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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

Southeast Asia Becomes Tesla’s Priority for Expansion

Tesla prioritizes expansion into Southeast Asia, according to Rohan Patel, a senior executive, emphasizing the region's rapid growth in the face of competition from BYD. Patel highlights Southeast Asia as a key market for battery storage and electric vehicle (EV) adoption, citing its emergence as one of the hottest EV markets. Despite a slowdown in US demand, Southeast Asia offers a substantial customer base. Tesla secured a license in Malaysia last year and plans to establish charging stations. Discussions for expansion into Thailand, the region's largest car producer, are underway, with potential plans for a production facility.

In contrast to Tesla's direct-to-consumer approach, BYD partners with local conglomerates, facilitating market expansion and regulatory navigation. BYD's significant market share dominance in the second quarter of 2023 highlights its effective strategies, with EVs constituting 6.4% of all passenger vehicle sales in the region, up from 3.8% in the previous quarter, indicating substantial growth potential. Tesla's ambitions in Southeast Asia face challenges from BYD's established presence and strategic partnerships, necessitating innovative approaches for market penetration and competition.

Despite competition from BYD, Tesla remains optimistic about its prospects in Southeast Asia, driven by the region's burgeoning EV market and favorable regulatory environment. Tesla's expansion efforts, including securing licenses in Malaysia and exploring opportunities in Thailand, demonstrate its commitment to establishing a strong foothold. With EV sales on the rise in Southeast Asia, Tesla aims to capitalize on this trend by leveraging its technological advancements and brand reputation to attract customers and expand its market share in the region.

(Source: The Sun)

Bappenas Projects Indonesia's Economy to Grow Stronger in 2024

The Ministry of National Development Planning/National Development Planning Agency (Bappenas) projected that Indonesia's economy in 2024 would grow better than in 2023 despite the trend of slowdown in the global economy.

"Several international agencies have stated that Indonesia's economy, amidst the ongoing global economic slowdown, is projected to grow stronger than in 2023," the ministry's Deputy of Economic Affairs, Amalia Adininggar Widyasanti, stated during the 2023 Indonesia Economic Report's launch agenda here, Wednesday (January 31).

The Indonesian government targets the national economy in 2024 to grow by 5.3 percent, higher than the 2023 economic growth projection set at 5.1 percent.

She affirmed that Indonesia has a solid foundation to develop a stronger economy in 2024 despite uncertainty looming over the global economy and its divergence that is expected to continue in the upcoming years.

The official pointed out that the Organisation for Economic Cooperation and Development (OECD) also forecast Indonesia's economy in 2024 to grow better than last year.

"This is a positive sign that the global community believed that Indonesia can recover and maintain its economic growth in the five-percent range, returning to the pre-COVID-19 pandemic growth level," Amalia noted.

Meanwhile, Governor of Bank Indonesia (BI) Perry Warjiyo highlighted the need to remain vigilant while being optimistic in 2024 as well as to enhance synergy between economic policies and efforts to strengthen national economic resilience in 2024.

The central bank projected Indonesia's economy in 2024 to grow by 4.7 to 5.5 percent, provided that internal and external economic stability are preserved.

Warjiyo is also optimistic that inflation would be manageable to the expected target of 2.5 percent, give or take one percent; banking credit would grow by 10-12 percent; and the exchange rate of the rupiah would improve in 2024.

(Read the full article here)

Australia Unveils US$1.3 Billion Fund to Hitch Its Future to Southeast Asia

Australia introduced a A$2 billion finance facility aimed at enhancing trade and investment in Southeast Asia, coinciding with a summit of leaders from the Association of Southeast Asian Nations (ASEAN) in Melbourne. Prime Minister Anthony Albanese emphasized the significance of the region for Australia's future economic prospects. The fund, recommended by Australia’s envoy to the region, will prioritize clean energy and infrastructure projects, with an additional A$140 million allocated to extend an existing infrastructure program.
 
In response to the evolving geopolitical landscape and China's growing assertiveness, Australia has been diversifying its economic partnerships beyond its traditional reliance on China. With bilateral trade surpassing US$178 billion in 2022, Australia sees ASEAN, fueled by population growth, as an emerging economic powerhouse. Albanese stressed the urgency for collaboration, recognizing untapped potential in the region. The summit marks the 50th anniversary of Australia's ties with ASEAN and underscores the need for strategic cultivation amidst China's changing dynamics in the Indo-Pacific.
 
Southeast Asia's burgeoning energy needs, coupled with its role in clean energy initiatives, present opportunities for collaboration. Australia's funding package will support export financing and loans, particularly for infrastructure and renewable energy ventures. Additionally, discussions at the summit addressed regional concerns such as climate change and energy transition. The joint commitment between Singapore and Australia towards cross-border electricity trade signals a move towards renewable energy, aligning with the broader global push for sustainability.

Source: South China Morning Post

Vietnam-Cambodia Business Association to promote investment

Business and trade volume between Cambodia and Vietnam is anticipated to grow, as representatives of the Vietnam-Cambodia Business Association (VCBA) have committed to promoting investment opportunities in the Kingdom to Vietnamese investors.

The pledge was made by VCBA president Leng Rithy during a meeting where he led delegates from 16 companies, most of which are actively investing in Cambodia, to engage with Sun Chanthol, deputy prime minister and first vice-president of the Council for the Development of Cambodia (CDC), at the council’s headquarters in Phnom Penh on March 6.

Rithy stated that the association’s members are keenly interested in Cambodia’s rapid development, particularly the efforts of the government in the new legislature. 

He mentioned that in the past, he and member companies have shared their experiences in investing in agricultural sectors such as rice and rubber in concert with Cambodian farmers and investors. 

He asserted that through effective collaboration with the council, the association is committed to enhancing the visibility of Cambodia’s financing opportunities to a broader spectrum of Vietnamese investors.

“VCBA will work with the CDC to showcase the Kingdom’s potential to financiers in Vietnam, with the aim of attracting them to various Cambodian sectors, especially agriculture,” he stated.

In response, Chanthol expressed his gratitude to all investors who have contributed to Cambodia’s economy and expressed optimism for further growth from existing firms in the country.

To read full article, please click here.



Author: Hin Pisei

Source: The Phnom Penh Post

Thai exports of agricultural and agro-industrial products gain from FTAs

Thailand was able to maintain competitiveness in agricultural and agro-industrial product exports last year due to free trade agreements (FTAs) with partners, the Department of Trade Negotiations said on Sunday.
Thailand's exports to FTA partners was valued at US$167.20 billion (6 trillion baht), down 3% year on year (YoY) due to the global economic slowdown amid inflation, rising interest rates and geopolitical conflicts. Despite a decline in total export to FTA partners, Thailand's exports of agricultural and agro-industrial products expanded as partners offered tax waivers on those products. Agricultural product exports were worth $19.56 billion (702.82 billion baht), up 4% YoY, while agro-industrial products exports amounted to $15.07 billion (541.54 billion baht), up 2% YoY. Thailand's exports to main FTA partners like China and ASEAN expanded 11% and 5%, respectively.
Department director-general Chotima Iemsawasdikul said:
"Thailand is the top agricultural products exporter in ASEAN and seventh globally. And Thailand is third highest agro-industrial products exporter in ASEAN and 11th globally."
She explained that Thailand's export of frozen and dried fruits to FTA partners had expanded by 23% YoY. Among other products that saw export expansion were:
- Rice, by 92%, to countries such as Indonesia, the Philippines and Malaysia
- Frozen chicken, by 19%, to China, Japan and Malaysia
- Coffee, by 43%, to Cambodia, Japan and China
- Sugar, by 14%, to Indonesia, Phillippines and South Korea
- Canned and processed fruits, by 9%, to China, Australia and Laos
- Canned and processed vegetables, by 18%, to Japan, South Korea and China
- Ice cream, by 11%, to Malaysia, South Korea and Vietnam
As a key to boost export competitiveness in the global market, Thailand now has 15 FTAs, covering more than 85% of Thai products.
Sri Lanka is Thailand's latest FTA partner, and more agreements were in the process this year to ensure maximum benefits of the country's export, Chotima said.
 
Source : THE NATION

Indonesia Revises TKDN Target in EVs to Attract More Investment

The Indonesian Government revised the target value for the domestic component level (TKDN) in the assembly of battery-based electric vehicles (KBLBB) to attract more investment and accelerate the KBLBB market in Indonesia.

Director of the Maritime Industry for Transportation Equipment and Defense Equipment at the Ministry of Industry Hendro Martono stated in a press conference here Friday that calculation of the minimum TKDN value of 40 percent, earlier set until 2024, will be extended to 2026. Furthermore, the TKDN composition will increase to a minimum of 60 percent during the 2027-2029 period and a minimum of 80 percent in 2030 and thereafter.

Based on the calculation, the TKDN weight for supporting components remains at 10 percent. Meanwhile, the TKDN weight for development and research activities will be reduced, from 20 percent to 10 percent in 2030, he stated. On the other hand, the TKDN weight for assembly components increased, from 10 percent to 20 percent.

In addition, the government provides various incentives for the electric vehicle industry, including tax holidays, or corporate income tax exemptions for companies producing KBLBB. Moreover, a tax allowance or reduction in corporate income tax is provided for companies investing in the KBLBB industry and a zero percent import duty incentive for imports of KBLBB components, he elaborated. Incentives are also given to consumers who buy two-wheeled electric vehicles in the form of a discount of Rp7 million per unit.

(Source: click here)

Indonesia's Economy Clocked Sound Growth Amid Global Uncertainty

President Joko Widodo (Jokowi) stated here on Wednesday that Indonesia's economy is quite strong and experienced good growth in the midst of global uncertainty.

"We must be grateful, thank God, amid the continuous world crises, the economic uncertainty that is difficult to calculate, our economy is quite strong, and among the G20, in the top three economies with good economic growth conditions," the president remarked at the Military-Police Leaders Meeting.

Jokowi noted that Indonesia's economy in 2023 had grown by 5.05 percent, with inflation remaining under control at 2.57 percent.

Furthermore, Indonesia's poverty rate declined to 9.36 percent, the unemployment rate fell to 5.32 percent, and the Gini ratio also declined to be at 0.388 percent.

"Even though we see good numbers, I continue to remind that we must be careful, we must stay vigilant, because, going forward, global competition will become more complex. The direction will become more unclear,” he remarked.

He further stated that the conflicts in Ukraine, Gaza, and Yemen also contribute to the increase in food inflation.

Those conditions have caused several countries to apply protectionism policies for their food commodities.

The president stated that there are around 1,348 food-related protectionism policies applied by countries in the world. The figure showed a threefold increase as compared to 2014 and is projected to continue to rise.

“We know that back then there were many that offered us, for instance, rice. Now, we are looking for rice in producer countries. It is not easy,” he remarked.

He pointed out that countries had halted the exports of food items, both wheat and rice, due to climate change and disruptions in supply chains.


(Read the full article here)

Innovation, critical enabler of transformative climate action: ADB-UN report

Innovation which takes different forms, including the application of new business models, is a critical enabler of transformative climate action, according to a report released by the Asian Development Bank (ADB), United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), and United Nations Development Programme (UNDP).

The report, People and Planet: Addressing the Interlinked Challenges of Climate Change, Poverty, and Hunger in Asia and the Pacific, said innovation can also occur through the production and consumption practices, the way policy is implemented, or novel ways in which firms use technological advances.

It said science plays a big role in advancing innovation, for instance by creating new crops and farming techniques, or new climate resilient infrastructure and circular economy solutions.

“The financial sector and payment systems are also changing rapidly. In many cases, innovation in one area necessitates new ways of doing things in other areas,” it added.

The report cited as an example food systems new climate-resilient crops which call for a host of complementary innovations for the crops to become viable.

These can include sensor-based irrigation systems, financial innovations that allow farmers to use new equipment and services, or shared or pooled access processing facilities and refrigerated transport, it said.

“Governments can provide broad encouragement for innovation ecosystems by creating an enabling environment that connects finance, technology, business, and customers,” it added.

It further cited some of the recommendations in the 2023 Global Stocktaking Technical Synthesis report which are relevant for the region, such as the need for rapid deployment of existing clean energy technologies, including through technology transfer agreements.

The report said multilateral and bilateral technology transfer can help countries scale up their renewable energy and associated technology supply chains.

“Mechanisms to facilitate the process can include joint research and development projects, or technology transfer and capacity building projects that involve research and academic institutions, companies and the public sector,” it said.

The report said international organizations and multilateral development banks are in a good position to provide technical assistance for developing clean energy supply chains, especially if the assistance is aimed at stimulating deeper innovation systems capabilities in the region.

“The needs for such assistance will vary, as each country and region has their own transition scenario,” it added.  

Apart from innovation and entrepreneurship, other key enablers of transformative change include education, awareness raising and skill development; policy coherence; institutional capacity building; finance, funding and investment; and regional cooperation and multi-stakeholder partnerships.

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