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 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

Why are there so many territorial disputes in Asia?


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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
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
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
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
    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
    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
    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
    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
    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
    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

The biog

Favourite films: Casablanca and Lawrence of Arabia

Favourite books: Start with Why by Simon Sinek and Good to be Great by Jim Collins

Favourite dish: Grilled fish

Inspiration: Sheikh Zayed's visionary leadership taught me to embrace new challenges.

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

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  1. Ensure decoration and styling – and portal photography – quality is high to achieve maximum rates.
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The winners of each semi will then meet at Porto’s Dragao stadium on Sunday, with the losing semi-finalists contesting a third-place play-off in Guimaraes earlier that day.

Qualifying for the final stage was via League A of the inaugural Nations League, in which the top 12 European countries according to Uefa's co-efficient seeding system were divided into four groups, the teams playing each other twice between September and November. Portugal, who finished above Italy and Poland, successfully bid to host the finals.

THE 12 BREAKAWAY CLUBS

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Rating: 4.5/5

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.”

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Yadoo’s House Restaurant & Cafe

For the karak and Yoodo's house platter with includes eggs, balaleet, khamir and chebab bread.

Golden Dallah

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Al Mrzab Restaurant

For the shrimp murabian and Kuwaiti options including Kuwaiti machboos with kebab and spicy sauce.

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Price, base / as tested: Dhxxx
Engine: 5.7L V8
Transmission: Eight-speed automatic
Power: 395hp @ 5,600rpm
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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

The biog

Name: Dhabia Khalifa AlQubaisi

Age: 23

How she spends spare time: Playing with cats at the clinic and feeding them

Inspiration: My father. He’s a hard working man who has been through a lot to provide us with everything we need

Favourite book: Attitude, emotions and the psychology of cats by Dr Nicholes Dodman

Favourit film: 101 Dalmatians - it remind me of my childhood and began my love of dogs 

Word of advice: By being patient, good things will come and by staying positive you’ll have the will to continue to love what you're doing

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Antonio Muñoz Molina

Translated from the Spanish by Camilo A. Ramirez

Tuskar Rock Press (pp. 310)

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Tottenham Hotspur 3 (Son 1', Kane 8' & 16') West Ham United 3 (Balbuena 82', Sanchez og 85', Lanzini 90' 4)

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Men’s singles 
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Son Wan-ho (Kor), Lee Chong Wei (Mas), Ng Long Angus (HK), Chen Long (Chn)
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Price: From Dh1,700,000

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WHAT IS GRAPHENE?

It was discovered in 2004, when Russian-born Manchester scientists Andrei Geim and Kostya Novoselov were experimenting with sticky tape and graphite, the material used as lead in pencils.

Placing the tape on the graphite and peeling it, they managed to rip off thin flakes of carbon. In the beginning they got flakes consisting of many layers of graphene. But when they repeated the process many times, the flakes got thinner.

By separating the graphite fragments repeatedly, they managed to create flakes that were just one atom thick. Their experiment led to graphene being isolated for the very first time.

In 2010, Geim and Novoselov were awarded the Nobel Prize for Physics. 

The specs

Engine: 0.8-litre four cylinder

Power: 70bhp

Torque: 66Nm

Transmission: four-speed manual

Price: $1,075 new in 1967, now valued at $40,000

On sale: Models from 1966 to 1970

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