The Southeast Asia region, led by Indonesia, added 70 million new online shoppers since the start of the pandemic, according to an annual report by Facebook Inc. and Bain & Co. Surveying more than 16,000 people across Singapore, Malaysia, the Philippines, Indonesia, Thailand and Vietnam, the researchers found a rapid pace of digital adoption during the pandemic and related lockdowns. By the end of 2021, they expect each of those countries to have 70% or more of its adult population as digital consumers. The jump from 5% to 9% of online retail penetration also marked faster growth than India, Brazil and China.

Online spending per person across the region in 2020 was $238, outpacing earlier forecasts, and is expected to rise to $381 by the end of 2021. The role of social video tripled in importance for online shopping, with 22% of respondents now citing it as their top channel for discovery. The research also found online groceries to be the fastest-growing segment, with a majority of consumers planning to either maintain or increase their at-home online spending on that and other categories. “What we see in China and the U.S. is more of a channel shift from offline to online, whereas in Southeast Asia the growth in consumer spending and retail is driven by online channels,” Magnus Ekbom, chief strategy officer of Alibaba Group Holding Ltd.’s Singapore-based unit Lazada Group SA, said in the report.

About 346 million people in Southeast Asia accessed Facebook daily as of the second quarter of this year. That figure closely mirrors the 350 million forecast to be digital consumers by the end of 2021. The forecast suggests a deceleration of growth after the pandemic-driven surge, as the next 30 million shoppers aren’t expected to come online until 2026. More than 95% of respondents accessed the internet on their smartphones.

Fintech funding
Internet and tech startups grew to dominate venture capital and private equity funding for the region, commanding 88% of deals by value in the first quarter of this year, up from 75% a year earlier. Financial technology, or fintech, was the dominant sub-category with 56% of tech funding, spanning such services as buy-now-pay-later, peer-to-peer lending, digital wallets and cryptocurrency.

“If we went back three years ago, Southeast Asia was still lagging,” Benjamin Joe, vice president of Southeast Asia and emerging markets at Facebook, said during a virtual briefing on Tuesday. “That clearly is not the case. It’s actually leading the way.”

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Brunei Darussalam was ranked by Moody’s Analytics to be the third lowest economic risk in ASEAN due to the prolonged COVID-19 pandemic and placed 13th among 20 Asia-Pacific countries.

Moody’s Analytics on Monday was revealed with its Relative COVID-19 Economic Risk Index, which positioned countries in the region using a weight of 50 per cent on the vaccination rate, and 25 per cent each on new COVID-19 cases and deaths per one million population over the latest seven-day period.

All three factors were taken into consideration to determine the relative economic risk, as countries with any combination of low vaccination rates, high incidence of new cases, and high death rates would be at high risk of longer and stricter movement controls that would slow or constrict the pace of economic growth,” said Moody’s Analytics.

Ranked number one or with the lowest risk was Singapore, followed by China, Cambodia, Hong Kong and Japan.

Among ASEAN member countries, Laos was in 9th place while Brunei was at 13th place.

Moody’s Analytics added, “The index provides an indication of where further risk may lie from the economic consequences of COVID-19. Those that rank low could still face longer lockdowns or stricter social distancing measures if conditions do not improve.

“And if this is the case, those governments may have to respond with further fiscal support to manage the economic hit to households, small businesses, and industries hit particularly hard by COVID-19.”

In early August, the Brunei Economic Update published by the Centre for Strategic and Policy Studies (CSPS) said that Brunei Darussalam’s economic growth outlook remains robust, but uncertainty looms.

Despite a contraction in first quarter (Q1), the Brunei economy is still projected to grow modestly in 2021, reflecting broad-based growth across sectors as external demand and domestic activity strengthen.

In May, the Asian Development Outlook (ADO) 2021 said Brunei Darussalam’s economy is expected to strengthen in 2021 and 2022 on an improving external environment with a gross domestic product (GDP) growth of 2.5 per cent this year and three per cent next year.

Growth in 2021 will be supported by a recovery in global demand and higher oil and gas prices, which will boost government revenue and support government consumption. Private consumption is expected to grow as the economy continues to strengthen.

National representatives of ASEAN member states attended the Fourth ASEAN Smart Cities Network (ASCN) via video conference yesterday.

The ASCN chaired by Permanent Secretary at the Ministry of Transport and Infocommunications (MTIC) Haji Mohammad Nazri bin Haji Mohammad Yusof, in his capacity as Chair of the ASCN 2021, was also attended by Chief Smart City Officers of member cities, ASCN Shepherd as well as senior officials from ASEAN Secretariat.

The meeting discussed the development of an ASCN Online Portal as well as the development of an ASEAN Smart and Sustainable City Investment Toolkit targetted to be finalised by September.

It also reviewed the progress, challenges, and way forward of the ASCN Smart City Action Plans (SCAPs) of the 26 member cities, including an updated of Kampong Ayer Revitalisation Project and Clean Water River Management Project by Acting Chairman of Bandar Seri Begawan Municipal Department Aminuddin bin Buntar as the Chief Smart City Officer of Bandar Seri Begawan.

The progress and development made with regards to smart city cooperation with the Dialogue Partner and External Partner were also briefed. The meeting agreed for Singapore to renew its tenure as ASCN Shepherd to provide advice and support to the ASCN Chair, in line with the terms of reference, for the next two years.

Deputy Permanent Secretary (Infocommunications) at the MTIC Haji Hairul Mohd Daud bin Haji Abdul Karim, senior officials from MTIC and other ministries were also present.

The ASCN was established in April 2018 at the 32nd ASEAN Summit in Singapore. It currently has 26 member cities from the 10 ASEAN member states. The ASCN meets annually to discuss progress on each city’s action plan, launch new projects, and explore new opportunities with ASEAN’s external partners.

Date of Release: 31 August 2021

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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

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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