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Brunei’s potential as a gateway to ASEAN highlighted at inaugural Chennai seminar

Brunei Darussalam’s potential as a gateway to the ASEAN and regional markets was showcased at the Brunei Economic Development Board’s (BEDB) inaugural Investment Seminar in Chennai, held at the ITC Grand Chola on November 6, 2024.

Titled Weaving New Connections: The Brunei-Chennai Story, the event brought together over 100 business leaders from India and Brunei, spotlighting investment opportunities in the Sultanate’s diversifying economy.

Attending the seminar was Brunei’s High Commissioner to India His Excellency Dato Paduka Hj Alaihuddin Pehin Orang Kaya Digadong Seri Lela Dato Seri Utama Hj Awg Md Taha.

In his opening address, BEDB Acting CEO Daniel Leong presented Brunei’s unique proposition as a base for businesses looking to expand into Southeast Asia and the connecting region, owing to its strategic location and robust, familiar legal and business regulatory environment where English is widely used.

“Brunei’s low-tax regime—with no personal income tax, sales tax, or capital gains tax—offers financial advantages that are difficult to match within the region. Combined with Brunei’s strategic location, this makes it an excellent base for regional operations and a springboard into Southeast Asia’s broader markets,” said Leong.

Brunei’s advantageous position is further enhanced by its market access through an increasing number of trade agreements, including RCEP and CPTPP, connecting investors to over three billion consumers.

Source: Biz Brunei

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Brunei total trade grew by 2.9 per cent

The total trade for August grew by 2.9 per cent to BND2,025.8 million, compared to July. This growth was contributed by exports valued at BND1,260.4 million and imports valued at BND765.4 million.

According to a statement released by the Department of Economic Planning and Statistics (DEPS), the major contributors to export value were mineral fuels at 75.5 per cent, followed by chemicals at 18.9 per cent and machinery and transport equipment at 4.8 per cent.

The main export markets were China accounting for 17.2 per cent, followed by Japan and Australia at 16.1 per cent and 14.7 per cent. The largest export commodities to these countries were mineral fuels and chemicals.

Meanwhile, imports in August 2024 were valued at BND765.4 million. The three main import commodities were mineral fuels, accounting for 63.4 per cent, followed by machinery and transport equipment at 10.9 per cent and food at 8.3 per cent.

The largest import partners were Malaysia accounting for 39.8 per cent, followed by Australia at 10.5 per cent and China at 10.3 per cent. The main import commodities from these partners were mineral fuels, machinery and transport equipment as well as food.

Overall, the trade balance rose by 30 per cent, driven by a 7.3 per cent increase in exports, while import value recorded a decrease by 3.6 per cent. The imports for end use categories, were mainly used as intermediate goods processing accounting for 58.9 per cent, followed by capital goods for business operations at 37.3 per cent and consumption goods for household use at 3.8 per cent. The International Merchandise Trade Statistics report for August 2024 can be accessed through DEPS website https://deps.mofe .gov.bn.

Source: Borneo Bulletin

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Transforming Trade: The E-commerce Revolution in ASEAN

Global cross-border e-commerce is growing, fuelled by digitalisation and rising consumer demand. Global B2C e-commerce sales have more than doubled from USD 2.4 trillion in 2017 to USD 5.3 trillion in 2022 and are expected to maintain a high growth trajectory in the coming years. ASEAN countries are well-positioned to capitalise on this growing trend. This potential for e-commerce export growth in ASEAN is underscored by the increasing global demand for online shopping. Although physical retail remains popular, consumers worldwide are increasingly turning to e-commerce, driving substantial increases in export revenues for businesses in the ASEAN-6. Innovations in digital payments are facilitating smoother transactions both domestically and internationally while advancements in Artificial Intelligence (AI)-powered tools for use-cases like demand forecasting and marketing are helping businesses to access new markets.


For MSMEs, these technological advancements are particularly transformative. Digital solutions are breaking down traditional barriers to entry, enabling even the smallest businesses to compete on a global scale. By harnessing these digital tools, ASEAN-6 businesses can enhance productivity, improve customer reach, and capitalise on the growing global e-commerce market. As the region continues to embrace digital transformation, opportunities for cross-border e-commerce are set to expand, offering a robust pathway for economic growth and international trade.


Despite the growing body of research on e-commerce in ASEAN, there are still significant knowledge gaps regarding the region’s export potential. While much attention has been given to domestic e-commerce, the export opportunities remain relatively unexplored. Access Partnership has estimated the size of e-commerce exports in key Asian countries, with this report containing the estimates for e-commerce exports from ASEAN-6 countries in 2023 and 2028. It also provides insights from MSMEs in ASEAN-6 on their current and future e-commerce engagement, as well as consumer insights from key overseas export destinations. Finally, the report analyses the policy landscape in the region and suggests potential policy references that can help expand the e-commerce industry in ASEAN-6.


Download the reports here: https://accesspartnership.com/transforming-trade-the-e-commerce-revolution-in-asean/

Skills mismatch: a barrier to economic growth

With its vigorous maritime transport sector, Asia is still the region best connected to global shipping networks, its leading position in shipping connectivity boosting trade and powering growth, according to the latest Review of Maritime Transport released by the United Nations.

The report published on October 22, 2024 by the UN Conference on Trade and Development (UNCTAD) showed Asian economies retaining top spots on the global Liner Shipping Connectivity Index. China came out on top, followed by the Republic of Korea and Singapore.

Other Asian countries in the top 10 were Malaysia, Japan, and Viet Nam, which incidentally has also recorded the highest long-term increase of 199% in shipping connectivity since 2006.

The index, first introduced in 2004 by UNCTAD, is based on main components of the maritime transport sector such as ship sizes, deployed capacity, numbers of service providers, and weekly calls.

In shipbuilding, China, Japan, and the Republic of Korea continue their dominance, accounting for about 95% of global output. For the first time, China delivered over half of the world’s new ships in 2023. The Philippines comes in fourth place in delivery of newbuilt vessels, followed by Viet Nam in fifth.

However, global trade route disruptions due to geopolitical tensions and impacts of climate change pose challenges to Asia, said the report.

Conflict in the Red Sea has severely affected shipping through the Suez Canal and exacerbated congestion in major ports elsewhere in Asia.

Between March and May 2024, waiting times in Singapore nearly doubled from 24 to 40 hours, while in Port Klang, Malaysia, the number went up from 20 to 26 hours.

Faced with low water levels linked to climate-induced droughts, draft restrictions in the Panama Canal in 2023 led to shipment delays and higher costs.

This has impacted trade routes exporting grains and minor bulk commodities from the Americas to Asia, with a 31% increase in sailing distances for completed journeys and a 25% decrease in cargo volume.

Meanwhile, the report showed that Asia continues to be an engine of merchandise trade, with 80% of trade transported by sea.

The report showed that in 2023, main maritime waterways connecting the East and West accounted for at least 36% of global containerized trade. These include routes from East Asia to North America, Northern Europe, and the Mediterranean.

On the other hand, South-South routes linking the developing world of East and Western Asia, Oceania, Sub-Saharan Africa and Latin America, achieved the highest increase (+9.3%) in its volume of global containerized trade in 2023.

By sector, technology exports from Asia—most notably green energy and artificial intelligence-related products –are expected to drive further recovery in global merchandise trade.

Iron ore trade will continue to grow, given a firm demand from steel producers, particularly in Asia, the report forecasts.

Global gas trade is also projected to increase, considering expanding infrastructure for the storage and transport of liquefied natural gas, as well as rising demand from Asia and Europe.

The paper also found that Asian hinterland complemented port connectivity. Inland terminals, or dry ports, have the potential to boost regional cooperation and benefit landlocked developing countries.

Their development is also part of the Asian Highway Network and Trans-Asian Railway Network, also known as the Eurasian Landbridge.

The network of dry ports in China and the various inland container depots in India, as the report highlighted, have helped improve trade flows by decentralizing seaport operations such as storage and inspections.

At the same time, the report indicated that global maritime trade grew by 2.4% in 2023, recovering from a 2022 contraction, but that the recovery remains fragile.

Key chokepoints like the Suez and Panama Canals are increasingly vulnerable to geopolitical tensions, conflicts and climate change.

These disruptions are extending shipping routes, straining supply chains and raising costs, with profound impacts on food security, energy supplies and the global economy, as over 80% of world trade volume is carried by sea.

The review called for urgent action to strengthen industry resilience, accelerate decarbonization and support vulnerable economies.

It underscored the need for new infrastructure that is sustainable and resilient, a faster transition to low-carbon shipping, and a crackdown on fraudulent ship registrations to safeguard global trade.

Investment and tourism programme in Chennai to mark RB inaugural flight

Royal Brunei Airlines’ (RB) inaugural flight from Brunei to Chennai on November 5 will coincide with an investment and tourism promotion programme hosted in Chennai.

The Brunei Economic Development Board (BEDB) will host an investment seminar on the afternoon of 6 November, followed by a Brunei Night that evening to promote tourism in collaboration with RB, the Brunei High Commission to India, and Brunei Tourism.

The Minister of Transport and Infocommunications, YB Pg Dato Seri Setia Shamhary Pg Dato Paduka Hj Mustapha, shared the broader programme connected to the inaugural flight during RB’s ceremonial launch event for the Chennai route at Tarindak D’Seni on Friday evening.

The Brunei-Chennai route restores direct connectivity between the two nations after two decades. This milestone also follows a significant meeting between Brunei’s and India’s heads of state in September—the first visit by a sitting Indian Prime Minister to Brunei.

Source: Borneo Bulletin

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Muara Port expansion project set to boost Brunei’s trade and logistics capacity

The Muara Port Expansion Project, a key initiative aimed at enhancing Brunei’s primary port, took center stage during a Stakeholder Engagement Session hosted by Muara Port Company (MPC). The project, which will significantly increase the port’s capacity and efficiency, is expected to strengthen Muara Port’s position as a regional trade hub and drive economic growth.

MPC Chief Operating Officer Fazilah Yassin, in his opening remarks, emphasised the importance of the port expansion for Brunei’s future. “The benefits of this project will not only bolster Muara Port’s position as a regional hub for trade and logistics, but also stimulate economic growth, create new business opportunities, generate employment, and improve the port’s overall efficiency and services,” he said.

The expansion project will involve the construction of a new 250-meter berth adjacent to the existing Muara Container Terminal, the deepening of both berths to -13 meters, and the installation of state-of-the-art equipment, including Post-Panamax quay cranes and rail-mounted gantry cranes. Upon completion, the port’s total berth length will reach 500 meters, allowing it to accommodate larger vessels in the 30,000-50,000 DWT range and significantly boost its cargo-handling capacity.

“This expansion aligns with our vision of establishing Muara Port as a regional hub, supporting Brunei’s industry diversification efforts, and fostering economic growth. It will also create jobs and contribute to the nation’s broader development goals,” Fazilah added.

Source: Borneo Bulletin

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Vietnam aims for ASEAN Top 3 with its digital economy

Hanoi (VNA) – With a high digital economic growth rate of about 20% per year, and the fastest rise in e-commerce in the ASEAN region, Vietnam is moving close to the position of top three biggest countries in the ASEAN region in terms of its digital economy.
Vietnam has set a target of raising the contribution to the country’s GDP to 20% by 2025 and 30% five years later, with the proportion of digital economy in each industry and field reaching at least 10% by 2025 and doubling by 2030.
According to Tran Minh Tuan, Director of the Digital Economy and Digital Society Department under the Ministry of Information and Communications (MIC), in the 2000s, the concept of the digital economy focused only on the information and communications technology (ICT) industry. Now, it continues to spread to all industries and fields.
Tuan cited data from the MIC showing that by 2023, it accounted for about 16.5% of GDP, of which ICT industry made up nearly 60%.
International organisations assessed that Vietnam's digital economic growth rate is high at about 20% per year, three times the GDP growth rate. Particularly, Vietnam leads the ASEAN countries in the growth pace of e-commerce.
Vietnamese people's absorption into digital economic fields is increasing, pushing the country close to the position among the top 3 in the ASEAN region, said Tuan.
Hoang Viet Tien, Deputy Secretary of the Vietnam Digital Communication Association, said that Vietnam's Internet has gone through many stages of development, with digital transformation, especially in the development of AI in the next few years predicted to boom. Tien stressed the need for foundation and solutions to support the development of the infrastructure.
By now, the MIC has licensed three telecommunications service suppliers to launch 5G services. In the coming period, to successfully implement digital transformation and digital infrastructure, providers need to work out user-friendly solutions, Tien said, adding that State management agencies should issue appropriate decrees, circulars, and instructions.
Ericsson Vietnam estimated that 5G will account for about 50% of Vietnam's mobile subscribers by 2029. Currently, more than 25% of the data traffic is transmitted via 5G.
President and CEO of Ericsson Vietnam Rita Mokbel said that with its global experience and leadership in 5G deployment, Ericsson is ready to support its commercialisation in Vietnam. Ericsson is currently working closely with local operators and enterprises to develop use cases tailored to Vietnam's specific needs, she said.
Meanwhile, Eric Yeo, Country Manager for Amazon Web Services Vietnam, said that his firm wants to cooperate with Vietnamese telecommunications operators to provide technology, expertise, and experience in building infrastructure and improving the skills of the workforce, helping telecommunications operators maximise profits from 5G investment.
Nguyen Tuan Huy, head of the Digital Tranformation Department of MobiFone, said that the overal goal of digital transformation is to improve business efficiency, increase labour productivity, and work performance, and to enhance service quality for customers.
Digital transformation is not simply the use of digital technology in socioeconomic activities but also the process of establishing a new, advanced, and modern production method, in which AI, IOT, Big Data, and Cloud are important production tools in a variety of industries and fields, he stated./.
Source: Vietnam Plus. Link: Here
Image Source:  Vietnam Plus, Pixabay 

Cambodia doubles down on power infrastructure development

The government is actively working to expand its power generation and transmission capabilities to meet the country’s growing energy demands, said Keo Rottanak, Minister of Mines and Energy.

If Cambodia does not work hard to build electricity infrastructure, it will face many problems, especially in the process of social development and attracting investors, Rottanak said.

Cambodia needs 70 percent of its electricity from clean energy to ensure stable electricity prices, the process of industrial development and attract foreign investment, he said.

“Significant progress has been made in constructing new power sources and upgrading the national power grid in strategic locations,” Rottanak said during a groundbreaking ceremony of the 900 MW LPG-fueled power plant in Koh Kong province’s Botum Sakor district on Wednesday.

The minister said that Cambodia is looking forward to maintaining a stable supply of electricity and wants to get power from clean power sources to be converted into electricity and reduce sales prices to the people as well as to private companies.

The Royal Government of the 7th mandate has put in place a number of policies and budgets to build enough electricity to meet future needs, especially energy sources generated from green energy.

Cambodia aims to increase its renewable energy share to at least 70 percent by 2030, contributing to environmental goals and economic growth, with a particular focus on energy efficiency.


For full article, please read here



Reporter: Chea Vanyuth

Source: Khmer Times 

New standards on textiles eyed for adoption

The Bureau of Philippine Standards (BPS) of the Department of Trade and Industry (DTI) is seeking feedback from stakeholders on recommendations to adopt several new standards on textiles.

In a notice, the BPS identified five international standards on textiles published by the International Organization for Standardization (ISO) which are intended for adoption as Philippine National Standards.

The first is ISO 105-B02:2014 specifying a method intended for determining the effect on the color of textiles of all kinds and in all forms to the action of an artificial light source representative of natural daylight.

Another is ISO 105-C06:2010 which sets out methods intended for determining the resistance of the color of textiles to domestic or commercial laundering procedures used for normal household articles using a reference detergent.

The third is ISO 105-E04:2013 defining a method for determining the resistance of the color of textiles to the action of human perspiration.  

Others are ISO 105-X12:2016 specifying a method for determining the resistance of the color of textiles of all kinds to rubbing off and staining other materials; and ISO 6330:2021 defining domestic washing and drying procedures for textile testing.

“The adoption of international standards as Philippine National Standards (PNS) is in line with good standardization practice and is consistent with the Philippines’ commitment to the World Trade Organization Technical Barriers to Trade (WTO TBT) agreement,” the BPS said.

It said the adoption will also facilitate immediate access to international standards by the local companies, industries, academe, consumers and other stakeholders.

The BPS encouraged stakeholders to send their inputs or concerns pertaining to the intent or recommendation to adopt these new standards on textiles to their 1BPS portal account in the website (standardsph.dti.gov.ph) on or before Dec. 2.

Firms urged to get ready to comply with requirements of EU’s deforestation regulation

Companies doing business in the European Union are advised to get ready to comply with the requirements of its deforestation regulation which come into effect this Dec. 30.

Michaela Summerer, junior professional officer at International Trade Centre (ITC), said the European Union Deforestation Regulation (EUDR) prohibits the placing or making available listed commodities and products on the EU market or exporting them from the EU, unless they are deforestation-free and have been also produced in accordance with relevant legislation of the country of production. 

Summerer said the scope of the EUDR are seven commodities representing the largest share of EU-driven deforestation –palm oil, soy, wood, cocoa, coffee, cattle and rubber– and many derived products such as leather, chocolate and furniture.

She said there is foreseen inclusion of additional products in the regulation’s scope after the completion of one-year review by June 2025, with particular consideration of maize and biodiesel.
 
“This hasn’t been confirmed yet but this is something that is already part of the regulation. So there will be a regular review of the regulation itself and the impact it has and then potentially more commodities and products will be included under the scope,” she said in a workshop organized by the Department of Trade and Industry-Export Marketing Bureau.

Mathieu Lamolle, Senior Advisor Sustainability Standards and Value Chains at ITC, said the main requirements of EUDR include data-collection on deforestation-free and those ensuring that products can be legally produced.

Lamolle said products must be produced on land that has not been subject to deforestation after Dec. 31, 2020.    

“For any deforestation that had occurred after December 2020, those products would not be permitted, allowed to go into the EU market,” he said. “And deforestation is basically defined in the regulation as being the conversion of the forest into an agricultural use, whether human-induced or not.”

On the legality requirement, Lamolle said products must be produced in accordance with laws on land use rights; environmental protection; forest-related rules, including forest management and biodiversity and conservation; and tax anti-corruption, trade and customs regulations, among others.

He also advised businesses to conduct risk assessment to ensure that the information that they are collecting mostly from their suppliers is accurate and reliable, and then risk mitigation.

“So in case there is any risk, that the information would be incomplete or there would be some deforestation link to the product, those operators have the legal obligation to risk assessment and risk mitigation. So this is very important to understand that the liability is to the operators, they will face sanctions in case there are inspections and they realize that the products are not (deforestation)-free,” he added.

Lamolle said operators or companies placing listed products on the EU market must also submit   a due diligence statement to the EU register containing information on products, confirming that due diligence was carried out, and that no or only negligible risk of non-compliance was found.

“Due diligence statement is actually the certificate, the self declaration that the company, the operator has done everything possible to ensure that there is no deforestation associated with their products and once they have done the due diligence statement, the declaration that they are all fine, then only they can start placing the product on the EU market,” he said.

In cases of non-compliance, Summerer said penalties must be “effective, proportionate and dissuasive”.

“Can include fines, confiscation of products, confiscation of revenues and temporary exclusion from public procurement processes,” she said.

Next lap of Asean-South Korea ties to focus on tech, clean energy

SEOUL - South Korea, a regional technology powerhouse, wants to partner South-east Asia as the region embraces the latest innovations in fields ranging from artificial intelligence (AI) to clean energy.

It is what President Yoon Suk Yeol calls among the “most noteworthy outcomes” under an Asean-South Korea comprehensive strategic partnership (CSP) that will be established at the Asean meetings in Vientiane, Laos, later this week.

In an exclusive interview with The Straits Times, he said: “With Asean being one of the fastest-growing digital markets in the world, mutually beneficial cooperation in the digital sector will create a synergy that brings tangible benefits to our peoples.”

South Korea, home to global leading tech companies such as Samsung Electronics, SK Hynix and LG Electronics, is known for its innovative technology in advanced semiconductors, AI and quantum computing.

Mr Yoon said the country can help Asean by building high-performance computing infrastructure and data ecosystems, and training skilled workers in digital technology and AI.

“In addition, South Korea aims to support the Asean member states in their efforts to build capacity against the ever-increasing threat of cyber attacks by helping promote education in cyber security, and train experts in this field,” he said in written replies to questions from ST. “Through these efforts, Korea will become a key partner of Asean’s digital transformation.”

Mr Yoon is on a six-day trip to South-east Asia from Oct 6 to 11, visiting Manila, Singapore and Laos. He arrived in Singapore from Manila on Oct 7 and will depart for Vientiane on Oct 9 for the annual Asean meetings.

The CSP, to be established on the 35th anniversary of dialogue relations, elevates the Asean-South Korea relationship to the same level as that of the bloc’s with the other Asean Plus Three dialogue partners. Asean and China established a CSP in 2021, while ties with Japan were upgraded to the same level in 2023. 

At a time of rising geopolitical tensions in the region, one of the key outcomes being called for by the South Korean leader under the CSP is “strategic coordination with Asean in politics and security”. 

South Korea will actively participate in joint military exercises with Asean – the bloc held its first exercise in September 2023 focusing on humanitarian relief – step up defence industry cooperation, and work with Asean to jointly address emerging threats such as cyber and transnational crime, Mr Yoon said.

He added that South Korea “highly appreciates” how Asean has spoken “in one voice” to urge North Korea to halt its nuclear and missile development, which violates United Nations Security Council resolutions.

Another challenge facing Asean is the “economic and social impacts of climate change”, said the South Korean leader. 

South Korea aims to share technology for clean energy with Asean and broaden its investments beyond traditional sectors like textiles and chemicals to focus on electric vehicles, batteries and biotechnology, said Mr Yoon.

With the Partnership for Asean-South Korea Methane Action launched in 2023, Mr Yoon said: “South Korea is striving to share its clean energy technologies with Asean while helping to redouble the efforts to reduce methane emissions, one of the main causes of global warming.

“Moreover, South Korea will help Asean achieve carbon neutrality and green transition through a variety of projects aimed at alleviating air pollution and reducing carbon emissions through forestation.”

Other key areas of cooperation under the CSP will be to enhance the Asean-ROK (Republic of Korea) Free Trade Agreement (FTA) as well as people-to-people exchanges and cultural cooperation.

Asean is South Korea’s second-largest trading partner after China, with bilateral trade having more than tripled since the Asean-South Korea FTA took effect in 2007. 

About 6,000 South Korean businesses have a presence in Asean, representing nearly half of all South Korean enterprises in overseas markets. Asean is the country’s second-largest investment destination after the US.

South Korea’s cumulative investment in Asean stands at approximately US$150 billion (S$195 billion), and is projected to surpass US$200 billion within the next five years. 

With challenges such as digital transformation, supply chain security and climate change, Mr Yoon told ST he believes that the South Korean and Asean partnership needs to evolve beyond trade to include economic security. “I believe the Asean-ROK FTA can serve as a pivotal platform in this effort,” he said.

Shared challenges: Deepfakes, shrinking populations 

In Singapore, he and Prime Minister Lawrence Wong will witness the signing of an extradition treaty and the exchange of several memorandums of understanding to enhance cooperation in areas including trade, start-ups, energy, food safety and technology. 

In the written interview, Mr Yoon said he looks forward to the two countries closely collaborating, including in intelligence sharing to combat the proliferation of illegal digital content and drug use.

South Korea has been rocked by a series of deepfake porn crimes, with most of the perpetrators being teenage boys.

According to data from its education ministry, 799 students from elementary to high school fell victim to deepfake videos in 2024, along with 31 teachers.

South Korea’s National Assembly passed a Bill on Sept 25, seeking a jail sentence of up to three years or a fine of up to 30 million won (S$29,000) for people found knowingly possessing or viewing deepfake porn.

In Singapore, PM Wong announced on Oct 1 that a government agency will be set up by 2025 to help victims of such crimes, and a new law will improve protection for victims.

Mr Yoon said: “Both countries are facing serious social problems caused by the proliferation of illegal digital content and drug use. As advocates of the rule of law, South Korea and Singapore will work together to enable close collaboration including intelligence sharing between law enforcement authorities, along with the strict enforcement of the law.”

Mr Yoon, who had discussions with PM Wong at the virtual AI Seoul Summit in May, said the two countries are “optimal partners” in efforts to establish global norms on AI.

Establishing a green economy is key to sustainable development, as is addressing low birth rates, which Mr Yoon said are common goals shared by South Korea and Singapore.

Both countries concluded a memorandum of understanding on green economy cooperation in 2023 and are among the countries that signed the Indo-Pacific Economic Framework Clean Economy Agreement in June 2024. 

Mr Yoon said he looked forward to expanding cooperation with Singapore in these areas, including exchanging policy insights on issues such as childcare leave and a more open stance on immigration to mitigate demographic issues.

He is accompanied on his visit to Singapore by First Lady Kim Keon Hee, senior government officials and business leaders, including Samsung Electronics chairman Lee Jae-yong and Hyundai Motor Group chairman Chung Eui-sun.

Mr Yoon, a well-known foodie, said he hopes to tuck into Hainanese chicken rice and satay.

He recalled visiting Singapore in 2003 during a stopover at Changi Airport and being deeply impressed by Singapore’s “cultural diversity and dynamism” during his walk downtown, where he came across “many different places of worship all together in one area”. 

He said: “I have studied various Singaporean models of government reforms, educational innovations and urban development. I believe that mutual interest and understanding between South Korea and Singapore will significantly help strengthen cooperation in various fields going forward.”

Source: The Straits Times
Link: Here

October 08, 2024

South-east Asia emerges as global data centre hot spot as AI usage rises

SINGAPORE – The world’s largest technology firms are flocking to South-east Asia to build data centres at a time when demand for infrastructure and computing power to enable artificial intelligence (AI) is rapidly rising.

The new investments are expected to contribute to the region’s economies by creating skilled jobs in data centre construction, engineering and maintenance, while also developing specialised talent in AI, cyber security, and data science and management.

The investments will also improve the region’s digital infrastructure, allowing small businesses and large institutions to store their data locally, significantly reducing downtime while increasing data sovereignty.

With AI-supported innovations such as searches on ChatGPT now requiring at least four to five times more processing capacity compared with traditional internet searches, data centre demand is expected to grow at around 20 per cent a year for the next five to seven years, analysts at Maybank noted in an October report.

Data centres are large facilities built to accommodate servers, data storage systems and networking equipment that support better internet services and telecommunications.

This, in turn, enables popular online activities such as gaming, live-streaming and investing, as well as more advanced technologies like cloud computing and AI.

Thanks to its lower costs, power availability and geopolitical neutrality, South-east Asia is emerging as an ideal region for tech operators to establish a data centre base, with the top five countries being Singapore, Malaysia, Thailand, Indonesia and Vietnam.

While Singapore is the preferred destination for hosting data centres due to superior infrastructure and a stable regulatory regime, the Republic had imposed a three-year halt on data centre construction between 2019 and 2022 to assess its impact on the environment.

Malaysia seized the bulk of new data centre investments entering the region during that period, and now expects facilities with around one gigawatt (GW) of power capacity to come online over the next two years.

That is double the existing data centre capacity it currently has.

Another 3GW has also been announced and, if approved, will be gradually rolled out in the next three to five years, RHB Bank said.

In comparison, Singapore’s data centre capacity currently stands at around 1.4GW.

Among those channelling capital into Malaysia are tech titans like Microsoft, which said in May that it will invest US$2.2 billion (S$2.9 billion) over the next four years to build cloud and AI infrastructure in the country.

Amazon Web Services (AWS) in August announced plans to invest an estimated US$6.2 billion to set up a data centre and cloud region in Malaysia.

The cloud service provider is also developing a similar region in Thailand. It revealed plans in 2024 to invest US$5 billion in data centres in the country over the next few years, making Thailand its fourth AWS region in Asean after Singapore, Indonesia and Malaysia.

In September, Google said it would invest US$1 billion to build a data centre and cloud region in Thailand, which has so far seen around US$9 billion committed by operators, according to analysts at Morgan Stanley.

By 2028, RHB expects Malaysia to account for over half the data centre processing power across the top five South-east Asian markets, with data centres in Johor making up the bulk of inventories at over 2.3GW.

That could put the Malaysian state in close competition with Singapore as a data centre hub for the region.

After partially lifting its moratorium in 2022, Singapore awarded around 80MW of new capacity to Equinix, GDS, Microsoft and an AirTrunk-ByteDance consortium in July 2023. In May, the Government announced that at least 300MW of data centre capacity may soon be provided.

Still, the Republic has signalled that it will be more selective when awarding new capacity moving forward.

Speaking at a conference in May, then Senior Minister of State for Communications and Information Janil Puthucheary said data centres are collectively Singapore’s biggest indirect carbon emitter.

He added that existing data centres currently contribute to 82 per cent of the information and communications sector’s carbon emissions, and 7 per cent of the country’s total electricity consumption.

However, Dr Janil said Singapore may still award an additional 200MW of capacity to operators that are able to tap green sources of energy to run the facilities, and will provide schemes and incentives to support such investments.

Mr Dedi Iskandar, head of data centre solutions at property investment adviser CBRE, asked that the authorities provide more clarity on this front.

“The industry does not have a clear picture of what’s next after the additional capacity was announced in May, or when we can bid or how. We haven’t seen this information coming, and that has created uncertainty,” he said.

“When data centre operators have no line of sight, they cannot make plans to invest in Singapore.”

Mr Dedi said that while Singapore is still the preferred destination for hosting mission-critical computing applications, Johor, which still struggles with issues like talent and water shortages, is improving quickly.

The highest risk for Singapore arises when the price gap for building and operating a data centre compared with Johor becomes too significant, and when the quality of data centre services between the two markets narrows, he said.

CBRE data showed the average construction cost for a data centre in Singapore now stands at around US$11.40 per watt, the highest among nine cities in Asia, while in Johor, the average cost is around US$8.40 per watt. Energy and land costs in Johor are also among the lowest in the region.

“This will naturally spur more enterprises to move their data centre operations from Singapore to Johor,” Mr Dedi said.

When asked for updates and views, the Economic Development Board and Infocomm Media Development Authority declined to comment.

Source: The Straits Times
Link: Here

October 14, 2024