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Friday, April 16, 2010
Thursday, April 15, 2010
Invest in Indonesia now or miss the boat, says Trade Minister
Indonesian Trade Minister Mari Elka Pangestu has put foreign investors on notice: if you want a share in Indonesia's growth, best do it soon.
The country's solid economic performance lately has put it back on the global investment radar. International ratings agencies have raised Indonesia's sovereign credit ratings and global funds are buying into local financial assets, raising the value of the local currency to its highest point in 33 months and the main stock index to record levels.
Mari said the Indonesian government was also working to create a better investment environment, particularly with its logistics blueprint to ungrade local port and ground transport infrastructure.
Chinese Premier Wen Jiabao will also visit in late April, bringing hopes of more investment attention from the world's fastest growing economy.
source & article: The Jakarta Globe
The country's solid economic performance lately has put it back on the global investment radar. International ratings agencies have raised Indonesia's sovereign credit ratings and global funds are buying into local financial assets, raising the value of the local currency to its highest point in 33 months and the main stock index to record levels.
Mari said the Indonesian government was also working to create a better investment environment, particularly with its logistics blueprint to ungrade local port and ground transport infrastructure.
Chinese Premier Wen Jiabao will also visit in late April, bringing hopes of more investment attention from the world's fastest growing economy.
source & article: The Jakarta Globe
Wednesday, April 14, 2010
Asian Development Bank predicts 7.5% growth
The worst of the global financial crisis has passed for 'Developing Asia', a region including China, India and most of Southeast Asia, according to the Asian Development Bank (ADB), which predicted economic growth of 7.5% this year and 7.3% in 2011.
The optimism is based on a recent rebound in global trade and has been led mainly by China and India, according to the ADB. Stimulus packages and monetary easing strategies have contributed to a regional increase in investment.
Regional GDP grew only 5.2% last year, an eight-year low.
The ADB warned that there were still risks if global trade slowed, commodity prices increased or unless regional leaders maintained responsible fiscal and monetary policies.
source & article: Philippines News Agency
Regional GDP grew only 5.2% last year, an eight-year low.
The ADB warned that there were still risks if global trade slowed, commodity prices increased or unless regional leaders maintained responsible fiscal and monetary policies.
source & article: Philippines News Agency
Tuesday, April 13, 2010
Singapore to showcase Asian fashion to the world
Singapore will launch trade fashion show "Blueprint" this month, showcasing 50 mostly Asian designers to an international audience and shoppers from the general public.
Organizers hope the event will become the basis of the Asian Fashion Exchange (AFX), Asia's answer to New York and Milan's Fashion Weeks.
Singapore seems a fitting location for the event, with the city-state opening a raft of famous brand and designer stores and attracting shoppers from across Asia over the past years, despite poor economic conditions. These shopping travelers have been arriving in increasing numbers recently; their spending an indicator of better things to come.
While Singapore is not yet famous as a fashion capital, AFX organizers hope a growing annual event featuring the region's best fashion talent will put it into the league of cities like New York and Tokyo.
source & article: Reuters (via Yahoo)
Organizers hope the event will become the basis of the Asian Fashion Exchange (AFX), Asia's answer to New York and Milan's Fashion Weeks.
Singapore seems a fitting location for the event, with the city-state opening a raft of famous brand and designer stores and attracting shoppers from across Asia over the past years, despite poor economic conditions. These shopping travelers have been arriving in increasing numbers recently; their spending an indicator of better things to come.
While Singapore is not yet famous as a fashion capital, AFX organizers hope a growing annual event featuring the region's best fashion talent will put it into the league of cities like New York and Tokyo.
source & article: Reuters (via Yahoo)
Malaysia's e-commerce industry will grow in 2010
Malaysia's e-commerce industry could grow by 20% this year thanks to private industry and government support, says the nation's information and communications technology association PIKOM.
PIKOM has organized National IT Month to highlight the benefits of the online economy. Events in July-August 2010 will include: the PC Fair 2010, E-Commerce Media Supplement, Strategic Review 2010, Leadership Summit, Business Success Forum, SME Business Success With ICT Series and the World Cyber Games Final Round.
The government sees e-commerce development is vital to promoting the interests of small and medium-sized enterprizes, increasing their visibility and creating opportunities for international business.
As it stands, Malaysia's e-commerce industry represents around US$6 billion in business-to consumer-transactions, and around $20bn business-to-business.
source & article: Business Times
PIKOM has organized National IT Month to highlight the benefits of the online economy. Events in July-August 2010 will include: the PC Fair 2010, E-Commerce Media Supplement, Strategic Review 2010, Leadership Summit, Business Success Forum, SME Business Success With ICT Series and the World Cyber Games Final Round.
The government sees e-commerce development is vital to promoting the interests of small and medium-sized enterprizes, increasing their visibility and creating opportunities for international business.
As it stands, Malaysia's e-commerce industry represents around US$6 billion in business-to consumer-transactions, and around $20bn business-to-business.
source & article: Business Times
Monday, April 12, 2010
Asean Infrastructure Fund coming soon?
The AIF, which will be operated through the Asian Development Bank in Manila, is intended to support entrepreneurial infrastructure projects other than those already able to raise investment through ADB bonds. Roads and transport are expected to get most attention.
The smooth flow of goods and services around the region is essential to economic development, and advances Asean's goal of becoming a more integrated economic community by 2015.
sources & articles: Bernama thestar online
Microfinance: robbing the poor to feed the rich?
As microfinance lenders grow to the point where IPOs are necessary to raise adequate capital for their operations, some are raising questions about the industry's purpose and ethics.
This comes as SKS Microfinance announced it was going public; the first Indian microfinance company to do so. The offering is expected to raise US$250-350 million.
Since the microfinance industry exists to serve poor clients, a debate is emerging over what happens once wealthier shareholders start demanding higher returns on their investments.
source & article: FinanceMarkets.co.uk
This comes as SKS Microfinance announced it was going public; the first Indian microfinance company to do so. The offering is expected to raise US$250-350 million.
Since the microfinance industry exists to serve poor clients, a debate is emerging over what happens once wealthier shareholders start demanding higher returns on their investments.
source & article: FinanceMarkets.co.uk
Cheaper airfares to attract Indian students to Malaysia
Malaysia Airlines will offer Indian students around 50% discounts on flights and other incentives to promote Malaysia's image as an international education hub.
The airline has inked an arrangement with with the Malaysia Study Centre (a division of the AEC Business School India) to cater for the growing number of overseas students from Tamil Nadu in India's south east.
Malaysia Airlines currently operates 29 flights a week between Malaysia and five Indian gateways: Bangalore, Chennai, Hyderabad, Mumbai and New Delhi.
source & article: Bernama
The airline has inked an arrangement with with the Malaysia Study Centre (a division of the AEC Business School India) to cater for the growing number of overseas students from Tamil Nadu in India's south east.
Malaysia Airlines currently operates 29 flights a week between Malaysia and five Indian gateways: Bangalore, Chennai, Hyderabad, Mumbai and New Delhi.
source & article: Bernama
Restore workers' wages after recession: Singapore minister
Several companies asked their workers to accept pay cuts or salary freezes from 2008 in desperate attempts to survive the recession. Companies that managed to prosper should now reward workers in order to retain them and move forward, Mr. Gan said.
He also announced new initiatives to encourage older workers to rejoin the workforce and remain there past age 55, including offers of extra training and upgrading of workplaces to make them more friendly to older employees.
source & article: The Straits Times
Sunday, April 11, 2010
Science & Technology entrepreneur workshops
The National University of Singapore Faculty of Science will hold a number of workshops for entrepreneurs in late April.
Guest speaker at the events will be Dr. Gunther Festel of Festel Capital, an investment firm specializing in environmental, health, energy, materials and nutrition technologies. Topics will cover the importance of entrepreneurs and start-ups in innovation, an introduction to start-ups and practical advice on getting things going.
article & source: SG Entrepreneurs
Guest speaker at the events will be Dr. Gunther Festel of Festel Capital, an investment firm specializing in environmental, health, energy, materials and nutrition technologies. Topics will cover the importance of entrepreneurs and start-ups in innovation, an introduction to start-ups and practical advice on getting things going.
article & source: SG Entrepreneurs
Thursday, April 8, 2010
Use more local currencies in trade: ASEAN
ASEAN nations are studying ways to boost the use of local currencies in intra-regional trade, following similar moves by China.
Increased use of local currencies simplifies foreign exchange deal for importers and exporters. Although the US dollar remains the dominant trade currency, the global financial crisis has seen a shift in economic power away from the West and towards Asia and brought calls for less reliance on US currency.
ASEAN is making a renewed push for economic integration. ASEAN central bank governors are also said to be investigating a regional payment system for commercial trade, and the bloc completed a US$120bn regional currency swap with China, South Korea and Japan last month.
article & source: ChannelNewsAsia.com
Increased use of local currencies simplifies foreign exchange deal for importers and exporters. Although the US dollar remains the dominant trade currency, the global financial crisis has seen a shift in economic power away from the West and towards Asia and brought calls for less reliance on US currency.
ASEAN is making a renewed push for economic integration. ASEAN central bank governors are also said to be investigating a regional payment system for commercial trade, and the bloc completed a US$120bn regional currency swap with China, South Korea and Japan last month.
article & source: ChannelNewsAsia.com
Ernst & Young seeks Singapore entrepreneurs
Accounting firm Ernst & Young is seeking nominations for its Singapore Entrepreneur of the Year (EOY) Award.
Candidates will be judged on their entrepreneurial spirit, innovation, personal integrity or influence, strategic vision, and their companies' financial performance and global impact.
E&Y's Country Managing Partner, Steven Pham, hopes the award will "inspire more local SMEs to think beyond traditional constraints... to expand their businesses abroad". Nominations will be open from now until 30 June 2010.
article & source: Straits Times
(NB: E&Y also operates the EOY Award in other countries across the region, including Mayalsia and the Philippines.)
Candidates will be judged on their entrepreneurial spirit, innovation, personal integrity or influence, strategic vision, and their companies' financial performance and global impact.
E&Y's Country Managing Partner, Steven Pham, hopes the award will "inspire more local SMEs to think beyond traditional constraints... to expand their businesses abroad". Nominations will be open from now until 30 June 2010.
article & source: Straits Times
(NB: E&Y also operates the EOY Award in other countries across the region, including Mayalsia and the Philippines.)
ASEAN economic integration poised to advance
Finance Ministers from Asean nations met in Hanoi this week to plan further steps toward economic integration.
In their meeting ahead of the 16th Asean Leaders Summit, they pledged to implement the proposed Asean Trade in Goods Agreement (ATIGA) by May 2010, and the Asean Comprehensive Investment Agreement (ACIA) by October.
The agreements are designed to facilitate the free flow of goods, services, labor and investment across the region. Six nations have already eliminated tariffs on 99.5% of tariff lines, while the 'CLMV' countries (Cambodia, Laos, Myanmar & Vietnam) have reduced tariffs to around 0.5% on 98.86% of tariff lines, with a view to complete elimination by 2015.
If all goes well, these moves will bring the region closer to the dream of a fully-integrated Asean Economic Community.
Plans to integrate economies have been progressing smoothly in the past decade. Since 2000, Asean intra-trade has tripled, rising from US$166.8 to $458.1. Between 2006 and 2008, foreign direct investment (FDI) from outside Asean rose 8.6%, while FDI within the organization rose 42.6% in the same period.
article & source: Business Times (Malaysia)
In their meeting ahead of the 16th Asean Leaders Summit, they pledged to implement the proposed Asean Trade in Goods Agreement (ATIGA) by May 2010, and the Asean Comprehensive Investment Agreement (ACIA) by October.
The agreements are designed to facilitate the free flow of goods, services, labor and investment across the region. Six nations have already eliminated tariffs on 99.5% of tariff lines, while the 'CLMV' countries (Cambodia, Laos, Myanmar & Vietnam) have reduced tariffs to around 0.5% on 98.86% of tariff lines, with a view to complete elimination by 2015.
If all goes well, these moves will bring the region closer to the dream of a fully-integrated Asean Economic Community.
Plans to integrate economies have been progressing smoothly in the past decade. Since 2000, Asean intra-trade has tripled, rising from US$166.8 to $458.1. Between 2006 and 2008, foreign direct investment (FDI) from outside Asean rose 8.6%, while FDI within the organization rose 42.6% in the same period.
article & source: Business Times (Malaysia)
Wednesday, April 7, 2010
Indonesia to help industries affected by free trade agreement
Indonesia no longer plans to renegotiate the ASEAN free trade agreement with China (ACFTA) and will instead find ways to assist local industries most impacted by the change.
The powerful Indonesian Chamber of Commerce and Industry (Kadin), however, is still pushing for a delay in the implementation of ACFTA, claiming many manufacturers are not ready to compete with their Chinese counterparts.
Government assistance might take the form of loans and facilities for capacity building some industries. A working committee consiting of representatives from relevant business and economic ministries will also monitor trade developments between Indonesia and China, while China itself has promised "sustainable" and "balanced" trade, saying it will accept more imports from Indonesia should a trade surplus widen.
article & source: The Jakarta Globe
The powerful Indonesian Chamber of Commerce and Industry (Kadin), however, is still pushing for a delay in the implementation of ACFTA, claiming many manufacturers are not ready to compete with their Chinese counterparts.
Government assistance might take the form of loans and facilities for capacity building some industries. A working committee consiting of representatives from relevant business and economic ministries will also monitor trade developments between Indonesia and China, while China itself has promised "sustainable" and "balanced" trade, saying it will accept more imports from Indonesia should a trade surplus widen.
article & source: The Jakarta Globe
Tuesday, April 6, 2010
Singapore the cheapest financial center for office rents
Singapore is the cheapest major financial center in which to rent office space, according to a study, making the city-state more attractive to business start-ups.
The study, published by consultants Colliers International, put Singapore's average annual office rent at US$53.71 (S$75) per square foot, far below nearby Hong Kong at US$161.14 ($225).
Though the pace has slowed recently, Singapore's office rental costs have continued to decrease. The first stage of the new Marina Bay Financial Centre (1.6 million square feet) is already fully leased, and another 6 million square feet of space is planned for the Central Business District.
Although Singapore's position on the list was 24th most expensive, it remains cheaper than any other city regarded as a major financial center. The top three positions were filled by Hong Kong, Tokyo, and London's West End.
article & source: channelnewsasia.com
The study, published by consultants Colliers International, put Singapore's average annual office rent at US$53.71 (S$75) per square foot, far below nearby Hong Kong at US$161.14 ($225).
Though the pace has slowed recently, Singapore's office rental costs have continued to decrease. The first stage of the new Marina Bay Financial Centre (1.6 million square feet) is already fully leased, and another 6 million square feet of space is planned for the Central Business District.
Although Singapore's position on the list was 24th most expensive, it remains cheaper than any other city regarded as a major financial center. The top three positions were filled by Hong Kong, Tokyo, and London's West End.
article & source: channelnewsasia.com
New rules will discourage M&A activity in Malaysia: CIMB chief
New rules proposed by the Securities Commission (SC) could wipe out Malaysian M&A activity, says the chief executive of CIMB, the country's second largest financial services provider.
The rules would increase the shareholder threshold for takeover of a company's assets and liabilities to 75% and may sink the deal completely if more than 10% of shareholders resist outright.
CIMB Groups holdings Bhd chief executive Nazir Razak says there is a danger that M&A activity may disappear, and suggests the plan is just a populist move.
"When people say the higher the threshold, the better it is for minorities, it is very silly. When you set a threshold where there are no deals, how is it good for minorities?" he says.
article & source: The Edge Financial Daily
The rules would increase the shareholder threshold for takeover of a company's assets and liabilities to 75% and may sink the deal completely if more than 10% of shareholders resist outright.
CIMB Groups holdings Bhd chief executive Nazir Razak says there is a danger that M&A activity may disappear, and suggests the plan is just a populist move.
"When people say the higher the threshold, the better it is for minorities, it is very silly. When you set a threshold where there are no deals, how is it good for minorities?" he says.
article & source: The Edge Financial Daily
Private sector sees huge opportunities in Asian healthcare
Asia's rapidly growing economies and aging populations are too much for their healthcare systems to cope, presenting new chances for private-government tie-ups.
One example is Phillips Healthcare in the Philippines, which opened up a heart center in cooperation with government health authorities, and is able to analyze images sent from all over the country.
As average ages increase across Asia, a rise in heart disorders and infectious diseases could see this kind of partnership become more common; a move that would be welcomed by the industry.
article & source: channelnewsasia.com
One example is Phillips Healthcare in the Philippines, which opened up a heart center in cooperation with government health authorities, and is able to analyze images sent from all over the country.
As average ages increase across Asia, a rise in heart disorders and infectious diseases could see this kind of partnership become more common; a move that would be welcomed by the industry.
article & source: channelnewsasia.com
Monday, April 5, 2010
ASEAN's Free Trade Area: 2015 a 'stretch goal'?
Larger economies such as the USA and European Union now prefer to negotiate trade agreements with individual countries, rather than the bloc as a whole. A region-wide Free Trade Agreement with China came into effect on 1 January 2010, but is now being renegotiated with ASEAN's largest economy Indonesia, after pressure from domestic industries.
Economic gaps are obvious between member states such as Singapore and Laos. A successful Free Trade Area would also necessitate improvements in transport and financial infrastructure across borders, to ensure the free movement of capital, goods and people.
article & source: Business World
Penang for heritage tourists?
Penang has begun to re-orient itself as a heritage tourism destination, especially since the addition of Georgetown's historic center to the UNESCO World Heritage List two years ago.
Traditionally promoted as a beach resort, Penang has unique and more significant cultural attractions. Investors have only just begun to understand their potential. Recent private sector initiatives have seen the restoration of Georgetown's pre-war buildings and, together with the Malasyia My Second Home campaign, have led to the area's reinvigoration. 164 pre-war properties changed hands in the first half of 2009 alone, compared to a total of 120 in the whole year of 2008.
Many formerly neglected shophouses are now boutique apartments, cafes, and art galleries. Continued promotion of Penang's historic and cultural assets to tourists and potential businesses would be a great benefit to the local economy.
article & source: Business Times (opinion piece)
Traditionally promoted as a beach resort, Penang has unique and more significant cultural attractions. Investors have only just begun to understand their potential. Recent private sector initiatives have seen the restoration of Georgetown's pre-war buildings and, together with the Malasyia My Second Home campaign, have led to the area's reinvigoration. 164 pre-war properties changed hands in the first half of 2009 alone, compared to a total of 120 in the whole year of 2008.
Many formerly neglected shophouses are now boutique apartments, cafes, and art galleries. Continued promotion of Penang's historic and cultural assets to tourists and potential businesses would be a great benefit to the local economy.
article & source: Business Times (opinion piece)
Friday, April 2, 2010
Lexus wants 10% of Thai luxury auto market
Despite the economic downturn, Thai luxury sales grew 5% last year with a total of 7,700 vehicles sold. Projections indicate this trend should continue in 2011-12. Currently, Mercedes-Benz dominates the market (as it tends to do across Asia) with a 50% share.
Lexus sales increased by 6% last year, but its share of the Thai luxury market is still only 3.6%.
article & source: Bangkok Post
Convergys wins "BPO Employer of the Year" in Philippines
The Philippines' largest private employer, Convergys, has won the "BPO Employer of the Year" award at the Information & Communications Technology (ICT) Awards in Manila.
Cincinnati, Ohio-based Convergys, which specializes in relationship management and consulting. It now employs over 20,000 people in the Philippines, mainly in the call center/software support industry, and opened five new locations in 2009.
According to the company, the award was given "based on its leadership, size, diversity, commitment to continuous improvement, corporate social responsibility involvement, and its active support of the international information and communication technology industry in the Philippines." It is the second time the company has won the award since it was first given in 2007.
article & source: Yahoo News (reprinted media release)
Cincinnati, Ohio-based Convergys, which specializes in relationship management and consulting. It now employs over 20,000 people in the Philippines, mainly in the call center/software support industry, and opened five new locations in 2009.
According to the company, the award was given "based on its leadership, size, diversity, commitment to continuous improvement, corporate social responsibility involvement, and its active support of the international information and communication technology industry in the Philippines." It is the second time the company has won the award since it was first given in 2007.
article & source: Yahoo News (reprinted media release)
Thursday, April 1, 2010
Foreigners will be allowed to buy property in Indonesia
Indonesia continues to woo more foreign direct investment by allowing foreigners to buy apartments and commercial property, hopefully by the third quarter of 2010.
Until now, foreigners looking to buy property may only do so through a nominee or via a local Indonesian firm, which offers less security than buyng direct. Gita Wirjawan, head of Indonesia's investment agency, is optimistic this will change soon.
The Indonesian government also hopes to introduce further reforms in the coming year designed to attract more overseas attention, such as changes to land and labor laws.
article & source: Reuters via Straits Times
Until now, foreigners looking to buy property may only do so through a nominee or via a local Indonesian firm, which offers less security than buyng direct. Gita Wirjawan, head of Indonesia's investment agency, is optimistic this will change soon.
The Indonesian government also hopes to introduce further reforms in the coming year designed to attract more overseas attention, such as changes to land and labor laws.
article & source: Reuters via Straits Times
Can Hong Kong stay relevant as mainland China rises?
Shanghai's economic rise might leave corporate powers wondering why they need Hong Kong as a gateway to China, says BusinessWeek.
Shanghai's economy is now larger than Hong Kong's, for the first time in three decades. While Hong Kong's per capita GDP is still nearly three times that of Shanghai, if mainland China continues to follow its current trajectory, Shanghai's population of 19 million will match it in the long term. Even Shenzhen, near the border, is attracting investment that once would have gone instantly to Hong Kong. Can Hong Kong maintain its relevance as a stepping stone when money can go instantly to the source?
There are caveats of course, and still many reasons to prefer Hong Kong. But the writer wonders whether Hong Kong's economic and relative political freedoms might eventually make it a better haven for entrepreneurs, letting other cities handle big business.
article & source: BusinessWeek
Shanghai's economy is now larger than Hong Kong's, for the first time in three decades. While Hong Kong's per capita GDP is still nearly three times that of Shanghai, if mainland China continues to follow its current trajectory, Shanghai's population of 19 million will match it in the long term. Even Shenzhen, near the border, is attracting investment that once would have gone instantly to Hong Kong. Can Hong Kong maintain its relevance as a stepping stone when money can go instantly to the source?
There are caveats of course, and still many reasons to prefer Hong Kong. But the writer wonders whether Hong Kong's economic and relative political freedoms might eventually make it a better haven for entrepreneurs, letting other cities handle big business.
article & source: BusinessWeek
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