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Australia to create $1.3 bln fund to invest in Southeast Asian projects

Australia said on Tuesday it would set up a A$2 billion ($1.3 billion) finance facility to boost trade and investment in Southeast Asia as it looks to deepen ties in a region where many are also searching for ways to live with a more assertive China.
The fund will focus on clean energy and infrastructure and provide loans, guarantees, equity and insurance. Australia will also tip in an extra A$140 million to extend an existing programme which advises the region on infrastructure projects.
Prime Minister Anthony Albanese announced the fund, which was recommended last year by Australia's envoy to the region, in a speech on Tuesday to business leaders at the Association of Southeast Asian Countries (ASEAN) summit in Melbourne.
"Australia and Southeast Asia must together face this moment with a sense of optimism and urgency," he said. "Because while there is so much untapped potential, there is not unlimited time. We must act together, and we must act now."
Two-way trade between Australia and ASEAN states passed $178 billion in 2022, greater than Japan or the United States, Albanese said.
Australia is hosting the ASEAN summit, which marks the 50th anniversary of its ties to the bloc, amid growing recognition in Canberra that the region needs to be cultivated at a time when China's increasing assertiveness is reshaping the Indo-Pacific.
Stances on China across the 10-member bloc range from wary to warm. Philippine Prime Minister Ferdinand Marco Jr. told an audience in Melbourne on Monday that his country would grow its security ties with the US and resist when China ignores its maritime rights in the South China Sea.
However, at a joint press conference with Albanese hours earlier, Malaysian Prime Minister Anwar Ibrahim criticised growing "China-phobia" in the west.
Asked by reporters about China's push to join regional trade group the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Albanese and Singaporean Prime Minister Lee Hsien Loong said any decision would be by consensus.
Beijing has long sought to join the 12- member CPTPP, which includes Singapore, the U.K. and Japan, but faces opposition from some members including Australia over its coercive trade policies.
($1 = 1.5363 Australian dollars)

Source : REUTERS

OIKN develops creative economy of Nusantara City

The Nusantara Capital Authority (OIKN) is developing the creative economy (ekraf) in Nusantara City by compiling a regional creative economy development road map (Talanpekda).

"We are currently carrying out the process of compiling Talanpekda to develop creative and creative economy in Nusantara City," OIKN Director of Culture, Tourism and Creative Economy Muhsin Palinrungi stated in Penajam, Saturday.

The Directorate of Culture, Tourism, and Creative Economy of OIKN held a discussion forum involving stakeholders, including local governments and tourist destination managers, in the Nusantara City area.

He remarked that the discussion on drafting the Talanpekda was held on Thursday (March 21), and various inputs from stakeholders attending the forum were collected by the facilitation team that had been formed.

The facilitation team will thereafter conduct field visits in six sub-districts in the Nusantara City area to collect supporting data.

"We have carried out several stages to prepare the Talanpekda and are targeting completion in May 2024," he remarked.

Talanpekda is a guiding document for the OIKN Directorate of Culture, Tourism, and Creative Economy to plan creative and creative development programs and activities in Nusantara City, the future capital city of Indonesia.

Creative economy development in Nusantara City is a sector that must be prioritized, as it not only contributes to the Indonesian economy but also has a positive impact on the social, cultural, and environmental aspects.

"Creative economy can grow the economy in an inclusive and sustainable manner as well as raise a positive image and national identity in addition to preserving culture and the environment," he affirmed.

He also said that the creative economy can foster creativity that encourages innovation and increases social tolerance among members of all levels of society due to increased understanding between cultures.

Creative economy development in Nusantara City can be more focused and systematic with the Talanpekda, Palinrungi remarked.

Source: click here

Thai ice cream licks Asian rivals with 7.3% export growth

Thai ice cream exports rose for the seventh consecutive year, to US$148.21 million in 2023, according to the Trade Policy and Strategy Office.
TPSO director-general Poonpong Naiyanapakorn said ice cream products still have a bright future for Thai exporters with export value rising 7.3% year on year for a compound annual growth rate of 12.43% per year.
He added that Thailand is now the No 1 ice cream exporter in Asia and ranked 11th in the world.
Poonpong said exports were still growing, with Thailand shipping $9.91 million worth of ice cream in January this year – 10.1% up from the same month last year.
Thailand’s top five foreign ice cream markets are Malaysia with a 29.5% share, South Korea (11.3%), Vietnam (9.5%), Singapore (6.5%), and Cambodia (6.3%).
Poonpong said Thailand had an advantage with domestic ingredients that produced outstanding flavours, including durian ice cream.
He also noted growing global demand, citing a Euromonitor International study showing the world ice cream market expanded 8.8% to $86.719 billion in 2023 from a year earlier.

Source : THE NATION

US to renew Generalized System of Preferences (GSP) scheme for Thailand

The Commerce Minister of Thailand, Mr Phumtham Wechayachai, met with US Secretary of Commerce Gina Raimondo to strengthen trade relations and discuss renewing the Generalized System of Preferences (GSP) scheme for Thailand.
The Generalized System of Preferences (GSP) is a U.S. trade preference program established in 1974 to promote economic development by eliminating duties on thousands of products when imported from 119 designated beneficiary countries and territories.
The United States plans to reinstate the Generalised System of Preferences (GSP) scheme for Thailand, aiming to strengthen trade relations. This decision follows a strategic dialogue between Thailand’s Commerce Minister and US officials, where they discussed trade collaboration, the Indo-Pacific Economic Framework, and intellectual property enforcement.
The US is ready to renew the Generalized System of Preferences (GSP) scheme for Thailand, highlighting the potential for continued trade benefits between the two countries.
Both Thailand and the US are committed to strengthening economic relations and promoting bilateral trade and investment, with a focus on supply chain development and modern industries.
The Indo-Pacific Economic Framework (IPEF) negotiations have made significant progress, with Thailand and the US aiming to drive economic cooperation and connect supply chains in the region.
Both sides also addressed the Indo-Pacific Economic Framework (IPEF) negotiations and Thailand’s request to be removed from the US watch list for intellectual property (IP) enforcement, and highlighted the importance of supply chain development, with Thailand ready to partner with the US in modern industries.
The meeting highlighted the significance of the Thailand-US alliance and trade partnership, with an emphasis on supply chain development. Thailand seeks to become a production base for advanced US industries while showcasing its economic policies. In 2023, the US was Thailand’s second-largest trade partner, with a focus on technology, aviation, and other key exports.

Southeast Asia’s smartphone market is booming so far this year as China remains sluggish, research says

The strong smartphone shipments in Southeast Asia contrasted with China, the largest smartphone market globally, which saw smartphone sales fall 7% in the first six weeks of 2024 year-over-year, according to a Tuesday report from Counterpoint Research.
While the decline in sales in China was magnified by unusually high sales at the start of 2023, other factors have kept the market down, senior analyst Ivan Lam said in the report.
“Consumer confidence will need to rise to stabilize the market, but it is a tough call right now with everything that is happening, especially in the real estate sector,” he said.
One casualty has been Apple, whose smartphone shipments in China declined 24% in the first six weeks of the year, according to the research. This decline resulted, in part, from the revival of local competitor Huawei, but also abnormally high shipments by Apple at the start of 2023 that resulted from earlier production delays.
However, as growth in smartphone markets like China and the U.S. slow, brands that sell premium phones like Apple and Huawei are increasingly looking to emerging markets like Southeast Asia, which are poised for growth.
According to data from Canalys, Southeast Asia’s phone market is forecasted to grow 7% year-over-year in 2024, a much faster rate than that of the rest of the world, which is at 3%. Meanwhile, China is predicted to grow by 1%, and North America’s market is predicted to stay flat.
According to reporting from Bloomberg, Apple’s first retail location in Malaysia is already in the works. Meanwhile, Huawei has been strengthening ties with Southeast Asian partners such as the Indonesian telecommunications company Telkomsel.
In the Canalys report, Indonesia remained the largest Southeast Asian smartphone market, making up 38% of shipments in January. The second largest market, the Philippines, showed the most robust growth with shipments up 77% in January compared to last year.
The next largest markets were Thailand, Vietnam, and Malaysia, in that order. Vietnam was the only country to experience a year-on-year shipment
decline, dropping 2%.

Source : CNBC

Asean tech funding down 35% in 2023 as late-stage deals dwindle

INVESTMENTS in private technology companies in South-east Asia fell 34.5 per cent to US$5.5 billion last year despite a rise in the number of deals, as venture capitalists redirected funds to younger companies.

The number of deals grew from 760 in 2022 to 855 in 2023, said a report by venture firm January Capital, which sourced data from Alternatives.pe and Tracxn.

Early-stage investments, where companies are new or have only a few years of operations, have been gaining traction. The smaller investment commitments and longer incubation period help diversify risk in an uncertain economy.

The average deal size at the seed stage last year was US$2.1 million, for instance, compared with US$23.5 million at Series B, January Capital’s analysis showed.

Tech dealmaking hit a peak in 2021, amid a Covid-19 boom that propelled funding to US$14.5 billion across 868 deals.

The report noted an outsized number of mega funding rounds that year, when at least US$100 million was raised in each round. In total, more than US$11 billion went to companies at Series B and above; in 2023, this number plunged to US$3.3 billion.

Funding in Series B companies fell from over US$2 billion in 2022 to over US$1 billion in 2023.

“The amount of capital invested in Series B/C companies continues to reduce quite dramatically,” the report said, attributing the bulk of the decline to limited Series D/E transactions in 2023.

E-commerce, fintech and software-as-a-service (SaaS) continued to be the largest contributors to deal count and funding in South-east Asian tech.

The proportion of capital that went into e-commerce, however, dropped from 54 per cent in 2019 to 10 per cent in 2023, as the regional startup ecosystem matured and other businesses emerged.

The proportion of fintech funding has grown steadily, from 15 per cent in 2019 to 31 per cent in 2023. January Capital noted a rapid increase in sustainability startups, with companies such as Blue Planet Environmental Solutions and Cosmos Innovation getting funded.

“While most sectors observed an increase in deal count year on year in 2023, SaaS, healthcare and e-commerce saw the most material increase,” the report said. “This may be driven by investors focusing their investment capital on more proven business models.”


Source: The Business Times.

Link: Here

How Asean’s new US$2 trillion digital economy pact paves the way for seamless trade, data flow

NEGOTIATIONS are under way for the Asean Digital Economy Framework Agreement (Defa), which will be the world’s first regional digital economy agreement (DEA).

The first round of talks began at the start of December last year, and the aim is to wrap things up by 2025. Already, there are some calls for the discussions to be sped up.

In a new position paper that lists its recommendations for the Defa, the EU-Asean Business Council (EU-ABC) stressed the “urgency for Defa’s implementation”.

The agreement aims to develop rules for seamless digital trade and secure data flow between member states.

“(Defa) has the potential to propel Asean’s digital economy to US$2 trillion by 2030, doubling the current trajectory,” the EU-ABC wrote, citing figures by the Boston Consulting Group. “We hope that the agreement goes beyond token and voluntary gestures, steering towards binding, tangible, and transformative outcomes.”

As the negotiations go deeper, BT looks at the key principles outlined by Asean leaders and how Defa will eventually serve the region.

Evolution from traditional trade agreements

Asean is becoming part of an increasingly dense network of economic and trade agreements with digitally related provisions.

These include the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Regional Comprehensive Economic Partnership (RCEP), and several bilateral DEAs such as the Singapore-Australia DEA and the UK-Singapore DEA.

“The current landscape remains fragmented,” EU-ABC said. “It seems that the plethora of agreements and frameworks are often working in isolation.”

Defa, however, represents an evolution from traditional free trade agreements due to its exclusive focus on the digital economy. Experts believe Defa should adopt and build on these scattered digital provisions to ensure interoperability and integration into the global market.

In February, Maria Monica Wihardja, a visiting fellow at the Iseas-Yusof Ishak Institute, said: “Defa would bring all these different initiatives into one underlying framework or umbrella as many of the areas targeted by these various provisions are linked.”

The ongoing negotiations focus on nine key areas of the digital economy, including cross-border data flows, digital ID, talent mobility, and cooperation on emerging topics such as artificial intelligence.

Balancing data free flow with data governance

The levels of regulation in data governance among Asean member states will determine the extent to which data may be exchanged across borders. The existing regulatory gaps between members could pose difficulties for the development of a comprehensive agreement.

Cybersecurity regulations are the most comprehensive in the Philippines, followed by Vietnam, Singapore and Laos. Meanwhile, Indonesia, Malaysia, the Philippines, Thailand and Vietnam are among the ones that have established intellectual property rights to govern non-personal data sharing.

In terms of personal data protection, Singapore, Malaysia and the Philippines are the early adopters of data privacy laws, while Thailand, Indonesia and Vietnam have implemented their data privacy legislations in the past two years. (*see amendment note)

The different starting points would be a main challenge in negotiating for a common ground, said Dr Wihardja.

On the other hand, data localisation policies can introduce additional points of contention to the negotiations. Implemented to varying degrees in Cambodia, Indonesia, Malaysia, Singapore and the Philippines, these policies restrict the international transfer of data due to national security concerns.

While Dr Wihardja noted that localisation policies will only pose threats to the development of Defa when they are discriminatory, protectionist, non-transparent or non-predictable, there is concern that member states’ pursuit of data localisation will restrict cross-border data flows.

Experts pointed to Japan’s concept of “data free flow with trust”, which underlines that the free flow of data cannot take place in a regulatory vacuum. Rather, it has to be under appropriate data safeguard measures, and this should be the guiding principle for Defa, they said.

Principle-based modular approach

The different extent of data governance across Asean member states calls for a principle-based approach, analysts said.

Rather than prescribing specific measures, Defa should offer an impact-focused framework for cooperation, with ample policy space for member states to determine the governance approaches that best fit their respective local contexts.

Regulators can pursue a progressive alignment of regulations. For example, cross-border e-commerce represents a more developed area of the digital economy, with many Asean members already embracing paperless trade. The ongoing Defa negotiations can leverage existing domestic laws and regional agreements such as the Asean Agreement on E-Commerce.

Conversely, more time is needed for negotiations on less aligned topics such as cross-border cooperation in digital identity initiatives and governance of emerging technologies.

The flexibility of a principle-based agreement would also allow Defa to be “future-proof” and remain relevant as new technologies evolve.

“A key design principle for the Asean Defa is to be a living agreement that adapts to a constantly evolving socio-economic and technological landscape,” said Alpana Roy, Singapore’s senior economic official to Asean who oversees the Asean division at the Ministry of Trade and Industry.

Source: The Business Times. Link: Here

Women-led MSMEs need more support to adopt circular economy—study

Women-led micro, small and medium enterprises (WMSMEs), which make up 60% of businesses, show a low level of awareness about the circular economy (CE) and how it can help their business grow. This underlines the need to increase mainstreaming of CE principles into this sector to achieve the government’s vision of sustainable trade, according to a new study.

This policy note issued by the Philippine Institute for Development Studies (PIDS) published the results of a survey conducted among 58 WMSMEs in Metro Manila on their awareness of CE principles and their level of CE adoption. It found that only 8.6% had a clear understanding of CE while 91.4% said they had never heard of it, did not fully understand it, or only had a basic understanding of it.

“WMSMEs in Metro Manila have a low level of awareness about CE principles. This translates to a low level of circularity in their strategy and vision, business model, post-sales services, resource recovery, waste management, resource consumption, and ecodesign,” said the report. 

The circular economy is a model of production and consumption that involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible in order to extend their life cycle.

Adoption of CE principles is important since the Philippines produces a staggering 61,000 million metric tons of waste daily, 24% of which is plastic waste, said study authors Jovito Jose Katigbak and Jemimah Joanne Villaruel. 

“However, the country recycles only 28 percent and discards 800,000 metric tons of plastic waste annually. Businesses generate 163 million plastic sachet packets, 48 million shopping bags, and 45 million thin-film bags every day. A significant portion of these are disposed of in landfills and dumpsites (33%) or leaked into open environments and oceans (35%),” they said.

Asked about the primary obstacles to CE adoption, WMSMEs cited a lack of knowledge and awareness, limited financial resources, lack of government support and policies, lack of access to relevant networks and partnerships, and resistance to change.

On their awareness of government initiatives and policies, 65.5% were unaware of state-led programs, while only one enterprise was aware of specific government initiatives. Consequently, 43.1% shared that they did not receive any government support.  

Asked about the importance of CE adoption for the sustainability and success of their businesses, 44.8% affirmed that it was vital, but other priorities may take precedence. 

Moreover, 31% identified CE uptake as somewhat important but not a high priority. Only 13.8% admitted that it was extremely important and should be a top priority for business strategy, while 10.3% claimed that CE was not important.

Results were similarly discouraging in the area of resource recovery, the researchers observed. Specifically, 92.3% of respondents directly disposed of their liquid waste, 90.4% discarded their gaseous waste, and 75.8% disposed of their solid waste. 

“This signifies that the majority of the firms still utilize a linear approach,” said the report.

The findings can help policymakers craft measures and policies that will advance CE and, ultimately, sustainable trade and economic growth in the country, the authors said. 

The policy note recommends that the Department of Environment and Natural Resources and the Department of Trade and Industry focus on education campaigns and advocacies that will raise awareness of CE principles. 

“They can build on extant programs such as the National Ecolabelling Programme-Green Choice Philippines, Kalikasan Green Productivity, Green Purchasing Towards Green Philippines, Philippine Green Pages, and Sustainable Diner Project. They can also link with the Mother Earth Foundation to expand CE-related trainings for WMSMEs across various sectors,” the report said.

The Philippine Trade Training Center, meanwhile, can develop courses and modules on CE for WMSMEs to familiarize them with the concept and effectively streamline it into their strategies, business models, and waste management.

In addition, the government can provide incentives and business support schemes to WMSMEs to address limited financial resources, concerns regarding low-cost savings, and the traditional mindset that withholds them from adopting CE principles.

The government can also use digital technologies and social media platforms to promote CE to the public, MSMEs, and the informal sector.

The study also urged the government to prioritize the formulation and implementation of a national framework on CE to harmonize existing dispersed initiatives and programs.

Investments in artificial intelligence pushed

Brands can ramp up investments in artificial intelligence (AI) as its demand drives chip advancements, according to trend forecaster WGSN.

“Match fervor with investment as nations seek to establish themselves as AI superpowers,” it said in a sample report.

It said that in China, AI investment is expected to reach $38.4 billion by 2027, while the United States (US) is expected to see $68.14 billion of private AI investment in 2024.

WGSN said the European Commission has committed to investing 1 billion euros per year over the next decade and says it will mobilize a further 20 billion euros from the private sector, as Europe is trying to match China and Silicon Valley.

The report said AI demand drives chip advancements.

“Superior AI chips are at the heart of the AI gold rush as tech companies join the race to compete for dominance,” it said.

Designed to improve computer graphics and image processing, WGSN said, graphics processing units (GPUs) were found to be excellent at non-graphic calculations like those required by many AI systems.

“The rising demand for AI and the capabilities of these chips have made them tech’s hottest commodity,” it added.

The report said nations and companies are keen to obtain the chips, with Saudi Arabia and the United Arab Emirates buying thousands to stimulate tech growth.

The US implemented restrictions on exports of computer chips to China in an attempt to gain a competitive edge, it said.

As many computers cannot keep up with the workload AI demands, WGSN said, Intel, AMD and NVIDIA are driving the next wave of AI-powered personal computer (PC) experiences, with the emergence of the AI PC.

“This game-changer can potentially revive the faltering PC industry. Smartphone-focused chipmakers such as Qualcomm and Taiwan's MediaTek sensed the opportunity and are entering the AI space,” it added

New Capital Groundbreaking Phase 5 Worth Rp49.6 Trillion of Investment

The fifth phase of groundbreaking in the new capital city (IKN) Nusantara commenced development projects worth Rp49.6 trillion (US$3.17 billion) in total, as revealed by the Nusantara Capital Authority (OIKN).

Alimuddin, OIKN's Deputy for Socio-cultural Affairs and People's Empowerment, highlighted that this groundbreaking phase on February 29 and March 1 signifies Indonesia's future capital city's ongoing development.

He also mentioned that from September 2023 to February 2024, Rp50 trillion (US$3.19 billion) had been invested in IKN Nusantara, with the next groundbreaking phase set for March 2024.

The government is focused on the land clearing process in Nusantara, ensuring fair treatment for affected residents based on Government Regulation No. 39 of 2023, offering compensation funds, land replacement, resettlement, share ownership, or other solutions for those impacted.

Source: ANTARA

Halal Tourism's Money Circulation to Potentially Rise by 25%: Minister

Tourism and Creative Economy Minister Sandiaga Salahuddin Uno projected a 25 percent increase in money circulation from Indonesia’s halal tourism in 2024, aligning with post-pandemic economic growth trends. He emphasized the importance of this growth in household consumption, which is contributing significantly to the overall expansion of the halal tourism sector.

Speaking at an iftar event in Jakarta's Istiqlal Mosque, Uno noted the healthy growth in household consumption contributing to this increase. He highlighted the significant rise in community activities during Ramadan and Eid al-Fitr, evidenced by the attendance of 7 thousand people at the Istiqlal Mosque iftar event. Uno stressed that such gatherings not only promote religious solidarity but also drive economic activities, particularly in the halal tourism and creative economy sectors.

Additionally, Uno discussed the integration of halal tourism and the creative economy, exemplified by the 2024 Istiqlal Ramadan Fair. He mentioned that various activities at Istiqlal Mosque during Ramadan reflect the unity and diversity of Indonesian people, showcasing the rich cultural heritage of the nation. Furthermore, Uno invited donors to support micro, small, and medium enterprises (MSMEs) in the creative economy sector during Ramadan by providing training, mentoring, and capital assistance tailored to their needs.

In terms of certification, Uno highlighted the government's goal to ensure that all MSMEs have a halal certificate before October 2024. He emphasized the urgency of this initiative and the ministry's efforts to facilitate halal certification procedures to meet the deadline. Moreover, Uno pointed out Indonesia's recognition as the Top Muslim Friendly Destination of the Year 2023 in the Mastercard-CrescentRating Global Muslim Travel Index (GMTI) 2023, underscoring the country's popularity among halal tourists worldwide.

Source: ANTARA

Cambodia-US trade tops $1.3 billion

The US remains the primary recipient of Cambodian goods, accounting for nearly a third of the country’s total exports in the first two months of 2024, as reported by the General Department of Customs and Excise (GDCE).

Between January and February, trade activity between the two nations reached $1.33 billion, a surge of 14% from $1.17 billion in the corresponding period of 2023. Cambodia’s exports to the US were valued at $1.29 billion, increasing by 14.8%, while imports totalled $36.22 million, a decrease of 7.3%.

Cambodia’s trade surplus with the world’s largest economy expanded to $1.26 billion, up from $1.09 billion in the same interval last year. Bilateral trade for the period constituted 16.41% of the Kingdom’s total international sales volume, approximately $8.12 billion.

Hong Vanak, director of International Economics at the Royal Academy of Cambodia, told The Post on March 14 that despite global economic growth not reaching pre-pandemic levels, the country’s exports to the US have demonstrated a positive recovery since late 2023. 

He anticipates this trend to persist as Cambodia now offers a wider range of products catering to global market demands. 

He added that the US, being a substantial market, consistently imports Cambodian goods, predominantly textiles.

“The recovery in demand for textile products in the US, along with the increase in Cambodia’s production capacity, will provide the Kingdom with an opportunity to earn more from this bilateral trade. The US is Cambodia’s main market for textiles,” he said.

“The recent surge in exports to the US is due to the increasing activity in global tourism. Clothing, shoes and travel goods will see higher demand as people travel more frequently,” he explained.

To read full article, please click here.



Author: Hin Pisei

Source: The Phnom Penh Post

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