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Tag: Business

  • Japanese Retail Titan Aeon Sells Thai Supermarket Business to Central Group, Sets Sights on Southeast Asia Growth

    Japanese Retail Titan Aeon Sells Thai Supermarket Business to Central Group, Sets Sights on Southeast Asia Growth

    Japanese retail behemoth Aeon is withdrawing from the supermarket industry in Thailand, divesting its local enterprise to Central Group. This is a strategic shift in investment focus towards rapidly expanding markets across Southeast Asia.

    Transition of Supermarket Shares

    Aeon will transfer complete ownership of Aeon (Thailand) to Central Food Retail, the managing company behind the renowned Tops supermarket chain. The transfer of shares will take place on September 30. Aeon is known for operating approximately 30 supermarkets in Thailand under the umbrella of MaxValu and MaxValu Tanjai. The retail corporation made its mark in the Thai market in 1984 and by 2016, had managed to successfully launch around 80 stores.

    Both MaxValu and MaxValu Tanjai cater to daily shopping needs, but vary in size. The larger MaxValu stores, typically spanning an area of 1000-3000 square meters, provide a wider selection of groceries and household goods. On the other hand, MaxValu Tanjai, a term that roughly translates to ‘instantly’ in Thai, operates in a smaller, more compact format of 300-800 square meters. These stores are primarily focused on providing a convenient and speedy neighbourhood shopping experience.

    A Shift in Growth Strategy

    The sale of Aeon’s supermarket holdings is part of a broader business strategy. This move aims to enhance capital efficiency and redirect investment towards markets with greater growth potential. Vietnam has emerged as a significant player in this strategic shift. As of May last year, Aeon revealed its plans to augment its Vietnamese network by an impressive eight-fold by 2030. The company aims to introduce 100 general merchandise stores and large-format “super-supermarkets”, along with 200 smaller grocery stores.

    Questions & Answers

    What is Aeon’s new business strategy?
    Aeon’s new business strategy involves enhancing capital efficiency and redirecting investment towards rapidly growing Southeast Asian markets, particularly Vietnam.

    How many supermarkets did Aeon operate in Thailand?
    Aeon operated around 30 supermarkets in Thailand under the MaxValu and MaxValu Tanjai brands.

    What is the difference between MaxValu and MaxValu Tanjai stores?
    MaxValu stores are larger, spanning 1000-3000 square meters, and offer a wider range of products. However, MaxValu Tanjai stores are smaller, occupying 300-800 square meters, and focus on providing a quick and convenient shopping experience to the neighbourhood.

  • Record-Breaking 5-Year High: Q2 Layoffs Surge in Singapore Amid Business Restructuring

    Record-Breaking 5-Year High: Q2 Layoffs Surge in Singapore Amid Business Restructuring

    Between April and June of this year, Singapore experienced a significant wave of layoffs, with approximately 4,500 workers losing their jobs. This figure represents the highest rate of retrenchment in over five years, showing a 17% increase from the prior quarter. The last time layoffs had reached this level was during the final quarter of 2020 when 5,640 workers were let go.

    The Underlying Reasons

    The spike in retrenchment occurred mainly within sectors focused on international operations, such as information and communications and manufacturing. This trend largely resulted from business restructuring processes. Companies within these sectors are particularly susceptible to various factors impacting their operations, including geopolitical tensions, shifts in trade policies, and fluctuations within the global economy. Their dependence on external demand makes them vulnerable and forces them to continuously reassess their operational models, leading to restructuring and rationalization of their workforce.

    Despite the surge in layoffs, it is important to note that the numbers are still lower than those recorded during the global financial crisis in 2009 and the Covid-19 pandemic. Furthermore, Singapore’s broader labor market has shown resilience during this period. Overall employment grew by 10,700, and the unemployment rate remained at a steady 2%.

    Economic Performance and Projections

    Singapore’s economy expanded by 5.7% year-on-year during the same quarter, a rate slightly slower than the preceding three months but exceeding the government’s full-year forecast. This positive economic performance has led several economists to revise their 2026 growth projections upwards.

    With regard to labor market projections, there was a marked improvement in June. Approximately 43.9% of businesses surveyed indicated plans to increase their workforce in the following three months, an increase from 40.6% in May. Additionally, around 29.3% of firms expected to raise wages during the same period, up from 23.7%. The expectation to lay off staff fell to 2.7% from the previous 3.2%.

    Although these indicators demonstrate the resilience of labor demand, expectations remain below the levels seen before the energy shock triggered by the Middle East conflict. This suggests that businesses are likely to adopt a cautious approach to hiring and wage decisions in the near future.

    Questions & Answers

    What sectors were most affected by the wave of layoffs?
    Primarily, the wave of layoffs occurred within sectors focused on international operations such as information, communications, and manufacturing, largely a result of business restructuring processes.

    What factors make these sectors particularly vulnerable?
    These sectors are particularly susceptible to various factors, including geopolitical tensions, shifts in trade policies, and fluctuations within the global economy. Their reliance on external demand often forces them to reassess their operational models.

    How has the broader labor market in Singapore responded to these changes?
    Despite the surge in layoffs, Singapore’s broader labor market has shown resilience. Overall employment grew, and the unemployment rate remained stable. However, projections indicate that businesses may adopt a cautious approach to hiring and wage decisions in the near future.

  • DFI Retail Triumphs: H1 Profits Leap by 44% Amid Sales Surge in All Business Sectors

    DFI Retail Triumphs: H1 Profits Leap by 44% Amid Sales Surge in All Business Sectors

    DFI Retail Group has announced a substantial surge in profits for the first half of the year, with all its subsidiaries showing positive sales growth for the period. The company’s underlying profit from ongoing operations leapt by 44 per cent, reaching an impressive US$117 million for the six months ending in June.

    Rising Sales Across Segments

    In terms of like-for-like (LFL) sales, the company saw a 3 per cent improvement. This was driven by the robust performance of the health and beauty sector and a return to growth for the convenience and home furnishings segments. Health and beauty witnessed a 6 per cent increase in LFL sales, with Mannings in Hong Kong contributing a 5 per cent growth. This was fuelled by an expanded basket size and a boost in visitor numbers. Guardian in Southeast Asia posted a strong growth of 9 per cent, with Indonesia and Vietnam experiencing close to a 20 per cent enhancement.

    The company’s convenience segment, responsible for 7-Eleven stores in Hong Kong, Macao, Singapore and South China, saw a 2 per cent rise in LFL sales. The home furnishings division, which operates Ikea stores in Hong Kong, Macau, Taiwan and Indonesia, reported a 4 per cent LFL sales hike, a considerable improvement from last year’s 6 per cent decline. The food division, managing supermarket and grocery chains in East and Southeast Asia, noted a modest 0.5 per cent uplift in LFL sales.

    Affirming the Company’s Strategy

    DFI’s CEO, Scott Price, attributed the first-half results to the effectiveness of the company’s strategy, which is defined by its customer-centricity, focus on returns and principled execution. He stated, “As we continue to deepen customer engagement and build new profit pools through the DFI Omni Platform, we are well-positioned to deliver sustainable long-term value with greater earnings resilience.”

    DFI recently made news with its acquisition of Cody Hong Kong, an outdoor advertising solution provider, to the tune of approximately $3.8 million. This move is in line with DFI’s strategy to create an all-encompassing advertising solution in Hong Kong via DFIQ Media.

    DFI has also made some changes to its leadership team this month, appointing Andrew Wong as the CEO of DFI Ikea, Curtis Liu as CEO of health and beauty, Tom van der Lee as CEO of Food, and Kaizhi Wu as group CFO.

    DFI has revised its full-year outlook, projecting organic revenue growth of 3-4 per cent and an underlying profit of between $285 and $305 million. Despite a higher oil price forecast for the rest of the year, the group anticipates stronger profitability backed by improved operational efficiency.

    Questions & Answers

    What is the expected organic revenue growth for DFI Retail Group?
    DFI anticipates an organic revenue growth of 3-4 per cent.

    Who was recently appointed as the CEO of DFI Ikea?
    Andrew Wong was recently appointed as the CEO of DFI Ikea.

    What led to the strong performance of DFI’s health and beauty sector?
    The strong performance of DFI’s health and beauty sector was driven by an expanded basket size and a boost in visitor numbers in Hong Kong, and significant growth in Southeast Asia.

  • FedEx Smooths APAC Business Compliance with New US Product Safety E-file Requirements

    FedEx Smooths APAC Business Compliance with New US Product Safety E-file Requirements

    FedEx Corporation, a major global express transportation company, is intensifying its support for businesses in the Asia Pacific (APAC) as they gear up for the forthcoming compulsory U.S. Consumer Product Safety Commission (CPSC) e-filing requirements, which are scheduled to become effective on July 8, 2026.

    The incoming requirement stipulates that all U.S. importers of CPSC-regulated products must e-file the necessary data elements for clearance when the goods enter the United States. This is designed to enhance safety supervision and improve compliance transparency. U.S. importers of CPSC-regulated products are required to include the complete CPSC PGA message set for each product imported. To make the process more efficient, importers have the option to pre-file product information in CPSC’s Product Registry, which allows them to send a condensed CPSC message set. This signifies a noteworthy change for APAC exporters, as this product information will now be made available before shipment.

    Awareness Versus Readiness

    While overall awareness of the mandatory CPSC e-filing is on the rise, operational readiness remains limited. Almost two-thirds (64%) of APAC businesses exporting consumer products to the U.S. are not yet prepared, with 28% understanding the requirements but yet to act, and 18% anticipating significant disruptions to U.S.-bound shipments. Only 15% of businesses are currently fully operational. Those businesses that have not yet addressed product safety data requirements, electronic documentation standards, and certificate referencing may face clearance delays, penalties, or denial of entry at U.S. borders.

    Businesses need clarity on identifying products within the CPSC scope which is the primary need (32%), followed by digital tools for pre-validating data (23%) and simplified guidance on scope, registration, and documentation (19%). In preparation for the new requirements, businesses are looking for solutions that minimize clearance delays and integrate compliance into their operations.

    The Role of FedEx

    Salil Chari, President, Asia Pacific, FedEx, noted that changes of this scale can introduce complexity for businesses operating across borders. His focus is on making compliance effortless for customers, so they can continue moving goods seamlessly while confidently meeting new standards.

    FedEx is assisting customers in navigating this transition more confidently through integrated digital solutions, regulatory guidance, and operational expertise. By simplifying compliance processes and integrating requirements into existing shipping workflows, FedEx aims to reduce disruptions while supporting timely, accurate submissions.

    Questions & Answers

    What is the new requirement set by the U.S. Consumer Product Safety Commission (CPSC)?
    The new requirement mandates all U.S. importers of CPSC-regulated products to e-file the needed data elements for clearance at the time of entry into the United States.

    What are the top needs of APAC businesses in relation to these new requirements?
    The primary need is clarity on identifying products within the CPSC scope, followed by digital tools for pre-validating data and simplified guidance on scope, registration, and documentation.

    What is FedEx doing to help businesses navigate these changes?
    FedEx is enabling customers to manage this transition more confidently through integrated digital solutions, regulatory guidance, and operational expertise.

  • Nestlé Partners with Platinum Equity: Spins off Premium Water Business into Multibillion-Dollar Joint Venture

    Nestlé Partners with Platinum Equity: Spins off Premium Water Business into Multibillion-Dollar Joint Venture

    Nestlé has revealed plans for a significant reorganization of its worldwide water division through a new collaborative endeavor with the private equity company, Platinum Equity. This move will see both Nestlé’s water and premium beverage businesses incorporated into a new autonomous company named Peranel. The 50:50 partnership with Platinum Equity will oversee this process.

    Peranel is set to manage an assortment of high-end brands, including Perrier, S Pellegrino, Acqua Panna, Maison Perrier, Buxton, and La Vie, across more than 120 countries globally.

    Financial Aspects and Benefits of the Partnership

    From this arrangement, Nestlé is projected to receive around €3 billion (US$3.4 billion) in cash while still holding a 50% stake in the newly formed business. Nestlé has communicated that this partnership will offer increased strategic focus and operational flexibility for the water division, allowing the company to redirect its attention towards its primary growth categories.

    Emphasizing the benefits of this partnership, Nestlé’s CEO, Philipp Navratil, stated that, “By partnering with Platinum Equity, Peranel will be better positioned to execute its strategy with enhanced agility. With added focus, it will be better equipped to drive its long-term growth ambitions by bolstering this unique portfolio of international and local brands, through continued investment in innovation, premiumization, operational excellence, and sustainability.”

    The new company, Peranel, will be under the leadership of the current CEO of Nestlé’s waters and premium beverages, Muriel Lienau, along with a team of seasoned management personnel. The transaction, which assigns an enterprise value of $5.6 billion to Peranel, is anticipated to be finalized in the first half of the ensuing year.

    Steady Growth and Future Outlook

    Nestlé’s announcement of this restructuring aligns with the multinational FMCG company’s release of its first-half results. The company reported sales of CHF43.1 billion (approximately US$ 52.76 billion) for the six months ending June 30, with an organic growth of 3.7%. This growth was supported by 1.8% real internal growth and 1.9% pricing. The coffee and confectionery sectors continued to perform exceptionally well, while pet care sustained its positive momentum.

    Nestlé’s CEO, Philipp Navratil, commented on the company’s performance stating, “Emerging markets growth accelerated, and we delivered solid performance in developed markets. We are increasing and prioritizing our investment behind our leading brands and growth platforms, sharpening our portfolio focus and driving further efficiencies to reinvest. While the external environment remains uncertain, we are taking actions to accelerate consistent growth.”

    Navratil also confirmed the company’s full-year guidance, with an expectation of achieving organic sales growth of between 3 and 4 percent.

    Questions & Answers

    What is the purpose of creating the new company, Peranel?
    The formation of Peranel will allow Nestlé’s waters and premium beverages business to execute its strategy with greater agility and focus.

    Who will be leading the new company, Peranel?
    Peranel will be led by Muriel Lienau, the current CEO of Nestlé’s waters and premium beverages, and a team of seasoned management personnel.

    What are Nestlé’s growth expectations for the year?
    Nestlé expects organic sales growth of between 3 and 4 percent for the year.

  • Vietnam’s Economic Surge: Standard Chartered Uplifts 2026 GDP Growth Forecast to 9.5%

    Vietnam’s Economic Surge: Standard Chartered Uplifts 2026 GDP Growth Forecast to 9.5%

    Standard Chartered has increased its projection for Vietnam’s economic growth in 2026 to 9.5%, a considerable increase from its previous estimate of 7.2%. This revision comes on the heels of Vietnam’s robust economic performance in the first half of the year, with key growth sectors showing continuing momentum. Moreover, the bank expects this positive trend to extend into 2027, anticipating a GDP growth of 11%. This revision signifies one of the most substantial forecast upgrades the bank has made for Vietnam in recent times.

    Forecast Adjustments and Economic Stability

    In tandem with this increased growth projection, Standard Chartered has decreased its inflation forecast for 2026 and 2027 to 4.4% and 3.3% respectively. This reduction comes as the bank predicts a further easing of price pressures. Consequently, the State Bank of Vietnam is expected to keep its policy rates unchanged, maintaining a balance between supporting economic growth and ensuring macroeconomic stability.

    According to Tim Leelahaphan, Senior Economist for Vietnam and Thailand at Standard Chartered, Vietnam has shown significant resilience and adaptability during the first half of 2026. Growth has exceeded expectations, largely due to the robust recovery of the manufacturing-processing industry, services, and investment sectors, as well as the beneficial impact of pro-growth policy measures.

    Outlook for the Future

    Despite existing global economic uncertainties and inflationary risks, Vietnam is stepping into the second half of the year with a solid foundation. Continuous domestic demand, persistent investment in infrastructure, enhanced production capacity, and ongoing economic restructuring are expected to cultivate a balanced and sustainable growth model. These factors are predicted to support the nation’s long-term development goals.

    With its revised 9.5% growth projection for 2026, Standard Chartered stands as one of the most optimistic international institutions regarding Vietnam’s economic future. Other international financial institutions have also echoed this upbeat outlook. This growing confidence in the resilience and prospects of the Vietnamese economy emphasizes the positive direction the country is headed in, despite varying forecasts. The principal factors supporting this economic expansion include recovering domestic demand, sustained investment inflows, pro-growth policies, and accelerated infrastructure development. However, external uncertainties still necessitate careful monitoring to ensure sustainable growth.

    Questions & Answers

    What is Standard Chartered’s revised economic growth projection for Vietnam in 2026?
    The bank has revised its growth projection to 9.5%, up from its previous forecast of 7.2%.

    What factors have contributed to Vietnam’s positive economic performance in the first half of 2026?
    The robust recovery of the manufacturing-processing industry, services, and investment sectors, along with the positive impact of pro-growth policy measures, have contributed to this positive performance.

    What are the main drivers expected to support the Vietnamese economy’s expansion in the coming years?
    Factors such as recovering domestic demand, sustained investment inflows, pro-growth policies, and accelerated infrastructure development are expected to remain the principal drivers supporting the country’s economic expansion.

  • Saxo Bolsters APAC Growth Strategy with New Institutional Business Head

    Saxo Bolsters APAC Growth Strategy with New Institutional Business Head

    Saxo, a leading digital broker, has named Gift Muthita Anankaphannan as their new Regional Head of Institutional Business for Asia-Pacific, in a move to strengthen their foothold in a prime market. Anankaphannan will be based in Singapore, and her role will involve leading the institutional business throughout the Asia-Pacific region while partnering with clients to enhance the offerings of Saxo.

    Anankaphannan’s Wealth of Experience

    Anankaphannan has an impressive career history, having previously served as a Senior Relationship Manager at Saxo. She brings over 16 years of experience spanning both the technology and institutional financial services sectors.

    Before her tenure at Saxo, she spent over a decade at Google, holding senior positions in sales, product strategy, and go-to-market execution, with her work encompassing AI-powered solutions. Anankaphannan kick-started her career in financial services at Bloomberg, where she specialized in equities and equity derivatives. Here, she provided data-driven insights to traders, analysts, and portfolio managers.

    Mahesh Sethuraman, the CEO of Saxo Singapore, praised Anankaphannan’s extensive experience with institutional partners and her deep understanding of Saxo’s FinTech DNA. He cited her excellent ability to foster long-term client relationships and lead high-performance teams.

    Saxo’s Institutional Business Growth

    Institutional clients make up a significant portion of Saxo’s international business, contributing to nearly one-third of the group’s overall income. Over the past year, the number of global institutional end-clients witnessed a 23 percent growth.

    Saxo recently collaborated with Singapore’s Trust Bank to roll out TrustInvest, a unique in-app investment tool that enables users to directly trade US stocks and exchange-traded funds (ETFs) via the Trust Bank app, with investments starting from a minimum of $10.

    Anankaphannan’s main role will be to steer the next stage of Saxo’s institutional growth in the Asia-Pacific. She stated that the region remains a crucial growth market for Saxo, and the company is dedicated to further scaling their institutional offering in the region.

    Questions & Answers

    What is Gift Muthita Anankaphannan’s new role in Saxo?
    She is the new Regional Head of Institutional Business for Asia-Pacific at Saxo.

    What is Anankaphannan’s professional background?
    She has over 16 years of experience in the technology and institutional financial services sectors, having previously worked at companies like Google and Bloomberg.

    What efforts is Saxo making to grow their institutional business?
    Saxo is focusing on enhancing their offerings and has recently launched an in-app investment tool called TrustInvest in collaboration with Trust Bank.

  • OCBC Joins Forces with Major Business Chambers to Boost China-ASEAN Trade

    OCBC Joins Forces with Major Business Chambers to Boost China-ASEAN Trade

    OCBC, Singapore’s second-largest bank, is amplifying its efforts to harness the expanding economic ties between Greater China and Southeast Asia. This new endeavor sees the bank forming a strategic partnership with two prominent business chambers, the Singapore Chinese Chamber of Commerce & Industry (SCCCI) and the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME). This partnership aligns with OCBC’s recently announced corporate strategy, The Next Frontier. A crucial element of this strategy is the ‘Asia Shift’, which aims to boost trade and investment flows between ASEAN and Greater China.

    Riding the Intra-Asia Growth Trend

    OCBC’s strategic alliance combines the bank’s regional banking prowess with the expansive network of the CCCME, which involves more than 10,000 Chinese enterprises, and the SCCCI’s robust business connections across Southeast Asia.

    This initiative is in response to the continued expansion of Chinese companies into ASEAN markets. As per OCBC’s data, there was a 50 percent increase in 2025 in the number of new Chinese businesses the bank assisted in setting up operations in Southeast Asia. This significant rise follows a 30 percent growth in the preceding year.

    The cooperation agreement stipulates the support of small to mid-sized enterprises and corporations seeking cross-border trade and investment opportunities in both regions.

    Focus on Strategic Sectors

    The collaboration will be focused on industries predicted to fuel future growth. These include green technologies, sustainable development, digitalization, and advanced manufacturing. Additionally, the partners aim to reinforce trade and financing ecosystems that stimulate cross-border business activities.

    To manage this initiative, a joint coordination group will be set up. This group will be tasked with tracking progress and ensuring the successful execution of plans.

    Roy Tan, Head of Enterprise Banking International at OCBC, shared that Chinese enterprises have quickened their globalization pace in recent years, which necessitates robust on-the-ground assistance when penetrating new markets. The partnership will enable the bank to merge financing solutions with business matching and market-entry support. Tan believes this will enhance the efficiency of Chinese companies venturing into ASEAN while generating opportunities for businesses on both fronts.

    Singapore is positioning itself as a primary gateway for Chinese companies seeking expansion into Southeast Asia. This strategic move also aims to allow local businesses to take advantage of the escalating intra-Asian trade and investment flows.

    Questions & Answers

    What is the main goal of OCBC’s new partnership with SCCCI and CCCME?
    The partnership aims to capitalize on the growing economic ties between Greater China and Southeast Asia by supporting small to mid-sized enterprises and corporations seeking cross-border trade and investment opportunities.

    Which sectors will the collaboration focus on?
    The collaboration will focus on sectors expected to drive future growth, including green technologies, sustainable development, digitalization, and advanced manufacturing.

    How does this partnership align with Singapore’s position in the global market?
    The partnership aligns with Singapore’s efforts to fortify its role as a gateway for Chinese companies looking to expand into the ASEAN region, and to benefit local businesses from growing intra-Asian trade and investment flows.

  • Alibaba Ramps Up AI Investment Despite Income Dip, Foresees Cloud Business Boom

    Alibaba Ramps Up AI Investment Despite Income Dip, Foresees Cloud Business Boom

    Alibaba, the Chinese tech behemoth, has announced that its projected artificial intelligence (AI) investment over the next triennium will surpass the initial estimation of 380 billion yuan (US$55.96 billion). This decision has been driven by promising preliminary returns on AI investments, which has encouraged the company to further bolster its cloud-computing capacity.

    Despite falling short of the market’s projected profit for the fourth quarter, Alibaba’s US-listed shares experienced a 7 per cent surge. This was in response to the company’s confident forecast for returns on AI spending in the next three to five years. Alibaba’s revenue from the Cloud Intelligence Group, in response to the burgeoning business demand for AI, grew by 38 per cent to 41.63 billion yuan ($6.13 billion) over the past year. While this growth is consistent with estimations, it does mark an increase from the preceding quarter’s 36 per cent growth.

    Investments and Future Plans

    The company’s CEO, Eddie Wu, on a post-earnings call, shared that their investments in AI, the Cloud, and e-commerce sectors were yielding clear returns. He emphasised that these technological investments were beginning to bear fruit commercially. However, Wu refrained from outlining a new spending target to replace the one that was announced in the early parts of last year.

    The company is also aiming to maintain a growth rate that surpasses the market average in an effort to secure a larger market share and further consolidate its market leadership. Wu was clear that these were the primary objectives, with profit margins currently taking the backseat. The company’s profit in the quarter to March was impacted by investments in AI and cloud infrastructure, as well as continuous spending in the quick commerce segment, which includes deliveries made within 60 minutes.

    AI demand and Alibaba’s Response

    Alibaba disclosed that AI-related products contributed to 30 per cent of external customer revenue in the cloud division in the quarter. The company anticipates AI-related revenue to become the main growth engine in the cloud business and contribute more than 50 per cent of revenues in about a year’s time.

    The company has earlier this year bifurcated its AI businesses from its cloud computing arm. Wu has been tasked with leading the “Alibaba Token Hub” group, as the company is keen on making its AI segment profitable.

    Alibaba’s net income for the quarter decreased by 99.7 per cent, with total revenue clocking in at 243.38 billion yuan. Yet, the company’s China e-commerce business, which includes the highly competitive quick commerce segment, reported a revenue of 122.22 billion yuan ($18 billion), surpassing the estimated figure of 119.85 billion yuan.

    Questions & Answers

    What is Alibaba’s outlook for AI spending in the next three to five years?
    Alibaba has a positive outlook for returns on AI spending in the coming years, which is why they are planning to increase their investment in this sector.

    What was the growth in the revenue from Alibaba’s Cloud Intelligence Group over the last year?
    The revenue from Alibaba’s Cloud Intelligence Group grew by 38 per cent to 41.63 billion yuan ($6.13 billion) over the past year.

    What are Alibaba’s plans for the AI segment of their business?
    Alibaba expects AI-related revenue to become the main growth driver in the cloud business, contributing more than 50 per cent of revenues in about a year. The company also plans to make its AI segment profitable.

  • Unilever Courts McCormick for Potential Mega-Deal: A $33 Billion Foods Business at Stake

    Unilever Courts McCormick for Potential Mega-Deal: A $33 Billion Foods Business at Stake

    Unilever, a multinational consumer goods corporation, has confirmed that it is in discussions with McCormick & Company regarding the potential sale of its food division. The company has made this admission in response to ongoing rumours about the possible transaction, but has also made it clear that the completion of the deal is not guaranteed.

    Value of Unilever’s Food Business

    Unilever’s food business, which comprises around a quarter of the corporation’s annual revenue, is considered to be a very appealing acquisition. Brands like Hellmann’s, Colman’s, and Knorr form its diverse portfolio. If McCormick & Company were to acquire this business, it would represent the most costly purchase in their 137-year history.

    The food business is seen as a robust entity with a strong financial profile. The company’s management is confident about the future prospects of the food division, citing the presence of several market-leading brands in burgeoning categories as significant strengths.

    Unilever’s Future Growth Priorities

    In the company’s 2025 financial results report, Fernando Fernandez, the newly appointed CEO of Unilever, outlined the corporation’s objectives. Under his leadership, Unilever plans to build a future-oriented brand portfolio that focuses on beauty, wellbeing, and personal care. Premium segments and digital commerce will be the areas of priority. The company aims to root its growth in the US and India markets.

    Bloomberg has estimated the value of Unilever’s Food Business to be around $33 billion, which is more than double the market cap of McCormick, which stands at $14.5 billion.

    Questions & Answers

    What is the estimated value of Unilever’s Food Business?
    The estimated value of Unilever’s Food Business is $33 billion, according to Bloomberg.

    What brands are part of Unilever’s Food Business?
    Unilever’s Food Business includes brands such as Hellmann’s, Colman’s, and Knorr.

    What are Unilever’s growth priorities as set out by its new CEO?
    Unilever’s new CEO, Fernando Fernandez, has identified the development of a future-oriented brand portfolio focusing on beauty, wellbeing, and personal care as a major priority. The company also plans to prioritize premium segments, digital commerce, and growth in the US and India markets.

  • Misto Holdings Boosts Q4 Sales Amid US Business Restructuring: Fila & Acushnet Show Strong Performances

    Misto Holdings Boosts Q4 Sales Amid US Business Restructuring: Fila & Acushnet Show Strong Performances

    In the fourth quarter, Misto Holdings, the parent company of Fila, Titleist and FootJoy, announced an increase in sales growth following a restructuring of its U.S. operations. The firm, based in South Korea, saw a 6.3% year-on-year boost in revenue during this period, reaching KRW915.2 billion (US$612 million). This follows a 3.7% uplift in sales reported in the third quarter.

    Company executives attribute this growth to a combination of factors, despite the prevailing macroeconomic uncertainty. These include a focus on profitability-driven operations, the positive outcomes of restructuring, and robust performance from Acushnet.

    Segment Performance

    Revenue from the Misto segment, which includes Fila and other lifestyle brands, fell by 9.6%. This decrease was primarily due to restructuring and inventory clearance in the U.S. market. However, operating profit improved significantly, reaching KRW74.7 billion, marking a notable recovery from the previous year.

    The Greater China market has emerged as a new area of growth for the company, driven by the expansion of prominent K-fashion brands. In South Korea, demand for Fila’s footwear franchise models remained stable.

    The Acushnet segment reported a sales growth of 10.9%, bolstered by strong sales of golf equipment, such as Titleist T-Series irons and SM10 wedges. Additionally, higher average selling prices for FootJoy golf shoes contributed to this growth.

    Yearly Overview

    For the entirety of FY25, the company’s consolidated revenue grew by 4.7% to reach KRW4.47 trillion. Operating profit surged by 31.6% to KRW 474.8 billion.

    Ho Yeon (Aaron) Lee, CFO of Misto Holdings, reflected on the past year, saying it was a significant period that saw the company reinforce its identity as a global brand portfolio company following a corporate name change.

    He noted that the expansion of the Greater China business, improved profitability in the Misto segment, and solid growth in Acushnet have all contributed to the stability of the company’s earnings.

    Questions & Answers

    What factors led to the growth of Misto Holdings in the fourth quarter?
    The growth was attributed to profitability-focused operations, the restructuring of the U.S. operations, and strong performance from Acushnet.

    How has the Misto segment performed amidst the company’s restructuring?
    Despite a decrease in revenue by 9.6% due to restructuring and inventory clearance, the Misto segment saw an improvement in operating profit, marking a significant turnaround.

    What contributed to the sales growth of the Acushnet segment?
    Increased sales of golf equipment, particularly Titleist T-Series irons and SM10 wedges, along with higher average selling prices for FootJoy golf shoes, supported the 10.9% growth in the Acushnet segment.

  • APAC SMEs Prioritize Sustainability: FedEx Study Reveals Green Business Imperative in Supply Chain

    APAC SMEs Prioritize Sustainability: FedEx Study Reveals Green Business Imperative in Supply Chain

    FedEx, a leading global express transportation company, has recently disclosed significant insights from its Asia Pacific (APAC) research. The study examines consumer and business perspectives on sustainability and international trade, spotlighting key areas of interest for businesses throughout the region.

    APAC Businesses Show High Environmental Awareness

    The study reveals that majority (80%) of the region’s small and medium-sized enterprises (SMEs) take into account environmental issues when carrying out trade activities with Europe. This showcases how sustainability is progressively playing a more significant role in logistics-based decisions. SMEs from Southeast Asian markets, including over 55% of those in Malaysia and Indonesia, are at the forefront of this trend, with a keen focus on sustainable supply chain alternatives. This demonstrates an escalating awareness and proactive approach towards environmental concerns among regional businesses and consumers.

    Consumer Influence on Business Sustainability

    According to the study, consumers are the primary force behind the demand for eco-friendly business practices. 84% of APAC consumers are encouraging businesses to establish environmentally conscious e-commerce alternatives. Environmental responsibility is increasingly becoming a key differentiator that is impacting purchasing choices.

    The study shows that 81% of APAC consumers show a preference for companies that visibly integrate sustainability into their operations, as opposed to competitors providing similar products without clear sustainable practices. While product authenticity and competitive pricing remain crucial for e-commerce consumers, nearly 40% are willing to pay higher prices for products with sustainable packaging. As environmental consciousness increases, businesses are responding accordingly, recognizing that sustainable practices are vital for maintaining competitiveness in the digital marketplace. This consumer-driven environmental focus could directly influence business profitability.

    Salil Chari, the regional president for Asia Pacific at FedEx, commented, “Sustainability is transitioning from being merely a compliance requirement to being a critical element for growth, resilience, and differentiation in global commerce. At FedEx, we are dedicated to supporting this transition by aiming to achieve carbon-neutral operations globally by 2040.”

    Innovative Steps Towards Sustainable Logistics

    FedEx is responding to the growing demand for sustainable logistics by investing in advanced technologies and infrastructure that not only reduce environmental impact but also enhance operational efficiency.

    An illustration of this innovative approach is FedEx’s AI-powered Stops Sequencing tool, which intelligently organizes delivery routes in real-time based on package volume and customer requirements. By minimizing unnecessary mileage, this tool has the potential to lower carbon emissions and improve operational efficiency.

    Moreover, FedEx offers customers the transparency needed to make informed decisions about sustainability. FedEx® Sustainability Insights, a cloud-based platform, provides improved transparency into environmental impact. Using up-to-the-minute FedEx network data, the platform estimates CO2e emissions for individual tracking numbers and entire FedEx shipping accounts.

    In addition to these efforts, FedEx has started using sustainable aviation fuel (SAF) at Chicago O’Hare and Miami International Airports. This is another step towards reducing aviation-related emissions within its global air network. In urban delivery, FedEx is going electric. Electric vehicles have been deployed across several APAC markets and account for over 20% of the company’s delivery fleet in China. In Taiwan, electric tricycles have been introduced to navigate dense urban environments more efficiently, resulting in lower emissions and improved delivery efficiency.

    As international trade evolves, FedEx maintains its commitment to providing faster, smarter, and more sustainable shipping solutions. These solutions will not only enable customers to succeed but also contribute to a more sustainable future.

    Questions & Answers

    What percentage of APAC SMEs consider environmental issues in their trade activities with Europe?
    Around 80% of APAC SMEs take environmental issues into account when trading with Europe.

    What proportion of APAC consumers are willing to pay premium prices for sustainable packaging?
    Nearly 40% of APAC consumers are ready to pay higher prices for sustainable packaging.

    What is FedEx’s goal for carbon-neutral operations?
    FedEx aims to achieve carbon-neutral operations globally by 2040.

  • Singapore Eateries Appeal for Increased Subsidies and Rent Control Amid Skyrocketing Business Closures

    Singapore Eateries Appeal for Increased Subsidies and Rent Control Amid Skyrocketing Business Closures

    Amid numerous business closures, the restaurant industry in Singapore is urging the government for additional labor cost subsidies and measures to control excessive rental hikes for the food and beverage sector. This appeal was recently put forward by The Restaurant Association of Singapore, which suggested an increase in subsidies under the Progressive Wage Credit Scheme to 75% for 2026 to 2028, a notable rise from the current 50%.

    The Impact on Singapore’s Food Scene

    As patrons review menus outside a local restaurant in a Singaporean shopping center, the underlying struggles of the industry are far from view. The association has proposed numerous changes, including the elimination of foreign worker levies, reducing the wait time for Progressive Wage Credit Scheme payouts, and allocating additional funding to support employees’ parental leave.

    The restaurant industry in Singapore is weathering what the association refers to as a “perfect storm” of escalating costs, labor shortages, and evolving consumer habits. The situation has led the association to seek government intervention to enhance cost predictability and stimulate domestic demand in the food and beverage sector.

    According to government data, the food scene in Singapore suffered 2,431 closures within the first ten months of the previous year, with 63% of these businesses failing to make it past the five-year mark. With the sector’s contraction in 2024 and record-breaking business closures, the association warns of potential threats to the long-term sustainability of food and beverage businesses, especially small and medium-sized enterprises (SMEs).

    Addressing High Rental Costs

    Another key focus of the association’s proposal is rental stabilization. Maintaining a consistent rental cost is a significant issue for the industry, as it represents a major fixed expense for businesses. The association asserts that providing “essential cost predictability” would equip businesses with the necessary information to make informed, long-term financial decisions.

    The association has suggested policy interventions to address exorbitant rental renewal increases. These include introducing caps on increases or linking them to macroeconomic indicators such as gross domestic product growth.

    In an effort to further support local businesses, the association is advocating for stronger measures, including raising foreign worker quotas and simplifying licensing fees.

    Benjamin Boh, President of the association, stated, “A vibrant and thriving food and beverage industry is crucial to making Singapore an attractive place to live and visit for both residents and tourists.” He emphasized that the proposed measures would offer business owners and operators a much-needed “breathing room” to fortify their business structures while managing external market pressures.

    Since its establishment in 1980, the Restaurant Association of Singapore has represented over 500 members and roughly 800 brands, covering more than 5,000 outlets.

    Questions & Answers

    What is the Progressive Wage Credit Scheme?
    This is a government initiative in Singapore designed to subsidize labor costs in various sectors, including food and beverage.

    What policy interventions has the Restaurant Association of Singapore proposed to address high rental costs?
    The association has suggested measures such as introducing caps on rental increases or linking them to macroeconomic indicators like gross domestic product growth.

    What was the impact of business closures on Singapore’s food scene last year?
    The food scene in Singapore witnessed 2,431 closures within the first ten months of the previous year, with 63% of these businesses failing to survive beyond five years.

  • CTG Duty Free Acquires DFS Retail Business, Expanding Luxury Travel Retail Footprint in Greater China

    CTG Duty Free Acquires DFS Retail Business, Expanding Luxury Travel Retail Footprint in Greater China

    DFS, the global luxury travel retailer owned by LVMH and co-founder Robert Miller, has announced that it will sell its retail business across Greater China to the China Tourism Group (CTG) Duty Free. The deal includes the acquisition of DFS’ businesses in Hong Kong, Macau, and Greater China.

    Acquisition of DFS Brands

    In addition to the business transactions, CTG Duty Free will also acquire a series of DFS brands and intellectual property rights for exclusive use within Greater China. The proceeds from this transaction will be paid in cash. Following this deal, DFS will continue its luxury travel retail operations worldwide.

    The Impact of the Deal on CTG Duty Free

    Luke Chang, executive director and president of CTG Duty Free, has expressed his belief that this move will extend CTG Duty Free’s service network across the Greater Bay Area. The aim is to construct a platform for promoting Chinese brands globally and establish an international business mid-platform. Chang added that CTG Duty Free is committed to providing superior travel retail experiences for both domestic and international tourists, and supporting the high-quality development of the retail economy in Hong Kong and Macau.

    DFS’ Statements on the Sale

    DFS views the sale as a significant move for the company. Chairman and CEO Ed Brennan stated that DFS is immensely proud of their established presence and operational excellence in Hong Kong and Macau. He expressed confidence that the DFS shopping experience will be enhanced by the new skills and perspectives that CTG Duty Free will bring to the table. Michael Schriver, president of LVMH for North Asia, said the move demonstrates LVMH’s faith in the long-term potential of the Chinese market.

    The deal is predicted to be finalized in approximately two months.

    Questions & Answers

    What businesses are included in the DFS and CTG Duty Free deal?
    DFS’ businesses in Hong Kong, Macau, and Greater China are included in the deal.

    What will happen to the DFS brands under the deal?
    CTG Duty Free will acquire a series of DFS brands and intellectual property rights for exclusive use in Greater China.

    What does this transaction mean for DFS?
    DFS views the sale as a crucial step for the company, expressing confidence that CTG Duty Free will bring new skills and perspectives that will enhance the DFS shopping experience.

  • Yum China Breaks into Burger Business with V Burger: A Fresh Spin on Fast Food Amidst Rising Market Competition

    Yum China Breaks into Burger Business with V Burger: A Fresh Spin on Fast Food Amidst Rising Market Competition

    Yum China, recognized as the chief operator of Pizza Hut on the Chinese mainland, has recently launched two independent V Burger locations in Futian and Longhua districts in Shenzhen. This move establishes the brand’s inaugural foray into the dedicated burger restaurant sector within the nation.

    The V Burger approach leans towards a Western-style concept and mainly caters to individual eaters and small groups of diners. The newly implemented menu features a variety of around ten different freshly made chicken and beef burgers. Prices for these items range from 23 to 42 yuan (equivalent to US$3.29 to US$6.01), resulting in an average expenditure of 32.5 yuan per diner.

    This new venture aligns with Yum China’s wider strategy of multi-brand expansion. This strategy has been evidenced by recent introductions of brands like KCoffee, Kpro, and the KFC Fried Chicken Brothers concept.

    Industry insiders have revealed that the company’s entry into the burger market has been in the planning stages for a considerable duration. Since December 2023, Pizza Hut has initiated a testing phase for a “pizza burger” series in selected cities. This series has comprised of four different types of burgers which were priced between 20 and 30 yuan each.

    The introduction of V Burger is timely as both international and domestic fast-food chains are currently vying intensely for a greater share of the Chinese consumer market. A report by Daxue Consulting suggests that China’s fast-food market was worth RMB1.28 trillion in 2023 and forecasts further growth, powered by increased demand from smaller, lower-tier cities.

    Competition within the sector is becoming increasingly fierce. As an indication of this, Burger King divested its controlling stake in China in November, opting to establish a joint venture instead. The company also announced its strategy to double its outlet numbers within half a decade, with the goal of having more than 4000 outlets by 2035.

    Questions & Answers

    What is Yum China’s latest venture in the Chinese market?
    Yum China has recently opened two standalone V Burger outlets in Shenzhen’s Futian and Longhua districts. This is the brand’s first dedicated foray into the burger restaurant sector within the country.

    Who is the target market for V Burger?
    The V Burger concept primarily caters to solo diners and small groups, offering a variety of freshly prepared chicken and beef burgers.

    What is the significance of the V Burger launch?
    The rollout of V Burger comes at a time when international and domestic fast-food chains are fiercely competing for Chinese consumers. It is a part of Yum China’s broader multi-brand expansion strategy which includes brands like KCoffee, Kpro, and the KFC Fried Chicken Brothers concept.