CACCI Profile Confederation of Asia-Pacific Chambers of Commerce and Industry
Vol. LI, No. 9 September 2018 Several Tour Programs Lined up for Istanbul Conference Delegates
Delegates to this year’s 32nd CACCI Conference Next, we will walk through the old wooden houses on November 23-24, 2018 can look forward to having the built next to the gate of Topkapı Palace and take a short break in opportunity not only to learn from the discussions on timely and Caferaga Madrassah that used to be a school during Ottoman era. relevant topics during the various Conference sessions, but also You may sip your Turkish Coffee while watching local artists. to experience the exciting and exotic sights and sounds of the host Topkapı Palace’s gate will greet you just a few steps from city of Istanbul. Madrassah. The Palace is located at one of the most beautiful and The Union of Chambers of Chambers and Commodity exchanges (TOBB) has lined up four optional tour programs that delegates can join on November 25, just after the conclusion of the two-day Conference. These optional group tours include the In this Issue: following: * OTTOMAN & BYZANTINE RELICS (Full Day • CACCI President to Attend B20 Summit ... 3 including Lunch) • CACCI Officers Call on ROC President ..... 3 Istanbul is a unique city that offers a multicultural • CACCI Secretariat Executives Meet with architecture and life experiences. You may discover and live the Northern Territory Chamber Officer ...... 4 rich cultural bacground of the city via Ottoman & Byzantine • Stressed Out, Koreans Try to Spend Less Relics Tour in a day. The Basilica Cistern is one of the unique underground Time at the Office ...... 4 museums of the world also known as the Underground Palace. • A Role in the Indo-Pacific Economy ...... 6 The Cistern was built to provide the Byzantine Empire with • Coping with Technology ...... 7 the water supply it needed and has been opened to visitors as a • Risks Stemming from Changing museum since 1987. Macroeconomic Undercurrents in Asia ..... 8 • Publications by ADB ...... 10 • Product & Service Councils ...... 11 • Investment & Joint Ventures in the Region ...... 11 • Economic Cooperation News ...... 14 • Fairs & Exhibits in Asia-Pacific ...... 15 • Policy Updates ...... 16
1 Several Tour Programs Lined up for Istanbul Conference Delegates renowned historical spots of glamorous Istanbul. Topkapi Palace is the first museum of Republic of Turkey and continues to be one of the largest palace museums in the world with its architectural structures, several collections and an archive of more than 300,000 documents. In the afternoon, we will drive through Golden Horn and visit Chora Museum, well preserved 11th-c. Greek Orthodox Church, that you may witness the highest level of Byzantine mosaics depicting the life of Virgin Mary and Jesus Christ. Next, the Fener Greek Patriarchate Church. This dignitary institution is the spiritual leader for the Orthodox world with 250 million believers. The Patriarchate moved to its present residency in 1602, which was restored in the 1800s. ITINERARY * HISTORICAL PENINSULA (Half Day Morning 08:15 - Depart from Ciragan Palace Kempinski Tour) 12:00 - Lunch in Konyali Restaurant Istanbul has been the capital of the Eastern Roman 17:00 - Arrival at Ciragan Palace Kempinski Empire and our tour starts at the Roman Hippodrome where once wild animals fought and gladiators waged numerous battles. The Roman Hippodrome is built in 203 by the mighty Emperor Septimus Severus. The tour continues with the famous Sultanahmet Mosque also known as Blue Mosque which is a masterpiece of architecture from 17th century. Located in the very heart of the historical peninsula of Istanbul, Sultanahmet Mosque is built in 1616 by Architect Mehmet Aga for Ottoman Sultan Ahmet I. Another world famous highlight is the Museum of Haghia Sophia (which means Holy Wisdom) was built in 537 as a Greek Orthodox Cathedral and. It has continued to serve its millions of visitors as a mosque since 1453 and now is a museum since 1935. Haghia Sophia Museum offers the best examples of * BOSPHORUS CRUISE & SPICE MARKET (Half Oriental and Western art to its visitors. Day Afternoon) The last stop will be the oldest shopping mall of the This afternoon tour fits you well to discover the beauties world, Grand Bazaar, offering 4400 shops, 61 streets and 2 of Istanbul and Bosphorus from the boat and offers you to Bedesten (inner covered bazaars). The Grand Bazaar has been experience shopping in Spice Market. elected as the best Tourist Attraction Sight most visited in the Spice Market, the Egyptian Bazaar will offer you all world in 2015 by Travel & Leisure magazine followed by Times tastes of Orient with its colourful shops. Square in New York City as the second most visited site. Just after a short walk, we will embark on the boat for ITINERARY Bosphorus Cruise that will last about 1.5 hours. The Istanbul 08:15 - Departure from Ciragan Palace Kempinski Strait, or the Bosphorus, has arguably the most magnificent views 13:00 - Arrival at Ciragan Palace Kempinski in the world. There is nowhere on earth where two continents and civilizations meet. The Bosphorus tour by boat is a must-see. The trip is like being on a fascinating, magical journey as you witness centuries of history in a beautiful setting along the wide and captivating Bosphorus. ITINERARY 13:15 - Departure from Ciragan Palace Kempinski 17:15 - Arrival at Ciragan Palace Kempinski
* DINNER CRUISE ON BOSPHORUS WITH A PRIVATE BOAT (Night Tour) You may discover the beauties of Bosphorus on a Pivate boat while enjoying your dinnner and sipping wine whilst gliding through the river with live music.
2 Key CACCI Officers Call on ROC President
CACCI President Mr. Jemal Inaishvili and CACCI Senior Vice President Mr. Samir Modi made courtesy calls on Her Excellency President Tsai Ing-Wen of the Republic of China (ROC) on September 4, 2018. During their meeting, Mr. Inaishvili and Mr. Modi, re- introduced CACCI and its activities to President Tsai, highlighting the important role played by Taiwan in the establishment and activities of the Confederation, including the hosting of its Permanent Secretariat in Taipei since 1981, the holding of several of its annual Conferences and Summit Meetings in the island, and the strong support it has received from the Taiwanese government and leading Taiwanese businessmen over the years. They also reiterated their appreciation to President Tsai for gracing the Opening Ceremony of the 30th CACCIConference Istanbul, Turkey in which several businessmen and experts from and 50th Aniversary celebration held in Taipei in 2016. Taiwan have been invited as speakers in the various Conference The two CACCI officers also informed President Tsai sessions. of their scheduled visit to Mongolia on September 6-8 where For her part, President Tsai undersocred the important they were to meet with the President and Prime Minister of the role played by CACCI in promoting economic cooperation country, as well as to attend Ulaanbaatar Partnership, the largest among countries in the region and between Taiwan and other trade exhibition of Mongolia. CACCI member countries.She also recognized the critical role of They likewise informed the ROC leader about the CACCI, given the georgraphical scope of its membership, in the upcoming 32nd CACCI Conference on November 23-24, 2018 in implementation of her administration’s Southbound Policy.
CACCI President Inaishvili to Attend the B20 Summit in Argentina
The themes to be addressed reflect the issues that have been part of 2018 debates in the drafting of its Policy Documents. These recommendations will be handed over to G20 President, Mauricio Macri, at the closing ceremony on October 5, 2018 in Buenos Aires. The B20 – currently chaired by Argentina - is a platform that serves as an intermediary group between G20 governments and the international business community. Its primary mission is to deal with the urgent and significant global issues by developing actionable recommendations from global business leaders to the Mr. Jemal Inaishvili, President of the Confederation of G20 Leaders. These issues are addressed by the various Task Asia-Pacific Chambers of Commerce and Industry (CACCI), has Forces set up for this purpose, including the Task Force on Trade registered to attend the B20 Summit to be held on October 4-5, and Investment, of which Mr. Inaishvili as CACCI President is a 2018 in Buenos Aires, Argentina. member. The Summit is expected to gather some 1,200 business leaders from around the world. The high-level representatives from business will present B20 recommendations and debate on the issues that are shaping our economies today and will have substantial impact on our future. The Summit is the concluding event of a year’s work.
3 CACCI Secretariat Executives Meet with Northern Territory Chamber Officer in Taipei
Mr. Brian O’Gallagher, Deputy Chief Executive Officer of the Chamber of Commerce Northern Territory, met with CACCI Director-General Mr. Ernest Lin and Deputy Director-General Mr. Amador Honrado on August 30, 2018 at the CACCI Secretariat office in Taipei. Mr. O’Gallagher briefed Mr. Lin and Mr. Honrado on the upcoming Regional Australia Asia Chambers Forum scheduled to be held on May 2-3, 2019 in Darwin, Australia. Mr. O’Gallagher was in Taipei to attend the 32nd Joint Conference of the ROC-Australia and Australia-Taiwan Business Councils held on August 31, 2018 at the Formosa Regent Hotel in Taipei and hosted by the Chinese International Economic Cooperation Association (CIECA), CACCI Primary Member from Taiwan.
Stressed Out, Koreans Try to Spend Less Time at The Office By Su-Hyun Lee & Tiffany May
SEOUL, South Korea — Lee Han-bit helped produce a television series called “Drinking Solo,” in which young adults cramming for a high-stakes civil service exam often drink to relieve anxiety. But working weeks without a break and asking his own employees to work 20-hour days, Mr. Lee was consumed by pressures of his own. He took his life within days of completing the project, leaving behind a note that decried a South Korean work Workers leaving Seoul’s financial district in the evening. Working long hours was once seen as culture that exploited him and required him a badge of honor in South Korea, especially for to exploit his crew in turn. the male breadwinner in a patriarchal society. “I too was nothing but a laborer,” Mr. Lee wrote. But to them, he added, “I work pressure plays a role in more than don’t share the work-at-all-cost ethos of was nothing more or less than a manager 500 suicides a year, out of a national total their parents. who squeezed the laborers.” of about 14,000. Woo Su-jin, a 26-year-old Mr. Lee’s message reverberated South Korea’s leaders are trying computer graphics designer, said the media across South Korea, a country that has long to change that. A new law that went into outlet where she works now allows her to worked too hard. effect in July caps workweeks for many arrive later in the morning if she worked While Japan famously brought employees at 52 hours. The government late the night before. Project discussions the world the concept of “death from is pushing companies to let employees over food and drinks that used to last from overwork,” South Koreans work longer go home for the night and to free up their 7 p.m. to 1 a.m. now end earlier, after one hours, according to labor data. In fact, they weekends. A call to the Ministry of Labor is round of drinks rather than three. put in 240 more work hours per year than greeted with a recorded voice message that “My colleagues and I say that Americans do — or, put another way, an says, “Our society is breaking away from we would rather go home earlier than extra month of eight-hour workdays. overwork.” work long hours, even if we were paid for The South Korean police say The extra time off is especially working overtime,” Ms. Woo said. liberating for young workers, who often South Korea’s feelings about
4 jobs by enforcing a 52-hour workweek. “Habitual long-extended work has been the culprit behind Korea’s low labor productivity,” he said in July after the workweek cap took effect. That message has found a sympathetic audience among the young in South Korea, who have learned to prize their leisure time as old attitudes have loosened. Until a five-day workweek was introduced in 2004, many South Koreans did not experience free Saturdays. “Before, people sacrificed their present to guarantee their futures,” said Mr. Yu, the professor. “Now, people have to be and want to be happy now.” Many companies are enacting new policies to comply. More than 700 of South Korea’s 3,672 large companies and South Koreans put in 240 more work hours per public sector organizations have either hired new employees or year than Americans do — or, put another way, have plans to do so, the Ministry of Labor said, although it did not a full month of eight-hour workdays. track whether these new hires would be working full time. work are complex. Pride in hard work helped propel the once- Other organizations have introduced policies to limit routine rural country out of the ashes of war and transform it into an overtime work. Seoul’s city government began in May to enforce economic power, producing brands like Samsung and Hyundai mandatory lights out and computer shutdowns on Fridays at 7 that are known all over the world. p.m. Working long hours also used to be seen as a badge At the insurance company where Park Jung-min, 46, of honor, especially for the male breadwinner in a patriarchal works, computers are automatically shut off at 6 p.m. Employees society. But even then, some workers called attention to difficult are also encouraged to request advance permission to work conditions. The self-immolation of a factory worker at the start of overtime. the 1970s labor movement is still evoked by activists today. “If we don’t know in advance that we might have to South Koreans often suffer from a work culture they call work after 6 p.m., then we have to turn on the computer again gapjil. This word describes the imperious sense of entitlement after 6 and provide reasons for doing so,” said Mr. Park, who that authority figures feel over their employees, whom they described it as an occasional nuisance. “But all in all, I think this expect to wait on them and cater to their whims. new 52-hour workweek is good for our work-life balance that The most famous example is the “nut rage” incident, Koreans now want more of.” in which the daughter of the chairman of Korean Air threw a Loopholes still abound, critics say. It isn’t clear whether tantrum over how she was served nuts on a flight. business trips or entertaining clients would count toward the 52- The incident and workplace deaths — including the hour cap. Some industries, like health care and transportation, suicide of Mr. Lee, the television producer — have given new have received exemptions. Companies could also find other ways urgency to South Korea’s efforts to change its workplace culture. to avoid hiring more people. When a government employee, a new mother, died in “Employees would take their work home, which would 2017 after collapsing at her office on a Sunday morning, President be an unspoken agreement between bosses and underlings,” said Moon Jae-in, who was still a candidate at the time, wrote on Kim Yu-kyong, a public labor attorney at the Organization for the Facebook: “We can no longer be a society where overwork and Human Rights of Workers. working until late is a given.” The Union for Broadcast Workers, which was formed Nor are long work hours good for the economy. Labor by freelance employees in the television industry after the new productivity has slowed considerably, while unemployment law went into effect earlier this month, said it received more than among young people has reached 10 percent despite a much 30 complaints within the first two days. One employee, it said, lower national rate over all. worked from 7 a.m. to 3 a.m. and was asked to report to work at Mr. Moon, who was elected in 2017, and labor 7 a.m. the following day. experts blame outdated workplace practices, including those “That only leaves time for a worker to go to a public in government, that allow managers to keep employees on call bathhouse to have a shower and an hour or so of sleep,” said Kim to complete tasks as they come up. Though that system gives Du-young, a union official. managers more flexibility to assign work, it does not necessarily Though it will be another two years before the maximum benefit the organization as a whole. work hours are enforced for smaller companies, many see the “It worked in the past when Koreans were hungry,” said mandate for reduced work hours as long overdue. Yu Gyu-chang, a professor of human resources management at “It has to work,” Mr. Kim of the Union for Broadcast Hanyang University. “But times have changed now.” Workers said. “So far, the existing practice had been too Mr. Moon wants companies to hire more people to inhumane.” get the work done. He cites research that showed a rise in labor productivity with every percentage point of weekly work hours Su-Hyun Lee reported from Seoul, and Tiffany May from Hong reduced. During his campaign, he pledged to create 500,000 new Kong New York Times
5 A Role in the Indo-Pacific Economy By Abraham M. Denmark, Taipei Times
therefore should play a significant role in one another and support liberal principles any economic strategy from Washington. that are critical to a free and open Indo- To not include Taiwan – or other US allies Pacific, these initiatives have the potential and partners in the region – would be to become a major source for the region’s to ignore a key source of support for US continued stability and prosperity. interests and the principles we promote. Yet Taiwan also has a critical role Considering the areas that to play. It cannot afford to sit passively Secretary Pompeo announced would be by and wait for the world to come In a recent major address to the the focus of US economic strategy toward knocking. Instead, significant reforms US Chamber of Commerce’s Indo-Pacific the Indo-Pacific – digital economy, energy, and investments will be needed to better Business Forum, Secretary of State Mike and infrastructure – there is no doubt position Taiwan to contribute to the future Pompeo detailed an economic initiative to that Taiwan has a significant amount of of the Indo-Pacific’s digital economy. contribute to the Trump administration’s resources and expertise to contribute. For While Taiwan already brings significant vision of a “free and open Indo-Pacific.” decades, Taiwan has been a reliable sources advantages to the table, more can be done. He declared that the region is “one of for technological innovation in these areas. The plan to create an Asian Silicon Valley the greatest engines of the future global More recently, the recently launched in Taoyuan is a prime example of the vision economy,” and that the region must be Digital Nation and Innovative Economic and ambition that will be needed. Yet – as free and open to preserve its peace and Development Plan (also known as “DIGI+”) with the just-announced US initiative – the prosperity. He detailed US$113 million identified infrastructure, talent, cross- key to success will not be in the vision, but in new initiatives designed to advance industry transformation, digital rights, in the implementation and the resources US economic interests across the region, and smart cities as critical to achieving committed. including an energy initiative in Indonesia, the goal of growing Taiwan’s digital As competition between China the construction of hundreds of kilometers economy to NT$6.5 trillion (US$211.7 and the United States has intensified, of electricity transmission lines in Nepal, billion) by 2025. The significant overlap Washington has struggled with developing and an agreement to develop new, long- between these initiatives suggests great and implementing an economic component term sources of water supply in Mongolia. opportunities for Washington and Taipei of its strategy. With the possibility of the Yet throughout the secretary’s description to pursue synergistic efforts to develop US joining TPP a distant hope, a modest of this new initiative, the role of Taiwan Taiwan’s economy while also contributing initiative from Washington to enhance was not addressed. to the broader health and success of the US regional development assistance is As a major economic player, liberal regional order. welcome. But the United States cannot Taiwan should have a major role to play Yet more will need to be done. do it alone – allies and partners (including in the economic aspect of any American At only US$113 million, the initial stage Taiwan) will have a critical role to play strategy toward the Indo-Pacific, and of this economic initiative disappoints in both competing with China and in especially one promoting the region’s – especially when compared with the sustaining the liberal regional order that freedom and openness. Taiwan is one of the hundreds of billions of dollars that China has been critical to decades of peace and most free and open societies in the world, has devoted to its One Belt, One Road prosperity. Taipei Times and should have a significant role to play in initiative. Here too suggests an opportunity for Taiwan – and other more developed About the Author promoting those values across the region. Abraham M. Denmark Secretary Pompeo explained that “free, US allies and partners across the Indo- means good governance and the assurance Pacific – to contribute to US efforts to that citizens can enjoy their fundamental use technology, economic engagements, rights and liberties,” and “open” development assistance, and soft power means open investment environments, to help the rest of the region develop and transparency, connectivity, a commitment grow strong. Such an effort would not to the peaceful resolution of disputes, and only buttress these relationships; they will the ability of nations to enjoy open access also enhance the ability of US allies and to seas and airways. I can hardly imagine a partners to resist economic pressure from better description of the values and policies Beijing. Washington, Taipei, and other key represented by Taiwan. Mr. Denmark is Director of the Asia Program Moreover, Taiwan is a major partners should develop mechanisms to coordinate efforts and cooperate on major at the Woodrow Wilson International trading partner of the United States – Center for Scholars, and formerly served more significant than countries like Israel, development projects across the region. By ensuring that our efforts complement as deputy assistant secretary of defense for Russia, Brazil, and Saudi Arabia – and East Asia. The views expressed are his own.
6 Coping with Technology: Challenges and Opportunities for ASEAN+3 Economies An interview with Hoe Ee Khor, Chief Economist at ASEAN+3 Macroeconomic Research Office
cannot continue doing this forever. What example, after the global financial crisis, this means is that countries need to plan we found that Chinese tourist spending ahead, and they need to upskill their labor actually helped support economic growth force if they want to move up the value significantly. The same thing happened in chain. Otherwise they have to move into Thailand—tourist spending has been very new industries if they want to stay with strong, which helps to offset the slowdown manufacturing and move up the value in investment owing to the floods and the chain. political uncertainty. Take the case of Cambodia, which Many regional economies don’t is now moving beyond garments and textiles have the facilities, and they need to Tourists watch a flyboard show by the beach of to other consumer goods and electronics. invest in their infrastructure to draw more Hon Tam Resort in Nha Trang, Vietnam. Many We are seeing this happening in a few other tourists—both digital infrastructure and ASEAN economies need to invest in their tech- less-developed ASEAN economies as well, hard infrastructure. Technology plays a nology infrastructure to draw more tourists. Linh Pham/Getty Images partly due to outsourcing of production big part in the customization of services from China, which has seen production for tourists in a way that it could not be Technological change and costs rise in recent years. But yes, for done in the past; and as we see increased the relentless pace of automation offer sure, automation is an issue that regional digitization in the region, that will also significant opportunities for productivity economies have to come to terms with and result in creating more curated experiences growth and improved efficiency, but prepare for. for travelers, something that many tourists they also bring related risks of increased At the same time, technology look for these days. worker displacement and the challenge of has also transformed the service sector in On the whole, we are quite upskilling labor. terms of converting it into an engine of optimistic that tourism can be a major area While the rise in trade growth. Take the example of the business of growth that countries can take advantage protectionism (discussed in the first part process outsourcing (BPO) industry in the of. In general, I think Asian economies of this interview) is an immediate reality Philippines, which has become an engine have adapted to technology rather well— the ASEAN+3 economies are confronted of growth, creating jobs and income for the right from China, where everything is with, coping with technological advances local economy. The BPO industry accounts becoming digitized, to Indonesia, where and using them to drive productivity and for 40 percent of exports and has created online transactions have taken off. growth is a medium- to long-term challenge more than 1 million jobs, the wages for BRINK Asia: Do you think the for the region. which are three to five times higher than less-advanced ASEAN economies are In this second part of the interview, the national average. That is an example equipped to cope with the changes being AMRO’s chief economist, Hoe Ee Khor, of how technology has actually helped. witnessed? touches upon this topic, as well as other Another area that we are very positive about Dr. Khor: The less-advanced key risks facing the ASEAN+3 economies. is that technology has led to a reduction in countries include Cambodia, Laos, BRINK Asia: What will the impact telecommunication and transport costs, and Myanmar, and Vietnam (the CLMV of technological advances and increased that has led to an explosion of tourism … countries). These economies have been automation be on employment and jobs in take the case of outbound tourism from the biggest beneficiaries of regional the region? China, for example. integration, without which they would not Hoe Ee Khor: One of the global BRINK Asia: Can you tell us have been able to sustain the high growth trends scaring everyone is that of automation more about how countries can benefit from they have been seeing. About 70-80 percent taking away jobs, particularly in the area the boom in tourism and its relation to of the investment into these countries has of capital-intensive manufacturing. In technology? been intra-regional, and about 60 percent the auto sector, for example, employment Dr. Khor: In order to take of the trade is also intra-regional. Because has been shrinking, even in China, which advantage of the explosion in outbound of diversity in the region, these economies is the world’s leading auto manufacturer. tourism from countries such as China, the have benefitted from incoming investments Fortunately, there are still some sectors that regional economies need to provide good from the ASEAN economies and also the are quite labor-intensive, such as garment connectivity and infrastructure. You find “plus 3” (China, Japan, and Korea). manufacturing—sectors such as these that a lot of Chinese tourists have been Take the case of Samsung in are still providing ample opportunities visiting the more-developed regional Vietnam—it has become the country’s for employment. However, this is a economies—Japan and Korea have been largest manufacturer and has transformed limited window, because economies the primary beneficiaries. In Korea, for the country’s manufacturing sector. For
7 the longest time, Korea was focused on the Now, it is about getting the balance right— region has done well because it has been West, but now we see a lot of interest from it needs to provide incentives for the very peaceful over the past few decades, the Koreans in ASEAN—they are doing upskilling of local workers, and at the same and that has allowed the region to grow and what Japan did in the 1980s. Ironically, it time, it needs to be more targeted in terms focus on economic development. However, is creating trouble in Korea because there of the type of foreign workers its economy developments on the Korean peninsula are are a lot of complaints that the “chaebols” requires. always a potential risk, and tension over the are not investing there, but are creating jobs What the low-income countries South China Sea is another. We regard both outside the country. should not forget, however, is that they of these as tail risks, although there is no As for coping with the are also rapidly moving toward middle- denying that they can have big implications technological changes we are seeing, the income status, and they therefore need to on trade and economic growth. To maintain poorer economies, ironically, are not facing think ahead and plan better because, sooner prosperity, the region needs to continue constraints as acutely as the middle-income rather than later, they are going to face the integrating and deepening economic ties— countries, which really have to move up the same problems. and not resort to protectionist measures that value chain and invest in technology, skills BRINK Asia: In your view, can pit the economies against one another. upgrading and training. Everywhere we go, what are the three biggest risks regional So far, the regional economies have stuck one complaint is that of scarcity of skilled economies are faced with? together, but there is a risk this may not labor for a wide range of industries. We see Dr. Khor: In the short term, the continue to be the case. it in the Philippines and in Thailand and in two major risks facing the region are the Another important concern is Malaysia. ongoing trade conflicts between the U.S. more of a challenge than a risk. The region Malaysia is at the high end of and China and a sharper than expected rise needs to get out of the middle-income the middle-income band and is trying to in global interest rates. These two risks trap by investing more in infrastructure, move to the high-income level. To make have the potential to derail the economic technology and in upskilling its workforce. the transition, it has to focus on upskilling recovery in the region. However, our Fortunately, these are high savings the labor force, because the kind of simulations show that the impact of a trade economies, so there is capital available to manufacturing that it is now looking into war is likely to be limited, unless it leads plug this gap in investment; for instance, is increasingly more skilled- and more to a severe loss of confidence, causing the Belt and Road Initiative is helping fill capital-intensive. Malaysia has created a investment to fall and destabilize financial this investment gap in several economies. department within the Economic Planning markets. Similarly, the current tightening of While these are risks and Unit that is focused on retraining and financial conditions is manageable unless challenges that countries in the region upskilling the labor force. So far, it would there is a sudden spike in interest rates. face, they are not insurmountable; and if be fair to say that Malaysia has benefited From a longer-term perspective, the regional economies get down to it, I significantly from overseas labor, which is the evolving geopolitics in East and think they can successfully overcome all of cheap and has helped keep wages down. Southeast Asia is always a concern. The them. Brink Asia
Risks Stemming from Changing Macroeconomic Undercurrents in Asia An interview with Mahamoud Islam, Senior Asia Economist at Euler Hermes
Asian economies are faced economies must consider strengthening announcement on tariffs on $200 billion of with manifold challenges. Increasing intra-regional trade. Chinese imports were to be implemented. automation and artificial intelligence BRINK Asia spoke with This could shave off 0.3 points of growth have started disrupting numerous sectors, Mahamoud Islam, senior Asia economist at in China, and the U.S. could lose up to and a snowballing trade dispute between Euler Hermes, about the various forces at 0.5 percentage points. It would be even the world’s two largest economies could work and how Asian economies are dealing worse if the U.S. were to implement tariffs jeopardize the region’s growth prospects. with the ongoing changes. on $500 billion of Chinese imports. In Emerging economies must BRINK Asia: What could be the that scenario, we would be in a trade war. strategize on how these changes can be long-term implications of the ongoing China’s GDP growth could lose up to 1 dealt with, especially the economies that trade war between the U.S. and China? percentage point, while the U.S. could lose are already facing high unemployment Mahamoud Islam: At the current up to 1.7 percentage points. levels. Potential reshoring of manufacturing stage, it is not a trade war. Both the U.S. That said, there is room for activity to developed countries can also and China can cope with tariffs on $50 cautious optimism. First, protectionism have an adverse impact on the ASEAN billion worth of exports. It would be is not new. Protectionist measures have region, and in this regard, regional different if President Donald Trump’s increased over the past 10 years. And so
8 opportunity for growth in these sectors. improved in order to unlock growth Favorable demographics, rising incomes potential. In Singapore, Taiwan and Hong and cheap labor costs are conducive for Kong, the objective will be to keep the sectors such as agriculture, mining and local skill set competitiveness in check. To hospitality. Moreover, large infrastructure do so, investing in innovation and having a needs provide opportunity for the forward-looking industrial strategy will be construction sector. If you take developing key. Asia as a whole, for example, the Asian In China, improving financial Development Bank has estimated that foundations will be the main priority. Such Asia’s infrastructure needs would amount improvement will come from a) better to $1.7 trillion per year until 2030. Last, debt management (corporate debt is at This aerial view shows workers loading cargo at a port in Nantong in China’s eastern Jiangsu technological advances could be a source 160 percent of GDP); b) measures to keep province. Even with rising protectionism, trade of new opportunities. Automation could financial risks at bay (shadow banking, still has growth opportunity, and there remains indirectly create new jobs. For example, a housing bubbles); and c) a continued and room for expansion. AFP/Getty Images company that is sparing financial resources gradual financial opening. thanks to automation could choose to The last priority will be to continue far, the world has been able to cope with invest more in services-related jobs—such helping the economy climb the value- that: The volume of global trade growth as marketing and branding or after sales— added ladder. Continued efforts to move up has been resilient since the end of the that would help to catch on to the growing the value chain will help maintain China’s global financial crisis. Second, it is also Asian middle class. exports edge. Business-friendly reforms important to recognize that this rise of The real challenge will be to get such as lower administrative burden and protectionism is mainly driven by the the right skill set so people can adapt to fair treatment of foreign corporates will U.S. Outside of the U.S., there is a rise changes. Proactive policies that encourage help attract foreign direct investment. of new forms of multilateralism. The Belt trainings and digital awareness will be BRINK Asia: And what about and Road Initiative led by China, the TPP crucial. Singapore’s SkillsFuture is a good Asian businesses? minus the U.S., the Japan-EU Economic example of such an initiative. Mr. Islam: First, acquire Partnership Agreement and the Regional BRINK Asia: More broadly, do you knowledge—having good market Comprehensive Economic Partnership see global value chains being significantly intelligence and business intelligence. (RCEP) are all mirror initiatives that aim affected as a result of increased automation Companies need to have good knowledge to offset the negative impact of U.S. trade and potential reshoring to developed on countries, sectors and buyers, both protectionism. countries? domestically and globally. The bottom line here is that we Mr. Islam: I think it is only one Second, try to diversify should not take U.S. initiatives in terms (small) part of the story, especially because external revenues. When a company of trade as the announcing of a new automation is not a new phenomenon. In operates overseas, it doesn’t have to be world trade war. Trade still has growth fact, there are a lot of other factors that come just through exports—it could also be opportunity, and there is still room for into play. One is demand growth. Global through investments. This is something expansion. We expect 4.1 percent growth trade growth has undergone a regime that Japanese companies have done for global trade this year, which is slightly change. Global trade in volume is now successfully in the past. Companies could above global economic growth—so we growing at around 4 percent. This contrasts invest in foreign markets in order to get see global trade still supporting global with an average of 8 percent per annum closer to their end-clients. This allows you economic growth. China is still expected growth between 2002 and 2007. Two is to invest in new manufacturing hubs from to see strong economic growth of 6.6 labor cost. Labor costs have increased where you can export, but also where you percent this year, and we are seeing growth rapidly over the past 20 years in emerging can find new clients. improvement in emerging markets such as markets such as China, which has reduced The export strategy should also Russia and Brazil; the eurozone will also their competitive advantage. The result be maintained, but taking full advantage see growth of above 2 percent. is that companies are looking for other of new digital services—e-commerce and BRINK Asia: Given that production hubs, and in some cases, they expanding services offering will be pivotal. unemployment is already a challenge in go back to the home markets (reshoring). Being selective is going to many emerging Asian economies, how do Three—and this is more specific to Asia— be important, as there are different you think countries can cope in the face of relates to a country’s export specialization. opportunities in different parts of the world. increasing automation? Most Asian markets are specialized in If you take construction and infrastructure Mr. Islam: First, technological electronics. The consequence is a lot of spending, there is a need for it across much advances and job creation are not mutually price competition among countries. of Asia. What we can learn from China exclusive. History has proved it multiple BRINK Asia: How can Asian with the Belt and Road Initiative is that times. Second, there is still room to economies prepare for the changes? you don’t need just exports; you also need grow in some labor-intensive industries. Mr. Islam: It depends on the an investment strategy. You invest abroad, Countries such as India and Indonesia market. In markets such as India and and then you export there through your are still primarily dependent on highly Indonesia, infrastructure has to be companies. labor-intensive sectors, and there is still
9 BRINK Asia: Finally, what role Vietnam that are promising demand outlets integration with the creation of the ASEAN can blocs like ASEAN play? thanks to favorable demographics, rising Economic Community and the proposition Mr. Islam: I think ASEAN can incomes and solid economic growth. And of the RCEP. play a critical role in the global economy. It last, Cambodia, Laos and Myanmar are It is well-positioned to benefit can be a competitive manufacturing hub for resource-rich and very price-competitive, from the rise of the Chinese consumer. And the global economy and a solid driver of but not globalized yet. markets such as Vietnam, Philippines and global demand. The regional block is full I think ASEAN can be a clear Indonesia have the potential to become of complementarities. You have markets driver of the regionalization of trade alternative manufacturing hubs to China. such as Singapore, Malaysia and Thailand, in Asia-Pacific. The market has good This unique mix of characteristics where the economies are more diversified, economic relations and strong trade ties can stand the ASEAN region in good stead and where the business environment, access with all major economies (China, Japan, as it provides all the ingredients for stable to financing and logistics are superior to India, South Korea and Australia) in the and sustainable growth. the rest of the region. Second, there are region. It is a driving force for regional Brink Asia markets such Indonesia, Philippines and
Publications by ADB
Developing Renewable Energy Mini-Grids in Myanmar: A Guidebook
This guidebook shares training materials and knowledge on mini-grid development for rural electrification. It documents experiences and lessons learned from developing 12 pilot mini- grid systems for off-grid energy access in Myanmar.
This guidebook documents the experiences and lessons learned from developing 12 pilot mini-grid systems for off-grid energy access in Myanmar. Unelectrified rural communities typically located 10 kilometers from the national grid and without prospects of being connected to the grid in the next 5 to 10 years have been chosen for the project. This guidebook shares training materials and knowledge on the major aspects of mini-grid development for rural electrification. Further, it highlights the importance of community participation and discusses the main renewable energy technologies that are suitable for mini-grid development in Myanmar including solar, hydro, and biomass. This guidebook is intended to serve government officials, renewable energy developers, and potential investors in the development of mini-grid projects in Myanmar.
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10 Product & Service Councils
ICT 2022. “5G won’t be driven by supply, drive economies of scale and lower the it’ll be driven by demand and the rest of cost of 5G handsets. I think 2022 or later industry needs to wake up to this.” is appropriate for India,” Lane said in an India Plans to The South Asian nation, email. Implement 5G by 2022 traditionally a laggard in embracing the South Korea, which recently latest technology in telecommunications, tested its 5G technology during the Winter will follow South Korea, Japan and China, Olympics in February with self-driving countries where 5G service will be offered cars, virtual reality games and a motion- within the next two years. detection system to ward off menacing wild The new technology has boars, is planning an airwaves auction to advantages of massive connectivity, low commercially deploy 5G wireless services. power consumption and boasts download Japanese firms are also gearing speeds and capacity that can enable up, as are U.S. carriers. Italy is targeting autonomous vehicles, drones, remotely a September auction of the spectrum that assisted surgeries and traffic control. could be used for 5G, while the U.K. sold Bloomberg A slight delay, however, might bandwidth in April that included some India plans to roll out state-of-the- actually be beneficial for India, according to earmarked for these services. The Hong art 5G telecom services in the next four Sanford C. Bernstein’s Hong Kong-based Kong government is even considering years, a senior official said, as the nation analyst Christopher Lane, who expects giving airwaves away for free. rushes to catch up with its Asian peers. South Korea to launch these services by India’s telecom regulator proposed “We are not there yet,” Telecom next March, Japan late 2019 and China, floor prices for auctioning spectrum Secretary Aruna Sundararajan said in an along with most Western major cities, in dedicated for 5G rollout, although the interview in New Delhi, adding that the 2020. auction dates have not been announced. complete rollout of 5G will be done by “India needs China to launch to Japan Times
Investment & Joint Ventures in the Region
JD Invests in Delivery Branch IKEA Opens First India Store Walmart Offers E-Books
Bands music and loud cheers Walmart Inc. on August on August 9, 2018 greeted hundreds of 22 launched a digital book shop in customers as Swedish furniture giant IKEA collaboration with Japanese e-commerce opened its first store in India, five years powerhouse Rakuten Inc’s electronic book after it received approval to invest in the service Kobo. The Walmart eBooks Web country’s single-brand retail sector. The site boasting more than 6 million titles store in the southern city of Hyderabad, along with audiobooks is to compete head- Dada-JD Daojia has raised India’s information technology hub, is on with a core offering of rival Amazon. US$500 million from existing backers spread over 5 hectares. IKEA Group com Inc. Subscriptions to the Walmart JD.com Inc and Walmart Inc to quicken chief executive Jesper Brodin said that audiobook service are US$9.99 per month, the growth of its delivery network across the company’s involvement with India compared with US$14.95 for a comparable China. The logistics company said it began more than three decades ago with service at Amazon. intends to use the funds to invest in supply the sourcing of products. The company’s Taipei Times chain technology and serve merchants on vast array of goods available at one place its platform, which connects scooter-riding gives it an advantage in India. The Indian San Miguel Plans Huge Deal drives in about 400 cities with about 1.2 furniture market is mostly unorganized million online merchants and delivers and composed of small and medium- San Miguel Corp is seeking as everything from packages to groceries. sized businesses. IKEA plans to open 25 much as 142.8 billion pesos (US$2.67 Walmart’s Chinese-based supermarkets are stores in India by 2025. It said that its billion) for shares of its food and beer one of Dada-JD Jaojia’s key clients. Indian operation employs 950 people and unit, in a deal that would be the biggest plans to hire another 15,000 as it expands Philippine stock offering on record. The Taipei Times operations. Taipei Times country’s largest company plans to offer as
11 Investment & Joint Ventures in the Region many as 1.02 billion shares of San Miguel Taipei Times B2C [business-to-consumer],” he said. Food and Beverage Inc in the fourth quarter It is also entering final negotiations at an indicative price of 140 pesos each, it Innolux Ventures into Smart Store with two or three wine retailers, cosmetic said in stock exchange filing. with FamilyMart stores, pharmacies and hypermarkets to Taipei Times build smart stores in Taiwan and China, he said. HTC Partners with Digital signage currently Japanese Artist to Enliven Content contributes minimal revenue to Innolux, By Ted Chen but Hung said he expects strong growth in 2019 with more projects in the pipeline. Taipei Times
Japan has Created Flying Car Innolux Chairman Jim Hung (L) & FamilyMart President Hsueh Tung-Tu (R) Consortium Including Uber and Airbus, Sources Say By Lisa Wang Innolux Corp, a flat-panel manufacturing arm of Hon Hai Precision Industry Co, said it is expanding its business scope by supplying higher-margin Japanese artist Miwa Komatsu displays her virtu- displays to retailers and convenience store al-reality artwork at a news conference at HTC’s chains to build up its brick-and-mortar VR Content Center in Taipei, as part of the com- smart store system. Bloomberg pany’s promotion of the development and appli- cation of interactive art. Innolux made the remarks after Japan is making a push to develop announcing its partnership with Taiwan flying cars, enlisting companies including HTC Corp announced a FamilyMart Co, the nation’s second- Uber Technologies Inc and Airbus SE in collaboration with Japanese painter largest convenience store chain, supplying a government-led group to bring airborne Miwa Komatsu as the smartphone displays and advanced technologies to vehicles to the country in the next decade, maker continues to invest in content and build smart stores similar to Amazon’s people familiar with the matter said. intellectual property (IP) to shore up its first brick-and mortar store “Amazon The group is to initially comprise transition into the virtual-reality (VR) Go,” allowing shoppers easier access to about 20 companies, including Boeing Co, industry. promotion information and to do self- NEC Corp, a Toyota Motor Corp-backed The company, which has invested check-outs for online purchases. startup called Cartivator, ANA Holdings in the film industry, is developing a series In its first smart store venture with Inc, Japan Airlines Co and Yamato of VR titles for its Vive ecosystem in a FamilyMart at its plant in Tainan, Innolux Holdings Co, the people said. year-long partnership with Komatsu to helped install more than 100 displays The Japanese Ministry of broaden the scope of VR applications – mostly in the form of digital signage Economy, Trade and Industry and the beyond gaming, HTC said. ranging from 23-inch to 58-inch displays. Ministry of Land, Infrastructure, Transport Liu Szu-ming, vice president of The panelmaker also helped build and Tourism plan to draft a road map this HTC’s VR Content Center, said that the an Internet of Things (IoT) network by year, they said. company is aiming to bring the IP business integrating facial recognition technology, model to the arts and create an array of cameras and sensors to collect data for Flying cars that can zoom over products from Komatsu’s works. analysis of consumer behavior. congested roads are closer to reality than Komatsu is to visit HTC’s Taipei FamilyMart also benefits in the many people think. Start-ups around the headquarters to create artworks, during form of a smaller headcount and automatic world are pursuing small aircraft, which which she and her work would be recorded security. were until recently only in the realm of to create content for Vive users, Liu said. “This is another step forward for science fiction. The company has not ruled out bringing Innolux,” chairman Jim Hung told reporters With Japanese companies Komatsu’s VR works to HTC’s on the sidelines of a news conference in already trailing their global peers in smartphones, he said. Tainan. electric vehicles and self-driving cars, the The company on August 21 also “The company mainly sells government is showing urgency on the announced the launch of a wireless module panels to makers of TVs, mobile phones, or aircraft technology, stepping in to facilitate for Vive and Vive Pro, which allows users tablets. It is a B2B [business-to-business] legislation and infrastructure to help gain to untether their VR headsets from the PC. model. Now, we are expanding our reach to leadership.
12 Investment & Joint Ventures in the Region
Many have already had a head outsource the selection work mainly to UK-based mobile giant Vodafone was start in the race. Uber, which is to invest Bechtel. Cooperating with Bechtel on the looking for a buyer for its stake. 20 million euros (US$23.14 million) over operations will help curb costs, Hitachi It is not clear how any so-called the next five years to develop flying car said. merger of equals would be structured services at a new facility in Paris, has set Japan Times financially, but one ownership structure a goal of starting commercial operations of being considered would see TPG with its air-taxi business by 2023. Vodafone, CK Hutchison 50 percent of the combined entity and Kitty Hawk, a Mountain View, mull Australia Merger Vodafone and Hutchison with a 25 percent California-based start-up founded and stake each, a person familiar with the talks backed by Google cofounder Larry Page, said. in June offered a glimpse of an aircraft Taipei Times prototype: a single-person recreational vehicle. Qualcomm to Launch New Japanese Minister of Economy, Operations Hub in Taiwan Trade and Industry Hiroshige Seko this By Staff writer, with CNA month told reporters that flying cars could ease urban traffic snarls, help transportation in remote islands or mountainous areas at Bloomberg times of disasters, and could be used in the Vodafone Group PLC and CK tourism industry. Hutchison Holdings Ltd are considering Taipei Times combining their unprofitable mobile-phone US-based chip designer business in Australia with local broad-band Qualcomm Inc is to open a new operations Hitachi Selects Bechtel to Guide provider TPG Telecom Ltd as intensifying center in Taiwan early 2019 as part of its U.K. Nuclear Project competition forces rivals to consolidate. commitment to invest in the country over Vodafone Hutchison Australia Pty the next five years. and TPG Telecom Ltd are in “exploratory” Qualcomm senior vice president discussions about a deal, they said. and president of its Asia-Pacific and India TPG described it as a “merger of operations Jim Cathey on August 24 said equals.” that the company is to set up a Center for JIJI As competition intensified and Operations, Manufacturing Engineering Hitachi Ltd. has appointed major handset costs rose, Vodafone Hutchison’s and Testing in Taiwan as a hub for the firm U.S. engineering giant Bechtel Corp. as loss widened to A$92.3 million (US$67.7 to extend its reach overseas. the project management contractor for million) in the six months ended June from Qualcomm has built close a nuclear power plant it plans to build in A$81.5 million a year earlier, according to business ties with Taiwan and setting up Britain. Hutchison Telecommunications (Australia) a local operations hub demonstrates the The contract was concluded Ltd filings. company’s strong support for the nation between Horizon Nuclear Power Ltd., Average revenue per user at the in wireless communications development, a wholly owned Hitachi subsidiary, and joint venture fell 1.3 percent. which it expects to deepen the relationship, Bechtel, Hitachi said August 22. The venture has a troubled history Cathey said. Horizon and Bechtel will jointly in Australia. It has struggled to lose its Taiwan has a well-developed oversee management of the project. nickname “Vodafail” – after its network semiconductor industry, which has The deal “will get Bechtel gained a reputation for patchy coverage served as a center for providing upstream involved in the project more proactively and dropped calls. microchips for the supply chain in the and result in a cost cut,” a Hitachi official The tie-up would unite TPG, Asian region, Qualcomm said said. best known in Australia for its fixed- The planned hub shows the Horizon is to build two reactors at line broadband services, with Vodafone company’s determination to grow with the planned Wylfa Newydd power station Hutchison’s almost 6 million mobile Taiwan’s semiconductor industry and build in Wales. Construction is set to start in customers in the nation. a 5G ecosystem in the country, it said. 2020. Should the combined entity be Qualcomm said it would soon Under the deal, Bechtel will send listed in Australia, a transaction would shed launch a recruitment campaign for the about 200 employees to Horizon to jointly more clarity on the valuation of Vodafone operations hub. select subcontractors and equipment Hutchison. Taipei Times suppliers. That might help either party exit Earlier, Horizon planned to the venture after years of speculation that
13 Economic Cooperation News
Japanese Companies Bullish development assistance loan to a diplomatic on Thailand ally, the official said on condition of anonymity. NNA/KYODO The project, which would Japanese companies operating reportedly cost NT$4.5 billion (US$146.98 in Thailand are upbeat about the business million), is one of the initiatives being climate thanks to recovery in the discussed by a bilateral high-level task automobile sector and its spillover effects force that was established to draft new to other sectors, with a diffusion index for terms of cooperation in accordance with a the second half 2018 reaching the highest consensus reached between President Tsai Ing-Wen and Haitian President Jovenel level in six years. Australian Foreign Minister Julie Bishop (fore- The index for the direction of the Moise during his visit to Taiwan in May. ground, left) and Defense Minister Marise Payne business climate in the July-December The project includes the greet U.S. Secretary of State Mike Pompeo (cen- period rose to 40, up four points from the construction and renovation of substations ter) and Secretary of Defense Jim Mattis after an and transmission towers, as well as the Australia-U.S. ministerial consultation news con- first half of 2018, for the sixth straight half- ference in Stanford, California, on July 24, 2018. year improvement, according to a survey provision of maintenance training to local personnel, the official said. by the Japanese Chamber of Commerce, Cooperation and Australia’s Department of Both sides are keen to finalize Bangkok. It was the highest positive figure Foreign Affairs and Trade. negotiations on the project as soon as since the latter half of 2012 when the index “The partnership represents our possible, as improving Haiti’s power stood at 41. commitment to an Indo-Pacific region that supply was one of Moise’s key campaign According to the survey, is free, open and prosperous,” the three promises, the official said. the indexes for manufacturers and nations said in a joint statement issued on It is considering facilitating nonmanufacturers in the latter half of this July 30, according to Bishop. The trilateral trade through a public-private partnership year came to 36 and 45, up from 32 and 41 partnership will be formalized “in due model to better consolidate its relations from the first half, respectively. course,” Bishop said. with diplomatic allies, rather than simply Business sentiment in sectors Overnight, U.S. Secretary of State encouraging local businesses to invest in such as textiles, general machinery, Mike Pompeo announced $113 million in transportation machinery, trading and the nation’s allies, the official said. Taipei Times new U.S. investments in technology, energy retailers improved, while that in sectors and infrastructure for the Indo-Pacific like chemicals and construction fell. region in a speech to the U.S. Chamber of Hiroki Mitsumata, director of the Japan Agrees on Plan for Commerce. economic research group at the chamber Indo-Pacific Infrastructure Pompeo said the United States and head of the Japan External Trade “will never seek domination in the Indo- Organization’s Bangkok office, said, Bloomberg, Kyoto, Staff Report Pacific,” and that “we will oppose any “Automobile sales in the domestic and The United States, Japan and country that does.” overseas markets are recovering, bringing Australia agreed to invest in infrastructure In Tokyo, Chief Cabinet Secretary positive effects to other sectors.” projects in the Indo-Pacific, the Australian Yoshihide Suga said the partnership is Taipei Times government said, a move that will be seen in response to growing demand over as a counter to China’s rising influence in a “enormous infrastructure” inherent to the region that stretches from the east coast of Indo-Pacific region. Taiwan to Build Haiti Power Grid Africa to Hawaii. “Based on our free and open By Stacy Hsu “This trilateral partnership Indo-Pacific strategy, we will cooperate is in recognition that mores support is with relevant countries such as the U.S. Format: The project is to be financed via needed to enhance peace and prosperity and Australia and work toward developing an official development assistance loan, in the Indo-Pacific region,” Australian infrastructure there,” Suga said, echoing using a Taiwanese bank, with a Taiwanese Foreign Minister Julie Bishop said in an Bishop’s views that strengthened trilateral firm serving as contractor emailed statement. The pact will mobilize cooperation would “vastly” help improve Taiwan and Haiti are expected to investment in energy, transportation, peace and prosperity in the region. sign an agreement by the end of 2018 for tourism and technology infrastructure, Suga, however, flatly rejected the construction of a power grid in Port-au- according to the statement, which didn’t speculation that the framework is meant Prince, to alleviate the Caribbean nation’s give any funding details. to be a counter to China’s “One Belt, One energy supply problems, a high-level The pact will be organized by Road” initiative. government official said. the U.S. Overseas Private Investment Japan Times It would be Taiwan’s first official Corp., the Japanese Bank for International
14
Fairs & Exhibits in Asia-Pacific
DATES NAME OF FAIR COUNTRY DATES NAME OF FAIR COUNTRY 2018 (Further Information) 2018 (Further Information) 2-4 Heat Treatment 2018 (Mir-Expo, Ltd., Moscow 13-16 electronicAsia2018 (HKTDC, Tel: Hong Kong Oct. Tel: 7-495-988-1620, Email: Russia Oct. 65-6236-0988 Email: China [email protected], URL: [email protected], URL: http://www.htexporus.com/archive/heattr http://m.hktdc.com/fair/electronicasia-en eatment-2010.html) /electronicAsia.html) 2-4 Cityscape Global 2018 (Informa Dubai 15-17 IFAT India 2018 (Messe Munchen Mumbai Oct. Exhibitions, Tel: 971-4407-2626, Email: U.A.E Oct. GmbH / MM India Pvt. Ldt., Tel: India [email protected], URL: 49-89949-20296, Email: https://www.cityscapeglobal.com/en/ho [email protected] me.html) e, URL: http://www.ifat-india.com/) 2-4 Public Health 2018 (Premier Expo, Tel: Kiev 16-18 MTA Hanoi 2018 (Singapore Exhibition Hanoi Oct. 380-44-496-8645, Email: Ukraine Oct Services Pte Ltd, Tel: 84-28-3622-2588, Vietnam [email protected], URL: Email: [email protected], http://www.publichealth.com.ua/en-GB/) URL: http://mtahanoi.com/) 3-4 All-Energy 2018 (Reed Exhibitions Melbourne 17-20 IGEM 2018 (Malaysian Green Kuala Oct. Energy and Marine, Tel: Australia Oct. Technology Corporation, Tel: Lumpur / 44-208-271-2179, Email: 60-3-8921-0800, Email: Malaysia [email protected], URL: [email protected], URL) http://www.all-energy.com.au/en/) 17-19 Japan Robot Week 2018 (JARA, the Tokyo 3-5 Hi Japan (Health Ingredients) 2018 Tokyo Oct. Nikkan Kogyo Shimbun, Ltd., Tel: Japan Oct. (UBM Japan Co., Ltd., Tel: Japan 81-3-5644-7221, Email: 81-3-5296-1018, Email: [email protected], URL) [email protected], URL) 23-25 WETEX 2018 (Dubai Electricity & Water Dubai 5-7 SEMEDIC 2018 (Kimdaejung Gwangju Oct. Authority (DEWA), Tel: 971-4-515-1460, U. A. E Oct. Convention Center, Tel: Korea Email: [email protected], URL: 82-62-611-2217, Email: https://www.wetex.ae/) [email protected], URL) 23-25 GasSUF (ITE Moscow, Tel: Moscow 9-11 MINEX 2018 (Arka Hamayesh Pars Tehran Oct. 7-499-750-0828, Email: Russia Oct. Exhibition Co. (Expo Pars), Tel: Iran [email protected], URL: 98-21-8854-8845-9, Email: https://www.gassuf.ru/en-GB/) [email protected], URL: http://www.minex.ir/en/) 24-26 4th IoT/M2M Expo Autumn (Reed Chiba Oct. Exhibitions Japan Ltd., Tel: Japan 9-12 TAITRONICS 2018 – 44th Taipei Taipei 81-3-3349-8504, Email: Oct. International Electronics Show Taiwan [email protected], URL) (TAITRA, Email: [email protected], URL: 24-26 Food Fest 2018 (Key2Green Pvt. Ltd., Lucknow https://www.taitronics.tw/) Oct. Tel: 91-11-6551-5433, Email: India [email protected], URL: 9-12 Bursa Agriculture Fair 2018(Tuyap Bursa http://www.indiafoodfest.in/) Oct. Bursa Fairs Organization Inc., Tel: Turkey 90-224-211-5081-89, Email: 25-27 8th Agro Bangladesh Expo 2018 Dhaka [email protected], URL: Oct. (Extreme Exhibition & Event Solution Bangladesh https://www.cloudexpoasia.com/) Ltd., Tel: 88-02-9849646, Email: [email protected], URL) 10-11 Cloud Expo Asia (CloserStill Media, Singapore Oct. Tel: 44-24-7671-7151, Email: Singapore 25-28 2018 Kaohsiung International Food Kaohsiung [email protected], URL: Oct. Show (TAITRA, Tel: 886-2-2725-5200, Taiwan https://www.cloudexpoasia.com/) Email: [email protected], URL: https://www.foodkh.com.tw/en_US/inde 10-12 HAWTEC2018 (The Environmental Tokyo x.html) Oct. News, Tel: 81-3-3359-5349, Email: Japan [email protected], URL: 25-28 Eco Expo Asia (Hong Kong Trade Hong Kong http://www.hawtec.jp/e/index.html) Oct. Development Council / Messe Frankfurt China (HK) Ltd., Tel: 852-2238-9903, Email: 10-12 MEDICAL MYANMAR 2018 (Fireworks Yangon [email protected] Oct. Myanmar, Tel: 95-1-377381, Email: Myanmar m, URL) [email protected], URL: http://www.medical-myanmar.com/)
15 Policy Updates
Australia “designated area migration agreements,” With the increased budget for the he said. year starting in April 2019, the ministry Regional Push as Population Hits Accounting for births, deaths, aims to promote cashless transactions for arrivals and departures, a new person is small companies and the development of 25m in Australia added to the population every 83 seconds. advanced technologies such as artificial Taipei Times intelligence. THE GUARDIAN Specifically, the ministry plans to Uneven Distribution: Eighty-even percent spend ¥3 billion to help small businesses of the 111,000 new skilled migrants who Japan and other entities introduce cashless arrived in 2017 settle in Sydney and payment terminals and to standardize Melbourne, figures show Expanded Coverage Mulled for quick response, or QR, codes that currently With the Australian population Part-Timers vary among companies, according to the having ticked past 25 million people at JIJI sources. about 11pm on August 7, the government is The government plans to allow For research and development of seeking to encourage new migrants to live more part-time workers to join the AI, next-generation computers and other outside Sydney and Melbourne. corporate pension and health insurance technologies, the ministry hopes to allocate Of the 111,000 new skilled program, hoping it will reinforce the ¥27.9 billion. migrants who arrived in Australia in 2017 financial base for Japan’s overall pension It plans to spend ¥1.8 billion – the largest cohort of permanent arrivals – and health insurance systems, sources said for the cultivation of human resources, 87 percent settled in the two biggest cities. on August 8. promoting the provision of refresher “If the population was distributed Currently, part-timers who put in programs, for example, the sources said. more evenly, there would not be the at least 30 hours a week, or who work less To invigorate business in the field congestion pressures that we have today while still meeting certain wage conditions of social security, the ministry intends to in Melbourne and Sydney,” the text of at companies with at least 501 workers, are boost spending to ¥2 billion from ¥600 his speech to the Business Council said. covered by the employees’ pension and million in fiscal 2018. It plans to fund “However, at the moment, nearly all the insurance programs. experimental projects to offer products and migration is to our two largest cities.” In addition, part-timers working services to support the lives of dementia “Meanwhile, we have other parts at smaller firms can join the programs if patients. of Australia wanting more people. South their employers conclude relevant accords Japan Times Australian Premier Steven Marshall, for with labor unions. example, has said that they would like The Health, Labor and Welfare Japan’s First International an additional…15,000 migrants a year. Ministry is considering lowering the 501 Arbitration Center Debuts in Osaka I have regional mayors telling me they personnel threshold to instantly expand want hundreds more in their area. The the number of policyholders, and hopes JIJI Warrnambool Standard in western Victoria to change the rule in fiscal 2020, a source The Japan International Dispute recently had as their front-page headline: said. To this end, the ministry plans to set Resolution Center, the nation’s first facility ‘Wanted – 1,000 workers.’ the text read. up a panel of experts and employers in specializing in international arbitration to Tudge’s speech reiterated the September, the source added. settle disputes involving businesses, has government’s position that Australia Employers, however, may oppose opened in Osaka. depends on a significant skilled migrant the proposal on the grounds that the move The center began services May 1 intake, citing Australian Department of will increase their financial burdens, as under the management of an association Treasury figures that show a 1 percent they have to shoulder half of pension and that was formed in February by Osaka- increase in population correlates with a insurance premiums, people familiar with based lawyers and arbitration experts to 1 percent increase in GDP. Migrants add the issue said. to the tax base, fill employment gaps and Japan Times deal with disputes such as those between bring down the median working age. foreign companies from different nations. However, Tudge said that the International arbitration efforts METI Eyes 9.9% Budget Increase are arranged under a treaty signed by some government was looking at formal programs in Fiscal 2019 to push migration to regional areas where 160 countries. Decisions accepted by the there was demand for particular skills. disputing parties have the same force as JIJI court rulings. Customized labor agreements The Ministry of Economy, Trade – negotiated directly between a business The center, dubbed JIDRC-Osaka, and Industry will request a total budget of indirectly supports Japanese companies’ bringing in workers and the Australian ¥1.4 trillion for fiscal 2019, up 9.9 percent Department of Home Affairs – would be overseas business expansion through cuts from the previous year, sources with in their arbitration-related times and costs, extended to cover specific regional areas as knowledge of the matter said August 23.
16 Policy Updates as their representatives no longer need to criticized Myanmar’s treatment of the on islands and reefs – along with the rich travel abroad to seek alternative dispute Rohingya fishing grounds and potential fossil fuel resolutions. Malaysian Prime Minister deposits around them. “The closer you have (such a Mahathir Mohamad said he will seek to Mahathir cautioned against center), the better you can prepare and cancel multibillion-dollar Chinese-backed further militarizing the disputed body of fight,” and Osaka-based lawyer familiar infrastructure projects that were signed water by reiterating his call for warships to with arbitration said. “You will no longer by his predecessor as his government not be permanently stationed there. find yourself helpless in a faraway foreign works to dig itself out of debt, and he “We are all for ships, even country.” blasted Myanmar’s treatment of Rohingya warships, passing through, but not stationed International arbitration is Muslims as “grossly unjust.” here,” he said. “It is a warning to everyone. increasing across the world, winning Mahathir made the comments Don’t create tension unnecessarily.” widespread support. Favorable elements during a wide-ranging interview days Mahathir was scathing in his include its neutrality, flexibility, before the 93-year-old heads to Beijing for criticism of Myanmar, a country whose confidentiality and the fact that disagreeing his first visit there since returning to power inclusion into ASEAN he had pushed for parties’ home countries can be avoided for in an electoral upset in May 2018. Mahathir in 1997 despite concerns over human rights the resolution process. said he wants to maintain good relations abuses and protests by the US. In 2015, there were only two with China and welcomes its investment, “It is grossly unjust to do what cases of international arbitration in Japan, so long as the projects benefit Malaysia. they have done, killing people, mass according to the Paris-based International Mahathir said he wants to maintain murder, that’s not the way civilized nations Chamber of Commerce. Other Asian cases good relations with China and welcomes its behave,” he said. numbered 35 in Singapore, 11 in Hong investment, so long as the projects benefits The previous government strongly Kong and three each in India, South Korea Malaysia. supported the Rohingya, a persecuted and the Philippines. However, took his toughest stance minority in Myanmar who have fled by the JIDRC-Osaka is expected to yet on Chinese-backed energy pipelines and hundreds of thousands to Bangladesh after handle not only business disputes but also a rail project along peninsular Malaysia’s a crackdown in 2017 that some have called arbitration involving doping and other eastern coast that were struck by his ethnic cleansing. sports-related cases, as well as arbitration predecessor, Najib Razak, who faces trial Malaysia’s government has said of disputes between investors and states. on multiple charges related to the alleged the displacement of Rohingya is no longer The association of Osaka-based multibillion-dollar looting of the 1MDB a domestic issue for Myanmar, in a rare lawyers and arbitration experts plans to set state investment fund. departure from ASEAN’s non-interference up a center in Tokyo in time for the 2020 “We don’t think we need those policy in each other’s affairs. Summer Olympics. two projects. We don’t think they are He stopped short of committing Japan Times viable. So if we can, we would like to just Malaysia to taking in more Rohingya drop the projects,” he said from his office refugees, saying it already has “far too Malaysia in the administrative center of Putrajaya. many” legal and undocumented foreigners During his time in office, Najib in the country. drew Malaysia closer to China, which sees Taipei Times the nation as a key part of its ambitious One Belt, One Road global trade initiative. Philippines The former prime minister reached deals for the 688km East Coast Rail Link Philippine Envoy Upbeat on and the two gas pipelines in 2016. Southbound Policy Pipeline, Malaysia’s new government has already suspended work on the projects, Discloses Talks on Visas being built by Chinese state-backed By Staff Writer, with CNA companies, and called for drastic cuts in Malaysian Prime Minister Mahathir Mohamad The Cabinet’s New Southbound listens during an interview with The Associated their ballooning cost, which it estimates Press in Putrajaya on August 6. at more than US$22 billion. Some of that Policy is bearing fruit in the Philippines, money has already been paid and could be as Taipei and Manila are cooperating more Mahathir Wants to difficult to recoup. closely on agriculture, trade and investment, Scrap Chinese Deals Mahathir also urged China and education and healthcare, Manila AP, Putrajaya, Malaysia to respect the free movement of ships Economic and Cultural Office (MECO) Two projects: The Malaysian throughout the South China Sea, where Chairman and Resident Representative leader said a Chinese-built rail line and China and multiple Southeast Asian nations, Angelito Banayo said. energy pipelines were not needed. He also including Malaysia, have competing claims Banayo praised the government’s
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partnership or joint venture agreement with medium-sized enterprises, which it said are a Philippine cooperative to produce high- vulnerable to rising labor costs. value crops, Banayo said. However, Cheng said the In the field of cultural and increase was a conservative one, based educational exchanges, Banayo said that on evaluations of workers’ needs and the Philippine scientific high schools would ability of employers to pay higher wages. soon start offering Mandarin classes taught The wage hike would improve by Taiwanese teachers. workers’ welfare, which in turn would A MECO board of directors boost consumption and benefit of the Manila Economic and Cultural Office Chairman discussed the possibility of extending business sector, he said. and Resident Representative Angelito Banayo gestures during an interview at his office in Taipei the validity of visas given to Taiwanese Directorate-General of Budget, passport holders or giving officials and Accounting and Statistics (DGBAS) diplomats from Taiwan visa-free privileges, Minister Chu Tzer-ming said the wage policy of enhancing exchanges with Banayo said. hike would lift GDP growth by about 0.06 ASEAN members, saying that it is The board also discussed studying percentage points next year on higher especially welcome as it comes at a how much MECO could reduce visa fees consumption and boost consumer price time when regional partners need closer for Taiwanese applicants, he said. index (CPI) growth by 0.04 percentage collaboration. MECO officials from Manila points. It is important for nations in the visited Taiwan for talks with National The agency on Friday forecast Asia-Pacific region to bond together to Immigration Agency and Ministry of the economy would grow 2.69 percent this cooperate and coordinate their efforts so Foreign Affairs officials, Banayo said, year and 2.55 percent next year, with CPI that they will not be negatively affected adding that they would make a public likely to increase 0.93 percent next year. by the looming trade war between the two announcement once a decision is reached. Deputy Minister of Economic world powers, Banayo said. Taipei Times Affairs Kung Ming-hsin said the ministry He also said it is time for Taiwan Taiwan would provide assistance to SMEs to to look south, as for a long time, it focused improve their competitiveness as they seek on the US, the EU and East Asia. to deal with higher operating costs. “With this, it brings a lot of Ministers Defend The wage hike is expected reduce opportunities for smaller countries like the Minimum Wage Hike Plan the rate of return among local food and Philippines to partner with Taiwan,” he told By Staff writer, with CNA beverage business by no more than 0.24 reporters. percentage points from the current average Taiwan and the Philippines The government’s decision to of 11 percent, he said. signed a bilateral investment agreement increase the minimum wage in 2019 would Taipei Times in December in 2017, making it the first have little effect on companies’ bottom updated investment agreement that Taiwan line, the National Development Council Laws Being Changed to has signed with a country targeted by the (NDC) said on August 17. Aid Trade Partnership Bid New Southbound Policy. The minimum wage hike is By Lee Hsin-Fang and In September, the Philippines is to expected to raise companies’ operating William Hetherington launch Taiwanese agricultural machinery costs by about NT$39 billion (US$1.27 exports to Davao City on Mindanao Island, billion) a year, which is an insignificant The government is working Banayo said. amount, council Deputy Minister Cheng to amend laws it says will facilitate Many Taiwanese businesspeople Cheng-mount said. membership in the Comprehensive and regularly visit the Philippines to scout The Ministry of Labor’s Progressive Agreement for Trans-Pacific potential locations for Taiwanese announcement on Thursday that the Partnership (CPTPP) amid obstruction businesses, he said. minimum wage would be raised by 5 from China in its bid to join the trade pact. Manila is especially interested percent, from NT$22,000 to NT$23,100, China has asked member countries in learning from Taiwan’s experience and the hourly minimum wage would be to reject Taiwan’s bid, despite it not being a in fostering small and medium-sized increased by 7.14 percent, from NT$140 to member itself, but the Executive Yuan has enterprises, due to its leadership in the NT$150, on Jan. 1 next year, pending the said the nation’s own efforts will determine field, he added. Cabinet’s approval, triggered complaints the outcome of its application. In terms of promoting closer by the Chinese National Federation of The Executive Yuan has agricultural cooperation, Taiwan and the Industries. prioritized the amendment of five laws it Philippines are to launch a demonstration The federation said it was says are points of concern for the 11 CPTPP farm where Taiwanese technology is to be particularly worried about the effect members and has been meeting privately used under a partnership or joint venture a on the labor market and on small and with officials from those nations, including
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Japan, to garner support, Minister Without offered a “substantially better deal” for the Southeast Asia – would also be considered Portfolio John Deng said. US. mid-level skilled workers, the bill says. Premier William Lai has identified Joining the agreement is Foreign employees covered by the regulations that should be amended in important to expand Taiwan’s market draft act and their family members would the Trademark Act, the Patent Act, the access and put the nation on track with be able to apply for permanent residency Copyright Act and the Postal Act, and the international economies, Deng said, adding and naturalization after living in Taiwan for government is reviewing a draft act on that membership would also attract foreign seven years, it says. digital communications and broadcasts, investment. The legislation aims to establish Deng said, adding that the government Taipei Times minimum salaries of NT$41,393 hopes that the amendments will be passed (US$1,352) for foreign talent working in by the end of the year. NDC Unveils Draft Legislation to the industrial sector and NT$32,000 for The Executive Yutan is optimistic Boost Recruitment, Retention of those working in the social welfare sector. that the proposed changes can be passed Foreign Talent It would also allow businesses before the second round of membership By Staff writer, with CNA in designated industries – such as green negotiations, giving the nation a chance to technology, biopharmaceuticals, intelligent join the pact in 2019. The primary goal of the proposed machinery, artificial intelligence, cloud Taiwan had initially hoped to legislation is to boost the recruitment and computing and digital technology – to join the Trans-Pacific Partnership (TPP) – retention of mid-level skilled foreign talent employ foreign professionals regardless of which evolved into the CPTPP following in fields such as engineering, manufacturing the company’s size or capital. the withdrawal of the US – and at the time and information and communications Investment-linked immigration identified 12 legal amendments that would technology, the council said. was excluded from the draft act, because be necessary, Deng said, adding that seven The bill defines mid-level skilled Taiwan has already accommodative of those amendments have already been workers as foreign graduates of high regulations on for such immigration passed. schools or vocational schools in Taiwan, compared with other nations, NDC Deputy The US withdrew from the TPP workers who have been employed in the Minister Kao Shien-Quey said. in January 2017 and the remaining 11 nation for a certain number of years and Foreigners who invest at least members revived the deal as the CPTPP technical staff recruited from abroad. NT$15 million in a local company that in January. So far three of the member International students enrolled in employs at least five people or invest at countries – Mexico, Japan and Singapore – certain educational programs – such as the least NT$30 million in government bonds have ratified the agreement. Overseas Youth Skills Training Program or other financial products could apply for US President Donald Trump has or industry-university cooperation courses permanent residency after three years. said the US would rejoin if the agreement designed for students from South and Taipei Times
About CACCI The Confederation of Asia-Pacific Chambers of economic growth. Since its establiment in 1966, CACCI has Commerce and Industry (CACCI) is a regional grouping of grown into a network of national chambers of commerce with apex national chambers of commerce and industry, business a total now of 29 Primary Members from 27 countries in the associations and business enterprises in Asia and the Western region. It cuts across national boundaries to link businessmen and 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 member of the increasing regional business interaction, and enhancing regional Conference on NGOs (CoNGO), an 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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