Why a commodities boom is not lifting Indonesia's economy
It offered Ms Sri more than just a job; one of her colleagues became her husband, and with their combined income they were able to build a family home among the padi fields. But by 2025, the company's fortunes had reversed. Burdened by debt, an influx of cheaper Chinese goods and stiff global competition, Sritex shut down its operations on March 1.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
29 minutes ago
- Business Times
UK government takes over another steelmaker as industry suffers
THE UK government said on Thursday that it would take temporary ownership of the country's third-largest steelmaker, putting its 1,450 jobs at risk. The nationalisation of Speciality Steel comes four months after the government rescued Chinese-owned British Steel, to avert the shutdown of the country's last factory that can make steel from scratch. Speciality Steel is part of Liberty Steel, controlled by Indian-British businessman Sanjeev Gupta. An independent administrator has been named to seek a buyer for Speciality and save its jobs. 'We remain committed to a bright and sustainable future for steelmaking and steelmaking jobs in the UK,' a government spokesman said in a statement to AFP. Liberty Steel denounced an 'irrational' decision after a court rejected its plan to maintain operations at Speciality, whose debt pile has mounted to hundreds of millions of pounds. UK steel production, as in much of the world, has been buffeted by over-supply widely blamed on Chinese producers that has pushed down prices. President Donald Trump's imposition of new tariffs on US steel imports has also hit the sector. Britain has become a relatively small producer at just 5.6 million tonnes annually, with the sector ensuring around 37,000 jobs. AFP
Business Times
29 minutes ago
- Business Times
Inside China's AI advantage: Lessons for Singapore and Asia companies
AS THE global race to harness the power of artificial intelligence (AI) intensifies, China is emerging as a front-runner – not only in terms of research output and patents, but more importantly, in commercial deployment and scalable enterprise applications. While much of the international discourse focuses on US breakthroughs in foundational models and chip development, the Chinese approach to integrating AI across business operations offers invaluable lessons for firms in Singapore and across Asia. This article explores four critical questions: How do Chinese firms embed AI into operations? What role do corporate leaders play in driving transformation? Why is China's AI deployment faster and more scalable – and can it be replicated? Finally, what strategic insights can Singapore firms and Asia-based multinational corporations (MNCs) take away? Integrating AI across operations The power of AI lies in its ability to re-engineer and optimise workflows, which is achieved by embedding the technology into core processes to drive continuous innovation. In China, companies are moving beyond experimentation to operationalise AI at scale. It is now integrated across the entire business value chain, from customer interaction to back-end operations. On the customer-facing side, companies deploy AI to enhance user experience through conversational bots, personalised recommendations, and intelligent search. For example, Alibaba's virtual assistant Alime manages over 10 million customer queries daily across its e-commerce platforms, delivering speed, efficiency and personalisation at scale. Alime, the virtual assistant by Alibaba, manages over 10 million customer queries daily across its e-commerce platforms. PHOTO: REUTERS On the operations front, AI is transforming logistics, human resources, and research and development. SF Express, one of China's largest courier services, uses AI to forecast parcel volumes and plan delivery routes by analysing weather patterns, geography and historical data. This not only improves delivery precision but also optimises workforce deployment. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up However, treating AI as a superficial add-on cannot unlock its transformative potential. To deliver sustained business value, business models and organisational practices must evolve in step with AI capabilities, ensuring strong alignment between technology and management for long-term growth. For example, leveraging its 'AI-Powered Data Cloud Integration' vision and Smart Vision platform, Digital China has introduced a range of AI agents – such as smart talent assistants, super employees, and smart sales assistants – integrated directly into core business processes, providing powerful support to teams across both business and functional departments. The strategic role of CEOs and boards Successful AI transformation is not just about technological capability; it also hinges on leadership. In Chinese firms, the CEO and board often play a decisive role in setting AI strategy and ambition. The reason is simple: True AI transformation demands a full-scale re-engineering of processes, systems and culture. Digital China exemplifies this leadership-driven model. Its CEO and board are actively engaged in AI strategy formulation, target setting and incentive alignment. Their involvement is far from symbolic; they understand that AI transformation cannot be outsourced. Grassroots buy-in is also crucial. Employees must see tangible benefits in their work, whether through increased efficiency, smarter decision-making or breakthrough innovations by leveraging AI. Only when people believe in the AI vision will adoption take hold. From a process perspective, organisations must be prepared. This means investing in cloud structure to instantaneously collect high-quality proprietary data, fostering AI-relevant skills, and cultivating the right mindsets across the workforce. Boards, in turn, must broaden their oversight to include emerging issues such as data governance, ethical use of algorithms and regulatory risk. Baidu, for instance, has established an AI ethics and safety committee under its board, to ensure responsible AI deployment and compliance with evolving standards. Baidu has established an AI ethics and safety committee under its board, to ensure responsible AI deployment and compliance with evolving standards. PHOTO: REUTERS Speed and scalability China's rapid and scalable AI adoption is the result of systemic advantages. These include a vast and digitally connected domestic market, deep engineering talent pools, and relatively flexible regulatory environments that permit AI experimentation at scale. However, one of the most significant drivers is China's unparalleled access to data. In the AI age, three pillars matter: computing power, algorithms and data. While the US still leads in hardware and model development, China's advantage becomes apparent in the application phase. Here, the focus shifts from enlarging graphics processing unit capacity to turning granular, sensitive and irreplaceable data into actionable business assets. AI's true value lies in integrating data assets to redesign workflows, cut costs and launch new business models. Access to high-quality and context-rich data offers a decisive edge for building competitive and adaptive organisations. As Internet data gradually dries up, the core training materials for large-scale models will shift to industry-specific and enterprise-owned knowledge and data. China, with its integrated digital infrastructure, broad manufacturing sectors and willingness to innovate, has unique advantages here. By leveraging these industrial and data strengths, Chinese enterprises can integrate AI into business processes, making it a powerful driver of innovation and transformation. Ultimately, AI's value to enterprises lies in the efficient orchestration of data assets and the innovative re-engineering of processes. Can this be replicated elsewhere? Partially. While the underlying logic – data-centric process innovation – is universal, the speed and scale of Chinese AI adoption are enabled by institutional and cultural factors. Other countries must adapt the principles to their local governance structures, regulatory frameworks and industry ecosystems. Strategic takeaways China's AI trajectory reveals that successful transformation demands leadership vision, talent pipelines, high-quality data, agile execution, and systemic integration of technology into business models and operations. For Singapore firms and Asia-based MNCs, the key is to adapt its core principles in a locally relevant way. Empower leadership at every level: AI transformation is a strategic shift. Successful deployment requires alignment across multiple organisational parameters, such as processes, talent, data infrastructure, and organisational incentives. Top leaders and boards' commitment is essential. Foster experimentation: Chinese enterprises often focus on speed rather than perfection. For example, ByteDance operates on a 'launch fast and optimise continuously' model, with product and algorithm teams able to conduct dozens of iterations daily. This culture of rapid prototyping and real-time feedback integration accelerates the learning and adaptation process. Similarly, Digital China drives AI adoption through numerous point innovations embedded in business processes, enabling fast decision-making support and continuous cross-enterprise management optimisation. Singapore firms and MNCs can benefit by adopting similar agile approaches, particularly in fast-moving sectors such as retail, e-commerce and logistics. Regional firms, including Shopee, are already leveraging global and local AI capabilities. Shopee recently partnered with OpenAI's 'Operator' to streamline customer service, while its proprietary 'Shop AI Assistant' helps onboard and support sellers on the platform. Build robust data capabilities: Compared to consumer-facing AI, enterprise AI in Asia remains at a relatively early stage. To scale adoption and unlock long-term value, companies must redesign their processes for AI-native operation. This involves moving beyond patchwork AI solutions to full-fledged cloud-and-AI architectures capable of end-to-end automation. Regional firms, including Shopee, are already leveraging global and local AI capabilities. PHOTO: ST At its core, sustainable business growth depends on the interplay of business models, management approaches and technological paradigms. The collaborative symbiosis of AI agents and human employees will unlock boundless possibilities for enterprises. This requires upgrading legacy IT systems to integrated data platforms; accelerating R&D into AI agents capable of supporting complex, dynamic workflows; abandoning rigid hierarchies to embrace human-machine collaboration; and enhancing the AI literacy of the entire organisation. Ultimately, AI is more than making existing processes faster or cheaper; it's about making them smarter and more innovative. Firms that can reimagine their operations through AI will not only survive technological disruption – they will drive it. As the global economy pivots toward AI-driven value creation, those who can act decisively – anchoring AI in strategy, not just IT – will define the next generation of market leaders. Guoli Chen is professor of strategy at Insead and Guo Wei is chairman of Digital China
Straits Times
2 hours ago
- Straits Times
Chile's Boric taps close ally Grau as finance minister after Marcel's surprise exit
Sign up now: Get ST's newsletters delivered to your inbox FILE PHOTO: Chile's Finance Minister Mario Marcel looks on during a session at the Congress in Valparaiso, Chile, November 21, 2024. REUTERS/Rodrigo Garrido/File Photo SANTIAGO - Chile's finance minister Mario Marcel, considered a stabilizing and pragmatic figure in President Gabriel Boric's administration, resigned on Thursday amid a wider cabinet reshuffle. In a ceremony at the presidential palace in Santiago, Boric said Marcel was resigning due to personal reasons and replaced him with Economy Minister Nicolas Grau. "Our government is going to keep advancing with fiscal responsibility," Boric said, adding that his goal was to provide long-term stability to the country. "In this change, there's also continuity." A close political ally of Boric, Grau was the president of Chile's Federation of University Students from 2005 to 2006 during a time of widespread student protests. He later earned a master's degree in economy from the University of Chile and a doctorate in economy from the University of Pennsylvania. He then worked in academia and politics, including Boric's 2021 presidential campaign. As economy minister, Grau's purview included foreign investment and lithium contracts, an area he has faced criticism for due to delays in securing projects like a planned lithium cathode plant by Chinese metals group Tsingshan and automaker BYD. Grau, who resigned as economy minister on Thursday to take his new position, will be replaced by Alvaro Garcia. Boric also announced he was accepting the resignation of Esteban Valenzuela, the country's agricultural minister and replaced him with Maria Ignacia Fernandez. Both Grau and Marcel had served as ministers since the beginning of Boric's administration in 2022, surviving a number of cabinet reshuffles. Top stories Swipe. Select. Stay informed. Singapore Courier tip-off leads to HSA seizure of Kpods, drugs in Tampines and Grange Road raids Singapore Large flocks of parakeets a spectacle in Choa Chu Kang, but they may affect native species Singapore Singapore students shine in Paris with record medal haul at history Olympiad Singapore Teacher charged over allegedly making student undress in video call, sending her his nude photo Singapore Painting by police NSF presented to Shanmugam to commemorate 50 years of Police National Service Business 8 more active ETFs by JPMorgan Asset Management available to Singapore investors Business Changi Travel Services cuts 30 staff amid market shifts Asia HK water scandal: How distrust over China bottled water sparked a probe into govt contract After a polarizing election campaign during which Boric promised to upend Chile's free-market economic system, markets and investors breathed a sigh of relief when he picked Marcel, who was then serving as the head of the central bank. The economy quickly became a focal point of Boric's government as high inflation and tepid economic growth in the wake of the pandemic hampered his ambitious reforms. Marcel is attributed with stabilizing the economy and helping pass a number of the government's legislative victories, including a mining royalty and pension reform. Boric has seven months left in his administration and the country will host presidential elections in November. REUTERS
