MANILA—Looking forward to the ratification of the Regional Comprehensive Economic Partnership (RCEP) Agreement and its eventual implementation, Department of Trade and Industry (DTI) Secretary Ramon M. Lopez expressed optimism that the trade agreement will not only facilitate the recovery efforts of the country but will also pave the way for the internationalization and deeper participation of micro, small, and medium enterprises (MSMEs) into Global Value Chains (GVCs).

“One big advantage of the RCEP Agreement is the wider cumulation area for raw materials. This means our MSMEs can source inputs from the 15 RCEP Parties, process the products here in the country, and export the same to the region at a preferential arrangement. So, a Philippine manufacturer can source raw materials from China, and export the finished product to Japan, South Korea, Australia or New Zealand,” Lopez explained.

The trade chief also stressed that having one set of simplified rules in trade will also facilitate trade transactions and will reduce administrative cost for exporters. In the process, this will encourage more production and manufacturing activities in the country. This means more jobs and business opportunities for the Filipinos.

“The RCEP region accounts to around 50% of Philippine exports and 68% of Philippine import sources. Hence, the country cannot afford not to be part of this free trade area,” Sec. Lopez added.

The RCEP Agreement is considered as the largest free trade deal in the world. The RCEP region makes up 29% (USD 25.8 trillion) of global GDP, 30% (2.3 billion) of the world’s population, and 25% (USD 12.7 trillion) of global trade in goods and services. 

According to Assistant Secretary (Asec.) Allan B. Gepty, the country’s RCEP Lead Negotiator, the Philippines will benefit from an economic policy that is open to trade and investment under a rules-based system. “The RCEP Agreement is a testament on the need to further open the markets for trade and investments, and improve rules and disciplines in addressing the evolving business environment such as e-commerce, intellectual property, and competition policies.,” he said.

The RCEP region is already the main GVC hubs of three emerging economies (i.e. Japan, South Korea, and China) and contributing 50% of the global manufacturing output.

“If you further strengthen the region with rules and discipline then you create an environment of trust, and this will encourage more investments and deeper economic integration. In addition, the creation of the RCEP free trade area strengthens economic integration in the region, and balances global power and influence especially with the growing trend in protectionism,” Asec. Gepty added.

The RCEP Agreement is comprised of the ten (10) ASEAN Member States, Australia, China, Japan, South Korea, and New Zealand. It is targeted to be implemented in January 2022.

Date of Release: 6 July 2021

For the original release, please click here.

The newly-established Cambodia Business Council (CBC) in Bangkok and Thai Subcontracting Promotion Association (Thai Subcon) will join forces to enhance trade and investment between the two ASEAN neighbours, and build momentum for the implementation of Cambodia’s 2021-2023 Economic-Diplomacy Strategy.

A memorandum of understanding (MoU) was signed in this regard by CBC president Sambath Sothea and his Thai Subcon counterpart Kiattisak Jirakajonvong on July 13 via video link, in a ceremony presided over by Cambodian ambassador to Thailand Ouk Sorphorn and witnessed by commercial attache Heng Sovannarith.

The deal will provide support for marketing channels and activities to promote business and investment opportunities, cultural exchanges and social connectivity.

According to the Thai Ministry of Commerce, trade between Cambodia and Thailand reached $7.236 billion last year, tumbling 23.17 per cent from 2019, primarily due to the economic disruption of the Covid-19 pandemic. 

Author: May Kunmakara

Source: The PhnomPenh Post

For full article, please read here.

Original published date: 14 July 2021

The Council of the Ministers approved the new investment law draft last week in order to attract increased investment flow to the country and enhance the nation’s economic diversification and competitiveness.

The new draft consists of 12 chapters and 42 articles.  It was approved by the Council of the Ministers at a meeting chaired by Prime Minister Hun Sen on Friday July 9.

The draft law sets the strengthening procedures on monitoring and checking from relevant ministries and institutions through joint one-time inspection as well as sets incentives to qualified investment projects, both tax and non-tax preference, to attract flow-in investment to sectors that Cambodia needs specifically in the context of economic diversification and increasing competitiveness.

It also includes international obligations undertaken by Cambodia to show investors the commitment of the government to protecting investment and providing assurances in accordance with international law. Additionally, it shortens the period of certificate issuing from 31 to 20 working days for business registrations made via the single portal, Single Window Service.

In the first six months of 2021, the Council for the Development of Cambodia approved 87 investment projects worth $3 billion, up 10 percent from the first half of 2020.

Author: Chea Vanyuth

Source: The PhnomPenh Post

For full Article, please read here. 

Original published date: 12 July 2021

As COVID-19 continues to impact most parts of Asia Pacific, digitising the food system has never been more important. Food safety, hygiene and storage management had already been fundamental to the success of food supply chain systems prior to the pandemic. Consumers have become even more concerned with the source, quality, and safety of their food, leading to an increased need for food safety and accountability.

Consumers across the region have been rethinking their eating habits after the pandemic and shifting away from an ‘on-the-go lifestyle’ to more of a ‘safe in-home consumption’ trend. As a result, food manufacturers are confronted with the issues of food supply chain transparency. At the same time, they need to meet food safety standards, avoid recalls, maintain compliance, and earn customer trust and loyalty.

Food supply chains will need to bear increased pressure to deliver quality and safe food from the farm, to the factory and finally to the consumer’s table. Due to continually increasing consumer demands, food safety will need to be taken more seriously, with increased collaboration between the food industry, regulators, and tech companies to create a safer, more traceable food system. Many of these changes will be led by technology-enabled solutions that can garner additional trust and ease business operations by tracing each food item throughout the supply chain.

Ultimately, this increased traceability will reduce recalls and food waste, protect consumers by preventing lapses in food safety, and speed up crackdowns on contaminated food.

Prioritising consumer care and trust

Tracking and traceability also protect brands from damage to their reputations following a food safety incident. Industry decision-makers can look to technology solutions to ease the strain of curb side and e-commerce deliveries, and at every touchpoint, by improving traceability, safeguarding food items, and mitigating food supply disruptions.

Enhancing traceability in the supply chain

Areas that could benefit from devices and technologies include: compliance with food safety and quality guidelines; ensuring proper food handling, transportation and storage; tracking product perishability; intake of raw materials and ingredients; and faster and more efficient lot recall. Technologies such as RFID tags, rugged handheld mobile computers with scanners, and thermal printers, can track items quickly throughout the supply chain and help increase food product traceability.

The implementation of these solutions is projected to rise and it is apparent that companies are recognising the benefits of including these technologies in their operations. Also, Predictive analytics powered by the visibility provided by these technologies will allow decision-makers to improve their strategies, optimise transportation efficiency, and tighten loopholes in tracking and traceability.

Future-proof the supply chain with robust digital solutions

Improving food safety is now more challenging more than ever due to the increasing demand and rise of consumers’ expectations. Globalisation also brings new challenges to food supply chain optimisation

As international trade grows, particularly in a post-pandemic world, so does the necessity for consistent data, reporting and transparency throughout the supply chain. With traceability and transparency, the future of food safety and food supply seems bright.

Companies in Southeast Asia that can demonstrate robust and effective traceability and transparency capabilities will increase business efficiency, protect their consumers and businesses, and ultimately improve customer confidence and loyalty, giving them an edge over their competitors in this rapidly evolving market.

Source: e27

Read the full article here

The Ministry of Economy and Finance is set to deploy Phase II of its Businesses Registration Platform, also known as the “Single Portal”, next month, following more than a year of smashing success since its debut.

Plans for the upcoming launch were presented at a virtual inter-ministerial meeting on July 12, led by ministry secretary of state Phan Phalla.

Industry ministry director-general for Small and Medium Enterprises and Handicraft Chhea Layhy told The Post on July 13 that his ministry was ready to integrate into the Single Portal, a process he said was 90-95 per cent complete.

Layhy said the second phase of the portal was a strategic government plan to further streamline procedures for businesses in Cambodia, especially small- and medium-sized enterprises (SME).

“I urge all those in the SME sector to understand the advantages of priority registration, in order to receive benefits from the government that’ll make it easier to do business,” he said.

The electronic platform requires companies to complete just a one-time business registration form, cutting fees by up to 40 per cent and taking a maximum of eight days. 

Author: Thou Vireak

Photo credit: Hean Rangsey

Source: The PhnomPenh Post

For full article, please read here.

Original published date: 13 July 2021

The Singapore Coffee Association (SCA) will team up with the Asean Coffee Federation (ACF) to open an Asean Coffee Institute in Singapore by the end of this year.

The institute will train and certify baristas and offer certified coffee grader programmes, the SCA said. It will also introduce an Asean Coffee Excellence Programme, which aims to set an Asean standard for grading speciality coffee.

The institute will be a hub for countries in the region to upskill and expand the scope of jobs in the coffee industry.

This is part of the SCA's efforts to turn Singapore into a key regional trading hub for speciality coffee.

It aims to potentially double Singapore's coffee industry in coming years, which is currently worth more than $270 million.

SCA president Victor Mah, who is also president of the ACF, outlined the plans in his speech yesterday at the Singapore Speciality Coffee (Micro-Lot) Auction 2021 at Marina Bay Sands.

The auction offered speciality coffee from 15 countries that was selected by Asean coffee graders.

The guest of honour, Minister for Manpower and Second Minister for Trade and Industry Tan See Leng, said: "Singapore is well positioned to be a global trading hub for speciality coffee in the region.

"We are fortunate to be situated between fast-growing consumer markets in the Asia-Pacific and some of the world's major coffee producing nations such as Vietnam and Indonesia.

"This makes Singapore a convenient location for agri-commodities companies which wish to participate in the global value chain through activities such as roasting, packaging, grading and certification."

Also present at the event were 21 ambassadors and high commissioners from countries including Indonesia, Brunei, Japan, Rwanda and Ukraine.

The global coffee market was valued at US$102 billion (S$138 billion) last year, with the speciality coffee sector making up almost a third of the market.

Speciality coffee is set to more than double its value to over US$80 billion by 2025.

Source: The Straits Times

Author: Syarafana Shafeeq

Original published date: 14 July, 2021

Read full article here https://www.straitstimes.com/singapore/making-spore-a-key-trading-hub-for-speciality-coffee

Video link https://www.channelnewsasia.com/news/singapore/singapore-aims-to-become-key-regional-specialty-coffee-trading-15213264

By Heidi Ng

The Definition of SMEs in Cambodia

Small and Medium-sized Enterprise (SME) development is crucial for the sustained and equitable development of the Cambodian economy. Evidence from more economically developed Asian nations demonstrates that SMEs have considerable potential for driving economic growth.

The Royal Cambodia government started to classifies the SME divided into three categorial; Agriculture, Industry, and Services and Trading. Each sector complies with staff requirements, and size of annual products denote as small or medium.

From 5 to 49 staff consider as small, and from 50 to 199 as a medium enterprise. While annual products, each sector has a different classification. From 62250$ to 250000$ considered as small-sized for the agriculture sector, and 250001$ to 1000000$ as medium-sized.

Industry sector, from 62500$ to 400000$ considered as small, while medium-sized from 400001$ to 2000000. For Service and Trading, small-sized started from 62500$ to 250000$, while medium-sized from 250001$ to 1500000$.

Following the law, the relevant ministry is responsible for permit registration licenses and examining. The Ministry of Industry Science Technology and Innovation (MISTI) engaging with relevant ministries to ensure all process of SME effectively.

Source: Definition of SMEs in Cambodia

Photo courtesy: KhmerSME

Indonesia is set to build its first electric vehicle (EV) battery plant and aims to begin production by 2023.

The project is being initiated by Indonesia Battery Corp (IBC) — a holding company consisting of four state-owned enterprises, namely MIND ID, PT Pertamina, PT Perusahaan Listrik Negara, and PT Aneka Tambang Tbk — and a consortium led by South Korea’s LG Group in what will be an initial investment worth US$1.2 billion.

However, the total investment for the IBC-LG project is estimated to reach US$9.8 billion and employ 1,000 workers.

The Kota Deltamas industrial area in Bekasi, West Java province, has been chosen as the facility site, being only two hours from Jakarta by road, and will span some 33 hectares. The facility is expected to have a capacity of 10 Gigawatt hours (GWh) (one gigawatt equals 1 billion watts of electric power), with the batteries manufactured there slated to be used in Hyundai electric vehicles.

Furthermore, a Chinese consortium, which includes China’s Contemporary Amperex Technology (CATL), will invest US$5 billion in a lithium battery plant in Indonesia, with production starting in 2024; both CATL and LG supply the batteries for Tesla’s made-in-China models.

Indonesia wants to increase production to reach a battery capacity of 140 GWh by 2030 from which 50 GWh will be allocated for export. The remainder will be used for Indonesia’s domestic electric vehicle industry — mainly for motorbikes rather than cars.

With Indonesia looking to boost investment in its EV battery sector to US$33 billion by 2033, the country presents ample opportunities for foreign EV manufacturers.

Source: ASEAN Briefing

Author: Ayman Falak Medina

Original published date: 8 July, 2021

Read full article here https://www.aseanbriefing.com/news/indonesia-to-build-electric-vehicle-battery-plant-production-starting-in-2023/

The Indonesian government is targeting to integrate nearly 30 million small and medium-scale enterprises (MSMEs) into the digital ecosystem by 2024, Cooperative, Small and Medium-scale Enterprises Minister Teten Masduki said.

At a webinar here on Tuesday, Masduki said the number of MSMEs in the digital ecosystem is pegged at 13.5 million at present.

"As of 2024, some 30 million MSMEs will transform into digital ecosystem. Currently, 13.5 million SMEs are onboard the digital world," he informed.

The government, he continued, is currently focusing on supporting the transformation of SMEs in the agriculture sector.

Later, it would shift its focus to traditional markets and traders across Indonesia.

"We have more than 14 thousand traditional markets and some 12.6 million traders. We will prepare them to enter the digital ecosystem," Masduki said.

The ministry will also encourage the digital transformation of small kiosks and street vendors, he added.

"The number of traditional kiosks and street vendors has reached 26.7 million,” he noted.

According to Masduki, digitalization would help SMEs to expand their market and ease the transaction process.

MSMEs should also use social media as a process toward a large e-commerce platform, while improving their product quality to compete in the domestic as well as the international market, Masduki said.

Source: Antara News

Reporter: Chairul Rohman, Sri Haryati

Editor: Rahmad Nasution

Original published date: 22 June, 2021

Read full article here https://en.antaranews.com/news/177214/indonesia-to-bring-30-mln-msmes-into-digital-ecosystem-by-2024

Indonesia aims to sell only electric cars and motorcycles by 2050 to replace vehicles powered by combustion engines, the country's energy minister said on Monday, as the Southeast Asian country seeks to reduce its carbon emissions.

All motorcycles sold from 2040 will be electric-powered, while all new cars sold from 2050 will be electric vehicles (EVs), Arifin Tasrif said.

A move towards EVs also supports Indonesia's ambitious plans of becoming a global hub for production, as the country ramps up processing of its rich supplies of nickel laterite ore used in lithium batteries.

Indonesia's homegrown ride-hailing giant, Gojek, in April said that the company would make every car and motorcycle on its platform an EV by 2030.

Jakarta also announced a target this year to make the country carbon-neutral, including a plan to retire all coal powered plants by 2056.

Source: Reuters

Reporting by Bernadette Christina Munthe; Writing by Fathin Ungku, Fransiska Nangoy; Editing by Ed Davies

Original published date: 14 June, 2021

Read full article here https://www.reuters.com/business/sustainable-business/indonesia-aims-sell-only-electric-powered-cars-motorbikes-by-2050-2021-06-14/

Indonesia and China are closer to reducing their reliance on the US dollar as they plan to start using their own currencies for bilateral trade and investment within weeks.

The switch to local currency settlement (LCS) is expected to take place in the third quarter of this year.

Bank Indonesia (BI) financial market development head Donny Hutabarat said the move was part of Indonesia’s effort to diversify currencies used in trade and investment with bilateral partners. So far, Indonesia has agreed on LCS with Malaysia, Thailand and Japan.

China is Indonesia’s biggest trade partner. According to Statistics Indonesia, China accounts for more than 32 percent of Indonesia’s imports and over 22 percent of exports. The US dollar has been used as the main medium for international trade ever since the establishment of the Bretton Woods system in 1944, which aimed to provide stability and efficiency in foreign trade and prevent competitive currency devaluation. However, in recent years, more countries have begun to use their own currencies instead of the US dollar for cross-border trade and investment in a trend that has become known as dedollarisation.

China, Russia and the EU have been prime movers in the effort to steer away from the US dollar. By doing so, countries are gradually chipping away at the US currency’s global supremacy. Indonesia has already moved to LCS for bilateral trade with other countries of the region, including Malaysia, Thailand and the Philippines.

Source: the Phnom Penh Post

https://www.phnompenhpost.com/business/indonesia-china-reduce-usd-bilateral-trade