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PH creative economy grows 12.1%

THE country's creative economy ballooned to P1.60 trillion last year and contributed around 7.3 percent to gross domestic product, the Philippine Statistics Authority (PSA) reported on Thursday.

Year on year, the sector grew by 12.1 percent from P1.43 trillion in 2021.

The creative economy includes audio and audiovisual media; digital interactive goods and services; advertising, research and development, and other artistic services; symbols and images, and other related activities; media publishing and printing; music, arts and entertainment; visual arts; traditional cultural expression; and art galleries, museums, ballrooms, conventions and trade shows, and related activities.

Symbols and images, and other related activities accounted for the biggest share of the creative economy at 32.9 percent or P528.35 billion. This was 10 percent higher than the P480.41 seen a year earlier.

Advertising, research and development, and other artistic services contributed followed with a 20.8-percent share or P333.9 million, while digital interactive goods and services comprised 20.3 percent or P325.4 million

A total of 6.98 million Filipinos worked in creative industries last year, 10.5 percent higher than the 6.32 million recorded in 2021.

Employment in traditional cultural expression activities had the highest share of 42.5 percent, followed by symbols and images, and other related activities (24.8 percent) and advertising, research and development, and other artistic service activities (18.0 percent).

The economy grew by 7.6 percent in 2022, slightly surpassing the government's 6.5- to 7.5-percent target. A slowdown to 6.0-7.0 percent is expected this year given risks from stubborn inflation and global headwinds.

Data regarding the creative economy came from a pilot study and thus remains preliminary, the PSA said. Methodologies are still being refined but plans are being made to institutionalize regular data releases, it added.

Source: ManilaTimes

Finance Minister Projects 3.8% Growth This Year

Finance Minister Arkhom Termpittayapaisith has projected that Thailand’s economy will grow by 3.8% in 2023, with the rebound of the vital tourism sector contributing to the growth.

Speaking on a Radio Thailand program, Minister Arkhom said the increase in domestic spending and an acceleration in investment in large projects would further boost growth.

According to the finance minister, tourism in particular is expected to play a crucial role in the country’s economic recovery. The country is now projected to receive 27.5 million foreign visitors this year, following the arrival of 11.15 million visitors last year. This figure, while promising, is still below the nearly 40 million foreign visitors the country had in 2019 before the pandemic.

The minister earlier said the nation’s economic growth could exceed the current forecast with the expected return of Chinese tourists. However, he cautioned against aggressive interest rate hikes, which could lead to increased business costs and household debt.

The country’s headline inflation is further expected to fall within the central bank’s target range of 1% to 3% this year, owing to government measures and lower food prices. He noted, however, that despite the fall in export volumes, an exchange rate of 34 to 35 Thai baht per US dollar, as recorded last week, would be beneficial for export prices.

 

Source : NATIONAL NEWS BUREAU OF THAILAND

Thailand Endorses IPEF to Promote BCG Economy

The government has approved the Indo-Pacific Economic Framework (IPEF) to serve as a foundation for the Bio-Circular-Green (BCG) economic model by promoting balanced and sustainable economic growth.

Government Spokesperson Anucha Burapachaisri disclosed that the Cabinet recently approved a draft of the negotiation framework for the IPEF as a guideline for determining Thailand’s stance and cooperation under the framework. This included ratification of four IPEF Ministerial Statements dated September 8-9, 2022. It also includes the formation of a committee to push the implementation of the IPEF framework by the Ministry of Foreign Affairs and related agencies tasked with following up on relevant measures under the framework.

A draft of the negotiation framework for IPEF consists of four cooperation pillars comprising Trade, Supply Chain, Green Economy and Fair Economy. The goal is to reap the greatest benefits and foster cooperation among nations in order to achieve their goals in various fields.

The government spokesperson noted that IPEF negotiations are Indo-Pacific economic cooperation negotiations, which are different from free trade agreements and do not involve market access issues. The negotiations will instead focus on strengthening and connecting supply chains between Thailand and partner countries in the region, clean and environmentally friendly economic development, and cooperation on anti-corruption and transparent tax management.

In addition, cooperation under the IPEF is in line with Thailand’s economic development guidelines. Furthermore, the IPEF will enhance the implementation of international obligations in multilateral frameworks, address new challenges, and prepare Thailand to negotiate high-standard trade agreements in the future.

The IPEF is a framework for economic cooperation proposed by the United States that currently involves 14 regional participants, including Thailand.

 

Source : NATIONAL NEWS BUREAU OF THAILAND

Thailand To Host World Chinese Entrepreneurs Convention in June

The World Chinese Entrepreneurs Convention will be taking place in Thailand this year. Related private firms and Thai authorities expect this meeting to yield no less than 10 billion baht worth of additional investments in Thailand.

Thailand will be hosting the 16th World Chinese Entrepreneurs Convention (WCEC) on 24-26 June at Queen Sirikit National Convention Center in Bangkok. The organizers are the Thai-Chinese Chamber of Commerce and related agencies.

The upcoming convention will be the first-ever WCEC held in 4 years, following the outbreak of the coronavirus.

 

10 billion baht worth of additional investments

Minister of Commerce Jurin Laksanawisit said this convention will help improve the cooperation on trade and investment, with deals resulting in a total of at least 10 billion baht worth of additional investments expected from this convention.

The Thai-Chinese Chamber of Commerce has already invited major trade organizations around the world, major Chinese businesses, and Thai firms to participate in this convention.

 

4000 attendees expected to arrive in Thailand

Around 4,000 people are expected to arrive in Thailand for this convention, resulting in an event-related cash flow of no less than 500 million baht.

China is Thailand’s number one trade partner, with the trade value between both countries in 2022 recorded at 2.69 trillion baht, a 1.53% year-on-year growth. This trade value amounts to 17.9% of all trade between Thailand and other countries.

 

Source : Thailand Business News

ASEAN needs to be more assertive – Pascual

Trade Secretary Alfredo Pascual has called on Association of the Southeast Asian Nations (Asean) member states to leverage the region's growing influence and assert a more active role.

"Asean needs to be more assertive not only in driving economic activities in the region but also in shaping rules and disciplines on emerging areas of trade and investments toward a more inclusive market and freer flow of goods, services and investments," Pascual said during a retreat in Magelang, Indonesia that had the theme of "Asean Matters: Epicentrum of Growth."

He also emphasized the need to remain united, and must serve as a good example on how the region can engineer a functional regional economic integration despite differences in further harnessing Asean's sectors such as manufacturing, creative industry, digital economy, among others.

"Through the timely completion of the preparations to develop an Asean Digital Economy Framework Agreement," Pascual said as he highlighted the potential benefits of a digital economy.

"It is important that we maintain this momentum of accelerated growth, and ensure that the digital economy remains to be at the forefront of Asean's priorities," he added.

The Trade secretary also expressed his full support toward Indonesia's key strategic areas such as recovery and rebuilding, digital economy and sustainability, which "fully embody and encapsulate a comprehensive strategy to transform the region into a forward-looking, connected, inclusive and sustainable Asean."

Meanwhile, the Asean Economic Ministers also welcomed the Philippine Senate's concurrence with the ratification of the Regional Comprehensive Economic Partnership Agreement and emphasized the importance of ensuring the full implementation of the said agreement.

Source: Manila Times

Indonesia govt dishes out incentives to make headway on new capital

The Indonesian government has announced a package of incentives aimed at attracting businesses to invest in the new capital city of Indonesia, which is currently being built in East Kalimantan. The incentives include tax breaks, accelerated permit processes, and land acquisition support. The government hopes that these incentives will help attract foreign and domestic investors and speed up the construction process of the new capital. The new city is seen as a way to address the overpopulation and infrastructure problems in Jakarta and create a more sustainable urban center for the country.
 

New THAI CEO confident of early takeoff from rehabilitation plan

Chai Eamsiri, chief executive officer of Thai Airways International PLC (THAI), said he was confident that the recovery in the travel and tourism sectors would help the national flag carrier complete its rehabilitation conditions and exit the plan earlier than late 2024.

He said that an early exit would allow THAI shares to resume trading on the Stock Exchange of Thailand in 2025.

“The crisis is now over for Thai Airways. We are now in the phase of making money continuously for sustainable development of the organisation,” said Chai, who took charge only on February 1.

THAI has resumed flights on 65% of its pre-Covid routes and its cabin factor was a healthy 85% last year, the CEO said, adding that the airline has made profits since May last year, with a “very good” cash flow of 30 billion baht at present.

The airline earned about 90 billion baht in revenue last year and the figure was estimated to rise by 40% this year, according to the CEO.

He said Thai Airways’ earnings would grow strongly for another year, thanks to the return of Chinese tourists and increased demand for air travel.

According to the CEO, THAI has met most conditions in the business rehabilitation plan quicker than expected.

The airline also has begun its long-term growth programme that includes procurement of new planes and fleet modernisation. With 49 planes at present, THAI aims to expand its fleet to meet rising demand for air transport, taking delivery of six rented Airbus A350 jets in April and planning to lease three more wide-body planes within this year or early next year, according to the CEO.

In September 2020, the Central Bankruptcy Court approved THAI’s recovery plan after the Covid-19 pandemic paralysed global air travel. The airline’s debts stood at 338.9 billion baht against total assets of 298.9 billion baht as of September 30 that year.

 

source THE NATION THAILAND

Economist sees PH needing more FDIs

THE Philippine economy is among the fastest growing in the Indo-Pacific Region but needs foreign direct investments (FDIs) to sustain that growth, economist Dr. Bernardo Villegas said.

"Our GDP (gross domestic product) right now is really growing on the basis of consumption — revenge spending, revenge traveling, revenge tourism — and all of us are jumping in joy," Villegas said during the Economic Briefing 2023 last February 23.

However, he stressed the need to bring in more foreign direct investments into the country.

"That is one side of the picture. The other side of the picture is we are not investing. That will jeopardize our future," Villegas added.

Nonetheless, he commended the administration of President Ferdinand Marcos Jr. because he takes action to bring FDIs into the country.

Moreover, one important step to attracting foreign direct investment is the creation of the Maharlika Investment Fund (MIF) "to be the partner of the foreigners," Villegas added.

"Local companies like San Miguel, Ayala, and so on and so forth, but these local companies are running out of local capital because we don't have domestic savings, and they cannot borrow forever. We have reached our borrowing limit because our debt is very high — 60 percent to be exact — so all the other avenues of long-term funding are temporarily banned," the economist explained, referring to the country's debt-to-GDP ratio of 60.9 percent logged last December.

"The MIF can be a very effective tool to attract foreign direct investment," Villegas said.

Source: Manila Times

Maneuvering toward sustainable energy transition in Indonesia

A memorandum of understanding has been signed between Indonesia and 14 international institutions to accelerate the energy transition. Indonesia is now the world's leading country in preparing affordable clean energy. Indonesia is also discussing opportunities for the Just Energy Transition Partnership (JETP) with ten developed countries that are members of the International Partner Group (IPG). In the energy transition sector, the Presidential Regulation No. 112/2022 encourages global collaboration with Indonesia and investment.

The Potential is There for BIMP-EAGA’s Maritime Logistics

BIMP-EAGA which stands for Brunei Darussalam-Indonesia-Malaysia-Phillipines East ASEAN Growth is a sub-regional initiative focuses on driving growth in the resource-rich yet less developed areas within the four ASEAN member states. The area is strategically located between major shipping lanes and is also a large market of over 70 million people. 

With the said potential, Transport Minister of Ministry of Transportation of Republic of Indonesia is optimistic in teaming up the four ASEAN countries to improve their ports into a single force to become a global logistic power. 

Indonesia also already takes an action by working on the Makassar New Port in South Sulawesi to improve BIMP-EAGA connectivity which is scheduled to be inaugurated in this July.

Source: Full article can be read here.

ASEAN Seeks Single Window Expansion with Japan for Greater Trade

ASEAN-Japan trade relation has been going strong over the past years, as Japan is ASEAN's third-largest trading partner, and the fourth-largest source of foreign direct investment among the bloc's dialogue partner countries. 

Previously, ASEAN is already banking on the Regional Comprehensive Economic Partnership (RCEP), a free trade between fifteen countries including Japan. 

The relation between the two still has a lot potential to be expanded including through the initiative of Japan's participation as  a part of the ASEAN Single Window (ASW).

The regional initiative enables electronic exchange of trade-related documents between its member states, creating an ease in faster customs clearance and less paperwork.

Source: Jakarta Globe here

ASEAN sees rise in international arrivals

Based on preliminary figures of 2022, ASEAN saw about 1,700 per cent year-on-year increase in tourism receipts. ASEAN also recorded almost 1,300 per cent year-on-year increase in international arrivals with the relaxation of ASEAN member states’ travel restrictions. Hotel rate occupancy also increased by 16 per cent compared to that in 2021.

The massive growth in the ASEAN’s tourism industry was highlighted during the 26th Meeting of ASEAN Tourism Ministers (26th M-ATM) and the related meetings with Plus Three (22nd M-ATM Plus Three), India (10th Meeting of ASEAN-India) and Russia (2nd Meeting of ASEAN-Russia Tourism Ministers) in conjunction with the ASEAN Tourism Forum 2023 (ATF 2023) held on February 4 in Yogyakarta, Indonesia.

The meeting acknowledged the need to embrace and utilise new technologies to overcome challenges and build a more resilient society. In this regard, the meeting encouraged both sides to strengthen collaboration through exchanging expertise and best practices in utilising digital technology, reducing the digital divide by facilitating access to information and communication technologies, as well as developing skills to thrive in the digital economy within ASEAN and Russia.
To read more of the article, visit here

Source: Borneo Bulletin


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