Hi all,

In today's bulletin: North Korea carries out its threat to demolish inter-Korean liaison office, China steps up measures to contain second wave of coronavirus infections in Beijing, India and China troops clash in the Galwan valley in western Himalayas, Singapore retains top spot as world's most competitive economy, Malaysian PM refutes cancer reports, and more.

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DID THE LEADER'S SISTER ORDER INTER-KOREAN LIAISON OFFICE DEMOLITION?

North Korea's ties with South Korea took a hit after Pyongyang blew up an office set up in 2018 in the border town of Kaesong, today. The announcement was made by both sides with North Korea's KCNA state news saying the liaison office was "tragically ruined with a terrific explosion".

The demolition came days after North Korean leader Kim Jong Un's sister Kim Yo Jong declared that the "useless north-south joint liaison office" would soon be seen "completely collapsed". Ms Kim is increasingly being seen as the second-in-command in Pyongyang.

The liaison office was the first permanent communication centre for the two neighbours. It was opened in September 2018, as part of an agreement signed between the North's leader and the South's President Moon Jae-in during their first summit earlier that year.

Tensions between the two neighbours have been rising sharply in recent weeks after defector groups in the South started sending propaganda leaflets and humanitarian aid into North Korea, despite criticism from both sides.

Last week, Pyongyang severed communication links with Seoul. The demolition of the liaison office took place a day after South Korea marked the 20th anniversary on Monday of the historic first summit between the two nations, during which the two sides had pledged to step up dialogue and cooperation.

Observers believe the demolition could be Pyongyang's way of increasing pressure on Seoul. Over the weekend, Ms Kim also asked the military to prepare for the next action.

Also read:

ST Editorial: Pandemic amplifies Pyongyang's woes

South Korea Correspondent Chang May Choon: North Korea takes aim at South to distract from crumbling economy, raise Kim Yo Jong status: Experts

ORIGINS OF VIRUS UNCERTAIN AS CHINA RUSHES TO CONTROL SPREAD

The World Health Organisation said it is closely tracking the outbreak and has offered more technical help to China as Beijing moved swiftly to restrict the movement of people and trace close to 200,000 people who visited the Xinfadi market - where the new cluster of cases seemingly originated - in the past fortnight, amid fears of a second wave of coronavirus infections.

The origin of the virus in the market is not clear yet but state-run newspapers said the virus was discovered on chopping boards used for imported salmon. China, which is a major importer of seafood and meat, has stopped purchases from European salmon suppliers for now.

WHO and other experts say imports or packaging of salmon could not be the "primary hypothesis of how the virus spread. Twenty-seven new cases were reported in the country today, taking the overall tally of infections in Beijing to 196.

Officials in the capital city, meanwhile, moved to set up 24-hour security checkpoints, close schools, ban outbound travel of high-risk people, suspend transportation services outside the city and conduct large-scale disinfections.

Read also:

Next three days 'crucial' as Beijing battles Xinfadi market coronavirus outbreak amid growing panic

INDIA-CHINA BORDER CLASH

A standoff between India and China in the Galwan valley in western Himalayas took a turn for the worse with casualties being reported in the clash between troops of the two nuclear-armed neighbours.

The Indian army said an Indian officer and two soldiers were killed in a "violent faceoff" with Chinese troops on the contested border, which reportedly took place while a de-escalation process was underway.

China, meanwhile, accused Indian troops of crossing the disputed border twice on Monday and the country's Global Times newspaper said the Chinese military suffered casualties.

Read also:

China sees 'consensus' with India over border tensions

India and China add to nuclear arsenals in 2020

SINGAPORE RETAINS TOP SPOT AS WORLD'S MOST COMPETITIVE ECONOMY; REPUBLIC PREPARES FOR PHASE 2 REOPENING

Singapore has retained the top spot as the world's most competitive economy in the latest edition of the IMD World Competitiveness Ranking, for the second straight year.

The other countries in the list of top five are Denmark, Switzerland, the Netherlands and Hong Kong. As a group, this illustrates the strength of many small economies amid the disruption caused by the coronavirus pandemic, the Institute for Management Development (IMD), which is based in Lausanne, Switzerland, said in a statement.

The Republic, meanwhile, is preparing for its Phase 2 reopening from June 19, when most businesses and social activities will be allowed to resume, with safety measures in place. In another development, Transport Minister Khaw Boon Wan said the Changi Airport Terminal 5 project will be paused for at least two years amid continuing uncertainty in the aviation sector.

Also read:

151 new coronavirus cases in Singapore, lowest daily tally in more than 2 months

Local economy could shrink 5.8% this year, private forecasters say

MALAYSIAN PM DENIES REPORTS OF CANCER RECURRENCE

Malaysian Prime Minister Muhyiddin Yassin refuted reports of cancer recurrence, releasing letters from doctors who found no evidence of cancer currently.

Tan Sri Muhyiddin was diagnosed with pancreatic cancer in 2018, according to a signed letter from Pantai Medical Centre released by the Prime Minister's Office. He was fully treated with surgery to remove the tumour, followed by chemotherapy that was completed two years ago, it said.

IN OTHER NEWS

US COMPANIES CAN WORK WITH HUAWEI, SAYS COMMERCE DEPT: The United States has confirmed a report that it will amend its prohibitions on US companies doing business with China's Huawei to allow them to work together on setting standards for next-generation 5G networks, Reuters reported. The US Commerce Department and other agencies signed off on the rule change, it said. Meanwhile, another report said US Secretary of State Mike Pompeo plans to meet a Chinese delegation at a US military base in Hawaii this week to discuss bilateral ties that have soured recently.

TAIWAN JETS 'DRIVE AWAY' CHINESE FIGHTER PLANE: Taiwan air force jets "drove away" a Chinese fighter plane that briefly entered Taiwan's air defence identification zone today, the defence ministry said, reporting the third intrusion in a week. The single J-10 fighter was given radio warnings to leave before the Taiwanese air force jets ushered the intruder out of the airspace south-west of the island, the ministry said.

JAPAN HALTS DEPLOYMENT OF AEGIS ASHORE MISSILE DEFENCE: Japanese Defence Minister Taro Kono said on Monday that he had suspended plans to deploy two Aegis Ashore air defence radar stations designed to detect and counter North Korean ballistic missiles. The Defence Minister told reporters that Japan was halting the deployment due to technical issues as well as cost.

That's it for today. Thanks for reading, stay safe and we'll be back with you tomorrow.

Shefali