Retail News CRM

Author: Mei Ling Tan

  • Ericsson wins 4G network deal from XL Axiata

    Ericsson wins 4G network deal from XL Axiata

    Swedish telecom gear maker Ericsson said that it has signed a three-year contract with Indonesian telco XL Axiata for design and implementation of 4G/LTE network and upgrade of existing 2G and 3G networks in Jakarta and Central Java.

    The agreement includes all hardware, software and services to deliver 4G/LTE services for XL Axiata’s subscribers.

    “We are keen to work with Ericsson to bring this next generation technology to Indonesia. We are looking forward to the implementation of the 4G/LTE network and the improved mobile broadband experience this will deliver for our subscribers,” Dian Siswarini, President Director and CEO of XL Axiata, said in a statement.

    This 4G/LTE network deployment will improve network capacity and enhance speeds to allow Indonesian users to enjoy improved smartphone and network performance, as well as faster web browsing and downloads.

    “Ericsson’s LTE solution will enable XL Axiata to deliver unique experiences for people, society and businesses, thus shaping and accelerating the Networked Society in Indonesia,” Thomas Jul, Head of Ericsson Indonesia and Timor Leste, said.

    Ericsson is today present in all high traffic LTE markets including the US, Japan, and South Korea, and is ranked first for handling the most global LTE traffic – 40 percent of the world’s mobile traffic is carried over Ericsson networks.

    Ericsson is number one in LTE market share within the world’s top 100 cities. More than 220 LTE RAN and evolved Packet Core networks have been delivered worldwide, of which 170 are live commercially.

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  • StarHub acquires 9% stake in MM2 Asia for SGD 18 mln

    StarHub acquires 9% stake in MM2 Asia for SGD 18 mln

    Singapore operator StarHub has acquired a 9.05 percent stake in film and TV content producer MM2 Asia for SGD 18.04 million. StarHub will collaborate with MM2 to expand and differentiate its pay TV offerings through original content creation. In addition, StarHub can leverage MM2’s regional presence to market and distribute its own localised content beyond Singapore.

    StarHub has agreed to subscribe for an aggregate of 44,000,000 new ordinary shares in the capital of MM2, by way of a private placement. The aggregate consideration for the placement shares is SGD 18.04 million. The price per placement share is SGD 0.41.

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  • London sandwich chain Pret A Manger opens shop at Dubai airport

    London sandwich chain Pret A Manger opens shop at Dubai airport

    Pret A Manger, the sandwich shop beloved by London office workers for its freshly made rolls and organic coffee, has opened its first UAE store.

    The chain whose magenta star sign, chrome furniture and daily donations to the homeless have become a staple of many a central London street, announced yesterday it has opened its first store in the Emirates at Dubai International Airport through a franchise deal with Emirates Leisure Retail.

    The new store, located in the new Concourse D, will include the concept’s trademark large kitchen and will be open 24 hours a day.

    Emirates Leisure Retail, a unit of Emirates Group, which also operates the UAE shops of Costa Coffee, Giraffe and The Noodle House, is understood to be looking at opening further Pret A Manger stores across the UAE.

    “We’ve had a lot of fun developing our new menu,” said Caroline Cromar, Pret’s group director of food. “We will be bringing plenty of existing Pret favourites over, with some special new products and fantastic locally sourced ingredients, such as falafel and hummus.”

    The opening brings Pret’s sandwich empire to about 400 shops worldwide, including the US, France, Hong Kong and China, although about three- quarters of the shops are still located in the UK capital.

    According to Pret’s new UAE website, the brand’s Dubai team has been training in Pret shops around the world.

    The arrival of the sandwich chain comes as the similarly named Pret to Go is attempting to take a healthy sized bite out of the domestic sandwich market.

    This month, Pret To Go, a sandwich chain founded in late 2014 by the entrepreneur Kunal Lahori, opened its eighth store in the Dubai airport free zone, Dafza. The chain also operates in Emaar Square, DIFC, Media City, Jebel Ali and Abu Dhabi International Airport. Pret A Manger declined to comment on its rival.

    The expansion of both chains in the UAE comes at a time when industry experts are predicting that up to a fifth of the country’s food and beverage operators could close by the end of next year, as more and more firms attempt to break into an already overcrowded market.

     

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  • Hong Kong-born entrepreneur sets up shop in Saskatoon

    Hong Kong-born entrepreneur sets up shop in Saskatoon

    Most restaurant owners work impossible hours, and Patrick Chu is no different. But after three decades of 100-hour weeks in his native Hong Kong, running his traditional Chinese food restaurant in Saskatoon feels like a vacation.

    “I spent too much time on working. I was just very tired,” said Chu, who worked in supply management for a global construction company before emigrating to Canada last summer.

    Chu said he brought his three children to Canada because he wanted them to have the best education possible. After arriving in July, he decided to change careers entirely and start his own business, a traditional Chinese food restaurant.

    “For me, I just think opening a restaurant is a small business — it’s easier to manage. (And) I just want to bring some traditional Chinese flavour in here,” he said with a laugh, noting that while some of his family members ran restaurants in Hong Kong, he was “totally unfamiliar” with the industry.

    A lack of experience didn’t deter him from working to get his restaurant up and running. He renovated the First Avenue North space himself, doing everything from painting to replacing and repairing kitchen equipment. Then he started developing a menu that combined familiar dishes with traditional flavours.

    Taiji Eastern Cuisine, which opened its doors late last year, serves meals that will be familiar to most western customers. Ginger beef, sweet and sour pork and Singapore fried noodles are all staples. But according to Chu, Taiji’s are cooked differently, and are spicier and more flavourful than most western-style Chinese food.

    Chu said that since he opened the restaurant, he has faced numerous difficulties, including those shared by many newcomers to Canada. While the first couple of months were “very frustrating,” he’s managed to iron out most of the problems, and today business is growing and he enjoys every minute of it, he said.

    “Every time when the customer comes here they say the environment is very good, very clean, very bright and the food is very good — and they will come again,” he said. “I feel very happy, very happy.”

    Ganyo and Grant didn’t choose an easy industry. The wedding business is extremely competitive and subject to changing tastes, but Ganyo believes the business she and her daughter built will continue to grow and succeed.

    “I think with any business, you always have to be on top of these things and watch where it’s going,” she said. “But I still believe it’s going to be very hard to knock off that dream that little girls have. They dream of that day, and I just can’t see that all of a sudden diminishing.”

  • Watchmaker Tudor Says Hong Kong Market Could Get Even Worse

    Watchmaker Tudor Says Hong Kong Market Could Get Even Worse

    Tudor, Rolex’s sister brand, said the Hong Kong market may get worse as rich Chinese shop for luxury goods in markets with lower prices.

    Swiss watch exports to Hong Kong slid 25 percent in February, dropping for the 13th consecutive month, the Federation of the Swiss Watch Industry said Tuesday. There’s no swift turnaround in sight, according to Philippe Peverelli, chief executive officer of Tudor.

    “In mainland China we’ve already touched the bottom of the pool,” Peverelli said in an interview at the Baselworld watch fair. Demand has been improving there since the second half of 2015. “As for Hong Kong, I’ve never seen such a deep pool. We haven’t reached the bottom there yet.”

    The island city became the biggest export market for Switzerland’s timepieces almost a decade ago, luring well-off Chinese with lower luxury taxes on the mainland. In the past three years, however, the Chinese government’s crackdown on bribery and extravagance among government officials has weighed on the industry’s sales in the region, and currencies have made watches cheaper in other markets such as Japan.

    Last year Tudor got just under 60 percent of its sales from greater China, down from more than 90 percent in 2010. The company re-entered the U.S. and the U.K. in recent years and started selling its timepieces in duty-free retail shops in South Korea. The next country it plans to enter is Japan, which enjoyed a 22 percent gain in shipments last month.

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  • Korea to legalise customised cosmetics formulation

    Korea to legalise customised cosmetics formulation

    Increasingly, retailers have begun to offer the on-the-spot bespoke mixing of cosmetics from base ingredients (including colours and scents) as a service for consumers eager for personalised beauty.

    In the past few years, Korea has established itself as a global market leader when it comes to cosmetics, particularly within the field of innovation. Until now, however, retailers in Korea have been unable to embrace the growing trend of personalised product formulation, due to the ban imposed as a result of safety concerns.

    The relaxation of the ban will allow Korean beauty players to start pushing the trend within the country, a move that, we reported, “is projected to further diversify and expand the country’s vibrant cosmetics industry.”

    The young demand personalisation

    Younger consumers increasingly expect a level of bespoke personalisation and interactivity in their beauty products and services, with on-the-spot formulation one of the key elements of this.

    In a recent new report, ‘The Impact of Millennials’ Consumer Behaviour on Global Markets ’, market research firm Euromonitor International states that a personalised, immersive shopping experience is key for the demographic, which is swayed by innovations like try-on technology, skin analysis and mirror apps.

    “Personalisation and interactivity is important in beauty care for millennials, with a rash of digital solutions emerging to appeal to their need for individual solutions,” the report explained.

    The legal selection

    Korea is currently trialing the bespoke production of cosmetics at select stores, including duty free, across several specific product categories. These are reportedly: four types of fragrance, 10 types of skin care products, and eight types of colour cosmetics, including lipsticks.

    Following the trial, the government will assess the safety of the service, with a view to potentially implementing general legalisation across the country.

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  • Victoria Beckham Opens Second Fashion Store

    Victoria Beckham Opens Second Fashion Store

    Singer-turned-fashion designer Victoria Beckham unveiled her second fashion store in Hong Kong on Friday (16 Mar 2016).

    The former Spice Girl launched the flagship store for her eponymous label in London in 2014, and she has now expanded her brand by opening a second retail space, which has been designed by the same architect Farshid Moussavi, in the region’s upmarket Central district.

    Victoria flew into Hong Kong last week to put the finishing touches to her store, and she tells the South China Morning Post she has been involved in all aspects of the project.

    “The process wasn’t easy… opening a store is a huge project. Together with my team, I’ve worked really hard to get to this point,” she said. “It’s important to me that I’m part of the decision making in all areas, whether that’s deciding what the changing rooms look like, to what fragrance we use in store, to what the receipts look like. I enjoy all of that, and I’m a perfectionist. I believe it’s all in the details.”

    Victoria decided to open up in Asia because she believes women there appreciate luxury, quality and well-made clothes. She adds, “I’m always struck by how aware Chinese women are when it comes to fashion… Their knowledge of trends and brands is so deep, that being here you feel like you’re really part of a fashion conversation.”

    victoria-beckham-store-6

    Victoria, who wore over-sized sunglasses and a black turtleneck dress, was surrounded by security as she opened the store in front of the large crowd. To celebrate the moment, she posted a picture of herself posing in the store and tweeted, “#VBHongKong is open for business!! I love u fashion bunnies.”

    She also posed with fans and they all made the peace sign with their hands, a nod to her Spice Girls days. In the caption, she wrote, “Loved meeting you all at my store today! #VBHongKong.”

    Victoria, a UNAIDS Goodwill Ambassador, will also attend an amfAR AIDS fundraising gala alongside Uma Thurman on Saturday (19 Mar 16).

  • Thai developers raise Bangkok’s Icon Siam investment to $1.6 bln

    Thai developers raise Bangkok’s Icon Siam investment to $1.6 bln

    Thailand’s Charoen Pokphand Group (CP) and two property firms have raised their investment
    in Bangkok’s Icon Siam development to 54 billion baht ($1.6 billion) to expand its shopping malls, an executive said on last Tuesday during an official press.

    Despite Thailand’s slowing economy and weak consumption, there had been strong demand for luxury condominiums and retail shops, Chadatip Chutrakul, the riverside project’s director,said.

    “We will increase investment by 4 billion baht to expand space,” Chadatip told reporters, adding that the company was targeting demand from domestic travellers and foreign tourists.

    CP, controlled by billionaire Dhanin Chearavanont, formed a joint venture with Siam Piwat Co, operator of luxury shopping mall Siam Paragon, and Magnolia Quality Development Corp to develop the luxury mixed-use project.

    Half of the budget will come from loans and the group has received financial support from Thai banks such as Kasikornbank, Thanachart Bank and Bank of Ayudhya, she said.

    The project, located on the bank of the Chao Phraya River in Bangkok, is expected to open in 2017. It will have two high-end retail complexes, two luxury waterfront condominium blocks and a museum and entertainment centre. Japan’s Takashiyama will open its first store in Thailand in the new centre, she said.

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  • Overseas E-Retailers Represent 25% of China’s 500 Top Web Merchants

    Overseas E-Retailers Represent 25% of China’s 500 Top Web Merchants

    The 500 largest e-retailers in China ranked by annual web sales grew their combined online sales by 59.6% in 2015 to $198.30 billion from $124.22 billion a year prior, according to Internet Retailer’s newly published 2016 China 500. Now in its third edition, the e-commerce research ranks the 500 leading e-retailers in China based on their annual web sales. Of them, 398 are based in China while 102 hail from overseas; this latter group, which includes 52 U.S.-based web merchants, grew web sales by 124.0% to $21.31 billion in 2015. By comparison, U.S. online retail sales grew roughly 15% per year from 2011 to 2014, according to the U.S. Commerce Department.

    The fastest-growing U.S.-based e-retailer in China, according to the data in the 2016 China 500, is no. 11-ranked Apple Inc., which increased its web sales in the country by nearly 150% in 2015 to $2.2 billion, up from $897.6 million a year earlier. Computers/electronics as a merchandise category among the 2016 China 500 e-retailers grew by 49.8% in web sales in China last year.

    More analysis of the fastest-growing e-retailers by merchant type and merchandising category can be found in the 2016 China 500. The database version provides 139 metrics for each retailer, including web sales, web traffic, conversion rates and other key metrics. A 45-page downloadable PDF executive report provides rankings, summary market data and in-depth analysis of competitive trends in China’s e-commerce market.

     

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  • Retailer Uses RFID, Social Media and Cameras to Track Shopper Behavior

    Retailer Uses RFID, Social Media and Cameras to Track Shopper Behavior

    ISA Fashion Boutique International Ltd., a seller of international luxury brands in Hong Kong, mainland China and Macau, has deployed an RFID-based inventory-management system provided by Hong Kong IT services company PCCW Solutions. The system enables the retailer to track the locations of products, engage with customers, learn their preferences and reduce labor costs based on inventory counts. The solution, known as Infinitum Retail, includes IP cameras as well as ultrahigh-frequency (UHF) RFID readers. As a result of the improved inventory management, the retailer says that it plans to deploy the system this year at all 11 of its stores. Alpha Solution Ltd. installed the technology.

    Traditionally, RFID has had limitations since it can track a tagged product, but not necessarily link that item with a particular customer, explains Jacky Ting, PCCW Solutions’ digital practice leader. By itself, RFID cannot enable a store to forward product information and promotions to shoppers. However, by linking RFID data to closed-circuit television (CCTV) camera images and social-media sites such as Facebook, a retailer can identify where shopper traffic is heaviest (using a camera-based heat map), understand how an individual responds to a product (by tracking the expressions on his or her face) and monitor comments that its customers make on social media (with their permission), using the store’s Wi-Fi network.

    The reader built into an ISA store’s EAS gate can capture the ID number of a customer’s RFID-enabled loyalty card, prompting the Infinitum Retail software to send promotional offers to that individual’s phone, based on his or her previous purchasing behavior.

    Infinitum Retail aims to overcome a variety of problems that stores face, says Wing Lee, PCCW Solutions’ senior VP, such as understanding which products interest customers, and then approaching them with relevant offers. ISA Boutique uses camera images only for tracking shoppers’ locations within its stores, Lee notes, while it could opt to use facial analytics in the future to identify each customer’s age, race, gender and response to products based on facial expressions.

    In 2012, ISA Fashion first installed an RFID system for counting inventory and tracking product locations at one of its stores with the help of Alpha Solution (see ISA Boutique Tracks Inventory, Shopper Behavior Via RFID). The system, which is still in use, employs tiny RFID labels attached to jewelry, as well as readers installed in display cabinets, to track when goods are on display and when they are removed from a cabinet. After Infinitum Retail was released in October 2015, the retailer began using the system to track all of its products, which also include clothing, leather goods, eyewear and watches, at three shops and one warehouse in Hong Kong, as well as a single shop in mainland China. The new solution includes the use of electronic article surveillance (EAS) hard tags for non-jewelry products.

    Infinitum Retail consists of RFID readers built into the EAS gate at the door, as well as a feature known as iR-Furniture—RFID interrogators built into shelves to read tags in real time. The system also includes readers installed at checkout terminals. In the warehouse, readers are used to identify when goods are received and then shipped to a store.

    At the warehouse, an EAS hard tag with a built-in EPC Gen 2 ultrahigh-frequency (UHF) RFID inlay is attached to each product other than jewelry. The inlay is read at the warehouse for inventory purposes, and the cloud-based hosted software is automatically updated to indicate, for instance, if a tagged item has been shipped, as well as to which store and when this occurred.

  • Hong Kong Ponders Plan to Boost Tourism From Mainland

    Hong Kong Ponders Plan to Boost Tourism From Mainland

    Beijing has reportedly asked Hong Kong officials to present a plan for boosting tourism from mainland China following a 3 percent decline last year amid growing anti-mainland sentiment in the territory.

    A plan for drawing tourists to Hong Kong could include cruises between the mainland and Hong Kong and an expansion of the number of cities from which people can travel to Hong Kong without joining a tour. Currently, residents of 49 mainland cities can travel to Hong Kong individually.

    Hong Kong and Beijing officials have also discussed ways to limit tour groups that force people to shop in Hong Kong.

    Joseph Tung, executive director of the Travel Industry Council of Hong Kong, said the mainland Chinese market is important to Hong Kong’s economy.

    “China is a main market, and everyone, all over the world, is trying to induce or promote tourism from China to their countries,” he said.

    The decline in mainland tourists is affecting Hong Kong’s economy, which is expected to grow 1 or 2 percent this year.

    Raymond Yeung, a senior economist with ANZ bank, said the mainland tourists who continue to visit Hong Kong are spending less.

    “The spending pattern of Chinese tourists has changed,” he said. “They no longer think Hong Kong is the place to buy luxurious products. With the opening of individual visas for Chinese tourists to go to Europe, traveling on an individual basis, this trend will continue.”

    Fear of disturbances

    Protests have also scared some mainland tour groups from visiting the city.

    In 2014, Hong Kong’s pro-democracy umbrella movement filled the city’s streets for nearly two months to protest Beijing’s decision to vet all candidates for the territory’s top job. Since then, local groups have staged demonstrations against traders from the mainland who cross the border to buy Hong Kong goods that then will be resold back home.

    In February, there was a violent riot in Mong Kok that injured dozens of people. The riot was sparked when police attempted to clear food stands during the Chinese New Year holiday. Protesters said they were demonstrating against the gradual erosion of Hong Kong local culture.

    But even if protests ease in Hong Kong, the new Chinese middle class, with its rising discretionary income, may increasingly choose to travel elsewhere.

    “A lot of the mainland tourists have been to Hong Kong many times, and they are all traveling farther, to Japan, Korea, Europe, the U.S.,” said Mariana Kou, a retail analyst at the brokerage firm CLSA. “But at the same time, even without this expansion, the local government is putting out a number of initiatives to try to support the tourism sector, by putting out a number of products and expanding their festival circuit and number of events.”

    Hong Kong authorities expect the number of tourists to drop another 2 percent this year.

  • Zizan Razak and Elizabeth Tan are the new faces of 11street!

    Zizan Razak and Elizabeth Tan are the new faces of 11street!

    Underlining its intent to localise and grow its business in Malaysia, 11street (www.11street.my), Malaysia’s most exciting e-mall, today announced Zizan Razak, prominent local actor-cum-entertainer and Elizabeth Tan, Malaysia’s YouTube sweetheart-turned-singer as its new Brand Ambassadors for 2016.

    “As we turn one in April, we felt it was necessary to have two youthful, engaging, and exciting Malaysians to better connect with our customers and community moving forward. Both Zizan and Elizabeth share these qualities and we are delighted to have them represent our brand in 2016,” said Hoseok Kim, CEO of 11street.

    They will both be officially unveiled and make their first appearance at 11street’s 1st Anniversary celebration, themed ‘11street’s Shocking Deals Come to Life’! The online marketplace invites all Malaysians to join the party – a fun-filled carnival with games, goodies and coupons to be given away.

    It will take place on April 11(Monday) from 11:00am to 7:30pm at NU Sentral Shopping Centre, Kuala Lumpur. Well-known celebrity influencers, such as Intan Ladyana and Atikah Suhaime will present to the jubilant birthday celebration. During the event, 11street will also be announcing its collaboration with Xpax, the main prepaid brand for youth under Celcom Axiata Berhad, to help people to save more in 2016.

    On the other hand, leading up to the anniversary, 11street is running various onsite promotions from 1st to 11th April 2016, where unlimited discount coupons will be given out to its loyal consumers.

    As a treat to both customers and fans, 11street is also announcing its “Fly High LIKE A STAR with 11street” contest. By just spending a minimum of RM11 on 11street mobile app and answering a simple question, participants will stand to win a breath-taking helicopter ride followed-by an intimate dinner session with Zizan and Elizabeth. For those who are interested, do participate the contest from 23rd March until 3rd April on 11street.

    11street will definitely ‘WOW’ you at it’s full of shock 1st year anniversary!

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  • China Shun Ke Long Reaches Cooperation Agreement with Hengli To Advance Into Cross-Border e-Commerce

    China Shun Ke Long Reaches Cooperation Agreement with Hengli To Advance Into Cross-Border e-Commerce

    China Shun Ke Long, a supermarket chain store operator in Guangdong province, entered into a cooperation agreement with Hengli Limited, the wholly-owned subsidiary of Foshan Shunde Shente Trading Limited. The Group will sell cross-border goods, general goods and imported goods through the e-commerce platform “Hellogou” (www.hellogou.com), and the retail outlets of Hengli, advancing into the cross-border sales market.

    Pursuant to the agreement, the Group agreed to sell cross-border goods, general goods and imported goods through “Hellogou” and the retail outlets of Hengli. In addition, the Group agreed to provide various advisory services to Hengli, including to (i) look for new vendors for Hellogou and franchisees for its retail outlet; (ii) promote “Hellogou”; (iii) monitor the vendor portfolio and product mix of “Hellogou”; and (iv) provide training to the staff of Hengli Limited. With the duration of agreement of 5 years, the Group shall pay 2% commission to Hengli for those goods sold through “Hellogou”, and Hengli shall pay advisory fee equivalent to 70% of its revenue to the Group.

    “Hellogou” obtained the approval from Guangzhou Custom Bureau to operate cross-border online sale of goods and the approval from Guangdong Telecommunication Management Bureau to run value-added services online, which made “Hellogou” different from other ordinary e-commerce platforms. Hengli also had set up counters in 10 retail outlets of the Group to promote its “Hellogou” and display samples of oversea products. Customers could access “Hellogou” to complete the transaction online by using their mobile phones to scan the “Quick Respond Code” on the price tags of the samples of overseas products, and the goods will be delivered to the customers directly either from overseas or custom controlled warehouses.

    Mr. LAO Songsheng, Chairman and Executive Director of the Group, stated, “With a strong foothold in the third and fourth-tier cities in Guangdong province of the PRC, SKL possesses in-depth knowledge in the local market. In recent years, the Group has been committed to developing online-to-offline (O2O) retail business and accumulated extensive experience. With Chinese customers’ increasing demand for high-quality imported food and goods, the Group is optimistic towards the cross-border shopping industry. As we reached the agreement with Hengli, at a relatively low commission rate, we could sell high-quality fresh food and other goods through ‘Hellogou’, bringing consumers a wide range of cross-border goods. In the future, the Group will continue to focus on the development of O2O business in response to market trends. We will also enhance the operating platform to improve efficiency and drive revenue growth for the Group.”

     

  • Realty, retail to spur trade NPL

    Realty, retail to spur trade NPL

    NPLs in the property sector are expected to surge by 22 basis points to 4 per cent, while loan demand from this sector is expected to grow by only 3.8 per cent, down by 5.2 percentage points year on year because the property supply is becoming mature.

    However, the highest NPLs still be seen in the commercial and trading sector. TMB Analytics expects bad debt in this sector to expand to 4.45 per cent from 3.9 per cent in 2015.

    Naris Sathapholdeja, senior vice president of the research house, said NPLs in the property sector could result from medium-sized property developers upcountry having trouble selling residential units.

    Meanwhile, community-mall developers have faced less shopper traffic, so occupancy rates for retail space are low as well.

    Earlier, community malls were all the rage, but the economic slowdown has hurt consumers’ purchasing power, and the developers of this type of mall are not big names like listed retailer developers.

    Overall NPLs in the banking industry this year will touch 2.63 per cent, TMB Analytics said, up by 8 basis points from 2015, while lending growth is expected to be 4.1 per cent, slower growth than last year’s 4.3 per cent.

    Business loans should expand by 3.6 per cent, mainly from the construction industry if the government sticks to its announced investment schedule.

    As for the Thai economy, TMB Analytics says private investment will be needed to drive growth in gross domestic product. The research house has forecast GDP growth of 2.8 per cent, but that would require a 3.1-per-cent expansion in private investment and 15-per-cent growth in government investment. Otherwise, GDP growth might be no more than 2.5 per cent.

    Previously, TMB Analytics revised down its projection on GDP growth this year from 3.5 per cent to 2.8 per cent because it was clear the export sector would not return to its former health, so investment was the only hope for the economy apart from tourism.

    The research house has slashed its forecast for the export sector this year from growth of 1.8 per cent to a 4.5-per-cent contraction.

    Thailand will not see double-digit growth in export value any more because countries worldwide have shifted their growth mode from a manufacturing base to a service base, Naris said.

    Low inflation has closed off the chance for the Bank of Thailand to raise the policy interest rate, but the fragile global economy and the strengthening baht might encourage the central bank to reduce the rate.

    “We think if the central bank does cut the policy rate, it should do so in the first half of this year, because the US Federal Reserve will raise its rate in the second half,” he said.

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  • Indonesia Sees Tourist Visit Increase in Early 2016

    Indonesia Sees Tourist Visit Increase in Early 2016

    Three big events namely, the Lunar New Year, cross-border promotion of Wonderful Indonesia Festival and total solar eclipse have boost the number of inbound tourists, particularly from China.

    I Gde Pitana, Deputy of Marketing Development of Foreign Tourism (Deputy BP3M) of Tourism Ministry, said that the majority of foreign tourists from China spent the Lunar New Year holiday in early February by visiting Bali as favorite destination, most of them came from Beijing and Heilongjiang Province using chartered planes.

    “People from those regions, which temperature were under 15 degrees celcius at that time, preferred to celebrate the Lunar New Year at warm places such as Bali,” he said.

    During the Lunar New Year, 23,000 tourists from 11 cities in China came to Bali using 65 units of chartered AB330 aircraft.

    Foreign tourist visits through Immigration Checkpoint of Bandar Bintan Telani (BBT) in Lagoi stood at 8,700 people, whereas 580 Chinese tourists visited Sulawesi to spent their winter holiday.

    The number of foreign visitors in January 2016 were 814,303, rose by 3.6% compared to the same period in 2015 of 785,937 foreign visitors. Besides China, Singapore and Europe are among the top countries on the list of countries of origin of foreign tourists.

    Pitana also hoped that total solar eclipse on March 9 could boost this year’s number of foreign tourist visits to Indonesia which is targeted to reach 12 million people.

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