Author: Mei Ling Tan

  • UBS Cuts 700 Jobs

    UBS Cuts 700 Jobs

    Swiss bankers are the first to go in the Swiss bank’s current round of cuts. UBS has started cutting jobs as part of its current round of cost-savings measures, with around 700 employees in Switzerland affected.

    Most of the cuts will be in the corporate center although 200 jobs will go in wealth management and UBS Switzerland. These are in addition to the roughly 125 jobs UBS was going to get rid of before the Covid-19 pandemic put those plans on ice

    UBS CEO Ralph Hamers announced a $1 billion cost-savings target during first-quarter results last month. UBS’s cuts are aimed at the jobs expected to become redundant as a result of its ongoing digitalization processes. finews.com reported on the plans in April. They are expected to be wide-ranging and take out 3,000 jobs in total.

    UBS has not confirmed the figure but it is realistic in view of the savings targets and the bank’s cost structures. It also announced that restructuring costs would total $300 million in the second quarter, most of which were in the scope of the cuts originally announced last year.

    According to Bloomberg, around a dozen managing directors as well as more junior bankers in the advisory and trading business were recently let go. In wealth management, about five managing directors and several executive directors were impacted. In the investment bank, most of those cuts were those responsible for wealth management clients.

    CEO Hamers said his current efforts are aimed at implementing and executing the transformation and digitalization strategy, which is expected to take about three years.

  • Karen Chan to relinquish role as CEO of AirAsia.com

    Karen Chan to relinquish role as CEO of AirAsia.com

    Karen Chan, CEO of AirAsia.com, is stepping down from her position more than a year after she was appointed. A+M understands that chief commercial officer Amanda Woo will be taking over her position and that today is Chan’s last day. A+M has reached out to Chan (pictured) and AirAsia for a comment.

    Chan joined AirAsia in 2019 as a group chief commercial officer during which she was responsible for driving profitability and growth across markets it operates in, her LinkedIn said. During that same year, AirAsia redesigned its mobile app to include features such as new booking flow and interactive search map; flight chat rooms; exclusive content and deals; and seamless access to boarding pass via the Apple e-wallet. At the start of 2020, Chan was promoted to CEO of AirAsia.com to lead the business transformation of the airline into a travel and lifestyle platform.

    Close to a year later, the airline launched its super app and Chan told A+M previously that a super app is more than just a digital marketplace of products. It is where commerce meets the community. Having expanded its core identity as an airline into over 15 product lines, Chan explained that it is prepared to take on the incumbents of the online travel agency and lifestyle players.

    Before joining AirAsia, Chan was SVP of digital, Asia Pacific, Middle East and Africa at Clarks for close to two years. Prior to that, she led regional digital marketing efforts for Pizza Hut, Domino’s Pizza and Coca-Cola.

    AirAsia’s super app claims to offer a simpler, faster and more convenient user experience with over 15 types of products and services under three main pillars – travel, eCommerce and fintech. The list of categories included flights, hotels, SNAP, activities, insurance, Big Rewards, unlimited deals and wifi. Separately, it also entered the food delivery scene last year, expanding to various cities within Malaysia and even to Singapore.

  • H&M begins placing orders in Myanmar again after pause in wake of coup

    H&M begins placing orders in Myanmar again after pause in wake of coup

    Swedish fashion retailer H&M said on Monday it was gradually beginning to place new orders again with its suppliers in Myanmar after a temporary pause following the military coup in the country in February.

    “With our decision, we want to avoid the imminent risk of our suppliers having to close their factories which would inevitably result in unemployment for tens of thousands of garment workers,” it said in an emailed statement.

    H&M said that after due diligence, it had concluded the company had no direct links with the military in Myanmar. “We are now looking for legal guidance on how to handle any potential indirect links international companies may have.”

    The world’s second-biggest fashion retailer in March said it was shocked by the use of deadly force against protesters in Myanmar and that it had paused placing orders in the country.

    Shortly after the military seized power, it was among the 55 foreign investors in Myanmar who signed a statement committing to the country and employees there during developments of “deep concern”.

    It said on Monday it remained deeply concerned about the situation in Myanmar.

  • BTC Slide Continues as China Warns of Crackdown

    BTC Slide Continues as China Warns of Crackdown

    The People’s Bank of China repeated its warning against cryptocurrencies, saying that digital tokens could not be used as a form of payment.

    The country’s central bank posted a joint notice from banking and internet industry associations on its official WeChat account, warning the finance industry not to offer cryptocurrency services.

    Virtual currencies should not and cannot be used in the market because they’re not real currencies and that financial and payments institutions are not allowed to price products or services with virtual currency, the notice said.

    Bitcoin fell over 14 percent in 24 hours to hover around $40,000 on Wednesday. Other major cryptocurrencies also continued to fall, including ethereum, which dipped below $3,000 for the first time since May 2.

    Bitcoin’s weeklong slide was promoted by Tesla founder Elon Musk’s comments about its environmental impact. The cryptocurrency has fallen nearly 40 percent since its high of over $64,000 in February.

    Less than two years ago, regulators in Shanghai, Shenzhen and Beijing began ramping up efforts to probe or shut down exchanges, which resulted in the closure of several Chinese exchange operators.

    The country is readying to realize part of its blockchain ambitions with the launch of its own central bank-backed digital currency and has laid the regulatory foundation for the launch.

  • Amanda Woo appointed as CEO of airasia super app

    Amanda Woo appointed as CEO of airasia super app

    AirAsia Group Bhd’s website, airasia super app, previously known as airasia.com, has appointed Amanda Woo as chief executive officer effective May 19, 2021.

    Woo will replace Karen Chan who will be assuming a board position with the super app business.

    With over 15 years of experience in e-commerce, lifestyle brand and retail marketing with prominent global brands, Woo’s leadership has been instrumental to the expansion of AirAsia’s business in key Asean markets.

    Her notable achievements include AirAsia’s entry into new markets in Indochina and turnaround of the Indonesian market.

    She was promoted in early 2019 to chief commercial officer whereby she was part of the founding team of the airasia super app.

    As chief executive officer. Woo will continue to accelerate the growth of airasia super app, the company said in a statement.

    Woo looks forward in working closely with the management team and dedicated Allstars across the region to achieve the goals that have been set out for airasia super app.

    “The combination of an incredibly talented pool of Allstars, strong leadership team and a global footprint forms an unparalleled opportunity for a consumer-centric super app that will be an important part of the airasia group ecosystem, and a key revenue stream,” she said.

  • E-mart set to quit Vietnam

    E-mart set to quit Vietnam

    South Korean supermarket chain E-mart is to exit its Vietnam business, with reports suggesting it will be sold to local car manufacturer Truong Hai Auto Corporation (Thaco Group).

    According to The Korea Times, E-mart announced earlier this week that it will sell E-mart Vietnam to Thaco Group. However, a spokesperson of Thaco said the group has not signed any agreements with the South Korean firm.

    E-mart has spent five years trying to establish a footprint in Southeast Asia, but in Vietnam had managed to open only one store, a second suspended due to local licensing setbacks.

    A South Korean media report said E-mart would take royalty fees from Thaco Group and its supermarket will be run as a franchise.

    “Our strategic alliance with Thaco will not only pay us royalties for using the E-mart brand in Vietnam, but also give us the opportunity to export our private-brand products,” an E-mart employee told The Korea Times.

    Predictions that the South Korean supermarket chain would exit Vietnam arose last year. However, its representative then denied the news and said it was looking into other options such as a strategic alliance or business partnership.

    Thaco Group’s commercial-services arm includes managing and operating mix-used business models including shopping malls, hotels and developing business lines such as supermarkets, food courts and cinemas.

    The group is currently operating businesses at Yangon Myanmar Center Complex in Myanmar and building its Socar Sala mixed-used complex in Ho Chi Minh City’s District 2.

  • JD.com first-quarter revenue exceeds expectation

    JD.com first-quarter revenue exceeds expectation

    China’s JD.com’s first-quarter revenue beat Wall Street estimates as growth remained robust in the domestic e-commerce sector following the Covid-19 pandemic.

    The Beijing-based company has joined rivals Pinduoduo and Alibaba Group in racking up double-digit sales growth during the pandemic, as people flocked to e-commerce websites to shop for everything from groceries to luxury goods.

    Net revenue at JD.com, China’s largest e-commerce company by revenue, rose 39 percent to US$31.57 billion in the quarter ended March 31, topping analysts average estimate of $29.8 billion, according to IBES data from Refinitiv.

    Sales in its product segment, which includes online retail sales, rose nearly 35 percent to $27.2 billion in the quarter.

    Popular brands like Starbucks and sports-retailer Decathlon, along with luxury fashion brands such as Marni and John Lobb, launched flagship stores in the quarter on JD.com’s e-commerce platform, which, along with those of rivals, has seen strong demand during and after the pandemic.

    JD.com’s earnings beat comes on the heels of a major regulatory crackdown on Alibaba Group.

    In April, Chinese anti-monopoly authorities fined the e-commerce giant a record $2.75 billion for engaging in a practice known as “choose one from two,” wherein platforms penalize merchants for listing products on multiple sites.

    Despite how that penalty targeted a rival, the uncertain regulatory environment has dampened investor sentiment across China’s internet sector.

    US-listed shares of JD have dropped about 13 percent since news of the fine on Alibaba was announced.

    Concurrent with the fine on Alibaba, JD withdrew its initial public offering application for its fintech subsidiary JD Digits from the Shanghai Stock exchange.

    However, the company’s logistics division is set to raise up to $3.4 billion in an upcoming Hong Kong IPO.

  • Vietnam sees 480 pct surge in cars imported from China

    Vietnam sees 480 pct surge in cars imported from China

    Vietnam imported 6,633 completely built-up (CBU) cars from China in the first four months, a 480 percent surge over the same period last year.

    Industry insiders explain the increasing popularity of cars imported from China to good designs and modern features.

    Despite the major increase, however, China remained the third-largest CBU car supplier for Vietnam in the first four months behind Thailand and Indonesia.

    Thailand dominated auto imports with 25,732 vehicles, a 74 percent year-on-year increase, according to the General Department of Vietnam Customs. It was followed by Indonesia with 13,873 units, up 4.7 percent.

    The two countries together accounted for 79 percent of April’s CBU imports.

    Thailand and Indonesia have led the list of Vietnam’s car suppliers ever since the ASEAN Trade in Goods Agreement (ATIGA) took effect in 2018, owing to the zero import tariffs.

    Vietnam’s total car imports in the first four months marked a 56.5 percent year-on-year growth at 50,161 vehicles.

    The nation’s auto sales in the first four months surged 58 percent year-on-year to 101,309 units, signaling a recovery from last year’s pandemic blows.

  • Vincom Retail sets conservative business targets

    Vincom Retail sets conservative business targets

    Vincom Retail targets a post-tax profit of VND2.5 trillion this year, up 5 percent from 2020 but lower than in 2019.

    The mall developer and subsidiary of conglomerate Vingroup eyes revenues of VND9 trillion, up 8 percent from last year but marginally below the 2019 figure.

    It has set these conservative targets after a challenging 2020 caused revenues from leasing fall by 14 percent as social distancing kept people away from malls.

    This year, it plans to focus on developing mega malls at Vinhomes’ urban complexes. Its Vincom Mega Mall Smart City in Hanoi is set to open in the third quarter.

    It also plans to open two Vincom Plaza malls in the southern localities of My Tho and Bac Lieu.

    Vincom Retail currently operates 80 malls.

  • Shopee parent Sea to scale up digital financial services as revenues double

    Shopee parent Sea to scale up digital financial services as revenues double

    Singaporean technology group Sea – parent of e-commerce marketplace Shopee – more than doubled its revenues in 2021 thanks to growth in e-commerce and entertainment.

    Chairman Forrest Li said today the firm would now scale up its fintech offerings in Southeast Asia.

    “Digital financial services in our region are at early stages and we expect use cases to grow,” the executive told an investor call.

    Sea, which claimed US$3.4 billion in payments for its mobile wallet for the first quarter of 2021, won a digital banking license in Singapore in December and purchased last year Indonesian lender Bank BKE ( Bank Kesejahteraan Ekonomi) to turn into a digital bank.

    The New York-listed firm announced on Tuesday it had booked revenue of $1.8 billion for the first quarter of 2021, up 147 percent year on year.

    Its net loss widened from $281 million to $422 million as the company more than doubled sales and marketing expenses.

    Sea’s e-commerce arm Shopee brought in $922 million in revenue, up 250 percent year on year, while its gaming arm Garena raked in $781 million in revenue, up 111 percent.

    Li told reporters that Shopee was seeing growth in Brazil due to a nascent regional expansion. Reuters reported earlier in 2021 that the firm was launching in Mexico and was eying a possible wider expansion in Latin America.

    Analysts said they believe the jump in marketing costs was also due to Shopee’s launch of a food delivery arm segment in Indonesia this year, where it now competes with ride-hailers Grab and Gojek.

    The group has seen meteoric growth on the stock markets during the coronavirus pandemic as shoppers turned to the internet, with its market cap now at $113 billion.

    But it is expected to face increased competition in Southeast Asia.

    Indonesian ride-hailing and payments firm Gojek and e-commerce leader Tokopedia announced on Monday they are merging to create a multi-billion dollar tech company called GoTo in the country’s largest-ever deal.

  • Yet another streaming service beats Spotify to the Apple Watch offline listening punch

    Yet another streaming service beats Spotify to the Apple Watch offline listening punch

    Apple, Amazon, and even Google’s music streaming platforms have been in the limelight of late for a couple of different reasons, and now it’s Deezer’s turn to make headlines as it (ineffectively) tries to keep up with the world heavyweight champion of the thriving industry.

    Unfortunately for audiophiles, the French service, which is mainly popular on the old continent and less so stateside, is not ready for an Apple and Amazon Music-rivaling discount of its existing HiFi tier… just yet.

    While you still need to pay $19.95 a month (in the US) to access a library of around 36 million tracks in FLAC quality, the latest killer feature added to Deezer’s Spotify-challenging arsenal is available completely free of charge… for “premium” subscribers.

    We’re talking about offline listening functionality delivered straight to your wrist by the Apple Watch Series 6, and in case that doesn’t sound like such a big deal, you may want to know the world’s most popular smartwatch is actually not in the same boat as far as Spotify integration is concerned.

    Of course, Deezer is not breaking entirely new ground here either, following in the footsteps of Apple Music (duh) and Pandora while beating the likes of YouTube Music and Tidal in addition to Spotify to the offline punch (the latter of which doesn’t even have an official Apple Watch app to begin with).

    As long as you own the newest high-end edition of the immensely successful Apple Watch and are already paying Deezer for a Premium, Student, Family, or HiFi subscription, it should be extremely easy to start using the feature.

    All you have to do is choose the playlist you want to download to your intelligent timepiece, and depending on its amount of free storage space, you can then listen to your favorite tunes on the fly without keeping your iPhone nearby or staying connected to the internet.

    The Apple Watch Deezer app was obviously already capable of controlling your iPhone’s music streaming action, and on top of everything else, each member of a paid Family account can now download playlists and favorites from their own individual profiles.

    In case you’re wondering, Deezer also allows offline listening on select Tizen-powered Samsung Galaxy Watches while lacking the functionality on Google’s Wear OS platform, which could well change in the very near future.

  • Alibaba invests in VinMart operator The CrownX

    Alibaba invests in VinMart operator The CrownX

    A consortium led by Chinese e-commerce giant Alibaba will invest $400 million in the subsidiary of conglomerate Masan Group that operates retail chain VinMart.

    The consortium, including Baring Private Equity Asia, one of the largest private equity firms in Asia, has signed an agreement to acquire a 5.5 percent stake in The CrownX, a deal that values the company at $6.9 billion.

    Masan will own an 80.2 percent stake in the company after the deal.

    With Alibaba on board, The CrownX will partner with its Southeast Asian e-commerce company Lazada to accelerate the offline to online market in Vietnam.

    VinCommerce, the subsidiary of The CrownX that operates the VinMart supermarket and VinMart+ convenience store chains, will be the preferred grocery retailer on Lazada in Vietnam, and its outlets will be used as pick-up points for online orders.

    “The transaction marks a shared vision … that The CrownX has the potential to establish Vietnam’s first tech-enabled consumer ecosystem and expand its reach to serve consumers nationwide,” Masan said in a statement.

    It is also in discussions with other investors for a further strategic investment of $300 – 400 million in The CrownX, and they are expected to close this year.

  • Citizens, businesses hurt as rising prices raise inflation concerns

    Citizens, businesses hurt as rising prices raise inflation concerns

    Experts say the government will find it difficult to rein in inflation this year as surging food and materials prices hurt citizens and businesses.

    Loan and her husband in HCMC’s District 5 spent around VND120,000- 200,000 ($5.22-8.70) per day last month on feeding their family of three, almost double that of the same time last year. They say the prices of vegetables and meat have been increasing since the beginning of the year.

    Hoa, another HCMC resident, has seen her spending on family meals increased by 65 percent to VND5 million per month. She says the prices of cooking gas and many ingredients she needs have been rising.

    “The prices of some products have doubled since the beginning of the year. I’m spending out of my savings.”

    Ngoc Chau, head accountant for a construction company in Tan Binh District, has seen prices of a bowl of noodle soup rising nearly 20 percent to VND65,000 the past few months.

    “I have been reluctant to eat out these days.”

    In the first four months of this year, the prices of materials and ingredients have risen by 4.64 percent year-on-year, with the surge strongest in the agriculture, forestry and fisheries sector, up 6.77 percent, according to the General Statistics Office.

    The GSO has cautioned that although inflation was 0.29 percent in the first quarter, the lowest in 20 years, keeping it under the targeted 4 percent this year won’t be easy as many economies including the U.S. have introduced economic stimuli to boost recovery.

    The Ministry of Agriculture and Rural Development said that animal feed prices have surged 30 percent since the beginning of the year and is set to rise further in the second quarter.

    Fuel prices, meanwhile, have increased by 19 percent since the beginning of the year.

    Do Van Khuoi, director of supplies at Saigon Food, said that prices have been rising due to the limited supply of goods domestically and shortage of materials globally.

    There are signs that some suppliers are increasing their reserves to indulge in speculative pricing, he added.

    “Disrupted supply chains due to difficulties in transporting goods amid the pandemic have also pushed up prices.”

    Khuoi said that in recent months, the prices of spices have risen by 5-10 percent, rice and seafood by 5-20 percent and material for plastic production by 15-70 percent.

    A spokesperson for food processor Vissan also said that many food companies were facing “headaches” because of rising material prices. Some suppliers have requested a 15 percent increase starting this month.

    Most businesses say they are trying to look for alternative sources of materials and ingredients to lower prices.

    Authorities have also been working to stabilize prices.

    Pham The Anh, head economist of the Vietnam Institute for Economic and Policy Research (VEPR), said that Vietnam and many other economies face high risks of rising inflation this year as prices of some products like steel and fuel have been surging at around 20-30 percent.

    Economist Nguyen Duc Thanh said that authorities are facing difficulties in controlling inflation, as keeping prices low will hurt businesses that are already hit by the Covid-19 pandemic, while allowing prices to rise will hurt low-income people.

    The domestic department market under the Ministry of Industry and Trade said it has been working with businesses to ensure adequate supply to keep prices from surging suddenly.

    It has also been working with customs and agriculture authorities to ensure the stable delivery of goods, especially between localities with a high number of Covid-19 cases.

    Deputy Prime Minister Le Minh Khai has also ordered relevant government bodies to take keep fuel prices stable.

  • Vietnamese automaker acquires South Korean retail chain

    Vietnamese automaker acquires South Korean retail chain

    A THACO spokesperson said that the agreement will be signed this week. South Korean retail giant E-mart, owned by the Shinsegae Group, will stop operating its outlets in the country. Under the buyout deal, THACO will operate the chain as a franchisee and pay a royalty to E-mart.

    The South Korean established the E-mart Vietnam Co. in 2014 after three years of doing market research in the country.

    It opened its first megamarket in HCMC’s Go Vap District at the end of 2015, covering an area of 12,000 square meters. The megamarket consists of a shopping area, restaurants and a kids’ playground.

    It hiked its charter capital by 62.5 percent to VND2.7 trillion ($117.8 million) in 2018.

    The E-mart Vietnam management board said 95 percent of products it sold were domestically produced.

    Rumors had surfaced at the end of last year that E-mart will exit the Vietnam retail market, but the company denied them.

    South Korean newspaper The Korea Times cited the retail giant as saying it was selling its Vietnam operations due to difficulties in expanding the business. It had planned to open a second megamarket in HCMC’s Tan Phu District in mid-2018, but the plan was not realized.

    THACO has announced plans to open 10 supermarkets in Vietnam by 2025.

  • Google introduces an AI tool that diagnoses skin conditions

    Google introduces an AI tool that diagnoses skin conditions

    At Google I/O the company introduced a web-based feature for smartphones that helps diagnose skin conditions. The feature uses AI (artificial intelligence) to detect dermatological conditions. The company also announced plans for its AI to be used by doctors for diagnosing breast cancer and tuberculosis as well.

    Previously, Google shared a preview of the AI-powered dermatology assist tool, and now the official version is ready. The tool will be native for Google Search and use your phone’s camera to take three different pictures from various angles of the part of your body that you’re concerned with. The tool will not only work with skin, but also with nail and hair dermatological conditions.

    After you take the pictures of the body area in question, you’ll be asked a couple of questions from the tool itself. These questions will regard your skin type, how long you’ve had the issue and if you’ve had any other symptoms. This will help the AI tool with your diagnosis.

    The tool will show information for each matching condition and photographic examples, as well as official information from a dermatologist. It has 280 dermatology conditions in its database. It also uses many of the same techniques used to detect diabetic eye disease and lung cancer in CT scans.

    Google says that the diagnosis from the tool is only a suggestion and its point is to give you more information. You should still seek medical help if you have a problem.

    According to the company, each year they see around ten billion Google searches about skin, hair and nail conditions. Two billion people suffer from such issues worldwide. The new dermatology AI tool will be available in the EU at first later this year. It has passed clinical validation and is marked as a Class I medical device in the EU, but not yet in the USA.