Author: Mei Ling Tan

  • First Cross-Border Rewards Platform UTU Launches

    First Cross-Border Rewards Platform UTU Launches

    Father and son team Asad and Ameer Jumabhoy from tourist VAT refund and payments technology company The Scotts Group, and Jeremy Tan, an expert in financial technology, mobile payments and loyalty platforms from Korvac Holdings, announce the launch of UTU, a cross-border loyalty and rewards platform that enables people to convert, earn and redeem points in real time at any UTU merchant outlet worldwide through their smartphone.

    UTU consolidates rewards points from multiple credit and debit cards; eliminates the time it takes for those points to be processed; removes the barriers to cross-border loyalty; and offers shoppers a new kind of consumer model – one that enables them to earn rewards points now and pay with them at point of sale. The platform also features a merchant portal that allows brands to set up their own promotions, optimize campaigns and track their return on engagement.

    “UTU’s potential lies in its ability to engage merchants with consumers, acquirers with merchants and issuers with their consumers on a single integrated platform,” says Asad Jumabhoy, an entrepreneur and pioneer in the digitization of global tax-free shopping. “Real innovation minimizes the gap between process and people. With UTU, we’re bringing it all together in the retail, travel and rewards space at home and away, online and instore.” 

    UTU launches in Thailand in November, with further roll out happening in Asia in 2016/2017. The choice of Thailand as a launch location is attributed to the country’s deep loyalty culture, and presents UTU the opportunity to fill an immediate need (e.g. as of August 2016 over 70 million credit and debit cards were in circulation in the country; Thais carry an average of seven loyalty cards each; and brand rewards programs are the country’s most popular Google search category). Brand partners at launch include Visa Thailand, the Tourism Authority of Thailand, RSH Limited and Singapore’s NTUC Link. Availability in the UK, Europe and US is anticipated in 2017. 

    “We are excited to be working with UTU on the expansion of the Plus! Partners network beyond Singapore and is in line with our vision to provide gratifying experiences for members of the Plus! Rewards Program,” says Tony Tan, CEO of NTUC Link. “This synergistic partnership allows Plus! Members to maximize the mileage of their overseas expenditure as points earned during their travels can be converted and redeemed for rewards when they return home. The growing number of leisure and business travelers in our membership base will definitely benefit from the enriched array of options UTU will make available around the world.”

    “UTU promises to enhance everyday retail experiences by providing greater seamlessness between customers and brands across borders,” says Indranu Hati, CEO of RSH Thailand Group. “UTU is the perfect loyalty service partner for us, given our growing footprint in nearly a dozen countries across Pan Asia.” 

    UTU is a response to the observation that the tourist today is a local tomorrow, and a local today is a tourist tomorrow. With more than one billion people travelling to foreign countries a year, locals and tourists want integrated loyalty programs, greater ease in managing their rewards points and more relevant deals from merchants. With UTU, shoppers continue to be rewarded, regardless of geography, through the one piece of technology they use every day – their mobile phone. 

    To use UTU, users download the free mobile application; register up to five credit or debit cards on to the UTU app; earn rewards points when they shop; convert those points through the UTU platform; and spend them at thousands of participating redemption outlets. Users can also gift points, select to receive promotions and earn extra points through merchant engagement.

    The global loyalty industry is estimated to reach US$20 billion by 2020. Loyalty management today is an expensive and segmented process which has resulted in a plethora of programs delivering incremental advantages to the consumer. Merchants bear the cost of loyalty systems and front line education and training. Shoppers are burdened with physical cards and are responsible for monitoring their points and merchant offers through separate portals. UTU eliminates the inconvenience for all parties and provides a streamlined experience. 

    “We congratulate UTU on launching this global loyalty rewards program and choosing Thailand as its springboard,” says Suripong Tantiyanon, Country Manager, Visa Thailand. “Through Visa Direct, UTU taps the push payment capability of Visa’s global payment system to redeem points and rewards.” 

    “Loyalty is the key to brand success in a digital world, yet we’re still limited in how we are rewarded for how we choose to spend our money,” says Ameer Jumabhoy, a second-generation student at MIT Sloan School of Management involved in MIT’s Digital Currency Initiative. “What we’re working to achieve with UTU is to remove those boundaries and give people the freedom to get more.”

  • 2C2P’s Online-To-Offline E-commerce Service Now Available At Over 320,000 Locations

    2C2P’s Online-To-Offline E-commerce Service Now Available At Over 320,000 Locations

    2C2P, the leading Southeast Asian payments company which processes billions of dollars in transactions each year, has announced 320,000 offline payment locations for its ‘123’ payment solution. ‘123’ is an alternative payment service. Through it, consumers of 2C2P’s merchants across Southeast Asia (SEA) can pay for their online purchases with cash or alternate means at these 320,000 offline payment locations. 2C2P’s merchant partners include some of the largest online retailers across Southeast Asia, spanning the travel and tourism, retail, food and beverage and hospitality industries, among others.  123 enables these online retailers to bring online commerce to the region’s unbanked population which, according to KPMG, spanned 73 per cent of the region’s population, or 438 million people.  

    At online check-out, their consumers will have the option to pay for purchases using 123. They will be provided a bar code which can be printed out or scanned from their mobile devices, enabling them to then pay with cash or alternate means 2C2P’s extensive network of offline payment locations – available through 2C2P’s channel partners. Payment channels include cash over-the-counter at retail chains and agents, ATMs and electronic kiosks (such as AXS, SAM, SingPost), as well as internet banking and mobile banking. These locations are available across Southeast Asia, including Indonesia, Malaysia, Myanmar, the Philippines, Singapore and Thailand.

    Bringing e-commerce capabilities to rural Myanmar

    123 has increased its payment locations across the SEA region, with 12,000 new locations added in Myanmar in 2016, near ten times the network of the country’s largest bank. It has achieved this by establishing partnerships with Myanma Post Offices, Myanmar Awba Group and ABC convenience store chain. Retailers and merchants including Myanmar National Airlines (MNA) and Oway are among the first in Myanmar to actively offer 123 to their customer base.

    MNA is the largest airline carrier, and one of only two international carriers in Myanmar. It has the most extensive route network within the country. With 123, its customers can book their tickets online and then pay at over 12,000 physical locations across Myanmar, or pay through AYA Mobile Banking and branches. Customers of Oway, Myanmar’s largest online travel agent, can use 123 to make travel bookings more convenient and accessible – all without a debit or a credit card.

    Aung Kyaw Moe, CEO and Founder of 2C2P said, “2C2P has made extensive efforts to open up Myanmar’s unbanked population to e-commerce. As the country continues to see increased mobile penetration, rising urbanization and improved consumer spending, there is an urgent need to modernise its e-commerce and payments infrastructure. 2C2P’s vision is to bring e-commerce to every single person in Myanmar, and more broadly, in Southeast Asia. In so doing, we look to build the region’s e-commerce future.

    “2C2P, through 123, looks to bring convenience to Myanmar’s citizens, particularly those that remain underserved by banking and financial institutions – lacking banks accounts, credit and debit cards or access to a bank branch. They can now, for the first time, tap into the fast-growth of national, regional and global e-commerce by paying for their online purchase at a convenient offline location via 2C2P’s extensive network of physical channel partner locations,” added Aung.

    Myanmar’s Ministry of Hotels and Tourism estimates 6 million annual inbound tourists for 2016, a 25 per cent increase from 2015 (4.68 million). This number is predicted to cross 7.5 million by 2019. The Asian Development Bank (ADB) is optimistic that tourism will drive the country’s overall economic growth. It forecasts tourism revenues to have increased by 19 per cent from 2014 to 2015 to US$2.1 billion – representing over 4 per cent of Myanmar’s GDP.  Asia-Pacific will overtake North America to become the largest digital travel market globally in 2019, according to eMarketer.

  • PayPal appoints Somwang Luangphaiboonsri as Country Lead for PayPal Thailand

    PayPal appoints Somwang Luangphaiboonsri as Country Lead for PayPal Thailand

    PayPal, a global leader in digital payments, has appointed Somwang Luangphaiboonsri as Country Lead of its Thailand subsidiary. 

    As Country Lead, Mr. Somwang will be responsible for assisting PayPal to capitalize on the explosive growth of cross-border e-commerce in the Thai market. Together with the newly-established PayPal Thailand team, Mr. Somwang will also be focused on educating Thai merchants on the growth opportunities available in the global e-commerce marketplace. 

    Rahul Shinghal, General Manager for PayPal Southeast Asia said, “I am pleased to announce Somwang’s appointment as the Country Lead for the Thailand office. Somwang has been instrumental in many of our partnership dealings with Thai merchants, including Thai Airways.  I am excited to see the growth of our offerings to customers in the market.” 

    Having spent more than 16 years in the finance and technology industries, Mr. Somwang is a veteran in the e-commerce space. Prior to joining PayPal, Mr. Somwang co-founded a domestic online payment service provider and built the company to be the platform of choice for many Thai consumers. He is well-entrenched in the Thai payments scene, and is also a secretary of the Thai E-Commerce Association and the secretary of Thailand ePayment and eMoney Association.

    “Fintech is a hot topic right now and Thai businesses will need guidance to help them navigate through the fast-changing payment innovations in order to tap on the consumer growth opportunity. I am looking forward to PayPal introducing new solutions for its Thai merchant partners for their evolving customer needs and building PayPal’s presence in Thailand,” said Mr. Somwang. 

    The appointment of Mr. Somwang is just one of the latest steps taken by the digital payments company to reinforce its position in Thailand this year. PayPal has been actively building its merchant portfolio to enable Thai businesses to have access to a seamless cross-border payment experience. In August 2016, an MoU was signed with the Department of International Trade Promotion (DITP) to promote and facilitate cross-border trade for Thailand’s small and medium sized businesses. PayPal also onboarded leading travel businesses including Centara Hotels & Resorts, Centre Point Hotels Group, and Thai Airways as merchant partners that same month, being the sole payment provider for their cross-border online payments. 

  • Indonesian ministry to boost fish consumption

    Indonesian ministry to boost fish consumption

    The Indonesia Industry Ministry will continue to encourage and increase fish consumption in various regions to raise domestic demand for fish, in an effort to advance the maritime and fisheries sector.

    “We will boost fish consumption, apart from exports, through developing traditional fish industry, which would increase the demand in the fishery sector at home,” Industry Minister Airlangga Hartarto said.

    The minister made the remarks in his address to the working meeting of the Indonesian Chamber of Commerce (Kadin) on fisheries affairs in Jakarta on Monday.

    Hartarto said that his ministry would also encourage fish consumption on a national scale.

    Slamet Soebjakto, Director General of Fisheries of the Ministry of Maritime Affairs and Fisheries, said his ministry wanted to increase the peoples sources of protein intake through increasing their fish consumption.

    It was earlier reported that the Indonesian government had been giving priority to increase the fisheries production by relaxing regulations for fishermen and local industries. The move is meant to support these sustainable industries in the development of the national fisheries sector and maintain seafood sovereignty.

    As part of the efforts to boost fish production, the government, though the Ministry of Maritime Affairs and Fisheries (KKP), had earlier built 15 Integrated Fisheries and Marine Resource Development Centers (SKPT) in various regions in the country. The aim of the SKPT is to boost fishery exports directly from the center without the need to go to Jakarta.

    The SKPT aims to maintain food resilience, increase fish consumption, foreign exchange earnings through exports, and raise the income of the people.

    Five of the SKPT are located in Simeullue (Aceh), Natuna (Riau Islands), Tahuna (North Sulawesi), Saumlaki (Maluku) and Merauke (Papua).

    Ten others are also built in Mentawai Island (West Sumatera), Nunukan (North Kalimantan), Talaud (North Sulawesi), Morotai (North Maluku), Biak-Numfor (West Papua), Sarmi (Papua), Mimika (Papua), Tual (Maluku), Rote Ndao (East Nusa Tenggara/NTT), and Maluku Barat Daya (Maluku).

  • Soekarno-Hatta Airport train expected to be operational by July 2017

    Soekarno-Hatta Airport train expected to be operational by July 2017

    The railway service connecting Jakarta to Soekarno-Hatta International Airport in Tangerang, Banten Province, should be complete and fully operational by July 2017, President Director of PT Railink Heru Kuswanto said here Monday.

    The service will provide 124 trips per day, with each train consisting of 10 coaches capable of transporting 274 passengers per trip.

    It is expected to run every 15 minutes to transport a total of 33,976 passengers per day, Kuswanto said.

    Canadian firm Bombardier was appointed to manufacture the trains.

    “The coaches will be delivered from Sweden in March 2017,” Kuswanto said.

    The government has invested US$70 billion to procure 10 trains from the rail equipment division of Bombardier.

    The trains will be customized to meet the national standard of railway gauge of 1,067 millimeters.

    The government has a budget of Rp2.7 trillion for the construction of the airport railway service which will be integrated into several Jakartas city train stations such as Manggarai, Sudirman Baru, Duri, and Batu Ceper.

    The train journey from Manggarai Station to Soekarno-Hatta International Airport is expected to take 54 minutes at Rp100,000 per trip.

    The railway network will be integrated with Terminal 1, 2 and 3 of the Soekarno-Hatta International Airport.

    PT Rilink is a joint venture enterprise between national railway company PT Kereta Api Indonesia and the state-owned airport service enterprise PT Angkasa Pura.

  • Indonesia, Australia Cooperates on Mining Gold, Copper

    Indonesia, Australia Cooperates on Mining Gold, Copper

    National mining company PT. Aneka Tambang (ANTAM) and Australian mining company Newcrest Mining Ltd. are building a partnership in order to explore gold and copper potential in Indonesia.

    A statement released by the Australian Embassy on Sunday, November 6, 2016, mentioned that the collaboration document between both countries was signed by Indonesian Trade Minister Enggartiasto Lukita and Head of the Investment Coordinating Board Thomas Lembong in Sidney.

    Australian Ambassador to Indonesia Paul Grigson, who was present during the document signing, also welcomed the collaboration. “Two-way investment is a form of acknowledgment that both countries’ economics have many potential to offer,” Paul said.

    Indonesia and Australia have decided to raise economic issues in both countries’ bilateral partnership by reviving the Indonesia-Australia Comprehensive Economic Partnership Agreement (IACEPA), according to Grigson.

    “More investment means joint prosperity,” Grigson said, while adding that increasing investments will create new job opportunities for both countries.

    Indonesia-Australia partnership in the gold and copper mining sector has been established since late 2015 in the form of preliminary studies.

    The preliminary studies were later followed up with a joint exploration in Indonesia.

  • Indonesia expects 250,000 Taiwanese tourists

    Indonesia expects 250,000 Taiwanese tourists

    Indonesian Economic and Trade Office to Taipei (KDEI) is expecting more than 250 thousand tourist arrivals from Taiwan to Indonesia by the end of 2016.

    “In 2015, the number of Taiwanese tourists visiting Indonesia was 211 thousand. Hopefully, by the end of this year, this number will increase as we are also actively promoting tourism under the Wonderful Indonesia brand,” KDEIs Tourism and Transportation Director Agung Sepande said here on Monday.

    He noted that about 70 percent of Taiwanese tourists travel to Bali as the island is perceived as an attractive place and has various sites of tourist interest.

    To attract more Taiwanese tourists, the KDEI is promoting tourist sites in other areas, too.

    “We are inviting Taiwanese journalists to support this promotional exercise. We will take them to Bali and Lombok. Next year, journalists will visit Jakarta and Yogyakarta,” Agung pointed out.

    He noted that Taiwanese tourists in Indonesia want to dive and surf because the countrys beaches are very scenic and conducive to these activities.

    At the Asia Pacific Culture Day 2016 held by Taiwan some time ago, Indonesia had promoted culture and maritime tourism to thousands of visitors from more than 20 countries.

    Taiwan itself is a tourist destination with a variety of sites that accentuate cultural, culinary, shopping, romantic and ecological aspects.

    In Taiwan, travel guides divide the country into North, South, Central, East and the part outside the Formosa Island.

  • Brocade migrates BookMyShow to new IP network

    Brocade migrates BookMyShow to new IP network

    Brocade has migrated BookMyShow, India’s largest online entertainment ticketing brand, to a new IP network optimized for application performance.

    The deployment has further enhanced the booking experience offered by BookMyShow by enabling it to better handle increasing peak demands and roll out new services on the fly. The solution also provides it with a flexible foundation to continue its rapid market penetration in India.

    Alongside online movie ticketing, BookMyShow also offers non-movie ticketing for plays, sports, and live events, leading to a tremendous increase in its user base and the amount of data traffic across its platforms.

    To meet the growing scale of its operations, BookMyShow has been constantly upgrading its technologies and infrastructure at the back end to continue offering a seamless booking experience, especially during the release of blockbuster films and bookings for key non-movie events.

    “People in India are increasingly realizing the convenience and benefits associated with online ticketing,” said Viraj Patel, VP of Technology, BookMyShow.

    “This, coupled with increasing smartphone and mobile Internet penetration, is resulting in more users experiencing BookMyShow. Over 70% of our transactions are already through mobile. This makes it imperative for BookMyShow to pre-empt demand and traffic spikes to ensure that its infrastructure can continue delivering a consistent and seamless booking experience.”

    “Brocade has designed a solution optimized to our requirements, thereby preventing the surfacing of any new bottlenecks and, at the same time, enabling us to scale on demand while ensuring 100 percent uptime.”

    “Delivering 24×7 e-commerce availability is always a challenge and online ticketing, with its spikes in demand, takes things to an extreme,” said Edgar Dias, senior regional director for Brocade India.

    “With Brocade VDX 6740 switches and Brocade VCS Fabric technology, we have been able to provide BookMyShow with a network infrastructure that enables a more automated and dynamic operating model, allowing the data center as a whole to respond rapidly to changing patterns of demand. At the same time, this network architecture can be scaled to handle massive growth in online ticket sales in the coming years.”

  • BMW warns profits under pressure as car margins slip

    BMW warns profits under pressure as car margins slip

    BMW’s profit margins on cars fell in the third-quarter, hit by spending on more engineering staff and new electric car technologies against a backdrop of stiffer price competition in the U.S. luxury car market.

    BMW and its rivals are struggling to maintain profit levels amid heavy investment in new technology including electric and self-driving cars, cleaner diesel engines as well as new ride-hailing business models to rival Uber.

    The Munich-based carmaker reiterated its full-year target of a slight increase in group pretax profit but warned that margins would remain under pressure due to continued investment.

    “Costs generally rise towards the end of the year so we expect this to have a dampening effect on earnings,” Chief Financial Officer Friedrich Eichiner told analysts on a call on Friday to discuss BMW’s results.

    “Capital expenditure will also be higher in the last three months of the year, mainly due to the start of production and ramp-up of the new BMW 5 Series,” Eichiner said, adding that research and development spending would remain high into 2017.

    While sales of BMW, Mini and Rolls-Royce cars rose 7.1 percent in the quarter ending in September, the return on sales at BMW’s core automotive division fell to 8.5 percent from 9.1 percent a year earlier.

    By contrast, archrival Mercedes-Benz Cars’ (DAIGn.DE) third-quarter operating margin was 11.4 percent while Audi’s was 6.9 percent for the first nine months of the year.

    BMW’s shares took a hit in early trading, but had recovered by late afternoon to trade unchanged at 1530 GMT, outperforming German blue-chips .GDAXI which were 0.8 percent lower overall.

    BMW said the dip in automotive profits was mainly attributable to higher personnel expenses as staff numbers rose 3.6 percent, along with changes in the mix of vehicle models sold.

    Customers are migrating to less profitable smaller sport utility vehicles (SUVs) while BMW’s popular 5-series is at the end of its lifecycle and competing with a brand new Mercedes-Benz E-class.

    BMW said sales in the United States, a market where sales of highly profitable large sport utility vehicles has been strong, had fallen 3.6 percent in the quarter.

    “Pricing remains a challenge in North America in particular,” Eichiner told analysts.

    The more competitive sales environment has already forced German premium auto maker Audi to cut its sales forecast for the year and to warn that its operating margin would remain below its 8 to 10 percent target range this year.

    BMW said it plans to keep the return on sales at its automotive division between 8 and 10 percent, a goal it has achieved for the last 26 quarters in a row.

    At a group level, BMW said third-quarter earnings before interest and taxes (EBIT) were 2.38 billion euros ($2.6 billion), in line with a 2.37 billion consensus forecast in a Reuters poll and little changed from 2.35 billion last year.

    The group benefited from a profit boost from its financial services business and a gain from derivatives hedging.

    “Operational performance on a group level came in as expected but for automotive below expectations,” DZ Bank analyst Michael Punzet said in a note on Friday.

  • Singulato is China’s latest e-car newcomer to rev up with big fundraising

    Singulato is China’s latest e-car newcomer to rev up with big fundraising

    Little-known Chinese electric car start-up Singulato Motors is expected to say this week it raised around $600 million in a second fundraising – the latest such move illustrating China’s headlong ‘gold rush’ into all-electric battery cars.

    The apparent ease with which Chinese electric car start-ups can raise new funds is largely down to government subsidies and favorable policies. Subsidies can total around 110,000 yuan ($16,285) a car, or around a third of the sticker price of a model such as the BYD e6.

    While China today is reminiscent of Detroit in the early 20th century, with a host of new car makers arriving on the scene, Beijing is expected to phase out subsidies from 2020 – potentially crushing the start-ups’ survival rate.

    China has made a priority of making smart, connected electric cars. Entry barriers are relatively low, and Beijing sees the sector as a way for its auto industry to challenge, and even overtake, established global automakers, several of which have instead focused more on cleaner hydrogen fuel cell propulsion technology.

    Shen Haiyin, Beijing-based Singulato’s 42-year-old co-founder and CEO, says his company has raised about $700 million in total, much of it from an investment fund run by the municipal government of Tongling City in Anhui province as part of a “strategic partnership”.

    Tongling city mayor Ni Duping said the decision to invest in Singulato is part of a strategy to promote the new energy automotive industry. “We believe this effort will definitely allow Tongling to accelerate the city’s industry transformation,” he said in a statement.

    The company plans to invest in technology and build what Shen says will be a state-of-the-art electric vehicle (EV) production plant in Tongling capable of making 200,000 cars a year, by around 2020.

    The two-year-old start-up, with 140 employees, plans to roll out its first product, a crossover sport utility vehicle, by late next year or early 2018. Production will be outsourced, at least initially, to an existing automaker with excess manufacturing capacity, Shen said.

    “We’re targeting our EVs at young city dwellers in Beijing, Shanghai, Shenzhen and other large cities where buying a gasoline car is becoming more difficult because of purchase restrictions imposed by the government,” Shen told Reuters in his modest office.

    “If they buy an EV, they could buy a car immediately as EVs are exempt from purchase restrictions. Tech-savvy young people are naturally going to gravitate toward EVs.”

    Battling road congestion and air pollution, more Chinese cities are restricting new vehicle purchases – holding auctions and lotteries to sell a limited number of license plates. In Beijing, drivers of gasoline cars are barred from driving on one weekday per week. All-electric battery cars and heavily electrified plug-in hybrids are usually exempt.

    EASY MONEY

    Singulato’s fundraising follows an around $1 billion financing deal for another Chinese EV start-up WM Motor, again largely involving a municipal government.

    Other well-funded Chinese electric car start-ups include Future Mobility, LeEco’s LeSee, Next EV, Ch-Auto’s Qiantu Motor, and Changjiang Auto, as well as U.S.-based Chinese-funded start-ups Atieva and Faraday Future.

    LeSee, which aims to launch an all-electric luxury car, for example, raised more than $1 billion in a latest financing, mostly from Chinese investors including state-owned enterprises and a local municipality.

    Some 289,000 ‘new energy’ vehicles, including all-electric battery and plug-in electric vehicles, were sold in China in January-September. Full-year sales are likely to fall well short of a 700,000 target, according to a top official at the China Association of Automobile Manufacturers.

    MOVING IN-HOUSE

    Singulato’s Shen, who made his money as a tech entrepreneur in Tokyo, plans to aim straight for the electric car mass market rather than follow Tesla Motors’ model of first making a high-profile electric battery super sports car to stir up buzz around a new brand.

    Shen declined to elaborate on his pricing strategy beyond saying his cars would compete on price with Tesla’s $35,000 Model 3.

    For its first model, Singulato has developed in-house the electric propulsion and smart, connected systems, while doors, seats, panels and other basic parts were outsourced to Beijing-based IAT Automobile Technology Co.

    For future models, Singulato plans to design, develop and manufacture more on its own, and has been scouting global automakers for talent.

    “Compared to gasoline cars, EVs don’t have complex mechanical systems like the engine and transmission. They’re much easier to engineer and manufacture,” Shen said.

    “We think an even bigger differentiator will be how connected and intelligent the car is going to be, and we’re focusing on that more than the car itself.”

  • DoCoMo to phase out i-mode handset shipments

    DoCoMo to phase out i-mode handset shipments

    Japan’s NTT DoCoMo will end shipments of most feature phones compatible with its home-grown i-mode mobile internet standard by the end of the year.

    With the exception of some models such as devices for elderly users, production of phones with access to the i-mode service will cease this year.

    Of the six i-mode models currently available for general consumers DoCoMo plans to end shipments of five and stop selling the models as soon as existing stock runs dry.

    But DoCoMo plans to continue operating its i-mode email service for existing users.

    Production of i-mode handsets has been becoming more and more difficult due to supply chain issues – the parts and raw materials are becoming harder to find as the industry has almost entirely turned its focus to smartphones, the report notes.

    DoCoMo introduced the i-mode service in 1999, and the standard was partly responsible for the strong growth of Japan’s mobile market.

    At its peak nearly 50 million subscribers were using phones compatible with the service. This has fallen to 17.4 million this year – but this still accounts for around 30% of the operator’s subscriber base.

    Unlike true mobile broadband, i-mode can only deliver services that have been converted to use the technology over gateways, placing it at a significant disadvantage compared to smartphones using web browsers.

  • New Zealand cellcos to blacklist Note7’s next week

    New Zealand cellcos to blacklist Note7’s next week

    New Zealand’s mobile operators have hammered a nail into the coffin of Samsung’s discontinued Galaxy Note7 smartphones, arranging to blacklist use of the device across all of their mobile networks.

    Industry body the New Zealand Telecommunications Forum (TCF) is working with Samsung to cut off access to Note7 owners from November 18.

    After this date, the devices will not be able to be used across any New Zealand mobile network, although Wi-Fi services will still be available.

    TCF CEO Geoff Thorn said the blacklisting represents an additional safety measure by the nation’s mobile operators.

    “Numerous attempts by all providers have been made to contact owners and ask them to bring the phones in for replacement or refund, this action should further aid the return of the remaining handsets,” he said.

    The blacklisting marks and attempt by operators to coerce the hold-outs to take advantage of the global recall of the device and be refunded or swap their handsets with a Galaxy S7 or S7 Edge.

    Samsung permanently ended production of Note7 smartphones last month after reports that even some devices that had been replaced in the September recallhad suffered from the same overheating battery problem that led to a handful of devices exploding. Airlines worldwide had already banned in-flight use of the devices.

  • VinaPhone launches Vietnam’s first 4G services

    VinaPhone launches Vietnam’s first 4G services

    Vietnam’s VinaPhone has become the market’s first operator to launch 4G services, commencing with a deployment providing full coverage of Phu Quoc Island.

    The VNPT mobile subsidiary has deployed 100 4G base stations to provide total coverage of the island.

    The operator plans to rapidly deploy 4G services in 2017, installing 21,000 base stations nationwide.

    Pricing will be set at the same or in some cases lower rates than 3G services. The company will use the network for services including mobile TV and cloud video conferencing.

    VinaPhone began commercial 4G trials in January, and was awarded a commercial license in the 1800-MHz band last month, along with MobiFone and Viettel.

    Viettel has separately revealed plans to launch its own 4G services in the first quarter of next year. The operator is ready to deploy services nationwide following extensive testing in the province of Vung Tau.

    According to the report, Viettel plans to differentiate by focusing on nationwide expansion, in contrast to deploying in major cities first. The company took a similar approach during it 2G rollout around a decade earlier.

  • Indonesia posts 5% growth in Q3

    Indonesia posts 5% growth in Q3

    Indonesia’s economy grew largely in line with market expectations in the third quarter, though lower government spending and a slowdown among its major trading partners proved a drag on growth.

    Data released by the statistics bureau yesterday showed Indonesia grew 5.02 per cent in the July to September quarter from the same three-month period last year.

    This was close to the median estate of 22 economists surveyed by Bloomberg News of 5.08 per cent though it was below the 5.18 per cent in the second quarter.

    The results are a dampener for South-east Asia’s largest economy – home to more than 250 million people – which has been striving to meet a 7 per cent growth target envisioned by President Joko Widodo when he took office two years ago. Lower commodity prices and weaker global demand have been a consistent roadblock to the target.

    Statistics bureau chief Suhariyanto said a contraction in exports deepened to 6 per cent in the third quarter from the 2.73 per cent slump in the previous one, due to slowing growth in the key markets of China, Singapore and South Korea.

    5.02%

    Indonesia’s growth in the July to September quarter, from the samethree-month period last year. This is below the 5.18 per cent in the second quarter.

    6%

    The contraction in exports in the third quarter, deepening from the 2.73 per cent slump in the previous quarter, owing to slowing growth in key markets China, Singapore and South Korea.

    US$10b

    The budget cut announced in August by Finance Minister Sri Mulyani, for the whole of 2016.

    China grew at a steady 6.7 per cent annually in the third quarter, midway between the government’s goal of 6.5 to 7 per cent.

    Singapore’s growth came in at just 0.6 per cent year on year. South Korea grew 0.7 per cent, marginally ahead of expectations but still a tad below the second quarter.

    Household spending rose 5 per cent in Indonesia, the data showed. But a reversal in government spending was a drag on the economy.

    In August, Finance Minister Sri Mulyani announced a US$10.2 billion (S$14.3 billion) budget cut for the year. “She took the decision to cut government spending, to make sure the aggregate deficit for the year would not exceed 3 per cent of GDP,” OCBC economist Wellian Wiranto wrote in a note. Government spending tumbled 45 trillion rupiah (S$4.75 billion) in the third quarter year on year, data showed.

    Indonesia’s economy has been hobbled by low global commodity prices, tepid foreign investment and infrastructure bottlenecks. Last year’s growth of 4.8 per cent was the weakest since 2009.

    President Joko is seeking billions of dollars to help fund an ambitious agenda to build roads, railways and seaports, Bloomberg reported.

    Reacting to the data yesterday, he said he hoped for a lift in the fourth quarter. “We hope with the trigger of (government) payment realisation and budget disbursement, it can improve slightly.”

    A total of six interest rate cuts by Bank Indonesia this year are helping spur spending as inflation remains inside the 3 per cent to 5 per cent target band.

    Analysts argue that revenue collection from the government’s flagship tax amnesty scheme could help cushion the economy from aggressive state spending cuts.

    “The cuts in spending would continue to weigh on the fourth quarter outlook, but stabilisation of oil and commodity prices should bode well for the overall economy,” UOB economist Ho Woei Chen said.

  • Indonesian unemployment rate down in 2016

    Indonesian unemployment rate down in 2016

    The Indonesia Central Bureau of Statistics (BPS) said in August, 2016, the country had 7.03 million jobless people among 125.44 million of labor force.

    “Compared with August, 2015, the number of working people rose 3.59 million and the number of jobless people declined 530,000. The number of workforce, therefore, increased 3.06 million in August, 2016,” BPS chief Suhariyanto told reporters here on Monday.

    Suhariyanto said the number of working people rose in almost all sectors during the one year period excepting in the construction sector where the number of working people dropped 230,000 people or 2.8 percent.

    “The highest increase in number was recorded in the public service sector in which there were 1.52 million more working people or an increase of 8.47 percent, followed by an increase of 1.01 million or 3.93 percent in the trading sector, and 500,000 or 9.78 percent increase in the transport, warehousing and communications sector,” he said.

    Among the 118.41 million working people, the largest number was in the agriculture sector reaching 37.77 million or 31.9 percent, followed by the trade sector reaching 26.69 million or 22.54 percent and the service sector 19.46 million or 16.43 percent, industrial sector 15.54 million or 13.12 percent, the construction sector 7.98 million workers or 6.74 percent, the transport sector 5.61 million workers or 4.74 percent, the financial sector 3.53 million or 2.98 percent and mining sector 1.83 million or 1.56 percent.

    BPS said in August, 2016, Labor Force Participation Rate (TPAK) was 66.34 percent or every 100 working age people , around 66 were actively employed. Unemployment rate in the same period was 5.61 percent.

    The highest unemployment rate by provinces was in Banten reaching 8.92 percent , followed by West Java at 8.89 percent. The lowest unemployment rate was in Bali at 1.89 percent and Bangka Belitung at 2.6 percent.

    “Tourism sector contributed to low unemployment rate in Bali and Babel,” Suhariyanto said.

    He said in August 2016 , there were 50.21 million people or 42.4 percent of the working people in formal sector having business with permanent workers of 68.2 million.