EUROPEAN firms' sentiments about prospects in Asean have rebounded to pre-Covid levels, after having weakened somewhat last year, said the latest business sentiment survey by the EU-Asean Business Council (EU-ABC) has found.

For instance, 82 per cent of respondents expect to expand their levels of trade and investment in the region in the next five years, up from 73 per cent in 2020. The latest figure is close to the 2019 figure of 84 per cent.

The survey was conducted between April and July among 389 respondents across the 10 Asean member states, with the respondents coming from various services or manufacturing industries.

The share of respondents who see Asean as the world region offering the best economic opportunity rebounded to 63 per cent, up from 53 per cent in 2020 and comparable to 2019's figure.

Profit expectations have improved following 2020's low base: 63 per cent of respondents expect their Asean profits to grow year on year, up from 39 per cent in 2020, and 60 per cent in 2019.

However, two-thirds of respondents said they believed that Asean economic integration was progressing too slowly; only 2 per cent thought that the progress was fast enough.

A greater share of respondents also felt that non-tariff barriers to trade in Asean were increasing: 38 per cent, up from 27 per cent in 2020.

Over four-fifths of respondents said there are too many barriers to "the efficient use of supply chains" in the region, up from around three-fifths in 2020.

EU-ABC chairman Donald Kanak said: "This year's survey shows that European business confidence in Asean trade and investment opportunities has rebounded to 2019 levels, but it also highlights a strong perception that the region is falling short in reducing barriers to trade."

He noted that nearly nine in 10 respondents said they would increase their use of regional supply chains if trade was made easier. Nearly half the respondents said that they either had moved or were considering moving their Asean-based supply chains.

EU-ABC executive director Chris Humphrey said: "The fact that our respondents would use regional supply chains more if barriers to trade were reduced is a huge incentive for Asean to take faster and more concrete action on the elimination of non-tariff barriers. Unfortunately, our survey shows that European businesses do not perceive this happening."

On free-trade agreements (FTAs), nearly all respondents continued to wish that the EU would accelerate FTA negotiations with Asean and its members.

However, desire for immediately pursuing a region-to-region FTA has cooled. Just under half of respondents said the EU should pursue this now, down from 71 per cent in 2020.

There is somewhat more support for the idea of a region-to-region investment protection agreement, with 60 per cent of respondents believing that the EU should pursue this.

Source: The Business Times (Singapore)
Date: 1 September 2021

Reference: https://www.businesstimes.com.sg/asean-business/business-sentiment-among-european-firms-in-asean-rebounds-to-pre-covid-levels-survey

BANDAR SERI BEGAWAN – Brunei has made “substantial progress” in diversifying its oil-driven economy in recent years, and should continue harnessing its strengths in energy to build an internationally competitive industrial sector, said the Center for Strategic and Policy Studies (CSPS).

Reviewing Brunei’s diversification efforts in its latest economic report, the think tank said Brunei’s fundamental economic structure has largely remained unchanged for decades as it is still reliant on hydrocarbons.

“There was some indicative diversification success during the 1990s, but similar to the trend of other oil exporters, concentration increased during the 2000s boom,” it added.

However, the start of Hengyi Industries’ oil refinery and petrochemical operations in 2019 has seen decreasing economic dependence on the upstream oil and gas sector.

Oil and gas accounted for 57 percent of nominal gross domestic product (GDP), 91 percent of merchandise exports and 85 percent of government revenue, according to 2018 data.

By 2020, the hydrocarbon sector’s share in nominal GDP, merchandise exports and government earnings declined to 47 percent, 82 percent and 60 percent, respectively.

In contrast, downstream activities have been the largest driver of economic growth last year with a nine percent rise.

CSPS said the volatility in global oil prices also translates to uncertainty in the Brunei economy.

Revenue from the petroleum industry had plunged 69.9 percent in the 2020/21 fiscal year, following a major oil price collapse triggered by the COVID-19 pandemic.

“Diversification helps to lower volatility by stabilising export revenues and hence provide a more stable path for growth and development.

“Besides buffering against commodity price shocks, economic diversification also matters because it is generally accompanied by industrial upgrading through technology diffusion and a shift toward higher productivity sectors and high-paying jobs,” CSPS added.

The think tank further said there is a need to prepare for future resource depletion, and avoid adverse effects arising from a resource windfall.

Image credits: © Getty Images via Canva.com

Date of Release: 4 August 2021

Read the full article here.

September 4, 2021

The Royal Government of Cambodia (RGC) on September 1 deployed Phase II of its online business registration platform, known as the “Single Portal”.

Four new agencies have joined the Single Portal in Phase II, adding more classes of business licences and permits available for application on the platform, with an emphasis on priority sectors, in a bid to support national economic growth during the Covid-19 crisis.

These agencies are the Non-Bank Financial Services Authority’s Real Estate Business and Pawnshop Regulator (REBPB), and the industry, tourism and telecoms ministries, Minister of Economy and Finance Aun Pornmoniroth noted during the launch ceremony for Single Portal Phase II.

He said the updated Single Portal system aims to improve the business and investment environment in order to enhance Cambodia’s competitiveness, and is tailored to economic sustainability amid Covid-19, as part of a wider push to digitalise public services.

“The launch Single Portal Phase II clearly epitomises the Royal Government’s reforms to improve the business and investment environment in Cambodia, which have achieved the planned results,” he said.

The addition of the industry ministry would boost registrations of small- and medium-sized enterprises, and the incorporation of the REBPR would raise the number of real estate and pawnshop businesses, he said.

“As in Phase I, application for a licence or permit in Phase II can be made entirely online at www.registrationsevices.gov.kh,” he added.

As of August 24, the number of companies registered through Single Portal was 7,715, with a total capital of nearly $3 billion, he said.

Author: Thou Vireak

Source: The Phnom Penh Post

For full article, please read here

Original publication date: 01 September 2021

Cambodian businessmen, producers and other players in the food and beverage industry may soon have the opportunity to find potential business partners and discover new regional brands at the upcoming ASEAN Trade Fair 2021 in Seoul, South Korea.

The Ministry of Commerce, an event facilitator, issued a broad invitation to the four-day trade fair, from November 10-13, organised by the ASEAN-Korea Centre (AKC) in collaboration with the embassies of the bloc’s member states based in Seoul.

It noted that the AKC was looking for six Cambodian businesses in the industry to exhibit their products at the trade fair, listing coffee, tea and desserts as examples.

The ministry invited interested parties to register with the Department of Exhibition Affairs under its General Directorate of Trade Promotion, free-of-charge, no later than September 3.

Bilateral trade between Cambodia and South Korea has been more resilient that anticipated in light of the Covid-19 pandemic, valued at $451.98 million in the first half of this year, surging by 6.7 per cent year-on-year from $423.51 million, as shown by data from the Korea International Trade Association (Kita).

In the January-June period, the Kingdom exported $159.40 million, down by 1.6 per cent year-on-year from $162.06 million, and imported $292.59 million, up by 11.9 per cent from $261.45 million a year earlier, according to Kita. This means that the trade deficit widened by 34.0 per cent from $99.4 million to $133.2 million.

Cambodia mainly exported footwear and other apparel, travel products, beverages, electrical and electronic components, rubber, pharmaceuticals and agricultural products to South Korea, and imported vehicles, electronics, kitchen appliances, beverages, pharmaceuticals and finished plastics and products, Kita reported.

Author: May Kunmakara

Source: The Phnom Penh Post

For full article, please read here

Original publication date: 30 August 2021

Local and foreign investors invited to invest in fishery upgrade projects including canning and food processing plants in Mon State.

According to the Mon State Fishermen's Association, local and foreign investors are being invited to upgrade fishery products in Mon State's fisheries sector.

Mon State produces between 100,000 and 200,000 tonnes of fishery products annually and is mainly exported to China.

According to the Mon State Fishermen's Association, Chairman U Myint Soe said that Investors are invited to invest in Fish canning factory, a food processing plant and a refrigeration plant and will be provided with the necessary raw materials.

He also said that although the invitation for investment has been invited for a long time, the government needs to cooperate.

Watch the full story on YOUTUBE TV:   https://www.youtube.com/watch?v=ycBO4aLoR58

Source: BETV Business News  

https://www.betvbusiness.com/en/node/1046

Reporter by Mi Su Su Mar

Original Published Date: August 31, 2021

Myanmar tamarind price rises again due to Bangladesh demand

Tamarind, grown in Myanmar, has been decreasing in price and has stopped trading since the end of April. It has seen a sharp rise in prices starting from the first week of August due to demand from Bangladesh, said the tamarind traders from the Mandalay market.

The price of seeded tamarinds has risen from K800 to K1,100 per viss (one viss equals 1.6 kg), while seedless tamarinds are priced at K2,300 per viss, up from K1,800 in the Mandala market. Tamarinds are selling well in the market. “This is a good year for tamarind price. At this moment, there is no buyer for plum. But, tamarinds prices have risen again due to the demand from Bangladesh. Now, the tamarind growers are happy as they are getting a good price this year. The tamarind is a marketable product in foreign countries.

Last year, tamarind was demanded from China and India. Myanmar people use tamarind in traditional cuisine besides making traditional medicines,” said U Soe Win Myint, owner of Soe Win Myint commodity depot.
Tamarind trees grow across the country. Especially, the trees are mostly found in the central regions of Myanmar. They can be harvested only once a year in the summer.

Tamarinds from Kyaukpadaung, Popa, Pakokku, Yamethin, Zeepingyi and Pinlaebu towns are sending to the market. All the tamarind producing areas across the country will supply abundant tamarinds to markets in the pre-Thingyan Festival period.

Reported by Min Htet Aung (Mandalay Sub-Printing House)/GNLM

Source: The Global New Light of Myanmar

Picture source: The Global New Light of Myanmar

Original Published Date:28 August, 2021

Taiwan-based manufacturing giant Hon Hai Precision Industry Co., which has moved aggressively into the electric vehicle market, is looking to take an EV joint venture with Thailand's state-owned oil supplier PTT Public Co. Ltd. public. At an online forum -- The Future Energy Asia -- held Friday, Hon Hai Chairman Liu Young-way (劉揚偉) said his ambition was for the EV joint venture to become a benchmark for EV development in Thailand and for it to launch an initial public offering in 2025. Liu said the partnership is expected to lead to a comprehensive EV ecosystem in Thailand.

At the end of May, Hon Hai, also known as Foxconn internationally, announced it had signed a memorandum of understanding with PTT to enter the EV market in Thailand by setting up an open platform for producing EVs and key components for the EV sector there. Under the MOU, the platform, featuring hardware and software services and to be built on Hon Hai's MIH Open Platform, will be available to all auto companies in Thailand looking to boost sales of EVs at home and in the ASEAN region, according to the two partners.

In Thailand, the government has a 30/30 EV plan in place that targets 30 percent of all production to be zero-emission vehicles by 2030, in a bid to produce 725,000 emission-free passenger cars by that year. At the forum, Liu said the partnership with PTT will use a Build Operate and Localize (BOL) business model as part of Hon Hai's goal to forge multinational cooperation in EV development.

Source: Focus Taiwan

Indonesia launched on Monday a website to process investment permits, which the government hailed as an important milestone in reforms aimed at making it easier and quicker to do business in Southeast Asia's largest economy.

President Joko Widodo has vowed to overcome lingering hurdles such as red tape, rigid labour laws and poor infrastructure in his second term to compete with neighbours such as Vietnam and Thailand to attract foreign investment.

The "Online Single Submission" oss.go.id website will process investment proposals based on the level of risk, with lower risk investments needing only to register and medium ones to meet national standards.

"We want our investment climate to become more conducive ... to increase investors' confidence, to create jobs and become a solution to the problem of rising unemployment because of the pandemic," Jokowi, as the president is popularly known, said during the website's launch.

The website is part of a controversial Job Creation law, which passed last year despite protests from unions, environmentalists and other critics who view it as too pro-business.

Jokowi has tried to digitalize investment applications before, but it could still take months if not years to process a proposal in certain sectors.

The website gives Jokowi's new investment ministry greater authority so that it can intervene when local authorities take too long to respond, officials say.

Indonesia pulled out of economic recession in the second quarter with 7.07% gross domestic product growth and investment up 7.54%, but analysts warn the recovery faces a setback due to a resurgence in COVID-19 cases. read more

The new website, which was set up by telecommunication firm Indosat (ISAT.JK), has eliminated application costs for enterprises of up to 5 billion rupiah ($347,705) in size, investment minister Bahlil Lahadalia said at the launch.

($1 = 14,380.0000 rupiah)

Source: Reuters

Reporter: Gayatri Suroyo

Editor: Ed Davies

Original published date: 09 August, 2021

The government has carried out a host of sweeping economic reforms amid Covid-19 to achieve sustainable and inclusive economic growth in the long run and remains fully determined to turn the crisis into a major catalyst for growth during and after the pandemic to build a stronger socio-economic system that is resilient to future crises.

Cambodian Ambassador to Thailand Ouk Sorphorn made the remark on August 24, the first day of the CLMVT Plus Forum 2021, to an audience of leaders and businessmen of the five inland ASEAN countries.

Sorphorn underscored that Cambodia has drawn up a series of focused reforms and measures, including the introduction of new investment law and government credit guarantee; adoption of the e-commerce law and associated strategies; drafting of a law on public-private partnerships; development of an integrated online business registration platform; and a number of initiatives concerning the digital economy.

These incorporate tactics designed to inspire a shift from traditional diplomacy to a newer and more resilient model that transforms challenges into opportunities for Cambodia and more effectively promotes international trade, foreign direct investment, tourism, cultural and sports exchanges.

Minister of Economy and Finance Aun Pornmoniroth last week noted that the Covid-19 crisis had ravaged economies around the world, Cambodia included, since its inception last year.

However, he said, Cambodia has been preparing the 2021-2023 recovery plan which pivots on three priority strategies to return the economy to a high growth path – “economic recovery”, “reforms” and “building resilience”.

Author: May Kunmakara

Source: The Phnom Penh Post

For full article, please read here

Original publication date: 25 August 2021

MANILA — Association of Southeast Asian Nations’ (ASEAN) Senior Economic Officials (SEOM) met with Deputy Assistant US Trade Representative (AUSTR) for Southeast Asia and the Pacific Marta Prado for the 34th SEOM-AUSTR Dialogue Partner Consultations on 14 August 2021 via videoconference. The Philippines was represented by Department of Trade and Industry (DTI) Assistant Secretary Allan B. Gepty.

At the SEOM-AUSTR consultations, officials finalized the 2021-2022 ASEAN-U.S. Trade and Investment Framework Arrangement (TIFA) and Expanded Economic Engagement (E3) Work Plan which will facilitate implementation of cooperation initiatives to support the region’s post-pandemic economic recovery efforts, including in the areas of digital economy, micro, small and medium enterprises (MSMEs), sustainable development, trade facilitation, labor and environment, among others.

 “The Philippines welcomes the continued engagement and developments of initiatives between ASEAN and US particularly in the areas of Digital Trade, Transparency and Good Regulatory Practices, MSME Development, Trade Facilitation, and the ASEAN Single Window. These are important areas of cooperation especially in the post pandemic period.” Gepty said.

During the SEOM-AUSTR consultations, Assistant Secretary Gepty also emphasized that with the current challenges and the evolving business environment, cooperation activities and trade rules must keep abreast with recent developments, and must remain relevant.

The ASEAN-US trade and economic relations is guided by the TIFA concluded in August 2006, which serves as a mechanism to strengthen ASEAN-US trade and economic ties. The finalized 2021-2022 Work Plan will be submitted to Economic Ministers at the ASEAN Economic Ministers-United States Trade Representative (AEM-USTR) Consultations in September 2021 for endorsement and subsequent implementation. ♦

Date of Release: 25 August 2021

Source: Click here

MAKATI CITY – The Department of Trade and Industry (DTI) and the Board of Investments (BOI), with the support of the Federation of Philippine Industries, will hold the Manufacturing Summit 2021 on 25 – 26 August 2021, from 1:30 to 5:00 PM, online via Zoom with the theme, “Securing the Recovery of Filipino Enterprises and the Resilience of Filipino Industries.”

As the pandemic continues to disrupt the global market and the economies of nations across the world, the Philippines has emerged from a recession by posting a positive gross domestic product (GDP) growth rate of 11.8% in the second quarter of 2021. The manufacturing industry is among the leading sectors behind this recovery, growing by 22.3% in the same period.

In this context and in line with the country’s Inclusive Innovation Industrial Strategy (i3S) and the National Employment Recovery Strategy (NERS), the Manufacturing Summit will discuss concrete measures towards securing the recovery of the country’s enterprises and ensuring the resilience of local industries. These would include policy reforms that the national government is putting in place and the various support programs being implemented to enable firms and businesses to regain and strengthen their capabilities for growth under a new normal market environment. In addition, the Summit would also cover the plans and means for stimulating the digital transformation of the country, which is essential for industrial competitiveness in the global economy. 

Department of Trade and Industry (DTI) Secretary Ramon M. Lopez will keynote the summit on 25 August and discuss the government’s support for the growth and resurgence of the country’s manufacturing industry. On 26 August, National Economic and Development Authority (NEDA) Secretary Karl Kendrick Chua will present an assessment of the economy’s recovery and the government’s plan towards national resilience.

Other speakers include Department of Finance (DOF) Assistant Secretary Juvy Danofrata, Board of Investments (BOI) Executive Director Corazon Halili-Dichosa, Department of Science and Technology (DOST) Undersecretary Rowena Guevara, Philippine Economic Zone Authority (PEZA) Director-General Charito Plaza, Federation of Philippine Industries (FPI) President Alberto Lina, and Philippine Chamber of Commerce, Inc. (PCCI) President Ambassador Benedicto Yujuico. They will be joined by private sector experts from the World Economic Forum (WEF), McKinsey Singapore, and D&L Industries.

This year’s summit will also feature the induction of the DTI as partner of the WEF’s Global Smart Industry Readiness Index (SIRI) initiative. Through the initiative, DTI aims to accelerate the deployment and adoption of SIRI as a recognized standard for Industry 4.0 benchmarking and transformation in the country.

The summit is expected to gather online participants coming from all over the country, including key officials from the national and local governments, representatives from industry associations and business chambers, and other stakeholders from the industry, micro, small and medium enterprises (MSMEs), academe, the research community, and civil society.

It will be livestreamed on the official Facebook page of DTI and DTI-CIG. Program details are available thru this link.♦

Date of Release: 24 August 2021

For the original release, please click here.