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Author: Mei Ling Tan

  • Nok Air suspends Guwahati-Bangkok flights from January 20

    Nok Air suspends Guwahati-Bangkok flights from January 20

    As per reports, Nok Air is expected to resume its operations from April 12, 2020.

    The airline has cited ‘operational reasons’ behind its decision to suspend the flights.

    Nok Air, which is a subsidiary of Thai Airways International, had operated its flights in the Guwahati-Bangkok route twice a week.

    It may be mentioned that Nok Air, which had started its flight operations from Guwahati to Bangkok in September last year, had suspended its operations just four months after airline SpiceJet has suspended the Guwahati-Dhaka direct flight service.

    The reason behind the suspension of the ambitious Guwahati-Dhaka flight service was due to not getting the desired number of passengers.

    Due to poor business operations of the flight service, SpiceJet had first reduced the frequency of the flight service from daily to twice a week.

    However, the new outcome of the flight service still being poor, SpiceJet had finally decided to suspend its operations.

    At present, only two international flights would remain operational from the Guwahati airport and that is Druk Airlines’ flights from Guwahati to Singapore and Guwahati to Paro.

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  • Tet shopping frenzy at Hanoi supermarkets

    Tet shopping frenzy at Hanoi supermarkets

    With a week to go before the Lunar New Year, or Tet, supermarkets in Hanoi are thronged with shoppers.

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  • ATMs stutter during busy Lunar New Year lead-up

    ATMs stutter during busy Lunar New Year lead-up

    Many people in Hanoi and Saigon were unable to withdraw cash from ATMs while online bank transfers also took longer than usual during the weekend.

    Three ATMs belonging to a bank on Hanoi’s Pham Ngoc Thach Street stopped working several times in the past few days, including on early Saturday evening when all simultaneously flashed that services were “not available at the moment”.

    Nguyen Hoang, a customer who tried to withdraw money, said: “I came here because the ATM in Ha Dong District did not let me withdraw, but not only did the transaction fail but my card was also swallowed. I have urgent things that require cash but when I called the hotline, they said I had to wait until Monday to get my card back.”

    Two ATMs belonging to Vietcombank and BIDV in the area also failed to deliver cash, as did others belonging to VietinBank and PVCombank elsewhere in the capital.

    At around 5 p.m. on Saturday a long queue could be seen outside two ATMs in front of the Hanoi University of Science and Technology in Hai Ba Trung District.

    Lien, who had to queue for over 10 minutes to withdraw cash, said: “There are three BIDV ATMs next to each other on Ton That Tung Street, but two of them showed errors resulting in a large number of people queuing up. So I came here.”

    The ATMs have been frustrating customers in Ho Chi Minh City as well.

    Two ATMs on Le Duc Tho Road in Go Vap District saw dozens of customers entering and leaving the cubicles Sunday evening after being informed they had insufficient cash. Some of them said they had already tried four or five ATMs earlier.

    In an industrial zone in District 7, Minh Buu, a blue-collar worker, said many ATMs in the area reported errors when he tried to withdraw cash.

    “There are already very few ATMs in the suburb; now errors keep popping up, tiring us out.”

    The run-up to Lunar New Year is a peak time as demand for shopping and payments skyrocket, especially during weekends, causing even transfers through some banks’ online systems to become slow and error-prone.

    This month, especially during the past week, many Agribank customers have reported being unable to use the bank’s mobile application, which has been showing the “service not available at the moment” error.

    Some have also reported not receiving notifications about money being transferred to their account several days after transactions. The bank’s employees have claimed it was due to system maintenance.

    To meet the soaring demand, the State Bank of Vietnam (SBV) has instructed banks to make specific plans for ATM operations during the end of the year and the Lunar New Year holidays, and closely monitor their ATMs to ensure they operate normally.

    It also told them to take appropriate measures to reduce the load on ATMs in busy areas, warning they would be fined if an ATM is out of order for over 24 hours without customers and the local central bank branch being notified of it.

    But technical issues and local congestion could still occur during peak hours, especially in the case of banks that have yet to upgrade their ATM systems.

    According to the SBV, in addition to existing solutions to supply ATMs with enough cash, banks also need to promote cashless payment methods such as internet banking, mobile banking and paying through POS terminals and by scanning QR codes.

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  • Cebu Pacific Celebrates Dinagyang with Fiesta Fun Fest

    Cebu Pacific Celebrates Dinagyang with Fiesta Fun Fest

    Festivals are much a part of the Filipino culture as its distinct cuisines and hospitality. Filipino festivals across cities are vastly different; with different practices and tributes but still tied to an undeniable sense of Filipino community and camaraderie.

    For 2020, Cebu Pacific launches the Fiesta Fun Fest, a global campaign that will highlight the country’s top festivals that have marked the Philippines as a tourism destination among locals and foreigners alike.

    Iloilo’s Dinagyang Festival is the second stop of the Cebu Pacific Fiesta Fun Fest campaign, following the kickoff activity during the Sinulog Festival in Cebu early this year. In the true spirit of dagyang, Cebu Pacific will be having on-ground booths filled with fun games and prizes. Around 100 Grab cars will also bear the Cebu Pacific brand and its corresponding direct Iloilo routes to highlight the merits of travel, whether by land or air, especially during grand gatherings such as Dinagyang.

    To make this year’s Dinagyang Festival even more fun, Cebu Pacific will be holding a special sale for all routes in and out of its hub in Iloilo. For as low as PHP99, fly direct between Iloilo and Cebu, Clark, Puerto Princesa, Cagayan de Oro, Davao, General Santos and Manila; from Iloilo to Singapore, and vice versa for as low as PHP2016; and Iloilo to Hong Kong for as low as PHP499.

    Iloilo serves as the primary hub of Cebu Pacific in Western Visayas, with nine direct domestic and international routes and 172 flights weekly, catering to a growing number of travelers in the region. Cebu Pacific has maintained its leadership in the Iloilo market, with 54% capacity share.

    Watch out for the next stop of the Cebu Pacific Fiesta Fun Fest! Visit the official Cebu Pacific social media accounts on Facebook, Twitter and Instagram for more details.

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  • Banking systems experience intense Tet surge

    Banking systems experience intense Tet surge

    Banks, ATMs, and online banking systems have been overloaded towards the end of the Lunar New Year, forcing customers to wait long hours.

    Hoa went to a major bank on Hanoi’s Duy Tan Street early one recent afternoon to process the payment of a loan.

    She was happy to notice that her turn would come soon, based on the token number she received, but it took an hour for her to be called.

    The bank was full of faces weary from the long wait, which seemed 30 minutes on average. People found ways to occupy themselves, with some even taking out laptops to work while they waited. Others grew restive and frustrated and left early without bothering for their turn to come.

    A similar scene has been enacted for several days in many banks. On Tuesday (27th of the last lunar month),  the waiting room of a bank in Hanoi’s Dong Da district had around 50 customers waiting at around 3 p.m. Each and every counter was occupied, and the staff had barely any time to break.

    Long queues in front of banks have become a common sight these days. At a mall on the city’s Ba Trieu street, people were also lining up in front of ATMs. Some of the machines are broken, some were overloaded due to a large amount of transactions, and some ran out of cash.

    In highly frequented places, the number of customers seeking banking services kept increasing day after day, slowing down every operation.

    The situation was not much better with online banking systems, which have also been overloaded. Many users complained they could not access their apps, experienced system failure and encountered long delays in carrying out a transaction.

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  • Taxis, ride-hailing apps hike Tet ride charges

    Taxis, ride-hailing apps hike Tet ride charges

    Taxis are refusing to charge by the meter and ride-hailing apps have doubled ‘peak hour’ prices and added surcharges as Tet draws close.

    Monday evening, five days before the Lunar New Year (Tet), Hoang Viet requested a car on ride-hailing app Grab. He was surprised to find that his 14-kilometer trip from an office block in Duy Tan street to the Gia Lam Bus Station cost VND280,000 ($12.11), more than double the usual price.

    When he tried to request rides on other apps like Be and Fastgo, he found that the prices were cheaper, but was unable to find a driver who would accept his request.

    Many others have reported running into similar situations since last week, especially during peak hours when travel demand is high as people rush to shop before Tet.

    Ngoc Mai, another resident, said it took her half an hour to call a taxi home after taking her child to a shopping center in downtown Hanoi.

    “Before opening the door, the driver asked me for VND120,000 ($5.2) for a 5-kilometer trip. This usually costs VND60,000-70,000 ($2.6-3) on regular days,” she said.

    Mai then asked three other taxis parked around the mall, but received similarly high quotes, with drivers saying they were charging more because of traffic jams around the city. Mai ended up requesting a ride on an app, but it took 20 minutes for the driver to come to pick her up.

    During the ride, Mai’s driver apologized and explained that the roads had become heavily congested over the last few days. Despite his company charging higher fees, he was making only VND1 million ($43) from less than 10 rides, while on normal days, his revenue could go up to VND1.5 million ($65), he said.

    “It’s not that we want to reject passengers, but roads are now very busy, especially in downtown streets, where it could take an hour to go just one kilometer. Yes, we have raised prices, but Grab has done so as well,” said the driver of a traditional taxi who did not wish to be named.

    Taxi prices are expected to go even higher, with most-ride hailing firms adding a surcharge to support drivers during the Tet holiday – from January 23-27.

    From Wednesday, passengers will have to pay an extra VND10,000 ($0.43) per trip on GrabBike and VND15,000 ($0.65) on GrabCar, the Singapore-based company has announced.

    Local ride-hailing firm Be also said it was adding a surcharge of VND20,000 ($0.86) per car ride during Tet peak times, 9 a.m.-12 p.m. and 4 p.m.-11 p.m.

    Meanwhile, Indonesia-based Go-Viet has said it will charge an additional VND20,000 ($0.86) for GoBike rides for the first 2 kilometers, and an additional VND5,000 ($0.22) for every kilometer after. It will also charge an additional VND10,000 ($0.43) fee per trip during the night.

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  • AirAsia, Malindo cancel all flights bound to and from Wuhan, China

    AirAsia, Malindo cancel all flights bound to and from Wuhan, China

    AirAsia Group Bhd and Malindo Air have both halted all flights to and from Wuhan, China, in view of the coronavirus outbreak there.

    While Malindo did not specify how long the suspension will be in effect, AirAsia said the canceled flights affect all AirAsia flights bound to Wuhan from Kota Kinabalu, Bangkok and Phuket until Jan 28.

    Both airlines, in making the announcement in separate statements today, said they are closely monitoring the situation in Wuhan.

    “This is in response to the travel ban from the officials in Wuhan on the coronavirus outbreak to ensure the safety, security, and comfort of air travel to the flight crew and guests or passengers,” said Malindo.

    “Passengers who hold a valid booking for travel between Jan 23 and Feb 8 this year may contact our call center at +603-7841 5388 or walk into our ticketing office for further assistance,” it added.

    AirAsia, meanwhile, assures that the safety and wellbeing of its guests and Allstars is its top priority. AirAsia is complying with advice and regulations from global and local health authorities, including the World Health Organisation.

    “AirAsia guests who are in Wuhan are advised to abide by announcements made by the Government and health authorities, and to contact their respective diplomatic missions or embassies in China for assistance,” it said.

    It has also arranged the following alternatives for those who wish to alter their traveling plans to and from Wuhan:

    1. Reroute: Reroute to any other mainland China station for flights to Kota Kinabalu, Bangkok and Phuket without additional cost, subject to seat availability. Applicable for all flights until Feb 29, 2020, or

    2. Credit account: Retain the value of your fare in your AirAsia BIG Loyalty account for future travel with AirAsia. The online credit account is to be redeemed for booking within 90 calendar days from the issuance date for your travel with us. The actual travel dates can be after the expiry date as long as our flight schedule is out. Applicable for all flights until Feb 29, 2020, or

    3. Full refund: Obtain a full refund to your original payment method for the amount equivalent to your booking if flights are canceled. Applicable for all flights until Feb 15, 2020 and return flights from Feb 16-29, 2020.

    “Guests whose flights fall into the above date range can obtain a full refund in the amount equivalent to that booking in the form of original payment. Refund requests can be made with AVA at support.airasia.com. From the main menu categories available, click on ‘refund’ then ‘new refund request’ and finally ‘AirAsia flights to/from Wuhan’. From there, simply follow the instructions as directed by AVA.

    “For bookings made through travel agents including online travel agents, refund requests are to be made via the respective travel agents,” AirAsia added.

  • Sabeco reports record profits

    Sabeco reports record profits

    Post-tax profits surged 22 percent year-on-year for Vietnam’s largest brewer Sabeco, reaching VND5.37 trillion ($231.96 million), its highest annual profit ever.

    The brewer’s 2019 revenues increased 5 percent year-on-year to VND37.9 trillion ($1.64 billion), with improved business results mainly attributed to heavy investments in sales and marketing, Sabeco management said in the company’s latest annual financial report.

    Sabeco spent VND1.49 trillion ($64.33 million) on marketing last year, a year-on-year increase of 31 percent, the report said.

    Revenues in the final quarter, however, declined 7 percent year-on-year to VND9.73 trillion ($420.11 million), but post-tax profits rose 18 percent to VND1.09 trillion ($47.06 million). This was due to profits from financial investments surging 54 percent, and profits from joint ventures and associate companies rising 41 percent, Sabeco said.

    By the end of 2019, Sabeco’s total assets and liabilities were valued at approximately VND27 trillion ($1.17 billion) and VND6.9 trillion ($297.92 million) respectively.

    Sabeco is owned 53.59 percent by Vietnam Beverage, a subsidiary of Thai beverage company ThaiBev. The Vietnamese government, represented by the Ministry of Industry and Trade, retains a 36 percent stake in the company.

    According to the latest figures by securities firm FPTS Securities, Sabeco held 40.9 percent of Vietnam’s beer market by the end of 2018, followed by Heineken Vietnam with 23 percent and local brewer Habeco, with 18.4 percent.

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  • Vietnam eyes 5G equipment sale to US

    Vietnam eyes 5G equipment sale to US

    Vietnam hopes to sell locally-made 5G equipment to the U.S. as it prepares the commercial launch of the telecom technology this year.

    Information and Communications Minister Nguyen Manh Hung proposed to a delegation of the U.S. House of Representatives Monday that they initiate discussions of 5G technical standards to see if made-in-Vietnam equipment could enter the U.S. market.

    Vietnam plans to commence commercial operations of 5G this year, becoming among the first countries in ASEAN to do so, he said.

    The minister had set the stage for launching the new telecommunications technology by making the first 5G phone call on January 17, using equipment manufactured by Vietnamese telecom giant Viettel.

    The military-run Viettel is set to become the sixth firm in the world to launch its own 5G equipment after Ericsson, Nokia, Huawei, Samsung, and ZTE.

    Viettel plans to commercially launch 5G services this June. It has been testing and installing equipment since last year.

    Hung, a former Viettel CEO, has been pushing 5G research in Vietnam since taking over as communications minister towards the end of 2018. He asked local firms to produce their own equipment so that Vietnam is among the first countries in the world to launch 5G technology.

    The number of 5G subscriptions in Vietnam could hit 6.3 million by 2025 or 6 percent of total mobile subscriptions, technology conglomerate Cisco has forecast.

    In ASEAN, Singapore is expected to lead the way in launching 5G in 2020, followed by Vietnam, the Philippines, Malaysia, and Thailand, according to U.S. consulting firm AT Kearney.

    5G is said to offer speeds 100 times faster than 4G and support new applications like remote medical procedures and autonomous driving.

  • Kung Hei Fat Choi!

    Kung Hei Fat Choi!

    As we welcome the Year of the Rat, all of us at Retailnews.asia would like to wish you and your families a happy, healthy and prosperous Lunar New Year!

    This Lunar New Year marks not only the beginning of a new decade but also the start of the 12-year Chinese zodiac cycle. The Year of the Rat is known to be a symbol of wealth, vitality and the beginning of a new day. Likewise, crm.retailnews.asia wishes you all the best in a fresh start to 2020 filled with great health and prosperity.

    We hope you surround yourselves with family and friends as you welcome the year with celebration and love.

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  • Singapore Firms Eye Malaysia Digital Bank Licenses

    Singapore Firms Eye Malaysia Digital Bank Licenses

    Five licenses are up for grabs under a new regime announced by Bank Negara Malaysia, the country’s central bank.

    Singapore-based ride-hailing giant Grab and gaming technology firm Razer are exploring the feasibility of applying for a Malaysian digital bank license.

    Local lenders Hong Leong Bank, Maybank, CIMB, as well as Ant Financial, Malaysian telecommunications conglomerate Axiata and BigPay, the financial services arm of low-cost airline AirAsia, are also reportedly interested in the license.

    Grab, together with telecoms giant SingTel, and Razer, as the lead in a six-member consortium, were among the 21 applicants for up to five licenses to be issued under Singapore’s digital bank regime, set to be launched in 2020.

    In December, Malaysia’s central bank announced that it would issue five new digital banking licenses under a proposed framework that will be finalized in the first half of 2020, which will cater to online banks offering both conventional and sharia-compliant services.

    The draft proposal said the new Internet-based lenders could help close the gap in Malaysia’s underserved customers and unbanked individuals. The minimum capital requirement of RM100 million ($24.5 million) for the virtual bank’s foundational phase, which would be increased to RM300 million subsequently, is substantially lower than Singapore’s requirements.

  • First Mott 32 Singapore restaurant opens at Marina Bay Sands

    First Mott 32 Singapore restaurant opens at Marina Bay Sands

    Hong Kong restaurant chain Mott 32 is launching at Marina Bay Sands today in partnership with Maximal Concepts.

    After Hong Kong, Las Vegas, Seoul and Vancouver, the opening of Mott 32 Singapore brings the brand’s approach to regional Chinese cuisine to the Lion City.

    The restaurant is known for its use of recipes handed down across the generations, prepared using progressive cooking techniques and premium ingredients.

    “At Mott 32, we are dedicated to serving authentic, timeless recipes that pay homage to the rich heritage of Chinese cuisine,” noted Mott 32’s executive chef Chan Wai-Keung. “Our approach to cooking is to retain the essence and original flavors of the dish while elevating it using quality produce.”

    “Singapore has a sophisticated and incredibly talented dining scene,” said Maximal Concepts co-founder Xuan Mu. “The opening of Mott 32 Singapore marks a significant milestone for us, and we hope that it will be well-received amongst Singaporeans.”

    “We welcome guests from all around the world to explore the intricacies of Chinese cuisine at Mott 32 Singapore, and look forward to showcasing a combination of Mott 32’s iconic dishes and Singapore-exclusive creations,” said Chan.

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  • ComfortDelGro Gets OCBC Green Loan

    ComfortDelGro Gets OCBC Green Loan

    The transport operator becomes the first Singapore land transport company to adopt a green loan, which will be used to finance its hybrid bus fleet in Melbourne, Australia. Singapore land transport operator ComfortDelGro’s Australia subsidiary has received a A$25 million ($17.2 million) green loan from OCBC Bank, a joint statement on Tuesday announced.

    The loan was structured in accordance with the Green Loan Principles issued in 2018 by the Loan Market Association and Asia Pacific Loan Market Association. It will be used to purchase 50 hybrid buses that use 30 percent less fuel and emit significantly less noise when idling.

    As an environment-conscious transport company, sustainability considerations are indeed at the core of our business strategy, and this green financing is a natural fit for us, Yang Ban Seng, managing director and Group CEO of ComfortDelGro, said in the statement.

    The ComfortDelGro was added to the Dow Jones Sustainability Asia Pacific Index (DJSI Asia Pacific), which serves as a benchmark for investors who integrate sustainability considerations into their portfolios, in September 2019.

    OCBC said the green loan is an important step towards its goal of building a S$10 billion ($7.42 billion) sustainable finance portfolio by 2022.

    «We hope this green loan by ComfortDelGro sends a positive message to encourage peer industry players to take steps to support sustainable urban development through green financing options,» Elaine Lam, OCBC’s head of Global Corporate Banking, said.

  • Japanese franchise Kura Sushi to launch in China

    Japanese franchise Kura Sushi to launch in China

    Japanese restaurant franchise Kura Sushi is launching in its third overseas market, China.

    The brand has already enjoyed some success in the US and Taiwan, and is now set to open its first Chinese mainland location in Shanghai. Ten further locations are planned for the territory later this year.

    According to a Nikkei report, the firm’s current strategy is to “double its revenues outside Japan to ¥300 billion (about US$2.7 billion) in 2030 by increasing its total number of outlets worldwide to 1000”.

    The move coincides with Kura Sushi’s launch of its global flagship in Tokyo, where it expects to serve 2000 people per day, including around 600 tourists.

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  • Analysts Downgrade Thailand’s Oldest Banks

    Analysts Downgrade Thailand’s Oldest Banks

    Siam Commercial Bank, one of Southeast Asia’s largest lenders, has prompted cuts from analysts on concerns of its loan book.

    After the bank reported its fourth-quarter results, nearly a third of the analysts who cover the Thai bank cut their recommendations the past week, wiping out nearly $2 billion from its market value. Asia Plus, Credit Suisse and J.P. Morgan Chase were among the brokerages that cut ratings.

    Thailand’s economy in 2020 is still surrounded by negative factors. Asset quality is still at risk and needs to be watched closely. said Therdsak Thaveeteeratham, an analyst at Asia Plus Securities.

    Siam Commercial and other Thai lenders have closed branches while increasing digital banking in an effort to boost earnings. However, a struggling economy has increased bad loans at the bank, which is more than a century old and counts King Maha Vajiralongkorn as its biggest shareholder.

    Siam Commercial’s shares posted their biggest one-day decline since 2008 on January 20, the first trading day after the fourth-quarter earnings report showed a jump in bad-loan provisions.

    Still, the downgrades and reaction may be overdone as Siam Commercial raised loan-loss provisions in 2019, according to Diksha Gera, a Bloomberg Intelligence analyst. The bank may consider boosting the net interest margin and cut costs to counter weak revenue, she said.

    The bigger risk we see is potential M&A following recent moves of other local competitors such as Bangkok Bank to make acquisitions, she notes.

    Bangkok Bank last month announced that it would acquire a controlling stake in Indonesia’s PT Bank Permata for about $2.7 billion to expand its presence in Southeast Asia’s biggest economy.a