Latest news with #STFILE
Straits Times
16 hours ago
- Automotive
- Straits Times
China's Baidu eyes robotaxi expansion to Singapore and Malaysia
Baidu is planning to launch its Apollo Go robotaxi service in Singapore and Malaysia as early as 2025, a source says. PHOTO: ST FILE Hong Kong – Baidu is planning to launch its Apollo Go robotaxi service in Singapore and Malaysia as early as 2025, according to a person familiar with the matter, as the company continues to expand its global footprint. Apollo Go is in discussions with potential partners to explore the right business models for the two markets, said the person, who asked not to be identified discussing private matters. Baidu didn't immediately respond to a request for comment. Its chief executive officer Robin Li has previously said the company was seeking partners such as mobility service providers, local taxi companies and third-party fleet operators for an asset-light approach. The development comes as Tesla prepares to launch its Cybercab robotaxi network in the United States within days, with Elon Musk staking the electric car maker's future growth on autonomous driving technology. At the same time, Chinese robotaxi companies including Apollo Go, and US-listed Weride and Pony AI are expanding into international markets such as the Middle East, Europe and South-east Asia. Apollo Go is fast scaling up. It has deployed than 1,000 self-driving vehicles worldwide, most of which are in China. It reached 11 million rides by the first quarter of this year, surpassing Alphabet's autonomous driving unit Waymo's 10 million paid rides as of May 23. The Baidu unit is also exploring entering Europe and Turkey, and was in talks with Swiss Post unit PostAuto to roll out a robotaxi service in Switzerland. BLOOMBERG Join ST's WhatsApp Channel and get the latest news and must-reads.
Straits Times
18 hours ago
- Business
- Straits Times
DBS expects economic value from its use of AI to exceed $1 billion in 2025
Since DBS began focusing on AI, the bank has created more than 350 use cases and has 1,500 models in production PHOTO: ST FILE DBS expects economic value from its use of AI to exceed $1 billion in 2025 SINGAPORE - Banks are ramping up their use of artificial intelligence (AI), and DBS – which has earned $750 million through its use of the technology – estimates that its economic value could surpass $1 billion in 2025. Since the bank began focusing on AI, it has created more than 350 use cases and has 1,500 models in production, said Rajeev Hassamal, DBS' head of generative AI and flow of work, at SuperAI Singapore, a two-day conference held at Sands Expo and Convention Centre. The conference participants at the event discussed, however, the challenges in striking a balance between innovation and responsible use of AI when developing AI models. 'Finding that sweet spot is very hard,' said Mr Hassamal. Speaking at a panel discussion on the integration between AI and finance, he emphasised the importance of equipping employees, regardless of role, with an understanding of how the technology works. 'We need to ensure people understand how to use this technology,' said Mr Hassamal, who showcased DBS' internal generative AI chatbot, DBS-GPT, which helps its employees with content generation and writing tasks, all within a secure environment. Speaking at a separate panel, Sambit Sahu, vice-president of applied research at Capital One, noted that the AI and machine-learning space has completely changed over the past five years. Large language models have progressed from doing simple tasks, to taking a more agentic approach, he noted. One use case of AI, he suggested, is in mimicking employees' tasks, but it does it more efficiently. '(Banks) deal with huge amounts of data, text, images, audio and also visuals,' he added. Sigrid Rouam, chief AI officer at EFG Bank, pointed out that generative AI can also be put to work on compliance-related tasks, such as checking the source of money from a bank's clients. AI can also assist with non-advisory related tasks – those that take up 70 per cent of relationship managers' time, she said. 'All of this should be completely automated and streamlined.' The Monetary Authority of Singapore (MAS) warned that guardrails need to be in place amid the race to implement AI in the financial sector. Kenneth Gay, MAS' chief fintech officer, said that the central bank takes regulation very seriously, given that the regard for regulation is a competitive advantage for Singapore. Project MindForge, an initiative by MAS in 2023, examined the risks and opportunities of generative AI for banks. Mr Gay said that since financial institutions are at the stage of building and deploying generative AI applications, they are seeking more clarity from the government about the sort of specific features that should be included. He added that MAS intends to release a playbook this year that will give institutions from across the segments of the financial sectors, including banking and insurance, more clarity regarding the key risk considerations across AI's key use cases. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
20 hours ago
- Business
- Straits Times
Singapore's banking hub has a corner where cash is still king
Travelers with cash also avoid the higher exchange rates and foreign transaction fees imposed by many credit cards. PHOTO: ST FILE SINGAPORE - In the heart of Singapore, a financial hub where billions of dollars zip around the world over computer screens in nanoseconds, there's a crowded building where cash still reigns. Six days a week, hundreds of people line up at The Arcade, a narrow, three-story plaza abutting Raffles Place square, to buy and sell hard currency at one of around 30 money changer stalls. All manner of notes can be had in minutes: Singapore dollars for British pounds? Coming right up. Indonesian rupiah for Vietnamese dong? Icelandic króna? Maldivian rufiyaa? No problem. Some 150 currencies are available. 'Cash will remain forever,' said Abdul Haleem, 65, a veteran of the industry whose kiosk sits at the entrance to the The Arcade. The towering offices of global banking giants JPMorgan Chase & Co. and Bank of China are just steps away. The number of licensed money changers in Singapore dropped during the Covid-19 pandemic when many people were unable to travel and retail shops struggled to pay rent. But there are close to 250 physical stalls still operating, and new ones continue to spring up across Singapore. That's even though multi-currency payment apps such as YouTrip, Wise and Revolut have grown in popularity. To understand how so many money changers can survive the digital age, you need to know a bit about Singapore's place in the world. Though it's now among the richest countries – where financial titans from UBS Group to BlackRock manage more than US$4 trillion and billionaires including James Dyson, Ray Dalio and Sergey Brin have set up family offices – the nation remains a shipping and transit hub at its core. Hundreds of vessels anchor in Singapore's harbour each day, many waiting to load and unload cargo at one of the world's busiest ports. For decades, that's made Raffles Place a prime location for money changers, just a few blocks from where the Singapore River empties into the Singapore Strait. Many sailors need to swap cash from their previous locations, and change money for their next destination. 'They get off the boat and come right here,' said Mr Haleem, whose uncle Abdul Gaffoor, now 99, started City Money Changers on the Arcade's ground floor in 1980. Old-world relic Many office workers also come in search of the best exchange rates – which are often better than what banks offer. Mohamed Rafik, 55, a partner at Arcade Money Changers, a stall opposite Haleem's, remains optimistic. His evidence is that there are new licensees entering the industry who wouldn't do it if they couldn't make a living. 'Money changers won't go out of business,' said Mr Rafik, while handling cash and paper receipts on a busy afternoon. Digital payment wallets may seem attractive now, but the companies also have overheads and may try to increase rates in the long run, he predicted. Right now, a thriving tourism industry is driving demand during the June school holidays. Singapore is close to South-east Asian holiday hotspots like Phuket in Thailand, Vietnam's Ha Long Bay and Bali, Indonesia, where cash is still needed to pay for food at street stalls or small restaurants, or to offer tips. Travelers with cash also avoid the higher exchange rates and foreign transaction fees imposed by many credit cards. For Christina Ng, a teacher in her 40s who came to Haleem's stall for Korean won, cash gives a sense of security while traveling. Paying with notes and coins is also a lesson for her three children. 'I want them to learn how to use the cash and do the transaction, so they need to see the physical money,' she said. 'We don't want them to just tap, tap, tap without actually knowing what they're spending on.' The money changers are good leading indicators of travel trends. Whereas demand used to be strongest for US dollars and Malaysian ringgit, the Japanese yen is now most sought-after, along with Korean won and Taiwanese dollars, Mr Haleem said. At the Arcade, the money changers carve out an existence on the fringes of the multi-trillion dollar global foreign-exchange market. Frugality gives them an edge against the financial institutions that occupy the opulent towers surrounding Raffles Place, according to Mr Rafik at Arcade Money Changers. The changers will survive even if digital platforms cut their margins to zero to gain market share, he said. Congregating in one location attracts more customers, but it also pares margins to the bone. Foreign currency bought at a commercial bank can cost 1 per cent to 4 per cent or more once you factor in a poorer exchange rate and transaction fees. At City Money Changers, it's a high-volume, low-margin business where Mr Haleem typically makes fractions of a penny on the dollar in a swap. 'Everybody wants to see the best price so they will shop around,' he said, while taking a break from his tiny kiosk. On the afternoon of June 19, Haleem's stall was selling the US dollar at S$1.2900, versus the S$1.2972 offered by DBS Group Holdings, Singapore's largest bank, on its retail app. The cash exchange rate wasn't as favourable as YouTrip's rate of S$1.2877 per US dollar. With all this cash on hand – some changers can turn over $500,000 a day, he says. Regulators have scrutinized the industry in the past, concerned about the potential for money laundering. In 2016, the Monetary Authority of Singapore (MAS) cited a Raffles Place currency changer, along with other banks, for their roles in the scandal at 1MDB, the Malaysian sovereign wealth fund. The probe revealed inadequate risk management practices at the changer, and failure to identify the beneficial owners of funds. Money changers are now required to conduct customer due diligence measures for cash transactions exceeding $5,000, or for those topping $20,000 where the money is funded from an identifiable source like a bank account. That includes verifying customers' identities and keeping proper transaction records. The industry poses a 'moderate level' of money-laundering threats due to its cash-intensive nature, said an MAS spokesperson. Mr Haleem, who's been at this trade for 40 years, concedes that the future isn't all bright for his industry. Business is about half that of pre-Covid levels, and the increased competition is eroding margins, while wild currency swings can leave him sitting on devalued cash overnight. He predicts the trend toward digital payments is only going to accelerate. 'It will become worse and worse,' he said, though he thinks there will always be a little room in people's wallets for cold hard cash. One floor up at Crown Exchange, Thamim A.K., a money changer in his 60s, is more sanguine. Sitting in a backroom surrounded by wads of Korean won and Indonesian rupiah, he says his 40 years of trading, with all its ups and downs, gives him hope for the future. 'I've seen everything, all the currencies, fluctuations,' Mr Thamim said. 'The bank notes business is still there. It's growing, in fact. It's fighting with digital.' BLOOMBERG Join ST's WhatsApp Channel and get the latest news and must-reads.
Straits Times
a day ago
- Business
- Straits Times
Singapore stocks sink after Powell signals higher inflation; STI down 0.7%
The downbeat messaging sent the benchmark Straits Times Index (STI) sliding 0.7 per cent or 26.63 points to 3,894.18. PHOTO: ST FILE SINGAPORE – Local shares mirrored falls across global markets on June 19 amid concerns about sticky US inflation and growing unease over the escalating tensions in the Middle East. An air of pessimism set in for the trading day when US Federal Reserve chair Jerome Powell warned that consumers are expected to face higher prices due to the Trump administration's proposed import tariffs. He also dampened hopes about impending interest rate cuts in coming months. The downbeat messaging sent the benchmark Straits Times Index (STI) sliding 0.7 per cent or 26.63 points to 3,894.18 – its second straight negative session – with losers outpacing gainers 315 to 167 across the broader market on lacklustre trade of 980 million securities worth $933 million. The STI's top performer was conglomerate Jardine Matheson Holdings, up 0.9 per cent to US$46.26, while brewer Thai Beverage led the laggards, falling 3.2 per cent to 45 cents. Red ink also washed over the local banks: DBS fell 0.7 per cent to $43.93; OCBC declined 0.3 per cent to $15.99; and UOB closed 0.3 per cent lower at $34.71. Regional bourses ended mostly lower on the same concerns that were flagged here. Japan's Nikkei 225 fell 1 per cent, Malaysian shares declined 0.7 per cent, the ASX in Australia slipped 0.1 per cent and Hong Kong's Hang Seng tumbled 2 per cent. The Kospi in Seoul managed to buck the trend, adding 0.2 per cent. Wall Street put on modest gains early in the session overnight but those gains were steadily trimmed back, leaving the three key indexes largely unchanged, although there is rising concern surrounding the security of oil supplies if the Middle East conflict affects shipping in the Strait of Hormuz. Mr Suan Teck Kin, head of research at UOB Global Economics & Markets Research, said his team is still projecting three 25-basis-point rate cuts in the US – in September, October and December – and two cuts in 2026. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
a day ago
- Business
- Straits Times
Chevron seeks buyers for 50% stake in Singapore refiner SRC, sources say
A Singapore Refining Company plant at Jurong Island. A source put the value of Chevron's SRC stake at hundreds of millions of dollars. PHOTO: ST FILE SINGAPORE - US oil major Chevron has sought non-binding bids for the sale of its 50 per cent stake in Singapore Refining Company (SRC), including from joint venture partner PetroChina, eight sources familiar with the matter told Reuters. Chevron is also gauging interest for the sale of other assets in Asia, including terminal and fuel storage facilities in Australia and the Philippines, one of the sources and a separate source said. The potential sales come as Chevron restructures globally to streamline operations and reduce costs, a process that could see it lay off up to 20 per cent of its workforce by the end of next year. Chevron has appointed Morgan Stanley to explore the sale of the SRC refinery in Singapore and other Asian assets, one of the sources said. Morgan Stanley declined to comment. PetroChina, which owns the other 50 per cent of SRC through its Singapore Petroleum Co Ltd unit, has first right of refusal to purchase Chevron's share, three of the sources said. 'Chevron does not comment on commercial matters as a matter of long-standing policy,' a company spokesperson said. PetroChina did not respond to a request for comment. Other firms invited to review the refinery stake include global trading house Glencore, three of the sources said. Glencore does not comment on market rumour or speculation, a company spokesperson said. Buyers were asked to submit non-binding offers in July, the three sources said. One of the sources put the value of Chevron's stake in the Singapore refining business at hundreds of millions of dollars. Two industry experts not involved in the process gave estimated valuations for 50 per cent of the plant ranging from US$300 million (S$385 million) to US$500 million. The SRC refinery has a crude processing capacity of around 290,000 barrels per day, making it the smallest refinery in Singapore. It includes seven shipping berths, all of which can handle very-large crude carriers (VLCCs), according to SRC's website. In May, Chevron sold its stake in Chevron Phillips Singapore Chemicals to Aster Chemicals and Energy, a joint venture between Chandra Asri and Glencore. A deal for the refinery would mark the second recent exit by a global major from the Singapore refining sector, which is subject to a carbon tax that has raised operating costs. In April, Shell completed the sale of its facility on Singapore's Bukom and Jurong islands to the Chandra Asri-Glencore joint venture, exiting an operation dating to 1961. REUTERS Join ST's WhatsApp Channel and get the latest news and must-reads.
