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Tag: asia

  • South Korean malls remain calm and patient

    South Korean malls remain calm and patient

    Panic buying is spreading like wildfire among a number of countries as fear of the coronavirus deepens.

    But large shopping malls in South Korea, however, are as peaceful as in the pre-coronavirus era.

    Experts argue that prior experiences in dealing with various epidemics, such as Severe Acute Respiratory Syndrome (Sars) in 2003 and Middle East Respiratory Syndrome (Mers) in 2015, has allowed retailers to maintain a stable supply of everyday necessities at shopping malls.

    Rapid technological advancement in online delivery and distribution systems thanks to the fierce competition among retailers has also helped maintain supply despite the surge in demand, some argue.

    “Despite the coronavirus outbreak, we are maintaining a delivery speed of half a day or one day at the latest. This is top class even on global standards,” said a source familiar with the e-commerce industry.

  • Muji parent Ryohin Keikaku caught million dollar tax dodge

    Muji parent Ryohin Keikaku caught million dollar tax dodge

    Muji store parent Ryohin Keikaku has been found to have dodged paying ¥7.5 billion (US$68.3 million) in tax by transferring taxable income to its operations in China, where it runs 256 outlets.

    The Japanese retailer has been ordered by the courts to pay the required taxes, which have accrued since 2017, as well as around ¥2.1 billion ($19.1 million) in penalties.

    In a statement, the firm said that although it holds a different view on the policy of double taxation, it has decided to pay the tax as assessed by the tax bureau.

    Ryohin Keikaku has appealed to the tax authority in Japan to deal with its Chinese counterparts to avoid double taxation in future.

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  • UBS Disperses Calming Drops

    UBS Disperses Calming Drops

    The world’s largest wealth manager sought to soothe investor nerves amid market turmoil sparked by the coronavirus pandemic.

    Swiss-based UBS said it had observed «little to no» disruption in service to wealthy clients as trading volumes surged amid a stock and bond market rout. Worries that the coronavirus pandemic’s effect on the global economy is overshadowing broad policy moves meant to counter the fallout.

    The remarks address a pandemic expected to wreak economic havoc: Deutsche Bank on Wednesday predicted a global recession, with the demand to plunge in China this quarter and in Europe and the U.S. next. Rating agency Moody’s noted that global investment banks’ solid liquidity allows them to manage rising drawdown demands.

    Private banks like UBS are seeing volume surge as investors shift their portfolios and hunt for liquidity to meet margin calls. We have seen little to no disruptions in service to our clients and have successfully managed very high volumes across our businesses, particularly in our trading operations, finance chief Kirt Gardner said on Wednesday.

    He underscored UBS’ conservative capital cushion, its ample liquidity and funding, and successful stress tests. «While previous economic growth projections are clearly no longer valid, it is too early to forecast the impact» – and it depends on official responses from health, monetary, and other authorities, he noted.

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  • Malaysia Lockdown Hits Singapore Lenders

    Malaysia Lockdown Hits Singapore Lenders

    Singapore banks could face further headwinds after Malaysia announced a nationwide lockdown that will last till the end of March.

    High connectivity to Malaysia is expected to weigh in for Singapore banks, most notably UOB and OCBC which source 11 and 14 percent of pre-tax profits from the country, respectively. The two had already flagged earlier that credit costs could rise 25-30 basis points based on assumptions that the outbreak lasts till mid-2020.

    At UOB, credit costs could jump 80 basis points if the outbreak extends beyond mid-2020, according to a report citing CFO Lee Wai Fai though he said that it is a «highly unlikely» possibility. At OCBC, CFO Darren Tan said that revenue growth would be «relatively muted» but added that strong capital ratios, funding and liquidity would help the lender stay resilient in this period.

    Although DBS said the impact from Malaysia’s lockdown would be limited due to a smaller presence in the market, it is still expected to feel the broader effects of the outbreak. DBS’s chief executive Piyush Gupta recently announced a modest 1-2 percent revenue reduction which its institutional banking head Tan Su Shan called a moving target.

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  • Luk Fook sales plummet by half in first two months of 2020

    Luk Fook sales plummet by half in first two months of 2020

    Hong Kong jeweler Luk Fook says its sales halved during the first two months of this year as the coronavirus outbreak caused an extensive lockdown of mainland Chinese cities and visitors to Hong Kong and Macau fell sharply.

    While most mainland stores have reopened this month, customer footfall of the shops operating in Mainland China, Hong Kong and Macau was “still sparse” said chairman and CEO Sheung Wong in a profit warning. “It is expected to take some time for the business to resume normal.

    “Therefore … there will be an acute drop in revenue for the period from January to March. It is therefore highly likely that certain losses will be incurred in the fourth quarter. It may lead to a substantial decline in the group’s revenue and profit for the financial year ending March 31.”

    With Macau stores closed for most of February, sales in the combined Hong Kong and Macau market decreased by more than 50 percent.

    “Economic activities in Mainland China were almost halted due to the outbreak,” said Wong. “In the first two months of this year, industry, consumption and investment all hit record low with the double-digit decline, crashing the macro-economy severely.”

    Group-wide, same-store sales of gold products and gem-set jewelry products in Luk Fook’s own stores were down by 45 percent and 54.9 percent, respectively. In Hong Kong and Macau overall sales were down by 52.8 percent, with gold products down by 47.3 percent and gem-set jewelry products by 58 percent.

    On the mainland, where shops were closed in February, same-store sales fell by 37.1 percent. Gold sales were down by 38.6 percent and gem-set jewelry sales by 31.8 percent.

    Retail sales through licensed shops and self-operated shops of the group in Mainland China fell by half.

    During the pandemic, the company has not replaced staff leaving of their own accord and introduced leave without pay to reduce staffing costs. It has also negotiated rent reductions with landlords.

    Expansion plan on track

    Despite the huge impact of the coronavirus on sales, Luk Fook remains committed to its expansion plan which Wong said “has not been seriously affected”.

    “It is estimated that the net shop additions for the current financial year would only be a bit less than the target of 300 shops. In addition, the group’s unaudited revenue and profit for the period for the nine months ended December 31 were about 60 percent and 55 percent respectively ahead of those for the year ended March 31, last year.”

    He said fourth-quarter operational data will be released in mid-April.

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  • WhatsApp, in collaboration with the World Health Organization

    WhatsApp, in collaboration with the World Health Organization

    As we all know, social media platforms have been filled with misinformation regarding the current public health situation, and tech giants are striving to bring the situation under control. Now, WhatsApp is also joining in in the efforts to protect the public from coronavirus-related fake news and posts.

    WhatsApp announced that it is opening an information hub, in partnership with the WHO, UNICEF and UNDP. The platform offers guidance, general information and tips in order to fight the spread of misleading rumors and panic over the situation. Additionally, it will also provide messaging hotlines, where people can text and most likely get guidance.

    What’s more, the company has stated that they will be donating $1 million to the Poynter Institute’s International Fact-Checking Network (IFCN) in order to fight against misleading posts concerning the COVID-19. The company is urging people to ensure they are reading trusted knowledge sources and if they are unsure about something, not to forward it to help limit the spread of misinformation.

    Additionally, the Fact-Checking Network will work on determining ways that misinformation spreads in WhatsApp and developing tools to detect and better moderate it, stated IFCN’s director, Baybars Orsek.

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  • Bookstore chain Popular exits Hong Kong, shuttering all 16 stores

    Bookstore chain Popular exits Hong Kong, shuttering all 16 stores

    Singapore-based bookstore-chain Popular has fallen victim to the coronavirus pandemic and shuttered all 16 stores in Hong Kong, effective immediately.

    However, Popular’s other non-retail businesses in publishing and distribution will continue to operate locally.

    The company was recently taken to court by Palliser Investments over unpaid rent for its Whampoa Gardens branch during the past two months, accumulating HK$520,000 in debt. As employees cleared out the stores, Popular’s Facebook and official website page has also been deactivated.

    A representative spoke to HK01 news explaining the group’s difficult decision: “The retail book industry in Hong Kong has been facing structural challenges in the market over the past decade. It has continued to deteriorate in the past 12 months, leading to a severe contraction in retail revenue”.

    The group will now divert its resources and focus on education publishing, e-learning and educational services instead of retailing, the spokesperson said.

    The bookstore-chain Popular Book Company will continue to operate in nine of its other international markets, including Singapore and Malaysia.

  • Samsung is looking into its own cloud service, likely to ditch its current provider

    Samsung is looking into its own cloud service, likely to ditch its current provider

    Samsung has decided upon self-reliance and is trying to substitute its cloud service provider. Samsung’s cloud currently relies 60% on Amazon Web Services, reports SamMobile, while the remaining 40% is outsourced to other providers. The cloud platform supports its smartphones, IoT devices and other products.

    Basically, Samsung is planning to first conduct several tests, bringing its cloud infrastructure to some of its departments in order to slowly limit its dependence on Amazon Web Services (AWS), and eventually stop using it altogether.

    So, why has Samsung decided to do this? First of all, of course, there are cost-related reasons. According to SamMobile, the company has been paying hundreds of millions of dollars every year for the service. Last year, more than $483 million, for Samsung Electronics alone, was paid to AWS. Additionally, as the number of users grows, the company has to pay even more for cloud computing solutions. If Samsung would rely on its own cloud, reportedly this could save a lot of money for the company.

    Secondly, there is the reason for security. The South-Korean-based firm wants to maintain its cloud by itself and thus ensure a secure environment, dependent on Samsung’s own efforts. However, it is not clear which organization will support Samsung’s cloud yet. It’s said that the company may choose Joyent, a cloud service that Samsung bought in 2016, as Amazon Web Services’ replacement.

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  • Samsung expects 5G demand to drive chip sales higher in 2020

    Samsung expects 5G demand to drive chip sales higher in 2020

    Thanks to the coronavirus, most of the world’s tech manufacturers are facing a situation that they’ve never had to deal with before. Navigating a global economy that has been turned upside down because of the disease, Samsung Chief Executive Kim Ki-nam cited the pandemic and the U.S.-China trade dispute for continued weakness in the global smartphone market. While Kim is negative on the outlook for smartphones this year, he is positive about the company’s chip business; he expects a rebound in 2020 after weak global demand and the U.S.-China trade war ate into Sammy’s chip business last year. The unit accounts for half of the company’s operating profit.

    Koh Dong-jin, president of Samsung’s mobile and network business, told the annual general meeting in Seoul that “The global smartphone market was expected to turn to growth this year, but with virus showing signs of being prolonged, the smartphone market is contracting. But 5G smartphone demand is expected to rise.” Samsung just released its first-half flagship phones and the early word is that sales of the Galaxy S20 line are well below the pace seen after the release of previous Galaxy S models.

    The coronavirus surely has a lot to do with that and while the Space Zoom feature with a 100x hybrid zoom sounds enticing, the $1,400 price tag on the Galaxy S20 Ultra 5G is quite daunting in a world where a small bottle of hand sanitizer now costs over $100-if you can find one. For global consumers with no idea whether they will still have a job a few weeks from now, making the purchase of an expensive new phone seems unnecessary when the mortgage is due and the children need to be fed.

    Still, Samsung’s consumer electronics chief Kim Hyun-suk said that it is too early to figure out how COVID-19 will affect the company’s consumer business. Kim said, “We had expected the consumer electronics market to rise slightly this year, but with the coronavirus fast-spreading, uncertainties are growing faster than ever, and it is very difficult to predict the future.”

    But then it comes to chips, Samsung feels positive about 2020, unlike rival chipmakers who have been chipping away at their sales forecast. Samsung sees strong demand for chips used in 5G wireless networks, data centers, and automobiles. While demand for chips will rise, supply will shrink according to Kim as foundries (including Samsung’s) move to 5nm chip production instead of increasing capacity. At 5nm, Samsung’s chips will carry 127 million transistors per square mm making them more powerful and energy-efficient than current chips made using the 7nm node.

    The report helped Samsung’s shares rise .6% earlier today against a broader market decline in South Korea of .5%. The number of people attending Samsung’s stockholders’ meeting dropped from 1,000 last year to 400 this year because of the coronavirus outbreak. Those showing up at the gathering were scanned with a thermal camera and had their temperature taken when they first arrived at the venue. They also were seated two seats away from each other to help prevent attendees from spreading the virus. The company also instituted electronic voting for the meeting and suggested that stockholders vote online.

    It has been a busy first quarter for Samsung with the release of the Galaxy Z Flip foldable phone and the launch of the Galaxy S20, Galaxy S20+ and Galaxy S20 Ultra 5G. Later this year, we should see Samsung release the Galaxy Fold 2, and the Galaxy Note 20. Last year Samsung remained the largest smartphone manufacturer in the world followed by Huawei and Apple.

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  • Citi Appoints Asia Chief Operating Officer

    Citi Appoints Asia Chief Operating Officer

    The senior executive takes on a new role, according to an internal memo shared after two decades with Citi’s equities and markets unit.

    Citi has appointed Andrea Fletcher as its chief operating officer for Asia.

    In the newly created role based in Hong Kong, Fletcher will help drive Citi’s efforts to grow the regional franchise. She will also join the Asia Operating Committee, the announcement said.

    The COO appointment follows the confirmation of Citi’s new chief for the region, Peter Babej, after the regional helm was held for six months by interim head Tim Monger, who will resume his sole chief financial officer role.

    According to her LinkedIn profile, Fletcher joined Citi in 1999 as director of equity and research sales, based in Sydney. Her 20-year career at the bank is split almost equally between Australia and Hong Kong, with her most recent role being managing director and global head of client strategy, equities and prime finance.

    She helped establish the Citi Women’s Network in Hong Kong and Australia, while also playing an active role in Citi’s diversity, recruiting, mentoring and leadership development efforts both internally and externally with the bank’s clients.

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  • Robinsons may quit one Kuala Lumpur site

    Robinsons may quit one Kuala Lumpur site

    Singaporean department-store chain Robinsons may close one of its locations in Kuala Lumpur before its lease expires due to lackluster performance.

    The store launched a four-story 20,000sqft space in The Shoppes in Four Seasons Place less than two years ago, which has failed to live up to the firm’s expectations in terms of footfall. Its other outlet in the city has been operating since 2007.

    Robinsons has reportedly approached other department store operators in the territory to take over the space, including Parkson – which vacated its longstanding space in the neighboring Suria KLCC mall just last year.

    According to a report in The Edge, discussions between tenant and landlord are ongoing to determine the firm’s exact date of departure, which is likely to be in the third quarter this year. Robinson’s has filed widening financial losses in recent years.

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  • Tencent costs surge as competition Bytes

    Tencent costs surge as competition Bytes

    Soaring costs saw Tencent Holdings report a net income of US$13 billion for last year, after a slow fourth quarter, which concerned analysts given the subsequent impact of the coronavirus crisis since January.

    Costs rose 20 percent last year as the social media and digital company spent money buying new content and securing new users to its WeChat and other platforms to protect itself from fast-growing rival ByteDance, parent of TikTok.

    Group revenue topped US$53.3 billion for the year but its cost of sales reached $29.7 billion.

    Tencent said its online gaming revenue grew by 25 percent, the fastest rate since the first quarter of 2018 and sales of smartphone games soared 37 percent.

    The company said more gamers signed up to its services in January as the coronavirus crisis forced people to stay home, with schools, universities and workplaces closed for an extended period.

    Net fourth-quarter income was $3.1 billion.

  • Malaysian retail expected to contract

    Malaysian retail expected to contract

    Retail Group Malaysia (RGM) predicts Malaysian retail sales will contract by 3.9 percent year-on-year in the first quarter of this year.

    The estimate is based on footfall having halved during the coronavirus outbreak, contradicting RGM’s expectation earlier this year that Malaysian retail sales could rise by 0.4 percent.

    “In the event, the global coronavirus outbreak and domestic political turmoil take more than the next few months to resolve, it will further affect the retail consumption pattern in Malaysia drastically,” said Tan Hai Hsin, MD at RGM.

    He said it was unable to estimate the likely retail industry growth figure for this year while preparing the report because of the unpredictable changes of the coronavirus outbreak and the new ruling government policies.

    Although shopping traffic has dropped significantly in the country, some shopping malls have remained open to the public to provide essential goods and services.

    Aeon Mall’s tenants, including pharmacies, banks and POS Malaysia, will continue to operate, however, food & beverage tenants will only provide takeaway and delivery services. Aeon Retail’s outlets will also provide dedicated check-out lanes for senior citizens, the disabled and pregnant women to ensure that they can shop for their daily needs in “a safe and worry-free environment”, the company said in a statement.

    Meanwhile, 1 Utama Shopping Centre said on its social media that its essential service tenants such as supermarkets, pharmacies or convenience stores will remain open, and reassured consumers that there is no need to start panic shopping.

    In the final quarter of last year, Malaysia’s retail sales increased 3.8 percent year on year with the best growth in the pharmacy and personal care categories. The worst-performing sector was supermarkets and hypermarkets which witnessed a 2.8-per-cent full-year decline.

  • McDonald’s UK to scrap plastic Happy Meal toys

    McDonald’s UK to scrap plastic Happy Meal toys

    McDonald’s UK is ditching its plastic Happy Meal toys in favor of more sustainably produced alternatives in its stores.

    In a move to reduce the firm’s plastic waste by more than 3000 tons, from May onwards the firm will phase out the playthings it provides with its children’s meals and instead offer books, stuffed items or paper-based toys.

    Simultaneously, the restaurant chain will be collecting plastic toys back in its UK and Ireland restaurants to be recycled into play equipment for its children’s charities.

    McDonald’s UK has already been providing books as an option with its Happy Meals for several years under its Happy Reader program.

    “We care passionately about the environment and are committed to reducing plastic across our business,” said McDonald’s UK marketing chief Gareth Helm.

    “Families have high expectations of us and we’re working as hard as we can to give them the confidence that their Happy Meal is as sustainable as possible.”

  • Giant Japanese sports store Alpen to open next month

    Giant Japanese sports store Alpen to open next month

    Japanese sports and outdoor goods retailer Alpen Co is set to launch Kanagawa’s first experience-based store late next month.

    The Alpen Outdoors LaLaport Yokohama store will handle more than 40,000 predominantly outdoor-related products under 200 brands. Alpen’s new location will be offering products in two formats, “Alpen Outdoors”, which will cover the entire light outdoor product range for activities such as camping and hiking; and “Alpen Mountains”, which focuses more on mountaineering. The store offers a tent trial experience with a realistic camp atmosphere.

    Popular outdoor brands Coleman and Snow Peak have shops-in-shops at the store with dedicated support staff.

    Alpen currently operates 11 stores nationwide, including a flagship in Kashiwa, which opened in April last year and is one of the largest in the world.

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