Protesters attend a rally near the Presidential Palace in Manila, Philippines in 2013. Seven years ago, hundreds of militants landed in Sabah, leading to deadly clashes with Malaysian security personnel. AP Photo
Protesters attend a rally near the Presidential Palace in Manila, Philippines in 2013. Seven years ago, hundreds of militants landed in Sabah, leading to deadly clashes with Malaysian security personnel. AP Photo
Protesters attend a rally near the Presidential Palace in Manila, Philippines in 2013. Seven years ago, hundreds of militants landed in Sabah, leading to deadly clashes with Malaysian security personn
Border disputes in Asia still regularly make the news. The face-offs and clashes between Indian and Chinese troops in the Himalayas since May have probably been the most high-profile, as they may have led to scores of deaths on both sides.
A war of words between China and the US over Beijing's claims in the South China Sea has also been escalating, as has the presence in the region of the two countries' navies. Analysts such as Michael Vatikiotis, author of Blood and Silk: Power and Conflict in Modern Southeast Asia, now warn that an accidental collision "could easily result in an unstoppable conflict, given the political dynamics in both Beijing and Washington".
Most recently an ancient spat between the Philippines and Malaysia was revived by Teodoro Locsin Jr. The Philippine Foreign Secretary wrote on Twitter: “Sabah is not in Malaysia if you want to have anything to do with the Philippines." This reference to the Malaysian state on the north-east of the island of Borneo prompted his Malaysian counterpart, Hishammuddin Hussein, to respond: “This is an irresponsible statement that affects bilateral ties. Sabah is, and will always be, part of Malaysia.” Mr Locsin then said he would be summoning the Malaysian ambassador for a telling off and continued to make further provocative remarks.
Philippine President Rodrigo Rodrigo Duterte, left, chats with Foreign Affairs Secretary Teodoro Locsin Jr, right, who recently made controversial remarks about his country's rights over the Malaysian state of Sabah. Presidential Photo
Now, this may seem an arcane and somewhat baffling dispute. But its history is worth explaining briefly because some of the key points are also to be found in many other Asia territorial arguments.
Firstly, this goes back to colonial and even pre-colonial times when today’s states either did not exist or did so in very different forms. In the 19th century the sultanate of Sulu stretched from the western Philippines to a part of what is now the Malaysian state of Sabah. This latter territory was taken over by the British North Borneo Company in 1878, a transaction which the Philippines, as the successor state to the sultanate, deems a lease, whereas the Malaysian interpretation of the relevant document is that it was a cession.
Either way, the wording translated into English makes it clear that this was to be “in perpetuity”, and a UN mission found that a majority of the local inhabitants of what by then was a British colony were in favour of joining the new country of Malaysia when it was established in 1963. But the Philippines has never accepted this, initially breaking off diplomatic ties with its new neighbour and in 1967 planning an attempt – subsequently aborted – to destabilise and take over Sabah.
Ultra-nationalist Azerbaijani and Turkish people shouts slogans against Armenia in Istanbul last month. Azerbaijan and Armenia have been locked in conflict over Nagorno-Karabakh, a region of Azerbaijan currently under the control of forces backed by Armenia since a war there ended in 1994. EPA
Relations between the two countries recovered and have been warm for decades. As President Rodrigo Duterte’s spokesman Harry Roque put it last week: “This matter should not affect our ongoing bilateral ties. It has not affected it in recent years, and we will continue to have healthy bilateral relations with Malaysia despite the issue of Sabah.”
Mr Roque was attempting to pour oil on the waters troubled by Mr Locsin. At the same time, however, he still reasserted the claim unequivocally, and no one serious about power in the Philippines will ever give it up.
It would be easy to consider the issue either irrelevant or ridiculous, with at least five men claiming to rule a sultanate that no longer exists. But it remains a tool of easy populist rabble-rousing in the Philippines. In 2013, this led to a group of over 200 militants calling themselves the "Royal Security Forces of the Sultanate of Sulu and North Borneo" landing in the district of Lahad Datu, Sabah, and to a confrontation in which nearly 60 of the invaders and 10 Malaysian security personnel were killed.
A Japanese P-3C plane is shown flying over the Senkaku Islands, the subject of a dispute between Japan and China. Jiji Press
For if Asia is to remain the growth engine of the world, it cannot waste any more time being divided against itself
Many other instances of contested lands or islands in Asia are similarly mired in histories that are themselves disputed, such as China's and Japan's claims to the Diaoyu / Senkaku islands, Japan and Russia over the Kuril islands, between Armenians and Azerbaijanis in the Nagorno-Karabakh region, and as mentioned above, between China and India in Arunachal Pradesh and Ladakh. Although efforts to resolve them have been made in the past, they are now mostly intractable, since – as in the Philippines – the political cost to any leader who attempts to compromise or give any ground is just too high.
There is a way out, which India's Prime Minister Narendra Modi hinted at in a speech he made in Ladakh last month. "Friends," he said, "the age of expansionism is over, this is the era of development."
Joint development in disputed areas is a way to park disputes and benefit both parties. This is what Malaysia and Thailand have long done in over 7,000 square kilometres of the Gulf of Thailand, where they exploit the seabed in partnership despite their overlapping claims – which they have not given up. This has been so successful that the dispute itself has become a non-story.
India's Prime Minister Narendra Modi visits the Himalayan region of Ladakh on July 3, 2020. Reuters
Army officials escort Mr Modi after his arrival in Leh, the capital of Ladakh. EPA
Prime Minister Narendra Modi looks at a map during his visit to Ladakh, where 20 Indian army personnel, including a colonel, were killed in clashes with Chinese troops in the Galwan Valley in June 2020. EPA
Narendra Modi and top Indian army officials listen to a briefing in Leh. EPA
Indian soldiers await the arrival of Prime Minister Narendra Modi in Ladakh, India. Reuters
Mr Modi was scheduled to visit Army, Air Force and Indo-Tibetan Border Police personnel during is visit. EPA
Both countries are members of the Association of Southeast Asian Nations, and their conduct is true to the association's unofficial motto of "agreeing to disagree without being disagreeable". But this is an approach relevant across the continent.
It may well be true that some of the disagreements have their origins in the actions of imperialists from far away who had insufficient knowledge of or care for the lands whose boundaries they were delineating. But it is not much use blaming Henry McMahon, who proposed the line of demarcation between Tibet and India at the Simla Convention in 1914, today. McMahon is long gone. The dispute remains, and it is for current leaders to deal with – and they must.
For if Asia is to remain the growth engine of the world, it cannot waste any more time being divided against itself. There are some arguments that can never be resolved. Recognising that and finding a way to move on could be the answer to quite a lot of problems.
Ladakh – Last bastion of Tibetan Buddhist culture
Sholto Byrnes is a commentator and consultant in Kuala Lumpur and a corresponding fellow of the Erasmus Forum
PROVISIONAL FIXTURE LIST
Premier League
Wednesday, June 17 (Kick-offs uae times) Aston Villa v Sheffield United 9pm; Manchester City v Arsenal 11pm
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Sunday, June 21 Newcastle v Sheffield United 2pm; Aston Villa v Chelsea 7.30pm; Everton v Liverpool 10pm
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Thursday July 2 Arsenal vs Norwich 9pm; Manchester City vs Liverpool 11.15pm
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Stormy seas
Weather warnings show that Storm Eunice is soon to make landfall. The videographer and I are scrambling to return to the other side of the Channel before it does. As we race to the port of Calais, I see miles of wire fencing topped with barbed wire all around it, a silent ‘Keep Out’ sign for those who, unlike us, aren’t lucky enough to have the right to move freely and safely across borders.
We set sail on a giant ferry whose length dwarfs the dinghies migrants use by nearly a 100 times. Despite the windy rain lashing at the portholes, we arrive safely in Dover; grateful but acutely aware of the miserable conditions the people we’ve left behind are in and of the privilege of choice.
Emirates and Etihad fly to Johannesburg or Cape Town daily. Flights cost from about Dh3,325, with a flying time of 8hours and 15 minutes. From there, fly South African Airlines or Air Namibia to Namibia’s Windhoek Hosea Kutako International Airport, for about Dh850. Flying time is 2 hours.
The stay
Wilderness Little Kulala offers stays from £460 (Dh2,135) per person, per night. It is one of seven Wilderness Safari lodges in Namibia; www.wilderness-safaris.com.
Skeleton Coast Safaris’ four-day adventure involves joining a very small group in a private plane, flying to some of the remotest areas in the world, with each night spent at a different camp. It costs from US$8,335.30 (Dh30,611); www.skeletoncoastsafaris.com
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
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.”
iPhone XS
With a 5.8-inch screen, it will be an advance version of the iPhone X. It will be dual sim and comes with better battery life, a faster processor and better camera. A new gold colour will be available. Price: Dh4,229
iPhone XS Max
It is expected to be a grander version of the iPhone X with a 6.5-inch screen; an inch bigger than the screen of the iPhone 8 Plus. Price: Dh4,649
iPhone XR
A low-cost version of the iPhone X with a 6.1-inch screen, it is expected to attract mass attention. According to industry experts, it is likely to have aluminium edges instead of stainless steel. Price: Dh3,179
Apple Watch Series 4
More comprehensive health device with edge-to-edge displays that are more than 30 per cent bigger than displays on current models.