KUALA LUMPUR // China’s controversial land reclamation and territorial claims in the South China Sea took centre stage at a regional security conference on Tuesday, despite Beijing’s insistence that the issue should be taken up bilaterally.
The United States and some South East Asian states have watched with growing alarm as Beijing expands tiny reefs in the South China Sea, topping some with military posts to reinforce its disputed claims over the strategic waters and fanning fears of future conflict.
“As we speak, we see no let-up on the unilateral and aggressive activities of our northern neighbour in the South China Sea,” Philippine foreign secretary Albert del Rosario told the annual security forum hosted by the 10-member Association of South East Asian Nations (Asean).
He also hit out at what he described as “massive reclamation activities” and construction by Beijing in the disputed sea which had “undermined peace, security and stability”.
Chinese foreign minister Wang Yi said on Monday that such gatherings are not “the appropriate place for discussing specific bilateral disputes,” and that doing so would “heighten confrontation”.
He reiterated China’s position that it would not bow to pressure on its land reclamation.
But despite Beijing’s protestations, Malaysia’s foreign minister said that the South China Sea disputes were “discussed extensively” at the Asean Regional Forum on Tuesday, the first day of the conference.
“We also discussed ways to address erosion of trust and confidence amongst parties following recent developments in the South China Sea, including land reclamation, as well as escalation of tension on the ground,” said Anifah Aman.
Beijing claims control over nearly all of the South China Sea, a key shipping route thought to hold rich oil and gas reserves.
Vietnam, the Philippines, Malaysia and Brunei – all Asean members – also have various claims, as does Taiwan, many of which overlap.
Beijing insists that disputes must be handled on a bilateral basis between rival claimants. Diplomats and analysts say that this stance is aimed at preventing Asean from presenting a more united front.
But delegates say that China will not be able to escape the issue during this week’s conference in Kuala Lumpur, the capital of Malaysia.
“This is not Cambodia or Laos,” said one diplomat attending the talks, referring to a 2012 foreign ministers’ meeting in which host Cambodia – China’s ally – was accused of preventing discussion of it.
Adding to the tensions, a Washington-based think tank said this week that Beijing could be preparing to build a second airstrip on an artificial island.
China is already building a 3,000-metre runway on Fiery Cross reef, which could ultimately be used for combat operations, according to the Center for Strategic and International Studies.
But Chinese foreign minister Wang rejected calls by some rival claimants and the United States to suspend the land reclamation.
“The freeze proposal may seem even-handed on the surface but it is actually unrealistic and will not work in practice,” he said.
US secretary of state John Kerry, who landed in Kuala Lumpur on Tuesday afternoon after a brief stopover in Singapore, is to meet Mr Wang on Wednesday morning on the sidelines of the forum.
* Agence France-Presse
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Mountain Classification Tour de France after Stage 8 on Saturday:
- 1. Lilian Calmejane (France / Direct Energie) 11
- 2. Fabio Aru (Italy / Astana) 10
- 3. Daniel Martin (Ireland / Quick-Step) 8
- 4. Robert Gesink (Netherlands / LottoNL) 8
- 5. Warren Barguil (France / Sunweb) 7
- 6. Chris Froome (Britain / Team Sky) 6
- 7. Guillaume Martin (France / Wanty) 6
- 8. Jan Bakelants (Belgium / AG2R) 5
- 9. Serge Pauwels (Belgium / Dimension Data) 5
- 10. Richie Porte (Australia / BMC Racing) 4
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Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
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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
The years Ramadan fell in May
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SPECS
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Engine: 8.0-litre, quad-turbo 16-cylinder
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In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
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- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
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- Senior reservoir engineer: Dh40,000 to Dh55,000
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Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
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Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Closing the loophole on sugary drinks
As The National reported last year, non-fizzy sugared drinks were not covered when the original tax was introduced in 2017. Sports drinks sold in supermarkets were found to contain, on average, 20 grams of sugar per 500ml bottle.
The non-fizzy drink AriZona Iced Tea contains 65 grams of sugar – about 16 teaspoons – per 680ml can. The average can costs about Dh6, which would rise to Dh9.
Drinks such as Starbucks Bottled Mocha Frappuccino contain 31g of sugar in 270ml, while Nescafe Mocha in a can contains 15.6g of sugar in a 240ml can.
Flavoured water, long-life fruit juice concentrates, pre-packaged sweetened coffee drinks fall under the ‘sweetened drink’ category
Not taxed:
Freshly squeezed fruit juices, ground coffee beans, tea leaves and pre-prepared flavoured milkshakes do not come under the ‘sweetened drink’ band.
What is cyberbullying?
Cyberbullying or online bullying could take many forms such as sending unkind or rude messages to someone, socially isolating people from groups, sharing embarrassing pictures of them, or spreading rumors about them.
Cyberbullying can take place on various platforms such as messages, on social media, on group chats, or games.
Parents should watch out for behavioural changes in their children.
When children are being bullied they they may be feel embarrassed and isolated, so parents should watch out for signs of signs of depression and anxiety
ESSENTIALS
The flights
Etihad (etihad.com) flies from Abu Dhabi to Mykonos, with a flight change to its partner airline Olympic Air in Athens. Return flights cost from Dh4,105 per person, including taxes.
Where to stay
The modern-art-filled Ambassador hotel (myconianambassador.gr) is 15 minutes outside Mykonos Town on a hillside 500 metres from the Platis Gialos Beach, with a bus into town every 30 minutes (a taxi costs €15 [Dh66]). The Nammos and Scorpios beach clubs are a 10- to 20-minute walk (or water-taxi ride) away. All 70 rooms have a large balcony, many with a Jacuzzi, and of the 15 suites, five have a plunge pool. There’s also a private eight-bedroom villa. Double rooms cost from €240 (Dh1,063) including breakfast, out of season, and from €595 (Dh2,636) in July/August.
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