CACCI Profi le Confederation of Asia-Pacifi c Chambers of Commerce and Industry

Vol. XXXX, No. 1 January 2017

CACCI names venue and co-hosts for 31st 2017 New Year’s Message Annual Conference from the President ACCI announced the venue and Cco-hosts of this year’s annual am very pleased to convey to all CACCI gathering during the recently-concluded Io fficers, members, associates and friends 30th CACCI Conference in Taipei. my sincerest and warmest wishes for the The 31st CACCI Conference will New Year. It is my ardent hope that the be held in Sydney, Australia within the incoming year will bring you more success program of the ICC World Chamber and happiness, and may it be more prosperous Federation’s (ICC-WCF) 10th World than the previous one. Chambers Congress (WCC) on Let me also take this opportunity to September 19-21, 2017. reiterate my gratitude to all Council members The 10th WCC is jointly organized for re-electing me as CACCI President for Continued on page 2 another term. It is certainly a distinct privilege for me serve this important position for two more years. Thank you very much for your continued faith and INSIDE THIS ISSUE confidence in my ability to once again assume the mantle of leadership of this fine organization. l CACCI schedules Planning We learned from our Taipei Conference in November last year that Committee meeting on March 2 over the past five decades of CACCI’s existence, a new economic reality has in Paris emerged in Asia. Many of the region’s economies grew significantly over l CACCI President invited to a the period, enabling Asia to rise as a dominant force in the global economy. roundtable discussion organized by This trend is most likely to continue in the decades to come, with the region’s Economic Chamber of Macedonia economies expected to continue to grow at an average annual rate of 5 percent, l Stable outlook for Asia despite leading global economic expansion. global uncertainties: ADB Hence, as we usher in the year 2017, I hope that every member remains l CACCI President joins B20 committed to the objectives of CACCI and to contribute to the further growth Germany Task Force on trade and of the Confederation. I would like to count on your continued support towards investments the fulfillment of the CACCI objectives. I look forward to your participation l B20 calls for open markets and in the 31st CACCI Conference to be held in Sydney in September 2017 within inclusive growth the framework of the ICC World Chamebr Federation’s 10th World Chamber l ICRT Radio Taiwan - Interview Congress, as well in the Presidential visits to a number of CACCI Primary with CACCI Advisory Council Members that I plan to undertake during the year. Let us take advantage of Chairman Mr. Kenneth Court and these opportunities to explore with one another on how best we can further CACCI President Jemal Inaishvili strengthen the bond that ties us together while promoting the region’s economic l CACCI President attends 2016 growth and development. G lob al D iasp ora B usiness May you all have a Happy and Prosperous New Year! Summit in Singapore l NZ Chambers of Commerce thank John Key Jemal Inaishvili l S ri L ank a Inv estment and President, CACCI Business Conclave 2017 to be held on May 30 - June 1 l Regular Features

1 CACCI schedules Planning Committee meeting on March 2 in Paris

his year’s CACCI Planning conjunction with the ICC World Further information (e.g., TCommittee Meeting is scheduled Chamber Federation’s 10th World agenda, discussion papers, hotel on March 2, 2017 and will be held Chambers Congress, which will be accommodation) will be sent to at the headquarters of the ICC World co-organized by the Sydney Business members upon confirmation of Chambers Federation in Paris. Chamber in September 2017. It will attendance. The meeting will primarily also review the progress of activities For interested parties, please email discuss preparations for the 31st under the CACCI Work Program for the CACCI Secretariat at cacci@cacci. CACCI Conference to be held in 2017. biz for more details. n

CACCI names venue CACCI President invited to a roundtable discussion . . . Continued from page 1 organized by Economic Chamber of Macedonia by the Sydney Business Chamber (SBC), a division of New South Wales anniversaries which are closely Business Chamber, and the ICC-WCF, connected to the Chamber’s priority in partnership with the Australian initiatives. For 2017, under the Chamber of Commerce and Industry auspices of H.E. Prof. Dr. George (ACCI) and CACCI. Ivanov, President of the Republic CACCI signed a partnership of Macedonia, the Chamber is agreement with the SBC and the ICC- ACCI President Mr. Jemal organizing a roundtable entitled WCF covering their collaboration in CInaishvili is being invited by the “Position of Small Countries in the the holding of the CACCI Conference Economic Chamber of Macedonia to International Economy: Advantages within the framework of the ICC WCF’s participate as speaker in a roundtable and Disadvantages.” 10th World Chambers Congress. on February 17, 2017 marking 95 years World renowned representatives The signing ceremony was held of Macedonia’s successful system of of scientific and business communities, during the 87th CACCI Council commercial chambers. both domestic and international are Meeting held on November 24, 2016 The Chamber has traditionally expected to attend the roundtable, in Taipei in conjunction with the 30th been organizing events to mark its which will be held in Skopje. CACCI Conference. The signatories were CACCI Director-General Amb. Victor C. Y. Tseng, ICC-WCF Director Mr. Anthony Parkes, and NSW Business Chamber Chief Operating Officer Mr. Darren Cocks. n

2 Stable outlook for Asia despite global uncertainties: ADB

conomic growth in developing consumption and public and private EAsia remains broadly stable, but investment, compared to lower growth a slight slowdown in India has trimmed forecasts in Brunei Darussalam, the region’s growth outlook for 2016, Myanmar, and Singapore. says a new Asian Development Bank The outlook in Central Asia is (ADB) report. maintained at 1.5% in 2016 and 2.6% In a supplement to its Asian in 2017, as the ongoing recession in Development Outlook 2016 Update the Russian Federation and low global report, ADB has downgraded 2016 commodity prices for oil and natural growth to 5.6%, below its previous this year will reach 5.8%, with a slight gas continue to dampen growth in the projection of 5.7%. For 2017, growth moderation to 5.6% in 2017. Growth subregion. remains unchanged at 5.7%. in the People’s Republic of China The Pacific will see growth of “Asian economies continue their (PRC) — the world’s second largest 2.7% in 2016, picking up to 3.3% in robust expansion in the face of global economy — is expected to hit 6.6% 2017. The fiscal contraction in Papua economic uncertainties,” said ADB this year, driven by strong domestic New Guinea — the Pacific’s largest Deputy Chief Economist Juzhong consumption, solid wage growth, urban economy — and recovery from recent Zhuang. “Structural reforms to boost job creation, and public infrastructure cyclones have weighed on growth in productivity, improve investment investment. The forecast for the PRC in the subregion. While cyclone damage climate, and support domestic demand 2017 is maintained at 6.4%. in Fiji has had a bigger impact on can help maintain growth momentum In Southeast Asia, growth its growth outlook than previously into the future.” forecasts remain unchanged at 4.5% in envisaged, prospects for Samoa, Combined growth for the major 2016 and 4.6% in 2017, with Malaysia Kiribati, and Tuvalu are improving industrial economies exceeded and the Philippines expecting stronger through improvements in fisheries, expectations in the Update, ticking up growth due to a surge in domestic infrastructure, and tourism. n 0.1 percentage point to 1.5% in 2016. Growth in 2017 is maintained at 1.8%. Robust consumer spending supported CACCI president joins B20 Germany the US economy, with supportive monetary policy and improved labor Task Force on trade and investments markets fueling growth in the euro area. Japan’s expansion, meanwhile, ACCI President Mr. Jemal actionable recommendations from will be buoyed by strong exports, CInaishvili was accepted as global business leaders to the G20 despite the stronger local currency. member of the B20 Germany Task on Leaders. ADB has downgraded the forecast Trade and Investment, and attended the The seven task forces and cross- in South Asia from 6.9% to 6.6% in first meeting of the Task Force held on thematic groups of the German B20 2016. Growth will bounce back in December 2 in Berlin. Presidency focus on: (a) Energy, 2017, reaching 7.3%. India’s tempered Mr. Inaishvili also participated in Climate and Resource Efficiency; (b) growth projection to 7.0% from the the B20 Conference on “Resilience, Digitalization; (c) Financing Growth and previously forecasted 7.4% in 2016 is Responsibility, Responsiveness – Infrastructure; (d) Trade and Investment; due to weak investments, a slowdown Towards a Future-Oriented, Sustainable (e) Employment and Education; (f) in the country’s agriculture sector, and World Economy” on December 1. Small and Medium Enterprises; and the lack of available cash due to the The B20 Conference brought (g) Responsible Business Conduct and government’s decision to ban high- together all Task Forces and Cross- Anti-Corruption. n denomination banknotes. This will Thematic Groups for joint conference likely affect largely cash-based sectors in Berlin. in the country including small- and The B20 – currently chaired by medium-scale businesses. The effects Germany - is a platform that serves as of the transition are expected to be an intermediary group between G20 short-lived and the Indian economy is governments and the international expected to grow at 7.8% in 2017. business community. Its primary The forecast in East Asia is mission is to deal with the urgent and maintained for 2016 and 2017. Growth significant global issues by developing

3 B20 calls for open markets and inclusive growth

embers of the B20, expressing have been growing. An increasing Mconcern about current anti- number of communities feel they are on globalization sentiments being the losing end of greater competition. witnessed in many countries around More and more people find it hard the world, urge governments to resist to adapt to a rapidly changing world. the temptation to resort to protectionist Business and governments must work measures such as trade barriers or together to deal with these concerns investment restrictions. and manage the transition. This is the message conveyed by First, this requires greater the statement that the B20 issued and transparency and more tangible shared with G20 Sherpas – composed communication on both the benefits of personal representatives of the of globalization and the drawbacks it heads of G20 member governments entails. Governments and businesses – prior to their first meeting under need to jointly ensure that trade and German presidency during the week of and positive effect on people’s lives: investment are not merely free but December 12. hundreds of millions of people have also fair. We need to jointly strengthen The B20 – currently chaired by been moved out of poverty and seen our efforts to improve education and Germany - is a platform that serves as their living standards and incomes lifelong learning to help people seize in intermediary group between G20 improve. This has been particularly new opportunities in a changing world. governments and the international evident in regions that have proactively Social protection systems, which business community. Its primary integrated into the world economy such ensure a safety net for people having mission is to deal with the urgent and as East and Southeast Asia. lost employment, active labor market significant global issues by developing Prosperity is the result of exchange policies, which support people getting actionable recommendations from – of ideas, goods, services, and finance. back to work, and a strong social global business leaders to the G20 The advantages of trade and investment partnership can help to make economic Leaders. are manifold: People can learn from growth more inclusive. This should Following is the complete text of each other both in business and beyond. provide the basis for independence and the B20 Statement on open markets and Production becomes more efficient individual fulfillment across the globe, inclusive growth: through specialization and economies for people of all backgrounds and “The B20 is deeply concerned of scale. Furthermore, the opening of educational experiences. about current anti-globalization markets strengthens competition. Both To tackle these challenges, there sentiments, which can be witnessed in benefit consumers, as their choice of are no easy solutions. Globalization many countries around the world. diverse and high quality goods and has brought new opportunities, but Increasingly, communities are services increases, while becoming it has not made the world simpler. voicing strong opposition to trade available at lower prices. Even if the answers are sometimes liberalization and international Increased openness benefits many difficult, one thing is clear: the investment. We need to take these aspects of economies and societies. challenges of globalization cannot concerns seriously and support More opportunities for exchange mean be solved within national borders. communities during times of change lower production costs, less resource The G20 is an important forum for and disruption. At the same time, consumption for production as well as international economic cooperation. seemingly easy solutions risk having technology and knowledge transfer. It represents about two thirds of the long-term negative consequences for Gains from trade can contribute to meet global population, across all levels business, workers, and consumers. major challenges of our time: migration of development, and more than three We urge governments to resist the flows, climate change, and global health quarters of global GDP. temptation to resort to protectionist risks. Globalization and sustainability Given its role, the G20 is the right measures such as trade barriers or are not mutually exclusive but rather forum to ensure that people around investment restrictions. mutually reinforcing. the world can continue to benefit Trade promotes prosperity However, globalization is also from open markets, while shaping worldwide. Between 1990 and 2014, accompanied by major challenges. globalization in a way that offers fair world trade increased about fivefold We are acutely aware that despite the opportunities to countries, companies, and global per capita income grew by overall benefits of trade and investment and citizens. The B20 stands ready to a factor of 2.5. This had a very real flows, anti-globalization sentiments assist the G20 in its efforts.” n

4 24, 2016. important and significant. DJ Paul Meador: We want to go back DJ Paul Meador: I believe that to be to the Marriot Hotel where the big true as well. Now, what other policies 3-day conference for the Confederation are you seeking or projects in the 50th of Asia-Pacific Chambers of Commerce anniversary conference. and Industry is on-going. We are very CACCI President Jemal Inaishvili: fortunate to have with us on the phone We are a non-government organization this morning Mr. Jemal Inaishvili from so we have 29 national chambers and Georgia. organizations from different countries ICRT Radio Taiwan - Mr. Inaishvili, congratulations on your and with different economies. None of Interview with CACCI 50th anniversary! them are at the same level of cost. Advisory Council Chairman CACCI President Jemal Inaishvili: We have strong economies and as Mr. Kenneth Court Thank you. well as weak economies present in DJ Paul Meador: Tell us something the CACCI organization. For us it is elow is the transcript of the about the organization itself for those important to continue these relationships Binterview with Mr. Ken Court who may not be familiar with it. between members, to exchange ideas, which aired on November 23, 2016. CACCI President Jemal Inaishvili: It and to be the platform for business and Reporter: Business leaders from will be a great pleasure, thank you. networking. 27 nations are meeting in Taipei to The organization was established in This is very important because even in celebrate the 50th anniversary the May 1996. At that time, it included today’s world with a lot of alternative Confederation of Asia Pacific Chambers Taiwan, Hong Kong, Japan, Korea sources for trade and networking, we of Commerce and Industry. and The Philippines. Since then, believe that the personal relationship CACCI membership includes national our organization has grown in the remains very important. chambers of commerce from a wide region and now we have 29 members, We continue doing so and are always range of Asian countries such as from including 2 from Taiwan. organizing this conference every year Turkey to New Zealand in the South The organization goes from New with gatherings and meetings for Pacific. Zealand to Russia. It also includes business leaders. Former CACCI President Kenneth Mongolia, Turkey, and Georgia, the DJ Paul Meador: You have so many Court who hails from Australia says that country that I am from and which is countries involved in your organization despite recent setbacks internationally, also a member of CACCI today. and it covers a vast area with different his organization remains bullish on the DJ Paul Meador: It is an interesting cultures. How do you keep it all regional economy. theme that you have for the anniversary together? Kenneth Court: Over the past 50 conference this year, “The rise of Asia: CACCI President Jemal Inaishvili: years, we have been strong promoters Taking a Bigger Role in the Global Actually you are right. If you consider of free trade and that has been the trend Economy.” Can that happen? the region, we are the biggest regional we have seen in globalization. But I CACCI President Jemal Inaishvili: organization by the population acknowledge the fact that there are some Yes, definitely because the Asian represented and the size of the losers. What you have seen in Brexit and economy is already the locomotive of economies. developments in America is a correction. the global economy. It is the industrial It is not an easy task but we have a Maybe it has gone a little bit too far. hub of the world, and this trend will small and very effective office here But as far as Asia is concerned, in the definitely continue. We believe so very in Taipei since the establishment of last twenty years we have gone from much. CACCI. 25% of the World’s GDP to 40%. And DJ Paul Meador: Some difficult things The CACCI Secretariat is based in the South East Asian countries are are happening around the world. There Taipei. It is a big task of course. But as going to be the ones who generate the is a new president of the United States. I said we have a good, small and very growth not just within the region but There is also Brexit in Britain. There is effective staff. internationally. a lot of difficulty around the world. DJ Paul Meador: Mr. Inaishvili. We CACCI President Jemal Inaishvili: really appreciate taking time out of ICRT Radio Taiwan – Yes, but the world will grow anyway, your busy schedule. I know how busy Interview with CACCI even when considering a slow-down in it is today and tomorrow as well when President Jemal Inaishvili the world economy, with commodity the conference wraps up. We wish you prices at the lowest levels compared all the best. Thank you. he following is the transcript of to previous years. But the world has CACCI President Jemal Inaishvili: Tthe interview with Mr. Jemal to grow, the economy has to grow Thank you very much. Thank you. I Inaishvili broadcasted on November anyway. The role of Asia will be very wish you the best too. n

5 Chamber Personality CACCI President attends 2016 Global Shafei elected as Iran Diaspora Business Chamber president Summit in Singapore

Gholam Hossein Shafei was recently elected as the head of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA). Shafei gained the top position in the Iranian Chamber of Commerce by winning 198 votes versus his rival Masoud Khansari with 194 votes. Gholam Hossein Shafei had previously chaired Iran Chamber of Commerce. He served as vice president for 2 terms. ACCI President Mr. Jemal Iran Chamber names CInaishvili was invited as one new Deputy President of the speakers at the 2016 Global for International Affairs Diaspora Business Summit (GDBS) held on November 28-29, 2016 in Singapore. The GDBS is designed to provide a platform for successful diaspora global entrepreneurs to meet and discuss mutually beneficial business opportunities available in the region. The theme of GDBS 2016 is “One Belt One Road”. Invited speakers shared insights on opportunities brought about by the One Belt and One Road Initiative and the impact The Iran Chamber of Commerce, on the economies of China, ASEAN Industries, Mines and Agriculture and India. The Global Diaspora (ICCIMA) named Dr. Mohammad Reza Business Summits are organized by Karbasi as its new deputy president for The GA Group Pte Ltd., of which Mr. international affairs. George Abraham is the Chairman and Dr. Karbasi concurrently serves as Managing Director. The GA Group Pte secretary general of the Iranian National Ltd. is a Lifetime Special Member of Committee of Economic Cooperation CACCI and Mr. Abraham is Chairman Organization (ECO) Chamber of of the CACCI SME Development Commerce and Industry, and director Council. CACCI was one of the general of Islamic Chamber Research Supporting Organizations of this year’s and Information Center (ICRIC). Summit. n

6 PRODUCT & SERVICE COUNCILS

Young year for best use of global social SMEs in the Asia-Pacific region, Entrepreneur Group networking platforms. which derive an average of more of Asia Pacifi c The campaign projected Goa, a than 68 percent of their revenue from state in the south western part of India, exports, are capitalising on the growth Korea’s startup scene as a perfect tourist destination through potential of other markets in the region. begins to diversify, an interesting digital campaign. Karen Reddington, president of reach beyond its own Goa’s Tourism Minister Dilip FedEx Express in the Asia-Pacific borders Parulekar congratulated team Adfactors region, said research showed that PR for the efforts made to help Goa despite challenging global economic gain recognition nationally and conditions, SMEs in the region were internationally through platforms like tapping other Asian markets for growth digital media which is vitally important opportunities. to showcase the best of Goa’s facets “What emerges is a broadly and other attractions in the state. optimistic picture, with SME exporters The Korean government is in the region planning to embrace extending Korea’s international reach technology and the digital economy to in startup circles through initiatives help overcome a wide range of business like its fintech bridge with the UK. It’s challenges, from higher production also encouraging international startups costs to increasing competition,” she to enter Korea through programs like said. Vietnam News K-Startup Grand Challenge. Seoul city government is also out The campaign was driven to Asian ICT Council to attract globally minded entrepreneurs showcase the best of Goa’s locales and has established Seoul Global and partner with Goa’s finest brand Plans to set up Startup Center to directly support ambassadors: The Tourists. Malaysia’s ICT foreigners who want to start up in or It was driven exclusively with Federation underway expand to Seoul. the intention to raise credibility of In 2013 the Korean government travelling in Goa, engage directly partnered with the nation’s largest with influential travelers, increase conglomerates to boost Korea’s recall value for Goa Tourism with economy and grow its startup unique travel experiences and generate ecosystem. Under this initiative $2 maximum awareness through partnered billion dollars annually was invested in content. Times of India a raft of support initiatives, including The National ICT Association matching funds, startup conferences, Asian SME Council (Pikom) chairman Chin Chee Seong overseas acceleration, domestic said that plans are underway to mentorship programs, and more. Half of Asia-Pacific set up the Malaysia Information Recently K- Startup Grand SMEs predict growth in Communications and Technology Challenge provided 40 foreign startups exports: survey (ICT) Federation. with grants and acceleration in Seoul. If all goes well, the federation will Additional funding of up to $130,000 be established by end of 2017, Chin was provided for 20 startups with the added. highest growth potential. Venture Beat “The objective is for all the ICT related association to come together Asian Council on to be part of the federation, so that Tourism Nearly half of small- and medium- the industry has a bigger voice in the size enterprises (SMEs) in the Asia- country,” Chin told Digital News Asia Goa Tourism bags Asia- Pacific region say that their revenue in Petaling Jaya recently. Pacific Sabre award from intra-regional exports will grow Currently, there are several Goa Tourism’s campaign ‘Tourism over the next 12 months by an average associations that are related to the tech by Tourists’ recently won the Asia- of 22 percent, according to a global industry – which in some ways may Pacific Sabre In2 award which attract research survey conducted by FedEx make the industry rather segregated. close to 5,000 entries globally each Express. Digital News Asia

7 ECONOMIC COOPERATION NEWS Japan, Russia agree of Asia’s fastest-growing economies. about five months after a memorandum on economic ties; Despite its small size, Singapore of understanding was inked — was stalemate on territory is the Philippines’ fourth-largest trading signed by Coordinating Minister Russia and Japan agreed on partner, after giants the United States, for Infrastructure and Minister for December 16 to hold talks on joint China and Japan. The Straits Times Transport Khaw Boon Wan and economic development of four islands Malaysian Minister in the Prime at the center of a decades-old territorial Mongolia to build oil Minister’s Department Abdul Rahman dispute between the countries. refinery through loan Dahlan. The signing was witnessed by It was a small step forward that from Indian government Prime Minister Lee Hsien Loong and fell far short of breaking the stalemate The first oil refinery will be his Malaysian counterpart Najib Razak. in a dispute that has prevented Russia built in Mongolia, with the loan to be Both countries will call a joint and Japan from signing a peace treaty granted by the Indian government. tender for a privately financed assets formally ending their World War II Within the framework of a general company to design, build, finance hostilities. loan agreement between the Mongolian and maintain the rolling stock and rail Joint development “would help government and Export-Import assets, such as the track work, power, foster trust toward a peace treaty,” Bank of the Republic of India for the and signaling and telecommunications Russian President Vladimir Putin said issuance of a loan worth $1 billion, an systems. Today Online at a news conference with Japanese oil refinery will be built in Sainshand Prime Minister Shinzo Abe after two Soum (District) of Dornogobi Aimag Cambodia, Philippines days of meetings in Japan. (Province) in Mongolia. ink tourism, sports Asked about developments Total investment in the project is agreements in Syria, Putin said he and Turkish worth $1 billion, of which $0.7 billion Cambodia and the Philippines President Recep Tayyip Erdogan are is for building the oil refinery, while signed several cooperation agreements working to launch a new round of $264 million is for the oil pipelines. on December 14 amid a state visit by peace talks in Astana, the capital of The oil refinery is projected to Philippine President Rodrigo Duterte, Kazakhstan. New York Times generate a net profit of $43 million including those on tourism, sports per year from its annual sales of $1.2 exchanges and combating transnational Singapore and billion and is expected to recover crime. Philippines moving to the investment in 8-10 years. After The memoranda of understanding boost economic ties establishment of the oil refinery, were signed shortly after talks between Singapore and the Philippines the imports of oil products will be Duterte and Cambodian Prime Minister are taking steps to boost economic decreased by $1 billion and currency Hun Sen, according to the latter’s cooperation, with local companies outflow will drop by 20 percent, and spokesman Ieng Sophalette. encouraged to venture beyond its the dollar by 18-25. GoGo Mongolia Regarding the one on tourism, capital, Manila. Philippine Tourism Secretary Wanda Cities such as Davao and Cebu Singapore, Malaysia Corazon Tulfo-Teo said it focuses on are among prospective places they sign historic high-speed air connectivity. are urged to consider by International rail deal “We would like to have a direct Enterprise (IE) Singapore, the agency The Kuala Lumpur-Singapore flight from Phnom Penh to the that promotes international trade and High-Speed Rail (HSR) bilateral Philippines because right now we don’t partners Singapore companies in going agreement was signed in Putrajaya have one,” Teo said, pointing out that global. on December 13, setting the stage for the only direct flight now is between IE Singapore is also devoting the project’s design and construction the northern Cambodian city of Siem more resources to step up its presence before service begins by 2026. Reap and Manila. in the Philippines next year, President Billed as a game changer, a “If we have direct (Phnom Penh- Tony Tan Keng Yam said yesterday. marquee project and a momentous Manila) flight, I’m sure that the He was speaking at a banquet in the agreement by leaders of both countries, arrivals of Cambodian people to the Istana in honour of Philippine President the HSR will take travellers from Philippines will increase,” she said, Rodrigo Duterte, who is on a two-day Singapore to Kuala Lumpur in 90 adding that “right now what we have state visit to Singapore. minutes, with operations targeted to is only around 2,000 to 3,000 a year” Dr Tan said Singapore companies begin by Dec 31, 2026. compared with around 70,000 Filipinos are keen to invest in the Philippines, one The agreement — which came going to Cambodia. Bangkok Post

8 NZ Chambers of Commerce thank John Key

rime Minister John Key is to be Pcongratulated on his service to New Zealand. As the leader of the National Party for 10 years, and Prime Minister for eight, he emphasized the importance of business to the economy, and under operate, by providing training, advice, his leadership the country has enjoyed NZ Prime Minister John Key information and support. The Chambers the fruits of a strong economy despite of Commerce also acts as a voice and a sometimes very shaky international Minister, and wish him all the best for advocate to help members; to provide economic environment. his future endeavours. a range of opportunities, products, New Zealand developed strong services and membership savings; free trade agreements and gained a About the NZ Chambers of Commerce and to support businesses in their high profile on the international stage The 3 0 member Chambers growth and success. The organisation thanks largely to his ability to build represent more than 22,000 business is divided into four hubs: Northern, relationships with other leaders and members across New Zealand. As not- Central, Canterbury and Southern. promote New Zealand as a destination for-profit membership associations, They are affiliated with 22,000 for tourism and for ease of doing they promote, support and encourage Chambers internationally through the business. sustainable, profitable business International Chamber of Commerce. The New Zealand Chambers growth by positively influencing the Wellington CC and New Zealand CC thank Mr Key for his service as Prime environment in which businesses Inc. Media Statement n

Sri Lanka Investment and Business Conclave 2017 to be held on May 30 - June 1

ACCI members are invited to Cattend the “Sri Lanka Investment and Business Conclave 2017” to be held on May 30 – June 1, 2017 in Colombo, Sri Lanka. Focusing on the theme Growth through Partnerships,” the three- day event is organized by the Ceylon Chamber of Commerce (CCC), in cooperation with the Ministry of Foreign Affairs, and will take place at the Cinnamon Grand Hotel. The main objective of this event is to attract foreign business partners to visit Sri Lanka, attend the event and meet potential business partners with a view of establishing partnerships. For more information on the Conclave, interested parties may wish to visit the event website at: http:// www.invest-srilanka.lk n

9 INVESTMENT & JOINT VENTURES IN THE REGION y Banyan Tree set to tie up with global hospitality giant for Panda Express said the company is counting on its Accor - AccorHotels will invest $17 million in Singapore new partner to provide “strategic insight” into the market. company to jointly develop its brands around the world. Nikkei Asian Review Banyan Tree Holdings, a Singapore-listed company, has unveiled y SIA and Lufthansa get all-clear to jointly plan Asia- a 24 million Europe flights - Singapore Airlines (SIA) and Lufthansa Singapore have received the official nod to jointly plan flights and dollars ($1 7 schedules, as well as price and sell seats between Asia million) plan and Europe. This is after to tie up with they promised not to cut hospitality giant capacity, especially on AccorHotels, in the two routes that they a move which could eventually see the latter own up to dominate - Singapore- 10 percent of Banyan Tree. Under a long-term partnership Frankfurt and Singapore- proposed under a heads of agreement, the two parties Zurich. The airlines intend to work together to develop and manage Banyan will also work together on flight planning and marketing Tree branded hotels around the world, the company said activities for other Asia-Europe flights. These include in a statement to the Singapore Exchange. Banyan Tree — flights from Singapore, Indonesia, Malaysia and Australia, with 43 hotels and resorts, 64 spas, 77 retail galleries, and to points in Germany, Austria, Switzerland and Belgium. three golf courses in 28 countries — will also have access The tie-up also includes revenue sharing on routes from to AccorHotels’ global reservations and sales network, as Singapore to the European cities of Frankfurt, Munich, well as its loyalty programme Le Club AccorHotels. The Dusseldorf and Zurich. In giving the all-clear for the Straits Times partnership, Singapore’s competition watchdog set the condition of maintaining capacity to mitigate concerns y Panda Express takes second shot at Japan - Known best that if allowed to freely cooperate, the two airlines could for its presence in suburban American shopping mall food deliberately cut seats to increase fares. The Straits Times courts, Panda Express, the California-based chain raised eyebrows when it opened several locations in New York y Bayer, Versant invest US$225 million in biotech City last year. In a city known for boasting some of the venture - German healthcare group Bayer said on top restaurants in the world, Panda Express’ Americanized December 12 that it has set up a joint venture with U.S. version of Chinese fare did not seem like a natural fit and life sciences venture capital firm Versant Ventures to the company had invest US$225 million in a stem cell therapy firm based previously retreated in Toronto. The companies said the financing, one of from New York in the largest ever for 2001 after a four- an initial round year effort. But in of venture capital the past year, the funding for a biotech chain has opened company and the three locations biggest of its kind in M anhattan, in Canada, will replacing the signature no-frills seating and fluorescent allow scientists to focus on research and development lighting typical of its food court outlets with sleek, of treatments for cardiovascular disease and modern decor. Now the company is attempting a similar neurodegenerative disorders over the next four years. “The feat in Japan, where it opened a branch in a mall food scientists can really focus for four years on bringing this court in Kawasaki, south of Tokyo, in late November and a huge step forward, instead of struggling for financing is preparing to add several more locations. As in New every other year,” said Axel Bouchon, who heads the York, this will be Panda Express’s second attempt to crack Bayer Life Science Center. The venture, BlueRock Japan. Panda Express previously opened a handful of Therapeutics, is expected to initially employ 30 to 40 outlets in Japan, but by 2010 they had all been shuttered. people in Toronto, and 70 to 80 people worldwide. It will For the new push, Panda Restaurant Group established be based primarily out of Toronto’s MaRS Discovery a joint venture with Chikara no Moto, the management District, one of the world’s largest innovation hubs. group which controls ramen chain Ippudo. A spokesperson Channel News Asia

10 CACCI Profile, January 2017 FAIRS & EXHIBITS IN ASIA-PACIFIC

DATES NAME OF FAIR VENUE 17-19 Indonesia Senior Expo 2017 (PT. Jakarta 2017 (Further Information) Feb. Sinar Expo Prima, Tel: 62-21-314-1970, Indonesia Email: [email protected], URL: 1-4 Int’l Engineering Services and Tehran sinarexpoprima.com/sinar) Feb. Consulting Exbn (Nonjanrad Co., Ltd., Iran Tel: 98-21- 2269-3734, Email: v.elmi@ 20-22 Int’l Exbn for Textile Manufacturing Moscow nojanrad.ir, URL: ices-expo.com) Feb. and Processing (Expocentre, Tel: Russia 7-499-795-2514, Fax: 7-499-795-2751, 1-5 Int’l Jewellery Exbn (Restec Exbn Co., St. Peters- Email: [email protected], Feb. Tel: 7-812-303-9860, Fax: 7-812-303- burg URL: www.inlegmash-expo.ru) 9869, Email: [email protected], URL: Russia eng.rjexpert.ru) 20-22 BeautyAsia 2017 (LINES Exbn Pte Ltd., Singapore Feb. Tel: 65-6299-8611, Fax: 65-6299-8633, 2-4 Int’l Engineering & Technology Fair New Delhi Email: [email protected], URL: Feb. (Confederation of Indian Industry, Tel: India www.beautyasia.com.sg) 91-124-401-4060-67, Email: roy.jacob@ cii.in, URL: www.ietfindia.in) 21-24 HCJ 2017 – Hoteres / Caterex / Food Tokyo Feb. Service Equipment Show (Japan Japan 6-9 Tehran Int’l Tourism Exbn (Tehran Tehran Management Assn., Tel: 81-3-3434- Feb. Int’l Trading & Exbn Corp., Tel: 98-21- Iran 1377, Email: [email protected], 2239-7540, Email: [email protected] , URL: www.jma.or.jp/hcj/eng) URL: www.titexgroup.com) 22-23 Agri-Food Expo Osaka (Exhibition Osaka 6-10 Int’l Exbn for Food, Beverages and Moscow Feb. Technologies, Inc., Tel: 81-3-5775- Japan Feb. Food Raw Materials (Expocentre, Tel: Russia 2855, Fax: 81-3-5775-2856, URL: 7-495-649-8810, Email: sup@expo www.agri-foodexpo.com/english) centr.ru, URL: www.prod-expo.ru) 22-24 Australiasian Oil & Gas Exbn Perth 8-10 Tokyo Int’l Gift Show (Business Tokyo Feb. (Diversified Communications Australia, Australia Feb. Guide-SHA, Inc., Tel: 81-3-3843-9851, Japan Tel: 61-3-9261-4500, Email: aog@info Email: [email protected], URL: salons.com.au, URL: aogexpo.com.au) www.giftshow.co.jp) 22-24 Int’l Rubber Expo (Enterprising Fairs HCMC 8-10 SEMICON Korea 2017 (SEMI, Tel: Seoul Feb. India Pvt. Ltd., Tel; 91-44-2250-1985, Vietnam Feb. 82-2-531-7800, Email: semiconkorea Korea Email: [email protected], URL: www. @semi.org, URL: www.semiconkorea. rubexpo.com) org/ko) 23-25 LOHAS EXPO - Lifestyle Of Health Hong Kong 14-15 eCommerce EXPO 2017 Tokyo (UBM Tokyo Feb. And Sustainability (Inspire Advertising Feb. Japan Co., Ltd., Tel: 81-3-5296-1020, Japan & Marketing Ltd., Tel: 852-3520-3617, Email: [email protected] , Email: [email protected], URL: www.ecommerceexpo-japan.com) URL: www.lohasexpohk.com) 15-17 South Asia’s Leading Travel Show New Delhi 23-25 WATER EXPO 2017 (Water Today Chennai Feb. (UBM India Pvt. Ltd., Tel: 91-22-6172- India Feb. Pvt. Ltd., Tel: 91-44-4291-6900, India 7181, Email: Surendra.Singh@ubm. Email: [email protected], URL: com, URL: www.satte.in) waterexpo.biz) 15-17 nano tech 2017 (ICS Convention Tokyo 23-26 Int’l Textile & Garment Machinery Dhaka Feb. Design, Inc., Tel: 81-3-5657-0760, Japan Feb. Exbn (Chan Chao Int’l Co., Ltd., Email: Bangladesh Email: [email protected], URL: [email protected], URL: www. www.nanotechexpo.jp) bangla-expo.com/DTG) 15-18 Int’l Plastic, Packaging and Printing Dhaka 23-26 SPOEX 2017 – Seoul Int’l Sports & Seoul Feb. Industrial Fair (Chan Chao Int’l Co., Bangladesh Feb. Leisure Industry Show (K.Fairs Ltd., Korea Ltd., Tel: 886-2-2659-6000, Email: Tel:82-2-555-7153, Email: spoex@ [email protected], URL: kfairs.com, URL: spoex.com/eng) www.bangla-expo.com/IPF) 24-26 Int’l Flora Expo 2017 (Media Today Pune 15-18 Int’l Trade Exbn for Food & Beverage Antalya Feb. Group, Tel: 91-11-2953-5593, Email: India Feb. (Antalya Expo Center, Tel: 90-242-462- Turkey [email protected], URL: www. 2000, Email: [email protected], URL: floraexpo.com) www.anfasfoodproduct.com) 24-26 Myanmar Agriculture & Food Expo Yangon 16-18 HK Int’l Fur & Fashion Fair (HK Fur Hong Kong Feb. (MiTA, Tel: 95-94201-10451, Email: Myanmar Feb. Federation, Tel: 852-2367-4646, Fax: [email protected], URL: 852-2739-0799, Email: [email protected], agriculture-food.mitamyanmar.com) URL: www.hkff.org)

11 CACCI Profile, January 2017

TECHNOLOGY Wireless sensor that anything unusual can be detected. are able to function for days. Eco technology to help keep She can also press an emergency Business an eye on elderly button, which will trigger an alert to her family. Channel News Asia residents Japan plans supercomputer to leap Coming of age: Robots in into technology future farms

An emergency button which will trigger an alert to family members when pressed. (Photo: ConnectedLife) Japan plans to build the world’s A pilot trial for wireless sensor Robotics researchers from the fastest-known supercomputer in a bid technology has been launched in two Australian Centre for Field Robotics to arm the country’s manufacturers HDB studio apartments to track (ACFR) are deploying robots to do with a platform for research that elderly residents’ movements. high-precision farming; saving crops, could help them develop and improve The new technology has sensors avoiding unnecessary use of chemical driverless cars, robotics and medical that can detect movements as well as pesticides and fertilizers, and helping diagnostics. track sleeping patterns such as farmers do more with less work. The Ministry of Economy, Trade snoring and breathing. It also has a “We are starting to see more and and Industry will spend 19.5 billion remote server that is paired to the more robots on the farm, doing farm yen ($173 million) on the previously phones of families and caregivers. tasks and eventually, we are going to unreported project, a budget It has been installed in two get to the stage where you see breakdown shows, as part of a studio apartments in Golden Clover, semi-automated or even fully government policy to get back Japan’s Block 196 Kim Keat, as part of a trial automated farms happening,” Salah mojo in the world of technology. The that aims to improve home care for Sukkarieh, director of research and country has lost its edge in many the elderly. innovation at the ACFR, said during electronic fields amid intensifying Madam Ng Siew Eng, 78, has the Falling Walls conference (7-11 competition from South Korea and been living alone in her studio November) in Berlin. China, home to the world’s current apartment since last year. When she The robots are equipped with best-performing machine. first moved in, she was scared of instruments that collect In a move that is expected to vault living alone. “If I fell, no one would hyper-spectral and multi-spectral Japan to the top of the super- know,” she said. images and infrared, thermal and computing heap, its engineers will be There is an alarm system in her laser data. This information is then tasked with building a machine that can home, which requires her to pull a fed into machine learning algorithms make 130 quadrillion calculations per cord in times of emergency to alert that enhance the robot’s performance. second - or 130 petaflops in scientific the authorities. But now a more Other tools such as precision parlance - as early as next year, sources reliable system is being tested. nozzles allow them to target specific involved in the project told Reuters. Madam Ng’s flat has been fitted plants for the application of At that speed, Japan’s computer with wireless sensors that can track pesticides and fertilisers, dramatically would be ahead of China’s Sunway her daily movements and establish cutting chemical use. Powered by Taihulight that is capable of 93 her normal movement patterns, so solar panels, robots such as RIPPA petaflops. Reuters

Published monthly by the Secretariat, Confederation of Asia-Pacific Chambers of Commerce and Industry Victor C. Y. Tseng, Director General; Amador R. Honrado, Jr., Editor Jacqueline Uy, Associate Editor; Wendy Yang, Contributing Editor; Julia Hsu, 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] / [email protected] ; Website: www.cacci.biz

12 CACCI Profile, January 2017 POLICY UPDATES (A compilation of rules, laws and policies on trade and investments in CACCI member countries)

Australia the management of business investment reduce revenue losses due to the projects, as it seeks to streamline evasion of taxes on capital gains. Australia softens ‘backpacker tax’ on government functions to grant greater After amending its tax treaties with foreign workers Australia recently watered down power to the market. Mauritius and Cyprus in early 2016, plans for a “backpacker tax” on The 24-clause regulation states that India revised its Double Taxation foreigners on working holidays after an business projects that fall into the Avoidance Agreement (DTAA) with outcry from farmers and tourism categories related to national security, Singapore, with the aim of ending operators. development of strategically important double non-taxation and curbing Canberra had been under resources and major public interests will revenue losses owing to the evasion of increasing pressure to shelve the tax — require prior government approval. taxes on capital gains. A$0.325 for every dollar earned — The approval should not, in In line with the changes in earlier amid fears it would deter tourists from principle, take more than 20 working revised treaties with the two other choosing the country as a destination. days, according to the regulation. countries, India and Singapore have About 600,000 backpackers travel Projects outside the stated sectors amended the Third Protocol of the to Australia every year, many of them will require a less stringent filing India-Singapore DTAA, with effect finding work picking fruit, and farmers process, to be put on record only. The from Apr 1, 2017, to provide for had complained bitterly that the tax regulation, released under a decree source-based taxation of capital gains could affect labor supply at harvest time. signed by Premier Li Keqiang, will arising from the transfer of shares in a “We recognize absolutely the come into effect from Feb 1, 2017. company as against residence-based China Daily important part that backpackers play in taxation of capital gains at present, according to a release from the finance the overall tourism industry,” Australian Hong Kong Treasurer Scott Morrison told reporters ministry. Hong Kong finance chief vows to boost in Canberra. AFP As per the revised DTAA, consumption amid sales slump investments in shares made before Apr Bangladesh The government plans to beef up 1, 2017, have been grandfathered, local consumption this year to mitigate Bangladesh clears four more economic subject to fulfilment of conditions in the economic risks arising from global zones Limitation of Benefits (LoB) clause as In a bid to create more jobs and uncertainty at a time when the city’s per the 2005 Protocol. The Statesman retail slump is worsening. spur growth, Bangladesh has cleared Japan four more economic zones to be Acting Financial Secretary operated by the private sector. Professor Chan Ka-keung told a Japan plans record $830 billion The approval came on January 4 Legislative Council meeting on January spending in financial year 2017/18, during a meeting of the Bangladesh 2 that the city’s economy faced budget-balancing goal elusive Economic Zones Authority (BEZA), mounting external uncertainties Japan’s cabinet approved on chaired by Prime Minister Sheikh Hasina. associated with the trade policy of US December 22 a record $830 billion The Prime Minister’s press president-elect Donald Trump and a spending budget for fiscal 2017 that secretary Ihsanul Karim told the media strong Hong Kong dollar. counts on low interest rates and a weak after the meeting that the new economic This came as retail sales reversed yen to limit borrowing, underscoring zones will be set up in the districts of gear, with the figure for November the challenge Tokyo faces in curbing Madaripur, Faridpur, Noakhali and dropping 5.5 percent from 2.9 percent the industrial world’s heaviest debt Kishoreganj. in October and 4.1 percent in September burden. He quoted the prime minister as as tourists tightened their belts. The 97.5 trillion yen ($830 billion) saying that the government’s initiative “The focus of economic general-account budget for the fiscal for industrial blocks aims to protect development in the coming year is to year starting on April 1 marks an farm lands from unplanned expand domestic demand,” Chan said. increase of 733 billion yen from this South China Morning Post industrialization. BDNews24 year’s initial plan due to a rising social security bill to fund the cost of services China India for a fast-ageing society. The budgeted plan highlights a China details regulation on business India revises Double Taxation struggle Prime Minister Shinzo Abe investment management Avoidance Agreement with Singapore The Chinese government, on India has revised its double faces in curbing spending, which is a December 15, released a regulation on taxation agreement with Singapore to key to his ambitious aim of achieving a CACCI Profile, January 2017

POLICY UPDATES

primary budget surplus - excluding debt currency after the yuan, as the dollar afford such expensive stocks as servicing and new bond sales - by the jumped on expectations that U.S. smartphone camera lens supplier fiscal 2020. Reuters President-elect Donald Trump’s Largan Precision Co., which closed at proposals for infrastructure spending NT$3,790.00 (US$118) on December Malaysia and tax cuts will boost economic 30. Focus Taiwan growth and inflation. Reuters Malaysia to phase out 9-month Klibor Thailand rate Exports boost Thai economy Malaysia’s central bank on Singapore Thailand’s customs-cleared exports December 29 said it will phase out the Singapore’s 2017 median wage to rise surged last month, thanks to higher nine-month tenure of its interbank 4.7%: study demand from major markets, an benchmark rates, effective January 2018. The median base salary in encouraging sign for the The decision to scrap the Singapore is expected to rise 4.7 percent trade-dependent country whose nine-month Kuala Lumpur Interbank in 2017, after factoring in disinflation, economy has been struggling to regain Offered Rate (Klibor) was taken due to higher than the 3.7 percent increase in traction. “limited market demand, relevancy and 2016, a report by Korn Ferry Hay Exports jumped 10.2% from a year sufficiency of transactional data to Group on December 9 showed. earlier, Commerce Ministry data support the rate setting process,” Bank This would be ahead of Asia’s real showed on December 26, compared Negara Malaysia said in a statement. wage growth of 4.3 percent next year. with the median forecast for a 1.55 % Malaysia also offers 1-month, The higher-wage projection comes rise in a Reuters poll and October’s 2-month, 3-month, 6-month and 1-year even as Singapore’s economy is 4.2% drop. The percentage gain was the Klibor rates. projected to be sluggish in 2017, with highest for a month since February “During the transitional period most companies expecting only modest 2016. beginning 1 January 2017, all market growth, the study said, noting that Higher global oil prices helped lift participants with existing contractual Singapore still has a talent retention demand for Thai oil-related goods last agreements referencing the 9-month challenge. month and overall shipments should KLIBOR are expected to review their “Despite the negative outlook for increase this year, a ministry official contracts to provide customers with next year, our recent market reward told a briefing. alternative mechanisms,” the central survey of over 400 companies reveals November 2016 imports increased bank said, adding that new contracts that more than three quarters of 3% from a year earlier. Economists had should no longer use nine-month Klibor. employers in Singapore are still likely expected a fall of 1.05% after a rise of Business Times to implement salary increment to their employees,” the study said. Business 6.5% in October. Financial Tribune Philippines Times Vietnam Philippines revises forex assumptions, Vietnam sees record new business in but keeps growth outlook Taiwan 2016 The Philippines revised on Small investment program to kick off Vietnam saw a record number of December 20 its foreign exchange on Jan. 16 business openings in 2016, shedding assumptions for its 2017 and 2018 A plan that makes expensive hopes for robust growth and strong macroeconomic targets, taking into stocks and other securities more investment in the near future. consideration a weaker peso against the accessible to retail investors will be A new report from the Ministry of U.S. dollar. launched on Jan. 16, according to the Planning and Investment said the past The forex assumption is now Taiwan Stock Exchange (TWSE). year saw 110,000 new businesses open, P48-P50 to the dollar for both 2017 and Under the plan, which was recently up 16.2 percent from 2015. Registered 2018, from P45-P48, said Budget approved by the Financial Supervisory capital increased 48 percent to more Secretary Benjamin Diokno, speaking Commission (FSC), Taiwan’s financial than VND891 trillion ($39 billion). to reporters after President Rodrigo regulator, retail investors will be able to These new companies are expected Duterte’s economic team reviewed invest fixed amounts at regular intervals to create nearly 1.3 million jobs, macroeconomic targets. in stocks and exchange traded funds. independent of the nearly 26,700 firms The peso has fallen nearly 6 The small investment program was who suspended operations during tough percent this year, the second designed in response to complaints from times only to resume operations in the worst-performing emerging Asian retail investors who said they could not past 12 months. Vn Express