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Digital business confidence low amid economic woes

Business confidence among digital - related enterprises showed no marked improvement in the second quarter , based on a recent Digital Sentiment Index survey , as Thailand grapples with high inflation , international conflicts and uncertain state policies , says the Digital Economy Promotion Agency ( Depa ) . The index was at 46 in the second quarter , compared with 44.8 in the previous quarter. The survey looked at five digital - related industries -- hardware and smart devices , software , digital services , digital content , and telecommunications.

It showed that confidence rose in the areas of operating results , production volume and orders , but dropped in the fields of employment , investment , and costs.

The index is conducted quarterly through a sampling survey of around 500 digital industry enterprises that are registered with Depa . The survey is conducted in line with the Ministry of Digital Economy and Society's instructions , in a bid to accelerate the country's digital economy and society based on data and information . Depa president and chief executive Nuttapon Nimmanphatcharin said Thailand's reopening has reinvigorated the tourism sector , but unclear government policies have made it difficult for those in the digital industry to access state procurement . He said the country is also pressured by external factors , including slow global economic recovery and international conflicts , which have driven up inflation.

Tension between China and Taiwan , which are key production bases for chipsets and electronic parts , has caused supply shortages , affecting growth in every digital sector , " said Mr Nuttapon . All digital - related industries surveyed had an index of less than 50 -- software at 48.6 , digital services at 46.4 , digital content at 45.8 , hardware and smart devices at 44.5 , and telecommunications at 41.3 . Mr Nuttapon said such figures reflect the fact that digital business entrepreneurs still lack confidence and are spending cautiously . " Digital - related entrepreneurs expect the government to come up with measures that could level up consumption and create their investment confidence through financial policies and regulations , " he said . He added that entrepreneurs also need support for new innovation development to level up their competitiveness , and greater access to government procurements.

 

source : Bangkok Post

PEZA, BOC to enhance trade facilitation in ecozones

MANILA, Philippines — The Philippine Economic Zone Authority (PEZA) is looking to strengthen its ties with the Bureau of Customs (BOC) in a bid to enhance trade facilitation and logistics efficiency in the economic zones.

“PEZA is one with the BOC and other participants in the local supply and global value chains in enhancing the ecozone business ecosystem and our overall competitiveness to make the Philippines a viable investment destination in the region,” PEZA OIC and deputy director general for policy and planning Tereso Panga said in a statement yesterday.

In line with this, Panga, along with other PEZA officials, recently met with acting Customs Commissioner Yogi Ruiz, and Customs collectors assigned in the PEZA zones namely collector Alex Go for Cavite and NCR, and collector Marife Recinto for Laguna.

The agencies plan to build on their partnership in terms of increasing logistics efficiency and supply chain management, and other measures for continual improvement.

Panga shared that PEZA and the BOC had discussed various pressing concerns among registered enterprises such as use of single General Transport Surety Bonds (GTSB) for ecozone importations and interzone transfer of goods between PEZA-registered enterprises.

He said  the adoption of selective and risk-based approach for shipments to be covered by electronic tracking using e-seal under the Electronic Tracking of Containerized Cargo (e-TRACC), as well as the integration of PEZA Electronic Import Permit System (EIPS) and Automated Export Documentation System (AEDS) to the BOC Electronic-to-Mobile (E2M) system for increased security and transparency in the processing and monitoring of import and export permits/documents were also discussed during the meeting.

The two agencies also talked about the basis of computation of tax and duties on the disposal of enterprises’ assets pursuant to the CREATE Act (net book value as reference) during their meeting.

Over the years,  PEZA has introduced the electronic import permit and automated export documentation system for ecozone locators.

The BOC later pursued the national single window, a computerized internet-based system that allows parties involved in trade to lodge information and documents with a single-entry point to fulfill all import, export, and transit-related regulatory requirements.

“It is important to strengthen partnership between PEZA and BOC given their respective roles in investment and trade facilitation that are being improved towards digital transformation,” Panga said.

He said PEZA has rolled out its online payment system and initiated other office automation projects to enhance customer experience and the agency’s delivery of services.

Panga said this is in response to President Marcos’ call for digital transformation among government offices and in line with the priority program of Trade Secretary Alfredo Pascual under the Technology, Media, and Telecommunications cluster of the Department of Trade and Industry’s strategic plan.

“All these will contribute to higher productivity, reliability, availability, increased performance, and reduced operating costs to the benefit of our valued ecozone investors and other stakeholders,” Panga said.

DTI calls for creation of more franchises

MANILA, Philippines — Trade Secretary Alfredo Pascual is urging investors to put up more franchises in the country, citing the country’s healthy business climate.

At the Franchise Asia Philippines 2022 conference yesterday, Pascual shared that the Philippines is the seventh largest franchise market in the world, contributing 7.8 percent to the country’s gross domestic product (GDP) and creating two million indirect and direct jobs.

“With a growing middle class, our country is considered one of the largest franchise markets in the Southeast Asian region. Eating at a popular establishment or owning branded items signals societal status in one of Asia’s most social media savvy populations, “ Pascual said.

He explained that aspiring entrepreneurs in the country are going the franchise route because establishing a business through franchising provides a higher success rate compared to starting a business on your own, as franchisees build on tried-and-tested business models.

Pascual said that market-wise, franchisees have an advantage in terms of brand recognition.

“Name recall makes franchise brands popular, making sales easier,” Pascual said.

Of the two basic franchise categories, Pascual shared that food expectedly takes precedence over non-food, with food making up 43 percent of the estimated 1,800 franchise brands in the country.

He cited data from the Philippine Franchise Association, showing that food franchises in the country have an aggregate value of P538 billion or $10.8 billion.

“Pandemic or not, the Philippine food service sector is growing as demand for convenience grows. The liberalized retail trade landscape and, to some extent, the reduction of import duties have contributed to the growth of the food service sector,” Pascual said.

He further explained that in Philippine manufacturing, food accounts for nearly half of its total output, growing at an average annual rate of eight to 10 percent per annum on the back of the country’s resilient economy and strong consumer base.

Pascual said almost all, or about 90 percent, of the food and beverage (F&B) processing industry’s output, is consumed domestically.

He said the  growing consumption contributes to the rapid expansion of the processed F&B subsector.

“This trend presents excellent opportunities for raw material and high-value ingredient producers. As quality and efficiency improve, such producers can exploit export opportunities due to the country’s strategic location and free trade agreements with other countries,”Pascual said.

In contrast, Pascual noted that the non-food service and retail subsectors each serve close to one third of franchise brands in the country – service accounts for 29 percent of franchise brands in the Philippines, and retail  (28 percent).

Non-food franchising trends cover health and beauty products, affordable indulgences, clinics, laundry services, homeschooling, and microfinance among others.

Pascual said  many franchisees in the  country are micro, small, and medium enterprises (MSMEs).

“DTI (Department of Trade and Industry) is directing its efforts to support MSMEs post-COVID-19 by helping them access capital, access technology, and access to marketing resources,”Pascual said.

He said that through the Small Business Corp., DTI has been extending financial assistance to MSMEs to provide them access to capital.

“We assist them in their debt obligation payment, repurposing existing business capital, and acquiring new technologies and systems. We help them adjust their business processes to adapt to the new normal,”Pascual said.

Pascual said the DTI conducts boot camps, seminars, and business matching events to promote franchising to overseas Filipinos and export Philippine franchises overseas.

Cambodia, Singapore agree to deepen energy cooperation

Cambodia and Singapore have agreed to deepen energy cooperation on clean energy transitions, said a joint statement.

Minister for Mines and Energy Suy Sem and Singapore Minister for Manpower and Second Minister for Trade and Industry Tan See Leng recently met virtually during the 40th ASEAN Ministers on Energy Meeting (AMEM) and agreed to deepen energy cooperation that would serve the mutual interests of both countries.

In 2013, both countries signed a memorandum of understanding on energy cooperation at the Singapore International Energy meet.

Suy Sem said that Cambodia welcomes investment in the field of renewable energy and technologies from Singapore to advance energy transition and power trade in the region.

“Cambodia and Singapore agreed to explore the possibility study on renewable energy or green energy to promote the bilateral trade through power interconnection and pipeline system,” he added.

Tan said the two countries are committed to doing their part to transition to cleaner sources of energy and reaching net-zero by or around mid-century.

“Given our shared interests, we are keen to partner Cambodia to advance bilateral and regional energy cooperation,” he added.

“Such cooperation is a step towards realising the broader Asean power grid vision to enhance interconnectivity, energy security and sustainability in the region.”

For full article, please read here


Author: Sok Sithika 

Source: Khmer Times

Cambodia’s exports to US up 37% this year

In the eight months of 2022, Cambodia’s exports to the US touched $6.4 billion, an increase of 37 percent compared to the same period in 2021, which was at $4.6 billion, General Department of Customs and Excise of Cambodia (GDCE) said in its latest report.

Imports from the US to Cambodia were at $224 million, a decrease of 3.5 percent, compared to the same period in 2021 at
$232 million.

Most of the goods Cambodia exports include clothing, shoes, travel goods, and agriculture products. From the US, it imports cars, electronics, medicines and medical equipment.

Cambodia-US trade relations have had significant growth over the last few years. In 2021, Cambodia-US trade volume was more than $7.8 billion. In addition, Cambodia’s exports amounted to $7,490 million to the US market, while the US imports from Cambodia were more than $336 million.

For full article, please read here


Author: Sok Sithika 

Source: Khmer Times 


Cambodian and Singaporean investors teamed up to develop digital business-focused app

Local and Singaporean investors have teamed up to develop ePOS – Go Digital, a modern digital business-focused app that allows local enterprises to market their products to a wider local, regional and global audience, and tap into the burgeoning online shopping space.

Developed by Phnom Penh-based Riich Me Co Ltd – an affiliate of Singapore headquartered Riich Me Pte Ltd – and officially launched on September 10 after a preliminary release, the app aims to provide today’s e-business owners with management solutions for a new generation of sales systems to improve purchases, including the QR- (quick response) code-powered ePOSQR service that enables users to sell both online and offline.

Speaking during the launch ceremony, Prum Pheaktra, CEO of ePOS Go Digital Co Ltd, the app’s associated company based in Phnom Penh, commented that the emergence and wider use of technologies has had a significant impact on daily life, education and business practices.

Covid-19 taught many vital lessons as enterprises suffered, especially family-based ones – that without an adequate set of standards, management systems or technologies to drive sales or other operations, businesses are at higher risk of being shut down by unforeseen circumstances, she said.

Pheaktra commented that the app’s launch was motivated by the ongoing challenges confronting local business owners as a result of Covid, inflation tied to the Russia-Ukraine conflict, and other global political and economic crises. She said the platform aims to inspire family businesses to adopt a digital management system that will allow growth and development.

She said ePOS Go Digital would team up with Riich Me Pte Ltd “to develop business management technology and modernisation solutions that are tailored to the Cambodian context and are easy to operate with a convenient smartphone app for small business owners, especially those with limited technical know-how”.

The app can be used to boost sales, develop businesses and increase household incomes, Pheaktra reiterated.

For more information, please read here


Author: May Kunmakara

Source: The Phnom Penh Post 

Marcos leaves Indonesia with $8.48 billion worth of investment pledges: Palace

JAKARTA - President Ferdinand Marcos Jr. will bring home $8.48-billion worth of pledged investments after his 3-day state visit to Indonesia, Malacañang said on Tuesday.

The amount was computed based on the “summary of memorandums of agreement and letters of intent signed at the Jakarta Business Roundtable Meeting on September 5, 2022,” Press Secretary Trixie Cruz-Angeles said in a statement.

The investment pledges for the Philippines from Indonesia’s business community are as follows:

$822 million in investments to textiles, garments, renewable energy, satellite gateway, wire global technology, and agrifood
$7 billion in infrastructure for unsolicited private-public partnerships such as a C-5 4-level elevated expressway
$662 million trade value for supply of coal and fertilizer.
“We anticipate that these will generate at least 7,000 new jobs,” Cruz-Angeles said.

Source: ABS-CBN News

China, EU remain potential markets for Cambodia’s agri products

China and the European markets remain the potential markets for Cambodia’s agricultural products, said key insiders, urging exporters and companies to focus on those two big markets for their processing of agricultural products.

Song Saran, president of the Cambodia Rice Federation, has encouraged those wishing to start agro-processing businesses for export to international markets shall try to grab the Chinese and European markets to sustain their exports.

China continues to be the top buyer of rice from Cambodia, with 50 percent of the market share and more than 30 percent of the EU market.

As the free trade agreement between Cambodia and China has pushed the bilateral trade between the two countries, especially factors of close relations between government and government, Saran said in a forum on business and investment opportunities in the agriculture sector held last Saturday.

Speaking of the EU market, Saran said the EU market is a long-term market, although the level of growth does not exceed 200,000 to 300,000 tons per year.

“These two markets are very potential markets for Cambodia, which can promote exports quickly and without wasting time,” Saran said.

“The model for those in the agro-food processing sector is only two markets that we must try to grab China and Europe which are possible. Other markets are still complex,” he said.

Cambodia exported more than 2.4 million tons of agricultural products to China from 2019 to June 2022, earning gross revenue of $1.94 billion, Minister of Agriculture, Forestry and Fisheries.

For full article, please read here


Author: Chea Vanyuth

Source: Khmer Times

ASEAN for Business Bulletin Jul-Aug 2022: Implementing ASEAN Trade in Goods Agreement (ATIGA); Collaboration in TVET

July 2022 Issue (link)
ATIGA brings ASEAN closer to its goal of becoming a single market and production base by reducing the tariff and non-tariff barriers for trade. ATIGA also creates the Rules-of-Origin procedures that provide flexibility in declaring the product’s certificate of origin

August 2022 Issue (link) 
ASEAN prioritises public-private partnerships to address skill mismatch and reinforce TVET training. In the new issue of ASEAN for Business, ASEAN Secretariat spoke with Wisnoe Satrijono, Executive Vice President of Human Capital Strategy at PT PLN (Persero) about business’ contribution to TVET and how it mutually benefits their operation.

Manufacturing Activity Improves in August

MANILA, Philippines — The country’s manufacturing sector showed improvement in August as it grew at a faster pace, but high prices, supply chain disruptions and rising interest rates pose challenges to growth.

In its report released yesterday, S&P Global Market Intelligence said the Philippines’ manufacturing purchasing managers’ index (PMI) improved to 51.2 in August from 50.8 in July.

The latest reading is above the 50-no change mark which separates growth from contraction, and showed growth for the sector for the seventh month.

While there was improvement, S&P Global said “the uptick was weaker than the series average.”

The PMI is based on a survey of around 400 manufacturers.

“August PMI data signalled an improvement in operating conditions across the Philippines’ manufacturing sector. Encouragingly, employment increased strongly and at the sharpest pace since mid-2017,” said Maryam Baluch, economist at S&P Global Market Intelligence said.

Firms hired additional staff in anticipation of increased production in the coming months.

Despite the improvement seen in August, Baluch said there are growing downside risks to growth.

“Already we have seen output failing to expand during the latest survey period, and factory orders falling for the second consecutive month. Furthermore, price pressures remained persistently high,” Baluch said.

Lower new order inflows led to a cutback in firms’ purchasing activity in August.

While the rate of contraction was mild, S&P Global said this is the first reduction in input buying since January.

It also said stocks of raw materials and semi-finished items went up at its softest pace since October last year.

The same was seen for post-production inventories as stocks rose at the weakest pace since February, reflecting tepid client demand.

Amid supply-side disturbances, as well as rising energy and material prices, S&P Global said purchasing costs have now risen in each month since May 2020.

“Headwinds heighten concerns that inflationary pressures, supply chain disruptions, the weakening of the peso and a high interest rate environment, with further hikes expected, will squeeze demand as clients’ disposable income will take a hit,” Baluch said.

The Bangko Sentral ng Pilipinas (BSP)  earlier said  inflation likely reached 5.9 to 6.7 percent in August, driven by the continued uptick in food prices.

Inflation rose to 6.4 percent in July from 6.1 percent in June.

Last month, the BSP delivered a 50-basis point rate hike to tame inflation. This brought the overnight reverse repurchase facility rate to 3.75 percent, overnight deposit facility to 3.25 percent, and the overnight lending facility to 4.25 percent.

“While the Filipino economy showed strong growth post-COVID, the following months will challenge momentum, with the PMI data already recording softer output expectations for the year ahead,” Baluch said.

Half of surveyed firms are hopeful of an expansion in output in the coming 12 months.

“However, the degree of confidence posted second-lowest in seven months and was subdued in the context of the series history,” S&P Global said.

Seizing Momentum: Can Indonesia’s G20 Push for The Promotion of Business and Human Rights?

Jakarta. At the height of President Suharto’s tenure in leading Indonesia, the country was famously dubbed an “Asian Tiger” as a testament towards the country’s economic and political strength which reverberated across the international community. However, the country’s culture of cronyism, its questionable human rights record and the unaccountable authority exercised by an exclusive executive branch that carried free reign ultimately led to dire economic consequences. This jolted Indonesia to transform—albeit at a gradual pace.

Shifting towards the present day, reform has boded well for the country, with the economy and infrastructure being on President Joko Widodo’s main agenda. Indonesia also now wears many hats, first as an economic and political powerhouse in Southeast Asia determined to roar once again, second as the country coordinator of the US-Asean Special Summit which recently concluded, and third, as President of G20 which marks the first time Indonesia has carried the baton since the G20’s first meeting in 2008.

With Indonesia being laser focused on its pursuit of economic growth and the political influence the country carries, the fundamental question remains whether the G20 can serve as a platform that can support economic growth whilst jointly prioritizing the adherence of business and human rights.

The prevalence of Covid-19 has fostered innovation to accelerate in monumental ways, whether it may be in the goal of curtailing cases or in the shifting of conventional businesses to adapt in a new normal. Indeed, disruption has revealed not only the resilience of a people in a time of crisis but also serves as a reminder of the inequalities found within society.

During a crisis, especially one that has the potency to cost lives, the gap between the haves and the have nots are evident as questions swirl regarding the protection of people without job security, the rising costs from a stalled global supply chain and the enforcements of regulations that put profit ahead of people.

Although the international community has taken great strides in calling to action for nearly a decade through the United Nations Guiding Principles on Business and Human Rights (UNGP), and even though the framework which upholds protection, respect and access to remedy has been translated into National Action Plans by more than 25 countries including G20 members such as the United Kingdom, Germany and Japan, its impact in improving the climate of business and human rights beyond from expanding corporate social responsibility programs remain to be seen.

At the same time, the G20, which comprises two-thirds of the world’s population and up to 80% of international trade has an influential stake regarding the direction of business and human rights in a regional and global purview. Although the sounding board of human rights has been noticeably absent from the priorities of Indonesia’s G20 presidency, the priority issues presented such as global health architecture, digital transformation and sustainable energy transition requires the adherence of human rights to ensure that innovation navigated through a rules-based order is maintained. Thus, the G20 is an opportunity for countries to chart the next course that can bring business and human rights from principles to practice.

The opportunity for the G20 to take the driver’s seat in steering towards more sustainable practices in business and human rights is supported with precedent. In 2015, the G7—which was then led by Germany—asserted support towards the UNGP and welcomed efforts to develop substantive National Action Plans which would assist in ensuring responsible and accountable supply chains. The G7 at that time also called for greater due diligence for companies and the strengthening of stakeholder initiatives that can promote greater corporate respect for human rights. These priorities come full circle as Germany has taken the helm of the G7 once again this year where they continue to highlight the need for accelerated efforts towards the realization of the UNGP by seizing legislative momentum, collective measures, and the implementation of capacity building.

Hence, the G20 is positioned strategically to communicate ideas vested upon business and human rights. On the Indonesian front, it also serves in the country’s national interest as an accelerated show of reform and a forward-thinking commitment to bring businesses into the accountability of human rights. 

The first step in pushing for a human rights based-economy is through the recognition of the importance ingrained within the concepts of business and human rights. This is a crucial focal point for the G20 which can utilize their platform to mainstream the principles of business and human rights as an underlying business model that can be used to achieve their global goals. Furthermore, it should also become a maxim of the G20 to support data-driven research which points that responsible business also equates to a long-term investment that ensures sustainable business practices. 

Second, the G20 needs to leverage this influence and authority by leading through example and become a role model for responsible business in the current international landscape.

For example, as G20 president, Indonesia can lead the charge in presenting the building blocks of business and human rights for the digital era as the country is home to approximately 2300 start-ups which comprises decacorns as well as unicorns. 

Third, the G20 needs to also present the implementation of business and human rights as a response in developing trends of the future where an aspect of business competitiveness will be measured through corporate responsibility on human rights. In addition, the G20 should further recognize that adherence to business and human rights will become the gateway of investor confidence and consumer preference. 

Innovation should not become the ultimate currency that can delay or be served as a bargaining tool when it comes to propping up an economy based on human rights. The spectacular advancements seen in the disruption of industries and the welcoming of digitalization, sustainability and the reform of global health systems are indeed aspects that need to be lauded but we should also make sure that growth benefits the many and not the few. 

Opinion by: PATRICIA RINWIGATI & RAAFI SEIFF
Image: President Joko Widodo symbolically receives the G20 presidency from Italian PM Mario Draghi at the G20 summit in Rome on October 31, 2021. (Presidential Secretariat's Press Bureau/Laily Rachev)

40 Malaysian companies eye Cambodia investment

Raising the prospects of further investment in Cambodia, 60 delegates from more than 40 Malaysian companies under the leadership of the Malaysia Retail Chain Association (MRCA) started their four-day visit yesterday.

MRCA signed two MoUs during a function at Sofitel Phnom Penh Phokeethra.

It entered into agreements with the Asia Cambodia Law Group and the Association of Guang Dong China Commercial Representative in Cambodia.

Besides Phnom Penh, the trade mission, organised by the Cambodia Embassy in Malaysia and MRCA, plans to visit Kampong Speu province during its four-day trip.

While addressing the delegates, Dr Nhem Khemara, secretary of state, Ministry of Foreign Affairs and International Cooperation, said, “Over the last 65 years, Cambodia-Malaysia bilateral relations have witnessed a significant improvement in various spectrums.

Despite the impact of the Covid-19 pandemic, bilateral trade reached approximately $500 million in 2021, up 13 percent from 2020. Around 162 Malaysian investment projects worth $3.2 billion have been approved so far this year.”

Talking about the significance of the trade mission, Cheuy Vichet, Ambassador of Cambodia to Malaysia, said, “It gives me great pleasure and honour once again to co-lead another trade mission from Malaysia to Cambodia. Our forum today is an excellent venue for tripartite collaboration and partnership between businesses from Cambodia, Malaysia and China.”

For full article, please read here



Author: Adur Pradeep

Source: Khmer Times

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