was sentenced Monday to nearly 18 years in jail for cheating banking giant HSBC out of millions of dollars in one of the country’s most serious cases of fraud.Lim Oon Kuin, 82, better known as O.K. Lim, was convicted in May in a case that dented the city-state’s reputation as a top Asian oil trading hub.His firm, Hin Leong Trading, was among Asia’s biggest oil trading companies before its sudden and dramatic collapse in 2020.Sentencing him to 17 and a half years in jail, State Courts judge Toh Han Li said he agreed with the prosecution that the offences had the potential to undermine confidence in Singapore’s oil trading industry.The amount involved “stood at the top-tier of cheating cases” in the city-state, a global financial hub, he said.The judge shaved off a year due to Lim’s age but did not give any sentencing discount on account of his health, saying the Singapore Prison Service has adequate medical facilities.Lim, however, remained free on bail after his lawyers said they would file an appeal before the High Court.State prosecutors had sought a 20-year jail term, saying “this is one of the most serious cases of trade financing fraud that has ever been prosecuted in Singapore”.The defence had argued for seven years imprisonment, playing down the harm caused by Lim’s offences and citing his age and poor health.The businessman faced a total of 130 criminal charges involving hundreds of millions of dollars, but prosecutors tried and convicted him on just three — two of cheating HSBC, and a third of encouraging a Hin Leong executive to forge documents.Prosecutors said he tricked HSBC into disbursing nearly $112 million by telling the bank that his firm had entered into oil sales contracts with two companies.The transactions were, in fact, “complete fabrications, concocted on the accused’s directions”, prosecutors said, adding that his actions “tarnished Singapore’s hard-earned reputation as Asia’s leading oil trading hub”.- ‘Unprecedented turmoil’ -Lim built Hin Leong from a single delivery truck shortly before Singapore became independent in 1965.It grew into a major supplier of fuel used by ships, and its rise in some ways mirrored Singapore’s growth from a gritty port to an affluent financial hub.The firm played a key role in helping the city-state become the world’s top ship refuelling port, observers say, and it expanded into ship chartering and management with a subsidiary that has a fleet of more than 150 vessels.But it came crashing down in 2020 when the coronavirus pandemic plunged oil markets into unprecedented turmoil, exposing Hin Leong’s financial troubles, and Lim sought court protection from creditors.In a bombshell affidavit seen by AFP in 2020, Lim revealed the oil trader had “in truth… not been making profits in the last few years” — despite having officially reported a healthy balance sheet in 2019.He admitted that the firm he founded after emigrating from China had hidden $800 million in losses over the years, while it also owed almost $4 billion to banks.Lim took responsibility for ordering the company not to report the losses and confessed it had sold off inventories that were supposed to backstop loans.

Asian markets were mixed Monday following a sell-off on Wall Street as investors scale back their bets on Federal Reserve interest rate cuts owing to worries Donald Trump could reignite inflation.A warning from US central bank boss Jerome Powell that reductions in borrowing costs were not preset dented optimism last week, while traders were also keeping tabs on the president-elect’s cabinet choices, with several China hawks lined up.Expectations that a second Trump administration will impose fresh painful tariffs on Chinese goods has added to the unease and ramped up fears of another trade war between the economic powerhouses.All three main indexes on Wall Street ended deep in the red Friday, with the Nasdaq down more than two percent, after Powell’s remarks the day before.After Trump’s victory at the start of the month, markets had already been winding back their expectations for the number of rate cuts the Fed would announce next year.The bank’s next policy decision in December will be closely followed for an idea about officials’ plans.Still, Philipp E. Bärtschi, chief investment officer at Bank J. Safra Sarasin, was upbeat about the outlook for equities.”The clear and swift outcome of the US elections reduced uncertainty and investors’ appetite for risk improved significantly,” he said in a note. “This trend is likely to continue in the coming weeks and ensure a positive year-end on the financial markets.”With the election of Donald Trump as US president, the volatility in macro forecasts is likely to increase due to his plans. Deregulation and tax cuts would accelerate nominal growth, while a trade war should slow growth. “Although many of Trump’s proposals will only have an impact after a delay — if at all — consumer sentiment and the business climate are likely to improve in the short term. A possible US recession has receded into the distant future.”In early Asian trade, Hong Kong and Sydney led gains, adding more than one percent each, while Singapore, Seoul, Wellington and Manila also rose.However, Tokyo dropped with Taipei and Jakarta, while Sydney was flat.The lowering of US rate cut expectations helped the dollar hold onto gains against its major peers, with investors also tracking comments from Japanese authorities amid speculation they could intervene in forex markets if the yen weakens too much too quickly. And bitcoin sat just above $90,000, having hit another record high of $93,462 last week on hopes Trump will push for more deregulation of the crypto market.Dealers were also awaiting the release of earnings from chip titan Nvidia this week, after the firm led a surge in tech firms this year owing to an explosion in demand for all things linked to artificial intelligence- Key figures around 0230 GMT -Tokyo – Nikkei 225: DOWN 0.8 percent at 38,343.39 (break)Hong Kong – Hang Seng Index: UP 1.6 percent at 19,729.41Shanghai – Composite: UP 1.3 percent at 3,372.31Euro/dollar: UP at $1.0542 from $1.0536 on FridayPound/dollar: UP at $1.2634 from $1.2611Dollar/yen: UP at 154.82 yen from 154.32 yenEuro/pound: DOWN at 83.44 pence from 83.52 penceWest Texas Intermediate: UP 0.1 percent at $67.07 per barrelBrent North Sea Crude: UP 0.2 percent at $71.17 per barrelNew York – Dow: DOWN 0.7 percent at 43,444.99 (close)London – FTSE 100: DOWN 0.1 percent at 8,063.61 (close) 

The founder of a failed Singapore oil trading company will be sentenced Monday for cheating banking giant HSBC out of millions of dollars in one of the country’s most serious cases of fraud.Lim Oon Kuin, better known as O.K. Lim, was convicted in May in the case that dented the city-state’s reputation as a top Asian oil trading hub.His firm, Hin Leong Trading, was among Asia’s biggest oil trading companies before its sudden and dramatic collapse in 2020.State Courts Judge Toh Han Li was due to sentence Lim at 2:30pm (0630GMT) Monday.State prosecutors are seeking a 20-year jail term for the octogenarian businessman, saying “this is one of the most serious cases of trade financing fraud that has ever been prosecuted in Singapore”.The defence is seeking seven years imprisonment, playing down the harm caused by Lim’s offences and citing his age and poor health.The businessman faced a total of 130 criminal charges involving hundreds of millions of dollars, but prosecutors tried and convicted him on just three — two of cheating HSBC, and a third of encouraging a Hin Leong executive to forge documents.Prosecutors said he tricked HSBC into disbursing nearly $112 million by telling the bank that his firm had entered into oil sales contracts with two companies.The transactions were, in fact, “complete fabrications, concocted on the accused’s directions”, prosecutors said, adding that his actions “tarnished Singapore’s hard-earned reputation as Asia’s leading oil trading hub”.- ‘Unprecedented turmoil’ -Lim built Hin Leong from a single delivery truck shortly before Singapore became independent in 1965.It grew into a major supplier of fuel used by ships, and its rise in some ways mirrored Singapore’s growth from a gritty port to an affluent financial hub.The firm played a key role in helping the city-state become the world’s top ship refuelling port, observers say, and it expanded into ship chartering and management with a subsidiary that has a fleet of more than 150 vessels.But it came crashing down in 2020 when the coronavirus pandemic plunged oil markets into unprecedented turmoil, exposing Hin Leong’s financial troubles, and Lim sought court protection from creditors.In a bombshell affidavit seen by AFP in 2020, Lim revealed the oil trader had “in truth… not been making profits in the last few years” — despite having officially reported a healthy balance sheet in 2019.He admitted that the firm he founded after emigrating from China had hidden $800 million in losses over the years, while it also owed almost $4 billion to banks.Lim took responsibility for ordering the company not to report the losses and confessed it had sold off inventories that were supposed to backstop loans.

Chinese leader Xi Jinping said he was seeking to “further enhance” ties with Brazil as he arrived Sunday for a state visit and a G20 summit, state media said.Xi is due to meet Brazilian President Luiz Inacio Lula da Silva on the visit, which will last until Thursday.State news agency Xinhua said he looked forward to talks “on further enhancing China-Brazil relations, promoting synergy of the two countries’ development strategies, international and regional issues of common interest.”The Chinese leader said “the visit will further strengthen the two countries’ strategic mutual trust, deepen exchanges and cooperation in various fields,” Xinhua said.At the 19th meeting of G20 leaders, Xi said he was “ready to work with all parties to discuss plans and seek development,” state media said, as well as “jointly advocate an equal and orderly multipolar world and a universally beneficial and inclusive economic globalization.”China is Brazil’s top trading partner, exceeding $180 billion in each-way trade in 2023, with semiconductors, phones and pharmaceuticals dominating exports to the South American country.Since returning to power last year, Lula has carried out a delicate balancing act as he seeks to deepen ties with China while improving relations with the United States.Both Brazil and China have sought to position themselves as mediators in the conflict in Ukraine, while declining to sanction Russia for its invasion.A visit this year by Vice President Geraldo Alckmin to Beijing was seen as paving the way for Brazil to join China’s massive Belt and Road Initiative infrastructure project.A number of South American nations, including Peru, have signed up to the initiative which is a central pillar of President Xi’s bid to expand China’s clout overseas.

Suffocating under a mountain of debt to China, communist Laos is struggling to tame rampant inflation, with food prices rising so sharply that a growing number of households are resorting to foraging.At a market in Vientiane, traders told AFP they have never known business to be so slow, as families have seen the value of their money collapse since Covid-19.While the pandemic and Russia’s invasion of Ukraine sent prices around the world spiralling, Laos has found itself incapable of putting the brakes on inflation.Prices rocketed 23 percent in 2022 and 31 percent last year, while they are on course for 25 percent this year, according to the Asian Development Bank (ADB).Families in particular have been hit hard as the cost of basic staples such as rice, sugar, oil and chicken doubled last year. A growing number of households are so desperate for food that they are now having to forage to supplement their diets, according to a World Bank household survey earlier this year.At Vientiane’s morning market, a gold trader said that where customers used to come to buy necklaces, rings and earrings for special occasions, now all anyone wants is to sell their valuables to raise cash.”I sometimes sit all day and nobody buys my gold,” the 45-year-old told AFP last month, speaking on condition of anonymity because talking to foreign media in authoritarian, one-party Laos is risky.”My shop used to be busy but now nobody buys gold — they all come to sell it to get money.”After 15 years running his shop, the trader said he fears for the future of his business.- ‘Unsustainable’ debt – Despite three decades of consistent economic growth, Laos remains one of the poorest countries in Asia, with limited transport infrastructure and a low-skilled workforce mostly employed in agriculture. Life expectancy is just 69 years and the ADB says that nearly one in three children under five is stunted because of malnutrition — one of the highest rates globally.In recent years, the government has borrowed billions of dollars from neighbour China to fund a $6-billion high-speed railway and a series of major hydropower dams — aiming to become the “battery” of Southeast Asia.The World Bank warned in a report last week that public debt — over $13 billion, or 108 percent of GDP — was “unsustainable”. Servicing the debt is fuelling inflation by driving down the value of the kip, which lost half its value against the dollar in 2022, and nearly a fifth in the first nine months of 2024.”Given Laos’ heavy reliance on imports, the kip’s depreciation has driven up domestic consumer prices and inflation, squeezing domestic demand and slowing economic recovery,” Poh Lynn Ng, an economist with the ASEAN+3 Macroeconomic Research Office (AMRO), told AFP.Interest payments totalling $1.7 billion are due in 2024 and an average of $1.3 billion for the next three years, further eroding Laos’ foreign exchange reserves.AFP contacted the Laotian finance ministry for comment, but did not receive a response.- Response ‘too slow’ – The Bank of Lao PDR has raised interest rates and in August, the government launched a plan aiming to bring inflation below 20 percent by December.But Vivat Kittiphongkosol of the Joint Development Bank Laos said the government had been “too slow” to react as problems unfolded.”To kill this economic problem, you cannot utilise a single transaction and expect it to solve everything. You need to do a lot of things,” he told AFP.The World Bank says the government has brought some stability to its finances, but mainly through debt deferrals and limiting spending on health, education and welfare.Alex Kremer, the World Bank Country Manager for Laos, warned these austerity measures would have damaging long-term consequences.”Continued underinvestment in human capital will damage the country’s long-term productivity and its future ability to compete in regional markets,” he said.Instead, the World Bank has urged the government to boost revenue by cutting tax breaks — and also to try to restructure its debt.Though small, Laos is too important to Beijing to be allowed to fail, JDB’s Vivat said, both politically and as a key leg in the Belt and Road Initiative route that aims to connect southwest China ultimately to Singapore. A Chinese foreign ministry spokesman told AFP Beijing was doing “all it can to help Laos ease its debt burden”. But Laotians can expect more pain in the short term, with the ADB predicting inflation will stay above 20 percent until the end of next year at least.

Chinese President Xi Jinping on Saturday called for Asia-Pacific economies to “unite and cooperate” in the face of mounting “protectionism,” at a summit in Peru.Speaking to Asia-Pacific Economic Cooperation (APEC) leaders hours before he is due to hold talks with US counterpart Joe Biden, Xi pointed to “challenges such as geopolitics, unilateralism and rising protectionism.””We must unite and cooperate,” he added, in remarks published by Chinese state broadcaster CCTV.Xi’s planned meeting with Biden comes two months before Republican President-elect Donald Trump — who engaged in an escalating tariffs war with Beijing during his first term in office — returns to the White House in January.On the campaign trail this time, Trump has vowed a series of protectionist trade policies including across-the-board tariffs on all imports and especially high levies on China.On Saturday, Xi urged APEC members to stand firm on multilateralism and open economies while pushing for regional integration.He nodded to efforts in creating an Asia-Pacific free trade area — which has been in the works for years — and said that Beijing is willing to negotiate trade agreements in the digital and green sectors.Xi, whose country will host APEC in 2026, also called for greater cooperation in frontier fields like artificial intelligence and quantum information.On Friday, Xi told the APEC CEO Summit that attempts to reduce global economic interdependence was “nothing but backpedaling.”China, the world’s second biggest economy, has been grappling with challenges ranging from a prolonged housing crisis to sluggish consumption and local government debt.The country is targeting annual growth of around five percent this year, but many experts consider this ambitious given the challenges its economy is facing.

Global stock markets ended the week on a sour note Friday as traders mulled Federal Reserve Chair Jerome Powell’s comments that the US central bank was not on a preset path to cut interest rates. After Powell indicated the Fed was in no hurry to cut rates as it monitors inflation’s downward trajectory, Wall Street turned red, with all three major indices closing lower.”Certainly Powell’s speech has triggered some skepticism about the path of rates, with potentially December being a skip instead of another cut,” Edward Jones senior investment strategist Angelo Kourkafas told AFP.”But we do have another inflation and jobs report before that, so there is still a good sense we might see another rate cut in December,” he added.Leading the way down were a clutch of vaccine-makers’ stocks after US President-elect Donald Trump indicated he would appoint vaccine skeptic Robert F. Kennedy Jr. as his health secretary.Tokyo ended the day just in the green, with other major Asian markets stalling.In Europe, London was off just 0.1 percent, digesting disappointing growth data. Frankfurt and Paris also ended in the red to round off a painful week fueled by worries over another disruptive China-US trade war under Trump.Disappointing US retail sales in October did not help overall sentiment as oil prices also drifted down.- No hurry to cut -In a speech Thursday, Powell said that “the economy is not sending any signals that we need to be in a hurry to lower rates.”While the US central bank is expected to cut interest rates again next month, investors are scaling back their bets on how many cuts will be made next year.Investors are worried tax cuts and tariffs planned by Trump could reignite inflation.”The (Trump) administration’s renewed focus on tariffs could weigh heavily on currencies of trade-exposed economies, particularly those in Asia and the eurozone,” said Charu Chanana, chief investment strategist at Saxo Markets.European markets stuttered as the European Commission predicted economic growth would pick up slightly and inflation would keep falling in the eurozone next year, but warned of growing risks linked to geopolitical tensions.In Asia, Shanghai shed 1.5 percent but Tokyo rose despite data showing a slowdown in Japanese economic growth.China’s retail sales beat expectations, expanding 4.8 percent year-on-year in October, according to data published Friday, lifting hopes for the world’s number two economy. It was the best performance since February.The figures provided optimism that the country’s consumers are becoming more confident and follow a slew of measures out of Beijing in recent weeks aimed at kickstarting growth.In the cryptocurrency markets, Bitcoin clambered back above $90,000, two days after striking a record high of $93,462.Observers have predicted it may soon break the $100,000 mark after Trump’s pro-crypto comments during his election campaign.- Key figures around 2130 GMT -New York – Dow: DOWN 0.7 percent at 43,444.99 points (close)New York – S&P 500: DOWN 1.3 percent at 5,870.62 (close)New York – Nasdaq Composite: DOWN 2.2 percent at 18,680.12 (close)London – FTSE 100: DOWN 0.1 percent at 8,063.61 (close) Paris – CAC 40: DOWN 0.6 percent at 7,269.63 (close)Frankfurt – DAX: DOWN 0.3 percent at 19,210.81 (close)Tokyo – Nikkei 225: UP 0.3 percent at 38,642.91 (close)Hong Kong – Hang Seng Index: DOWN 0.1 percent at 19,426.34 (close)Shanghai – Composite: DOWN 1.5 percent at 3,330. 73 (close)Euro/dollar: UP at $1.0536 from $1.0524Pound/dollar: DOWN at $1.2611 from $1.2662Dollar/yen: DOWN at 154.32 yen from 156.28 yen on ThursdayEuro/pound: UP at 83.52 pence from 83.11 penceWest Texas Intermediate: DOWN 2.5 percent at $67.02 per barrelBrent North Sea Crude: DOWN 2.1 percent at $71.04 per barrel

Japan’s growth slowed in the third quarter after warnings of a major earthquake hit activity, official data showed Friday, as Prime Minister Shigeru Ishiba seeks to jumpstart the world’s fourth-largest economy.A “megaquake” alert in August and one of the fiercest typhoons in decades resulted in gross domestic product (GDP) expanding just 0.2 percent between July and September from the previous quarter, according to preliminary government data.The data met market expectations, but marked a slowdown from a revised 0.5 percent in the previous three months. On an annualised basis, GDP grew 0.9 percent, much slower than the revised 2.2 percent growth in April-June.The government is expecting a “gradual recovery” of the economy — beset for decades by stagnation and harmful deflation — chief cabinet secretary Yoshimasa Hayashi said on Friday.”Our country is at an important crossroads as it’s about to transition into a growth-based economy driven by wage hikes and investment,” he told a regular briefing.”To realise that, we will implement all possible economic and fiscal policies, including a package currently under consideration.”Ishiba kept his job in a parliamentary vote on Monday, despite last month leading the ruling coalition to its worst general election result in 15 years.The 67-year-old has unveiled plans for the government to support the AI and semiconductor sectors with more than 10 trillion yen ($64 billion) by 2030.He also hopes to win over opposition parties this month to pass a draft supplementary budget for a new stimulus package — reportedly to include cash handouts for low-income households and families.Higher spending on cars, as production resumed after disruption related to a domestic testing scandal, helped boost output during the quarter, analysts said.Wage hikes and temporary income tax cuts were also positive factors.But this was tempered by Typhoon Shanshan and the “megaquake” alert, issued — and later lifted — by the weather agency in August for the first time under a new warning system.This prompted consumers to stock up on emergency supplies, leading to shortages of rice in supermarkets, while thousands cancelled hotel bookings in one of Japan’s biggest holiday periods.Factory production was also hit when Typhoon Shanshan hit in the same month, forcing the cancellation of trains and flights.Stefan Angrick, Moody’s Analytics economist, called the challenges facing Japan “substantial”, especially with Donald Trump’s return as US president presaging a “tumultuous” time for global trade.”Wage growth is improving but is not yet strong enough to keep up with inflation, stretching household finances. Weak external demand and domestic production issues will weigh down exports,” Angrick said.A further slide in the yen against the dollar might prompt the Bank of Japan to raise interest rates before year’s end despite the poor run of data, he added.jug-tmo-kaf-stu/tym

China’s retail sales last month grew at their fastest clip since the start of the year, official figures showed Friday, an encouraging sign for Beijing as it looks to boost sluggish consumption.Officials have since late September unveiled a slew of measures including interest rate cuts and debt swaps intended to boost activity in the world’s second-largest economy, which has struggled to regain momentum since the pandemic.Among the woes facing policymakers are slumping domestic consumption resulting in deflationary pressure, a property sector bust and geopolitically fraught trade disputes.Retail sales expanded 4.8 percent on-year in October, the National Bureau of Statistics (NBS) said, speeding up from the 3.2 percent in September.The reading also significantly outperformed the 3.8 percent forecast in a Bloomberg survey of analysts and represents the best reading since February.Figures also showed the national urban unemployment rate fell slightly to five percent from 5.1 percent in September.However, industrial production growth edged down to 5.3 percent in October, the NBS figures showed, from 5.4 percent the previous month.The NBS said in a statement that in October “positive factors accumulated and increased and the national economy was stable, with progress and growth”.Beijing is pushing for an official national growth target this year of around five percent, a goal most economists believe it will narrowly miss.But recent weeks have seen officials announce their most aggressive measures in years in a bid to breathe fresh life into the economy.The new policies have included a debt swap programme to ease the burden on local governments, mortgage rate cuts and the elimination of certain restrictions on home purchases.”The economy stabilised in October because of the policy shift in late September,” wrote Zhang Zhiwei, President and Chief Economist of Pinpoint Asset Management, in a note.But Zhang warned that the “property sector has not turned around”.The market is now turning its attention to the new year, with prospects of an intensified trade war under US president-elect Donald Trump, Zhang added.”The key question is how much fiscal stimulus China will run to counter potential export slowdown.”

Japan’s growth slowed in the third quarter, official data showed Friday, as Prime Minister Shigeru Ishiba seeks to jumpstart the world’s fourth-largest economy.One of the fiercest typhoons to hit Japan in decades and a government “megaquake” warning weighed on factory production and other economic activity this summer.That dragged on gross domestic product (GDP) and the country saw growth of 0.2 percent between July and September, according to a preliminary reading by the Cabinet Office.The data met market expectations, but marked a slowdown from a revised 0.5 percent in the previous three months. Compared with the same period a year earlier GDP grew 0.9 percent, much slower than the downwardly revised 2.2 percent in April-June.The government is expecting a “gradual recovery” of the economy — beset for decades by stagnation and harmful deflation — chief cabinet secretary Yoshimasa Hayashi said on Friday.”Our country is at an important crossroads as it’s about to transition into a growth-based economy driven by wage hikes and investment,” he told a regular briefing.”To realise that, we will implement all possible economic and fiscal policies, including a package currently under consideration.”Ishiba kept his job in a parliamentary vote on Monday, despite last month leading the ruling coalition to its worst general election result in 15 years.The 67-year-old has unveiled plans for the government to support the AI and semiconductor sectors with more than 10 trillion yen ($64 billion) by 2030.He also hopes to win over opposition parties this month to pass a draft supplementary budget for a new stimulus package — reportedly to include cash handouts for low-income households and families.Higher spending on cars, as production resumed after disruption related to a domestic testing scandal, helped boost output during the quarter, analysts said.Wage hikes and temporary income tax cuts were also positive factors.But this was tempered by Typhoon Shanshan and the “megaquake” alert — issued after a magnitude 7.1 jolt to ready people for the risk of an even bigger quake that ultimately did not occur.Factory production was also hit when Shanshan descended in late August, forcing the cancellation of trains and flights.Earlier the same month, “tourism demand was weighed down” by the megaquake alert, issued by the weather agency for the first time under a new warning system.This prompted consumers to stock up on emergency supplies, leading to shortages of rice in supermarkets, while thousands cancelled holidays during the week-long advisory.”The economy lost momentum in the third quarter and we think that GDP growth will remain around trend over the coming quarters,” Marcel Thieliant, head of Asia-Pacific at Capital Economics, said in a note on Friday.However, the Bank of Japan “will be encouraged by the strength in consumer spending and we still expect it to press ahead with another rate hike at its meeting next month”, he predicted.