Taiwan's premier resigns



TAIPEI, Taiwan // Taiwan's premier resigned today amid strong criticism of the government's slow response to the most devastating storm to hit the island in 50 years, and the president immediately named a senior official from the ruling party to replace him. Liu Chao-shiuan said he was leaving office because his Cabinet had completed the initial stage of rehabilitation work after Typhoon Morakot slammed into the island August 8-9 and left an estimated 670 people dead. "I have completed my duties at this phase," said Mr Liu, who has held his post since Ma Ying-jeou became president in May 2008. Mr Liu's move sets the stage for the entire Cabinet to resign. Mr Liu said that would happen on Thursday. Mr Ma named Nationalist Party secretary general Wu Den-yih, 61, to replace Mr Liu. Mr Wu is a veteran lawmaker with a reputation as a skilled political manoeuverer. He previously served eight years as mayor of Kaohsiung, Taiwan's second largest city, and before that was chief executive of Nantou county, also in the south of the island. Mr Wu's nomination does not require approval from Taiwan's legislature. Mr Wu said he will name new Cabinet members in a few days after discussing the line-up with Mr Ma. "We will unite and strive with our best efforts to shoulder the difficult task ahead," he told reporters. Another former lawmaker Chu Li-lun, 48, was named by Mr Ma as vice-premier. Mr Chu has served as chief executive of Taoyuan county in suburban Taipei since 2001. The presidential spokesman Wang Yuchi said Mr Chu, who has a background in finance and business management, could oversee the island's economic development, which has been hard hit by the global financial crisis. Typhoon Morakot, which dumped one-metre of rain in some locations, triggered massive flooding and mudslides in and around 40 villages in southern Taiwan. Critics blamed the heavy casualties on government inefficiency, saying authorities should have ordered residents in the area to evacuate their homes long before the storm hit. The government has also come under criticism for rejecting initial offers of foreign aid and for failing to immediately deploy troops to help with rescue operations.

*AP

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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.”

Ads on social media can 'normalise' drugs

A UK report on youth social media habits commissioned by advocacy group Volteface found a quarter of young people were exposed to illegal drug dealers on social media.

The poll of 2,006 people aged 16-24 assessed their exposure to drug dealers online in a nationally representative survey.

Of those admitting to seeing drugs for sale online, 56 per cent saw them advertised on Snapchat, 55 per cent on Instagram and 47 per cent on Facebook.

Cannabis was the drug most pushed by online dealers, with 63 per cent of survey respondents claiming to have seen adverts on social media for the drug, followed by cocaine (26 per cent) and MDMA/ecstasy, with 24 per cent of people.

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COMPANY PROFILE
Name: Airev
Started: September 2023
Founder: Muhammad Khalid
Based: Abu Dhabi
Sector: Generative AI
Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47
 
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