Economy & Trade
The latest issue of ASEAN Briefing Magazine titled, “How to Set Up in the Philippines“, is out now and available to subscribers as a complimentary download in the Asia Briefing Publication Store.
In this issue of ASEAN Briefing
- Political, Economic, and Social Introduction to the Philippines
- Entering the Philippine Market: Comparing Models
- Corporate Establishment in the Philippines: A Step-by-Step Guide
- Using Singapore as a Gateway to the Philippines
Laos: Korean businesses seek local franchise partners
Korean businesses are increasingly looking to launch their products in the Lao market through the franchise route. At least seven prominent Korean brands recently participated in the K-Franchise Business Meeting 2017 organised by the Korea Trade Investment Promotion Agency (KOTRA) in Vientiane, where they met with potential Laotian partners. The franchise brands represented at the event include Well-Being Pizza, Elli Cel, Didim (Mapo Seagull), Street Churros, Chicken Derby, Beaupeople and Y Entertainment.
With about 257 projects worth US$ 800 million, Korea is the sixth largest foreign investor in Laos. Bilateral trade between the two countries reached US$ 199 million in 2016. Laos’ exports to Korea were valued at US$22.9 million in 2015. The country’s main exports to Korea include potassium fertilizers, coffee, lead bullion and scrap, fabrics and ingredients for oriental traditional medicine. In 2015, Korea’s exports to Laos were valued at US$ 170 million. The main items of export from Korea to Laos include vehicles, trucks, automotive parts, construction equipment and electronics.
By Bradley Dunseith
Officially Negara Brunei Darussalam, the oil-rich independent sultanate of Brunei shares land borders with the Malaysian state of Sarawak on Borneo island and opens up to the South China Sea.
In 2015, Brunei exported US$6.35 billion worth of goods and imported US$3.89. Brunei’s principle export destinations include Japan, South Korea, Thailand, and India. Brunei imports predominately from Malaysia, China, Singapore, the United States, and South Korea.
Singapore: Economy forecast to register positive growth
According to the Monetary Authority of Singapore (MAS), the island republic’s economy is forecast to grow by 1 to 3 percent in 2017. The MAS Annual Report released on 29 June indicated that while the country’s economic growth has been somewhat uneven across sectors, it is expected to gradually broaden to the rest of the economy over the course of 2017.
According to the report, the manufacturing, transport and logistics, and the wholesale sectors, accounting for 43 percent of GDP, were the major drivers behind the economy’s rebound since the fourth quarter of the previous year. On the other hand, the services sectors comprising finance, business processes, and IT-enabled services, accounting for 30 percent of GDP, recorded mixed outcomes in the last two quarters. These sectors are, however, poised to register higher growth in the latter half of 2017. Retail and food services, and construction sectors, which account for 17 percent of GDP, are expected to remain weak.
By Bradley Dunseith
Cambodia is strategically positioned within South East Asia. With a major port on the Gulf of Thailand, the country also shares land borders with Thailand, Laos and Vietnam.
In 2015, Cambodia exported US$16.1 billion worth of goods and imported US$15.3 billion. Cambodia’s top export destinations include the United States, the United Kingdom, Germany, Japan, and Vietnam. Cambodia’s top import sources include Thailand, China, Vietnam, Hong Kong, and Singapore. Furthermore, many goods traveling through South East Asia go through Cambodia to reach their final destination.
In this article we explain best practices for import into and exporting out of Cambodia, while highlighting the unique procedures required to ship imported goods through the country on transit clearance.
Op-ed by Bob Shead
In this article, I will discuss and explain the advantages and potential business opportunities of solar energy in the Philippines. There has been a general expansion in solar power generation in Asia as opposed to Europe and the rest of the world, and ASEAN countries, including the Philippines have a greater growth potential. Current electricity costs in the Philippines are the highest in Asia, including Japan. This makes solar power a much cheaper and economically more advantageous option in the Philippines. The Philippines is a country of 102 million people, and is a relatively fast growing Asian economy, and it is anticipated that 7000MW of power generation will be added over the next five years.
An estimated 16 million people are off the grid with regards to current electricity supply, and this includes approximately 6000 schools. This demonstrates the potential for supplying solar power to the Philippines. Residents in off grid areas, are beginning to arrange the finance to purchase solar panels, batteries etc. A friend recently mentioned to me that his golf caddie, who lives in a local off grid village, near the golf course, had invested in two solar panels with batteries, at a cost of about P5000 (US$100), and this has supplied her house with electricity for lights, fans, a small refrigerator and a TV. The Philippine Government has also committed to a 70% reduction in carbon emissions by 2030 and has a 15.3GW renewable energy target, thus encouraging a large increase in solar power as an energy source.
By Bradley Dunseith
The Philippines is an archipelago comprising of 7,641 islands. The country shares maritime borders with China, Indonesia, Japan, Malaysia, Taiwan, Vietnam, and the island nation of Palau. In 2015, the Philippines exported goods valued at US$77.9 billion and imported products worth US$76.8 billion. The Philippines’ top export destinations are China, Japan, the United States, and Singapore; and the country’s top import partners are China, Japan, Korea, the United States, and Thailand. In this article we explain best practices for importing into and exporting out of the Philippines.
Malaysia: World Bank forecasts positive growth in 2017
According to the Malaysia Economic Monitor, launched by the World Bank, the country’s growth rate for 2017 is forecast to increase to 4.9 percent. Malaysia registered a 5.6 percent year-on-year growth in the first three months of 2017, its highest quarterly growth rate in two years. According to the report, Malaysia’s positive growth outlook is driven largely by strong private consumption, supported by improving labor market conditions. Increasing private investments and major government-led infrastructure projects also contributed to it.
According to the report, an upturn in the US was reflected in the rising external demand, and stabilizing commodity prices as well as a recovery in global trade further helped to boost growth. The report also includes a special section on the importance of good data and effective data management, and how this can inform policy-making and improve service delivery. The Malaysia Economic Monitor series provides an analytical perspective on the policy challenges facing the country as it develops into a high-income economy.
By Bradley Dunseith
Nestled between the South China and Andaman Seas, Malaysia is a historic trading center and strategic operating location – bordering Brunei, Indonesia, Singapore (via bridge), and Thailand by land and the Philippines and Vietnam by sea.
In 2015, Malaysia exported US$254 billion and imported US$175 billion worth of goods and services. Malaysia continues to liberalize its import and export regulations; but, complex goods-specific rules still exist. In this article, we explain best practices for importing into and exporting out of Malaysia.
By Bradley Dunseith
As Myanmar continues to liberalize its regulatory landscape, new opportunities are emerging for cross-border trade. Myanmar borders India and China – the world’s most populous countries – and is a member of the Association of Southeast Asian Nations (ASEAN). Political reforms in Myanmar has spurred world powers to lift trade sanctions against the South East Asian nation formerly called Burma.
Import and export operations in Myanmar have become easier and more profitable. In the financial year (FY) 2016-17 (ending 31 March) private players have exported US$4.8 billion and by sea and US$3.2 billion over land; private players have imported US$1.3 billion by sea and US$2.8 billion over land. In this article we explain best practices for importing into and exporting out of Myanmar. As Myanmar continues to undergo economic reforms, we advise all businesses to monitor new and upcoming legislations closely.