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  • Indonesia’s Consumer Loan Growth Faces Headwinds as Banks Reinforce Risk Management Strategies

    Indonesia’s Consumer Loan Growth Faces Headwinds as Banks Reinforce Risk Management Strategies

    As Indonesia moves into the second half of 2025, the outlook for consumer loan growth appears to be weakening. A recent report from CGS International emphasizes that banks are tightening their lending practices, which could spell trouble for borrowers seeking loans. Stakeholders are taking note as rejection rates for applications rise and down payment requirements for auto loans increase.

    Banking Sector Tightens Lending Practices

    According to CGS International, raw data from their on-the-ground checks reveals a noticeable tightening in risk parameters across banks. “We have also seen consecutive increases in mortgage rates from Bank Central Asia (BBCA), the market leader in consumer loans, over the past few months since end-FY2024,” noted analysts Handy Noverdanius, Owen Tjandra, and Elizabeth Noviana. When a bank as influential as BBCA adjusts its rates, it’s usually a signal that something larger is at play in the economy.

    Non-Performing Loans on the Rise

    The issue of non-performing loans (NPLs) is becoming increasingly pressing. CGS International reports that NPLs for consumer loans have crept up since 2024, with Q1 2025 figures showing an increase to 2.08%. This marks a rise of 28 basis points compared to Q1 2024 and a 19 basis points uptick year-to-date. Disturbingly, mortgage NPLs are experiencing an even sharp uptick, reaching their highest levels since October 2020, which calls into question the stability of this segment.

    In the broader banking landscape, a similar trend is evident among major banks, albeit at a lower magnitude, with an increase of 22 basis points year-on-year and 14 basis points year-to-date as of Q1 2025. CGS International attributes this to soft macroeconomic conditions, fueling fears of a knock-on effect within the consumer loan sector.

    Future Implications for Consumer Loans

    The analysts forecast a lag of 6 to 12 months for the repercussions of rising NPLs to fully express themselves, potentially constraining growth in consumer loan segments significantly. As the landscape evolves, growth in consumer loans was recorded at 1.9% year-to-date and 8.7% year-on-year as of May 2025. However, as lending conditions tighten, these figures could soon morph from optimistic to fraught with caution, making the future of consumer spending on borrowed money in Indonesia uncertain.

    Questions & Answers

    What key changes in lending practices have been observed by CGS International?
    CGS International has noted a tightening of risk parameters among banks, leading to increased rejection rates for loan applications and higher down payment requirements for auto loans.

    How are non-performing loans affecting the consumer loan market in Indonesia?
    Non-performing loans in the consumer segment have risen to 2.08% as of Q1 2025, with mortgage NPLs experiencing significant increases, reaching levels not seen since October 2020.

    What are the projections for consumer loan growth moving forward?
    Analysts estimate that the impact of rising NPLs will cause a slowdown in consumer loan growth over the next 6 to 12 months, with current growth rates at 1.9% year-to-date and 8.7% year-on-year as of May 2025.

  • Globe Telecom Aims for 100% Renewable Energy in Over 3,000 Cell Sites by 2028

    Globe Telecom Aims for 100% Renewable Energy in Over 3,000 Cell Sites by 2028

    Globe Telecom is set to revolutionize its energy sourcing by transitioning more than 3,000 cell sites in Metro Manila and the Calabarzon region to renewable energy by 2028. This ambitious initiative aims to eliminate approximately 5.5 million kilograms of greenhouse gas (GHG) emissions annually while tapping into around 80 million kilowatt-hours of clean electricity each year. Talk about a telecom company with an environmental conscience!

    Yoly Crisanto, Globe’s Chief Sustainability and Corporate Communications Officer, emphasized the significance of this move. “By expanding our sourcing of renewable energy to thousands of additional sites, we are taking deliberate steps toward our net-zero goals and proving that clean energy is not only viable but necessary across all operational levels,” she stated.

    Pioneering the telecom sector, Globe has become the first operator in the Philippines to embrace the Energy Regulatory Commission’s Retail Aggregation Program (RAP), which allows companies to merge their energy demand across multiple facilities within the same franchise area. By participating in RAP, Globe gains greater flexibility in selecting its power supplier, accelerating its clean energy transition.

    The company has teamed up with ACEN Renewable Energy Solutions (ACEN RES), part of the Ayala Group, to facilitate this extensive shift toward sustainable energy.

    Irene Maranan, Senior Vice President and Head of Communications & Sustainability at ACEN, remarked, “By enabling the shift of over 3,000 sites to renewable energy, we are not only accelerating Globe’s Scope 2 emissions reduction but also advancing our collective net-zero ambition as a group.”

    Since 2019, Globe has ramped up its decarbonization strategy, becoming a participant in the Green Energy Option Program (GEOP) and the Retail Competition and Open Access (RCOA) framework. The company currently powers 33 high-consumption facilities with renewable energy, 22 of which operate under power purchase agreements (PPA) with ACEN RES.

    In a concrete demonstration of its commitment, Globe sourced 24% of its electricity from renewable sources in 2023. Moreover, it has deployed over 38,000 green network solutions, including energy-efficient hardware and alternative fuel systems, to enhance operational efficiency and reduce emissions.

    With ambitious sustainability goals, Globe aims to cut both direct and indirect emissions by 42% and reduce emissions from its value chain by 25% by 2030, using 2021 as a baseline. By 2050, the company is targeting a staggering 90% reduction in its total carbon footprint.

    Questions & Answers

    How does Globe Telecom plan to reduce its greenhouse gas emissions?
    Globe aims to transition over 3,000 cell sites to renewable energy by 2028, which is projected to eliminate around 5.5 million kilograms of greenhouse gas emissions annually.

    What is the Retail Aggregation Program, and how does it benefit Globe?
    The Retail Aggregation Program allows Globe to consolidate its energy demand across facilities, providing flexibility in energy sourcing and accelerating the move to clean energy.

    What sustainability targets does Globe have for the coming years?
    Globe aims to cut direct and indirect emissions by 42% and reduce value chain emissions by 25% by 2030, with a long-term goal of achieving a 90% reduction in its total carbon footprint by 2050.

  • Retail Sales Soar in Shanghai as Visa-Free Access Opens New Opportunities

    Retail Sales Soar in Shanghai as Visa-Free Access Opens New Opportunities

    China’s new visa policies and tax refund reforms are having a transformative impact on international travel and retail in Shanghai, according to a recent report by Savills. The city has seen a remarkable increase in international arrivals and shopper engagement, driven by enhanced accessibility and an appealing cultural landscape.

    Since December 2023, China has opened its doors wider, implementing visa-free entry for citizens from 43 countries and extending transit periods to 240 hours for 54 others. These changes have led to an impressive 2.6 million international arrivals in Shanghai during the first trimester of 2025—marking a 37.1% year-on-year increase. Notably, visitor numbers surpassed pre-COVID levels in both December 2024 and April 2025, signaling a vibrant revival of tourism.

    This influx has not only extended tourists’ stays but has also sparked a shopping spree in the city. Leveraging its well-developed infrastructure, affordable flight options, and rich cultural offerings, Shanghai has positioned itself as a prime destination for both leisure and business travelers alike.

    In April, the government took additional steps to encourage spending by lowering the minimum tax refund threshold to $28 (RMB200) and significantly increasing the annual reimbursement cap to $2,785 (RMB20,000). More stores and malls are now included, with visitors able to claim an immediate 11% refund at over 3,300 participating tax refund outlets, including major shopping havens along East and West Nanjing Road, Xujiahui, and Zhuyuan.

    The impact of these reforms has been palpable. During the Labour Day holiday in 2025, inbound tourist spending soared to $63.39 million (RMB455 million), an astonishing 211.6% increase compared to the previous year.

    Retailers are eager to capitalize on this growth, adopting high-quality, immersive experiences to meet the evolving needs of consumers. Visitors are increasingly drawn to Chinese brands, shopping fervently for fashion, designer bags, themed toys, and food—reflecting a diverse and vibrant retail landscape.

    South Korea, Japan, and Thailand emerged as the top three origin countries for tourists in Q1 2025, with notable increases in visitors from Thailand (+242.75%), South Korea (+142.37%), and Indonesia (+118.51%). The profile of these travelers is skewing younger; approximately 40% of incoming tourists are between the ages of 20 and 35, according to Mastercard.

    These “digital natives” are not just wandering the aisles; they’re active on social media throughout their shopping journeys, making seamless online-to-offline engagement crucial for brands seeking to connect with them meaningfully.

    Brands such as SHUSHU/TONG and Songmont report that nearly half of their clientele now consists of international visitors. Meanwhile, brands like Pop Mart and Miniso are capitalizing on trendy IP partnerships and social media buzz to attract attention and drive sales.

    The dining scene is also thriving, with restaurants like Haidilao and Long Time Ago experiencing higher foot traffic from foreign patrons than locals during peak hours. To cater to this diverse clientele, many establishments have introduced multilingual menus and AI translation tools, ensuring that no one is lost in translation, or worse, in flavor.

    Despite this positive momentum, some caution remains as consumer sentiment is tempered by broader economic uncertainties, with value-for-money becoming a deciding factor for many shoppers.

    Nonetheless, the marketplace is energized by emerging brands, particularly in sectors like outdoor apparel, pet services, and global bistros. Additionally, themed malls focusing on ACG (anime, comics, games) culture and immersive experiences are rapidly gaining popularity among niche audiences.

    As major attractions such as Lego and Harry Potter theme parks loom on the horizon, expectations are high for these developments to further enhance Shanghai’s reputation and stimulate cross-sector consumption in retail, hospitality, and tourism.

    Questions & Answers

    How have China’s visa policies impacted tourism in Shanghai?
    China’s recent visa-free entry policies have resulted in a significant rise in international arrivals, with 2.6 million tourists flocking to Shanghai in just the first four months of 2025—a 37.1% increase from the previous year.

    What measures have been taken to encourage foreign spending in Shanghai?
    In April, the government lowered the minimum tax refund threshold to $28 and doubled the annual cap to $2,785. This allows more tourists to enjoy immediate tax refunds at over 3,300 designated stores, driving a substantial increase in visitor spending.

    Which demographics are primarily driving tourism in Shanghai?
    Younger travelers, particularly those aged 20 to 35, make up about 40% of all inbound visitors. This group tends to engage heavily with social media, making their shopping experiences intertwined with digital interactions.

  • UBS Clients Explore Legal Action to Amplify Their Demands for Change

    UBS Clients Explore Legal Action to Amplify Their Demands for Change

    In the wake of UBS’s goodwill settlements with select clients affected by losses on dollar derivatives, a wave of discontent is surging among other investors, leading some to consider legal action. The Financial Times recently reported that UBS has made goodwill payments to a subset of these clients, yet many are finding the resolution far from satisfactory, as highlighted in a report from the NZZ.

    Sources indicate that a few hundred clients in Switzerland have been impacted, with negotiations still underway for additional goodwill payments. Yet, as frustrations mount, several are moving toward legal recourse. The Zurich public prosecutor has acknowledged receiving criminal complaints citing violations of the Unfair Competition Act, and these are currently under preliminary review. Simultaneously, three law firms are gearing up to file civil lawsuits against the bank.

    A Case of Unfinished Business

    Attorney Dominik Elmiger from the law firm Lalive, representing several disgruntled UBS clients, asserts, “The bank is acting as if the matter is nearly resolved, when in fact it is just beginning.” Many of the clients seeking recourse are elderly investors, staring down the barrel of significant losses that could run into millions of dollars if they are forced to sell their financial instruments without proper compensation. Alarmingly, these clients have yet to receive any settlement offers from UBS, prompting fears they might be left high and dry.

    Pressure Builds for UBS

    This environment of rising tension has led clients to escalate their response legally. The very threat of litigation could compel UBS to revisit its negotiating stance. Elmiger explains, “If UBS’s negotiations with clients are not successful, the clients will have to pursue the matter in court.” At the heart of the complaints is the allegation that UBS and its advisors did not sufficiently inform clients about the inherent risks associated with loss and margin calls tied to these products.

    Questions & Answers

    What prompted UBS clients to seek legal action?
    Frustrated by unsatisfactory goodwill settlements, several clients affected by losses on dollar derivatives are now preparing to initiate legal proceedings against UBS.

    How many clients in Switzerland are impacted by the situation?
    Reports indicate that a few hundred clients in Switzerland have been affected, with ongoing negotiations for additional goodwill payments.

    What are the primary allegations against UBS?
    Clients claim that UBS and its advisors failed to adequately inform them about the risks associated with loss and margin calls linked to their financial products.

  • Ikea Sparks Green Revolution With Sustainable Retail Space In Shanghai

    Ikea Sparks Green Revolution With Sustainable Retail Space In Shanghai

    Retail giant IKEA is intensifying its commitment to sustainability by launching a dedicated retail space in China that prioritizes environmental responsibility. The new venture, a part of their larger strategy to embrace sustainable practices, features a remarkable assortment of eco-friendly home goods designed to appeal to the Chinese consumer who is increasingly conscious of their environmental footprint. This innovative store isn’t just a shopping destination; it’s a step towards reshaping consumer habits in one of the world’s most populous countries.

    A Green Revolution at IKEA

    The heart of this initiative lies in the selection of products that incorporate sustainable materials and offer solutions to reduce energy consumption at home. IKEA aims to inspire its customers by showcasing not only products but also ideas on how to lead a more sustainable lifestyle. “We want to help our customers make conscious choices in their homes, and that begins with the products we offer,” announced IKEA’s regional director in a recent press conference, emphasizing the brand’s environmentally friendly ethos.

    Location and Features

    Situated in the bustling metropolis of Shanghai, the new store will spotlight a range of innovative designs, from energy-efficient appliances to furniture made from recycled materials. This flagship location is designed to encourage sustainable living, featuring interactive exhibits that demonstrate how everyday choices can lead to a smaller carbon footprint. Notably, the showroom will even include a live demonstration of how to create a rooftop garden, which is bound to intrigue urban dwellers looking to bring a piece of nature into their lives.

    Consumer Response and Future Plans

    Early feedback indicates that shoppers are excited about this fresh approach. One enthusiastic customer, who refers to IKEA as their “second home,” expressed delight at the potential for their favorite retailer to lead the charge on sustainability. As digital engagement continues to grow, IKEA’s push towards a greener retail model could set a precedent across Asia, enticing consumers to reconsider their purchasing decisions. Beyond this Shanghai location, the brand is planning additional eco-focused stores throughout China as part of a larger expansion strategy, aiming to make sustainability mainstream.

    The Bottom Line: An Enhanced Brand Experience

    With this bold step, IKEA is not just selling products but weaving a narrative about responsible consumption and eco-conscious living. It’s a delicate balancing act, transforming retail into a platform for change while continuing to engage with customers on a personal level. As consumers increasingly seek brands that reflect their values, IKEA’s new sustainable focus could very well ignite a green revolution in retail, giving shoppers a reason to rethink the way they furnish their homes – and maybe even their lives. Who knew that shopping at IKEA could take on a mission to save the planet?

    Questions & Answers

    What sustainability initiatives is IKEA implementing in their new Shanghai store?
    IKEA’s Shanghai store will feature a selection of eco-friendly home goods, including products made from sustainable materials, and will emphasize energy efficiency through innovative designs.

    How does IKEA plan to engage consumers with sustainability?
    The store will showcase interactive exhibits and demonstrations, such as creating rooftop gardens, encouraging consumers to adopt a more sustainable lifestyle through practical ideas and inspirations.

    What are IKEA’s future plans for sustainable retail in China?
    Following the launch in Shanghai, IKEA aims to expand its sustainable retail model by opening additional eco-focused stores throughout China, making sustainability a core part of their brand experience.

  • Telin Unveils New Cable Landing Station in Manado-Minahasa, Boosting Indonesia’s Connectivity!

    Telin Unveils New Cable Landing Station in Manado-Minahasa, Boosting Indonesia’s Connectivity!

    PT Telekomunikasi Indonesia International (Telin) has officially unveiled its new cable landing station (CLS) in Kalasey, Minahasa, a development poised to enhance Indonesia’s international connectivity and digital infrastructure. This milestone is particularly crucial for the eastern regions of the country, as Telin continues to strive for improved digital integration.

    High-Profile Inauguration Ceremony

    The inauguration ceremony gathered notable executives from Telkom Group, including Honesti Basyir, CEO of CFU WIB Telkom Group, and Muhammad Rofik, President Commissioner of Telin, among others. The event also welcomed officials like Bambang A. Margono, Telin Commissioner, and several board members who play pivotal roles in steering the company toward its ambitious goals. The presence of key industry leaders emphasized the importance of this new facility in the broader context of regional digitalization.

    A Leap Forward in International Connectivity

    Central to this project is the CLS Manado-Minahasa, which forms an integral part of the Bifrost Cable System—an international subsea cable initiative developed alongside Keppel and Meta. This cutting-edge system enables a direct connection from Southeast Asia to North America, cleverly bypassing traditional transit routes by charting courses through significant maritime corridors like the Java and Celebes Seas. This new pathway reinforces Indonesia’s critical position within the global digital traffic network, much like a high-speed rail linking cities across a vast landscape.

    Milestones Achieved Since 2021

    Since the announcement of the Bifrost cable system in 2021, Telin has swiftly reached a number of crucial milestones. These include site selection, a groundbreaking ceremony in October 2024, and the successful landing of the cable in early 2025, followed by completing the construction of the CLS. After the Jakarta CLS’s cable landing last year, the Manado-Minahasa CLS is now primed for operation, ready to integrate seamlessly into Telkom’s expanding network and drive Indonesia further into the digital future.

    Positive Projections for Future Connectivity

    Honesti Basyir highlighted the strategic importance of this investment, stating,

    “The Manado-Minahasa cable landing station marks a bold step in positioning Indonesia as a vital digital gateway for the Asia Pacific. By connecting directly across the Pacific via Bifrost and preparing for future cables, we are building the foundation for a more connected, innovative, and prosperous digital future for our nation and region.”

    Meanwhile, Budi Satria Dharma Purba, CEO of Telin, concurred, emphasizing the role of the station in facilitating economic opportunities and technological advancements:

    “The Manado Cable Landing Station is more than just infrastructure; it is a gateway for Indonesia to lead in the digital era.”

    Infrastructure Built for Growth

    The CLS Manado-Minahasa boasts robust and scalable infrastructure designed to accommodate a variety of submarine cable systems. Equipped with beach manhole (BMH) integration and impressive front-haul connections, this facility is well-positioned to serve as a landing point for future subsea cables and digital platforms.

    The launch of the Manado-Minahasa cable landing station symbolizes a significant stride in Indonesia’s digital transformation journey. By bolstering Bifrost and supporting other international cable initiatives, this strategic asset is set to enhance regional connectivity, drive economic progress, and solidify Indonesia’s role as a crucial hub in the global digital landscape.

    Questions & Answers

    What is the significance of the new cable landing station in Minahasa?
    The cable landing station is a critical component in enhancing Indonesia’s international connectivity, particularly for the eastern regions of the country, and supports various upcoming international digital projects.

    How does the Bifrost Cable System affect Indonesia’s digital landscape?
    The Bifrost Cable System directly connects Southeast Asia to North America, bypassing traditional routes and significantly strengthening Indonesia’s position in the global digital traffic network.

    What are the future prospects for the CLS in Minahasa?
    With its advanced infrastructure designed for scalability and future connectivity, the CLS is poised to support multiple subsea cable systems and promote economic growth throughout the Asia-Pacific region.

  • Revolut Challenges Swiss Banks with New Euro Accounts Tailored for SMEs

    Revolut Challenges Swiss Banks with New Euro Accounts Tailored for SMEs

    Revolut Business is stepping up its game in Switzerland, unveiling a suite of new financial features aimed squarely at small and medium-sized enterprises (SMEs). Effective immediately, Swiss companies can access euro-denominated savings accounts offering an attractive annual interest rate of up to 1.75 percent. These accounts come with the flexibility of daily payouts, no minimum deposit, and the freedom of free withdrawals anytime.

    But that’s not all. Revolut is also introducing support for QR-bill payments, a popular invoicing standard in Switzerland. In the near future, the neobank plans to roll out forward foreign exchange contracts, enhancing its appeal to businesses navigating the complexities of international trade.

    Seizing on Rising Demand

    The latest innovations are a direct response to the surging demand from SMEs. Revolut has reported an impressive 76 percent annual increase in business client deposits, alongside a staggering 123 percent uptick in monthly transactions. Such growth indicates that Swiss SMEs are eager for modern banking solutions that accommodate their dynamic needs.

    This rollout builds on Revolut’s current offerings, which include virtual IBANs and investment solutions tied to money markets. The anticipated forward contracts promise to equip companies with effective tools for hedging against currency risks, a service historically dominated by larger firms.

    Ambitious Plans for Expansion

    James Gibson, head of Revolut Business, hinted at the company’s ambitious expansion plans in Switzerland during a recent interview. He identified the Swiss SME sector as ripe for disruption with digital-first banking solutions. Gibson also mentioned that Revolut is actively considering the introduction of physical point-of-sale payment terminals, a move that would further broaden its service portfolio in the region.

    Globally, Revolut boasts over 60 million personal accounts and several hundred thousand corporate customers. Within Switzerland alone, the company claims to have over 1 million personal users and thousands of businesses tapping into its innovative offerings, proving that they are indeed shaking up the banking landscape.

    Questions & Answers

    What new features is Revolut introducing for Swiss SMEs?
    Revolut is launching interest-bearing euro-denominated savings accounts with an attractive 1.75 percent annual interest rate and support for QR-bill payments. Forward foreign exchange contracts are also set to follow soon.

    How significant is the demand for Revolut’s services from SMEs in Switzerland?
    The demand is substantial, as revealed by a 76 percent year-on-year rise in business client deposits and a 123 percent growth in monthly transactions.

    What are Revolut’s broader plans for expansion in Switzerland?
    James Gibson indicated that Revolut is looking into offering additional payment tools, such as physical point-of-sale terminals, further enhancing its digital-first approach to banking for Swiss SMEs.

  • Louis Vuitton and Tiffany Exit Japan’s Regional Retail Scene, Handing the Spotlight to Coach

    Louis Vuitton and Tiffany Exit Japan’s Regional Retail Scene, Handing the Spotlight to Coach

    In a noteworthy shift that underscores the evolving landscape of retail, major luxury brands are retreating from department stores in Japan’s less urban areas, leaving store managers grappling with the challenge of maintaining customer interest. This trend signifies a significant change in consumer behavior and retail strategy in the region.

    Luxury Brands Exit Small-Town Market

    American jewelry giant Tiffany recently shuttered its outlet on the first floor of the Keisei Department Store in Mito, marking a dramatic shift in the availability of high-end shopping options in Ibaraki Prefecture. This closure followed the December exit of France’s iconic Louis Vuitton from the same location, leaving a conspicuous void in the luxury offering for residents and visitors alike.

    Once a bastion of luxury retail in the outskirts of the greater Tokyo metropolitan area, the department store now features blank spots where these high-profile brands once showcased their goods. With two of the only directly operated luxury outlets in the region gone, the lingering question remains—what will fill the luxury space now absent from Mito’s retail scene?

    The Ripple Effect on Local Retail

    The departure of these prestigious labels is sending ripples through local retail operations as managers strive to adapt to a market increasingly shifting towards a preference for urban shopping experiences. Store managers are now left in a precarious position: how do they keep customers engaged when the allure of luxury is sidelined? The fading presence of such brands challenges the traditional department store model that has long been a staple in Japanese retail.

    As consumer priorities evolve, this trend could encourage a much-needed pivot in the strategies employed by these stores, perhaps giving room for more niche brands or localized offerings. Perhaps we’ll see that what loses in luxury may gain in unique experiences—who knows? Maybe a sushi-tasting event could become the next big draw!

    Looking Ahead

    While the departure of major luxury brands from suburban department stores is alarming for some, it also opens the door for innovation within the retail sector. As consumer dynamics change, traditional retailers will need to rethink their approach to remain relevant. With globalization and digital shopping continuing to gain traction, Mito and similar locales may have to adapt in ways previously overlooked.

    Questions & Answers

    What does the closure of Tiffany and Louis Vuitton outlets signify for the retail landscape in Japan?
    The closures highlight a shift in consumer behavior, with luxury brands retreating from smaller markets, reflecting a growing preference for urban shopping experiences.

    How are department store managers responding to the loss of luxury brands?
    Store managers are tasked with finding ways to keep customers engaged, potentially by shifting focus to niche products or unique experiences.

    Could the departure of luxury brands lead to new opportunities for local retailers?
    Yes, this trend might encourage local retailers to innovate, leading to an increased emphasis on personalized shopping experiences and localized offerings.

  • Autonomous Agents Set to Revolutionise Retail Transportation Management

    Autonomous Agents Set to Revolutionise Retail Transportation Management

     

    Manhattan Associates Inc., the global leader in supply chain commerce, today announced the findings of its latest collaboration with international research firm Vanson Bourne. The global research surveyed 1,450 senior decision-makers* from organisations in retail, wholesale, consumer goods, grocery and food & beverage sectors.

    “Transportation is the backbone of supply chains, essential to ensuring goods are delivered on time to meet customer expectations,” commented Bryant Smith, director, Transportation Management Systems (TMS) at Manhattan Associates. “Yet, managing transportation is becoming increasingly complex, pressured by demands on shorter fulfilment times, capacity and cost efficiencies, tighter sustainability regulations, and the growing necessity for access to end-to-end visibility across all operations,” Smith added.

    Fragmented systems: operational visibility and efficiency still challenging

    The true value of visibility extends beyond simply accessing operational data: it lies in the ability to address issues highlighted by this information and action operational improvements more quickly and efficiently. Beyond disruptions however, 60% of organisations say that enhancing visibility leads to greater customer satisfaction, through more accurate and timely updates, while 50% cite reductions in transportation costs as a key benefit of increased operational visibility.

    The AI revolution: excitement but readiness challenges

    61% of organisations anticipate fully autonomous Agentic AI, capable of acting independently to achieve specific goals within the next five years, however, only 37% have deeply integrated AI and machine learning in their TMS today.

    While many might view five years in the AI space like an eon, the gap between future expectations and current usage is noteworthy given adoption is rarely straightforward: although almost half (48%) said that they already feel very prepared for autonomous agents by 2030, practically every organisation (99%) reported facing, or expecting to face, hurdles, with concerns including skill shortages (49%), integration difficulties (44%) and data quality and availability issues (44%).

    With many organisations seemingly well-placed to take advantage of the cost, efficiency and scalability gains afforded by autonomous agents, those organisations on the other side need to rethink their AI strategies otherwise they risk losing significant (and possibly irretrievable) market share to rivals.

    Sustainability compliance: a priority and significant pain point

    The push for more sustainable transportation is widespread. 69% of organisations say sustainability is either a global mandate or an area of significant pressure, with 62% already implementing Corporate Sustainability Reporting Directive reporting. Navigating complex and shifting compliance requirements remains a global challenge, with sustainability compliance most frequently cited as a constraint expected to impact organisational performance over the next five years. A modern TMS can help to deliver the data visibility and functionality needed to measure progress and demonstrate compliance, vital to ensuring sustainability remains at the forefront of organisational thinking.

    Smith summarised: “Modern transportation management demands organisations balance a range of competing priorities, and the research clearly illustrates many organisations are still unprepared to meet the challenges of evolving sustainability mandates, expectations around AI and the need for more visible, actionable data insights. Looking ahead to 2030, these demands will intensify, increasing the pressure on organisations to operate transportation operations in smarter more intuitive ways.

    “87% of respondents anticipate that challenges in areas such as operational visibility, AI adoption and sustainability compliance will intensify, leaving their current Transportation Management Systems struggling to keep pace. Failure to act now will expose organisations to rising costs, questions over long-term efficacy, and the risk of falling short of customer promises,” Smith concluded.

  • Asia’s FMCG Market Thrives Amid Global Economic Challenges: A 2025 Analysis

    Asia’s FMCG Market Thrives Amid Global Economic Challenges: A 2025 Analysis

    In the face of a tumultuous global economic landscape, Asia’s fast-moving consumer goods (FMCG) market demonstrated resilience in the first quarter of 2025, expanding by 2.8% year-on-year. The growth was primarily fueled by robust performances in the food, beverages, and home care sectors, while personal care registered modest gains and the dairy segment faced a downturn.

    Northern Dynamics: Strong Demand Reshapes China’s Market

    In North Asia, consumers lifted FMCG spending by 1.9%, buoyed by significant growth in food, beverages, and home care products. Particularly notable was China, which saw a surge in demand over the festive holidays. Lower-tier cities thrived, reporting a growth of 5.9%, with town-level markets skyrocketing by more than 10%. Home care products emerged as the primary growth driver, and personal care began to show promising signs of recovery.

    Korea enjoyed a 4.2% increase in FMCG value, largely thanks to larger shopping baskets, although the frequency of shopping visits tapered off. Taiwan shone brightly, achieving an impressive 8.8% growth in value, spurred by an 8% rise in food and an 11% uptick in non-food categories.

    Southeast Asia: Consumers Tread Lightly Amid Growth

    Southeast Asia proved to be a vibrant player, outpacing the regional average with a 4.1% increase in FMCG expenditures, though consumer behavior remained cautiously optimistic. Malaysia saw a modest market growth of 1.6%, characterized by fewer shopping trips, but with consumers opening their wallets wider during each visit, thanks to festive promotions coupled with lower average prices early in the year.

    In Indonesia, FMCG value leaped by 5.5%, but a notable decline in volume marks the first time consumers have opted for reduced quantities, highlighting economic pressures that have driven them toward seeking better value or switching to more affordable alternatives. Thailand’s market grew by 2.7%, though its expansion was dampened by previous government subsidies, which led to advanced purchasing behavior late last year, with no further stimulus anticipated in 2025.

    The Philippines reported similar growth to Indonesia at 5.5%, attributed to increased spending per shopping trip, albeit with less frequent visits. Meanwhile, Vietnam celebrated its strongest first quarter in five years, invigorated by rising consumer prices for essentials and the festive Tet holiday, signaling a moderate recovery in the in-home FMCG space.

    South Asia: India Leads the Charge

    South Asia’s leading powerhouse, India, achieved a commendable 7.1% value growth, including a 4.4% increase in volume, alongside a 2.5% hike in average prices. Despite these gains, both metrics lagged behind last year’s pace, reflecting a broader trend. With inflation receding slightly, higher-income households have begun diverting their spending towards travel, dining, and lifestyle choices, while lower-income consumers remain committed to essential goods.

    Middle East Momentum Amid Growth

    Across the Middle East, the UAE made significant strides in FMCG growth during Q1, propelled by vibrant Ramadan sales and a steadily growing population. A plethora of categories reported expansion, underscoring consumer optimism in the face of ongoing pressures. Saudi Arabia too saw a rebound in FMCG volumes, driven by frequent shopping trips, even as basket sizes tightened—a sign of enhanced affordability and alleviating inflationary concerns.

    Questions & Answers

    How has consumer behavior changed in Southeast Asia recently?
    Consumer behavior in Southeast Asia is increasingly cautious, as evidenced by slower shopping frequency, even amidst higher spending per trip. This trend reflects a desire to make every visit count.

    What led to China’s impressive growth in FMCG?
    China’s FMCG growth was largely driven by strong demand during festive holidays, particularly in lower-tier cities, which managed to outpace growth in urban centers.

    What trends are emerging among different income groups in India?
    In India, higher-income households are reallocating their spending towards non-essential categories like travel and dining, while lower-income consumers continue to focus on essential goods as inflation impacts their purchasing power.

  • Globe Business Harnesses Data-Driven Strategies to Fuel Growth in the Digital Marketplace

    Globe Business Harnesses Data-Driven Strategies to Fuel Growth in the Digital Marketplace

    As the digital economy rapidly transforms industries across Southeast Asia, the Philippines is strategically positioning itself to become a pivotal hub for innovation, data, and connectivity. With soaring digital consumption and an advantageous location, the country stands at the forefront of this technological wave.

    In an exclusive interview with Telecom Review Asia, Raymond Policarpio, Vice President and Head of Strategy Management and Business Investments at Globe Business, the corporate arm of Globe Telecom, shed light on the Philippines’ journey to becoming a cornerstone in the global digital economy.

    Charting the Philippines’ Path in the Global Digital Economy

    The Philippines is primed to emerge as a major regional digital hub, bolstered by soaring data consumption rates. Among international data consumers, Filipinos rank high, particularly on platforms like Meta and YouTube. However, to fully realize this potential, robust infrastructure development is essential.

    While neighboring Southeast Asian nations such as Malaysia, Indonesia, Singapore, and Hong Kong are stepping up as regional leaders, the Philippines offers unique advantages, including a strategic location and a sizeable, predominantly working-age demographic. The pivotal challenge lies in enhancing the country’s infrastructure capabilities.

    At Globe Business, addressing this infrastructure gap is a top priority. The company is heavily investing in modernizing its digital infrastructure, encompassing expansive domestic fiber networks and international subsea cables. Additionally, investments in cable landing stations (CLS) and data centers are paramount to ensure the infrastructure remains modern, reliable, and prepared for future needs. These developments are critical not just for technological progress, but positioning the nation in the global digital landscape.

    The Role of Data Centers and Subsea Cables in Digital Advancement

    In today’s data-driven world, information is the new gold, yet it requires the right storage and access solutions. The adage “build it and they will come” rings true—the current volume of data already flowing through the Philippines promises to multiply as we introduce enhanced data centers. Access to this information hinges on robust cable systems, both domestically and internationally.

    Globe Business is actively developing these vital data centers through its subsidiary, STT GDC Philippines, while also forming strategic partnerships for broader infrastructure cooperation. This initiative promises to propel the nation’s digital transformation.

    In the past year, the company launched a domestic submarine cable network to handle rising local data traffic. On the international front, the Asia Link Cable (ALC), expected to connect the Philippines with regional powerhouses Singapore and Japan by 2026/2027, exemplifies these efforts. With several additional cable systems in progress, Globe is focused on scaling infrastructure to keep pace with America’s data surge.

    Infrastructure Investments: Balancing Profit with Purpose

    At Globe Business, the evaluation of infrastructure investments encompasses not only financial returns but also broader societal impact. Leading the Strategy Management team means emphasizing the importance of value creation. Policarpio highlights that when establishing subsea cables, for example, it can take five to seven years for them to come online, necessitating forward-thinking vision to unlock their true potential, not just for Globe but for the entire country.

    The company opts to prioritize sustainability and nation-building, focusing on expanding accessibility for consumers and enterprises alike. This strategic value-driven approach underpins their infrastructure investments.

    The Cloud Revolution: Embracing Trends in Local Business

    Data remains the linchpin, propelling the rise of cloud adoption among businesses. The burgeoning data ecosystem not only fuels interest in cloud computing but also in cybersecurity and artificial intelligence.

    Large enterprises are increasingly embracing cloud solutions, yet what’s particularly intriguing is the rapid cloud uptake among small and medium-sized enterprises. Many SMEs may not fully grasp the intricacies of cloud technology, but they unknowingly leverage it through AI-driven tools and cloud applications from providers like Google and Microsoft.

    Globe Business is responding with comprehensive solutions spanning connectivity, cloud services, and security while offering guidance to SMEs navigating their digital transformation journeys. Helping these businesses thrive is integral to Globe’s mission, as the adoption of cloud and AI technologies becomes an everyday reality.

    Collaboration: The Key to Infrastructure Growth

    Within the competitive telecommunications landscape, collaboration stands crucial at Globe Business. Policarpio asserts that authentic infrastructure growth can stem only from cooperative partnerships, aligning shared objectives among global and local players alike.

    Ongoing Projects to Fortify the Digital Landscape

    Globe Business is diligently engaged in enhancing the country’s digital infrastructure through various significant initiatives. A cornerstone project is the Philippine Domestic Submarine Cable Network, built in partnership with local collaborators to create a fiber-rich and reliably modern backbone tailored to the archipelago’s diverse connectivity needs.

    The company continues to expand its fiber network across the nation while establishing more cable landing stations to meet rising data demands from global titans such as Microsoft, Google, and Meta. The upcoming ALC will link the Philippines to regional hubs like Singapore and Japan, reflecting shifting internet traffic trends driven by geopolitical dynamics. Furthermore, sustained investments in data centers are vital to nurturing this thriving digital ecosystem.

    Questions & Answers

    How is Philippines’ digital infrastructure progressing and what role does Globe Business play?
    The Philippines is advancing as a digital hub, with Globe Business investing heavily in infrastructure such as data centers and subsea cables to support its burgeoning data consumption.

    What impact do data centers have on the country’s digital growth?
    Data centers act as essential receptacles for the ever-increasing data flow, enhancing access and storage capabilities crucial for the Philippines to thrive digitally.

    How does Globe Business measure the success of its infrastructure investments?
    Globe Business emphasizes sustainability and societal value over mere profitability, measuring success by how its investments contribute to accessibility and nation-building.

  • Beauty Spaces” Redefine Consumer Habits Amid Stagnant Product Usage In 2024

    Beauty Spaces” Redefine Consumer Habits Amid Stagnant Product Usage In 2024

    The beauty landscape is witnessing a seismic shift in 2024, as consumers increasingly tailor their product choices to fit specific daily activities. Gone are the days of rigid beauty routines; today’s buyers are embracing flexibility, informed by their real-life experiences. According to Kantar’s Face Value report, individuals are selecting beauty products based on unique moments they face throughout the day, termed “Beauty Spaces.” These include categories such as “Work Mode,” “Sweat & Reset,” and “Evening Exhale.”

    While global beauty spending is on the rise, much of this growth can be attributed to pricing increases rather than an uptick in product volume. Countries like Brazil, India, and France reported impressive spending gains of 16.8%, 12.7%, and 8.9% respectively, yet actual product usage remains stagnant or is even declining. In China, for example, beauty spending fell by 4% year-over-year, with a corresponding 1% dip in volume.

    Traditional beauty routines, including the once-popular “Rise & Shine,” are seeing negligible growth rates between 0% and 2%. In contrast, newer categories such as “Brunch Beauty” are on a rapid upward trajectory, boasting over 5% year-over-year growth in markets like the U.S., U.K., and Germany. Consumers are increasingly gravitating towards versatile, quick-acting products, with micellar waters, mists, and gels gaining particular popularity in India, France, and Indonesia.

    As shoppers seek out efficiency and adaptability, hybrid products that mix elements of skincare, haircare, and makeup are gaining traction. For instance, post-workout scalp serums and overnight hair oils are becoming staples across multiple Beauty Spaces. Notably, younger consumers are at the forefront of this trend, particularly engaged in “Sweat & Reset” and “Night Out Glow” moments.

    The report highlights a significant shift in shopping behavior, where traditional category-based selections are yielding to experience-driven layouts both online and in physical stores. Social media platforms like TikTok and YouTube Shorts are revolutionizing the way consumers discover products, focusing on not just what to buy, but also when and how to use them. In Taiwan and China, digital sales of personal care products have surged to account for 59% and 56% of their respective beauty markets. The Philippines has also seen remarkable growth, jumping from 8% in 2022 to 18% in 2024.

    Retailers are responding creatively to these changes, introducing mood-based pop-ups and interactive experiences—think scratch-and-sniff billboards—to enhance customer engagement.

    Questions & Answers

    How are consumers redefining their beauty routines in 2024?
    Consumers are moving away from rigid, traditional beauty routines and opting for flexibility, choosing products that fit specific daily moments, or “Beauty Spaces,” such as work, exercise, or relaxation.

    What is driving growth in the beauty industry despite declining product usage?
    While overall spending on beauty products is rising, much of this growth is attributed to price increases rather than increases in product volume, highlighting a possible disconnect between spending and actual usage rates.

    Which regions are experiencing significant online sales growth in the beauty category?
    Taiwan and China are leading the charge, with digital sales of personal care products making up 59% and 56% of their markets, respectively. The Philippines has also seen a dramatic increase from 8% to 18% in just two years.

  • Understanding Market Sentiment: How Speculators Influence Oil Prices

    Understanding Market Sentiment: How Speculators Influence Oil Prices

    The global oil market isn’t just about supply and demand anymore. While physical factors like production levels and geopolitical tensions certainly matter, there’s another powerful force: market sentiment driven by speculators. These financial players can send crude prices soaring or plummeting based on little more than gut feelings and educated guesses about the future.

    The Psychology Behind Oil Trading

    Market sentiment in oil trading is the collective mood of investors and traders. When optimism runs high, prices climb without fundamental supply or demand changes. Conversely, pessimistic sentiment can drag prices down regardless of actual market conditions.

    Speculators — ranging from hedge funds to individual traders – don’t typically take physical delivery of oil. Instead, they’re betting on price movements through futures contracts and other financial instruments. Their decisions are heavily influenced by news headlines, economic indicators, and even social media chatter. A single tweet from a world leader or an unexpected inventory report can trigger massive buying or selling sprees.

    How Speculation Amplifies Price Movements

    The speculative element adds a layer of volatility that wouldn’t exist in a purely physical market. When speculators collectively believe oil prices will rise, they pile into long positions, creating upward pressure that can become self-fulfilling. This momentum trading can push prices well beyond what supply and demand fundamentals would suggest.

    Take the oil price spike in 2008, when crude briefly touched $147 per barrel. While there were genuine supply concerns, speculative activity significantly amplified the move. Similarly, during the COVID-19 pandemic, speculative selling contributed to the historic collapse that saw oil futures briefly trade in negative territory.

    The Role of Algorithmic Trading

    Modern oil markets are increasingly dominated by computer algorithms that can execute thousands of trades per second. These systems often react to sentiment indicators, news sentiment analysis, and technical patterns rather than fundamental oil market data. When algorithms all move in the same direction simultaneously, the resulting price swings can be dramatic and seemingly disconnected from physical market realities.

    Regulatory Responses and Market Structure

    Regulators have implemented position limits and increased reporting requirements to monitor speculative activity more closely. However, the global nature of oil trading and the sophistication of financial instruments make it challenging to control speculative influences completely.

    The Commodity Futures Trading Commission in the US and similar bodies elsewhere regularly publish data on trader positions, helping market participants gauge speculative sentiment. These reports often become market-moving events, as traders adjust their positions based on what others are doing.

    The Double-Edged Sword of Speculation

    While speculation can create unwanted volatility, it also provides crucial liquidity to oil markets. Speculators help ensure buyers and sellers are always available, making it easier for genuine commercial users to hedge their exposure to oil price movements.

    The challenge for market participants is distinguishing between price movements driven by genuine supply and demand factors versus those fueled purely by sentiment and speculation. Understanding this dynamic is crucial for anyone navigating the complex world of oil pricing, whether they’re industry professionals, policymakers, or consumers wondering why petrol prices seem to move independently of obvious market fundamentals.

  • Motorbike Sales Surge 6.4% in First Half of the Year: A Thriving Market Trend

    Motorbike Sales Surge 6.4% in First Half of the Year: A Thriving Market Trend


    In a promising start to 2025, members of the Vietnam Association of Motorcycle Manufacturers recorded a 6.4% year-on-year sales increase, totaling 1.28 million motorbikes sold in the first half of the year.

    Motorbike Sales Surge, But Faces Seasonal Hurdles

    Despite the optimistic overall growth, the landscape shifted in the second quarter, where sales dipped significantly by 9.2%, landing at 611,236 units. This drop contrasted with the brisk pace of 4.9 vehicles sold every minute in the first half, a slight uptick from 4.6 during the same timeframe last year.

    Industry Giants and Emerging Players in the Mix

    The sales figures were driven largely by industry stalwarts Honda, Yamaha, Piaggio, Suzuki, and SYM, who dominate the market. Notably, other manufacturers like VinFast, BMW Motorrad, Triumph, Kawasaki, and Harley-Davidson remain tight-lipped about their sales figures, leaving many wondering just how many bikes are purring on the roads. Meanwhile, VinFast, Vietnam’s own electric motorcycle producer, hit an impressive milestone with an estimated 71,000 units sold in the first half alone, matching its total output for all of 2024, according to a reliable source. The rest of the manufacturers are often considered peripheral players in this thriving market.

    Future Mobility Directions in Hanoi

    In a forward-thinking move, Hanoi’s government, under the directive of Prime Minister Pham Minh Chinh, has set ambitious targets to phase out fossil fuel-powered motorbikes by July 1, 2026. This initiative will extend further, with plans to ban personal petrol and diesel vehicles in specific urban areas by 2028 and again by 2030 for broader ring roads. This policy is anticipated to give a significant boost to electric vehicle sales, stimulating growth in a rapidly changing automotive landscape.

    Questions & Answers

    What was the total number of motorbike sales in Vietnam during the first half of 2025?
    Vietnam’s motorcycle manufacturers recorded sales of 1.28 million units in the first half of 2025, marking a 6.4% increase from the previous year.

    Which companies are leading the motorcycle market in Vietnam?
    The primary players in Vietnam’s motorcycle market include Honda, Yamaha, Piaggio, Suzuki, and SYM, who collectively make up the Vietnam Association of Motorcycle Manufacturers.

    What are Hanoi’s plans for electric vehicles?
    Hanoi aims to phase out fossil fuel motorbikes by July 1, 2026, with plans to restrict petrol and diesel cars further by the end of the decade, potentially increasing demand for electric vehicles.

  • Vietnamese Airlines Soar Ahead with New Direct International Flight Initiatives

    Vietnamese Airlines Soar Ahead with New Direct International Flight Initiatives

    Ngoc Yen is buzzing with excitement as she returns to Bali after a three-year hiatus, remarking that this time her journey was significantly more affordable and convenient thanks to a direct flight from Ho Chi Minh City. “It’s more manageable now: ticket changes are easy, the flight attendants speak Vietnamese, and the meals hit just right,” she shared, contrasting her previous experiences that often required lengthy layovers in Singapore, racking up unexpected costs along the way.

    Leading the charge in this travel renaissance, Vietnam Airlines has introduced an impressive 13 new international routes since early 2024. Among these, the cities of Ho Chi Minh and Bali, Copenhagen, Bengaluru, Hyderabad, and Milan are now just a short flight apart. This expansion includes its inaugural service to Denmark and the revival of crucial routes such as Hanoi to Moscow and Ho Chi Minh to Osaka.

    Today, Vietnam Airlines operates on 69 international routes—a notable 13% increase from pre-pandemic levels—connecting travelers to 37 destinations across 21 countries. A spokesperson for the airline highlighted its rapid recovery and expansion as “unprecedented.” The international routes have not only boosted airline connectivity but also contributed significantly to its financials, with revenues up by 10.6% year-on-year in the first half of 2025, accounting for 60% of total transport service revenues.

    Meanwhile, budget carrier Vietjet Air is setting its sights on the Indian market with flights to major cities like Mumbai, Ahmedabad, and Hyderabad. The airline recently kicked off new services from Nha Trang in Vietnam to Vladivostok, Khabarovsk, and Blagoveshchensk in Russia, and connected Hanoi with Chengdu in China. Looking ahead, Vietjet plans to add flights to Auckland, New Zealand, in September, part of a broader strategy for sustained growth.

    Bamboo Airways, on the other hand, is focusing its efforts on short-haul routes, allowing it to easily adjust flight frequencies to popular destinations like Bangkok, Taipei, and Seoul. In a unique twist, Vietravel Airlines is broadening its horizons in charter flights, appealing to high-end travelers with luxurious all-inclusive tours to destinations in South Korea, Japan, and Thailand.

    The Civil Aviation Authority of Vietnam has noted a resurgence, revealing that Vietnamese airlines are now operating across more than 150 international routes, surpassing numbers seen before the pandemic. This aggressive expansion is driven by a desire to retain slots at major airports as demand for air travel rebounds. Airlines are also gearing up to increase international flights to attractive Vietnamese tourist destinations such as Da Nang, Nha Trang, and Phu Quoc, signaling a strategic effort to reinforce Vietnam’s position in the global transport ecosystem.

    “We’re not merely chasing numbers; we’re selecting destinations with strong connectivity that serve both passenger and cargo needs,” stated a representative from one carrier, emphasizing the balance between growth and practicality. Routes like Hanoi-Hyderabad are gaining popularity due to competitive pricing, and travel agents in Hanoi report soaring demand for direct flights to India and Bali, particularly among independent and business travelers. As optimism swells, airlines are planning to continue this trend of international expansion, buoyed by the encouraging response to their new services.

    Questions & Answers

    What new international routes has Vietnam Airlines added recently?
    Vietnam Airlines has launched 13 new international routes including those to Bali, Copenhagen, Bengaluru, Hyderabad, and Milan.

    How has Vietjet Air expanded its operations?
    Vietjet Air has targeted the Indian market with flights to major cities like Mumbai and has also initiated new services to Russian cities and plans to connect to Auckland, New Zealand.

    What strategic moves are Vietnamese airlines making post-pandemic?
    Vietnamese airlines are rapidly expanding their international services to secure airport slots and respond to rising travel demand, focusing on destinations that enhance both passenger and cargo connectivity.