Category: Economy

MIL-OSI Asia-Pac: LCQ2: Development of private museums

Source: Hong Kong Government special administrative region

LCQ2: Development of private museums
LCQ2: Development of private museums
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Following is a question by the Hon Ma Fung-kwok and a reply by the Acting Secretary for Culture, Sports and Tourism, Mr Raistlin Lau, in the Legislative Council today (October 30): Question: In the National 14th Five-Year Plan, the country has expressed unequivocal support for developing Hong Kong into an East-meets-West centre for international cultural exchange. It is learnt that while private museums are recognised as facilitating the preservation of arts and culture and are booming in many places across the globe, the development of private museums in Hong Kong has all along been constrained by the lack of suitable venues, high maintenance costs, as well as the lack of government support, accreditation, promotion and publicity, etc, some private museums have even ceased operations as a result. In this connection, will the Government inform this Council: (1) whether it knows the number of private museums and their operating conditions in the past three years, including the ratio of fee-charging to free admission, attendances, the ratio of those on the promotion list of the Government or the relevant organisations, as well as the number of private museums facing operating difficulties; whether any applications to operate a private museum have been rejected; (2) among the existing private museums, of the number of those which have received support (including one-off or regular funding) from the Government or the relevant organisations; whether any requests for support by a museum have been rejected by the Government, and of the purpose for which support was requested; and (3) whether it has plans to introduce an accreditation scheme for private museums or extend the scope of application of the Museums Regulation to cover private museums and to centralise the promotion of local museums, so as to enrich the contents of Hong Kong’s tourism in arts and culture, and facilitate the development of Hong Kong into an East-meets-West centre for international cultural exchange? Reply: President, Museums are an important part of cultural inheritance and dissemination. The Government has been committed to supporting the development of cultural software in Hong Kong through public museums. Currently, 15 museums and two art spaces are managed by the Leisure and Cultural Services Department (LCSD) in accordance with the Public Health and Municipal Services Ordinance (Chapter 132), each with different focuses and themes, covering the three major areas of art, history and science, bringing different cultural experiences to citizens and tourists. The LCSD continues to invest a lot of resources in improving the facilities and enriching the content of its museums. The renovation of the Hong Kong Museum of Art in recent years is an important example. The current-term Government is committed to fostering cultural development with a view to developing Hong Kong into an East-meets-West centre for international cultural exchange, and has announced that the number of museums under the LCSD will be further increased to continue to enrich Hong Kong’s cultural landscape and bring new impetus to cultural development to meet the general public’s demand for museums. From the cultural policy perspective, in addition to operating and developing public museums, the Government also welcomes the establishment of private museums by individuals or organisations to complement with public museums, which is conducive to the diversified development of the cultural ecology of Hong Kong. The LCSD museums have detailed plans from planning, construction to operation to achieve the Government’s public policy mission, while private museums have higher development autonomy, fewer restrictions, and can also be operated in a more commercial manner. Therefore, when the Government considers supporting private museums and formulating related policies, it must take into account the overall resource allocation and evaluate relative priorities of projects to avoid unnecessary pressure on public funds. Having regard to the uniqueness on the history, theme, scale, operating mode, and financial situation of individual museums, the Government currently does not have plans to formulate a set of standard mechanisms to support the operation of private museums, however, if resources permit, we will consider providing different forms of support to the operation of individual private museums, based on the Government’s policy objectives, expectations of society, and the actual situation of individual museums. In consultation with relevant bureaux/departments, my reply to the question raised by the Hon Ma Fung-kwok is as follows: (1) and (2) The Government does not maintain data on the number and operating conditions of private museums. As far as we know, there are dozens of private museums in Hong Kong, covering different themes such as culture, arts, history, folklore and education. Currently, the Hong Kong Maritime Museum (HKMM) is the only private museum subvented by the Government. It rents Central Pier No. 8 at nominal rent and receives Government subvention to support its operation. The HKMM recorded approximately 66 100, 52 800 and 106 200 visitors respectively in the last three financial years (i.e. April 1, 2021 to March 31, 2024), among which free visitors account for about 30 per cent, mainly school tour groups. In addition to subvention, the Government welcomes organisations interested in operating museums to apply for subsidy for cultural, arts projects or activities, such as the Springboard Grants and the Project Grants under the Arts Capacity Development Funding Scheme managed by the Culture, Sports and Tourism Bureau (CSTB), the Project Grant and Matching Fund Scheme from Hong Kong Arts Development Council (HKADC) and the Lord Wilson Heritage Trust, to support the museum’s operations or to organise events. For example, the HKADC provided funding to a private museum’s training programme in 2023. Non-government organisations and social enterprises, if interested in operating a private museum on vacant government land, can submit an application for “Use of Vacant Government Land for Community, Institutional or Non-Profit Making Purposes on Short Term Basis”. The Government will consider whether to grant the short term tenancy at nominal rent in accordance with policy objectives and established assessment criteria. In 2024, the CSTB provided policy support at nominal rent for two short-term tenancy applications for the use of private museums. These two applications are currently being considered together with other applications by relevant departments. Private museums may also consider participating in the global network of the International Council of Museums (ICOM) by referring to and adhering to the professional and ethical standards established by the ICOM, thereby improving the quality of their museums to attract more visitors and gain more chances of mutual support and collaboration with other museums. The ICOM, established in 1946, is an international organisation of museums and museum professionals committed to the conservation, continuation and communication to society of the world’s natural and cultural heritage. The major museums under the LCSD are members of the ICOM. Non-governmental cultural and museum organisations including the West Kowloon Cultural District Authority, the HKMM, the Art Museum of the Chinese University of Hong Kong, the University Museum and Art Gallery of the University of Hong Kong and MILL6 Foundation are also members of the Council. (3) As mentioned above, the Government encourages the diversified development of Hong Kong’s cultural ecology and currently has no plans to launch a private museum certification system or regulate the operation of private museums through legislation. Nonetheless, the LCSD museums have been collaborating with other local museums from time to time, and promoting these museums through different platforms and channels. One of the most obvious examples is the Muse Fest HK organised by the LCSD every year since 2015, inviting different local museums and cultural institutions to become partners, allowing citizens and tourists to visit different museums in the city and experience Hong Kong’s rich and unique culture, history and artistic diversity. In addition, the LCSD museums and private museums also from time to time lend collections to each other or collaborate in organising various activities, including exhibitions, lectures and seminars. In addition, the Hong Kong Tourism Board (HKTB) has been promoting unique museums, including public and private museums and related activities to tourists through its website (discoverhongkong.com), social platforms and tourist information centres, etc, such as M+, Hong Kong Palace Museum, Hong Kong Museum of Medical Sciences and Hong Kong News-Expo. The HKTB also introduces Hong Kong’s museums through social media. For example, it has collaborated with the Mainland social media Xiaohongshu to launch the Hong Kong Citywalk Guide, which introduces five unique Citywalk routes for roaming around Hong Kong, including the Museum Walk route.

Ends/Wednesday, October 30, 2024Issued at HKT 15:11

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MIL OSI Asia Pacific News –

January 25, 2025
MIL-OSI Australia: APRA increasing scrutiny of expenditure by superannuation trustees
Source: Allens Insights

Increased surveillance and potential for enforcement action 8 min read

APRA recently announced in a letter to all superannuation trustees that it will intensify scrutiny of ‘fund-level expenditure to hold RSE Licensees accountable to improve practices’ and ‘reduce spending that is deemed to not be in members’ best financial interests’.

In this Insight, we highlight what APRA plans to do over the coming 12 months through surveillance and enforcement action and areas of its likely focus, and then set out practical steps trustees can take now to prepare for increased scrutiny and possible enforcement action from APRA.

What APRA plans to do about trustee expenditure

Over the next 12 months, APRA will prioritise its supervision of fund expenditure where member benefit is not immediately evident or may not be reasonably justified. It is this expenditure which we assume is at risk of being deemed not to be in members’ best financial interests by APRA.

APRA Deputy Chair Margaret Cole also warned this week that APRA is prepared to ‘test the limits of the law’ in this area if needed, which we interpret to mean a willingness to commence proceedings even where there may be legal uncertainty about the application of the law to expenditure by trustees.

APRA will take a targeted approach, partly informed by expense data that RSE licensees were required to submit to APRA. It will initially focus on ‘discretionary expenditure’ such as travel, entertainment and conferences, outliers (which we take to mean RSE licensees with higher expenses than their peers), and particular types of payees and payments.

It says its focus will be informed by ‘market intelligence and matters of public interest’. The reference to ‘public interest’ suggests APRA may be reacting to issues raised in the media or public criticism of individual funds and their expenses, and APRA may be more likely to target these trustees for scrutiny and enforcement action.

APRA’s interest in trustee expenditure is not new, but its announcements are a warning to trustees that it is looking closely at this area and wants to be seen to be taking action against trustees who are not complying with their obligations.

APRA is already engaging with a number of trustees following its review of initial expense data. The review isn’t finished and APRA has said trustees can expect it to issue notices requiring information that demonstrates how trustees determined that expenditure is in members’ best financial interests. In reviewing expenditure decisions, APRA will consider governance, conflicts of interest and attestations from management (as recommended under the updated SPG 515 from 1 July 2025) and the role of accountable persons under the Financial Accountability Regime (FAR). It has foreshadowed imposing rectification measures where warranted, and will make enforcement actions public where appropriate.

The focus on expenditure by trustees ties in with APRA’s stated aim in the 2024-25 corporate plan of improving transparency around expenses and a focus on compliance by trustees with the updated SPS 515, which commences from 1 July 2025. APRA flagged in the plan that it will use the new, more detailed expense data it receives ‘to identify trustees with outlying expenditure for certain discretionary expense categories and will intensify supervisory efforts accordingly’.

Steps trustees can take to anticipate APRA action
Given APRA’s clear warning that it will focus on trustee compliance with expenditure obligations in the next 12 months, including increased surveillance and potential for enforcement action, trustees should take steps now to prepare and anticipate issues APRA may raise. Failure to do so may itself open trustees to criticism. This could include:

1. Reviewing compliance of existing expenditure management policies and processes

While APRA’s level of scrutiny and apparent willingness to take enforcement action are new, the obligations are not.

Trustees have obligations under the SIS Act to perform their duties and exercise their powers in the best financial interests of beneficiaries, to give priority to beneficiaries’ interests where there is a conflict, and to comply with the sole purpose test. They are also subject to existing requirements in SPS 515 to demonstrate that decisions about business operations that result in significant expenditure will contribute to meeting the trustee’s strategic objectives.

All trustees should have governance policies and processes in place for complying with these requirements. This would include an expenditure management policy and procedures for reviewing and approving expenditure, including escalation of decisions to senior management or the board for significant decisions.

Trustees should check that their policies and procedures are up to date and that they are following their own policies and procedures when making decisions about budgets and expenses. Those people who will become their accountable persons should be taking reasonable steps now to make sure they are being applied.

It is these things that will enable trustees to demonstrate to APRA that they have complied with their duties in making expenditure decisions if required.

2. Reviewing high-risk expenses

APRA is likely to focus its scrutiny on certain types of expenses, including advertising, sponsorships, corporate entertainment, political donations and related-party transactions.

Trustees may want to review these categories of expenses—particularly where they are significant or where the link to financial interests of beneficiaries is not evident. A good starting point would be expense data that has been reported to APRA, as APRA will use the same data to identify areas for further scrutiny.

Trustees should test whether they can demonstrate that good governance processes were followed when approving expenses and that the decisions were consistent with the trustee’s obligations. They should identify documents and information that could be produced to evidence the approval process if APRA raises concerns.

An internal review could bring to light expenditure decisions that potentially lack justification on the available information, in which case the trustee may need to reconsider the decisions or identify and document any additional information available to support the decisions. It is important to remember that some expenditure may have an indirect connection to members’ best financial interests and can be justified on this basis—such as spending on employee benefits that assists in recruitment and retention of good employees that ultimately benefits members.

3. Checking on progress in implementing updated SPS 515 and SPG 515

The updated SPS 515 was finalised in July 2024 and takes effect from 1 July 2025. It includes additional requirements around expenditure management that apply to all expenditure decisions (not just to ‘significant expenditure’), and the new SPG 515 includes revised guidance with a focus on trustees’ duties to act in the best financial interests of beneficiaries, more scrutiny of expenditure that involves conflicts or provides incidental benefits to third parties, and greater focus on accountability around expenditure decisions.

Trustees will need to review and update their policies, procedures and governance arrangements to address the new requirements and APRA’s expectations by 1 July 2025. Trustees should be in a position to provide APRA with an update on progress in this area, including timeframes and anticipated changes to their existing arrangements.

4. Testing whether some expenses may be outside the regulatory regime

The requirements in SPS 515 and the guidance in SPG 515 purport to apply broadly to ‘expenditure decisions’ by an RSE Licensee ‘relating to its business operations’. There is an important unresolved issue around how far APRA’s scrutiny will go, and whether it will extend beyond the use by trustees of fund assets for expenses.

There is an important distinction between trustee business models that is not acknowledged in SPS 515 or SPG 515. Some trustees pay expenses directly from fund assets relying on their right of indemnity or exoneration. Other trustees charge a fee for their services and then meet expenses out of their personal assets. Many trustees do both—with the proportion of expenses coming from fund assets or personal assets varying depending on the trustee’s business model.

The source of funding for expenses has important implications for the trustee’s obligations in relation to expenditure decisions. Trustees are required to comply with the SIS Act obligations to act in the best financial interests of beneficiaries, give priority to their interests and ensure consistency with the sole purpose test only where they are performing a trustee’s duties or exercising a trustee’s powers. In spending their own money, they are doing neither of these things (although some restrictions apply to the use of trustee capital which is maintained to meet operational risk loss events).

It is not at all clear whether SPS 515 and SPG 515 acknowledge this distinction. While the guidance refers to the requirement to ‘have robust governance and oversight of fund expenditure’, which suggests it is intended to apply only to expenses paid from fund assets, SPS 515 imposes requirements on a trustee when it makes ‘an expenditure decision relating to its business operations’. On its face, this appears to apply equally to expenditure from fund assets or the trustee’s personal assets.

In its letter to trustees, APRA says it will prioritise supervisory attention on ‘fund expenditure’. Whether it gives this a narrower meaning confined to trustees spending fund money, or whether it includes a broader range of expenditure by trustees, is yet to be seen. This could be one area where it decides to ‘test the limits of the law’. SPS 515 also includes new obligations in relation to the setting of fees—including to ensure the fee is ‘appropriate and proportionate, having regard to factors such as the arm’s-length value of the features and services that the fee relates to’. While this raises separate issues, it could provide another means for APRA to regulate the ability of trustees to pay for expenses out of their own funds.

5. Preparing a ‘playbook’ for responding to APRA notices or enforcement action

Given APRA has issued a letter to trustees saying it intends to increase scrutiny on expenditure and issue notices to trustees, trustees should prepare now to be able to respond to those notices in an efficient and cost-effective way.

We suggest trustees plan now:
- A process to ensure that, when a notice is received, it is quickly referred to those responsible for preparing a response, to avoid wasting time in the initial phase.
- The resources available and governance arrangements to be followed in responding to any notice, including identifying key accountable individuals and specifying roles and responsibilities, identifying advisers who will be briefed to assist in any response, setting out a process for obtaining input from a range of stakeholders, and setting out the approval and escalation process, including indicative timeframes required for review of draft responses.
- Collating relevant policy and procedures documents so they can be quickly produced and, to the extent possible, preparing draft responses in relation to governance arrangements and key areas of likely scrutiny.
- Preparing a public relations and press engagement strategy in the event issues are first raised in the media or come to light following an APRA notice (although given the nature of the investigations, having regard to the interests of members).
The plan should have input from key senior management and individuals who will be involved in any response.
What’s next?

APRA’s focus on fund expenditure over the coming 12 months will require trustees to consider their expenditure management arrangements again, and potentially to respond to scrutiny of their governance or individual expenditure decisions. APRA’s warning gives trustees a rare opportunity to anticipate issues and prepare a response plan ahead of time. A failure to do so could itself be cause for criticism by APRA.

MIL OSI News –
January 25, 2025
MIL-OSI Economics: Q&A: Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP)
Source: Asia Development Bank
Workers walking by a solar power plant in Kazakhstan

Article | 30 October 2024
Read time: 6 mins

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IF-CAP is the first leveraged guarantee mechanism for climate finance to ever be adopted by a multilateral development bank.

Various simulations have shown that for every $1 that is guaranteed, up to $4.5 of new climate finance will be generated under IF-CAP’s mechanism.

IF-CAP will strengthen ADB’s developing member countries’ capacity to develop their low-carbon and climate-resilient strategies and build a larger pipeline of potential investments.

What is IF-CAP?

The Innovative Finance Facility for Climate in Asia and the Pacific, or IF-CAP, is a multi-donor financing partnership facility with the goal of scaling-up finance for accelerated action against climate change in Asia and the Pacific. IF-CAP partners will provide guarantees for parts of ADB’s sovereign loan portfolios to enable ADB to free up capital to increase lending for climate investments. Supplementary grants will facilitate project preparation, capacity building, and knowledge solutions.

Why is IF-CAP being formed?

The battle against climate change will be won or lost in Asia and the Pacific. And our region is uniquely vulnerable to the impacts. More than 40% of climate-related disasters occurred in Asia and the Pacific since the start of the century, affecting nearly 3.6 billion people. ADB estimates that $1.7 trillion per year will need to be invested in infrastructure in developing Asia between 2016-2030 to meet both climate and development goals. The Intergovernmental Panel for Climate Change (IPCC) says the year 2030 is a significant crossroad after which it will become considerably harder to meet climate targets.

As Asia and the Pacific’s climate bank, the Asian Development Bank is spearheading significant climate change financing and expertise across the region. IF-CAP is the first leveraged guarantee mechanism for climate finance to ever be adopted by a multilateral development bank. It is inspired by the International Finance Facility for Education (IFFEd), which aims to use innovative financing to unlock new education funding in low-and middle-income countries.

What will IF-CAP do?

IF-CAP will allow ADB to significantly increase climate finance for investments that are aligned with the Paris Agreement and other key ADB policies, including the forthcoming Climate Change Action Plan.

With a model of “$1 in, $4.5 out”, IF-CAP’s current guarantee size of $2.5 billion will create over $11 billion in climate finance for much-needed climate projects across Asia and the Pacific. Alongside lending facilitated by IF-CAP, ADB will provide up to $1 billion in concessional ordinary capital resources lending (COL) from its own resources, in support of projects enabled by IF-CAP’s guarantee structure. In total, resources aligned with IF-CAP amount to over $12 billion.

IF-CAP enabled projects will address both climate change mitigation, which focuses on reducing greenhouse gas emissions, and climate change adaptation, which focuses on building resilience to the worsening effects of climate change. These investments could cover a wide range of sectors, such as transportation, energy, urban, and agriculture and natural resources, as well as social sectors such as health and education, for projects with high climate impacts.

What will IF-CAP not do?

IF-CAP will not support new or existing fossil fuel-based electricity generation facilities or dedicated transmission, or any new or existing natural gas-related projects. Climate finance enabled by IF-CAP will not be used towards early retirement or repurposing of fossil fuel fired power plants.

Developing Asia’s share of global greenhouse gas emissions nearly doubled, from 22% in 1990 to 44% in 2019 and is expected to remain at this level until mid-century under current policies.

Asia and the Pacific can only realize its climate goals if it pursues a transition away from coal-based energy in the near term.

How does the leverage mechanism work?

The program is based on the use of financial guarantees from our partners. By guaranteeing a portfolio of ADB sovereign loans on a first-loss basis, they will help shoulder some of the loss in case of a default by one of our borrowers included in our portfolio.

This is a groundbreaking arrangement because IF-CAP’s portfolio guarantee enables ADB to optimize the usage of our balance sheet, supported by the strength of our triple-A credit ratings and preferred creditor status. This allows ADB to reduce the capital held for credit risk and release more capital for climate loans. Every dollar of guarantee into IF-CAP will result in the capacity to provide more climate finance for eligible projects. Simulations show that for every $1 that is guaranteed, $4.5 of climate finance could be generated. That is a fundamental shift from the traditional “one dollar in, one dollar out” facilities at MDBs, because of IF-CAP’s leverage effect.

Who are the partners supporting IF-CAP?

IF-CAP’s founding partners are Denmark, Japan, Norway, Republic of Korea, Sweden, the United Kingdom, and the United States. In 2023, the Global Energy Alliance for People and Planet established a trust fund under the IF-CAP Financing Partnership Facility.

What sovereign portfolios will their guarantees cover?

IF-CAP will cover a dynamic and diversified reference portfolio consisting of ADB’s exposures to a board spectrum of developing member countries, which have been identified to achieve the desired leverage based on the risk appetite of the partners.

Which countries are eligible for IF-CAP financing?

All ADB’s developing member countries (DMCs) are eligible. Individual financing partners may exercise discretion for certain projects based on their policies and priorities.

Will IF-CAP differ from ADB’s regular climate financing?

Functionally, there will be no difference. IF-CAP’s role will be to enable ADB to approve climate financing more quickly and at a higher volume.

What are the benefits of IF-CAP?

For DMCs, IF-CAP can help them advance operations with high climate ambition that are currently not in their pipeline, increase climate finance components of existing pipeline projects, and enable greater visibility and demonstration effects for projects including those with innovative components or high climate impact.

For IF-CAP partners, it can enable them to make a greater impact through a leveraged guarantee mechanism not offered by other financing partnership facilities, providing them with an effective and efficient way to fight climate change in support of their national commitments.

For ADB, IF-CAP is an innovative method to optimize our balance sheet, unlock capital resources, and increase our lending capacity by over $11 billion so we can make more resources available for critical climate projects in Asia and the Pacific.

Will IF-CAP contribute to ADB’s ambition of $100 billion climate financing for 2019-2030?

IF-CAP will be one of the flagship instruments to enable ADB to reach its climate finance target beyond $100 billion and support our target for climate finance to reach 50% of the total committed financing volume by 2030.

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MIL OSI Economics –
January 25, 2025
MIL-OSI Russia: Sergei Sobyanin named the most popular measures to support technology companies

Translation. Region: Russian Federation –

Source: Moscow Government – Government of Moscow –

Moscow is constantly increasing support for high-tech companies in the form of grants and loans. This was reported by Sergei Sobyanin in his telegram channel.

“In May, they determined

main tasks to support innovation and business development until 2030. We approach the issue comprehensively: over the past years, we have formed a unique line of tools,” the Mayor of Moscow emphasized.

Source: Sergei Sobyanin’s Telegram channel @mos_sobyanin

One of the successful and fast growing programs is preferential loans under the pledge of rights to the results of intellectual activity. With the support of the city, entrepreneurs concluded 20 contracts for the amount of 608 million rubles, 13 of them this year for the amount of 452 million rubles, which is already almost three times more than for the whole of last year.

Sobyanin: 66 billion rubles were attracted to the city’s SME economy through guarantees Moscow Mayor Talks About City Projects to Support Tech Business

Thus, a loan was received by a company that produces special pipeline fittings for heating systems of housing and communal services. Support was also provided to a company that creates briquettes from small waste of large industrial enterprises for their further use as raw materials or fuel.

Another measure in demand is grants for the purchase of equipment and development of activities. The city compensates businesses for expenses already incurred. Since the beginning of the year, Moscow entrepreneurs have been approved for over 450 applications for a total of almost 1.9 billion rubles. This is 17 percent more than last year’s figure for the same period. Thanks to the capital’s support, companies have purchased equipment for over 4.2 billion rubles.

Among those receiving compensation was a company that produces vaccines for adults and children. In addition, the list includes a developer and manufacturer of equipment for precision machining of parts in various industries with numerical control.

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

https://vvv.mos.ru/major/themes/11970050/

MIL OSI Russia News –

January 25, 2025
MIL-OSI Asia-Pac: LCQ11: Supply of hostel places of post-secondary institutions

Source: Hong Kong Government special administrative region

     â€‹Following is a question by the Hon Benson Luk and a written reply by the Secretary for Education, Dr Choi Yuk-lin, in the Legislative Council today (October 30):

Question:

     The Third Plenary Session of the 20th Central Committee of the Communist Party of China (the CPC Central Committee) adopted the Resolution of the CPC Central Committee on Further Deepening Reform Comprehensively to Advance Chinese Modernization, in which support for Hong Kong’s position to become an international hub for high-calibre talents was stated. Moreover, last year’s Policy Address proposed to build Hong Kong into an international hub for post-secondary education by increasing the admission quota of non-local students to Government-funded post-secondary institutions. According to a recent report published by an organisation, it was envisaged that by 2028, the shortfall in hostel places for students of local post-secondary institutions would further increase to some 120 000. In this connection, will the Government inform this Council:

(1) whether it has projected and compiled statistics on the respective (i) numbers, (ii) proportions and (iii) hostel application proportions of local and non-local students in post-secondary institutions in the coming five years; given that the Government has, starting from the current academic year, increased the admission quota of non-local students to Government-funded post-secondary institutions to 40 per cent, of the current nationality distribution of the non-local students;

(2) whether it knows (i) the respective proportions of local and non-local students in post-secondary institutions who were successfully allocated with hostel places upon application and (ii) their terms of hostel residence in the past 10 years; whether various post-secondary institutions have set a limit on the term of hostel residence; if a limit has been set, of the details (set out in a table), and whether the Government has plans to extend the term of hostel residence for students;

(3) given that the Government established in 2018 the Hostel Development Fund with some $10.3 billion to provide six University Grants Committee-funded universities with an additional 13 473 hostel places, whether it has compiled statistics on the current number of hostel places provided by universities across the territory; of the Government’s projected growth in the supply of university hostel places in the coming five years, and the shortfall in hostel places when set against students’ demand for accommodation; whether it will consider injecting funds into the Fund again in the future; if so, of the details; if not, the reasons for that;

(4) whether it will study allocating idle lands in the vicinity to the post-secondary institutions concerned for the construction of academic buildings or hostels, or consider relaxing the plot ratio of land adjacent to universities in rural areas to allow for greater flexibility in university expansion; if so, of the details; if not, the reasons for that; and

(5) given that as indicated in the paper submitted by the Government to the Subcommittee on Matters Relating to the Development of the Northern Metropolis of this Council in April this year, 19 post-secondary institutions had participated in the engagement activity of the Northern Metropolis University Town (NMUT) and submitted proposals, whether the Government has estimated the number of post-secondary institutions that can be accommodated by the NMUT, and whether sites have been reserved for hostel purposes; if so, of the expected number of hostel places to be provided; if not, the reasons for that?

Reply:

President,

     The 2023 Policy Address stated building Hong Kong into an international post-secondary education hub and a cradle of future talents. The 2024 Policy Address also announced further measures to nurture future talents and to create the “Study in Hong Kong” brand. At the same time, the Government will set up the Committee on Education, Technology and Talents to be chaired by the Chief Secretary for Administration. The Committee will co-ordinate and promote the integrated development of education, science and technology and talent, so as to enhance convergence and coherence and formulate policies to promote the synergistic development of nurturing talents, gathering talents and science and technology, as well as to facilitating international high-calibre talents to stay in Hong Kong. Developing Hong Kong into an international post-secondary education hub is also one of the three major strategies. My reply to the various parts of the Hon Benson Luk’s question is as follows:

(1) The enrolment ceiling of non-local students in University Grants Committee (UGC)-funded taught programmes has been doubled from a level equivalent to 20 per cent of local student places in the 2023/24 academic year (AY) to 40 per cent with effect from the 2024/25 AY. There are no restrictions on research postgraduate programmes. It is important to note that all non-local students pursuing UGC-funded taught programmes do not receive public funding, and the number of such non-local students is accounted for separately from local student places. This ensures that the study opportunities for local students will not be affected.

     In the 2023/24 AY, the total number of local students pursuing full-time locally-accredited publicly-funded and self-financing programmes was about 158 300, whereas there were about 64 200 non-local students. As far as UGC-funded taught programmes (i.e. undergraduate, sub-degree and taught post-graduate programmes) are concerned, the actual number of non-local students was about 14 900 while that of local students was about 76 400; the proportion of non-local students was about 19 per cent. The non-local students come from over 100 places of origin. In the 2023/24 AY, the numbers of students by study levels and by places of origin are tabulated below:

Programme types
Numbers of students

Places of origin
Grand total

Local
Non-local

Mainland China
Other non-local
Total

UGC-funded taught programmes
76 359
10 450
4 419
14 869
91 228

UGC-funded research post-graduate programmes
1 373
7 372
813
8 185
9 558

Non-UGC-funded taught programmes
79 870
34 410
822
35 232
115 102

Non-UGC-funded research postgraduate programmes
654
5 561
397
5 958
6 612

Grand Total
158 256
57 793
6 451
64 244
222 500

Note: If research postgraduate students are financed by the UGC-funded universities using both UGC and external funds, they will be counted towards different sources on a pro-rata basis. Figures may not add up to the corresponding totals due to rounding.

     As for student hostels, the relative proportion of applications from local students and non-local students of the UGC-funded universities at the beginning of the 2023/24 AY is 55 per cent and 45 per cent respectively. Looking ahead, we envisage that universities will continue to take into account their capacity in promoting the advantages of our higher education sector around the world using the “Study in Hong Kong” brand, with a view to gradually admitting more non-local students to study in Hong Kong. Self-financing programmes will also flourish. As our post-secondary education sector in Hong Kong continues to enhance quality and expand capacity, the corresponding demand for student hostels will increase. We are delighted to explore flexible and innovative ways with the institutions and different stakeholders to increase the supply of student hostels.

(2) Based on the data provided by the UGC-funded universities, the success rate of local students and non-local students in hostel applications in the past ten AYs (2014/15 to 2023/24 AY) is at Annex. We do not maintain information on the terms of residence of local students and non-local students.

     The specific arrangements for hostel allocation are formulated by the UGC-funded universities and there is generally no upper limit set for the terms of residence. The universities are encouraged to reflect the priorities of different groups of students for hostel accommodation in the allocation mechanism, having regard to the practical needs and educational benefits, while maintaining suitable flexibility to ensure that resources of student hostels are utilised properly.

(3) and (4) Under the Hostel Development Fund (HDF), the UGC-funded universities are provided with a capital grant covering up to 75 per cent of the construction costs for 15 student hostel projects to provide a total of about 13 500 additional hostel places, with a target for gradual completion by 2027. Based on the data provided by the UGC-funded universities, the total number of hostel places (including publicly-funded, privately-funded and temporary hostel places) available for allocation in September 2023 was around 37 600. Taking into account the future supply from the projects under HDF, the number of hostel places will gradually increase to around 50 000 in the coming few years, to cater for the needs of students, including those arising from the additional intake.

     Under the prevailing mechanism, the universities may apply to the Government for granting additional sites for campus expansion if they have strong justifications and specific proposals, which will then be considered by the bureaux and departments concerned from relevant perspectives such as policy, resources, practical circumstances, planning and land administration, etc. The universities could also as necessary apply for a relaxation of development parameters for the proposed sites, including building height restrictions and plot ratios, etc, which will be processed in accordance with the statutory procedures and established arrangements by the Town Planning Board and relevant departments.

     To improve hostel facilities, the Chief Executive announced in the 2024 Policy Address that the Government would launch a pilot scheme to streamline the processing of applications in relation to planning, lands and building plans, so as to encourage the market to convert hotels and other commercial buildings into student hostels on a self-financing and privately-funded basis, increasing the supply of student hostels. The Government will also make available suitable sites for the private sector to build new hostels, having regard to market demand. The Development Projects Facilitation Office under the Development Bureau will provide one-stop advisory and facilitation services for these projects.

(5) The Government has earmarked over 80 hectares of land in the Northern Metropolis for the Northern Metropolis University Town (NMUT), and will encourage local post-secondary institutions to introduce more branded programmes, research collaboration and exchange projects with renowned Mainland and overseas institutions in a flexible and innovative manner. We will retain flexibility in the planning process to facilitate the development of student hostels.

     Relevant Government departments are still discussing the site planning of the NMUT at this stage. We plan to publish the Northern Metropolis University Town Development Conceptual Framework in the first half of 2026.

MIL OSI Asia Pacific News –

January 25, 2025
MIL-OSI Asia-Pac: LCQ10: Electronic Tax Reserve Certificates Scheme

Source: Hong Kong Government special administrative region

Following is a question by the Hon Chan Yuet-ming and a written reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (October 30):

Question:

     The Inland Revenue Department has implemented the Tax Reserve Certificates system for many years to help taxpayers save up and earn interest for tax payment, and introduced the Electronic Tax Reserve Certificates Scheme (the Scheme) in 1999. In this connection, will the Government inform this Council:

(1) of the effectiveness of the Scheme at present, and set out in a table (i) the total amount of sales, (ii) the number of purchasers, (iii) the amount of sales per capita, (iv) the distribution of sales by age groups, and (v) the amount of redemptions under the Scheme in each of the past five years;

(2) as there are views that, under the influence of external factors, the time deposit rates of banks in Hong Kong are still at a high level, whether the Government has assessed if such a situation will affect the sale of the Scheme; and

(3) as the latest per annum interest rate announced in the Tax Reserve Certificates (Rate of Interest) (Consolidation) Notice has been changed from the previous rate of 0.8833 per cent to 0.8 per cent, and the Scheme will earn interest for a period of 36 months only, its return is much lower than that of the time deposit schemes of banks in Hong Kong in recent years as well as that of other medium and low-risk wealth management products, whether the Government will conduct a review of the contents of the Scheme or step up the publicity work, so as to enhance the effectiveness of the Scheme?

Reply:

President,

     At present, the Inland Revenue Department (IRD) issues two types of Tax Reserve Certificate (TRCs), namely ordinary TRCs that are purchased by taxpayers who wish to prepare for tax payment in future, and TRCs for “Conditional Standover Order” (“conditional TRCs”) that the Commissioner of Inland Revenue requires taxpayers who have objected to their tax assessments to purchase in order to cover the total amount or part of the tax in dispute. An ordinary TRC will bear the interest rate prevailing at the date of purchase and will earn interest only when the holder pays for the tax. For a conditional TRC, interest is payable from the date of its issue to the date of final determination of the objection or appeal. The interest rate is calculated based on the rates in force from time to time over the tenure of the TRC. Upon final determination of the objection to or appeal against the tax assessment, IRD will pay the interest on the part of the capital sum eventually repaid to the taxpayer.

     The interest rate on TRCs is reviewed every month based on the average of the prevailing interest rate for the twelve-month time deposits for $100,000 to $499,999 offered by the three note-issuing banks. With effect from October 7, 2024, the interest rate on TRCs is 0.8 per cent per annum and applies to all ordinary TRCs issued on or after the above date until further notice.

     IRD has launched the Electronic TRCs Scheme since 1999 to replace paper version of ordinary TRCs and provide TRC users with a full range of electronic services, including a variety of electronic channels for purchasing TRCs (monthly bank autopay, telephone, internet and ATM), auto tax payment service, etc. The objective of the Electronic TRCs Scheme is to facilitate the purchase of TRCs by taxpayers and increase the flexibility by allowing them to choose the time, method of buying TRCs, etc. Users of the Electronic TRCs Scheme may also enjoy auto tax payment service to ensure that tax payments are always made on time and avoid any late payment penalty.

     My reply to Hon Chan Yuet-ming’s question is as follows:

(1) Since a taxpayer may purchase more than one TRC in each financial year, IRD does not maintain record on the number of purchasers of TRCs, average amount of each purchaser and the age profile of purchasers. The total sales amount, number of certificates sold, average amount per certificate and the total redemption amount of ordinary TRCs for the last five financial years are tabulated below:

Table 1

Year
Total sales amount
($’000)
No. of certificates sold
Average amount per certificate
($)
Total redemption amount
($’000)

2019-20
467,041
86 766
5,383
461,016

2020-21
452,352
89 944
5,029
443,812

2021-22
430,415
84 122
5,117
466,587

2022-23
423,404
80 951
5,230
448,218

2023-24
409,765
79 672
5,143
416,804

The total sales amount, number of certificates sold, average amount per certificate and the total redemption amount of conditional TRCs for the last five financial years are tabulated below:

Table 2

Year
Total sales amount
($’000)
No. of certificates sold
Average amount per certificate
($)
Total redemption amount
($’000)

2019-20
2,514,175
1 196
2,102,153
2,401,318

2020-21
2,896,920
1 344
2,155,446
2,781,430

2021-22
3,133,413
1 092
2,869,426
3,486,200

2022-23
2,413,492
946
2,551,260
3,028,070

2023-24
3,008,748
1 058
2,843,807
3,093,966

(2) Since the rate hike cycle in 2022, the total sales amount of ordinary TRCs slightly fell from $430 million in 2021-22 to $409 million in 2023-24, representing a decrease of 4.8 per cent. The number of certificates sold slightly fell from 84 122 in 2021-22 to 79 672 in 2023-24, representing a decrease of 5.3 per cent. It can therefore be seen that the overall sales of TRCs have not changed significantly due to external factors or interest rates.

     As for conditional TRCs, they are purchased by taxpayers at the request of the Commissioner of Inland Revenue and therefore their sales are not related to changes in interest rates.

(3) The existing mechanism for determining the TRC rate has already ensured that changes in interest rate of time deposits offered by the note-issuing banks are timely reflected in TRCs. Since the two types of TRCs have their stated purpose and are not intended as a tool to provide investment returns, we do not consider it appropriate to adjust the interest rate on TRCs by making reference to the interest rates of wealth management products. The Government has no intention of setting a target for the sale of TRCs. We respect the choice of taxpayers to purchase ordinary TRCs.

    On publicity, an application form for Electronic TRCs Scheme is available on the IRD’s website for members of the public to download. The Brief Guide to Taxes of IRD and the websites of GovHK and Cross-boundary Public Services also include information on the Electronic TRCs Scheme. IRD will add a new link on the Electronic TRCs Scheme at a prominent position on its website to facilitate members of the public to search for relevant information.

MIL OSI Asia Pacific News –

January 25, 2025
MIL-OSI: Sydbank’s Interim Report – Q1-Q3 2024
Source: GlobeNewswire (MIL-OSI)

Company Announcement No 51/2024
30 October 2024

Sydbank’s Interim Report – Q1-Q3 2024

Bigger Sydbank – new 3-year strategy plan
On the back of the highly satisfactory results achieved during the present strategy period, which will expire at the end of 2024, Sydbank is announcing today a new 3-year strategy plan to ensure that the Bank will continue the positive momentum demonstrated since 2014. The strategy is called: “Bigger Sydbank – value for all through advice and relationships”.

Q1-Q3 2024 – highlights
- Profit for the period of DKK 2,396m equals a return on equity of 21.7% p.a. after tax
- Core income of DKK 5,447m is 4% higher compared to the same period in 2023
- Trading income of DKK 223m compared to DKK 240m in the same period in 2023
- Costs (core earnings) of DKK 2,453m compared to DKK 2,335m in the same period in 2023
- Core earnings before impairment of DKK 3,217m are 3% higher compared to the same period in 2023
- Impairment charges for loans and advances etc represent an expense of DKK 87m
- Bank loans and advances have risen by DKK 8.0bn, equal to an increase of 11% compared to year-end 2023
- The CET1 ratio stands at 18.0%, equal to a decrease of 0.9pp compared to year-end 2023
CEO Mark Luscombe comments on the result:
- It is positive that we were able to lift core income and total income in the first 9 months of the year from their all-time high levels last year. Costs have risen by 3% – excl Coop Bank – compared with a year ago. Thanks to the Bank’s constant focus on becoming increasingly efficient, the increase in costs is smaller than the effects of the agreed overall pay rises and the abolition of Great Prayer Day. Profit for the first 9 months of the year is on the same level as that of the record year 2023 and equals a return on equity of 21.7%, which is highly satisfactory.
Mark Luscombe comments on developments in business volume:
- We are pleased that the continued effect of our strong focus on providing value-creating advice to our customers has boosted our business volume in terms of bank loans and advances, deposits and the investment area. Bank loans and advances constitute DKK 82.5bn – an increase of DKK 8.0bn during the period. Deposits make up DKK 114.8bn – – and are thus at a historically all-time high.
Board chairman Lars Mikkelgaard-Jensen comments on Sydbank’s new 3-year strategy plan:
As a natural next step for the current strategy “Growing our business” we will be raising the bar and we will create a Bigger Sydbank in the next strategy period. This means that we will maintain our starting point as Denmark’s Corporate Bank and increase our market share in the corporate segment. Our ambition is to have more satisfied retail clients and significantly more retail clients and Private Banking clients. Assets under management will increase as a result of our customer focus within Wealth Management.

Mark Luscombe elaborates:
Our strategy “Bigger Sydbank” centres on 5 themes: “Customer-focused”, “Bigger and efficient”, “Attractive and cooperating”, “Data, digitization, AI and security”, and “ESG integrated in core business”. The themes must go hand in hand with a level of profitability at the very top of the Danish banking industry. We will continue to focus on the customer and be the workplace for some of the industry’s brightest and most dedicated employees.

Outlook for 2024
- Moderate growth is projected for the Danish economy.
- Profit after tax is expected to be in the range of DKK 2,800-3,100m.
- The outlook is subject to uncertainty and depends on financial market developments and macroeconomic factors which may affect eg the level of impairment charges.
Additional information
Jørn Adam Møller, Deputy Group Chief Executive, Tel +45 74 37 20 30
Lars Grubak Lohff, Press Manager Tel +45 20 31 54 65

Attachments
- SM 51 UK
- Interim Report Q1-Q3 2024
The MIL Network –
January 25, 2025
MIL-OSI Economics: Historical data on currency exposure and hedging are now available

Source: Danmarks Nationalbank

Insurance and pension

30 October 2024Statistics period: September 2024

In May 2024, Danmarks Nationalbank published an extended statistic on insurance and pension companies’ currency exposure and hedging including data from January 2019 onwards.* The statistic has now been expanded to also include historical data from January 2015 onwards, whereby the time series now covers close to a full decade. You can read more about recent developments in the dollar hedge ratio of the Danish insurance and pensions companies in the newest edition of Danmarks Nationalbank’s biannual analysis Monetary and financial trends.**

The data coverage approaches a full decade

Note:

Danish insurance and pension companies’ dollar hedge ratio measured as the hedged dollar exposure divided by the total dollar exposure.

Source:

Danmarks Nationalbank, DNFPVALE.

* See Extended Statistic on Currency Exposure and Hedging (link).

** See Policy rates have been lowered, but monetary policy remains restrictive, Danmarks Nationalbank Analysis (Monetary and financial trends), no. 13, September 2024 (link).

MIL OSI Economics –

January 25, 2025
MIL-OSI Asia-Pac: SFST’s speech at ASIFMA’s 5th Annual Sustainable Finance Conference: Enabling Transition Finance in Asia (English only)

Source: Hong Kong Government special administrative region

Following is the speech by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, at ASIFMA’s 5th Annual Sustainable Finance Conference: Enabling Transition Finance in Asia today (October 30):

Distinguished guests, ladies and gentlemen,

It is both an honour and a privilege to stand before you today at ASIFMA’s 5th Annual Sustainable Finance Conference. I would like to extend my heartfelt gratitude to ASIFMA (Asia Securities Industry & Financial Markets Association) for hosting this significant event, now in its fifth year, and for bringing together an impressive gathering of leaders and advocates in the realm of sustainability. We are here to engage in critical discussions about how we can collectively scale and enable transition finance in Asia – a topic that has never been more urgent.

Today’s theme, “Enabling Transition Finance in Asia”, reflects a vital aspect of our collective effort to combat climate change. As we know, climate change poses unprecedented challenges to our societies and economies. We must take bold steps to address these challenges. Hong Kong serves as a crucial financial gateway in Asia, bridging the East and West. This unique position makes it an ideal location for managing and channelling investments aimed at sustainable development. With our robust banking system, flourishing financial market, and strong regulatory framework, Hong Kong is well-positioned to facilitate transition finance.

As we gather here today, we are acutely aware of the challenges that climate change poses to our societies and economies. Today, I would like to outline Hong Kong’s efforts in driving sustainability, encapsulated in four key “C” pillars: Capital, Creation, Commitment, and Collaboration.

Capital – A vital tool for green financing

The first “C” is Capital, which highlights Hong Kong’s well-developed capacity for green investment. This is not just a financial mechanism; it is a vital tool for green financing that underpins our commitment to sustainability. Hong Kong has set an ambitious goal to achieve carbon neutrality by 2050, with a target to halve carbon emissions by 2035. To realise these goals, we are implementing a range of policies and initiatives designed to promote green finance and support the transition to a low-carbon economy.

As Asia’s leading international financial centre and green finance hub, Hong Kong stands ready to channel international investment toward sustainable purposes. Our financial ecosystem is equipped to facilitate a robust green transition. Recent market research estimates that sustainable bond issuance will approach US$1 trillion in 2024. Moreover, it is projected that annual climate investments must reach US$9 trillion by 2030 and US$10 trillion by 2050, underscoring the immense demand for green finance.

To this end, we launched the Government Green Bond Programme (renamed Government Sustainable Bond Programme) in 2019. This initiative aims to raise funds for government green projects that contribute to sustainable development. I am pleased to report that our issuance has been attracting strong interest from both local and international investors. For example, for the issuance in July this year, our offer of HK$25 billion of bonds attracted more than HK$120 billion equivalent in orders, about five times of the offer size. So far a total of HK$220 billion in government green bonds has been successfully issued, including a diverse array of bonds – retail, institutional, and tokenised – across multiple currencies and tenors. These efforts have effectively raised funds for the Government’s green projects, reinforcing our commitment to fostering a greener future for Hong Kong.

The momentum towards sustainable investment has gained unprecedented traction in our financial markets. Over 230 ESG (environmental, social, and governance) funds have been authorised by our Securities and Futures Commission, collectively managing over HK$1.3 trillion in assets. This represents a significant year-on-year increase of 19 per cent in the number of funds and an 8 per cent rise in assets. These encouraging statistics reflect a growing recognition among investors of the importance of sustainable finance and their commitment to supporting responsible investment initiatives.

Creation – innovating the green fintech market

The second “C” is Creation, which emphasises Hong Kong’s role in innovation for adoption of green fintech. In addition to capital, technology plays a crucial role in green transition. The global shift toward sustainability is not just creating new markets; it is also driving innovation and opening up investment opportunities. The Government recognises that sustainable development and financial innovation must go hand in hand. By positioning Hong Kong as a leader in sustainable finance, we can attract capital, stimulate innovation, and contribute to a more sustainable future for all.

As we strive to integrate fintech with green finance and accelerate our green transformation, we are actively expanding the green fintech ecosystem. This year in June, we launched the Green and Sustainable Fintech Proof-of-Concept Funding Support Scheme. This initiative aims to provide early-stage funding to technology companies or research institutes conducting green fintech activities, allowing them to collaborate with local enterprises to co-develop new projects that address industry pain points. By facilitating the completion of the commercialisation and proof-of-concept stages, this scheme aims to enable wider adoption of green and sustainable fintech solutions in our local business landscape.

Fostering partnerships that drive innovation in financial products is another crucial element in promoting sustainable practices and ensuring that our financial systems are resilient and future-ready. Earlier this year, in March, we launched the Prototype Hong Kong Green Fintech Map, developed in collaboration with various stakeholders. This map serves as a one-stop resource, providing comprehensive information on the current status of green fintech companies in Hong Kong and the related services available. By enhancing the visibility of these companies, we support their growth and ultimately contribute to our vision of a greener and more sustainable financial ecosystem.

Commitment – building a comprehensive foundation

The third “C” is our commitment to building a comprehensive green finance ecosystem. Recent market studies indicate that approximately 90 per cent of issuance in the green bond market relates to financing climate transition projects. Transition finance encompasses more than just capital; it empowers various industries to evolve towards sustainable practices while acknowledging that the journey to a low-carbon economy varies across sectors.

The time is ripe for Hong Kong to seize the opportunities ahead in developing a sustainable community. We are committed to enabling transition finance in Asia and working towards a more sustainable future. As part of this commitment, Hong Kong is a forerunner in setting regulatory requirements and guidance for the financial sector. In the recent Policy Address, the Chief Executive announced significant steps towards enhancing our financial reporting framework.

We will soon launch a roadmap for the full adoption of the International Financial Reporting Standards – Sustainability Disclosure Standards (ISSB Standards). Our goal is clear: We aim for Hong Kong to be among the first jurisdictions to align our local requirements with these internationally recognised standards. This initiative not only underscores our commitment to transparency and sustainability but also positions Hong Kong as a leader in the global financial landscape.

Transparency and accountability are essential for the success of sustainable finance. As a crucial initial step, Hong Kong Stock Exchange has introduced new climate-related disclosure requirements. These requirements, developed based on the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures, will be implemented for listed companies under a phased approach starting next year. These initiatives reflect our ongoing efforts to foster a sustainable environment that resonates throughout our financial ecosystem.

Collaboration – the key to a sustainable future

The last “C”, but certainly not least, is collaboration. While government initiatives are crucial, the transition to a sustainable economy cannot be achieved in isolation. It requires collaboration among all stakeholders – the Government and regulators, financial institutions, corporations, and the community.

In 2020, the Government established the Green and Sustainable Finance Cross-Agency Steering Group, comprising representatives from various sectors. This group is working diligently to formulate strategies that enhance Hong Kong’s role as a green finance hub and engage industry participants and relevant stakeholders to advance sustainable finance in Hong Kong.

As we look ahead, we are also mindful of the international context. In just a few weeks, the global climate challenge will be front and centre at COP29 (29th Conference of the Parties to the United Nations Framework Convention on Climate Change) in Azerbaijan. This conference presents an opportunity for world leaders to ramp up climate action and provide stronger protections for those on the frontlines of climate change. COP29 is being billed as the “finance COP”, a pivotal moment for countries to establish a new global climate finance goal. We look forward to actively exploring collaboration with other regions on zero-carbon projects and initiatives, enhancing our collective capacity to address these urgent challenges.

Closing

In closing, the journey to a sustainable future is one that requires capital, creation, commitment, and collaboration. As we gather here today, we reaffirm our shared responsibility to enable transition finance in Asia and harness the power of finance to drive meaningful change. Together, we can create a better world for future generations.

Your commitment to advancing the agenda of sustainable finance in Asia is truly inspiring. I am grateful for your attention to this pressing global issue, and I look forward to the fruitful discussions and insights that will emerge from today’s conference. Together, let us turn our vision of a sustainable future into a reality.

Thank you.

MIL OSI Asia Pacific News –

January 25, 2025
MIL-OSI Asia-Pac: LCQ22: Combating sales activities of duty-not-paid cigarettes

Source: Hong Kong Government special administrative region

     Following is a question by Dr the Hon Ngan Man-yu and a written reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (October 30):

Question:

     It has been reported that the sales activities of duty-not-paid cigarettes (illicit cigarettes) have become increasingly rampant in recent years. Lawbreakers have employed adolescents with little life experience to distribute illicit cigarette leaflets, commonly known as “dim sum sheets”, in public housing estates, and there are even “cheap whites promotion teams” wearing tops printed with the brand names of “cheap whites” (i.e. illicit cigarettes packaged in the same way as duty-paid cigarettes) to promote illicit cigarettes to smokers in busy areas. In this connection, will the Government inform this Council:

(1) of the following information on illicit cigarette cases intercepted at source by the Customs and Excise Department (C&ED) in the past three years: the number of such cases, the number of persons involved in such cases, and the market value of the illicit cigarettes involved; what measures the authorities have put in place to step up efforts to intercept at source the smuggling of illicit cigarettes into Hong Kong;

(2) of the following information on the law enforcement operations conducted by C&ED to combat illicit cigarette activities in the past three years: the number of such operations, the number of cases detected, the number and dutiable value of the illicit cigarettes seized, the number and age distribution of persons arrested (with a breakdown by seller and buyer), and the penalty imposed on the convicted persons;

(3) regarding the recruitment of young people by lawbreakers to promote illicit cigarettes, whether C&ED and the Tobacco and Alcohol Control Office (TACO) of the Department of Health have received the related reports, and of the relevant follow-up situations; what measures C&ED and TACO have put in place to prevent young people from participating in the promotional and trafficking activities of illicit cigarettes;

(4) as it has been reported that lawbreakers have set up websites to advertise illicit cigarettes on the Internet, and to advertise and sell illicit cigarettes through social media platforms and instant messaging applications (e.g. Facebook, Instagram and Telegram), what measures C&ED and TACO have put in place to intercept such advertising and sales activities, and whether it has assessed the effectiveness of such measures;

(5) of the total number of reports on suspected illicit cigarette activities received by C&ED through its 24-hour hotline, dedicated crime-reporting email account or online form in the past three years, and the relevant follow-up situations; and

(6) whether C&ED and TACO have considered, by drawing reference from the policy on combating abuses of public housing, setting up a financial reward mechanism for reporting to encourage members of the public to report the sale of illicit cigarettes, so as to reduce the promotional and trafficking activities of illicit cigarettes in public housing estates?

Reply:

President,

     Tobacco products are dutiable commodities. Tobacco duty is payable by importers or manufacturers according to the specified rates under the Dutiable Commodities Ordinance (Cap. 109). To protect Government revenue, the Hong Kong Customs and Excise Department (C&ED) has been combating smuggling and trading of illicit cigarettes on different fronts. As for matters relating to tobacco control, they are mainly enforced by the Tobacco and Alcohol Control Office (TACO) of the Department of Health according to the Smoking (Public Health) Ordinance (Cap. 371).

     Upon consultation with the Health Bureau, the consolidated reply to the question is as follows:

(1) C&ED has been closely monitoring the control points and illicit cigarettes activities in the city closely, and has strengthened intelligence exchange with the Mainland and overseas law enforcement agencies with a view to intercepting illicit cigarettes at source. The relevant numbers on interception of illicit cigarettes at various control points by C&ED from January 2021 to September 2024 are set out below:

Year
Number of cases
Number of persons arrested
Number of illicit cigarettes seized
(million)
Estimated market value
($million)

2021
3 156
2 856
247
678

2022
2 575
2 246
634
1,753

2023 (Note 1)
10 452
10 276
554
1,896

2024 (Note 1)
(Up to September)
14 198
13 783
191
841

Note 1: The significant increase in the number of cases and arrests as compared with 2022 is mainly due to the large increase in the number of incoming passengers intercepted at control points for possessing tobacco products exceeding the duty-free quantity after the full resumption of normal travel between Hong Kong and the Mainland.

(2) From January 2021 to September 2024, C&ED has conducted 11 large-scale special operations to combat illicit cigarette activities at various control points, as well as telephone-ordering activities for or distribution of flyers of illicit cigarettes at public rental housing estates (PRH). In addition, C&ED has been closely monitoring the latest development in the market and strengthened intelligence gathering. If a retailer is found to be selling duty-not-paid cigarettes, C&ED will take resolute enforcement actions. The enforcement figures of C&ED in combating illicit cigarettes through various channels (including daily inspections, interception at various control points, large-scale special operations, etc.) from January 2021 to September 2024 are set out below:

Year
Number of cases
Number of persons arrested
Number of illicit cigarettes seized
(million)
Estimated market value
($million)
Duty payable
($million)

2021
4 009
3 555
427
1,176
815

2022
3 438
2 813
732
2,017
1,395

2023Note
11 806
10 994
652
2,256
1,541

2024 (Note 2)
(Up to September)
15 014
14 397
367
1,639
1,208

Note 2: The significant increase in the number of cases and arrests as compared with 2022 is mainly due to the large increase in the number of incoming passengers intercepted at control points for possessing tobacco products exceeding the duty-free quantity after the full resumption of normal travel between Hong Kong and the Mainland, and the seven large-scale special operations conducted by C&ED in 2023 and 2024.

     The number of arrested persons involved in buying or selling illicit cigarettes from January 2021 to September 2024 are set out below:

Year
Arrested persons
Age distribution

Sellers
Buyers
Total
20 or below
21 to 40
41 to 60
61 or above

2021
259
206
465
13
99
172
181

2022
117
301
418
26
98
165
129

2023
185
401
586
28
145
222
191

2024
(Up to September)
244
262
506
15
86
207
198

     During the above period, the penalties imposed by the court on illicit cigarette cases ranged from a minimum of $200 (involving 200 illicit cigarettes) to a maximum of imprisonment of 18 months (involving about 12 million illicit cigarettes).

(3), (4) and (6) According to the Smoking (Public Health) Ordinance (the Ordinance), no person shall display or cause to be displayed any smoking product advertisement in any form. Any person who contravenes the prohibitions is liable on summary conviction to a maximum fine of $50,000, and in the case of a continuing offence, to a further penalty of $1,500 for each day during which the offence continues. The distribution of smoking product advertisements in PRH not only involves peddling of suspected duty-not-paid smoking products, but also affects the law and order and management of the estates. Hence, TACO has all along been co-operating with the relevant departments with a view to combating these illegal activities more effectively. A co-operation mechanism has been established among TACO, the Police and the Housing Department to conduct enforcement actions against illegal activities of distributing smoking products advertisements in PRH. Since January this year, the relevant departments have conducted over 220 joint operations in PRH in Hong Kong. During the operations, in addition to patrolling the estates, officers from TACO also provided information to the estate security workers and residents on how to deal with suspected violation. They were also reminded to observe the laws and not to purchase smoking products from unknown sources. TACO will refer any suspected cases of illicit cigarettes that involve violations of the Dutiable Commodities Ordinance to C&ED for further investigation.

     Regarding the allegation that some people are distributing illicit cigarettes on the streets, under the Ordinance, no person may give smoking product to another person for promotion or advertisement. Any person who contravenes the prohibitions is liable on summary conviction to a maximum fine of $25,000. TACO has conducted multiple proactive inspections at relevant locations. No illegal activity has been found so far. TACO will closely monitor activities contravening the Ordinance (including those promoting or advertising smoking products), which include arranging covert inspections and taking enforcement actions on an ongoing basis. In addition, TACO will also conduct online inspections. If online smoking product advertisements suspected of contravening the law are found, TACO will request the relevant internet service providers and social media platforms to remove the relevant content.

     From January 2023 to August 2024, TACO issued 124 summonses and 43 warning letters regarding offences of displaying or distributing smoking product advertisements, and removed around 2 550 websites and social media accounts/posts involving advertisements of smoking products. Since 2021, 14 offenders have been convicted of the offence related to distributing smoking product advertisements, with a maximum penalty of $8,000.

     In addition, C&ED has also been conducting online inspections targeting suspected sale of illicit cigarettes. When suspected cases are found, C&ED will immediately express concerns to and follow up with the relevant websites or social media platforms, including blocking the accounts concerned and removing the relevant illicit cigarettes advertisements. From January to September 2024, a total of 429 relevant advertisements have been removed.

     In order to combat illicit cigarettes in a more effective manner and protect non-smokers from tobacco hazards, the Government announced its plan in June this year to implement the next-phase tobacco control measures. They include the introduction of a duty stamp system in order to differentiate duty-paid cigarettes from duty-not-paid ones; to require proofs that tobacco products sold at a price lower than the tobacco duty are duty-paid; and to increase the maximum penalty for dealing with, possession of, selling or buying duty-not-paid cigarettes. The Government expects that the above measures will strengthen the deterrent effect and enhance the effectiveness of law enforcement agencies in combating illicit cigarettes. At present, the Government has no plan to introduce financial incentives for reporting illicit cigarette cases. However, C&ED will seriously follow up on reports of suspected illicit cigarette activities.

(5) The numbers of reports on suspected illicit cigarettes activities received by C&ED through different channels from January 2021 to September 2024 are set out below:

Year
Reports

2021
3 054

2022
3 526

2023
3 476

2024
(Up to September)
5 640

     C&ED will follow up each report and refer it to frontline staff for investigation if necessary. Since the investigations are confidential, C&ED will not disclose their progress and details.

MIL OSI Asia Pacific News –

January 25, 2025
MIL-OSI Asia-Pac: 2024 Edition of “Hong Kong Annual Digest of Statistics” published

Source: Hong Kong Government special administrative region

2024 Edition of “Hong Kong Annual Digest of Statistics” published
2024 Edition of “Hong Kong Annual Digest of Statistics” published
***************************************************************************

The 2024 Edition of the “Hong Kong Annual Digest of Statistics” was published by the Census and Statistics Department (C&SD) today (October 30). The Digest is available for downloading at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1010003&scode=460). The Digest is a comprehensive and convenient collection of official statistics. It contains some 300 statistical tables on a wide range of topics, including: – Population- Labour- External trade- National income and Balance of Payments- Prices- Business performance- Innovation and technology- Energy- Housing and property- Government accounts, finance and insurance- Transport, communications and tourism- Education- Health- Social welfare- Law and order- Culture, entertainment and recreation- Environment, climate and geography This Digest aims to provide key annual statistical series on various aspects of the social and economic developments of Hong Kong. Most of the data series presented reflect the latest situation covering a time span of the last decade, enabling readers to understand the trends of development in recent years. Descriptions of the scope of the statistical data and definitions of the terms used in this Digest are provided in the “Concepts and methods” in each chapter. Enquiries about the “Hong Kong Annual Digest of Statistics” can be directed to the Statistical Information Dissemination Section (1) of the C&SD (Tel: 2582 5073; email: gen-enquiry@censtatd.gov.hk).

Ends/Wednesday, October 30, 2024Issued at HKT 16:00

NNNN

MIL OSI Asia Pacific News –

January 25, 2025
MIL-OSI Asia-Pac: Land Registry releases Trading Fund Annual Report

Source: Hong Kong Government special administrative region

     The Land Registry (LR) today (October 30) released the Land Registry Trading Fund (LRTF) Annual Report 2023/24.

     â€‹The Land Registrar, Ms Joyce Tam, said, “Due to an overall decrease in business volume of registration of documents, searches, copying, reports on title and e-Alert services, the LRTF recorded a loss from operations (i.e. before interest income) of $36.1 million and a negative return on fixed assets of -10.5 per cent for the financial year ending March 31, 2024. After taking into account interest income, the LRTF achieved a profit of $18.3 million.”

     The total number of documents delivered for registration and searches of land registers decreased by 12.6 per cent and 10.2 per cent respectively when compared to the financial year of 2022/23.

     Ms Tam said the LR continues to implement initiatives to reform the land registration system and is working on the amendment bill on the Land Titles Ordinance (Cap. 585) (LTO). The target is to introduce the amendment bill into the Legislative Council (LegCo) in the first quarter of 2025. The implementation of the title registration system under the LTO aims to provide better assurance and greater certainty of property titles and simplify conveyancing procedures.

     The LR is also committed to promoting digitalisation and enhancing services to support the property market and the economy. Ms Tam said that the LR is working with the Digital Policy Office and the Hong Kong Monetary Authority (HKMA) on land data interchange through the secure data gateway of the Government and the HKMA to facilitate enhancement of banking services. The initiative is targeted to be implemented progressively in 2025.

     The report was tabled in the LegCo today. It can also be viewed or downloaded from the LR’s website (www.landreg.gov.hk).

MIL OSI Asia Pacific News –

January 25, 2025
MIL-OSI Africa: Islamic Corporation for the Development of the Private Sector (ICD) Commits Eur 40 Million to Nakkas- Basaksehir Section of Türkiye’s Northern Marmara Highway Project
Source: Africa Press Organisation – English (2) – Report:

ISTANBUL, Turkey, October 30, 2024/APO Group/ —
- ICD is investing EUR 40 million in the Nakkaş-Başakşehir section as part of a EUR 1.04 billion funding package.
- The project incorporates solar energy and LED lighting, aiming to cut energy use and emissions significantly.
- It’s backed by a consortium led by Rönesans Holding, with support from MDBs and ECAs.
The Islamic Corporation for the Development of the Private Sector (ICD) (www.ICD-ps.org) has signed a EUR 40 million to co-finance the Nakkaş-Başakşehir section of Türkiye Northern Marmara Highway Project.

The Project aimes to enhance Istanbul’s east-west connectivity, improve road safety and reduce congestion. It is being developed under a build-operate-transfer agreement by a consortium led by Rönesans Holding A.Ş. in partnership with Samsung C&T Corporation and other Korean investors. It involves a 31.3-km toll road, including a 1.6-km cable-stayed bridge and multiple overpasses and underpasses.

ICD’s EUR 40 million contribution is part of a broader EUR1.04 billion senior debt package, fully financed by international institutions, including the European Bank for Reconstruction and Development (EBRD), the Asian Infrastructure Investment Bank (AIIB), the Islamic Development Bank (IsDB), alongside Atradius and SERV as European export credit agencies, ICIEC, and a consortium of commercial lenders.

Thanks to Solar Energy Production System to be installed within the scope of the Nakkaş-Başakşehir project, which has “sustainability” at the center of its design, the clean energy obtained from solar panels will meet the energy needs of the highway’s operation and management (O&M) center and service stations.

The installation of over 4,500 LED lamps, replacing sodium lamps, will cut energy consumption by 37.5%, saving over 35 MWh. Within the scope of the project, in which all O&M highway vehicles are planned to be hybrid or electric, it is expected to save approximately 112 thousand liters of fuel annually.

While the Nakkaş-Başakşehir Highway Project is expected to prevent 7.9 million tons of greenhouse gas (GHG) emissions in 30 years, in particular, it will reduce particulate matter (PM) emissions by 1,399 tons, nitrogen oxides (NOx) by 58,699 tons and sulfur dioxide (SO2) by 95 tons. tons reduction is aimed.

MIL OSI Africa –
January 25, 2025
MIL-OSI Russia: Preparations for the 2025 admission campaign have started: the Academic Council of the State University of Management discussed all the nuances

Translation. Region: Russian Federation –

Source: State University of Management – Official website of the State –

On October 29, 2024, a meeting of the Academic Council of the State University of Management was held. Those gathered discussed the results of the 2024 admissions campaign and preparations for organizing admissions in 2025.

The meeting began traditionally with a formal part. Irina Merkulova and Nikolay Malyshkin received associate professor certificates, Sergey Lenshin was awarded a diploma of the national Father’s Recognition award in the nomination “Scientific Works and Research in the Field of Demography and Culture”. Of course, they did not forget to congratulate the birthday boys of the month, after which the council members began the official part.

The first issue on the agenda was the nomination of GUU teachers for the academic title of associate professor. Council Secretary Marina Zhukova reported on the documents submitted by the candidates and the decisions made following their consideration. Those gathered made their choice by secret ballot.

Acting Vice-Rector Nikolai Mikhailov made a proposal to petition for the nomination of SUM employees for departmental awards of the Ministry of Science and Higher Education of the Russian Federation, which was unanimously supported.

Head of the International Cooperation Department Inessa Bogatyreva informed those gathered about the development of the university’s international activities and the organization of training foreign students at our university.

“The most popular areas of study among foreign citizens are management and economics. Significantly fewer applicants enter law, state and municipal administration, personnel management, advertising and public relations, business informatics and hotel business,” noted Inessa Yuryevna.

Head of the Department for Organizing Admissions of Applicants Vadim Dikikh presented a report on the results of the admissions campaign for undergraduate, graduate and postgraduate programs in 2024.

“This year, we used new tools for accepting applicants on a targeted basis, new practices for working with applicants. As in the previous year, the vast majority of applications were submitted digitally. Among the interesting facts, I would like to note the reluctance of applicants to answer phone calls, preferring to communicate exclusively via messengers, which is also worth considering in future work,” the speaker emphasized.

Continuing the topic, Vadim Dikikh presented for approval regulatory and legal acts on the organization of admission in 2025 for bachelor’s and master’s degree educational programs and training of scientific personnel in postgraduate studies.

The meeting also discussed structural changes at the State University of Management, approved new continuing education programs, and agreed on student nominations for the E. T. Gaidar scholarship and tuition discounts.

Subscribe to the TG channel “Our GUU” Date of publication: 10/30/2024

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

MIL OSI Russia News –

January 25, 2025
MIL-OSI China: China strongly opposes US rule on investment restrictions against China

Source: China State Council Information Office

China strongly opposes the U.S. final regulations on investment restrictions aimed at China, a spokesperson with the Ministry of Commerce said on Wednesday.

China has lodged solemn representations with the United States and reserves the right to take action, said the spokesperson in a statement published on the ministry’s website.

The United States has overstretched the concept of national security to adopt discriminatory investment restrictive measures against China, which is a typical non-market practice, the spokesperson said.

The spokesperson noted that the U.S. restrictions target sectors like chips, AI and quantum computing. Most industries related to these fields are not connected to national security, yet they will all be affected by the U.S. ban.

This will disrupt normal economic and trade cooperation between Chinese and U.S. companies, harming the interests of businesses in both countries, the spokesperson said.

China has noticed that many U.S. business associations and companies have expressed concerns that U.S. investment restrictions against China will cause American companies to give up the Chinese market to competitors from other countries, severely damaging U.S. interests, the spokesperson stated.

It is hoped that the United States will respect market economy laws, properly define the boundaries of national security in economic and trade fields, and stop politicizing and weaponizing economic and trade issues, the spokesperson added.

MIL OSI China News –

January 25, 2025
MIL-OSI United Kingdom: Labour urged to use wealth tax on super-rich to fund green transition

Source: Scottish Greens

30 Oct 2024 Finance

By taxing the super wealthy we can fund our shift to a fairer, greener and better economy.

More in Finance

The Labour government must tax the super-rich and polluters to fund our green transition and tackle the climate and nature emergencies, say the Scottish Greens.

Speaking ahead of today’s UK Budget statement, the party’s Co-leader, Lorna Slater, has urged the Chancellor to apply a wealth tax on the wealthiest 1% of households in the UK – those with assets worth £3.4 million and above.

Analysis from the University of Greenwich suggests that this tax would raise over £70 billion a year and potentially up to £130 billion.

Ms Slater said:

“The world is burning around us. We urgently need to see climate leadership from Downing Street.

“There is more than enough money to support our transition to a greener future and create thousands of high quality, well paid green jobs, but so much of it is being hoarded by a tiny number of extremely wealthy people who don’t need it.

“The solution is staring us right in the face. By asking the richest people and corporations to pay their fair share we can transform our economy and protect future generations.

“Making the change is essential for our climate, but it is also crucial for our economy. The UK has a huge opportunity, but it has been squandered by 14 years of a Tory government that actively undermined our climate efforts while giving handouts and tax breaks to its super-wealthy friends and donors.

“Labour must show the level of ambition that is needed by making a generation-defining investment in clean, green renewable energy and nature restoration and ending the climate vandalism of the Tories.”

Ms Slater added:

“The pain that households and families have suffered over the last 14 years was not inevitable. The cuts and austerity were a political choice, and one that Labour has doubled down on by cutting Winter Fuel Payments and refusing to lift the cruel two child cap. Labour can put an end to the cuts and support vital services like our NHS and schools.”

The tax, supported by the Scottish Greens, would start at a marginal rate of 1%, rising to 5% for those with £5.7 million or more (the richest 0.5%), and 10% for those with £18.2 million (the richest 0.15%).

MIL OSI United Kingdom –

January 25, 2025
MIL-OSI China: Chinese able to receive meteorological alerts up to 8 minutes in advance

Source: People’s Republic of China – State Council News

BEIJING, Oct. 30 — With the improvement of China’s meteorological disaster risk warning capability, meteorological alerts can be delivered to the public within three to eight minutes, covering 98.8 percent of the country’s population, China Science Daily has reported.

Xiong Shaoyuan, deputy chief of the China Meteorological Administration (CMA), told a press conference on Tuesday that the accuracy of heavy rain warnings has reached 93 percent, and the lead time for severe convective weather warnings has increased to 43 minutes, marking a significant improvement for the country’s disaster control.

China’s emergency response mechanism, led by meteorological disaster warnings, has been continuously strengthened. A comprehensive national survey of 10 major types of meteorological disaster risks has been completed, and 45 types of meteorological disaster risk products are now released on a daily basis, said Xiong.

Additionally, the services for warning against risks such as flash floods, geological disasters, and forest and grassland fires have been digitized with high precision, said the official.

Xiong further said that meteorological services have been extended to more than 70 sectors of the national economy, contributing to smooth transportation, stable energy supply, improved livelihood and the development of new quality productive forces.

For example, the meteorological service system for agriculture covers the entire chain of grain production, and in collaboration with the Ministry of Agriculture and Rural Affairs, the CMA issued 12 types of agricultural meteorological disaster risk warnings, said Xiong.

This year, in response to the CMA’s hot and dry wind warnings, the country’s wheat producing regions have taken various measures of disaster control, which have brought an increase in the yield of winter wheat by about 1.5 billion kilograms, he said.

MIL OSI China News –

January 25, 2025
MIL-OSI Asia-Pac: LCQ6: BUD Fund

Source: Hong Kong Government special administrative region

Following is a question by Dr the Hon Kennedy Wong and a reply by the Secretary for Commerce and Economic Development, Mr Algernon Yau, in the Legislative Council today (October 30):

Question:

     In recent years, the Government has launched many enhancement measures to the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund). In this connection, will the Government inform this Council:

(1) given that the Government launched the “E-commerce Easy” under the BUD Fund on July 15 this year, with a view to assisting enterprises in opening up the Mainland market through developing electronic commerce (e-commerce) business, of the respective numbers of relevant applications received and approved by the Government so far, as well as the average and maximum amounts of funding involved;

(2) given that at present, enterprises applying for the BUD Fund are required to provide proof of substantive operations and commercial transactions in Hong Kong, but it is learnt that many enterprises with trademarks and other intellectual property rights registered in Hong Kong have substantive operations on the Mainland and overseas, thus rendering them unable to successfully apply for the Fund, and there are views that the original intention of the Fund is to assist enterprises in enhancing their competitiveness, whether the Government will, in the light of the relevant situation, review the eligibility criteria for applying for the Fund; if so, of the details; if not, the reasons for that; and

(3) given that there are views pointing out that the application of artificial intelligence (AI) in cross-border e-commerce is particularly innovative, such as the use of AI key opinion leaders for marketing of goods, whether the authorities will consider expanding the funding coverage of “E-commerce Easy” to include the application of AI, thereby enabling enterprises to make better use of the funding to establish marketing systems; if so, of the details; if not, the reasons for that?

Reply:

President,

     The Government is dedicated to assisting Hong Kong enterprises, including small and medium enterprises (SMEs) and start-ups, in developing brands, upgrading business operations and enhancing competitiveness. One such measure is the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund), which provides funding support for non-listed Hong Kong enterprises to develop business in the Mainland and 38 economies with which Hong Kong has signed free trade agreements and/or investment promotion and protection agreements.

     The reply to the three parts of the question is as follows:

(1) With a view to assisting Hong Kong enterprises in developing the Mainland sales market through electronic commerce (e-commerce) business, the Government launched “E-commerce Easy” under the BUD Fund on July 15 this year to allow enterprises to make use of $1 million funding flexibly within the cumulative funding ceiling of $7 million per enterprise to implement e-commerce projects on the Mainland. Since the launching of “E-commerce Easy”, the number of applications received has been gradually increasing for each month. As at end September this year, 102 applications have been received. So far, eight applications have been approved or approved with conditions. Other applications are being processed earnestly by the BUD Fund Secretariat, the Hong Kong Productivity Council, which will complete the vetting as soon as possible upon receipt of clarification on the questions raised by the Secretariat and supplementary documents from applicant enterprises. So far, the average funding amount of the approved applications is about $470,000, whereas the largest funding amount approved is about $990,000.

(2) The BUD Fund aims to assist Hong Kong enterprises in exploring more diversified markets through developing brands, upgrading business operations and developing sales. As such, the application eligibility is enterprise-based, requiring that an applicant enterprise must be registered in Hong Kong under the Business Registration Ordinance (Cap. 310) and has substantive business operations in Hong Kong, but is not premised on the registration location of the relevant intellectual property rights.

     Since the setting up of the BUD Fund in 2012, the requirement of having substantive business operations in Hong Kong has been in place, and was specified in the relevant Legislative Council Finance Committee paper for setting up the BUD Fund. As such, enterprises which solely operate outside Hong Kong do not meet the application eligibility. Considering that the BUD Fund involves public funds, we should focus the resources on enterprises with substantive business operations in Hong Kong in order to maximise the benefits brought about by the BUD Fund to Hong Kong’s economy and to such enterprises, thereby meeting the public expectation. We have no plan to relax this requirement.

     In fact, many Hong Kong enterprises have developed the Mainland and overseas markets with the BUD Fund’s support, including establishing new offices and retail points at target markets, purchasing machinery/equipment, placing advertisements, thereby benefiting their business operations in both Hong Kong and outside markets. Past success stories of different types of applications are set out on the website of the BUD Fund for the reference of applicant enterprises.

     Since the launching of the BUD Fund in 2012, the Government has kept on reviewing and enhancing its operational arrangements from time to time, having regard to market changes and the needs of the trade. Over the years, the Government has launched a number of enhancement measures, including expanding the geographical scope of the BUD Fund in phases from only the Mainland originally to 39 economies at present, gradually increasing the cumulative funding ceiling per enterprise from $500,000 to $7 million, launching “Easy BUD” in June 2023 to expedite the processing of applications involving designated measures with a smaller funding amount, as well as launching “E-commerce Easy” in July this year to assist enterprises in developing the Mainland sales market through e-commerce business.

     In the 2024 Policy Address released earlier, the Chief Executive announced the injection of $1 billion into the BUD Fund to assist SMEs in upgrading their business operations and developing new markets. In view of the rapid development of the e-commerce market of the Association of Southeast Asian Nations (ASEAN), and that the ASEAN is Hong Kong’s second-largest trading partner, the geographical coverage of “E-commerce Easy” will be expanded to the 10 ASEAN countries to support enterprises to develop the ASEAN market through digital transformation. We will also provide more targeted funding support for SMEs to implement green transformation projects. We expect that the above measures will be rolled out in the first half of 2025.

(3) The funding scope of the BUD Fund – “E-commerce Easy” is broad and covers many measures related to e-commerce, including the establishment of online stores on third-party online sales platforms and placing advertisements (including the engagement of ambassadors/key opinion leaders to promote products), development and enhancement of mobile applications and websites (such as adding online payment function and chatbot on enterprises’ websites). On the condition that the existing guidelines and other funding criteria can be satisfied, the use of technological services or plans (including artificial intelligence technology) by enterprises to implement the above measures for developing e-commerce business is within the funding scope of “E-commerce Easy”.

MIL OSI Asia Pacific News –

January 25, 2025
MIL-OSI USA: Fact Sheet: Key AI Accomplishments in the Year Since the Biden-⁠ Harris Administration’s Landmark Executive Order

US Senate News:

Source: The White House
One year ago, President Biden issued a landmark Executive Order to ensure that America leads the way in seizing the promise and managing the risks of artificial intelligence (AI). The Executive Order directed sweeping actions to manage AI’s safety and security risks, protect Americans’ privacy, advance equity and civil rights, stand up for consumers and workers, promote innovation and competition, advance American leadership around the world, and more.
Today, the Biden-Harris Administration is announcing that Federal agencies have completed on schedule each action that the Executive Order tasked for this past year—more than one hundred in all. Below are some of the Administration’s most significant accomplishments on managing AI’s risks and seizing its promise in the year since President Biden signed his Executive Order.
Managing Risks to Safety and Security:The Executive Order directed the boldest actions ever taken to protect Americans from a broad range of AI’s safety and security risks, including risks related to dangerous biological materials, software vulnerabilities, and foreign actors’ efforts to develop AI for harmful purposes. Over the last year, to protect safety and security, agencies have:
Used Defense Production Act authorities to require developers of the most powerful AI systems to report vital information, including results of safety and security testing, to the U.S. government. These companies have notified the Department of Commerce about the results of their red-team safety tests, their plans to train powerful models, and large computing clusters they possess capable of such training. Last month, the Department of Commerce proposed a rule to require the reporting of this information on a quarterly basis.
Led the way on AI safety testing and evaluations to advance the science of AI safety. The U.S. AI Safety Institute (US AISI) at the Department of Commerce has begun pre-deployment testing of major new AI models through recently signed agreements with two leading AI developers. The Department of Energy (DOE) developed and expanded its AI testbeds and evaluation tools, which it has already used to test models’ risk to nuclear security.
Developed guidance and tools for managing AI risk. The US AISI and the National Institute of Standards and Technology (NIST) at the Department of Commerce published frameworks for managing risks related to generative AI and dual-use foundation models, and earlier this month, AISI released a Request for Information on the responsible development and use of AI models for chemical and biological sciences. The Department of Defense (DoD) released its Responsible AI toolkit to align AI projects with the Department’s Ethical Principles.
Issued a first-ever National Security Memorandum (NSM) on AI. The NSM directs concrete steps by Federal agencies to ensure the United States leads the world’s development of safe, secure, and trustworthy AI; to enable agencies to harness cutting-edge AI for national security objectives, including by protecting human rights and democratic values; and to advance international consensus and governance on AI. This essential document serves as a formal charter for the AI Safety Institute, designating it as the center of the whole-of-government approach to advanced AI model testing, and will guide rapid and responsible AI adoption by the DoD and Intelligence Community. The NSM also directs the creation of a Framework to Advance AI Governance and Risk Management in National Security, which provides agile guidance to implement the NSM in accordance with democratic values, including mechanisms for risk management, evaluations, accountability, and transparency.
Finalized a framework for nucleic acid synthesis screening to help prevent the misuse of AI for engineering dangerous biological materials. The framework, developed by the Office of Science and Technology Policy (OSTP), encourages nucleic acid synthesis providers to identify gene sequences that could be used to pose national security risks, and to implement customer screening to mitigate the risks of misuse. Federal agencies will require that funding recipients obtain synthetic nucleic acids from vendors that adhere to the framework, starting in 2025. The Department of Homeland Security (DHS) has developed an initial framework with principles for evaluating the effectiveness of screening mechanisms going forward.
Launched a new Task Force on AI Datacenter Infrastructure. The Task Force provides streamlined coordination on policies to advance datacenter development operations in line with economic, national security, and environmental goals.
Identified measures—including approaches for labeling content and improving transparency—to reduce the risks posed by AI-generated content. The Department of Commerce submitted to the White House a final report on science-backed standards and techniques for addressing these risks, while NIST has launched a challenge to develop methods for detecting AI-generated content. President Biden has emphasized that the public has a right to know when content is AI-generated, and agencies are working to use these tools to help Americans to know that communications they receive from their government are authentic.
Combatted AI-generated image-based sexual abuse. Image-based sexual abuse—both non-consensual intimate images of adults and child sexual abuse material—is one of the fastest growing harmful uses of AI to date and disproportionately targets women, children, and LGBTQI+ people. This year, following the Vice President’s leadership in underscoring the urgent need to address deepfake image-based sexual abuse and a White House Call to Action to reduce these risks, leading AI developers and data providers made voluntary commitments to curb the creation of AI-generated image-based sexual abuse material. Additionally, the Department of Justice (DOJ) funded the first-ever helpline to provide 24/7 support and specialized services for victims of the non-consensual distribution of intimate images, including deepfakes. The Department of Education also clarified that school responsibilities under Title IX may extend to conduct that takes place online, including AI-generated abuse.
Established the AI Safety and Security Board (AISSB) to advise the Secretary of Homeland Security on the safe and secure use of AI in critical infrastructure. The AISSB has met thrice this year to develop a set of recommendations for entities that develop, deploy, and promote accountability for AI systems that assist in delivering essential services to millions of Americans. The work of the AISSB complements DHS’s first-ever AI safety and security guidelines for critical infrastructure owners and operators, which were informed by agencies’ assessments of AI risks across all critical infrastructure sectors. To help protect critical infrastructure further, the Department of Treasury released a report on managing security risks of AI use in the financial sector, and the Department of Energy released an assessment of potential risks to the power grid, as well as ways in which AI could potentially strengthen grid resilience and our ability to respond to threats.
Piloted AI for protecting vital government software systems. The Department of Defense and DHS conducted AI pilots to address vulnerabilities in government networks used, respectively, for national security purposes and for civilian governmental organizations.
Standing up for Workers, Consumers, Privacy, and Civil RightsAI is changing the products and services Americans buy, affecting jobs and workplaces, and introducing or exacerbating risks to privacy, equity, and civil rights. President Biden’s Executive Order stands up for Americans in each of these domains, and over the last year, agencies have:
Developed bedrock principles and practices, along with guidance, to help protect and empower workers as AI is built for and used in the workplace. The Department of Labor (DOL) released AI Principles and Best Practices for employers and developers to build and use AI in ways that center the wellbeing of workers and improve the quality of jobs. DOL also published two guidance documents to assist federal contractors and employers in complying with worker protection laws as they deploy AI in the workplace. In addition, the Equal Employment Opportunity Commission released resources for job seekers and workers to understand how AI use could violate employment discrimination laws.
Protected patients’ rights and safety, while encouraging innovation, as AI is developed and deployed for healthcare. The Department of Health and Human Services (HHS) established an AI Safety Program to track harmful incidents involving AI’s use in healthcare settings and to evaluate mitigations for those harms. HHS has also developed objectives, goals, and high-level principles for the use of AI or AI-enabled tools in drug development processes and AI-enabled devices. Additionally, HHS finalized a rule that established first-of-its-kind transparency requirements for AI and other predictive algorithms that are part of certified health information technology. HHS also finalized a civil rights regulation, implementing Section 1557 of the Affordable Care Act, that requires covered health care entities to take steps to identify and mitigate discrimination when they use AI and other forms of decision support tools for care.
Published guidance and resources for the safe, secure, and trustworthy design and use of AI in education. In July, the Department of Education released guidance calling up on educational technology developers to design AI in ways that protect rights, improve transparency, and center teaching and learning. This month, the Department of Education released a toolkit to support schools and educational leaders in responsibly adopting valuable AI use cases.
Issued guidance on AI’s nondiscriminatory use in the housing sector, which affirms that existing prohibitions against discrimination apply to AI’s use for tenant screening and housing advertisements, while explaining how to comply with these obligations. Additionally, the Consumer Financial Protection Bureau approved a rule requiring that algorithms and AI used for home valuations are fair, nondiscriminatory, and free of conflicts of interest.
Set guardrails on the responsible and equitable use of AI and algorithmic systems in administering public benefits programs. The Department of Agriculture’s guidance provides a framework for how State, local, Tribal, and territorial governments should manage risks for uses of AI and automated systems in critical benefits programs such as SNAP, while HHS released a plan with guidelines on similar topics for benefits programs it oversees.
Affirmed commitments to prevent and address unlawful discrimination and other harms resulting from AI. DOJ’s Civil Rights Division convenes federal agency civil rights offices and senior government officials to foster AI and civil rights coordination. Five new agencies also joined a 2023 pledge to uphold America’s commitment to fairness, equality, and justice as new technologies like AI become more common in daily life.
Advanced privacy protections to safeguard Americans from privacy risks that AI creates or exacerbates. In particular, the National Science Foundation (NSF) and DOE established a research network dedicated to advancing the development, deployment, and scaling of privacy-enhancing technologies (PETs), while NSF launched the $23 million initiative Privacy-preserving Data Sharing in Practice program to apply, mature, and scale PETs for specific use cases and establish testbeds to accelerate their adoption. Simultaneously, DOE launched a $68 million effort on AI for Science research, which includes efforts at multiple DOE National Laboratories and other institutions to advance PETs for scientific AI. The Department of Commerce also developed guidelines on evaluating differential privacy guarantees. The Office of Management and Budget (OMB) released a Request for Information (RFI) on issues related to federal agency collection, processing, maintenance, use, sharing, dissemination, and disposition of commercially available information containing personally identifiable information. OMB also released an RFI on how federal agencies’ privacy impact assessments may be more effective at mitigating privacy risks, including those that are further exacerbated by AI and other advances in technology and data capabilities.
Harnessing AI for GoodOver the last year, agencies have worked to seize AI’s enormous promise, including by collaborating with the private sector, promoting development and use of valuable AI use cases, and deepening the U.S. lead in AI innovation. To harness AI for good, agencies have:
Launched the National AI Research Resource (NAIRR) pilot and awarded over 150 research teams access to computational and other AI resources. The NAIRR pilot—a national infrastructure led by the National Science Foundation (NSF) in partnership with DOE and other governmental and nongovernmental partners—makes available resources to support the nation’s AI research and education community. Supported research teams span 34 states and tackle projects covering deepfake detection, AI safety, next-generation medical diagnoses, environmental protection, and materials engineering.
Promoted AI education and training across the United States. DOE is leveraging its network of national laboratories to train 500 new researchers by 2025 to meet demand for AI talent, while NSF has invested millions of dollars in programs to train future AI leaders and innovators. These programs include the EducateAI initiative, which helps fund educators creating high-quality, inclusive AI educational opportunities at the K-12 through undergraduate levels that support experiential learning in fields such as AI and build capacity in AI research at minority-serving institutions.
Expanded the ability of top AI scientists, engineers, and entrepreneurs to come to the United States, including by clarifying O-1 and H-1B visa rules and working to streamline visa processing.
Released a report on the potential benefits, risks, and implications of dual-use foundation models for which the model weights are widely available, including related policy recommendations. The Department of Commerce’s report draws on extensive outreach to experts and stakeholders, including hundreds of public comments submitted on this topic.
Announced a competition for up to $100 million to support the application of AI-enabled autonomous experimentation to accelerate research into—and delivery of—targeted, industry-relevant, sustainable semiconductor materials and processes.
Established two new National AI Research Institutes for building AI tools to advance progress across economic sectors, science, and engineering. The NSF-led AI Research Institutes launched in September will develop AI tools for astronomical sciences, with broader applications across scientific disciplines. Earlier this year, NSF also funded 10 inaugural Regional Innovation Engines (NSF Engines), seven of which include a focus on advancing AI.
Announced millions of dollars in further investments to advance responsible AI development and use throughout our society. These include $13 million invested by DOE in the VoltAIc initiative for using AI to streamline permitting and accelerate clean energy deployment, as well as $68M from DOE to fund AI for scientific research to accelerate scientific programming and develop energy efficient AI models and hardware. DOE has also launched the Frontiers in AI for Science, Security, and Technology (FASST) initiative roadmap and request for information to harness AI for scientific discovery, national security, energy and electric grid resilience, and other national challenges, building on AI tools, models, and partnerships. NSF, in partnership with philanthropy, announced an inaugural investment of more than $18 million to 44 multidisciplinary, multi-sector teams across the U.S. to advance the responsible design, development, and deployment of technologies including AI, ensuring ethical, legal, community, and societal considerations are embedded in the lifecycle of technology’s creation.
Issued a first-ever report analyzing AI’s near-term potential to support the growth of America’s clean energy economy. DOE’s National Laboratories also issued a long-term grand challenges report identifying opportunities in AI for energy over the next decade.
Released a vision for how AI can help us achieve our nation’s greatest aspirations. AI Aspirations sets forth goals to create a future of better health and opportunity for all, mitigate climate change and boost resilience, build robust infrastructure and manufacturing, ensure the government works for every American, and more. In furtherance of these goals, HHS launched CATALYST, a research and development program focused on the potential use of AI to better predict drug safety and efficacy before clinical trials start. In complement, the President’s Council of Advisors on Science and Technology also authored a report outlining AI’s potential to revolutionize and accelerate scientific discovery.
Published guidance addressing vital questions at the intersection of AI and intellectual property. To advance innovation the U.S. Patent and Trademark Office (USPTO) has released guidance documents addressing the patentability of AI-assisted inventions, on the subject matter eligibility of patent claims involving inventions related to AI technology, and on the use of AI tools in proceedings before USPTO.
Bringing AI and AI Talent into GovernmentAI can help government deliver better results for the American people, though its use by Federal agencies can also pose risks, such as discrimination and unsafe decisions. Bringing AI and AI-enabling professionals into government, moreover, is vital for managing these risks and opportunities and advancing other critical AI missions. Over the last year, agencies have:
Issued the first-ever government-wide policy to strengthen governance, mitigate risks, and advance innovation in federal use of AI. OMB’s historic policy, M-24-10, requires agencies to implement concrete safeguards when using AI in a way that could impact Americans’ rights or safety. These safeguards include a series of mandatory risk management practices to reliably assess, test, and monitor AI’s impacts on the public and provide greater transparency into how the government uses AI. OMB’s policy also directs agencies to designate Chief AI Officers to coordinate the use of AI across their agency, while expanding and upskilling their AI workforce and removing barriers to adopting AI for all manner of purposes—from addressing climate change to advancing public health and safety.
Released a government-wide policy to advance responsible acquisition of AI by Federal agencies. M-24-18, published this month by OMB, helps ensure that when Federal agencies acquire AI, they have the information and tools necessary to manage risks, promote a competitive marketplace, and collaborate on strategic planning. This work directs the Federal government—the largest buyer in the U.S. economy—to advance AI innovation and risk management through responsibly exercising its purchasing power.
Hired over 250 AI practitioners into the Federal government through the AI Talent Surge. Tech talent programs ramped up hiring for AI talent, with the Presidential Innovation Fellows bringing on their first-ever AI cohort, DHS establishing their AI Corps with over 30 members onboarded to date, and the U.S. Digital Corps providing pathways for early-career technologists to join Federal service. AI talent has been instrumental in delivering on critical AI priorities, from using AI to deliver top-tier government services, to protecting the public’s rights and safety in the use of AI.
Established the Chief AI Officers Council to harmonize best practices and sharing of resources across the interagency to implement OMB’s guidance and coordinate the development and use of AI in agencies’ programs and operations.
Introduced expanded reporting instructions for the federal AI use case inventory to include identifying use cases that impact rights or safety and how the agency is addressing the relevant risks in line with OMB’s policies.
Bolstered the public interest technology ecosystem. Building on the AI Talent Surge, the White House announced funding across government, academia, and civil society to support education and career pathways that will help ensure government has access to diverse, mission-oriented technology talent.
Activated new hiring authorities to bring AI and AI-enabling talent into agencies. As part of the AI Talent Surge, the Office of Personnel Management (OPM) granted new hiring authorities, including direct hire authorities and excepted service authorities, for agencies to rapidly bring on top-tier AI and AI-enabling talent, and released guidance on skills-based hiring and pay and leave flexibilities to best position agencies to hire and retain AI and AI-enabling talent. Additionally, OPM collaborated with partners to run three National Tech to Gov career fairs to connect the public with AI and tech jobs in government, surfacing roles from over 64 Federal, state, and local government employers to over 3,000 job seekers.
Advancing U.S. Leadership AbroadPresident Biden’s Executive Order directed work to lead global efforts to capture AI’s promise, mitigate AI’s risks, and ensure AI’s responsible governance. To advance these goals, the Administration has:
Sponsored and passed a landmark United Nations General Assembly resolution. The unanimously adopted resolution, with more than 100 co-sponsors (including the People’s Republic of China), lays out a common vision for countries around the world to promote the safe and secure use of AI to address global challenges.
Engaged foreign leaders on strengthening international rules and norms for AI, including at the 2023 UK AI Safety Summit and the AI Seoul Summit in May 2024, where Vice President Harris represented the United States. In the United Kingdom, Vice President Harris unveiled a series of U.S. initiatives to advance the safe and responsible use of AI, including the establishment of AISI at the Department of Commerce.
Announced a global network of AI Safety Institutes and other government-backed scientific offices to advance AI safety at a technical level. This network, which will formally launch in November at the inaugural network convening in San Francisco, will accelerate critical information exchange and drive toward common or compatible safety evaluations and policies.
Expanded global support for the U.S.-led Political Declaration on the Responsible Military Use of Artificial Intelligence and Autonomy. Fifty-six nations now endorse the political declaration, which outlines a set of norms for the responsible development, deployment, and use of military AI capabilities. DoD has expanded the scope of its international AI Partnership for Defense to align global Responsible AI practices with the Political Declaration’s norms.
Developed comprehensive plans for U.S. engagement on global AI standards and AI-related critical infrastructure topics. NIST and DHS, respectively, will report on priority actions taken per these plans in 90 days.
Signed the Council of Europe’s Framework Convention on AI and Human Rights, Democracy, and the Rule of Law. This first multilateral treaty on AI represents a powerful affirmation of the relevance of existing human rights obligations to AI activities and establishes a strong baseline in international law for responsible government use of AI. The United States’ signature reflects its commitment to ensuring that AI technologies are designed, developed, used, and governed in ways that promote respect for human rights and democratic values.
Led the development of a Joint Statement on Responsible Government Practices for AI Technologies. The Joint Statement, to which the 41 countries of the Freedom Online Coalition committed, calls on governments to develop, use, and procure AI responsibly, including by respecting international obligations and commitments, assessing impacts of AI systems, conducting ongoing monitoring, ensuring adequate human training and assessment, communicating and responding to the public, and providing effective access to remedy.
Launched the Global Partnership for Action on Gender-Based Online Harassment and Abuse. The 15-country Global Partnership has advanced international policies to address online safety, and spurred new programs to prevent and respond to technology-facilitated gender-based violence, including through AI.
The Department of State and the U.S. Agency for International Development published resources to advance global AI research and use of AI for economic development. The AI in Global Development Playbook incorporates principles and practices from NIST’s AI Risk Management Framework to guide AI’s responsible development and deployment across international contexts, while the Global AI Research Agenda outlines priorities for advancing AI’s safe, responsible, and sustainable global development and adoption.
The table below summarizes many of the activities that federal agencies have completed in response to the Executive Order.

MIL OSI USA News –

January 25, 2025
MIL-OSI USA: FACT SHEET: President Biden and Vice President Harris Announce New Actions and Investments to Advance Educational and Economic Opportunity for Latino Communities Across the Country

US Senate News:

Source: The White House
Today, President Biden will ceremonially sign Executive Order (EO) 14124, establishing the White House Initiative on Advancing Educational Equity, Excellence, and Economic Opportunity Through Hispanic-Serving Institutions (HSIs), alongside nearly two dozen champions for these institutions and Latino communities. President Biden and Vice President Harris will also announce nearly $19 million in transformational investments for five HSIs in Florida, Illinois, Texas, and Puerto Rico to build research infrastructure. These efforts build on the Administration’s historic investment of over $16 billion in more than 500 HSIs across 30 states, the District of Columbia, and Puerto Rico that educate more than 4.7 million students annually.
Over the past three years, President Biden and Vice President Harris have taken historic actions to expand opportunity for Latino families and communities, including: creating more than 15 million jobs – with 5 million created for Latinos, helping Latino entrepreneurs start new businesses at the fastest rate in over 10 years, addressing our broken immigration system, and working to ensure equitable educational opportunity for students.
Today, the Biden-Harris Administration is announcing new actions to advance educational opportunities for students at HSIs and giving them a fair shot at achieving the American dream.
Advancing Educational Equity, Excellence, and Economic Opportunity through HSIs
With student enrollment that is at least one-quarter Latino, HSIs are engines of economic mobility, propelling high numbers of students from low-income backgrounds and first-generation college students into good jobs and brighter futures. Today, President Biden will ceremonially sign EO 14124 to strengthen the Federal Government’s commitment to advancing opportunity for HSIs and the students they serve.
The EO creates a new Initiative and first-ever President’s Board of Advisors on HSIs to:
Increase awareness of opportunities for HSIs to equally participate in Federal programs and enhance the capacity of HSIs to meet the educational needs of their students.
Identify best practices for HSIs to scale effective strategies, programs, and initiatives to support the educational success and economic mobility of their students.
Improve the ability of HSIs to align program offerings with the economic needs of the Nation and their local economies, especially in Science, Technology, Engineering, Math, and teaching.
Coordinate efforts to help HSIs become or remain fiscally secure institutions.
Foster cross-sector collaboration among HSIs and philanthropic, public, and private sector organizations.
Strengthen Federal recruitment activities at HSIs to build accessible and equal pathways into Federal career opportunities for HSI students, faculty, staff, and alumni.
Provide tools, data, and analytics to support HSIs in improving educational equity, excellence, and economic opportunity for students.
Investing Additional $19 Million in Research Infrastructure at HSIs
To remain the most competitive economy in the world, the Nation’s most inclusive institutions of higher education must continue to lead in research and development. Yet too many HSIs report having unmet infrastructure needs that hold back their ability to engage in research that will propel forward these institutions, their students, and the nation as a whole.
To help address these needs, the Biden-Harris Administration established the Department of Education’s Research and Development Infrastructure Program (RDI) for the colleges and universities that play a central role in educating students from diverse backgrounds. The program provides funds to Historically Black Colleges and Universities (HBCUs), Tribally Controlled Colleges and Universities (TCCUs), and Minority Serving Institutions (MSIs)—including HSIs— to implement transformational investments in research infrastructure, including research productivity, faculty expertise, graduate programs, physical infrastructure, human capital development, and partnerships leading to increases in external funding.
Today, the Biden-Harris Administration announced nearly $19 million in new grants to five HSIs to build their research and physical infrastructure including—
Florida Atlantic University in Boca Raton, Florida received $1.1 million.
National Louis University in Chicago, Illinois received $3 million.
Sam Houston State University in Houston, Texas received $5 million.
Texas A&M University Corpus Christi in Corpus Christi, Texas received $4.7 million.
University of Puerto Rico on the Rio Piedras Campus received $5 million.
The $19 million in grants to HSIs was a part of $49 million in RDI grants to 13 HBCUs, TCCUs, and MSIs.
Building on Historic Investments in HSIs
Today’s announcements build on President Biden and Vice President Harris’ historic investments of over $16 billion in direct funding to HSIs, including through COVID relief funds and the Department of Education’s federal grant program funds.
The chart below provides a state-by-state breakdown of funding to date.
State
Total Funds Received by HSIs in the State
AR
$11,356,918
AZ
$739,602,657
CA
$6,389,050,269
CO
$290,670,467
CT
$81,522,902
DC
$10,396,350
FL
$1,524,890,025
GA
$96,526,460
ID
$12,477,969
IL
$664,298,648
IN
$20,049,711
KS
$20,869,761
MA
$110,295,475
MD
$68,836,836
MN
$12,999,876
NC
$10,750,057
NE
$1,211,270
NJ
$582,987,076
NM
$399,198,109
NV
$336,899,054
NY
$327,800,182
OH
$875,529
OK
$9,372,922
OR
$58,864,009
PA
$66,357,824
PR
$1,135,872,342
RI
$48,066,707
TN
$7,383,933
TX
$3,433,719,411
VA
$14,730,892
WA
$124,035,244
WI
$23,119,648
Grand Total
$16,635,088,533

MIL OSI USA News –

January 25, 2025

MIL-OSI Submissions: Economy – KOF Economic Barometer: Sluggish economic recovery

Source: KOF Economic Institute

In October, the KOF Economic Barometer drops noticeably. Although it is still within the medium-term average range, for the first time since January of this year it is no longer above the 100 mark. The recovery of the Swiss economy is very hesitant.

The KOF Economic Barometer loses 5.0 points in October, falling to a level of 99.5 (after a revised 104.5 in September). The indicator bundles of all production-side categories included in the barometer decline in October: the indicators for manufacturing, financial and insurance services, other services, hospitality and construction. However, the demand-side indicators, the indicators for foreign demand and consumer demand, are not following this downward tendency. The development of the demand-side indicators, though, does not currently give hope for stronger impetus.

In the producing industries (manufacturing and construction), the indicators for almost all aspects of business activity are under pressure. This applies in particular to export prospects, production activity, the competitive situation and order income. Only the indicators for the purchase of primary products and the inventory situation cushioned the negative development somewhat.

Within the manufacturing, the outlook is becoming bleaker, particularly for chemical and pharmaceutical companies, the metal industry, the wood, glass, stone and earth segment and for food and beverage producers. The outlook is slightly more favourable for textile and clothing companies.

MIL OSI – Submitted News –

January 25, 2025

MIL-OSI United Kingdom: Two social landlords fail to meet RSH’s consumer standards

Source: United Kingdom – Executive Government & Departments

The Regulator of Social Housing has today published regulatory judgements for seven social housing landlords.

Sandwell Metropolitan Borough Council and Willow Tree Housing Partnership were both given a C3 grading by RSH, meaning they failed to meet the new consumer standards, introduced on 1 April 2024, and will need to make significant improvements.

Meanwhile Barnsley Metropolitan Borough Council became the first local authority to receive a C1 grading.

Following responsive engagement with Sandwell MBC about the Safety and Quality Standard due to its Tenant Satisfaction Measure (TSM) return, RSH found:

The council was only able to evidence that required asbestos management surveys or re-inspections had been carried out on around 2% of relevant buildings.
Although electrical safety inspections had been completed for 96% of its 27,900 homes, the council was unable to monitor or report on the completion of remedial actions.
A backlog of more than 14,000 overdue repairs, with over 90% of these yet to be assigned for completion.
Accurate, up-to-date information was available for only 5% of the council’s homes.

Following an inspection completed in October 2024 and earlier responsive engagement carried out following a self-referral from Willow Tree relating to the Rent Standard, RSH found:

Around 185 tenancies had been overcharged as a result of errors made in setting rents over a prolonged period.
Limited information on the quality of its homes to assure us that they were meeting the Decent Homes Standard.
Improvement is needed to more proactively identify and manage of damp and mould.
Evidence of weaknesses in the provision of an effective, efficient and timely repairs service.

Willow Tree has now corrected its formula rents and has issued refunds worth £133k over the last six years.

Kate Dodsworth, Chief of Regulatory Engagement at RSH, said:

Improving data management can help address the root cause of many of the issues we see. Without accurate, up-to-date information on homes, it is nearly impossible to deliver the outcomes of our standards and provide safe, decent places to live for tenants.

Today’s judgements reflect the range of grades we are seeing across the spectrum in the early days of our new consumer remit. We are working intensively with each of the landlords where there are failings, as they put things right for their tenants.

Even when a landlord has been awarded a C1 grading, there is always room for improvement.

Our governance and financial viability standards remain as important as ever. Landlords need to keep a tight grip on identifying and mitigating risks to avoid problems now and later down the line.

The other five judgements were part of RSH’s planned inspections of all large social landlords (those with over 1,000 homes) over a four-year cycle.

Provider	Reason for publication	Grades
Broadacres Housing Association Limited	Inspection	C2 G2 V2
Joseph Rowntree Housing Trust	Inspection	C2 G1 V2 – Issues relating to rent setting have not yet been addressed
Lincolnshire Housing Partnership Limited	Inspection	C2 G1 V2
Sandwell Metropolitan Borough Council	Responsive engagement	C3
The Industrial Dwellings Society (1885) Limited	Inspection	C2 G2 V2
Willow Tree Housing Partnership Limited	Inspection and responsive engagement	C3 G2 V2
Barnsley Metropolitan Borough Council	Inspection	C1

Notes to editors

On 1 April 2024 RSH introduced new consumer standards for social housing landlords, designed to drive long-term improvements in the sector. It also began a programme of landlord inspections. The changes are a result of the Social Housing Regulation Act 2023 and include stronger powers to hold landlords to account. More information about RSH’s approach is available in its document Reshaping Consumer Regulation.
More information about RSH’s responsive engagement, programmed inspections and consumer gradings is also available on its website.
RSH promotes a viable, efficient and well-governed social housing sector able to deliver more and better social homes. It does this by setting standards and carrying out robust regulation focusing on driving improvement in social landlords, including local authorities, and ensuring that housing associations are well-governed, financially viable and offer value for money. It takes appropriate action if the outcomes of the standards are not being delivered.

Published 30 October 2024

MIL OSI United Kingdom –

January 25, 2025

MIL-OSI Global: Five reasons weight-loss jabs alone won’t help get people back to work

Source: The Conversation – UK – By Lucie Nield, Senior Lecturer in Nutrition and Dietetics, University of Sheffield

Weight-loss injectables don’t address the many core reasons for why weight gain and unemployment occur in the first place. oleschwander/ Shutterstock

Prime Minister Keir Starmer and health secretary Wes Streeting have recently discussed plans to trial weight-loss injections for around 250,000 people with obesity who are unemployed in a bid to get them back into work, ease pressure on the NHS and boost the economy.

Obesity is estimated to cost UK society around £35 billion annually. This is due to lower productivity and higher NHS treatment costs.

Around 26% of the English adult population (approximately 15 million) are considered obese. However, it’s not known what proportion of unemployed people are obese.

While weight-loss injections have proven to be very effective in helping people who are obese to lose weight and lower their risk of certain chronic diseases, there are many reasons why these drugs alone won’t help tackle obesity and unemployment rates in the UK.

1. Lack of capacity

The majority of UK people who are obese are likely to meet the National Institute for Health and Care Excellence’s eligibility criteria for weight-loss injections.

But prescribing these drugs is just one part of the equation. Eligible patients will require support from specialist services who provide guidance in making the appropriate lifestyle changes (such as to their diet) to successfully lose weight while on these drugs. This is crucial, as all of the weight-loss injection trials to date have involved a behaviour change component. This may potentially be key to the successful weight losses observed in these studies.

However, current demand for weight-loss services is already outstripping capacity. Nearly half of eligible patients in England are unable to get an appointment with a specialist team. Weight-loss injections can only be prescribed through such services currently. If the government is to roll out the proposed programme, they will need to rethink the way weight-loss services are delivered so all eligible patients can access support.

2. Won’t work for everyone

Weight-loss jabs don’t necessarily work for everyone. One study found that 9-15% of participants who took the drug tirzepatide (Mounjaro) did not lose clinically significant amounts of weight.

Weight-loss jabs may also cause intolerable side-effects for some. Trials have shown between 4-8% of participants couldn’t tolerate the side-effects, causing them to drop out of the study. Constipation, diarrhoea and nausea are some of the most commonly reported.

People with certain health conditions may be unable to use weight-loss injections – such as those with inflammatory bowel disease and pancreatitis. In such cases, weight-loss jabs may worsen symptoms or interact with the prescription drugs used to manage these conditions, increasing risk of harm.

There are many reasons why weight loss jabs may not work for a person.
Mohammed_Al_Ali/ Shutterstock

Additionally, some people may not want to take an injection – whether that’s simply due to personal preference or even fear of needles.

3. Obesity is a complex issue

There are many complex factors that contribute to weight gain – such as opportunities for physical activity, access to healthy foods and levels of deprivation in a community. Prescribing weight-loss jabs to help people lose weight may not be effective long-term if the rest of these factors are not also addressed.

A more effective way of seeing significant, sustainable reductions in obesity levels across a population is by using a “whole systems approach”. This would address to the multiple environmental, social and economic factors that contribute to obesity.

Where whole systems approaches have been embedded in healthcare design and delivery, they have led to improvements in services and patient outcomes – including obesity-related metrics (such as patients making healthier food choices and being more active).

However, one limitation to whole systems approaches is challenges in measuring impact. This can reduce political will to implement these approaches.

4. Obesity stigma

Obesity stigma in the workplace is a huge barrier to satisfactory employment and leads to poor wellbeing and burnout.

Obesity stigma in the workplace perpetuates harmful weight-based stereotypes that overweight and obese people are lazy, unsuccessful, unintelligent and lack willpower. As a result, people with obesity are more likely to be in insecure and lower-paid jobs than those who may be considered of a healthy weight.

It’s also well-evidenced that regular exposure to stigmatising, isolating and degrading prejudices has long-term consequences on physical and mental health – and may lead to problems such as binge eating and depression.This can lead to a loss of productivity, absenteeism and loneliness.

Prescribing weight-loss jabs to help a person lose weight doesn’t address the core reasons for why they may have been absent from work or unemployed in the first place. Nor does it help to address the mental health struggles they may still harbour as a result of discrimination they might have experienced.

5. Barriers to employment

Weight loss alone does not begin to address the complex physical and mental health reasons for why a person might be unemployed. A person may also be unemployed due to factors such as caring responsibilities or disability.

Current prescribing restrictions also limit some injections to a maximum of 24 months (although further trials are ongoing). This means that even if a person has successfully lost weight, they may regain that weight again when they stop using the drug. This could mean any health problems they experienced prior to losing weight (and which may have prevented them from being in employment) could reemerge.

There are better ways of getting people back into work than prescribing weight-loss jabs. Flexible working approaches, for instance, may make it easier for someone who is unemployed due to caring responsibilities or health problems to transition back into employment. Supportive policies and workplace wellbeing programmes may be a more cost-effective way of helping people to overcome barriers, improve their health and transition back into work.

Lucie Nield has received funding from The National Institute for Health Research (NIHR) for evaluation of children’s weight management services.

Lucie Nield sits on the Board of Trustees for Darnall Wellbeing (a local community service organisation).

– ref. Five reasons weight-loss jabs alone won’t help get people back to work – https://theconversation.com/five-reasons-weight-loss-jabs-alone-wont-help-get-people-back-to-work-241835

MIL OSI – Global Reports –

January 25, 2025
MIL-OSI United Kingdom: Monthly GDP Estimates for August

Source: Scottish Government

An Official Statistics in Development publication for Scotland.

Scotland’s onshore GDP contracted by 0.3% in August 2024, according to statistics announced by the Chief Statistician. This follows revised growth of 0.5% in July 2024.

In the three months to August, GDP is estimated to have grown by 0.1% compared to the previous three month period. This indicates an decrease in growth relative to the growth of 0.4% (revised from 0.6%) in 2024 Quarter 2 (April to June).

In August, the largest contribution to headline GDP was made by the Information & Communications sector which contracted by 3.2%, contributing -0.2 percentage points to the overall contraction. The largest positive contribution was made by the Education sector which grew by 1.4%, contributing 0.1 percentage points towards GDP.

Background

The quarterly statistical publication and data and the monthly statistical publication and data are available online.

All results are seasonally adjusted and presented in real terms (adjusted to remove inflation). GDP growth relates to Scotland’s onshore economy, which means it does not include the output of offshore oil and gas extraction.

Gross Domestic Product (GDP) measures the output of the economy in Scotland and are designated as official statistics in development. This means that they are still in development but have been released to enable their use at an early stage. All results are provisional and subject to relatively high levels of uncertainty.

Further information on GDP statistics is available online.

These estimates are compiled in line with the Code of Practice for Statistics.

MIL OSI United Kingdom –

January 25, 2025
MIL-OSI: Solidion Develops a Lithium Battery that can be Charged in 5 minutes With Key Newly Granted US Patent

Source: GlobeNewswire (MIL-OSI)

DAYTON, Ohio, Oct. 30, 2024 (GLOBE NEWSWIRE) — Solidion Technology, Inc. (ticker “STI”), an advanced battery technology solutions provider, today announced that its battery scientists have successfully developed a cost-effective strategy for enabling completion of charging in 5 minutes for a wide range of lithium batteries.

Range anxiety, the fear that an electric vehicle (EV) may run out of battery power during a trip, has long been regarded as a key reason for consumers’ reluctance to adopt EVs. This issue is exacerbated by the notion that recharging batteries usually takes much longer time than refueling internal combustion engine vehicles (ICEVs).

To be competitive with ICEVs, fast charging of EVs should be weather-independent and comparable in time as refueling a gasoline car. Variations in temperatures in different geographic regions and seasons poses a challenge in fast charging EV batteries, since batteries can behave very differently. In winter, half of the United States and most of Northern Europe has an average temperature below 0°C. None of today’s EV batteries allow for fast charging at low temperatures.

Responsive to EV market’s urgent need for a battery that can be fast charged at all climate conditions, Solidion’s technical team has developed and patented an effective method and system for fast charging a battery cell or pack without negatively impacting the battery. The strategy also allows a battery system to operate in a safe mode and avoid a thermal runaway problem.

The technology uses a graphene-based heat spreader to quickly move heat from a battery to warm it up before or during fast charging. It also has a cooling system that kicks in when the battery is in use, like when powering a device or electric vehicle. The heat spreader moves the heat to the cooling system for efficient cooling. The system switches between heating when charging and cooling when discharging. Graphene, with its super high thermal conductivity (5,300 W/m-K), is much more effective than copper, which has a lower conductivity (410 W/m-K) and is four times heavier.

Solidion is aimed at fully commercializing this technology in 2-3 years.

About Solidion Technology, Inc.

Headquartered in Dallas, Texas, with production facilities in Dayton, Ohio, Solidion’s core business includes manufacturing of battery materials and components, as well as development and production of next-generation batteries for energy storage systems and electric vehicles for ground, air, and sea transportation. Recognized as a global IP leader in both the high-capacity anode, utilizing a non-silane based solution, and the high-energy solid-state battery. Solidion is uniquely positioned to offer two lines of battery products: (i) advanced anode materials (ready for production expansion); and (ii) three classes of solid-state batteries, including Silicon-rich all-solid-state lithium-ion cells (Gen 1), anodeless lithium metal cells (Gen 2), and lithium-sulfur cells (Gen 3), all featuring an advanced polymer- or polymer/inorganic composite-based solid electrolyte that is process-friendly. Solidion’s solid-state batteries can be manufactured at scale using current lithium-ion cell production facilities; this feature enables fastest time-to-market of safe solid-state batteries. Solidion batteries are designed to deliver significantly extended EV range, improved battery safety, lower cost per KWh, fastest time-to-market, and next-gen cathodes (potential to replace expensive nickel and cobalt with sulfur (S) and other more abundant elements).

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Solidion Technology Inc., (Nasdaq: STI) (the “Company,” “Solidion,” “we,” “our” or “us”) desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “forecasts” “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements primarily on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, and financial needs.

Contacts

For Investors: ir@solidiontech.com

For Media: press@solidiontech.com

The MIL Network –

January 25, 2025
MIL-OSI Economics: Tech startups well placed to proliferate in Africa as digitalization enables growth in greenfield projects, says GlobalData

Source: GlobalData

Tech startups well placed to proliferate in Africa as digitalization enables growth in greenfield projects, says GlobalData

Posted in Technology

With digitalization as a key enabler of organic growth in greenfield projects in Africa, technology startups are well placed to capitalize on the desire of larger and established corporations wanting to move into various enterprise technologies in the region, according to research conducted by GlobalData, a leading data and analytics company.

Recent tie ups – including Safaricom’s deal with Kenyan SaaS startup tappi, American security firm Unartificial Labs tapping Tunisian startup Enova Robotics, and British payment processing firm partnership and financial inclusion firm Paymentology partnering with Zambian fintech startup Union54 – point to this trend.

Ismail Patel, Senior Analyst, Enterprise Technology and Services at GlobalData, says: “Africa remains a price-sensitive market not only for consumers but also for corporate buyers. This means that technology enablement beyond the deployment of costly physical infrastructure will be a space occupied by smaller vendors who are both less costly and seeking to build their own profiles in the region.”

GlobalData analysis finds Africa is seeing burgeoning growth in the number of tech startups across cybersecurity, IoT, fintech, SaaS, APIs, analytics, blockchain, and AI. Mergers and acquisitions (M&A) activity associated with these startups has picked up over the past decade, and the number of contractual deals with startups, both inside Africa and beyond, is growing.

The expectation is that this expansion will continue to grow as there is plenty of room for organic growth across key sectors, including rural communities and SMBs (small and medium businesses), where digitalization is a prime enabler for next-gen technology adoption and boosting national economies. Still, the key buyers for these startups will remain the large African corporate enterprises looking to either partner with them or bring them in-house via acquisition.

Patel concludes: “Egypt, South Africa, Nigeria, Kenya, and Tunisia have emerged as the tech startup capitals across Africa. Tech enablement is being fueled by capital raising success stories across the board, from debt financing and governmental grants to angel and venture capital investments, all of which are encouraging the startup trends. In its own way, the region is responding to the global technological boom.”

MIL OSI Economics –

January 25, 2025
MIL-OSI Africa: Zambia: African Development Bank’s Sustainable Energy Fund for Africa approves $8 million for development of 25 MW Solar Plant

Source: Africa Press Organisation – English (2) – Report:

ABIDJAN, Ivory Coast, October 30, 2024/APO Group/ —

The African Development Bank Group’s (www.AfDB.org) Board of Directors has approved an $8 million concessional loan to support the construction of a 25MW Solar Photovoltaic power plant in Zambia. The financing for the Ilute Plant will be sourced from the Sustainable Energy Fund for Africa (SEFA), a multi-donor Special Fund managed by the Bank. Ilute is expected to advance Zambia’s sustainable development and help the country unlock its renewable energy potential.

The venture has faced rising costs associated with the COVID-19 pandemic and other challenges. Serengeti Energy Ltd (http://apo-opa.co/4hth8dE) and Western Solar Power Ltd (http://apo-opa.co/3YJBxUr) are leading the plant development in Zambia’s Sesheke District. Competitively selected by GreenCo Power Services Ltd (GreenCo) (http://apo-opa.co/4hiM3ci), this project will serve as a pilot for GreenCo’s energy aggregator model under the Zambia Electricity Supply Corporation Limited (ZESCO) (http://apo-opa.co/3YIpw1h) open grid access framework. Acting as an intermediary off-taker, GreenCo will purchase the generated electricity through a 25-year Power Purchase Agreement and sell it to the Southern African Power Pool Day-Ahead Market (http://apo-opa.co/3YELlih).

“We are delighted to support the Ilute Solar PV project – which will be the first project to use Africa GreenCo as an intermediate off-taker. SEFA’s support has been instrumental in bridging the financing gap and will pave the way for future projects that contribute to Southern Africa’s energy transition,” said Dr Daniel Schroth, African Development Bank Director for Renewable Energy and Energy Efficiency.

Anton-Louis Olivier, CEO of Serengeti Energy, acknowledged SEFA’s support. He said, “We appreciate the support from the African Development Bank Group and SEFA in helping us move the Ilute 25MW Solar PV project forward. This loan addresses the financial challenges we’ve faced due to the pandemic and rising costs. The Ilute project is a testament to innovative collaboration and serves as a pioneering model for future renewable energy initiatives in Zambia as well as the wider region.” Serengeti Energy is a leading renewable independent power producer specialising in the development, construction, and operation of utility-scale renewable energy plants tailored to the needs of both public and private off-takers.

MIL OSI Africa –

January 25, 2025
MIL-OSI Europe: Frontex reintegration assistance: supporting returnees in their home countries

Source: Frontex

Frontex is responsible for implementing the EU Reintegration Programme (EURP), which helps individuals who return both voluntarily and non-voluntarily to their home countries re-establish their lives. The programme provides a range of support services, from accommodation to starting a business, helping returnees to integrate into their communities and build a sustainable future. The Agency works closely with local partners to ensure the successful implementation of these services, while also monitoring the delivery to ensure they meet the EU standards.

In the past months, Frontex has conducted several monitoring missions in different regions as part of its commitment to ensuring the effectiveness of the reintegration programme. These missions help the Agency assess the support provided to returnees, gather feedback from beneficiaries, and identify areas for improvement. Recent monitoring missions were carried out in Morocco, Bangladesh, and Armenia, offering valuable insights into the programme’s impact on returnees’ lives.

Monitoring missions to Morocco, Bangladesh, and Armenia

One of these missions took place in Morocco, where the Agency brought a visit to its local reintegration partner, Fondation Orient-Occident (FOO), to discuss technical issues encountered with the EURP delivery. The reintegration assistance provided in Morocco includes professional training and business start-up support, which helps returnees become self-sufficient and contribute to their local economy.

During the mission, Frontex officers and fundamental right monitor had an opportunity to discuss with FOO staff daily challenges related to their work as well as its results. FOO workers explained that the reintegration programme helped the returnees to establish small businesses, using financial support to purchase equipment and launch their ventures. Despite some challenges with accessibility in rural areas, FOO colleagues ensured that EURP beneficiaries were satisfied in general with the assistance received, and in particular with securing income-generating activities.

“Reintegration support allows returnees to come back to their countries with a sense of dignity. NGOs working in the area of reintegration need to navigate a complex landscape to successfully provide the assistance,” shared Ewa, a reintegration specialist.

“Fondation Orient Occident impressed us with their premises and facilities at the Headquarter in Rabat, which invite people to discuss, learn, create, work, and simply spend time together. They have rooms dedicated to different activities such as crafting, music, conference room, as well as some dedicated to children care and education. Migrants have opportunity to expose and sell their products in a small marketplace situated in the heart of the FOO Headquarter,” added Karolina, a reintegration expert.

In Bangladesh, the mission revealed the impact of the reintegration programme on returnees’ livelihoods. The local partner, BRAC, works with returnees to provide comprehensive support, including medical care, psychological services, and financial aid. Many returnees have used this financial assistance to start small businesses, with some beneficiaries investing in livestock, such as cows, to provide ongoing income for their families. One of the highlights of the mission was visiting a farm where returnees proudly showcased the cows they had purchased with funds from the programme, enabling them to support themselves and their communities.

Frontex observed that the EU Reintegration Programme is successfully meeting returnees’ essential needs while offering them a path to sustainable reintegration. Returnees expressed their satisfaction with the support received, praising the programme for providing them with the means to rebuild their lives and establish stable incomes. The mission also identified opportunities for improving the programme’s delivery to ensure it continues to meet the needs of returnees in the most efficient way possible.

“It was fascinating to see how reintegration assistance is implemented on the ground. Visiting cattle markets, meeting returnees at their farms or businesses, and witnessing the positive impact of the programme was very insightful. I was impressed by BRAC’s dedication and professionalism, going beyond the EURP provisions to support returnees, sometimes using their own resources. Seeing their work across all districts was truly inspiring,” said Robert, a reintegration expert.

“Our visit allowed us to see the real people behind the program documentation, both the counsellors and the beneficiaries. The honesty with which they shared their experiences, successes, and challenges, as well as their migration stories allowed us to understand their reality better,” added Natalia, EURP reintegration specialist.

“Living conditions in countries like Bangladesh are difficult. Reintegration programmes are essential to making a real impact, helping people stay and rebuild their lives,” concluded Grigorios Tsioukas, Frontex Deputy Fundamental Rights Officer.

The most recent mission took place in Armenia to monitor the delivery of assistance to returnees provided by Frontex local reintegration partner, Armenian Caritas. The mission allowed Frontex to assess how financial assistance and economic counselling help returnees re-establish themselves in their communities. During the mission, the team met several returnees who had used financial assistance to launch small businesses, such as a returnee who opened a fruit and vegetable shop and a taxi driver.

Returnees expressed satisfaction with the assistance they received, highlighting the importance of business support in helping them become self-sufficient. The mission team, which included a Fundamental Rights Monitor, found that Armenian Caritas’ services align with the programme specifications and EU standards.

Katarzyna, EURP reintegration specialist explains how important support for vulnerable groups is: “To fully understand the reintegration processes, its essential to recognise the unique characteristics of Armenia, where the migration landscape primarily involves families with children and elderly. Support for vulnerable groups is especially important and requires communication and coordination between the Member State, Frontex and Reintegration Partner to ensure timely and tailored assistance. Armenian Caritas is a very well-established organisation able to refer returnees to other services for specialised support, such as medical clinics or social services.”

More about Frontex reintegration assistance

The EU Reintegration Programme offers comprehensive support to individuals returning voluntarily to their home countries, including financial aid, healthcare, vocational training, and psychological support. Frontex’s monitoring missions help ensure that these services meet returnees’ needs and meet the EU standards. The Agency works with local reintegration partners to ensure returnees can successfully rebuild their lives and become active members of their communities.

Click here for more information.

MIL OSI Europe News –

January 25, 2025
MIL-OSI Economics: Joint Communique of the Twenty-Eight ASEAN Labour Ministers Meeting (28th ALMM)

Source: ASEAN

The 28th ASEAN Labour Ministers’ Meeting (ALMM) was held on 30 October 2024 in Singapore. The Meeting was chaired by H.E. Dr. Tan See Leng, Minister for Manpower of Singapore, and attended by representatives of ASEAN Member States, Secretary-General of ASEAN and their respective accompanying delegations. The representatives of Timor-Leste attended as observers.As ALMM commemorates its 50th year since the ALMM first met in Jakarta, April 1975, and guided by Singapore’s 28th ALMM Chairmanship theme “Strengthening Resilience and Promoting Innovation,” we exchanged views on fundamental labour issues in the face of the rapidly changing world of work. Technological advancement, digital and green economy, demographic changes, and intensifying labour mobility present challenges and opportunities to the labour markets of ASEAN Member States. We affirmed the remarkable progress of cooperation under the ALMM over the past 50 years and looked forward to sustained regional cooperation to build a resilient and dynamic ASEAN workforce.

Download the full statement here.
The post Joint Communique of the Twenty-Eight ASEAN Labour Ministers Meeting (28th ALMM) appeared first on ASEAN Main Portal.

MIL OSI Economics –

January 25, 2025

MIL-OSI: CSW Industrials Reports Record Fiscal 2025 Second Quarter Results

Source: GlobeNewswire (MIL-OSI)

DALLAS, Oct. 30, 2024 (GLOBE NEWSWIRE) — CSW Industrials, Inc. (Nasdaq: CSWI or the “Company”) today reported record results for the fiscal 2025 second quarter period ended September 30, 2024.

Fiscal 2025 Second Quarter Highlights (comparisons to fiscal 2024 second quarter)

Total revenue increased 11.9% to an all-time quarterly high of $227.9 million, driven by organic growth of 6.2% and inorganic growth of 5.7% from the recent acquisitions of Dust Free and PSP Products
Net income attributable to CSWI increased 20.0% to $36.1 million, compared to $30.1 million
Earnings per diluted share (“EPS”) increased 17.1% to $2.26, compared to $1.93
EBITDA grew 14.8% to $60.8 million, including margin expansion of 70 bps to 26.7%
Cash flow from operations increased 49.5% to $66.8 million, compared to $44.7 million
Issued and sold 1.265 million shares of stock at $285 per share in a successful follow-on equity offering, resulting in net proceeds of $347.4 million
Paid down $115.0 million, or all outstanding debt on the revolver following the equity offering, further improving the strength of the balance sheet

Fiscal 2025 First Half Highlights (comparisons to fiscal 2024 first half)

Total revenue increased 11.6% to $454.1 million, of which 7.0%, or $28.3 million was organic growth, and $18.8 million, or 4.6%, was inorganic growth from recent acquisitions
Net income attributable to CSWI increased 23.0% to $74.6 million, as compared to $60.7 million
EPS improved 21.5% to $4.73, compared to $3.90
EBITDA increased 17.4% to $126.1 million, including margin expansion of 140 bps to 27.8%
Cash flow from operations increased 36.4% to $129.5 million, compared to $94.9 million
Invested $32.3 million in acquisitions and $8.6 million in organic capital expenditures, while returning total cash of $15.4 million to shareholders through share repurchases of $8.9 million and dividends of $6.5 million

Comments from the Chairman, President, and Chief Executive Officer

Joseph B. Armes, CSW Industrials’ Chairman, President, and Chief Executive Officer, commented, “I am pleased to announce these outstanding results for the fiscal second quarter of 2025. CSWI’s record revenue for the quarter was driven by organic volume growth, pricing actions, and our strategic acquisitions of Dust Free and PSP Products. The team also achieved all-time record operating cash flow and record fiscal second quarter net income, earnings per diluted share, and EBITDA for the quarter.”

Armes continued, “During the second fiscal quarter 2025, CSWI issued equity to the public for the first time in our history. Strong investor demand, after the public announcement of our follow-on equity offering, allowed the Company to issue a total of 1.265 million shares of common stock proving that our track record of building long-term shareholder value is attractive to both pre-existing and new shareholders, while also being accretive to our earnings due to the full repayment of our debt and investment in interest-bearing accounts. In addition, our disciplined capital allocation philosophy led us to acquire PSP Products in the quarter, adding innovative products within the profitable electrical end market for CSWI. Subsequent to quarter end, the Company announced a mid-year, 14% increase in our quarterly cash dividend, reflecting our strong balance sheet, cash flows, and profitability.”

Fiscal 2025 Second Quarter Consolidated Results

Fiscal second quarter revenue was $227.9 million, a $24.3 million or 11.9% increase over the prior year period. Total revenue growth included $12.7 million of organic growth contributed from all operating segments (6.2% of the total 11.9% growth) due to increased volume and pricing actions, with the remainder contributed by the Dust Free and PSP acquisitions, which are both reported in the Contractor Solutions segment.

Gross profit in the fiscal second quarter was $103.9 million, representing 14.2% growth over $91.0 million in the prior year period. Gross profit margin expanded 90 bps to 45.6%, compared to 44.7% in the prior year period. The gross profit margin increase was primarily a result of volume leverage and pricing actions.

Operating expenses as a percentage of revenue were 23.0% in the current period, which was below the prior year period of 24.0%. Operating expenses were $52.4 million in the current year period, compared to $49.0 million in the prior year period and we were able to leverage our revenue growth while absorbing additional expenses related to the recent acquisitions, spending on business development and integration, and investing in team members.

Operating income in the current period was $51.5 million, compared to $42.0 million in the prior year period. Operating income as a percentage of revenue was 22.6% in fiscal 2025 second quarter, compared to 20.6% in the prior year period. The 200 bps improvement in operating income margin was a result of the previously mentioned improvement in the gross profit margin and leverage on operating expenses.

Interest expense was $1.3 million, compared to interest expense of $3.3 million in the prior year period. The decrease of $2.0 million was a result of a lower debt balance throughout the quarter and paying off the outstanding balance borrowed against our revolver and interest income earned from the net proceeds of the equity offering.

Other expense was $0.7 million, compared to other income of $1.9 million in the prior year period. The change in other expense of $2.6 million was primarily related to a gain of $1.4 million reported in the previous period in connection with the sale of a property previously held for investment that did not recur, in addition to losses arising from transactions in currencies other than functional currencies.

Net income attributable to CSWI (net of non-controlling interest in the joint venture) increased 20.0% to $36.1 million, compared to the prior year period of $30.1 million, and EPS increased 17.1% to $2.26, compared to $1.93 in the prior year period.

Fiscal 2025 second quarter EBITDA increased 14.8% to $60.8 million, up from $53.0 million in the prior year period. EBITDA margin expanded 70 bps to 26.7%, compared to 26.0% in the prior year period.

During the fiscal second quarter 2025, the Company issued equity to the public for the first time. On September 4, 2024, CSWI announced the commencement of an underwritten public offering of one million shares of common stock. The following day, the Company announced the upsize of the public offering to 1.1 million shares of common stock at a price of $285 per share, plus an option for the underwriters to purchase up to an additional 165 thousand shares. In the aggregate, CSWI was able to issue and sell 1.265 million shares of common stock at $285 for proceeds of approximately $347.4 million, net of underwriting discount and expenses incurred directly related to the offering. The follow-on equity offering increased the Company’s weighted average shares outstanding, used in determining the diluted EPS, by 336 thousand for the fiscal 2025 second quarter and 169 thousand for the first half of fiscal 2025.

During the fiscal second quarter, the Company paid down $115.0 million of debt, resulting in no borrowings outstanding under the revolving line of credit at quarter end, utilizing the record quarterly cash flows from operations of $66.8 million and the cash received from our follow-on equity offering. Cash flows from operations benefited from a $16.8 million tax payment deferral from fiscal first half 2025 to fiscal third quarter 2025 under a temporary federal tax relief related to the severe storms and flooding in Texas in early 2024.

Following quarter-end, the Company announced its twenty-third consecutive regular quarterly cash dividend. This dividend was increased by $0.03, or 14.3%, from the prior quarter to $0.24 per share due to our strong balance sheet, cash flows and profitability, and will be paid on November 8, 2024, to shareholders of record on October 25, 2024.

The Company’s effective tax rate for the fiscal second quarter was 26.1%. The third quarter GAAP tax rate may be lower than average, due to a potential $3.6M release of uncertain tax position reserves upon statue expiration of several pre-acquisition tax returns for TRUaire and Falcon.

Fiscal 2025 Second Quarter Segment Results

The Contractor Solutions segment revenue was $158.8 million, an $18.9 million or 13.5% increase over the prior year period, comprised of organic growth of $7.3 million (5.2% of the total 13.5% growth) driven by increased organic unit volumes and pricing actions, and inorganic growth of $11.6 million from the recent acquisitions of Dust Free and PSP Products. As compared to the prior year period, net revenue growth was driven by the HVAC/R, electrical, and plumbing end markets. Segment operating income improved to $46.3 million, compared to $39.0 million in the prior year period. The incremental profit resulted from revenue growth, gross profit leverage, and the inclusion of recently acquired businesses and was partially offset by increased spending on business integrations, strategic development activities, and employee compensation. Segment operating income margin in the fiscal second quarter was 29.1%, compared to 27.9% in the prior year period. Segment EBITDA in the fiscal second quarter was $53.7 million, or 33.8% of revenue, compared to $46.6 million, or 33.3% of revenue in the prior year period.

The Specialized Reliability Solutions segment revenue was $38.5 million, a $1.9 million or 5.2% increase from the prior year period. The increased net revenue was driven by growth in the energy, rail transportation, and mining end markets. Segment operating income improved to $5.8 million, as compared to $4.8 million in the prior year period, an increase of 20.5%. Segment operating income margin in the fiscal second quarter improved to 15.1%, compared to the prior year period of 13.2% as a result of manufacturing efficiencies. Segment EBITDA improved by 13.2% to $7.1 million in the fiscal second quarter, with an EBITDA margin of 18.4% as compared to 17.2% in the prior year period.

The Engineered Building Solutions segment revenue was a record $32.7 million, or 11.9% increase compared to $29.2 million in the prior year period, driven by strength in the backlog converting to revenue and market expansion. Segment operating income was $6.1 million, or 18.6% of revenue, compared to the prior year period of $5.2 million, or 17.9% of revenue, due to the management of operating expenses. Segment EBITDA and EBITDA margin also improved to $6.6 million and 20.1% in the fiscal second quarter, compared to $5.7 million and 19.5% in the prior year period.

Fiscal 2025 First Half Consolidated Results

Fiscal first half revenue was $454.1 million, representing 11.6% growth from $407.0 million in the prior year period, with growth in all three reporting segments. Of the $47.1 million total growth, $28.3 million (7.0% of the 11.6% total growth) resulted from organic growth, with the remainder ($18.8 million) contributed by the Dust Free and PSP acquisitions.

Gross profit in the fiscal first half was $211.3 million, representing $28.2 million (15.4%) growth from $183.1 million in the prior year period, with the incremental profit resulting predominantly from revenue growth driven by increased unit volumes, a slight increase from pricing actions, and recent acquisitions. Gross profit as a percentage of sales was 46.5%, compared to 45.0% in the prior year period. Gross margin improvement was a result of leveraging the volume increase, favorable product mix and pricing actions.

Operating expenses as a percentage of revenue were 23.1%, compared to 23.6% in the prior year period, as the increase in revenue growth outpaced operating expenses. Operating expenses in the current year period were $104.7 million, compared to $95.9 million in the prior year period. The additional expenses were related to employee compensation, expenses related to recent acquisitions including amortization of intangible assets, business development expenses, and integration costs.

In the current period, operating income was $106.6 million, compared to $87.2 million in the prior year period. The incremental operating income resulted from the gross profit increase, partially offset by the operating expense increase as discussed above. Operating income margin in the current period improved to 23.5%, compared to the prior year period of 21.4%. During the comparative periods, the enhanced operating income margin was due to the improvement in gross profit margin combined with the management of operating expenses.

Interest expense was $3.9 million, compared to interest expense of $7.3 million in the prior year period. The decrease of $3.4 million was a result of a lower debt balance throughout the first half of the year, then paying off the outstanding balance borrowed against our revolver and interest income earned from the net proceeds of the equity offering.

Other expense was $0.4 million, compared to other income of $2.2 million in the prior year period. The change in other expense of $2.6 million was primarily related to the aforementioned gain of $1.4 million, in addition to losses arising from transactions in currencies other than functional currencies.

In the current period, reported net income attributable to CSWI improved to $74.6 million, or $4.73 per diluted share. In the prior year period, reported net income attributable to CSWI was $60.7 million, or $3.90 per diluted share.

Fiscal 2025 first half EBITDA increased 17.4% to $126.1 million from $107.4 million in the prior year period. EBITDA as a percentage of revenue improved 140 bps to 27.8%, compared to 26.4%, in the prior year period.

Net cash provided by operating activities for the fiscal 2025 first half was a record $129.5 million, compared to $94.9 million in the prior year’s first half, as improved profit, and the tax payment deferrals led to a 36.4% increase compared to the prior year period. The Company paid down all $166.0 million of debt in the first half utilizing our record cash flow from operations and net proceeds from the follow-on equity offering.

The Company’s effective tax rate for the fiscal first half was 26.2% on a GAAP basis.

Fiscal 2025 First Half Segment Results

Contractor Solutions segment revenue was $319.3 million, a $39.4 million or 14.1% increase from the prior year period. Revenue growth was comprised of inorganic growth from Dust Free and PSP acquisitions ($18.8 million, or 6.7%, of growth), and organic growth of $20.6 million (7.4% of the total 14.1% growth) due to increased unit volumes and a slight increase from pricing actions. As compared to the prior year period, net revenue growth was driven primarily by the HVAC/R, plumbing, and electrical end markets. Segment operating income in the current year period was $96.1 million, compared to $78.7 million in the prior year period. The incremental profit resulted from the increased unit volumes, favorable product mix, and the inclusion of recent acquisitions, partially offset by increased expenses related to employee compensation and business integrations as the segment builds the infrastructure to support continued growth, and increased expenses related to the inclusion of Dust Free and PSP in the current period, including amortization of intangible assets. Segment operating income margin was 30.1%, compared to 28.1% in the prior year period, driven primarily by increased operating leverage from the additional volume, favorable product mix and pricing actions, combined with the management of operating expenses. Segment EBITDA in the current period was $112.0 million, or 35.1% of revenue, compared to $93.4 million, or 33.4% of revenue in the prior year period.

Specialized Reliability Solutions segment revenue grew to $75.3 million, a $1.0 million or 1.3% increase from the prior year period of $74.3 million, primarily due to pricing actions and increased unit volumes, with growth in the rail transportation end market and a decrease in mining. In the current year period, Segment operating income improved by 10.0% to $13.0 million, or 17.2% of revenue, compared to the prior year period of $11.8 million, or 15.9% of revenue. Improved segment operating income resulted primarily as a result of a favorable inventory adjustment in the first quarter as well as the increased volume. Segment EBITDA in the current period was $15.6 million, or 20.7% of revenue, compared to $14.7 million, or 19.8% of revenue in the prior year period.

Engineered Building Solutions segment revenue was $63.6 million, a $6.8 million or 11.9% increase over the prior year period, primarily due to the conversion of backlog into revenue and market expansion. Segment operating income increased 24.4% to $11.8 million, or 18.6% of revenue, compared to the prior year period of $9.5 million, or 16.7% of revenue, due to the increased net revenue, improved gross margin as a result of operating leverage, and management of operating expenses. Segment EBITDA in the current period was $12.8 million, or 20.1% of revenue, compared to $10.4 million, or 18.3% of revenue in the prior year period.

All percentages are calculated based upon the attached financial statements. Share count used in determining the diluted EPS is based on a weighted average of outstanding shares throughout the measurement period.

Conference Call Information

The Company will host a conference call today at 10:00 a.m. ET to discuss the results, followed by a question-and-answer session for the investment community. A live webcast of the call can be accessed at https://cswindustrials.gcs-web.com/. To access the call, participants may dial 1-877-407-0784, international callers may use 1-201-689-8560, and request to join the CSW Industrials earnings call.

A telephonic replay will be available shortly after the conclusion of the call and until Wednesday, November 13, 2024. Participants may access the replay at 1-844-512-2921, international callers may use 1-412-317-6671 and enter access code 13749338. The call will also be available for replay via webcast link on the Investors portion of the CSWI website www.cswindustrials.com.

Safe Harbor Statement

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as “may,” “should,” “expects,” “could,” “intends,” “plans,” “anticipates,” “estimates,” “believes,” “forecasts,” “predicts” or other similar expressions are intended to identify forward-looking statements, which include, without limitation, earnings forecasts, effective tax rate, statements relating to our business strategy and statements of expectations, beliefs, future plans and strategies and anticipated developments concerning our industry, business, operations, and financial performance and condition.

The forward-looking statements included in this press release are based on our current expectations, projections, estimates, and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the risk factors described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.

All forward-looking statements included in this press release are based on information currently available to us, and we assume no obligation to update any forward-looking statement except as may be required by law.

Non-GAAP Financial Measures

This press release includes an analysis of adjusted diluted earnings per share attributable to CSWI, adjusted net income attributable to CSWI, adjusted operating income and free cash flows, which are non-GAAP financial measures of performance. Attributable to CSWI is defined to exclude the income attributable to the non-controlling interest in the Whitmore JV.

CSWI utilizes adjusted EBITDA (earnings before interest, tax, depreciation and amortization) as an additional consolidated, non-GAAP financial measure, which consists of consolidated net income including income attributable to the non-controlling interest in the Whitmore JV, adjusted to remove the impact of income taxes, interest expense, depreciation, amortization and impairment, and significant nonrecurring items.

For a reconciliation of these measures to the most directly comparable GAAP measures and for a discussion of why we consider these non-GAAP measures useful, see the “Reconciliation of Non-GAAP Measures” section of this release.

About CSW Industrials, Inc.

CSW Industrials is a diversified industrial growth company with industry-leading operations in three segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions. CSWI provides niche, value-added products with two essential commonalities: performance and reliability. The primary end markets we serve with our well-known brands include: HVAC/R, plumbing, electrical, general industrial, architecturally-specified building products, energy, mining, and rail transportation. For more information, please visit www.cswindustrials.com.

Investor Relations

Alexa Huerta
Vice President, Investor Relations and Treasurer
214-489-7113
alexa.huerta@cswindustrials.com

CSW INDUSTRIALS, INC. CONSOLIDATED STATEMENTS OF INCOME (unaudited)

	Three Months Ended September 30,						Six Months Ended September 30,
(Amounts in thousands, except per share amounts)		2024			2023			2024			2023
Revenues, net	$	227,926		$	203,653		$	454,103		$	407,013
Cost of revenues		(124,025	)		(112,694	)		(242,781	)		(223,887	)
Gross profit		103,901			90,959			211,322			183,126
Selling, general and administrative expenses		(52,352	)		(48,966	)		(104,712	)		(95,927	)
Operating income		51,549			41,993			106,610			87,199
Interest expense, net		(1,341	)		(3,306	)		(3,861	)		(7,315	)
Other income (expense), net		(677	)		1,926			(418	)		2,240
Income before income taxes		49,531			40,613			102,331			82,124
Provision for income taxes		(12,910	)		(10,431	)		(26,859	)		(20,885	)
Net income		36,621			30,182			75,472			61,239
Less: Income attributable to redeemable noncontrolling interest		(570	)		(127	)		(828	)		(572	)
Net income attributable to CSW Industrials, Inc.	$	36,051		$	30,055		$	74,644		$	60,667

Net income per share attributable to CSW Industrials, Inc.
Basic	$	2.27		$	1.93		$	4.75		$	3.91
Diluted		2.26			1.93			4.73			3.90

Weighted average number of shares outstanding:
Basic		15,866			15,544			15,701			15,532
Diluted		15,941			15,588			15,770			15,568

CSW INDUSTRIALS, INC. CONSOLIDATED BALANCE SHEETS (unaudited)
(Amounts in thousands, except for per share amounts)	September 30, 2024			March 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	273,220		$	22,156
Accounts receivable, net of allowance for expected credit losses of $1,127 and $908, respectively		135,265			142,665
Inventories, net		183,731			150,749
Prepaid expenses and other current assets		17,281			15,840
Total current assets		609,497			331,410
Property, plant and equipment, net of accumulated depreciation of $109,891 and $103,515, respectively		95,128			92,811
Goodwill		255,899			247,191
Intangible assets, net		333,326			318,819
Other assets		65,446			53,095
Total assets	$	1,359,296		$	1,043,326

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	63,191		$	48,387
Accrued and other current liabilities		96,259			67,449
Total current liabilities		159,450			115,836
Long-term debt		—			166,000
Retirement benefits payable		1,093			1,114
Other long-term liabilities		148,404			125,298
Total liabilities		308,947			408,248
Commitments and contingencies (See Note 13)
Redeemable noncontrolling interest		20,183			19,355
Equity:
Common shares, $0.01 par value		177			164
Additional paid-in capital		494,535			137,253
Treasury shares, at cost (982 and 952 shares, respectively)		(106,636	)		(95,643	)
Retained earnings		651,145			583,075
Accumulated other comprehensive loss		(9,055	)		(9,126	)
Total equity		1,030,166			615,723
Total liabilities, redeemable noncontrolling interest and equity	$	1,359,296		$	1,043,326

CSW INDUSTRIALS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
	Six Months Ended September 30,
(Amounts in thousands)		2024			2023
Cash flows from operating activities:
Net income	$	75,472		$	61,239
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		7,045			6,613
Amortization of intangible and other assets		13,214			11,730
Provision for inventory reserves		840			2,490
Provision for doubtful accounts		723			227
Share-based compensation		6,891			5,556
Net gain on disposals of property, plant and equipment		(39	)		(1,446	)
Net pension benefit		33			33
Impairment of assets		—			91
Net deferred taxes		1,516			411
Changes in operating assets and liabilities:
Accounts receivable		11,301			(3,917	)
Inventories		(25,282	)		7,739
Prepaid expenses and other current assets		(2,085	)		(5,478	)
Other assets		153			(466	)
Accounts payable and other current liabilities		39,626			8,975
Retirement benefits payable and other liabilities		61			1,139
Net cash provided by operating activities		129,469			94,936
Cash flows from investing activities:
Capital expenditures		(8,587	)		(7,785	)
Proceeds from sale of assets held for investment		—			1,665
Proceeds from sale of assets		43			42
Cash paid for investments		(500	)		—
Cash paid for acquisitions		(32,305	)		(2,623	)
Net cash used in investing activities		(41,349	)		(8,701	)
Cash flows from financing activities:
Borrowings on line of credit		32,723			38,681
Repayments of line of credit and term loan		(198,723	)		(118,681	)
Purchase of treasury shares		(12,287	)		(3,928	)
Proceeds from equity issuance		347,407			—
Dividends		(6,523	)		(5,900	)
Net cash provided by (used in) financing activities		162,597			(89,828	)
Effect of exchange rate changes on cash and equivalents		347			(1,016	)
Net change in cash and cash equivalents		251,064			(4,609	)
Cash and cash equivalents, beginning of period		22,156			18,455
Cash and cash equivalents, end of period	$	273,220		$	13,846

Reconciliation of Non-GAAP Measures

We use adjusted earnings per share attributable to CSWI, adjusted net income attributable to CSWI, adjusted operating income, and adjusted EBITDA, together with financial measures prepared in accordance with GAAP, such as revenue, cost of revenue, operating expense, operating income and net income attributable to CSWI, to assess our historical and prospective operating performance and to enhance our understanding of our core operating performance. Free cash flow is a non-GAAP financial measure and is defined as cash flow from operations less capital expenditures. We also believe these measures are useful for investors to assess the operating performance of our business without the effect of non-recurring items. In the following tables, there could be immaterial differences in amounts presented due to rounding.

CSW Industrials, Inc.
Reconciliation of Net Income Attributable to CSWI to EBITDA
(unaudited)

(Amounts in thousands)	Three months ended September 30,						Six Months ended September 30,
		2024			2023			2024			2023
Net Income attributable to CSWI	$	36,051		$	30,055		$	74,644		$	60,667
Plus: Income attributable to redeemable noncontrolling interest		570			127			828			572
Net Income	$	36,621		$	30,182		$	75,472		$	61,239

Adjusting Items:
Interest expense, net		1,341			3,306			3,861			7,315
Income tax expense		12,909			10,431			26,859			20,886
Depreciation & amortization		9,951			9,045			19,883			17,960
EBITDA	$	60,823		$	52,964		$	126,075		$	107,399
EBITDA % Revenue		26.7	%		26.0	%		27.8	%		26.4	%

CSW Industrials, Inc.
Reconciliation of Segment Operating Income to Segment EBITDA
(unaudited)

(Amounts in thousands)	Three months ended September 30, 2024
	Contractor Solutions			Specialized Reliability Solutions			Engineered Building Solutions			Corporate and Other			Consolidated
Revenue, net	$	158,835		$	38,535		$	32,673		$	(2,115	)	$	227,927

Operating Income	$	46,254		$	5,819		$	6,082		$	(6,606	)	$	51,550
% Revenue		29.1	%		15.1	%		18.6	%					22.6	%

Adjusting Items:
Other income (expense), net		(543	)		(121	)		(12	)		(2	)		(678	)
Depreciation & amortization		8,002			1,409			494			45			9,951
EBITDA	$	53,713		$	7,108		$	6,564		$	(6,562	)	$	60,823
% Revenue		33.8	%		18.4	%		20.1	%					26.7	%

(Amounts in thousands)	Three months ended September 30, 2023
	Contractor Solutions			Specialized Reliability Solutions			Engineered Building Solutions			Corporate and Other			Consolidated
Revenue, net	$	139,902		$	36,614		$	29,211		$	(2,075	)	$	203,653

Operating Income	$	39,025		$	4,829		$	5,233		$	(7,095	)	$	41,993
% Revenue		27.9	%		13.2	%		17.9	%					20.6	%

Adjusting Items:
Other income (expense), net		575			(54	)		3			1,402			1,926
Depreciation & amortization		7,045			1,505			453			42			9,045
EBITDA	$	46,645		$	6,280		$	5,690		$	(5,651	)	$	52,964
% Revenue		33.3	%		17.2	%		19.5	%					26.0	%

CSW Industrials, Inc.
Reconciliation of Segment Operating Income to Segment EBITDA
(unaudited)

(Amounts in thousands)	Six Months ended September 30, 2024
	Contractor Solutions			Specialized Reliability Solutions			Engineered Building Solutions			Corporate and Other			Consolidated
Revenue, net	$	319,252		$	75,327		$	63,566		$	(4,041	)	$	454,104

Operating Income	$	96,138		$	12,970		$	11,806		$	(14,304	)	$	106,610
% Revenue		30.1	%		17.2	%		18.6	%					23.5	%

Adjusting Items:
Other income (expense), net		(147	)		(183	)		(19	)		(68	)		(418	)
Depreciation & amortization		15,985			2,832			979			87			19,883
EBITDA	$	111,976		$	15,619		$	12,766		$	(14,285	)	$	126,075
% Revenue		35.1	%		20.7	%		20.1	%					27.8	%

(Amounts in thousands)	Six Months ended September 30, 2023
	Contractor Solutions			Specialized Reliability Solutions			Engineered Building Solutions			Corporate and Other			Consolidated
Revenue, net	$	279,857		$	74,326		$	56,798		$	(3,967	)	$	407,014

Operating Income	$	78,692		$	11,794		$	9,493		$	(12,780	)	$	87,199
% Revenue		28.1	%		15.9	%		16.7	%					21.4	%

Adjusting Items:
Other income (expense), net		747			(91	)		11			1,573			2,240
Depreciation & amortization		13,940			3,035			895			90			17,960
EBITDA	$	93,380		$	14,738		$	10,398		$	(11,117	)	$	107,399
% Revenue		33.4	%		19.8	%		18.3	%					26.4	%

CSW INDUSTRIALS, INC.
Reconciliation of Operating Cash Flow to Free Cash Flow
(Unaudited)

(Amounts in thousands)	Three Months Ended September 30,						Six Months ended September 30,
		2024			2023			2024			2023
Net cash provided by operating activities	$	66,814		$	44,679		$	129,469		$	94,936
Less: Capital expenditures		(5,486	)		(2,814	)		(8,587	)		(7,785	)
Free cash flow	$	61,328		$	41,865		$	120,882		$	87,151
Free cash flow % EBITDA		100.8	%		79.0	%		95.9	%		81.1	%

The MIL Network –

January 25, 2025

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