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Moody’s affirms Thailand’s Baa1 rating and keeps outlook stable

Singapore, April 07, 2022 — Moody’s Investors Service (“Moody’s”) has today affirmed the Government of Thailand’s Baa1 issuer and local currency senior unsecured ratings and maintained the outlook at stable. Moody’s has also affirmed Thailand’s foreign currency commercial paper rating at P-2.

The affirmation of the Baa1 ratings reflects Moody’s expectations that Thailand will continue to display economic resiliency to future shocks, underpinned by its large and diverse economy and strong macroeconomic policy effectiveness.

The rating also takes into account material downward pressure on the economy’s growth potential from rapid population ageing and likely long-term economic scarring from the pandemic.

 

Thailand’s fiscal metrics to remain stronger than most Baa-rated peers

While Moody’s expects Thailand’s government debt to increase and remain markedly higher than pre-pandemic norms, leaving the government with weakened fiscal strength for some time, Thailand’s fiscal metrics will still be stronger than most Baa-rated peers. Further, Moody’s assesses it likely that the government will quicken its pace of fiscal consolidation in the next two to three years once the economic recovery takes hold.

 

Balanced risks to Thailand’s credit profile

The stable outlook indicates balanced risks to Thailand’s credit profile. Thailand’s economic strength may benefit from productivity gains, including through the ramp-up of the Eastern Economic Corridor to a greater extent than Moody’s currently expects.

By contrast, the economic and social costs of ageing and Thailand’s capacity to absorb them have yet to be tested. Meanwhile, the authorities’ track record of effective macroeconomic policies, including prudent fiscal policies, despite noise in the political landscape, contributes to the stable outlook.

Thailand’s local and foreign currency country ceilings remain unchanged at Aa3 and A1, respectively. The four-notch gap between the local currency ceiling and sovereign rating reflects a balance between the country’s strong external balances and effective institutions, against the government’s relatively large footprint in the economy and moderate political risks.

The one notch gap between the foreign currency ceiling and the local currency ceiling takes into account Thailand’s history of imposing capital controls, although its low external indebtedness and high policy effectiveness reduce the risks of potential transfer and convertibility restrictions in very low-probability scenarios of the government seeing a need to impose them.

 

Sourse : Thailand Business News

US hails ‘new era’ with ASEAN as summit commits to raise level of ties

WASHINGTON (Reuters) – US President Joe Biden said on Friday a first summit in Washington with leaders from the Association of Southeast Asian Nations (ASEAN) marked the launch of a “new era” in the relationship between the United States and the 10-nation bloc.

In a joint 28-point “vision statement” after a two-day meeting, the two sides took what analysts called a symbolic step of committing to raise their relationship from a strategic partnership to a “comprehensive strategic partnership” in November.

Both China and Australia hold a similar strategic partnership with ASEAN.

Biden told the ASEAN leaders that “a great deal of history of our world in the next 50 years is going to be written in the ASEAN countries, and our relationship with you is the future, in the coming years and decades.” 

Biden called the US-ASEAN partnership “critical” and said: “We’re launching a new era – a new era – in US-ASEAN relations.” Vice President Kamala Harris said the United States would remain in Southeast Asia for “generations” and stressed the need to maintain freedom of the seas, which the United States says is challenged by China.

“The United States and ASEAN have shared a vision for this region, and together we will guard against threats to international rules and norms,” Harris said.

Date of Release: 14 May 2022

Read the full article here. 


Dust off your passports: Brunei gov’t relaxes more travel protocols

BANDAR SERI BEGAWAN – The government has announced a slew of new protocols for air travel, doing away with the Travel Green List and the need for quarantine upon arrival in Brunei. In a press conference Friday, the Minister of Home Affairs YB Pehin Dato Hj Awg Abu Bakar Hj Apong said there will be no longer be different health protocols based on a traveler’s departure country, only vaccination status. 

 
From May 6, the following new rules will come into effect: 
 
  • All vaccinated travelers will be allowed to enter/exit Brunei for non-essential travel.
  • The Travel Green List will be withdrawn. 
  • All travelers entering/exiting Brunei must be boosted with a third vaccine dose or have taken a second dose within the past three months.
  • Travelers entering Brunei no longer have to quarantine as long as they produce a negative ART result upon arrival.
  • They will also be required to perform an ART on day 2 and 3. PCR tests are no longer required for vaccinated travelers. 
  • Unvaccinated travelers can only enter Brunei if they have proof of a medical exemption. They must take an ART on arrival and a PCR test on day 3. They must also isolate until they receive their PCR result. 
  • From May 15, adolescents who are citizens or residents of Brunei must be boosted if they wish to exit the country.
Read the full article here

Brunei economy projected to grow 5.8 per cent

Brunei Darussalam’s economy is projected to grow 5.8 per cent this year, according to the International Monetary Fund’s (IMF) latest Regional Economic Outlook report. 

IMF said economic growth in Asia and the Pacific is poised to slow more than previously estimated this year amid headwinds from the conflict in Ukraine, a resurgent pandemic, and tightening global financial conditions.

Regional gross domestic product will expand by 4.9 per cent, 0.5 per centage points less than we forecast in January and slower than last year’s 6.5 per cent growth rate, according to their latest projections. 

They also estimate that inflation will rise faster in many countries, though from relatively low levels.

Slower growth and rising prices, coupled with the challenges of war, infection and tightening financial conditions, will exacerbate the difficult policy trade-off between supporting recovery and containing inflation and debt.

The invasion of Ukraine will pose the biggest challenge for economic growth, with the region’s advanced economies hurt most by reduced demand from Europe and emerging markets feeling the effects of higher global commodity prices, according to the latest projections.

IMF latest World Economic Outlook also lowered the 2022 global growth estimate by 0.8 per centage point to 3.6 per cent. It reflects a 1.1 percentage point cut for the euro area, now seen expanding 2.8 per cent.

Read the full article here.

US businesses can play key role in ASEAN green transition

Businesses in the United States (US) can play an important role in channelling the critical investments, required expertise and technology transfer to ASEAN member states, in terms of promoting green transition.

This was said by Minister at the Prime Minister’s Office and Minister of Finance and Economy II Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah during the meeting between ASEAN leaders and US business leaders at The Willard InterContinental, Washington DC, US on Thursday.

The minister said there is an opportunity to mobilise private capital to finance the initiative with ASEAN actively promoting a conducive ecosystem to attract sustainable investments and financing.

On energy, Dato Seri Setia Dr Awang Haji Mohd Amin Liew highlighted that ASEAN and US have embarked on initiatives such as the ASEAN-US Energy Cooperation Work Plan 2021-2025 and the ASEAN-US Climate Future Initiative.

He also said the ASEAN Comprehensive Recovery Framework (ACRF), adopted in 2020 at the 37th ASEAN Summit, emphasised on the importance of sustainable energy and the promotion of green growth to boost the region’s economy. The minister shared that ASEAN has introduced few initiatives to align the region’s capital markets with the sustainability agenda, such as the adoption of the ASEAN Green Bonds Standards and ASEAN Sustainability Bonds Standards and the endorsement of the regional taxonomy for sustainable finance.

The meeting discussed issues related to ASEAN-US post pandemic economic futures on energy, climate and digitalisation, and served as a platform to enhance cooperation between US business leaders and ASEAN public and private sectors.

 

Read the full article here.

Indonesia, Brunei seek to improve transport links, says ambassador

Indonesia and Brunei Darussalam are exploring direct shipping between the two nations, which allows Indonesian products to be sold and delivered to the Sultanate cheaper and faster, said Ambassador of Indonesia to Brunei Darussalam Dr Sujatmiko on Saturday.

“It will facilitate the transport of products from Indonesia to Brunei Darussalam and vice versa. We have tried several times to begin shipping between our two countries without going through a third country,“ he said on the sidelines of a Hari Raya gathering, adding that Brunei Darussalam and Indonesia have close economic and trade ties while Indonesian products are commonly found in the Sultanate.

Meanwhile, the ambassador said Royal Brunei Airlines and Garuda Airlines have begun operations, which can give a boost to the tourism sector.

“Bruneians can now travel to cities like Bali, Batam and Jakarta,” he said.

 

Read the full article here.

Indonesia, Brazil lead the world in crypto adoption: survey

Hannah Lang (Reuters) Washington, United States

Almost half of all cryptocurrency owners in the United States, Latin America and Asia Pacific purchased the digital assets for the first time in 2021, according to a new survey from US cryptocurrency exchange Gemini. 

The survey of nearly 30,000 people across 20 countries, which was conducted between November 2021 and February 2022, shows 2021 was a blockbuster year for crypto, with inflation in particular driving adoption in countries that have experienced currency devaluation, the report found. 

Indonesia and Brazil lead the world in crypto adoption, Gemini found, with 41 percent of people surveyed in those countries reporting crypto ownership, compared with 20 percent in the United States and 18 percent in the United Kingdom. 

Gemini found that 79 percent of people who reported owning crypto last year said they chose to purchase the digital assets for their long-term investment potential. 

People who do not currently own crypto and live in countries that have experienced currency devaluation against the U.S. dollar were more than five times as likely to say they planned to purchase crypto as a hedge against inflation. 

Only 16 percent of respondents in the United States and 15 percent in Europe agreed that cryptocurrencies hedge against inflation, compared with 64 percent in Indonesia and India, for example. 

The Indian rupee has declined 17.5 percent against the dollar in the last five years, while the Indonesian rupiah depreciated 50 percent against the dollar between 2011 and 2020. 

Only 17 percent of Europeans reported that they owned digital assets in 2021, and only 7 percent of those who do not currently own crypto said they intended to buy digital assets at some point. 

It remains to be seen if the adoption momentum can keep pace this year. 

While the most popular cryptocurrency, bitcoin, hit an all-time high of more than $68,000 in November, helping to push the value of the cryptocurrency market to $3 trillion, according to CoinGecko, it has traded in the narrow range of $34,000-$44,000 for most of 2022 so far.

This article was published in thejakartapost.com with the title "Indonesia, Brazil lead the world in crypto adoption: survey - Tech - The Jakarta Post". 
Illustration:  Rocketing: In recent years, the stock and crypto markets have gained popularity immensely. The crypto market is also predicted to gain an even larger potential in the future. (Unsplash/Jeremy Bezanger) (Unsplash/Jeremy Bezanger)

PH GDP grows 8.3% in Q1 2022, says economic managers

MANILA, Philippines — The Philippine economy grew 8.3 percent in the first quarter of 2022, surpassing the pre-pandemic gross domestic product level, the country’s economic managers said Thursday.

The growth likewise exceeded the median analyst forecast of 6.7 percent, the economic managers said.

“This is a significant reversal from the 3.8 percent contraction in the same period last year. Growth in the first quarter exceeded the median analyst forecast of 6.7 percent, making the Philippines the fastest growing economy in the East Asia Region for the period,” they said in a joint statement.

The economy also grew by 1.9% compared to the fourth quarter of 2021, they said.

The statement included Socioeconomic planning secretary Karl Chua, Finance Secretary Carlos Dominguez, Budget and Management officer-in-charge Tina Rose Marie Canda.


GDP, which is the total value of all finished goods and services in a country, is used by experts and policymakers to assess the economy’s health. The government also uses this number in decision-making.

A higher GDP figure is desirable as it lowers the debt-to-GDP ratio, a figure that illustrates the size of the economy relative to its debt obligations, which is closely monitored by credit rating agencies.


The economic managers also pointed out that the unemployment rate in the country fell to 5.8 percent in March, which is the lowest since the start of the pandemic, adding that employment creation is now at 4.4 million above the pre-pandemic level.

“We have restored many jobs and livelihoods by shifting to a more endemic mindset, accelerating vaccination, and implementing granular lockdowns that only targeted the areas of highest risk while allowing the majority of our people to work and earn a living,” they said.

“Growth in the first quarter of 2022 was broad-based as most sectors rebounded from their contractions in the same period last year,” they added.


Source: Philippine Daily Inquirer

5 things to consider before launching a business in Taiwan

You’ve decided to live and work in Taiwan and begin mapping out your path to launching a business in Taiwan. But before you go any further, here are some things to think about.

Knowing if your business is a good match for Taiwan
As a hardware manufacturing hub, Taiwan is an obvious choice for multinationals like Apple, Google, and HP looking for partners and suppliers.

But zero-to-one companies may have a harder time identifying the best ways to leverage Taiwan’s capabilities. Since Taiwan’s strengths lie mostly in tech manufacturing, an SME that produces physical products, say, electric bicycles or 3D printers would have the greatest chance of success.

On the other hand, enterprises that are consumer-facing or predicated on a scale, e.g. selling a new elixir (kombucha or handcrafted beer) to Taiwan may need to rethink their plans or businesses that hope to use Taiwan as a stepping-stone to China may encounter more challenges.

Acquiring a government grant in Taiwan
Taiwan has done a great job advertising government support for start-ups. We have encountered many entrepreneurs upon their face visit to Taiwan inquiring about government grants for their startups.

It is important to understand that government grants are awarded not to individuals but to companies registered in Taiwan, so if you’re a foreign entrepreneur with a foreign company, then you need to establish a Taiwanese entity to qualify for a government grant.

Branch offices and representative offices are not eligible for grants. And while foreign workers with Taiwanese residency (ARC) are allowed to receive such subsidies, remote workers located outside Taiwan aren’t eligible. We cover this in greater detail on the process of applying for a government grant in Taiwan here.

Understanding accounting practices in Taiwan
It’s easy to assume that accounting practices are the same at home and abroad, but some aspects of Taiwan’s accounting procedures may come as a surprise.

Take business expenses as an example. In the US, business accounting operates within an “innocent-until-proven-guilty” framework, which means you can write off a business expense on your tax return with a receipt, even if it is written on a paper napkin.

But Taiwan’s business accounting framework is the opposite: you’re guilty until proven innocent. So to claim a business expense, you need to receive a Fa-Piao (發票) or a Uniform Invoice, but in order for it to be an expense deduction, you need to give the vendor your tax ID number, which needs to be typed or written on the official receipt you obtain from them.

Elsewhere, particularly in the context of start-ups, this accounting framework means that a payment you’ve made to a company registered outside Taiwan for a SaaS subscription or to a freelancer in Chiang Mai won’t be recognised by the Taiwanese government as a valid business expense. These are only two examples of how accounting practices in Taiwan can be completely different from other places.

Navigating the regulatory environment in Taiwan
Startups today are built for a digital, cross-border world, but managing cross-country jurisdictions can be a real huge headache from an administrative standpoint. Taiwan may be a liberal and open country, but when it comes to business practices it’s still relatively conservative.

The government in Taiwan oversees much of daily business. Taiwanese labour law, for example, takes precedence over any agreement that may be signed between a company and its employees, so employers and employees can’t enter into any private agreements as they would be able to, say, in the US.

And since the Taiwanese government plays a big role in business, foreign business owners will likely find themselves having to talk to multiple agencies to get answers to their business questions. This is where a service like 11th Fleet can help simplify the process.

11th Fleet’s outsourced CFO/COO solution can help avoid many missteps for entrepreneurs and companies that are new to Taiwan. Most importantly, 11th Fleet can help stave off trouble by helping its clients anticipate any problems that may arise along the way, saving its clients valuable time and money by avoiding detours.

Overcoming the language barrier in Taiwan
Taiwan is closer to Japan and South Korea in terms of English fluency than it is to Singapore or Hong Kong, where English is spoken as an official language.

Although the Taiwanese government is committed to making the country bilingual by 2030, business in Taiwan is still largely conducted in Mandarin, and business contracts and documents are written in Chinese.

This means foreign investors who aren’t fluent in the local language must take the extra step to have their official documents and contracts translated when registering their businesses in Taiwan.

Moreover, when you are ready for business, you should have someone on your team who can help you navigate the language and cultural barriers.

Source: e27

Govt announces full reopening of Laos starting May 9

The government has announced that all international border crossings will reopen, so that Lao and foreign nationals, well as stateless people, can enter and exit Laos freely.
The Prime Minister’s Office on Saturday (May 7) issued a notice declaring that borders would reopen.
The reopening of Laos and the lifting of restrictions under Notice No. 627 will come into effect on May 9, Head of the Secretariat of the National Taskforce for Covid-19 Prevention and Control, Mrs Thipphakone Chanthavongsa, told a press conference on Saturday.

Citizens of countries that have signed a bilateral or unilateral visa waiver agreement with Laos can enter without applying for a visa.

Citizens of countries that have not signed visa waiver agreements with Laos can apply for a visa at Lao embassies or consulates in foreign countries. Visitors can also apply for a visa online or on arrival at border crossings where such service is available.

Lao and foreign nationals and stateless people aged 12 and older who have not been fully vaccinated are required to take a Covid-19 ATK test within 48 hours of their departure for Laos. However, they are no longer required to have a Covid test upon arrival. People who have a certificate indicating full Covid vaccination can enter Laos without needing to have a Covid test in either their departing country or upon arrival in Laos.

Visitors who contract Covid-19 during their stay in Laos are responsible for all expenses involved if treatment is needed. Treatment can be obtained at state and private hospitals, while self-isolation and self-care is other options.

Vehicles will be allowed to enter and exit as normal, the same as before the pandemic was declared. The Ministry of Public Works and Transport will issue instructions concerning the changes in this regard.
The government has called on state departments, business operators and all sectors of society to be ready to welcome and offer warm hospitality to tourists.

In addition, the government will allow entertainment venues including karaoke clubs to reopen, on condition that staff and customers comply with standard Covid control measures.

The taskforce will monitor the situation closely and revise virus control measures as needed, Mrs Thipphakone said.
“In the case of any changes (to measures), the government will inform the public,” she said.   

Deputy Minister of Health Dr Snong Thongsna told reporters the decision to fully reopen Laos was made in light of the declining number of Covid cases, both worldwide and in Laos.

The average number of new infections reported in Laos each day has plummeted tenfold, from almost 2,000 a day in February and March this year to less than 200 a day at present.

“The rate of infection is declining daily,” Dr Snong said. The Omicron variant is the dominant form of Covid currently circulating in Laos, with a few cases of the Delta variant also being recorded. As of May 7, a total of 208,715 infections had been reported, including 746 Covid-related deaths.

HLBCAM boosts Cambodia’s SME growth prospects

Boosting the business and investment prospects of the small and medium enterprises (SMEs) in Cambodia and Malaysia, Hong Leong Bank (Cambodia) Plc signed a memorandum of understanding (MoU) with the SME Association of Malaysia on Thursday.

The MoU intends to establish a collaboration to jointly share knowledge and expertise, as well as provide advisory and business matching opportunities aimed at supporting the growth of SMEs in Cambodia. The MoU also aims to facilitate business and investment potentials between Cambodian and Malaysian SMEs.

Terrence Teoh, Managing Director and Chief Executive Officer of HLBCAM signed the MoU with Ding Hong Sing, National President of SME Association of Malaysia during a ceremony at the Hyatt Regency in Phnom Penh. It was witnessed by H.E. Eldeen Husaini, Malaysia Ambassador to Cambodia and H.E. Cheuy Vichet, Cambodia Ambassador to Malaysia.

As a bank that recognises the vital role of SMEs in Cambodia’s economic growth, Teoh reaffirmed HLBCAM’s commitment to supporting SMEs to strengthen their business resiliency during the next phase of the pandemic recovery and help them to rebuild stronger and more sustainably through various trade and investment opportunities. SMEs in Cambodia account for 98 percent of businesses, contributing 73 percent to employment and 58 percent to the gross domestic product (GDP).

While pointing out the significance of the MoU, Teoh said, “With SMEs as a key contributor to Cambodia’s economic growth, we share the same goal as Cambodia to help spur the enterprise spirit and boost economic development. Through this MoU, I believe our joint capabilities and deep insights into both markets can help our Cambodian and Malaysian SME customers navigate mutual business matching opportunities. We are also able to help them connect with a broader range of business and financial solutions, especially in digital innovation to drive business performance and greater sustainability.”

Representing the SMEs community in Malaysia, Ding Hong Sing said that the MoU would open up beneficial opportunities for SMEs from both countries to foster collaboration. “Our common aim is to share industry expertise and know-how through study visits, workshops, and seminars with relevant business partners. By combining forces, we are able to help SMEs realise the full potential and opportunities to be harnessed from the growing Cambodian and Malaysian SME sectors.”

For full article, please read here


Author: Adur Pradeep

Source: Khmer Times 

Cambodia welcomes Malaysian SME trade delegation

The SME Association of Malaysia touched down in Phnom Penh on Wednesday to kick off its four-day mission to discover the investment opportunities and framework that post-Covid Cambodia has to offer, led by various ministers and supported by the ambassador to Malaysia.

The delegation left to the Ministry of Foreign Affairs and International Cooperation (MFAIC) and was welcomed by Prak Sokhonn, Deputy Prime Minister with warm words about the opportunities that await both nations.

“Now is the right time to re-connect our businesses, it is the right time to re-connect our economies and it is time to explore opportunities as to how we can develop together post covid. This year marks the 65th anniversary of the establishment of our diplomatic relations – so what better way to celebrate this anniversary than to join hands and recover together.”

Despite the bumpy curtailment of Covid-19 pandemic, last year’s trade volume with Malaysia was recorded at $500 million, up 30 percent compared to 2020. As of February, 162 Malaysian investment projects worth $3.2 billion had been approved by the CDC, ranking Malaysia among the top investors of Cambodia in 2022.

After the welcome at the MFAIC, the delegation was taken to see the Royal palace, followed by a trip along the Riverside before departing for dinner. During this time, Chin Chee Seong, national secretary general of the SME Association of Malaysia, told Khmer Times, a bit more about the makeup and intentions of the delegation.

“We brought in three different categories of business: food and beverage manufacturing, construction and travel services. Some of these companies are experiencing a shortage of manpower in Malaysia, and one possible solution we are exploring is to move our factories and processing facilities into new territories. For me, Cambodia is an attractive destination due to the combination of stable politics and sustained growth, in addition to the fact that many Malaysians already abode here – so it feels like we’re close to home.”

For full article, please read here



Author: Josh Down 

Source: Khmer Times 

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