CACCI Profile Confederation of Asia-Pacific Chambers of Commerce and Industry

Vol. XLII, No. 6 June 2019 CACCI joins ASEAN Business Advisory Council as Associate Member

The Confederation CACCI will be invited to join these of Asia-Pacific Chambers of regular dialogues, and will have the Commerce and Industry (CACCI) opportunity to provide inputs to the has been formally accepted as recommendations that the ASEAN- Associate Member of the Joint BAC will present to the ASEAN Business Council under the ASEAN Leaders. Business Advisory Council (ASEAN-BAC). Its application was In his Letter of Intent to the ASEAN-BAC Chairman formally approved by the ASEAN BAC during its May 3 meeting Mr. Arin Jira from , CACCI President Mr. Samir Modi in Manila, . pointed out that, as a regional organization composed mostly The ASEAN-BAC was BAC established by the ASEAN of apex chambers of commerce and industry and business Heads of State and Government at the 7th ASEAN Summit in associations in Asia, CACCI is in a position to make significant November 2001 in Bandar Seri Begawan, Darussalam. contribution to the work of the Joint Business Council and the Launched in April 2003, ASEAN-BAC was set up with the ASEAN-BAC in identifying issues to facilitate and promote mandate to provide private sector feedback and guidance to economic cooperation and integration. boost ASEAN’s efforts towards economic integration. Aside “Given the regional nature and geographical scope of our from providing private sector feedback on the implementation organization, I believe CACCI will be able to provide expertise of ASEAN economic cooperation, the Council also identifies in the area of trade facilitation and trade generation, which have priority areas for consideration of the ASEAN Leaders. been the focus of our policy advocacy work in the past few years. Accordingly, ASEAN-BAC’s activities are primarily In addition, we can also contribute to the work of ASEAN-BAC focused on reviewing and identifying issues to facilitate and that may focus on specific sectors, such as the promotion of promote economic cooperation and integration. To help them in entrepreneurship, SME development, food safety and security, this regard, the ASEAN-BAC invites a number of joint business energy and environment, and regional tourism, among others. We councils with interest in ASEAN (e.g., ASEAN-US Business have sub-committees, or Product and Service Councils that are Council, ASEAN- Business Council, -ASEAN focused on these sectors and a few others as well.” Business Council, etc.) to attend regular meetings for dialogues CACCI had attended, as observer, two previous meetings and exchange of ideas on how to improve regional cooperation. of the Joint Business Council, namely, the 9th Joint Consultation As Associate Member of the Joint Business Council, Meeting held on January 26, 2017 in Manila, Philippines, and

In this Issue:

• Product and Service Councils ...... 4 • CACCI Takes Part in the CoNGO Regional • Investment & Joint Ventures in the Region .... 5 Committee Meeting Bangkok ...... 2 • Economic Cooperation News ...... 7 • Presidential Visit to in July ...... 3 • Technology ...... 8 • CACCI Secretariat Makes Ocular Inspection • Fairs & Exhibits in Asia-Pacific ...... 9 of Proposed Conference Venue in Kitakyushu 3 • CACCI Member Personality ...... 4 • Policy Updates ...... 10

1 the 11th Joint Consultation Meeting ASEAN Leaders Summit. in our meetings and conferences. Hence, held on January 17, 2018 in Singapore. “Through our participation in we believe that CACCI can provide inputs Furthermore, CACCI had participated in these important gatherings, we have to the discussions and formulation of several of past years’ ASEAN Business learned that most of the issues being recommendations by the ASEAN-BAC,” and Investment Summit organized by the discussed by your organization are the Mr. Modi stated. ASEAN-BAC in conjunction with the same issues taken up by CACCI members

CACCI takes part in the CoNGO Regional Committee Meeting in Bangkok NGOs/CSOs advocate with governments at national and local level to achieve meaningful commitment to implementation of the Goals. The HLPF reviews each July the progress and the gaps on achieving the SDGs. This is done on a rotation basis, and in 2019 the HLPF will review the following Goals: Quality Education, Decent Work and Economic growth, Reduced Inequalities, Climate Action, Peace, Justice and strong institutions, and lastly, Partnerships for the Goals. Mr. Bautista and Mr. Ritchie said that NGOs/CSOs throughout the Asia-Pacific are working in many different ways and at many different levels on the six SDGs up for review at this year’s HLPF. Thus for the Bangkok Meeting of RCAP on May CACCI took part in the Regional Committee in Asia- 39-30, CoNGO invited a wide range of Asia-Pacific NGOs/CSOs Pacific (RCAP) of the Conference of NGOs in Consultative to present and discuss their substantive on-the-ground experience Relationship with the United Nations (CoNGO) held on May in advocating for and implementing one or more of the above 29-30, 2019 at the premises of Siam University in Bangkok, six SDGs. The participating NGOs/CSOs were requested to Thailand. The agenda for the meeting was “The UN Sustainable focus their discuss good practices, such as what initiatives have Development Goals and Civil Society – National and Local worked, what cooperation mechanisms with other stakeholders Implementation and Follow-up”. have proven valuable; as well as core challenges, such as what Representing CACCI at the Bangkok meeting was Mr. impediments have arisen in cooperation and outreach; and Amador R. Honrado, Jr., CACCI Deputy Director-General, who lessons learned, including what new mobilization actions and joined some 30 other officers and members of CoNGO in this channels are needed and/or foreseen to make progress on SDG year’s gathering. Also in attendance with Mr. Honrado was Ms. implementation. Allisson Hsu, Consultant of CACCI and Chief, Taiwan Technical Mission in the Kingdom of Thailand, International Cooperation Summary of CACCI Presentation and Development Fund (TaiwanICDF). Ms. Allison Hsu made the presentation on behalf of Chaired by CoNGO President Mr. Liberato Bautista and CACCI. Hsu’s presentations focused on the “Case Studies on co-chaired by CoNGO First Vice President Mr. Cyril Ritchie, Training Education and Better Jobs.” the two-day meeting aimed to examine case studies by NGOs/ The case studies – mainly from ICDF’s various programs CSOs on implementation (regional, national, local) of the six - presented how NGOs can support beneficiaries find decent jobs Sustainable Goals (SDGs 4, 8, 10, 13, 16, 17) that are to be by providing formal and non-formal education and training. The reviewed at the UN High Level Political Forum (HLPF) at the case studies underscored the importance of human capital as the United Nations Headquarters in New York in July 2019. foundation for all business, and that in the Asia-Pacific region, formal education is vital to gaining access to decent jobs. Background of the Meeting The studies pointed out that for people who are not able In their introductory remarks, President Bautista and to achieve tertiary education, education training or on-the-job First Vice President Mr. Ritchie pointed out that CoNGO and training can improve the quality of employment, adding that for RCAP are committed to Agenda 2030 and to mobilization and the people cannot afford higher education and those who seek action to achieve the Sustainable Development Goals (SDGs). better positions, international NGOs/NPOs can provide solutions They explained that since the adoption of the 17 SDGs by the to them. United Nations General Assembly in September 2015, NGOs and The case studies presented by Ms. Hsu demonstrated CSOs throughout the world – including those in the Asia-Pacific the strategies, methods and outcomes of providing education and region – have set to work to make the Goals meaningful to the training in the Asia-Pacific region and how it helped to promote populations they serve, working in concert with governments, inclusive and sustainable economic growth, employment and communities, academia and other stakeholders. decent work for all. Among the examples she highlighted on formal education were ICDF’s International Higher Education

2 professional skills through training and building capacity for micro-business start-up. Among the recommendations presented by the case studies included the following: Providing affordable and quality technical, vocation and tertiary education for all, and covering both youth and adults in formal and non-formal education and training; Achieving full and productive employment and decent work for all women and men, and developing and operationalizing a global strategy for youth employment and implementing the Global Jobs Pact of the International Labour and; Enhancing the Global Partnership for Sustainable Development complemented by multi-stakeholder partnerships that mobilize and share Scholarship Programs for Asia-Pacific students focusing mainly knowledge, expertise, technology and financial resources, to on agriculture and fisheries, public health and medicine, business support the achievement of SDGs. and management, engineering and science, and human resources. Founded in 1948, the Conference of Non-Governmental On the other hand, nonformal education programs offered to Organizations in Consultative Relationship with the United participants from Asia-Pacific countries focused mainly of health Nations (CoNGO) is an independent, international, non-profit care personnel training, professional workshops on agriculture membership association of nongovernmental organizations biodiversity, circular agriculture, water management, and youth (NGOs). It facilitates the participation of NGOs in United entrepreneurship development. Nations debates and decision-making. CoNGO is most active at She also highlighted ICDF’s Technical and Vocational the major UN centres of New York, Geneva and Vienna but its Education and Training (TVET) program that aims mainly work stretches out to all regions of the world. CACCI, which was to improve the employability of the youth and women in the granted Consultative Status with the ECOSOC under the United small developing island states in the Pacific region, by fostering Nations in 1970, joined CoNGO in 1979.

CACCI Presidential Visit to CACCI Secretariat Makes Japan in July Ocular Inspection of Proposed Conference Venue in Kitakyushu

CACCI President Samir Modi is inviting members to join him in his Presidential Visit to Japan on July 21 to 24, 2019. The visit will be hosted by the Japan Chamber of Commerce and Industry (JCCI). JCCI Chairman and Honorary Chairman of Nippon Steel Corporation, Mr. Akio Mimura, together with CACCI Vice President and Former Chairman of the Board of Marubeni Corporatio, Mr. Teruo Asada, will be welcoming the delegation. The first day of the visit will include a trip to a Japanese sake brewery, Nissin cup noodles museum, and the beer brewery of Suntory or Kirin Beer. The activities will give participants an CACCI Director-General Mr. Ernest Lin (3rd from right, overall view of the technologies used by these top companies in above photo) and JCCI Project General Manager International Japan. Division Mr. Kazuo Nishitani (3rd from left) join officers The delegation will also visit the Ministry of Economy, of Kitakyushi CCI and the CACCI Secretariat in the ocular Trade and Industry (METI) and possibly another ministry on the inspection on June 6 of one of the two venues proposed for the second day. upcoming 33rd CACCI Conference to be held later this year. The Please email the CACCI Secretariat at [email protected] ocular inspection was followed by a preliminary discussion on for more information or to register. preparations for the Conference.

3 CACCI Member Personality

Sheikh Fazle Fahim is new FBCCI Md Muntakim Ashraf, representative of the president Cold Storage Association, was elected as the senior vice- Sheikh Fazle Fahim, managing president. This time, seven vice-presidents were elected with director of Obsidian Bangladesh Ltd, three each from chamber and association panels. has been elected as the president of the The chamber-nominated vice-presidents are: Hasina Federation of Bangladesh Chambers of Newaaz, representative of the Bagerhat Chamber of Commerce Commerce and Industry (FBCCI) for 2019- and Industry; Md Rejaul Karim Rejnu, a representative of 2021. the Jamalpur Chamber of Commerce and Industry, and Dilip Fahim, who represented the Gopalganj Chamber of Kumar Agarwala, representative of the Chuadanga Chamber of Commerce and Industry, is the 22nd president of the apex trade Commerce and Industry. body of the country. The association-nominated vice-presidents are: Md The senior vice-president of the outgoing committee, Siddiqur Rahman, representative of the Bangladesh Garment Fahim has replaced Shafiul Islam Mohiuddin. Manufacturers and Exporters Association; Mir Nizamuddin Md Ali Ashraf, chairman of the election board of the Ahmed, representative of the Bangladesh Electrical Association, FBCCI, announced the names of the president and seven vice- and Nizamuddin Rajesh, representative of the Bangladesh presidents at a meeting at the federation office in Dhaka on April Secondary Quality Tinplate Importers and Merchants Association. 29.

Product & Service Councils

Asian SME Council 5,000 women-led SMEs from Asian Council on and the Pacific will benefit from the 5-year Health and Education New Financing to Enhance programme. Support for Women-Led SMEs “Women’s businesses have a crucial role to play in the Asia Pacific WHO Recognizes Burnout region’s efforts to achieve inclusive as Medical Condition and sustainable development, but social and economic barriers will have to be addressed for women to realise this potential,” said ADB Social Development Specialist (Gender and Development) Keiko Nowacka. “For ADB, We-Fi is an opportunity to help accelerate progress on gender equality and challenge the entrenched The World Health Organization status quo that prevents WSMEs from has for the first time recognized “burnout” The Asian Development Bank flourishing.” in its International Classification of (ADB) has received US$20.2 million Women-led businesses comprise Diseases (ICD), which is widely used from the Women Entrepreneurs Finance about 60 percent of all micro, small, and as a benchmark for diagnosis and health Initiative (We-Fi) to support women- medium-sized enterprises in Asia and insurers. led small and medium-sized enterprises the Pacific. However, these enterprises The decision, reached during the (WSMEs) to access critical financing and face capital constraints, which hamper World Health Assembly in Geneva, which training in Vietnam and the Pacific. their growth and development, while the wraps up on May 28, could help put to rest The grant – the second that ADB women heading these businesses have decades of debate among experts over how has received from We-Fi – will finance the limited access to business training and to to define burnout, and whether it should be Women Accelerating Vibrant Enterprises targeted government support. The WAVES considered a medical condition. in Southeast Asia and the Pacific (WAVES) programme will address these constraints In the latest update of its programme, which aims to promote by focusing on the three areas of WSMEs’ catalogue of diseases and injuries around inclusive and sustainable growth and development – access to finance, capacity the world, WHO defines burnout as “a development through women’s businesses development, and enabling environment. syndrome conceptualized as resulting from and entrepreneurship. Approximately Vietnam News chronic workplace stress that has not been

4 successfully managed.” ’s commercial 5G service in 2020, forward,” said Bob Kirkwood, chief It said the syndrome was following trials this year. technology officer. “Our investment in characterized by three dimensions: “1) The accelerated pace of investment ATIC not only enhances our global R&D feelings of energy depletion or exhaustion; may be meant as support for embattled capabilities, but also demonstrates our 2) increased mental distance from one’s Chinese telecom equipment maker Huawei commitment to providing exceptional job, or feelings of negativism or cynicism Technologies, which has been shut out of a service to our customers based in Asia.” related to one’s job; and 3) reduced number of foreign 5G network projects on ATIC is fully equipped with professional efficacy.” information security fears. commercial equipment to simulate real “Burnout refers specifically to Huawei is a major supplier of world manufacturing processes including phenomena in the occupational context network equipment to Chinese carriers. knitting, weaving, dyeing and finishing. and should not be applied to describe When China Mobile held a round of bidding This will enable the company to deliver experiences in other areas of life,” for base stations in January, Huawei took unmatched technical support to its according to the classification. half. customers, ensuring consistent product The updated ICD list, dubbed Nikkei Asian Review quality and helping to reduce risk. In ICD-11, was drafted last year following addition, the lab has garment engineering, recommendations from health experts fabric certification and analytical testing around the world, and was approved on Asian Garment and tools to help customers achieve desired May 25. performance attributes for their fabrics or Textile Council garments. Innovation Textiles Lycra’s Advanced Textile Innovation Asian ICT Council Center opens in China Chinese 5G Investment Set to Investment & Joint Quicken with 1st Licenses Ready Ventures in the Region

Aboitiz Group Takes Full Control of The Lycra Company, a leading Singapore-Based Agribusiness Firm provider of fiber and technology solutions for the global apparel and personal care China’s government will as early industries, officially opened its new as this month allow the nation’s three Advanced Textile Innovation Center leading wireless carriers to operate 5G (ATIC) in Nanhai, China on May 16. The Aboitiz group has taken full communication networks, accelerating The new 4500 square meter ownership of Singapore-based Gold Coin the rollout of an estimated $180 billion in Research & Development (R&D) Management Holdings Ltd., the largest nationwide investments, industry watchers laboratory, which is the company’s fourth, agribusiness company in the region, with said. represents a significant increase in the US the buyout of the remaining 25 percent The Ministry of Industry and based firm’s global R&D capabilities. stake held by a Zuellig scion for $120 Information Technology said on June 3 that Scientists at the R&D center will million. it will issue 5G licenses “soon,” the state- help mills, brands and retailers throughout The amount was based mainly on run Xinhua News Agency reported. Asia, as well as Western-based companies the same enterprise value of $550 million Sources at the ministry said the with local sourcing offices, create as last year’s acquisition of the 75-percent initial approval will go to state-owned innovative fabrics and garments using the stake in Gold Coin. After deducting net debt China Mobile, China Telecom and China company’s branded textile solutions, which (debt less cash and short-term investments) Unicom, which have more than 1.5 billion include LYCRA fiber, LYCRA HyFit fiber, and certain sums payable by Golden combined subscribers. COOLMAX fiber and THERMOLITE Springs Group Ltd. to Gold Coin, the final The ministry has designated 2019 fiber. The research team will also cash consideration for the 25 percent was as the starting year for commercial fifth- engage with customers in opportunity $120 million. generation service in China, according to identification, as well as the development In a disclosure to the Philippine the Xinhua report. Industry sources said and commercialization of new polymer, Stock Exchange on May 30, Aboitiz this phrase suggests Chinese carriers will fiber and textile technologies. Equity Ventures said its food unit Pilmico move forward network investments. “Developing ground breaking International Pte. Ltd. (Pilmico Int’l) had Previously announced innovations and creating new garment agreed to acquire the remaining 25 percent government plans had put the start of categories are part of our company’s heritage and critical to our success going stake in Gold Coin.

5 Investment & Joint Ventures in the Region

The takeover of Gold Coin is the the world’s largest automakers and battery to 3D printing and embedded identifiers, group’s single largest overseas investment makers, to compete in the fast-growing EV and has access to NTU’s expertise in 3D to date. market. They also announced they would printing and blockchain. Gold Coin is engaged in the expand their existing tie-up on developing Straits Times business of animal feeds manufacturing, and manufacturing batteries for EVs. which it carries out through various Prime Life Technologies will be Raimon Land, Mitsubishi Estate subsidiaries operating 20 feed mills in equally owned by Toyota and Panasonic to Jointly Develop $277m seven countries in Asia Pacific. and headed by Makoto Kitano, senior Office Building The move is in line with the managing executive officer of Panasonic. group’s plan to expand its animal feeds Japan Times business in Asia Pacific. Philippine Daily Inquirer NTU, ISF Incubator Launch International 3D-Printing Toyota and Panasonic to Merge Start-Up in Singapore Housing Units and Team Up on ‘Smart Town’ Business

Thailand’s property developer Raimon Land has established a 60:40 joint Nanyang Technological venture with Japan’s Mitsubishi Estate University (NTU)’s innovation and to develop One City Centre with a total enterprise company, NTUitive, has formed investment of 8.8 billion baht ($276.57 a 3D-printing joint venture with ISF million), according to the company’s Incubator, the technology-focused start- announcement on May 29. up accelerator arm of global invention and Of the total amount, it will spend investment business Intellectual Ventures. 5.5 billion baht on construction and 3.3 Toyota Motor Corp. and The Secur3DP+ joint venture billion baht on a 30-years land leasing Panasonic Corp. said on May 9 that they will make additive manufacturing a viable contract. The project is expected to be will integrate their housing businesses in option for more companies around the completed in the fourth quarter of 2022 and an expansion of an existing tie-up, as they world, by creating a global 3D-printing will start generating revenue in early 2023. seek to collaborate on “town development” network connecting companies with vetted Raimon Land’s chief executive Lionel Lee for next-generation lifestyles where homes service providers. said that when this project starts operation, and vehicles are connected to the internet. The Singapore-based start-up was the company’s revenue will surge by 30 The companies plan to set up a funded initially by a contribution of seed percent. joint venture on Jan. 7, 2020. Toyota will capital from ISF Incubator. “By the time that One City Centre focus on new mobility services using self- Its system is built on a proprietary is completed, there won’t be a lot of new driving technology, while Panasonic brings blockchain solution for transaction supply in the market. We are confident strengths in developing smart homes security, quality assurance and intellectual that it will generate the revenue of 60 equipped with appliances supported by property (IP) protection, ISF Incubator said million baht per month in the first year and internet and other digital technologies. in a media statement on May 30. increase to 80 million baht per month in the The venture, Prime Life The blockchain-based transaction following years,” he said. Technologies Corp., will bring housing platform simplifies decentralized One City Centre will contain 61 units of both companies under its wing, manufacturing by managing vendor floors with an estimated total rental area including Toyota Housing Corp., Misawa compliance, file transfer, payment and of 61,000 square meters, with about 92 Homes Co. and Panasonic Homes Co. fulfilment. percentmarked out as office space and 8 The move by the leading carmaker Secur3DP+ validates and percentas retail area. The building is to be and electronics manufacturer comes amid authorizes all projects to ensure that the constructed on a prominent land plot on shrinking demand in the domestic housing right products are created and delivered in Ploenchit Road covering a total of 6 rai market due to Japan’s declining population. the most cost-effective way. and 28 square wah (9,712 square metres) The tie-up also deepens the partnership It will also enable start-ups and of space. between the companies. In January they multinational corporations to protect and It will be directly connected to announced a joint venture to build electric track their IP assets. the Ploenchit BTS Station, and surrounded vehicle (EV) batteries that would pool the Secur3DP+ has acquired certain by a host of amenities including a leading R&D and manufacturing strengths of one of patents and patent applications related shopping mall and five-star hotels. Deal Street Asia

6 Economic Cooperation News

Korea, Seek to Duterte and Japanese Prime Bangladeshi counterpart Sheikh Hasina, Strengthen Economic Ties Abe Shinzo agree that the two countries according to Japanese officials. will become more harmonious with the Terrorism is also on the agenda Officials and academics from accession of Emperor Naruhito. after a 2016 attack on a Dhaka cafe that Korea and Cambodia discussed furthering “With the accession of His killed 22 people, including seven Japanese. economic cooperation at a symposium Majesty Emperor Naruhito, there is Abe and Hasina are also expected to take hosted by The Hankook Ilbo and The renewed confidence that Japan’s ties with up the issue of Rohingya refugees, who Korea Times, on June 3. the Philippines – and indeed with the rest fled to Bangladesh to escape a military The event was held as the of the world – will be characterized by crackdown in Myanmar. Moon Jae-in administration is seeking to beautiful harmony,” Duterte said. Japan has offered to assist strengthen economic and political ties with “Today, Prime Minister Abe and I Bangladesh in realizing an early return of countries in Southeast Asia. have rededicated ourselves to the common Rohingya people to Myanmar, the officials Dignitaries attending the event vision of a stable, free, and prosperous said. included ruling Democratic Party of Asian region. Nothing can less be expected The two countries have close Korea floor leader Rep. Lee In-young; when friends closer than brothers meet,” he economic ties with a number of Japanese Seong Kyoung-ryung, chairman of the added. companies operating in the South Asian National Research Council for Economics, The President then noted that since country. Japan exports steel and machinery Humanities and Social Sciences; Chea his last visit here in 2017, there has been a to Bangladesh, which is a major exporter of Samnang, director of Cambodia’s deputy marked increase in the Philippine-Japanese clothes to Japan. prime minister’s Cabinet; and members of engagements “across the full spectrum of Japan views Bangladesh as Cambodia’s National Assembly, Ty Sokhun our relations” that is unprecedented and an important partner as Tokyo seeks to and Yim Leat. must be sustained. facilitate the flow of people and goods “The countries are economic Duterte also said that his seventh by building high-quality infrastructure in partners with a mutually beneficial meeting with Abe was an opportunity the Indo-Pacific region, where China is relationship,” Rep. Lee said at event held to ensure that the ties between the two expanding its influence. at the National Assembly. countries will continue to grow. Nikkei Asian Review He commented that bilateral ties “My meeting with [Prime] have strengthened since a summit between Minister Shinzo Abe was an opportunity Seoul, Manila Announce President Moon Jae-in and Cambodian to ensure that Philippines-Japan ties will FTA Negotiations Prime Minister Hun Sen took place in continue to grow from strength to greater March in Phnom Penh. strength,” he said. South Korea officially announced “The current administration “After all, we are committed to the start of free trade agreement (FTA) is focusing on Southeast Asia, in order the same Strategic Partnership,” he added. negotiations with the Philippines on June to establish a long-term cooperative With the world undergoing profound 3 as part of efforts to strengthen economic relationship for co-development and transformations brought by power shifts, ties with the Southeast Asian country. prosperity,” Seong said in a keynote speech. rapid globalization, and technological During a meeting here, Trade Seong noted Cambodia is a advancement, Duterte said there is a need Minister Yoo Myung-hee and her Philippine strategic partner in economic cooperation to find a new equilibrium. counterpart Ramon Lopez set the goal of given it has recorded an average annual “Our region must be able to completing the free trade negotiations by GDP growth of 7 percent since 2012. maintain its gains so that we can achieve November this year, in tune with South The Cambodian National the promise of an Asian century,” he said. Korea’s summit with the Association Assembly’s Ty said, “After establishing Manila Bulletin of Southeast Asian Nations (ASEAN) relations in 1997, developmental countries here. cooperation has been growing well in many Japan, Bangladesh Leaders Meet to “By removing tariffs and non- aspects.” Discuss Economic Ties, Terrorism tariff barriers, the FTA will also further The Korea Times promote the economic cooperation between The Japanese and Bangladeshi the two countries,” Yoo said. PH, Japan Commit to prime ministers met on May 29 in Tokyo to Trade volume between the two Prosperous Asian Region discuss ways to deepen economic ties and has been expanding sharply over the past cooperate in counterterrorism measures. years, reaching US$15.6 billion in 2018, The Philippines and Japan re- Prime Minister Shinzo Abe is up 67 percent from $9.3 billion posted in dedicate themselves to a common vision of expected to express Japan’s support for 2010, according to Seoul’s trade ministry. a stable, free and prosperous Asian region. infrastructure development along the Bay South Korea’s exports to the In their joint statement after their bilateral of Bengal during the summit with his Philippines reached $12 billion in 2018, meeting, Philippine President Rodrigo up 13.6 percent from a year earlier. The

7 Southeast Asian country is South Korea’s Agency (BelTA) has learned. $1.5 billion in 2018. “Our main markets fifth-largest trading partner among the Aleksandr Turchin said he hopes are the USA and the European Union. ASEAN countries. that the present visit of the Singaporean Since the profitability of companies is over Semiconductors, petrochemical delegation will allow the sides to advance 40%, I would like to suggest investing in goods and automobiles were among major negotiations on signing trade agreements, our companies in the park so that we could export products. In return, South Korea will help business circles establish contacts bring our services to the Southeast Asia mostly imports agricultural products from and come up with concrete projects. market,” Aleksandr Turchin said. the Philippines, the ministry said. Aleksandr Turchin noted that as part of According to the first deputy Aside from its FTA with ASEAN, the Belarusian government he coordinates prime minister, Belarus views Singapore Seoul has been seeking to sign separate matters of bilateral trade and economic as a gateway to push Belarusian goods and deals with individual members for more cooperation with Singapore. “I would services to the vast market of Southeast detailed and customized trade terms. like to invite you to determine several key Asia and the Asian-Pacific region. “In Yonhap News Agency projects we could personally oversee and turn, we invite Singapore to take a look ensure their successful realization,” he at Belarus as a promising point of entry Belarus Invites Singapore to Invest added. to the capacious market of the Eurasian in Hi-Tech Park Companies In particular, the first deputy Economic Union, including taking into prime minister stressed that Belarus is account the forthcoming signing of the Belarus invites Singapore to invest one of the recognized, rapidly growing free trade agreement between Singapore in Hi-Tech Park companies. The proposal leaders in Eastern Europe in the area of and the Eurasian Economic Union,” was put forward by First Deputy Prime high technologies. A special preferential Aleksandr Turchin said. He went on saying Minister of Belarus Aleksandr Turchin regime has been enabled in the Hi-Tech that Belarus wholeheartedly supports as he met with Senior Park by the relevant decree of the head of the signing of the agreement and would for Trade and Industry of Singapore Koh state. Belarus’ export of IT services grows welcome its prompt signing. Poh Koon on 3 June, Belarusian Telegraph by roughly 30-40% every year and reached BelTA

Technology

Gigabyte Invests in OLED for tech featured in the previous Aero 15 also From Sky Farms to Lab-Grown Their New Aero Notebook returns. Shrimp, Singapore Eyes Again, to recap the improvements Food Future being made here, the biggest addition that Gigabyte have made to the formula is the OLED display on the new Aero 15. In addition to offering 4K UHD resolutions and the deeper blacks and sharper contrasts you’d associate with OLED, it’s also X-Rite and Pantone Certified. Gigabyte have also added new An update to the previous Aero HDMI 2.0 and DP 1.4 outputs, an extra Singapore, the tiny Southeast 15 notebook, the Aero 15 OLED features Thunderbolt 3 port and an ultra-fast UHS-II Asian city-state, is an unlikely place for a a prettier display, more ports and improved SD card reader. If you fall into the content farming revolution. thermals. The notebook itself also creator niche that Gigabyte are hoping to With tiered fish farms, vegetable constitutes Gigabyte’s first contribution to seduce with this laptop, these additions will plots atop office buildings and lab-grown Nvidia’s new Studio initiative. probably be appreciated. shrimp, the island aims to beef up its own Although available in a variety of Last but not least, Gigabyte have food production and rely less on imports to spec configurations, Gigabyte’s Aero 15 implemented what they’re calling Supra feed its 5.6 million people. OLED features 9th Gen Intel Core i7 (or Cool 2 cooling. This breaks down into two Singapore produces about 10% i9) processors, up to 32GB of RAM, a 15.6- fans that consists of 71 blades each, 5 full of its food but as climate change and inch Thin Bezel Samsung UHD AMOLED copper heat pipes, 11 intake and exhaust population growth threatens global food display, two M.2 SSD slots, Nahimic 3 3D vents and a touch of Thermal Grizzly’s TG- supplies, it aims to raise that to 30% by Audio, Killer Wi-Fi 6 connectivity and H-001-RS thermal paste. All told, the OEM 2030 under a plan known as ‘30-by-30’. dealer’s choice of either NVIDIA GeForce claim that they’ve managed to increase The challenge is space. RTX 20-series or GTX 16-Series graphics. heat dissipation performance by 30%. With only 1% of Singapore’s 724 The Microsoft Azure AI optimization PC World Continued to page 10

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Fairs & Exhibits in Asia-Pacific

DATES NAME OF FAIR COUNTRY DATES NAME OF FAIR COUNTRY 2019 (Further Information) 2019 (Further Information) 3-5 INTERPHEX Week Japan 2019 (Reed Tokyo 17-19 AI Expo 2019 (Korea Artificial Seoul July Exhibitions Japan Ltd.), Tel: Japan July Intelligence Association, Tel: Korea 81-3-3349-8509, Email: 82-2-2284-0010, Email: [email protected], URL: [email protected], URL: https://www.interphex.jp/en-gb.html) http://www.aiexpo.co.kr/) 3-6 GFT 2019 (Reed Trades Co., Ltd., Tel: Bangkok 17-20 Vietnam ETE 2019 (C.I.S. Vietnam HoChiMinh July 66-2686-7299, Email: Thailand July Advertising & Exhibition Joint Stock City/Vietnam [email protected], URL: Company, Tel: 84-24-3984-4104, Email: https://www.gftexpo.com/) [email protected], URL) 3-6 ARCHIDEX 2019 (C.I.S. NETWORK Kuala 17-19 IMHS2019 (Japan Hospital Tokyo July SDN BHD, Tel: 603-7982-4668, Email: Lumpur / July Association/Nippon Omni-Management Japan [email protected], URL: Association, Tel: 81-3-3403-8615, https://archidex.com.my/) Email: [email protected], URL: https://noma-hs.jp/hs/2019/en/) 4-6 2019 Shenzhen Shenzhen July Fair for Apparel Fabrics and China 17-19 Media + Entertainment Tech Expo Sydney Accessories (Messe Frankfurt (HK) July (Expertise Events, Tel: 61-2-9452-7575, Australia Ltd., Tel: 852-2238-9963, Email: Email: [email protected], [email protected] URL: https://www.metexpo.com.au/) om, Inquiry, URL) 18-21 Elecomp – 25th Iran International Tehran 5-8 2019 TCFB Taichung (Taiwan External Taichung July Exhibition of Electronic, Computer & Iran July Trade Development Council (TAITRA), Taiwan E-Commerce (M&T Solution Co., Tel: Tel: 886-2-2725-5200, Email: 98-21-4291-7000, Email: [email protected], URL: [email protected], URL) https://www.tcfb.com.tw/) 19-21 M’SIA-PLAS 2019 (ES Event Kuala 8-11 HKTDC ( Trade Hong Kong July Management Sdn Bhd, Tel: Lumpur / July Development Council, Tel: China 60-3-9132-1922, Email: Malaysia 852-1830-668, Email: [email protected], URL: [email protected], URL) https://malaysiaplas.com.my/) 10-12 IFLE Vietnam 2019 (Top Repute Co., HoChiMinh 23-24 GMIC Beijing 2019 (GWC, Tel: Beijing July Ltd., Tel: 852-2851-8603, Email: City/Vietnam July 86-10-8252-5377, Email: China [email protected], URL: [email protected], URL: https://toprepute.com.hk/ifle-vietnam/) https://www.thegmic.com/) 10-12 PP+S 2019 (BizLink Exhibition Services Singapore 24-26 PhilAuto2019 (AMB Tarsus Events Manila July Pte Ltd., Tel: 65-6848-5938, Email: Singapore July Group Sdn Bhd., Tel: 603-2692-6888, Philippines [email protected], URL: Email: [email protected], URL: https://printpacksign.com/) http://www.philauto.org/) 10-12 PV2019 Photovoltaic Solar Exhibition Yokohama 24-27 FOOD & HOTEL 2019 (PT Jakarta July & Forum (Fuji Sankei Businesses-I, (Kanagawa) July Pamerindo Indonesia, Tel: Indonesia CNT Inc., Tel: 81-3-5297-8855, Email: Japan 65-6233-6777, Email: [email protected], URL) [email protected], URL: https://www.foodhotelindonesia.com/) 11-13 Electronic Appliance Expo 2019 Dhaka July (Savor International Limited, Tel: Bangladesh 25-28 Bio ASIA – Taiwan Exhibition 2019 Taipei 88-2-9853-016, Email: July (Chan Chao International Co., Ltd., Tel: Taiwan [email protected], URL) 886-2-2659-6000, Email: [email protected], URL: 11-13 Phnom Cambodia International ICT & Mobile https://expo.bioasiataiwan.com/en/) July Expo 2019 (Twin Goat Exhibition & Penh / Trading Co., Ltd., Tel: 855-10-792242, Cambodia 26-28 23rd Medicall (Medexpert Business Chennai Email: [email protected], Inquiry) July Consultants Pvt Ltd., Tel: India 91-7305789789, Email: 17-19 Jakarta INDO WASTE 2019 Expo & Forum [email protected], URL: July (PT. Napindo Media Ashatama, Tel: Indonesia https://www.medicall.in/) 62-21-8650-962, Email: [email protected], URL: http://www.indowaste.com/)

9 Technology sq km (280 sq miles) land area devoted “It is too unpredictable to do He said that he was pleased to be to agriculture and production costs higher things now in the traditional way,” said able to share the systems and technology than the rest of Southeast Asia, the pressure Apollo CEO Eric Ng, citing problems with he developed over the years with regional is on new urban farmers to answer the algae blooms in recent years that have stakeholders in the aquaculture industry. government’s call to “grow more with wiped out farmers’ fish stocks. After the ceremony, the less”. Reuters 82-year-old said that he hoped the “Whenever I talk about food Taiwanese government would focus security in Singapore, I tell folks don’t Shrimp Expert Wins on the development of agriculture and think land - think space. Because you can Nikkei Asia Prize aquaculture, alongside the information go upwards and sideways,” said Paul Teng, technology industry. a professor specializing in agriculture at Known in Taiwan as the “father of Nanyang Technological University. prawn farming,” Liao was nominated for Sustenir Agriculture is one of the Nikkei Asia Prize by Yoshimatsu Takao, more than 30 vertical farms in Singapore, a professor at Japan’s Mie University. which has seen a doubling in so-called sky One member of the panel of farms in three years. judges said that grass prawns, Thai shrimp The hydroponic farm grows non- and mullet roe are common ingredients on native varieties like kale, cherry tomatoes dining tables in Japan, all because of Liao’s and strawberries indoors under artificial Academia Sinica fellow and National research efforts. lights and sells the produce to local Taiwan Ocean University lifetime Liao has made a great contribution supermarkets and online grocers. distinguished professor Liao I-chiu poses to the development of the aquaculture Sustenir raised S$22 million ($16 with the Nikkei Asia Prize he received in industry, not just in Taiwan, but in the wider million) from backers including Singapore Tokyo on May 30. region and has also earned the title “father state investor Temasek and Australia’s Liao I-chiu, a Taiwanese expert in of aquaculture in Asia,” said Matsumoto Grok Ventures last year, which will be used shrimp farming, was on May 29 awarded Hiroshi, head of Japan’s National Institute for an expansion in Singapore and opening the prestigious Nikkei Asia Prize at a of Physical and Chemical Research. in Hong Kong. ceremony in Tokyo for his contribution to Liao was born in Japan to Temasek is also providing funds the development of aquaculture in Asia. Taiwanese parents, who returned home to Apollo Aquaculture Group which is In his acceptance speech, Liao, when he was four years old. He grew up in building a S$70 million highly-automated, who won in the science and technology what is now Taichung’s Fengyuan District eight-storey fish farm. Apollo says the new category, said that he was grateful for the and went to the University of Tokyo in farm will deliver more than a twenty-fold scholarship he received as a young man to 1962, where he earned a doctorate in increase in its annual output of 110 tonnes study in Japan. agriculture. of fish. Taipei Times

Policy Updates

Hong Kong raise tariffs on US$200 billion worth of Chinese goods from 10 percentto 25 percent on May 10 and tit-for-tat Chinese Hong Kong Property Deals Jump tariffs on US$60 billion of US goods from to 22-year High as Investors Spend June 1, could put the brakes on buying, US$43.8b in First Five Months of resulting in up to 40 percentfewer deals this 2019, but Outlook Cloudy month compared to last month. “The sharp increase in transaction Property transactions in Hong value was mainly due to the strong sales of Kong in the first five months of the year Hong Kong’s property sector continued to new flats,” said Buggle Lau, chief analyst rose to the highest level since 1997, with attract massive investments from buyers at Midland Realty. buyers splashing out HK$343.7 billion in the January to May period. Photo: Homebuyers spent about (US$43.8 billion) on homes, car parks, Dickson Lee HK$121.8 billion on new flats in the first shops and industrial and office units, data five months, up 47.6 percentfrom the same from the Land Registry showed on June 4. an escalation in the US-China trade war, period in 2018. But Ricacorp Properties believes which saw US President Donald Trump South China Morning Post

10 Policy Updates

India squeeze and pressure on government The data were closely watched for finances. any signals a planned sales tax rise could Financial Times be delayed. Modi Gives Sitharaman Job of The surprise expansion in the Reviving India’s Economy official GDP figure was fueled mostly by Indonesia imports falling faster than exports. Imports slid 4.6% - the biggest fall Indonesia Posts Widest Ever Trade in a decade, according to Reuters - while Deficit in April exports dropped more than a 2.4%. “The surprising resilience of the Indonesia posted its widest economy at the start of the year means monthly trade deficit in history in April as that GDP growth will be stronger this year exports slumped, while the pace of fall in than we had anticipated,” senior Japan Nirmala Sitharaman imports were slower than expected, data economist at Capital Economics Marcel from the statistics bureau showed on May Thieliant said. India’s economy slowed sharply 15. Mr Thieliant also said that in the first quarter of this year, underlining The resource-rich country booked following the better-than-expected growth the challenge facing Narendra Modi at the the first deficit in three months at US$2.5 figures Japan “will press ahead with the start of his second term as prime minister billion in April, and it was the widest ever, sales tax hike scheduled for 1 October”. following a landslide election victory. according to Refinitiv Eikon data. Some policymakers have called The government on May 31 said This compared with a median for a delay to the sales tax increase from gross domestic product expanded 5.8 forecast of US$500 million deficit in a 8% to 10% given a backdrop of uncertain percent in the first three months of the year, Reuters poll and a US$671 million surplus domestic and global economic conditions. compared with the same quarter last year, a month before. BBC News down from 6.6 percent in the final quarter April exports were down 13.10 of 2018. The figure missed analysts’ percent on an annual basis at US$12.60 expectations of 6.3 percent growth. billion, led by a drop in shipments of refined Korea For the financial year ending oil and natural gas products. The poll had March 30, India’s GDP grew 6.8 percent estimated a 7.15 percent contraction. S. Korea to Switch Tax Scheme — its slowest pace in five years and down Exports of Indonesia’s main on Beer from 7.2 percent the previous year. commodities, coal and palm oil, also sank. The weaker-than-expected Imports fell 6.58 percent from a year earlier South Korea on June 5 decided economic performance means India has to US$15.10 billion, versus a 12.1 percent to alter the tax system on beer for the first fallen behind China, which has also entered drop expected in the poll. time in half a century in a move to address a phase of slowdown but expanded 6.4 South-east Asia’s largest economy imbalances in taxes between imported and percent in the first quarter. It highlights the has for several months seen its exports and domestic beer, the finance ministry said. challenges Mr Modi’s new government imports declining on-year, following a The change -- the first since 1968 faces after an election in which India’s worldwide trend of weaker external trade -- calls for a tax system based on amount young, aspirational population placed its due to global economic slowdown and the rather than an ad valorem, a charge levied overwhelming confidence in the premier as US-China trade war. on prices of beer, according to the Ministry a leader able to modernize India. Reuters of Economy and Finance. On May 31, Mr Modi appointed Currently, South Korea imposes former defense minister Nirmala Japan a 72-percent liquor tax on beer. But Sitharaman as . Ms the tax base for domestic beer includes Sitharaman — who has a masters degree manufacturing costs, profit as well Japan Economy Beats in economics and briefly served as junior as selling, general and administrative finance minister and commerce minister Expectations of Slowdown expenses. in Mr Modi’s first term — succeeds Arun In contrast, for imported beer, the Jaitley, the corporate lawyer who has The economy grew at an tax base is only import prices, which do not bowed out from a cabinet role due to health annualized 2.1% in the period, preliminary include any other costs. problems. gross domestic product (GDP) data In 2018, the average liquor tax for India’s first female finance showed. domestic beer was estimated at 848 won minister since Indira Gandhi will tackle That beat analyst expectations for (US$0.70) for a liter while that of imported challenges ranging from weak exports and a 0.2% contraction, as imports fell faster beer is believed to be 709 won. tepid private investment to a rural income than exports. The imbalances have led to an

11 Policy Updates increased share of imported beers in South the general trend across Asia, with PMI Korea in recent years. Imported beers reports on June 3 showing another slump are estimated to have accounted for 20.2 from export powerhouses Japan and South percent in the local beer market in 2018, up Korea. from 8.5 percent in 2015. Bloomberg Yonhap News Agency Taiwan The consumer price index rose Malaysia 3.2 percent in May, faster than the previous month’s 3.0 percent and above the 2.9 Taiwanese Firms Pledge to Boost Malaysia Makes First Rate Cut percent forecast in a Reuters poll. Domestic Investment: Economists since 2016 to Spur Growth It was the first time since September 2018 that inflation has An increase in Taiwanese Malaysia’s on May 7 accelerated but the outcome was within the companies operating overseas that cut its benchmark interest rate for the first central bank’s 2.8 -3.6 percent projection have pledged to invest in Taiwan amid time since July 2016, seeking to support for the month. escalating trade tension between the the economy as global risks mount. May inflation brought the average and China is expected to Bank Negara Malaysia reduced rate in the first five months of the year to boost domestic investment to offset the the overnight policy rate by a quarter 3.6 percent, within the central bank’s 2-4 impact of weakening global demand, local percentage point to 3 percent, as predicted percent target for the year. economists said on June 3. by 14 of 23 economists surveyed by Core inflation, which strips Kamhon Kan, head of the Institute Bloomberg. The rest forecast no change. out volatile food and fuel items, was of Economics at Academia Sinica, Taiwan’s Malaysian policymakers are 3.5 percent, picking up from April’s 3.4 highest academic research institute, said he bracing themselves for slower growth as percent. Inflation on a month-on-month is confident that the pledged investment exports take a knock from weaker global basis was 0.2 percent. plans will be realized and will facilitate demand and rising trade tensions. Business Times local economic growth. The central bank is forecasting Kan said their investments are expansion of 4.3 percent to 4.8 percent Singapore expected to enter the local property market this year, lower than the government’s for buying land for factories or production equipment for future operations, which is projection of 4.9 percent. Singapore PMI Drops Below 50 The bank said: “There are expected to lead other sectors in the local for First Time in Almost 3 Years economy to invest to meet rising demand downside risks to growth from heightened uncertainties in the global and domestic from returning Taiwanese firms. Singapore’s purchasing managers The comments came after the environment, trade tensions and extended index slumped in May, signaling a weakness in commodity-related sectors.” Ministry of Economic Affairs (MOEA) contraction in manufacturing as trade reported last week that a total of 66 Asian central banks are moving to tensions and a global slowdown weigh on more dovish stances after the US Federal Taiwanese firms have promised to invest the city state’s economy. more than NT$330 billion (US$10.49 Reserve put the brakes on rate hikes and The PMI declined to 49.9 last growth outlooks soured. billion) so far this year under a government month, dropping below 50 for the first time incentive program. Malaysia is the second Asian since August 2016, according to data from nation after India to lower interest rates this The pledges are expected to create the Singapore Institute of Purchasing and 31,300 new jobs in the local market, the year. Materials Management. The electronics Straits Times MOEA said. sub-index fell to 49.4, its weakest level Central News Agency since June 2016. A reading of 50 marks Philippines the dividing line between expansion and contraction. Thailand Philippines May CPI rises 3.2%, A slowing electronics cycle has weighed on the overall index since last Thai Shippers Slash 2019 Export Above Estimates year. The outlook is worsening as the U.S.- Growth Forecast to 1% from 3% China trade war escalates and President Philippine annual inflation Donald Trump threatens countries like Thailand’s shipping body on June quickened in May for the first time in eight Mexico with higher tariffs, putting the 4 said it had cut its 2019 export growth months due to a rise in food and utility global economy at risk. forecast for a second time in a month, to prices, the government’s statistics agency Singapore’s data are in line with 1% from 3%, as global demand slows amid said on June 5. mounting trade protectionism.

12 Policy Updates

Vietnam according to the Ministry of Trade and Industry. Vietnam a Rising Asian Robust growth in private investments and its manufacturing industry, Powerhouse: DBS Report particularly the electronics cluster, and competitive wages have propelled Vietnam’s economic rise, the report noted. DBS senior economist Irvin Seah The Thai National Shippers’ Council cuts said: “Policymakers are now focusing its 2019 export growth forecast from 3% on longer-term economic stability and to 1 %. (Bangkok Post photo) sustainability, rather than the pace of growth per se.” Exports, a key driver of Southeast Vietnam is the second largest Asia’s second-largest economy, declined electronics exporter in Asean, the report 1.86% in January-April from a year earlier, Vietnam’s wages, which are among the lowest in Asean, have helped to draw stated. customs data showed. “In less than a decade, Vietnam A global economic slowdown companies and factories.PHOTO: AGENCE -PRESSE has leapfrogged ahead of some of the more had affected consumers’ purchasing power established electronics manufacturing hubs Vietnam is a growing heavyweight while a prolonged U.S.-Sino trade dispute to become the second largest... within in Asia, and companies and investors could had disrupted supply chains, Ghanyapad Asean, just marginally behind Malaysia.” focus on this bright spot as uncertainties Tantipipatpong, chairwoman of the Thai Its surge in popularity was partly cloud the global economic outlook, a DBS National Shippers’ Council, said in a due to a structural shift in the regional Bank report said on May 29. statement. electronics supply chain, the report pointed The South-east Asian country’s In May, the group cut its export out, adding that Vietnam has captured economy grew by 7.1 percent last year, growth estimate for this year to 3% from market share from many of its peers. 5%, while the state planning agency making it the fastest growing in Asean. lowered its forecast to 2.2% from 4.1%. By comparison, Singapore’s Straits Times Last year, Thai shipments rose 6.7 percent. economy grew by 3.1 percent last year, Reuters

About CACCI

The Confederation of Asia-Pacific Chambers of grown into a network of national chambers of commerce with Commerce and Industry (CACCI) is a regional grouping of apex a total now of 29 Primary Members from 27 countries in the national chambers of commerce and industry, business associations region. It cuts across national boundaries to link businessmen and and business enterprises in Asia and the Western Pacific. promote economic growth throughout the Asia-Pacific region. It is a non-governmental organization (NGO) serving as As an NGO, CACCI is granted consultative status, a forum for promoting the vital role of businessmen in the region, Roster category, under the United Nations. It is a increasing regional business interaction, and enhancing regional member of the Conference on NGOs (CoNGO), an economic growth. Since its establiment in 1966, CACCI has association of NGOs with UN consultative status.

Published monthly by the Secretariat, Confederation of Asia-Pacific Chambers of Commerce and Industry Ernest Lin, Director General; Amador R. Honrado, Jr., Editor, Jacqueline Uy, Associate Editor Wendy Yang, Contributing Editor; Teresa Liu, Assistant Editor 7F-2, No. 760, Sec. 4 Bade Road, Taipei 10567, Taiwan; Tel: (886 2) 2760-1139; Fax: (886 2) 2760-7569 Email: [email protected]; Website: www.cacci.biz

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