Singapore's Prime Minister Lee Hsien Loong speaks during a press conference after the resignation of two senior lawmakers, at the Istana in Singapore, on July 17. Reuters
Singapore's Prime Minister Lee Hsien Loong speaks during a press conference after the resignation of two senior lawmakers, at the Istana in Singapore, on July 17. Reuters
Singapore's Prime Minister Lee Hsien Loong speaks during a press conference after the resignation of two senior lawmakers, at the Istana in Singapore, on July 17. Reuters
Singapore's Prime Minister Lee Hsien Loong speaks during a press conference after the resignation of two senior lawmakers, at the Istana in Singapore, on July 17. Reuters


Singapore is right to take recent scandals seriously


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July 19, 2023

“Only the paranoid survive.” Singapore’s Prime Minister Lee Hsien Loong is known for often quoting the dictum of Intel’s founder Andy Grove. But after a recent trio of scandals, he could be forgiven for feeling particularly wary and mistrustful.

Last week, Transport Minister S Iswaran was arrested, had his passport impounded, and was told to take a leave of absence – the first time a cabinet member had been investigated over graft allegations since 1986. On Monday, the Speaker of the city-state’s parliament, Tan Chuan-Jin, and a fellow lawmaker from the long-ruling People’s Action Party (PAP) resigned over an extramarital affair. And only a couple of weeks ago, a government review had to be carried out after the country’s opposition asked if Foreign Minister Vivian Balakrishnan and Law and Home Affairs Minister K Shanmugam were underpaying for the government-owned colonial-era bungalows they were renting.

In the case of the last two, no evidence of wrongdoing was found. Mr Iswaran remains innocent until proven guilty. And there is no illegality in individuals having complicated personal lives. But the confluence of stories of alleged and actual misconduct has not just damaged the immaculately technocratic image the PAP has always liked to project, with analysts warning it could negatively affect foreign investor sentiment. It has also been reported that it has sent “shockwaves” through the party – which has been in power continuously since 1959 – and could even delay Mr Lee’s plan to hand over soon to his successor, Finance Minister Lawrence Wong.

This may surprise those who observe the regularity and decorum of Singapore politics, and see these instances as mere trifles compared to the genuine scandals and ruckuses in other parliaments. In Britain, for instance, several members of the Houses of Commons and Lords went to jail over an expenses investigation just over a decade ago, while fisticuffs have broken out in so many assemblies around the world that Wikipedia has a surprisingly long entry devoted exclusively to “legislative violence”.

Singapore's then-minister for manpower Tan Chuan-Jin at the South East Asian Games in 2013. Mr Tan had to step down as Singapore's parliament speaker this week. AFP
Singapore's then-minister for manpower Tan Chuan-Jin at the South East Asian Games in 2013. Mr Tan had to step down as Singapore's parliament speaker this week. AFP
A reputation for being clean is priceless, and once the genie of corruption is out of the bottle, it can be very challenging to contain

But as successful as Singapore is – and it is looked up to as a role model by many smaller nations, particularly those that aspire to become “knowledge economies” – underneath there is a sense of fragility, and even an existential dread. One of the country’s leading intellectuals, Kishore Mahbubani, wrote in his 2015 book, Can Singapore Survive? that the “question that Singaporeans have to wrestle with [is] can we survive as an independent city-state? History is not comforting”. The country’s founding leader, Mr Lee’s father Lee Kuan Yew, once said: “When I project myself forward for 100 years for Singapore, I cannot tell you that it will exist.”

The country’s journey from “Third World to First”, as the second volume of the elder Mr Lee’s memoirs was titled, was astounding. But it was built primarily on two foundations: the grip that Mr Lee senior exerted over every aspect of Singapore; and his vehement insistence that they should aim to be the cleanest and most efficient government machine on the globe.

This is why any suggestion of abuse of power or graft is so harmful. (I should reiterate at this point that Mr Iswaran may be entirely innocent.) Prime Minister Lee only has to look at the history of some his country’s neighbours to be all too aware of the baleful effects of corruption: once it creeps in and becomes systemic, it becomes a Sisyphean task to eradicate it.

Malaysia and Indonesia, for example, remain wonderful places to live and do business. Only last Friday, Elon Musk agreed to set up a Tesla head office in Malaysia, and Indonesia broke its own records for foreign investment last year. However, both countries are having to deal with the issue of corruption.

Malaysia’s Prime Minister Anwar Ibrahim says he is cracking down hard on corruption – an issue he has campaigned on for over 20 years – while Indonesia’s President Joko Widodo has said that it is the most complicated problem his country faces. Both leaders have strong reformist, pragmatic credentials. I have no doubt they mean what they say, such a task takes time and effort.

Indonesian President Joko Widodo, second left, and Malaysian Prime Minister Anwar Ibrahim, second right, during an Asean summit in Labuan Bajo, Indonesia in May. AFP
Indonesian President Joko Widodo, second left, and Malaysian Prime Minister Anwar Ibrahim, second right, during an Asean summit in Labuan Bajo, Indonesia in May. AFP

And much effort has indeed been made in both countries towards this end. In Indonesia, for example, allegations of vote buying during elections over the years have somewhat diminished, and the US non-profit Freedom House has even praised the “impressive democratic gains” the country has made since the fall of Gen Suharto in 1998.

Yet the challenges are undeniable.

In Malaysia, no one will dispute that systemic corruption has been an issue since the 1980s. And this despite the fact that the example set at the top was impeccable. The country’s first prime minister, Tunku Abdul Rahman, nearly impoverished himself spending his own money on the party he led; the second, Tun Abdul Razak, refused to have a swimming pool built at his official residence because he thought it too extravagant; and the third, Tun Hussein Onn, had such a strong sense of propriety that the story goes that if a relative ever came to him with a proposal for a government contract, he put it straight in the bin.

All of which goes to show that a reputation for being clean is priceless, and once the genie of corruption is out of the bottle, it can be very challenging to contain. So Singapore’s government is right to take these scandals very seriously indeed, even if the reactions do strike some outsiders as a bit “paranoid” and over-the-top.

The country’s former foreign minister George Yeo once wrote: “The vulnerability of Singapore is not a new theme. Lee Kuan Yew spoke of it constantly.” For Mr Lee, he wrote, “the response is leadership, tough leadership”. Mr Yeo’s conclusion? “If that is lost, all is lost.”

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Scoreline

Chelsea 1
Azpilicueta (36')

West Ham United 1
Hernandez (73')

Our legal consultant

Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

25-MAN SQUAD

Goalkeepers: Francis Uzoho, Ikechukwu Ezenwa, Daniel Akpeyi
Defenders: Olaoluwa Aina, Abdullahi Shehu, Chidozie Awaziem, William Ekong, Leon Balogun, Kenneth Omeruo, Jamilu Collins, Semi Ajayi 
Midfielders: John Obi Mikel, Wilfred Ndidi, Oghenekaro Etebo, John Ogu
Forwards: Ahmed Musa, Victor Osimhen, Moses Simon, Henry Onyekuru, Odion Ighalo, Alexander Iwobi, Samuel Kalu, Paul Onuachu, Kelechi Iheanacho, Samuel Chukwueze 

On Standby: Theophilus Afelokhai, Bryan Idowu, Ikouwem Utin, Mikel Agu, Junior Ajayi, Valentine Ozornwafor

The smuggler

Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple. 
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.

Khouli conviction

Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.

For sale

A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.

- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico

- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000

- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950

Company Fact Box

Company name/date started: Abwaab Technologies / September 2019

Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO

Based: Amman, Jordan

Sector: Education Technology

Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed

Stage: early-stage startup 

Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.

Company profile

Date started: 2015

Founder: John Tsioris and Ioanna Angelidaki

Based: Dubai

Sector: Online grocery delivery

Staff: 200

Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends

The specs

Engine: 1.5-litre turbo

Power: 181hp

Torque: 230Nm

Transmission: 6-speed automatic

Starting price: Dh79,000

On sale: Now

THE SPECS

Engine: 1.5-litre turbocharged four-cylinder

Transmission: Constant Variable (CVT)

Power: 141bhp 

Torque: 250Nm 

Price: Dh64,500

On sale: Now

Landfill in numbers

• Landfill gas is composed of 50 per cent methane

• Methane is 28 times more harmful than Co2 in terms of global warming

• 11 million total tonnes of waste are being generated annually in Abu Dhabi

• 18,000 tonnes per year of hazardous and medical waste is produced in Abu Dhabi emirate per year

• 20,000 litres of cooking oil produced in Abu Dhabi’s cafeterias and restaurants every day is thrown away

• 50 per cent of Abu Dhabi’s waste is from construction and demolition

Dhadak 2

Director: Shazia Iqbal

Starring: Siddhant Chaturvedi, Triptii Dimri 

Rating: 1/5

If you go

The flights
There are various ways of getting to the southern Serengeti in Tanzania from the UAE. The exact route and airstrip depends on your overall trip itinerary and which camp you’re staying at. 
Flydubai flies direct from Dubai to Kilimanjaro International Airport from Dh1,350 return, including taxes; this can be followed by a short flight from Kilimanjaro to the Serengeti with Coastal Aviation from about US$700 (Dh2,500) return, including taxes. Kenya Airways, Emirates and Etihad offer flights via Nairobi or Dar es Salaam.   

LEADERBOARD
%3Cp%3E-19%20T%20Fleetwood%20(Eng)%3B%20-18%20R%20McIlroy%20(NI)%2C%20T%20Lawrence%20(SA)%3B%20-16%20J%20Smith%3B%20-15%20F%20Molinari%20(Ita)%3B%20-14%20Z%20Lombard%20(SA)%2C%20S%20Crocker%20(US)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ESelected%3A%20%3C%2Fstrong%3E-11%20A%20Meronk%20(Pol)%3B%20-10%20E%20Ferguson%20(Sco)%3B%20-8%20R%20Fox%20(NZ)%20-7%20L%20Donald%20(Eng)%3B%20-5%20T%20McKibbin%20(NI)%2C%20N%20Hoejgaard%20(Den)%3C%2Fp%3E%0A
The%20specs
%3Cp%3E%3Cstrong%3EPowertrain%3A%20%3C%2Fstrong%3ESingle%20electric%20motor%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E201hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E310Nm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESingle-speed%20auto%0D%3Cbr%3E%3Cstrong%3EBattery%3A%20%3C%2Fstrong%3E53kWh%20lithium-ion%20battery%20pack%20(GS%20base%20model)%3B%2070kWh%20battery%20pack%20(GF)%0D%3Cbr%3E%3Cstrong%3ETouring%20range%3A%20%3C%2Fstrong%3E350km%20(GS)%3B%20480km%20(GF)%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh129%2C900%20(GS)%3B%20Dh149%2C000%20(GF)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
The%20Roundup
%3Cp%3EDirector%3A%20Lee%20Sang-yong%3Cbr%3EStars%3A%20Ma%20Dong-seok%2C%20Sukku%20Son%2C%20Choi%20Gwi-hwa%3Cbr%3ERating%3A%204%2F5%3C%2Fp%3E%0A
'Brazen'

Director: Monika Mitchell

Starring: Alyssa Milano, Sam Page, Colleen Wheeler

Rating: 3/5

%E2%80%98White%20Elephant%E2%80%99
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Jesse%20V%20Johnson%3Cbr%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Michael%20Rooker%2C%20Bruce%20Willis%2C%20John%20Malkovich%2C%20Olga%20Kurylenko%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Take Me Apart

Kelela

(Warp)

The specs

Engine: 4.0-litre V8 twin-turbocharged and three electric motors

Power: Combined output 920hp

Torque: 730Nm at 4,000-7,000rpm

Transmission: 8-speed dual-clutch automatic

Fuel consumption: 11.2L/100km

On sale: Now, deliveries expected later in 2025

Price: expected to start at Dh1,432,000

French business

France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.

Updated: July 19, 2023, 8:39 AM