CACCI Profile Confederation of Asia-Pacific Chambers of Commerce and Industry
Vol. XLIII, No. 3 March 2020 The 2020 CACCI Conference to be CACCI Invited to the Joint Held in Taipei in October Business Council Meetings of ASEAN BAC in Danang, Vietnam
The Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI) has been invited to attend the first meeting for 2020 of the Joint Business Councils (JBC) of the ASEAN Business Advisory Council (ASEAN-BAC) to be held on April 7 in Danang, Vietnam. CACCI will participate in the meeting as an Associate Member of JBC. The 34th CACCI Conference will be held on October 29- The ASEAN-BAC was established by the ASEAN 30, 2020 in Taipei, Taiwan. This year’s gathering will be jointly Heads of State and Government at the 7th ASEAN Summit in hosted by the Chinese International Economic Cooperation November 2001 in Bandar Seri Begawan, Brunei Darussalam. Association, Taiwan (CIECA) and the Chinese National Launched in April 2003, ASEAN-BAC was set up with the Association of Industry and Commerce, Taiwan (CNAIC). mandate to provide private sector feedback and guidance to Relevant information – e.g., Tentative Program, hotel boost ASEAN’s efforts towards economic integration. Aside accommodation, registration procedure, etc. – will be sent to from providing private sector feedback on the implementation members as soon as these are available. In the meantime, members of ASEAN economic cooperation, the Council also identifies are requested to already block the dates in their calendar of events priority areas for consideration of the ASEAN Leaders. this year. Continued to page 2
In this Issue:
• CACCI Council Approves Governance • Productivity Growth an Urgent Priority: Framework for All Product and Service Australian CCI ...... 7 Councils ...... 2 • TOBB and Djibouti Chambers • ICC Launches Centre for Entrepreneurship .. 3 Meet in Ankara ...... 8 • CACCI Invited to Attend the CoNGO RCAP • UNCTAD Reports on Impact of the Corona Meeting in Bangkok on May 22-23 ...... 3 Virus Outbreak on Global FDI ...... 8 • What are Key Changes in Incoterms® 2020 .. 4 • IMF Urges Governments to Roll Out • TOBB Meets with German and Austrian Aggressive Support Measures for Virus- Investors in Turkey ...... 5 Affected Global Economy ...... 8 • The Ceylon Chamber’s Outlook 2020 Report • COVID-19 Outbreak to Have Significant Explores the Year Ahead ...... 5 Economic Impact on Developing Asia: ADB 9 • MNCCI Successfully Conducts CACCI • Member Personalities ...... 10 Foundation-Funded Training Program for • Product and Service Councils ...... 11 Women in Cosmetic Industry ...... 6 • Investment & Joint Ventures in the Region 12 • Ceylon Chamber Identifies Afghanistan as a • Economic Cooperation News ...... 14 Potential Market to Further Expand Business • Technology ...... 15 with Sri Lanka ...... 7 • Policy Updates ...... 16
1 Accordingly, ASEAN-BAC’s business associations in Asia, CACCI is in activities are primarily focused on a position to make significant contribution reviewing and identifying issues to facilitate to the work of the Joint Business Council and promote economic cooperation and and the ASEAN-BAC in identifying integration. To help them in this regard, issues to facilitate and promote economic the ASEAN-BAC invites a number of cooperation and integration. joint business councils with interest in For 2020, the JBC is scheduled to ASEAN (e.g., ASEAN-US Business have the opportunity to provide inputs to hold two meetings in preparation for the Council, ASEAN-India Business Council, the recommendations that the ASEAN- ASEAN Summit Meeting in November Australia-ASEAN Business Council, etc.) BAC will present to the ASEAN Leaders. 2020 in Hanoi. The first JBC meeting is to attend regular meetings for dialogues In his Letter of Intent to the ASEAN- the upcoming April 7 meeting in Danang, and exchange of ideas on how to improve BAC Chairman Mr. Arin Jira from and the second one in August, in Hanoi. regional cooperation. Thailand, CACCI President Mr. Samir CACCI was formally accepted as Associate As Associate Member of the Modi pointed out that, as a regional Member of the JBC during the May 3, Joint Business Council, CACCI is invited organization composed mostly of apex 2019 meeting of the ASEAN BAC held in to join these regular dialogues, and will chambers of commerce and industry and Manila, Philippines.
CACCI Council Approves Governance Framework for All Product and Service Councils
As part of efforts to further strengthen • finding solutions to common problems the CACCI Product and Service Councils • working out specific programs to accelerate regional (PSCs) and make them more effective and cooperation, particularly in the area of trade, investment, efficient platforms for regional cooperation technology transfer, capital flow, and the exchange of in various industry and service sectors, the information; and CACCI Council has approved a Resolution to • exploring opportunities for business cooperation and joint adopt a Governance Framework and Terms of venture, and initiating and completing business deals. Reference that would apply to all CACCI PSCs. There are currently eleven PSCs that are operating The adoption of the Governance Framework and within the CACCI umbrella. These include the following: Terms of Reference applicable to all PSCs aims to establish and - Asian Textiles and Garments Council (ATGC) perpetuate the efficiency in the PSCs’ ability to meet its goals, and - Asian Council on Tourism (ACT) even their public relations and perceptions, as well as help define - Asian Chemical Industry Council (ACIC) the role of those in leadership positions, delineate duties, and help - Asian Council on Food and Agriculture (ACFA) prevent duplicated efforts and the overlooking of critical issues. - Asian ICT Council (AICTC) It is also important in preserving and strengthening stakeholder - SME Development Council (SMEDC) confidence, providing the foundation for a high-performing - Asian Council on Health and Education (ACHE) organization, and ensuring the organization is well placed to - Asian Council on Contracting and Construction (ACCC) respond to a changing external environment. - Asian Council on Water, Energy and Environment The PSCs have been established with the primary aim of (ACWEE) promoting greater business interaction among CACCI members - CACCI Women Entrepreneurs Council (CWEC) who are in the same product or service line. Membership in the - Young Entrepreneurs Group Asia Pacific (YEGAP) PSCs will provide businessmen regular forum for: Two others – the Asian Bankers Association (ABA) and • networking the Council of Asia-Pacific Furniture Associations (CAPFA) – • identifying and addressing issues affecting their respective have grown big enough and are now operating independently of sectors CACCI.
2 ICC Launches Centre for Entrepreneurship
challenges. The Centre will enlist specific support from the following stakeholders: • Corporate leaders from the ICC membership The International Chamber of Commerce (ICC) • Chambers of commerce in over 100 countries has recently announced the launching of the ICC Centre for • International organisations and multilateral development Entrepreneurship (ICC-CE), “a groundbreaking ICC initiative banks that will prepare and mobilise the next generation of entrepreneurs • Academic institutions and business schools > Technology and business leaders across the world.” The ICC-CE, says ICC, partners, notably in the field of education and will expand ICC’s membership across the globe, connect ICC community engagement > Entrepreneur support networks with young entrepreneurs, start-ups and drive innovative and For more information, interested parties may contact any purpose-led businesses under the umbrella of our Lead for the of the following: John W.H. Denton AO, Secretary General, john. Long Term campaign. [email protected]; Quinlan Carthane, Chief of Staff, quinlan. Through the ICC-CE, the ICC aims to leverage ita global [email protected]; or Julian Kassum, Global Membership influence and network to: (i) develop skills for young people who and Services Director, [email protected] face uncertain employment prospects and (ii) help catalyse local entrepreneurship through deeper collaborations with companies, chambers of commerce and technology partners. The ICC-CE will serve as a flagship initiative to prepare and mobilize the next generation of entrepreneurs, from CACCI Invited to Attend the developing skills of young people who face uncertain employment CoNGORCAP Meeting in Bangkok prospects, to helping catalyse local entrepreneurship and the jobs of the future through deeper collaborations with companies, on May 22-23 chambers of commerce and technology partners. Building on a wealth of existing initiatives undertaken by chambers of commerce and other organizations to support entrepreneurs, the Centre will support projects on a global scale and connect local markets with small, medium and large-sized businesses from around the world. Under the umbrella of ICC’s The Confederation of Asia-Pacific Chambers of campaign to Lead for the Long Term, the Centre will champion Commerce and Industry (CACCI) has once again been invited the role of entrepreneurs in delivering the UN 2030 Agenda and to attend the upcoming meeting of the Regional Committee in the Sustainable Development Goals (SDGs), and harness their Asia-Pacific (RCAP) of the Conference of NGOs in Consultative innovation and creativity for the development of disruptive and Relationship with the United Nations (CoNGO) to be held on purpose-led business models. May 22-23, 2020 in Bangkok, Thailand. The Centre will welcome and actively pursue To be chaired by CoNGO President Mr. Liberato partnerships with innovative organisations to ensure the most Bautista and co-chaired by CoNGO First Vice President Mr. dynamic, regionally relevant approaches are incorporated while Cyril Ritchie, the two-day meeting will examine case studies by minimising the need for ICC to “reinvent the wheel”. NGOs/CSOs on implementation (regional, national, local) of the To achieve these aims, the Centre will initially focus on six Sustainable Goals (SDGs 4, 8, 10, 13, 16, 17) that are to be the following areas: reviewed at the UN High Level Political Forum (HLPF) at the • Championing the corporate-startup relationship through United Nations Headquarters in New York in July 2020. key initiatives to promote open innovation and linking Founded in 1948, CoNGO is an independent, corporate buyers/investors with local entrepreneurs international, non-profit membership association of non- • Pairing young entrepreneurs with subject-matter experts governmental organizations (NGOs). It facilitates the from across ICC’s geographical and industry base, who participation of NGOs in United Nations debates and decision- will provide support, guidance and feedback through making. CoNGO is most active at the major UN centres of New virtual mentoring and coaching York, Geneva and Vienna but its work stretches out to all regions • Running a series of ICC Talks with entrepreneurs, of the world. CACCI, which was granted Consultative Status with chambers of commerce, companies, banks, governments the ECOSOC under the United Nations in 1970, joined CoNGO and international organisations to collectively address in 1979. challenges to the realisation of economic opportunities in CoNGO and RCAP are committed to Agenda 2030 and to emerging and developing markets mobilization and action to achieve the Sustainable Development • Leveraging digital connectivity and solutions to create a Goals (SDGs). Since the adoption of the 17 SDGs by the United highly scalable model with regional focal points Nations General Assembly in September 2015, NGOs and CSOs that will allow for tailored programmes to address priority throughout the world – including those in the Asia-Pacific region
3 – have set to work to make the Goals meaningful or more of the above six SDGs. The participating to the populations they serve, working in concert NGOs/CSOs were requested to focus their discuss with governments, communities, academia and good practices, such as what initiatives have other stakeholders. NGOs/CSOs advocate with worked, what cooperation mechanisms with other governments at national and local level to achieve stakeholders have proven valuable; as well as core meaningful commitment to implementation of the challenges, such as what impediments have arisen Goals. in cooperation and outreach; and lessons learned, The HLPF reviews each July the progress including what new mobilization actions and and the gaps on achieving the SDGs. This is done on a rotation channels are needed and/or foreseen to make progress on SDG basis, and in 2020 the HLPF will review the following Goals: implementation. The presentations on each of the six SDGs to be made a. Quality Education at the Bangkok meeting of the RCAP would serve as the focus b. Decent Work and Economic growth of analysis, lessons learned, and new cooperation – whether at c. Reduced Inequalities country or regional level. Following the RCAP session in Bangkok, d. Climate Action CoNGO is expected to produce a synthesis which will be fed e. Peace, Justice and strong institutions into the 2020 HLPF. On an ongoing basis, all of these processes f. Partnerships for the Goals would serve also to enhance NGO/CSO relationships with and input to the UN Economic and Social Council for Asia and the NGOs/CSOs throughout the Asia-Pacific are working in Pacific (UN ESCAP), the prime regional intergovernmental body many different ways and at many different levels on the six SDGs promoting the SDGs. taking account of existing interactions and up for review at this year’s HLPF. Thus for the Bangkok Meeting structures linking NGOs/CSOs with ESCAP, CoNGO hopes that of RCAP on May 22-23, CoNGO has invited a wide range of Asia- the May 2020 meeting of RCAP in Bangkok would further foster Pacific NGOs/CSOs to present and discuss their substantive on- long-term and enhanced cooperation. the-ground experience in advocating for and implementing one
What are Key Changes in Incoterms® 2020
Which Incoterms rule should I use? Where are the costs listed in Incoterms® The latest edition of the Incoterms® 2020? rules features an in-depth introduction to help Within Incoterms® 2020, all costs users select the appropriate Incoterms® rule associated with a given Incoterms rule now for their sale transaction. The introduction appear at article A9/B9 of that rule, allowing explains the purpose and use of the Incoterms® users to see the full list of expected costs at rules, identifies differences between Incoterms® 2010 and a glance. In addition to the aggregated presentation, the costs Incoterms® 2020, outlines best practice for incorporating the associated with each item – for example, carriage (article A4/B4) Incoterms® rules into contracts and explores the relation of or export clearance (article A7/B7) – still appear in the respective contracts ancillary to the sale contract, the concepts of risk and articles to accommodate a user who wants to focus on a specific delivery, the role of the carrier, and the care to be taken when aspect of the sale transaction. using variants of the Incoterms® 2020 rules. Incoterms® 2020 also incorporates expanded explanatory notes What are the different levels of insurance coverage in CIF for users at the start of each Incoterms® rule. These explanatory and CIP? notes assist users with accurately interpreting the latest edition The Incoterms 2020 rules provide for different levels of of the Incoterms rules to avoid costly misinterpretations or insurance coverage in the Cost Insurance and Freight (CIF) rule misapplications. and Carriage and Insurance Paid To (CIP) rule. Under the CIF Incoterms® rule, which is reserved for Why has the FCA Incoterms rule been revised? use in maritime trade and is often used in commodity trading, the Free Carrier (FCA) has been revised for Incoterms® Institute Cargo Clauses (C) remains the default level of coverage, 2020 to cater to a situation where goods are sold FCA for carriage giving parties the option to agree to a higher level of insurance by sea and buyer or seller (or either party’s bank) requests a bill cover. Taking into account feedback from global users, the CIP of lading with an on-board notation. FCA in article A6/B6 now Incoterms® rule now requires a higher level of cover, compliant provides for the parties to agree that the buyer will instruct the with the Institute Cargo Clauses (A) or similar clauses. carrier to issue an on-board bill of lading to the seller once the goods have been loaded on board, and for the seller then to tender How does Incoterms® 2020 account for arranging carriage? the document to the buyer (often through the banks). Incoterms® 2020 recognises that not all commercial trade transactions from the seller to the buyer are conducted
4 by a third-party carrier. In some cases, more detailed security-related obligations Place Unloaded (DPU) to emphasise that transactions are conducted without a third- in articles A4 on carriage and A7 on export/ the place of destination can be any place party carrier at all, such as a seller using import clearance of each Incoterms® rule. and not just a “terminal,” and to underscore its own means of transportation, or a buyer Costs relating to these requirements also the sole difference from Delivered at Place using its own vehicle to collect goods. appear in the consolidated costs article, A9/ Unloaded (DPU) – under DAP the seller B9. does not unload the goods, under DPU, Where is information on security-related seller does unload the goods. requirements? Is the Incoterms rule DPU new? And since delivery under DAP Building on the extensive No, simply renamed and moved happens before unloading, Incoterms® security-related requirements established to more accurately reflect the content of 2020 presents the newly named DPU after by Incoterms® 2010, the latest edition of the rule. The former Delivered at Terminal DA. the Incoterms® rules includes clearer and (DAT) has been changed to Delivered at Internatinal Chamber of Commerce
TOBB Meets with German and Austrian Investors in Turkey
The Union of Chambers and company which invests in our country as one Commodity Exchanges of Turkey (TOBB) of our own. Be sure to relay to us any of the & German-Turkish Chamber of Industry problems which you encounter.” and Commerce (AHK) & Advantage AHK Turkey President Dr. Marcus Austria Reception, which brought together Slevogt said that they want to create a network representatives of German and Austrian here, especially in the field of education. companies investing in Turkey, was recently Slevogt said that they visited Ankara 1st OIZ held at the TOBB Twin Towers. and were very pleased, “As the chamber, Speaking at the reception, TOBB we want to address two issues. The first is Board Treasurer Faik Yavuz stated that as TOBB, they put great vocational training, the second is the subject of the Customs importance on improving relations with Germany and Austria. Union. We know that where there is trade, communication and Underlining that the investment process is a difficult and long peace exist.” process, Yavuz thanked the companies which invest in Turkey. Advantage Austria Ankara Director Dr. Christian Maier Faik Yavuz emphasized that new investments should now pave also noted that there is significant trade cooperation between the way for employment and growth. Turkey and Austria, noting that their country has about 300 TOBB Board Treasurer Faik Yavuz said, “We see every subsidiaries in Turkey.
The Ceylon Chamber’s Outlook 2020 Report Explores the Year Ahead
report provides a review of the economy’s performance, and of each sector’s perspectives on the year ahead. Delivering the welcome address during the launching of the Report at Economy + Sector Review and Outlook 2020 event held on February 10, 2020, Chamber Secretary General and CEO Mr. Manjula de Silva pointed out the need to have a growth rate of close to 7% over the next five years, in order to make a difference. Presenting the Outlook 2020, Chamber Chief Economist Mr. Shiran Fernando reiterated that growth was a constant theme which emerged when compiling the Outlook 2020 report. Sri Lanka’s economic growth, he said, would surpass 3.5% in 2020, with a substantial part of that being driven by consumption. The The Outlook 2020 report, published by the Economic key takeaways of the report are as follows: Intelligence Unit (EIU) of the Ceylon Chamber, explores the • Global outlook improves, but is fragile macroeconomic and sector outlook for the year ahead. The • Economic growth VS stability – acceleration in growth sectors covered include apparel, consumer durables, FMCG, could come at the cost of stability tourism, construction, agriculture, plantations and dairy, • Key structural reforms need to be implemented in order to following interviews conducted with experts in each sector. The sustain growth momentum
5 • Better performance in key sectors is Governor of the Central Bank of Sri Lanka; Executive and Country Head of Fitch expected in 2020 Mr. Dumith Fernando, Chairman of Asia Ratings Lanka. The presentation and launch was Securities; Ms. Subhashini Abeysinghe, To obtain a copy of the report, followed by a panel discussion comprising Research Director at Verite Research; interested parties may email saumya@ Deshamanya Professor W.D. Lakshman, and Mr. Maninda Wickramasinghe, Chief chamber.lk.
MNCCI Successfully Conducts CACCI Foundation-Funded Training Program for Women in Cosmetic Industry
The Mongolian National Chamber to establish close networking with cosmetic manufacturers, of Commerce and Industry (MNCCI) academic institutions and scientific institutions. The trainees and has successfully completed the CACCI the trainors agreed on the need to establish database of commonly Foundation-funded training program used imported ingredients and locally available ingredients. They designed for women in cosmetic industry. also stressed the importance of more practical training in the Conducted in-house at MNCCI and at workplace. the Corporate Hotel in Ulaanbaatar, the training program was held from January 10 to January 24 and was attended by 30 trainees, of whom 28 were women and two were men. The MNCCI project is the beneficiary of a US$5,000 grant from the CACCI Foundation. Named “Empowering Women Entrepreneurs in Cosmetic Industry,” it is primarily aimed at strengthening the capacity of female-owned cosmetic companies by conducting training to some 200 employees (both women and men) of the 30 Mongolian companies engaged in the manufacture of end-use cosmetics. The subjects covered by the training program included For its future plans, the MNCCI said that Mongolia has the following: (a) Hygiene and general requirements for the a great variety of natural resources that can be used to produce cosmetic industry; (b) Selection of raw materials for cosmetics natural ingredients for cosmetic products. “But still, we have and methods of suppressing the smell of ram material of challenges of limited access to new processing technologies, animal origin; (c) Physical and chemical structure of vegetable and most of the companies engaged in the cosmetic industry are and animal fats and properties; (d) Animal fat and vegetable start-ups. For cosmetic manufacturers and raw material suppliers, oil processing methodology; (e) Antioxidant raw materials in they need more practical training in the workplace. This time, we Mongolia and their usage in the cosmetic industry; (f) Chemicals just organized in-house training. In the future, we would like to used in cosmetics; (g) EU market entry using requirement export establish a common factory equipped with testing and laboratory system equipment in order to advance R&D and processing technology for cluster members. “In March or April, after the Coronavirus quarantine period is over, we are planning to organize the biggest cosmetic factory visit program including cosmetic manufacturers and raw material suppliers in order to share good manufacturing practice locally…Moreover, if we could solve the financial issue, we would like to organize on-site factory visits abroad in order to study the experience of the complex raw material process at the overseas leading cosmetic manufacturing companies in Korea, EU member countries and elsewhere to receive training The trainees included industry experts such as L. on the technical sheet, the tool that allows a precise start-to-end Khishigsuren, Chief Technologist, Monos Cosmetics LLC; monitoring of every details of the cosmetic manufacturing.” N. Javzmaa, Scientist, Institute of Chemistry and Chemical technology; Dr. Otgonpurev, Chemistry Department, Mongolian University of Life Science; and Ts. Khula, Officer, Customer Relationship department, MNCCI. Most of the trainees said it was their first time to undergo product development training in Mongolia. They expressed their appreciation to MNCCI for organizing the in-house training, which they said provided them the opportunity not only to gain knowledge required for the cosmetics industry, but also
6 Ceylon Chamber Identifies Afghanistan as a Potential Market to Further Expand Business with Sri Lanka
“I am very grateful to H.E. the President companies and investors looking to invest Gotabaya Rajapaksa and the Hon. Prime Minister in Afghanistan’s virgin markets—including Mahinda Rajapaksa for their deep interest in construction; telecommunications; logistics and elevating Afghanistan - Sri Lankan bilateral transportation; health and medicine; agriculture ties and further enhancing our two countries’ and agribusiness covering fruits and dried nuts; cooperation within the South Asian Association natural and mineral resources covering gems and for Regional Cooperation (SAARC) and other precious stones; hand crafted rugs and carpets— intergovernmental organizations where we have among other things—whilst Afghanistan can advanced our common interests in regional benefit from Sri Lanka’s abundance of Tea, stability, environmental security, as well as Rubber, Coconut, Machinery, Medical and connectivity for trade and stronger people- Technical Expertise. to-people ties across South Asia,” said His It was further stated by H.E. Ambassador Excellency M. Ashraf Haidari, Ambassador of Afghanistan to Sri Haidari that owing to a vast cornucopia of resources in both Lanka, at a recent discussion held at the Embassy of Afghanistan Afghanistan and Sri Lanka, potential economic gains from trade in Colombo. between the two nations is immense and both countries look During the discussion, the Ceylon Chamber of forward to signing an MOU on trade and investment promotion Commerce Senior Assistant Secretary General, Ms. Lilakshini and protection in due course. It was also noted that Afghanistan de Mel, briefed H.E. Ambassador Haidari on the role of the 19 and Sri Lanka have initialled an air services agreement, which business councils coming under the purview of the Chamber they will sign sometime soon, as this agreement will help facilitate and indicated that the “Sri Lanka – Afghanistan Trade Desk” the establishment of a direct passenger and cargo flight between will be initially established in February 2020 to further Kabul and Colombo. promote trade, investment and tourism between Sri Lanka and The Acting Minister of Finance of Afghanistan and Chief Afghanistan. Accordingly, the Ceylon Chamber will be signing Advisor to the President, H.E. Dr. Mohammad H. Qayoumi, visited a Memorandum of Understanding (MOU) with the Afghanistan Colombo on February 8-9, 2020. He along with H.E. Ambassador Chamber of Commerce and Industry (ACCI) shortly afterwards. Haidari held bilateral discussions with H.E. President Rajapaksa, The Ambassador assured us of his fullest co-operation to take who warmly welcomed and strongly supported the proposal by forward the initiatives of the Trade Desk. the visiting Afghan Minister to establish air connectivity between It was further mentioned that the Ceylon Chamber Afghanistan and Sri Lanka. They agreed that direct connectivity has already established Trade Desks with Africa, Middle East, would immediately boost bilateral trade and people-to-people Iran, Poland and Turkey. Next in line would be Afghanistan, ties. Bangladesh and UAE. Through the Trade Desks, bilateral trade, Indeed, when air connectivity between our two countries tourism and investment will be promoted with the assistance of is finally established, Afghans and Sri Lankans should be able a counterpart Chamber of Commerce. The formation of this to reconnect with our shared heritage through tourism, trade and business desk provides a single window solution for Sri Lankan investment, education, and cultural exchange.
Productivity Growth an Urgent Priority: Australian CCI
Commission’s analysis is a major wakeup employ – they will be critical to achieving call to our federal and state governments,” this outcome. ACCI Chief Economist Ross Lambie said. “Prime areas for reform include “The message is clear, unless ensuring our regulatory environment is national action to lift Australia’s dismal fit for purpose and supporting the private The Australian Chamber of productivity growth becomes a policy sector in taking risks and investing in Commerce and Industry (ACCI) is urging priority, we put at risk the living standards an increasingly uncertain and dynamic federal and state governments to make we are all accustomed to.” world.” productivity growth an urgent policy “The Productivity Commission’s Dr Lambie said much-needed priority in order to protect the living analysis reinforces the need for initiatives were being pursued, such as standards of Australians, following the governments to identify and act upon getting rid of burdensome regulations, release of the Productivity Commission’s opportunities to increase productivity. supporting infrastructure and providing report today. What we need is policies which enhance incentives for business to invest and “The release of the Productivity the ability of businesses to invest, grow and employ staff, but further improvements had
7 to be made. asset write off scheme.” encourages aspiration and entrepreneurship “ACCI has made a number “Longer term, we need to while at the same time providing adequate of proposals to turbo-charge business encourage political appetite for a review funding for social needs.” investment, particularly in the SME of the tax and transfer system to ensure quarter, such as an increase to the instant Australia has a competitive tax system that
TOBB and Djibouti Chambers Meet in Ankara
The Union of Chambers and Commodity Exchanges of Turkey (TOBB) Board Treasurer Faik Yavuz met with Youssouf Moussa Dawaleh, Chairman of Djibouti Chamber of Commerce and Pan Africa Chamber of Commerce. During the meeting held at TOBB Twin Towers, ideas were exchanged for the development of economic relations between the Djibouti Chamber of Commerce and TOBB.
UNCTAD Reports on Impact of the Corona Virus Outbreak on Global FDI
The outbreak and spread of (-13%). Profits of MNEs based in emerging economies Coronavirus (Covid-19) will negatively are more at risk than those of developed country MNEs: affect global foreign direct investment (FDI) developing country MNE profit guidance has been revised flows, the United Nations Conference on downwards by 16%. Trade and Development (UNCTAD) stated in its latest issue of “Global Investment Trends Monitor”. According to UNCTAD, depending on the scenario for IMF Urges Governments to Roll Out the spread of the epidemic – ranging from short-term stabilization to continuation throughout the year- the downward pressure Aggressive Support Measures for on FDI caused by Covid-19 is expected to be -5% to -15% Virus-Affected Global Economy (compared to previous forecasts projecting marginal growth in the underlying FDI trend for 2020-2021). The International Monetary Fund Among the other highlights of the UNCTAD report are (IMF) on March 9 called on governments the following: worldwide to join forces and roll out • The impact on FDI will be concentrated in those countries aggressive financial supports for the virus- that are most severely hit by the epidemic, although affected global economy, including direct negative demand shocks and the economic impact of payments to workers and businesses. supply chain disruptions will affect investment prospects However, while several nations have in other countries. taken steps to cushion the blow to their economies and boost confidence, including the US, there has • More than two thirds of the multinational enterprises been little visible coordination among policymakers like there (MNEs) in UNCTAD’s Top 100, a bellwether of overall was at the height of the 2008 global financial crisis. investment trends, have issued statements on the impact The rising concern about the global economy has been of Covid-19 on their business. Many are slowing down reflected in the continued collapse of global stock markets, with capital expenditures in affected areas. In addition, lower trillions in value wiped out in the past few weeks, a rout that profits – to date, 41 have issued profit alerts – will translate continue into lower reinvested earnings (a major component of Given the “acute shocks” caused to economies, FDI). consumers and businesses, IMF chief economist Gita Gopinath said that “policymakers will need to implement substantial • On average, the top 5000 MNEs, which account for a targeted fiscal, monetary and financial market measures to help significant share of global FDI, have seen downward affected households and businesses.” revisions of 2020 earnings estimates of 9% due to That includes “cash transfers, wage subsidies and tax Covid-19. Hardest hit are the automotive industry (-44%), relief,” as well as interest rate cuts and financial market support airlines (-42%) and energy and basic materials industries by central banks.
8 Given the ties between global However, government economies, “the argument for a coordinated, spending measures to support economic international response is clear,” she said in a activity have been slow in coming and blogpost. economists are warning that rapid action is The IMF already warned that the crucial to have the biggest effect. effects of the COVID-19 outbreak would slow Germany announced a 3 growth in the world economy to less than the billion euro per year investment package, but 2.9 percent posted last year. it does not go into effect until next year and is The virus has shuttered factories, spread over three years. disrupted travel, delayed conferences and US President Donald Trump has sporting events and infected more than 110,000 people worldwide. signed a bill with US$8 billion in emergency funding, but that The impact effects are seen in production cuts hitting largely goes to medical equipment, medication and testing companies across the globe that depend on parts from China, supplies for state and local governments. where the outbreak originated, but would also hit consumption, White House advisers were reportedly preparing a menu as people are reluctant to go out and spend money. of options for Trump that include paid sick leave and emergency Some nations have already taken steps, Gopinath said. help for small businesses. Italy, the country hardest hit in Europe, has extended tax French President Emmanuel Macron called for EU deadlines and is preparing a 7.5 billion euro (US$8.53 billion) leaders to hold a videoconference yesterday aimed at coordinating package aimed at helping out the devastated tourism industry and their response to the coronavirus outbreak on the continent. other sectors, while South Korea has introduced wage subsidies. Gopinath said that governments can help workers who The US Federal Reserve in early March announced an are laid off by business closures by extending and increasing emergency interest rate cut and on March 9 significantly increased unemployment insurance, as well as helping those that do not its cash injections into money markets with US$150 billion per have paid sick leave. day in short-term loans to ensure ample liquidity amid the virus The economic concerns can ripple into financial uncertainty. markets, causing borrowing costs to rise, which would in turn That was just what Gopinath called for, saying that such “expose financial vulnerabilities that have accumulated during moves “can lift confidence and support financial markets.” years of low interest rates, leading to a heightened risk that debt She added that “actions by large central banks [are] also cannot be rolled over,” she said. generating favorable spillovers for vulnerable countries.” AFP Washington, Taipei Times
COVID-19 Outbreak to Have Significant Economic Impact on Developing Asia: ADB
The ongoing novel coronavirus (COVID-19) outbreak can support governments as they prepare clear and decisive will have a significant impact on developing Asian economies responses to mitigate the human and economic impacts of this through numerous channels, including sharp declines in domestic outbreak.” demand, lower tourism and business travel, trade and production Estimated Global and Regional Impact of COVID-19, linkages, supply disruptions, and health effects, according to a under Different Scenarios new analysis by the Asian Development Bank (ADB). The magnitude of the economic losses will depend on how the outbreak evolves, which remains highly uncertain. The range of scenarios explored in the analysis suggests a global impact in the range of $77 billion to $347 billion, or 0.1% to 0.4% of global gross domestic product (GDP). In a moderate scenario, where precautionary behaviors The analysis, The Economic Impact of the COVID-19 and restrictions such as travel bans start easing 3 months after Outbreak on Developing Asia, presents full details on the the outbreak intensified and restrictions were imposed in late scenarios considered. It also presents estimated impact on January, global losses could reach $156 billion, or 0.2% of global individual developing Asian economies—and on sectors within GDP. The People’s Republic of China (PRC) would account for these economies—including under a hypothetical “worst case” $103 billion of those losses—or 0.8% of its GDP. The rest of scenario for a given economy in the event of a significant outbreak. developing Asia would lose $22 billion, or 0.2% of its GDP. These should not be interpreted as predictions that an outbreak “There are many uncertainties about COVID-19, will occur but are meant to provide guidance for governments as including its economic impact,” said ADB Chief Economist they consider appropriate responses. Yasuyuki Sawada. “This requires the use of multiple scenarios to ADB’s response to COVID-19 to date includes $2 million provide a clearer picture of potential losses. We hope this analysis announced on 7 February to enhance detection, prevention,
9 and response in the PRC and the Greater equipment. technical assistance. Mekong Subregion; another $2 million ADB stands ready to provide ADB is committed to achieving announced on 26 February to support further support to its developing members a prosperous, inclusive, resilient, and response in all its developing members; in their efforts to respond to the adverse sustainable Asia and the Pacific, while and a CNY130 million ($18.6 million) impact of COVID-19. ADB will use sustaining its efforts to eradicate extreme private sector loan, signed on 25 February, appropriate means to address the identified poverty. Established in 1966, it is owned to Wuhan, PRC-based pharmaceutical needs including through existing and new by 68 members—49 from the region. distributor Jointown Pharmaceutical Group financial assistance, emergency assistance Asian Development Bank Co. Ltd. to support the continued supply of lending, policy-based lending, private essential medicines and personal protective sector investment, and knowledge and
Member Personalities
Philippine CCI Names New Secretary- him to be an Agricultural Attache, being posted to the European General Union based in Brussels, Belgium and to the United States based Mr. Ruben Jimenez Pascual in Washington D.C., from 1985 to 1993. Upon his return, he has recently been appointed Secretary- organized and led the merger of two major export associations General of the Philippine Chamber of into the Philippine Exporters Confederation (Philexport) as the Commerce and Industry (PCCI). He Chief Operating Officer, growing its membership from 400 to replaces Mr. Crisanto Frianeza, who over 3,000 over 2 years, raising incomes 8-fold, and generating retired early this year. enormous funding for exporters from international development Mr. Pascual has an extensive professional experience agencies. honed by more than three decades as a journalist, diplomat, After his stint with Philexport, he was recruited to be legislative chief of staff, business executive and consultant to Chief of Staff of then Senator Gloria Macapagal Arroyo who international development agencies, government departments became President of the country after 5 years. Following his work and agencies, politicians and legislators, local and foreign at the Philippine Senate, he founded RJP Consulting which exists corporations, and socio-civic organizations. up to this date. He has provided services and consultancies to Upon completion of an economics degree in the international funding agencies such as USAID, CIDA, AusAid, University of the Philippines in Diliman, he joined Business the World Bank and many other agencies. He has been consultant Day, then the country’s leading business newspaper, and was to many major corporations involved in agribusiness, power, once adjudged as the best agriculture reporter of the country. telecommunications, shipping, steel, information technology and It was in that stint that the Department of Agriculture recruited many other fields.
Manjula de Silva Appointed as the Mr. de Silva served as the Chairman of the CIMA Secretary General & CEO of the Ceylon (Chartered Institute of Management Accountants) Sri Lanka Chamber of Commerce Board in 2016, and was subsequently appointed to its Regional Mr. Manjula de Silva Board for MESANA (Middle East, South Asia, and North Africa) assumed duties as the Secretary General Region. He is a Past President of both Insurance Association and CEO of the Ceylon Chamber of of Sri Lanka (IASL) and Unit Trust Association of Sri Lanka Commerce, from February 1st, 2020. (UTASL). Mr. de Silva took over from Mrs. Dhara Currently Mr. Silva serves as a Board Member of Wijayatilake who retired from that position after serving in that BPPL Holdings Ltd. since 2016, and a Board Member of the Tea capacity since March 2016. Smallholder Factories PLC since 2017. Mr. de Silva has held several senior positions in the Mr. de Silva has been engaged with the work of the Private Sector as well as in the Public Sector, including as a Ceylon Chamber of Commerce since 1996, having served on the Member of the Securities and Exchange Commission of Sri Chamber Committee and being actively involved in several other Lanka, as the Chairperson of the National Insurance Trust Fund, initiatives. He has also served as the Chairman of its Steering as the Managing Director and CEO of HNB Assurance PLC, Committee on Insurance. He currently serves as a member of and the Director General of the Public Enterprises Reform the Chamber Economic Policy Steering Committee as well as the Commission, among others. National Agenda Committee on Public Sector Reforms.
10 Product & Service Councils
Asian Textile & Garment use 10 per cent of the power of a standard five industrial verticals: agriculture, Council motorized machine – vastly improve construction, energy, Infrastructure and working conditions for women reeling silk public safety. from cocoons. This proved to be a huge Syed Hussein highlighted that Weaving Renewable Energy into time and energy saver as traditionally, a there were 15 local players involved in the India’s Textile Industry process called thigh-reeling was employed drone industry while singling out FourFang – one which was physically demanding and and Aerofleye as companies that SME considered undignified labour resulting in Corp hopes to further develop and grow, younger people opting out of the industry. hopefully emulating the success found by This is where DRE can play global drone service provider Aerodyne, a pivotal role - in driving modern and who recently announced a Series B funding efficient systems for the industry while of US$ 30 million. accelerating scale. Advancements in Tsuyoshi Habuchi, Terra Drone renewables, its access and flexibility to Head of South East Asia & Oceania, India’s textile and garment serve the most remote parts of India and the presented a more nuanced view of market industry are one of the world’s largest, use of information technology to manage growth, by dividing it into several areas: contributing to 3.7 per cent of the global and monitor energy use and storage can Hobby (potential global market size: market. The use of decentralized renewable drastically enhance the output and quality US$20 billion), Industry, (US$30 billion) energy can modernize and accelerate this of textiles and garments in the country. and Military (US$60 billion). growth while improving livelihoods for ETEnergyworld.com Tsuyoshi explained to the millions. audience that the drone market originally Nasir, a hand loom weaver from was about hardware sales, but now drones Belgaum, Karnataka shifted from his Asian SME Council are transitioning to being part of a more manual machine to a solar powered loom. complete solution, as part of an overall As a result, he was able to double his GDCKL 2020: service, replacing work currently done by production output and save many labour- Building a Flight Path for humans. intensive hours that impacted his income Malaysian Drone Companies SME Corp certainly hopes that and health. Nasir now has a steady supply- this potential can be fulfilled by local chain and local client base contributing to players. Noor Azmi Mat Said, SME Corp an increased income for him and his family. Malaysia CEO, said that the number of India is looking to find durable companies will grow from the current and viable ways to meet its growing energy 15, “We don’t have specific targets, but if needs. While Saubhagya has made strides in possible, at least ten more,” he said. expanding grid-connectivity, decentralized He also hopes that these renewable energy (DRE) is positioning companies can take advantage of the High itself as a strong alternative, especially Impact Programmes 2 (HIP2) to bring More than 30 local and in areas where grid-supply is erratic and solutions to the market. Under the 2020 international industry experts gathered unreliable. For the textile industry in National budget, RM1.2 billion has been in Kuala Lumpur for the Global Drone particular, efficient, clean and reliable allocated for digitalization initiatives with Conference & Hackathon 2020 (GDCKL energy can go a long way in accelerating SME Corp hoping to earmark between 2020), as Malaysia continues to establish growth in the industry, increasing its RM500,000 and RM1 million for drone- itself as a global test bed for emerging contribution to India’s GDP and supporting related initiatives. technologies and innovation. “The goal,” the livelihoods of millions. Digital News Asia “It doesn’t work to just add solar emphasised Syed Hussien Habshee, SME to an existing machine. It has to be designed Corporation Malaysia Chairman, who with solar in mind. Only then will it be officiated the opening, “is to turn Malaysia Asian Health & into a drone hub in Southeast Asia.” efficient and cost-effective,” says Kunal Education Council Vaid, Director of Resham Sutra, a social Noting that the world is in the energy enterprise delivering sustainable “midst of a global drone revolution”, Syed Hussein said that the global drone services Schools to offer mental health energy solutions for rural livelihoods using lessons from 2021; more trips to innovative technology and renewable market is expected to be worth US$63.6 Asian countries resources for silk production. billion (RM267 billion) by 2025, with Asia- Resham Sutra’s range of Pacific set to grow the fastest. No surprise affordable electric reeling machines – many then that he encouraged local entrepreneurs Mental wellness and peer support of which are powered by solar energy and and SMEs to explore opportunities in will be given more focus in schools soon, as the Ministry of Education refreshes
11 Product & Service Councils
overseas trips will also be organised to environment. In the future, we plan to Asian countries. Singaporean students introduce this technology in Republic of should experience Asia, as it is “our own South Africa and to other regions with backyard” and where Singaporeans “have a serious water shortages, thus contributing natural competitive advantage”, added Mr to the development of water infrastructure Ong. and industry. Institutes of Higher Learning will NEDO engaged in a seawater aim for 70 per cent of their students to have desalination and water reuse integrated the Character and Citizenship Education overseas exposure, with a further 70 per system demonstration project to solve South (CCE) curriculum for 2021. cent of these students to have exposure to Africa’s water shortage issue and to promote “One key challenge our youths ASEAN, China or India. the introduction of energy-saving water face today is mental well-being,” said Channel News Asia production technology. To demonstrate the Second Minister for Education Indranee energy-saving seawater desalination and Rajah in Parliament on Wednesday, March water reuse integrated system developed 4. Asian Council on Water, during NEDO’s demonstration project in As such, mental health will be part Japan, a Memorandum of Understanding of the new CCE curriculum in secondary Energy & Enviornment (MOU) was concluded with eThekwini schools, “to help students to understand Metropolitan Municipality, South Africa common mental health issues and their Hitachi: Energy-Saving, on November 17, 2016. Furthermore, the symptoms, know when and how to seek Low Environmental Impact implementing agent Hitachi concluded help for themselves and others, and develop Seawater Desalination System Starts an Implementation Document (ID) with empathy and care towards persons with its Demonstration Operation in eThekwini Metropolitan Municipality, the mental health issues”, said Ms Indranee, Republic of South Africa owner of the waste water treatment plant during her ministry’s Committee of Supply where the demonstration plant located. debate. AsiaOne Similarly, polytechnics and the Institute for Technical Education (ITE) have also worked with the Health Promotion Board to develop mental health Investment & Joint resources for students. Other than educating students, Ventures in the Region teachers will also create “a positive school learning environment”. Kachin State Inks Border Business Teachers are taught to create a New Energy and Industrial Park Deal with China-Myanmar “positive classroom culture” as part of their Technology Development Organization Joint Venture training, and “positive teacher-students (NEDO) and Hitachi, Ltd. (TSE:6501) relationships are strongly emphasised”, are engaged in a demonstration project said Ms Indranee. The ministry will develop for a seawater desalination and water teachers’ capabilities through SkillsFuture reuse integrated system in the eThekwini for Educators. Metropolitan Municipality, known as City Building on that, schools will of Durban, Republic of South Africa, have to teach students how to overcome and have recently started demonstration setbacks. Teachers in schools and Institute operation of the system at the demonstration The MOU signing ceremony to establish of Higher Learnings’ class advisors will be site of a waste water treatment plant in the the Kanpiketi Business Park in the border trained to pick up signs of distress, reach eThekwini Metropolitan Municipality. town of Kanpiketi, Kachin state. / Ministry out to these students and refer them to This demonstration project uses a of Information mental health professionals if needed. system developed during a demonstration To allow students to engage project by NEDO in Japan, and construct The Kachin State government has Southeast Asia better, the humanities demonstration facilities aiming for signed a memorandum of understanding curriculum will place more emphasis on desalinating 6,250 tons of drinking water (MOU) with a Chinese-backed company studying Asia, said Mr. Ong. from seawater and treated and discharged to develop a business park project in “It must provide students with a waste water every day, while saving 30% Kanpiketi, a border town in northern deeper appreciation of the geographies, more energy compared to conventional Myanmar, as part of Beijing’s ambitious histories, cultures, languages and economies seawater desalination systems and grand infrastructure plan, the Belt and of our regional countries,” he said. More reducing the impact on the nearby marine Road Initiative (BRI).
12 Investment & Joint Ventures in the Region
On Wednesday March 4, the AST & Science has the potential to support MOU was signed by the state government our efforts to connect users across Japan and Myanmar Heng Ya Investment through mobile innovation, expanding Development Company Ltd, a joint national coverage from metropolitan to venture between Myanmar’s Kampaiti remote areas and bolstering the network in Development Company Ltd and China’s times of natural disaster.” Yunnan Tengying Trading Company Ltd. AST & Science successfully The Chinese company holds a 70-percent tested its SpaceMobile technology aboard stake while the Myanmar company holds standard smartphones. The company holds the BlueWalker 1 satellite, launched in 30 percent. an extensive patent and IP portfolio for its April 2019, and has been further validating The signing ceremony was held ground and space technologies. the technology following that initial flight. at the Kachin State government office in “SpaceMobile will be particularly Yahoo Finance Myitkyina, the state capital, witnessed transformative to the growing US$1 trillion by State Minister of Finance, Revenue, annual global mobile market because it Exxon, BHP Pledge Planning and Economy U Wai Lin, State will eliminate the coverage gaps faced New Gas by ‘Early 2021’ as Minister for Electricity and Industry U by today’s five billion mobile subscribers Supply Crisis Looms Win Nyunt and other officials from both moving in and out of connectivity every sides, according to a press release from the day. It will also help the world’s most Myanmar Ministry of Information. under-served communities to access the At an estimated cost of US$22.4 latest mobile services much sooner than million (31.85 billion kyats), the Kanpiketi predicted, helping more people to access Business Park will cover nearly 70 acres the digital economy,” said Abel Avellan, (28 hectares) in the border town in northern AST & Science chairman and CEO. Kachin State’s Special Region 1. The area AST & Science will initially offer is controlled by the New Democratic 4G services to partner networks globally, Global energy giant ExxonMobil Army-Kachin (NDAK) militia, which is with 5G delivered in the future. The and miner BHP say they will bring urgently allied with the Myanmar military. SpaceMobile network will enable seamless needed new gas to the east-coast market by At the signing ceremony, U Wai roaming to and from terrestrial cellular early 2021, as their joint venture prepares to Lin promised that the government would networks at comparable data rates without begin work on one of the largest remaining implement the project with transparency. any need for specialized satellite hardware. undeveloped gas reservoirs in Victoria’s Myanmar and China will work together to In addition to its investment in Bass Strait. promote cross-border trade, control illicit AST & Science, Vodafone has agreed to The announcement on the $550 border trade and offer job opportunities to a strategic partnership and will contribute million project known as West Barracouta local people, he said. technical, operational and regulatory comes at a critical time as the push to lift the Myanmar became an official expertise in support of the global supply of gas into the southern states takes member country of the BRI after signing deployment of SpaceMobile. on greater urgency. Manufacturers have a 15-point MOU on the China-Myanmar Nick Read, CEO, Vodafone begun openly blaming a three-fold hike in Economic Corridor (CMEC) in 2018. Group, said, “At Vodafone we want to the gas price as they close their doors, while The Irrawaddy ensure everyone benefits from a digital authorities are warning of a looming supply society – that no-one is left behind. We shortage. The Morrison government, Rakuten and Vodafone Invest in believe SpaceMobile is uniquely placed to meanwhile, has made increasing gas AST & Science’s Space Venture to provide universal mobile coverage, further production a condition for states to receive Reach More People, Devices and enhancing our leading network across energy funding deals, pressuring Victoria Places with Mobile Coverage Europe and Africa - especially in rural to lift its onshore gas drilling ban to help areas and during a natural or humanitarian offset the rapidly declining output from the Rakuten and Vodafone have disaster - for customers on their existing Bass Strait offshore fields. become the lead investors in a venture to smartphones.” ExxonMobil, which is seeking a extend mobile coverage to more people “AST & Science’s SpaceMobile buyer for its 50 percent stake in the Bass and devices across the planet, using the venture is a perfect fit for us,” said Mickey Strait operation, has been investing heavily first mobile broadband network that will be Mikitani, chairman and CEO of Rakuten, to moderate the decline from the ageing broadcast from space. Inc. “Our investment is part of our broader fields. Operated in a joint venture with Branded SpaceMobile, the low- strategy to become a leading mobile BHP, the offshore fields have traditionally Earth-orbit (LEO), low-latency satellite network operator in Japan and a global supplied up to half of Australia’s east-coast network from AST & Science will be the solution provider to markets around the gas demand. first in the world to connect directly to world. Rakuten’s strategic investment with In December the joint venture
13 gave the green light to the $550 million ExxonMobil said its subsidiary on delivering gas that Australians need West Barracouta project. However, the Esso Australia had drilled to a depth of to the domestic market,” ExxonMobil project is only expected to help offset 1.3 kilometres on its first well in the new Australia chairman Nathan Fay said. the decline in production from the East West Barracouta field, and would have gas The Sydney Morning Herald Barracouta reservoir, rather than increase flowing into the market by 2021. overall supply. “Esso Australia continues to focus
Economic Cooperation News
Asia-Pacific Economies face $211 bn trade and investment cooperation between Azerbaijan’s Economic Reforms Hit from Coronavirus: S&P the two countries as there are lots of things Discussed in Washington that can be done in different sectors of the The coronavirus could wipe economy which would prove beneficial for more than $200 billion off Asia Pacific Belgium and Pakistan. economies this year, S&P Global ratings Speaking at a recent meeting warned Friday, sending growth to its lowest of Karachi Chamber of Commerce & level in more than a decade, as governments Industry (KCCI), he said that the business struggle to combat the disease. & industrial community of Karachi must In a worst-case scenario, China look into the possibility of exploring could see growth of less than three percent, trade and investment opportunities in Azerbaijani Finance Minister Samir while Japan, Australia and Hong Kong Belgium which, though, was not a huge Sharifov met with Kristalina Georgieva, could “flirt with recession”, it said in a country but very open and had the second the Managing Director of International report. largest port in Europe along with excellent Monetary Fund Fears about the impact of the pharmaceutical and other major industries. outbreak, which has spread to at least 85 “We would like to contribute Azerbaijani Finance Minister countries since it began in China in late towards further promoting mutual Samir Sharifov recently met heads of December, have hammered world markets understanding between our two countries, the International Monetary Fund and as investors fret over its economic impact. and we also need to promote the image and World Bank in Washington, US to discuss S&P said it expected the region perception about Pakistan,” he added. economic reforms carried out in the to grow 4.0 percent this year as supply President of KCCI Agha Shahab country. and demand shocks blow a $211 billion Ahmed Khan, while welcoming the During the meeting with Kristalina hole in the economy. That compares with Ambassador, pointed out that during FY18, Georgieva, the Managing Director of a 4.8 percent estimate given in December Pakistan exported goods worth $666.4 International Monetary Fund (IMF), Samir and would be the worst performance since million while the imports from Belgium Sharifov gave comprehensive information a contraction in 2008 caused by the global amounted to $518.6 million. about large-scale reforms implemented financial crisis. He noted that in Dec 2014, KCCI under President Ilham Aliyev leadership in “Asia-Pacific’s outlook has organized Belgian Companies’ Catalogues Azerbaijan. darkened due to the global spread of the Exhibition in collaboration with the “IMF is ready to render all coronavirus,” it said. “This will exert Embassy of Belgium in its efforts to necessary support to Azerbaijan in this domestic supply-and-demand shocks in promote bilateral trade which was followed direction,” IMF Managing Director Japan and Korea. It will mean weaker by another Belgian Companies’ Catalogue Kristalina Georgieva said during the external demand from the US and Europe” Exhibition held in March 2017 at KCCI. meeting, adding that she met President The report said economies were Agha Shahab said that Belgium Aliyev at Davos Economic Forum in suffering from the double-whammy of was one of Pakistan’s largest trading January of 2019. weak demand as consumers stay home for partners within the EU. Belgium had During the meeting, it was fear of catching the disease, and falling extended consistent support that helped also emphasized that Azerbaijan plays a supplies as industries are rocked by Pakistan acquire GSP Plus status in 2013. It significant role in a global and regional shutdowns. had also provided humanitarian assistance scale. The sides discussed Azerbaijan’s The Economic Times during the floods in Pakistan in 2010. partnership with international financial Pakistan could help Belgium organizations, and the ways of upgrading Tremendous Scope Exists for expand its trade to the Central Asian them to a qualitatively new level. Expanding Pakistan’s Economic Countries, China, India and the Middle The minister also held a meeting Ties with Belgium: Belgian Envoy East while Belgium in turn could help with Jihad Azur, Head of the IMF Pakistan expand its trade with the European department on the Middle East and Central countries, he added. Ambassador of Belgium Philippe Asia, and Natalia Tamirisa, Head of the IMF Business Recorder Bronchain has stressed the need to enhance mission on Azerbaijan. Implementation of
14 Economic Cooperation News
MediumTerm Expenditure Framework in cooperation plans between Azerbaijan and Economic Partnership Commission and Azerbaijan, as well as in the framework World Bank, as well as execution of issues First Deputy Assistant Secretary of State of the 4th article of IMF, preparations for arising after the meeting between President for Economic and Business Affairs of the organization’s representatives’ visit to Ilham Aliyev and Axel Van Trontsenburg, the US. They discussed the next meeting the country in July were also high on the the Managing Director of WB, in the of Intergovernmental Commission to be agenda. framework of Munich Security Conference organized in Washington in July, 2020 and Samir Sharifov had another held in February. mutual economic cooperation relations meeting with Cyril Muller, the Vice- As part of his visit to Washington, between Azerbaijan and the United States. President of World Bank (WB). During the the Azerbaijan Finance Minister met with Azernews meeting, discussions were held on further Peter Haas, Co-chair of the US-Azerbaijan
Technology
Google’s Self-Driving Unit investment as part of “an evolutionary path Apple products such as the iPhone and Waymo Raises $2.25B in Its First that we had always imagined” that could iPad, expects to resume normal production External Investment lead to “more independence” for Waymo. by the end of March after the coronavirus In addition to Alphabet, initial outbreak forced it to close factories in investors include auto parts supplier China in late January. Magna International, with which Waymo But company chairman Liu has an assembly deal; U.S. dealership chain Young-Way said during an earnings call AutoNation, which services and maintains with investors that there are still “plenty” Waymo’s vehicles; the Canada Pension of uncertainties and the company could Plan Investment Board, and three large not yet quantify the impact of the lengthy investment firms: Silver Lake, Andreessen shutdown on full year earnings. Horowitz and Mubadala Investment. For now, Liu said there will be Waymo, the self-driving unit of Alphabet CFO Porat said a “significant, negative year-on-year impact Alphabet, said it had raised $2.25 billion more “intense focus” on “metrics and for all our core business segments” for the in its first external investment round and milestones” had already played out at three months ending in March. Asked if the expects to add more outside investors. Alphabet’s Verily health care business, first quarter would be profitable, Liu said: The company also disclosed its self-driving which raised $1 billion from Silver Lake “I cannot tell you at the moment.” trucking business will be called Waymo and others in January 2019. Foxconn, also known as Hon Via. Last September, investment bank Hai Precision Industry, employs hundreds Founded 11 years ago as a small Morgan Stanley slashed its projected of thousands of people. About 75% of its project inside Google, Waymo is now valuation of Waymo to $105 billion from production capacity in mainland China, widely considered the leader in developing its earlier estimate of $175 billion, saying according to brokerage firm KGI Asia. self-driving technology. But Waymo and the commercialization of self-driving The manufacturer said that as of its principal rivals are still years away from vehicles and technology was taking longer Tuesday March 3, it is producing at about building large-scale businesses around that than expected. 50% of capacity. technology, analysts believe. Krafcik said Waymo, which has Foxconn’s reduced production The outside investors will help partnered with Lyft Inc, Fiat Chrysler capacity will also likely delay the launch Waymo be more disciplined, Alphabet Automobiles and Jaguar Land Rover , of Apple’s lower priced iPhone SE2, which Chief Financial Officer Ruth Porat told the is considering partnerships with other was expected this month or next, according Morgan Stanley investor conference on automakers and transportation service to KGI Asia analyst Laura Chen. Monday March 2. providers in various markets outside North Apple did not immediately Waymo Chief Executive Officer America, but did not provide details. respond to a request for comment. The John Krafcik, in a media briefing late on ETtech company warned last month that its Monday, declined to confirm whether revenue for the March quarter will take a Alphabet plans to sell or spin off Waymo, Foxconn Expects iPhone Production hit because the outbreak is limiting how saying it was “certainly a possibility for the to Return to Normal in March many devices it can make and sell in China. future.” CNN Krafcik described the outside Foxconn, the main assembler of
15 Policy Updates
Australia changes to deeming rates, and immediate added. support for small and medium-sized In the hypothetical worst-case businesses will form part of the looming scenario, the duration of travel bans and Australian Government Stimulus package. sharp decline in domestic demand will be Package Promises Financial The Guardian six months in China and the outbreak in Support ‘as Fast as Possible’ other developing economies lasting three months. Bangladesh The Daily Star
Coronavirus Stands to Wipe $3b off Cambodia Bangladesh Economy COVID-19: Gov’t to Set Up New Economic Measures Josh Frydenberg, Treasurer of Australia Despite no new cases of Josh Frydenberg, Treasurer of COVID-19 reported in Cambodia since Australia says the Morrison government January, the government is planning new will use the tax and transfer system to get measures to tackle the financial effect the financial support to Australian households Bangladesh’s gross domestic virus continues to have on the country. as quickly as possible as part of a looming product may contract by as much as 1.1 per Meas Soksensan, general stimulus package to counter the negative cent in the hypothetical worst-case scenario secretariat of the Ministry of Economy and economic impact of the coronavirus. of a significant outbreak of coronavirus in Finance, said that while they can’t fully Ahead of a cabinet deliberation the country, said the Asian Development gauge the final fiscal damage the outbreak about the stimulus package expected Bank (ADB) in an analysis. will have, the government will focus on the on Tuesday, the treasurer was asked That means, the novel virus, garment and tourism industries. by reporters on Monday March 9, how which is yet to arrive in Bangladesh, could “The garment sector is affected the government intended to administer wipe $3.02 billion off the $300 billion-plus more than other sectors, so we will assistance to households, given the economy. facilitate the import of raw materials and Coalition has criticised the Rudd In such a scenario, 894,930 jobs mid-finished components for production government’s stimulus package deployed will be lost, according to the ADB. and assembly in the country, ready for during the global financial crisis. The magnitude of the economic export,’’ said Meas. Frydenberg told reporters impact will depend on how the outbreak “The government has maintained on Monday March 9, when it came evolves, which remains highly uncertain, close monitoring on the affected enterprises to households: “We have our existing the Manila-based lender said. and companies and introduced emergency systems, the tax and transfer systems. In China is the biggest trading partner intervention to control the impacts on the terms of the specific details, I will leave of Bangladesh and the biggest source of sector in some areas for the purpose of that to our announcement, but what we will raw materials. The world’s second largest ensuring economic and social stability,’’ he be focused is ensuring the support gets out economy accounted for more than a fifth of said. Khmer Times there as fast as possible.” the country’s imports of $56 billion in fiscal The treasurer said the multibillion- 2018-19, Bangladesh Bank data showed. dollar package, which the government The world’s second largest Hong Kong has been working up over the past couple economy is also emerging as an export of weeks in anticipation of a sustained destination for Bangladesh. Hong Kong Cuts Interest Rate After economic hit from both the bushfires Bangladesh receives 5-6 lakh and the coronavirus, would be “very tourists every year and of them a major US Fed’s Surprise Move to Bolster comprehensive and very substantial”. portion comes from China. Sagging Economy as Coronavirus Frydenberg hinted the government “There are many uncertainties Outbreak Spreads Worldwide would roll out the first phase of assistance about the COVID-19, including its to households and business imminently, economic impact,” said ADB Chief Hong Kong’s monetary authority then likely revisit again at the May budget. Economist Yasuyuki Sawada in a statement. reduced its base lending rate by half a He said the measures would be “scalable”. “We hope this analysis can support percentage point after the US Federal The government has signalled governments as they prepare clear and Reserve conducted an emergency cut for a new business investment allowance, decisive responses to mitigate the human the first time since the global financial a financial boost for pensioners through and economic impacts of this outbreak,” he crisis to counter risks stoked by the global
16 Policy Updates coronavirus outbreak. Japan The Fed trimmed its key rate by 50 basis overnight, two weeks before its Japan’s Cabinet Approves Visa scheduled meeting on March 17 and 18, as Chairman Jerome Powell said he “saw a Cancellation Policy for China and risk to the economy, and chose to act.” South Korea Hong Kong’s de facto central bank, which runs its monetary policy in Prime Minister, Narendra Modi Japan’s Cabinet lockstep with US policies to maintain approved a policy on March 6, that the local currency’s peg to the US dollar, Sustainable Growth in a Fractured World’. enables the government to invalidate the followed with a 50 basis point cut to 1.5 Addressing the delegates from around visas of people coming from China and per cent, effective immediately, the HKMA the world, the Prime Minister said that South Korea. The measure is among those said in a statement posted on its website. the vision of ‘Collaborate to Create for aimed at preventing the spread of the new A cut in the base lending helps Sustainable Growth’, is the need of the day coronavirus. reduce the cost of money, aiding Hong and also the basis for the future. “The idea The Japanese government will Kong’s borrowers in weathering a retail of Collaborate To Create is as old as it is cancel the visas starting March 9. All and consumption slump that last year drove relevant,” he added. foreign nationals coming from the two the local economy into its first technical Modi stressed that new challenges countries will be denied entry into Japan, if recession in a decade. The HKMA cut the emerge in every era which further they do not have new visas. official lending rate three times in 2019 by strengthens our spirit of ‘Collaborate to People from South Korea, Hong a combined 75 basis points, following nine Create’. Kong and Macao are currently exempt consecutive increases totalling 225 basis The Prime Minister said that the from visa requirements for short-term stays points between 2015 and 2018. Government is in constant contact with all of up to 90 days. But they will be required The actions indicate that “the stakeholders, taking feedback continuously, to obtain travel documents starting the Fed would proactively use its monetary taking major decisions at every level. week of March 9. policy to mitigate possible economic risks By liberating the country from the status Japanese officials are currently posed by the coronavirus,” HKMA’s chief quo, we are moving towards creation by examining new applications carefully, and executive Eddie Yue Wai-man said in a cooperation not only at the national level but few visas have been issued to people from statement on its website. “However, further also internationally, he added. The Prime the two nations. developments of the coronavirus are still Minister also listed out the role of India in The government says visas for very uncertain and financial markets will building international level institutions like foreign visitors who are currently in Japan continue to see considerable volatility. International Solar Alliance and Coalition will become invalid once the individuals Investors should manage their risks for Disaster Resilient Infrastructure. leave the country. prudently.” The Prime Minister said that the This policy will be in effect until The HKMA will continue to 21st century is full of many possibilities. the end of this month. But Japan’s foreign closely monitor market situation, and “Amidst these possibilities, there is a lack ministry says the period may be extended. maintain orderly operations of Hong of a common global voice. The question The government says it will work Kong’s money and foreign exchange before the whole world is to somehow with China, South Korea, and other nations markets, Yue said. It will also ensure adjust to the changing circumstances or to implement anti-virus measures at ports stability of the Hong Kong dollar peg, he to develop a new path in a new way,” he of entry. added. added. NHK South China Morning Post The Prime Minister said that in the midst of changing global conditions, India has also made very wide changes. There Malaysia India was a period when India was neutral by creating equal distance between countries. Malaysia Picks Bank CEO as India undergoing major economic, Even today India is neutral, but by equal Finance Minister policy changes: PM Modi at ET friendship, he added. “Keeping distance in Global Biz Summit that period, an attempt was made to escape. Malaysia’s prime minister picked Today, we are trying to maintain friendship the head of one the country’s main banks The Prime Minister, Narendra and walk together. This is the very essence as his new finance minister today amid Modi, addressed the Economic Times of India’s foreign policy and economic heightened global risks and domestic Global Business Summit on March 7. policy,” he added. policy uncertainty. The broad theme of the Global Business Indus Dictum Tengku Zafrul Aziz, chief Summit 2020 is ‘Collaborate to Create: executive officer of CIMB Group Holdings
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Bhd, will head the finance ministry in the procurement and construction (EPC) of the percentage of respondents expecting Cabinet of Prime Minister Muhyiddin the 5-MW Uliastai solar photovoltaic (PV) decreases from the percentage expecting Yassin, who replaced Dr Mahathir park and an accompanying battery storage increases, said SCCB. Mohamad recently after a power struggle. facility. According to the ADB, the required The Straits Times Tengku Zafrul will be tasked with investment for the project is estimated at implementing a RM20 billion stimulus around USD 7.95 million (EUR 7.9m). package to counter the economic damage Interested parties will be able to Taiwan from the Covid-19 outbreak. Growth in submit bids by March 27. Malaysia was slowing even before the Under its green development Taiwan Travelers Impacted by epidemic, weakening to a decade low in policy, approved in 2014, Mongolia aims Entry Restrictions from 23 2019. to make renewables account for 20% of Countries and Regions The appointment comes a week its installed power capacity by 2020 and after Bank Negara Malaysia lowered the 30% by 2030. Data by the International benchmark interest rate by 25 basis points Renewable Energy Agency (IRENA) to counter risks to the economy from the shows that at end-2018, the country had Covid-19 outbreak. around 63 MW of installed solar PV The government recently revised capacity. down its economic growth forecast for this Renewables Now year to 3.2%-4.2%, from 4.8% previously, after last year’s expansion was the weakest in a decade. Singapore It also has widened the fiscal The Ministry of Foreign Affairs deficit target to 3.4% of gross domestic Singapore Business Confidence (MOFA) said on March 8 that currently product, from 3.2% earlier, to accommodate Falls to Record Low on 23 countries and regions have issued new the stimulus package. Coronavirus Worries: Survey border regulations impacting Taiwanese Free Malaysia Today travelers. Business sentiment among As the coronavirus (COVID-19) Mongolia Singapore firms plunged to an all-time epidemic continues to worsen around the low in the second quarter of 2020 because world, many countries have upgraded of coronavirus health risks and potential their screening procedures and broadened Mongolia Seeks to Pre-Qualify economic impact. entry restrictions to prevent potential Bids in Solar-Plus-Storage Tender This is according to the Singapore carriers from entering their territory. The Commercial Credit Bureau’s (SCCB) latest MOFA Bureau of Consular Affairs on Business Optimism Index study out on Sunday warned that many countries have March 10. denied entry to Taiwanese citizens and that Business sentiment tumbled to travelers — whether business or leisure -7.88 percentage points in Q2 2020 from — should check on potential restrictions 5.31 percentage points in Q1 2020 as all six before boarding flights. of the study’s indicators reported negative According to MOFA, 13 countries numbers. and regions have banned individuals with The Sermsang Khushig Khundii solar The Q2 2020 figure is the lowest travel histories to areas with COVID-19, power plant in Tuv aimag, Mongolia. since SCCB started polling businesses for including Samoa, the Cook Islands, Source: ADB the study in Q3 2010, the bureau told The the Federated States of Micronesia, Business Times. the Solomon Islands, the Kingdom of Mongolia has launched an The slide in optimism levels was Tonga, Vanuatu, Tahiti, Tuvalu, Kiribati, invitation call for project developers caused by negative spillover effects of El Salvador, Mauritius, Lebanon, and willing to take part in the pre-qualification heightened global health risks posed by the Malaysian state of Sarawak. Four round of a solar-plus-storage tender. the virus, slowing Chinese demand and nations have also imposed travel bans on The invitation for bids was disruption of supply chains, said SCCB all Taiwanese travelers: Jamaica, Saudi published by the Asian Development Bank chief executive officer Audrey Chia. Arabia, Kazakhstan, and Mongolia. (ADB), which is providing financial support The study polled 200 business While Burma and Italy have not for the initiative as part of its Upscaling owners and senior executives representing denied Taiwanese entry, both countries Renewable Energy Sector Project. The major industry sectors across Singapore, have suspended international flights. competition concerns the engineering, with figures calculated by subtracting MOFA added that Taiwanese citizens are
18 Policy Updates allowed into Russia and Bermuda, but the production of electric vehicle parts they will be placed in a 14-day quarantine, including batteries and support the import reported the Liberty Times. of cheap batteries. Taiwan News Such measures would add to corporate income tax exemption for eight Thailand to 10 years, Somkid said. The deputy prime minister Thailand Aims to Become said that Thailand is also pushing and Electric Vehicle Hub in 5 Years encouraging state enterprises to use electric (Covid-19) epidemic began. vehicles including passenger buses. Lê Hữu Nghĩa, general director The Thai government will roll Thai energy conglomerate of Lê Thành Construction and Trading out strategic plans to turn the country into including PTT Plc and the Electricity Company, said his company’s hotel chain an electric vehicle (EV) hub in five years Generating Authority of Thailand will join saw 95 per cent cancellations, and rooms under several promotional measures, said forces to open charging stations, Somkid are now booked only by businesses and Deputy Prime Minister Somkid Jatusripitak said. almost none by tourists. Xinhua News Agency on March 11. The chairman of the city tourism Somkid announced the policy association, Cao Trí Dũng, said the association has submitted a proposal to after chairing a meeting of the National Vietnam Electric Vehicle Policy Committee. the city on supportive measures for the industry. The committee is currently Businesses in Vietnam Seek working out strategies to become hub Chu Tiến Dũng, chairman of the Support amid Covid-19 Losses for electric vehicles including electric HCM City Union of Business Associations motorcycles, said Somkid. (HUBA), said urgent support is needed The coronavirus outbreak has “The national strategies focus on from the government to help the tourism affected the country’s economy, with the environment, solutions to air pollution industry in various key provinces and production for exports and services and the transition of the Thai automotive cities. He suggested measures such as suffering the most. industry to electric vehicles,” said Somkid. reducing and delaying tax for businesses. The tourism and service industry “Fairness is guaranteed for existing car Businesses still have to repay their bank in Đanang, one of the cities attracting the makers in Thailand.” loans and taxes, but revenues from tours most foreign tourists, is expected to suffer Meanwhile, Somkid has instructed and service are declining, he said. losses of up to VNĐ700 billion (US$30.4 the Board of Investment (BOI) to find more Vietnam News/Asia News Network million) due to the slump in tourism in the promotional privileges for investment in two months since the novel coronavirus
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 28 Primary Members from 26 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 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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