Retail News CRM

Tag: Economy

  • Vietnam’s Deputy PM wants Long Thanh airport construction to begin next year

    Vietnam’s Deputy PM wants Long Thanh airport construction to begin next year

    Construction of Long Thanh International Airport should begin next year with private funding prioritized, Deputy PM Trinh Dinh Dung has said. It has reached the highest level of priority since Saigon’s Tan Son Nhat has become overloaded, he said at a recent meeting. The deputy prime minister wanted the giant new airport in Dong Nai Province near HCMC to become an aviation hub for Southeast Asia.

    “If we get companies with deep pockets into the project, costs would surely be lower than using public funds or loans.”

    The Airports Corporation of Vietnam (ACV) recently proposed it should be the main investor.

    The ACV, which operates 21 airports in the country, said it could bring in the $1-1.5 billion needed for the first phase of the airport.

    It is currently working with the Ministry of Transport and Dong Nai authorities to acquire 1,800 hectares of land for the first phase.

    The ministry reported at the meeting that the consultancy consortium of the airport is now completing the preliminary design, which would be submitted next April.

    The ministry has instructed the consortium, JFV, to complete an environmental impact report by next month.

    JFV, comprising three Japanese, one French and two Vietnamese companies, will also need to submit a feasibility report for the airport by June.

    The Long Thanh International Airport, to be built in three phases over three decades, will become Vietnam’s largest airport.

    The first part is scheduled for completion in 2025 with a capacity of 25 million passengers a year. The next two phases will run from 2030 to 2035 and from 2040 to 2050.

    The total cost is estimated at $16 billion. Experts have warned that the cost could double every five years in case of delays.

    Once completed, the airport will have an annual capacity of 100 million passengers and five million tons of cargo.

    The tourism surge in Vietnam in recent years has resulted in a demand for upgrades to existing airports and construction of new ones.

    The country received 12.5 million air passengers last year, up 14.4 percent from 2017, according to the General Statistics Office.

    Lees ook:

  • Indonesian retail sales experiences rapid growth

    Indonesian retail sales experiences rapid growth

    Indonesian retail sales posted solid growth in December, according to a central bank survey. According to the data release, December sales grew at 7.7 per cent throughout the territory, a significantly faster rate than shown in figures from the year previous, are more than double November’s growth rate of 3.4 per cent.

    Sales throughout the month were predominantly underpinned by purchases of food, beverages and tobacco, alongside cultural and recreational goods.

    The survey predicts Indonesian retail sales will grow at a year-on-year rate of 4.8 per cent in January.

    Lees ook:

    Lees ook:

    Lees ook:

  • India’s January retail inflation more than halved to 2.05 pc

    India’s January retail inflation more than halved to 2.05 pc

    India’s annual rate of retail inflation more than halved to 2.05 percent in January from a high of 5.07 percent during the corresponding period last year, official data showed on Tuesday. The downward trend in CPI, is due to food inflation which has further widened its negative trend. Fruits, vegetables and eggs continued to witness deflationary trend during January this year, with their prices declining 4.18 percent, 13.32 percent and 2.44 percent, respectively, according to the data.

    Industrial production jumped to 2.4 percent in December, 2018 from 0.5 percent in November, 2018 driven mainly by a sharp spike in manufacturing index which rose to 2.7 percent vs -0.4 percent month-on-month.

    Lees ook:

    Lees ook:

  • Singapore December retail sales drops 3 per cent

    Singapore December retail sales drops 3 per cent

    Singapore retail sales in December slipped 3 per cent year on year. Including motor vehicles in the data, they fell by 6 per cent. There was a month-on-month decline of  4.1 per cent excluding vehicles, largely due to the online-sales boom driven by Singles Day and Black Friday in November.

    Online retailing continues to eat into traditional channels, accounting for 5.5 per cent of total sales in December, which compares favourably with the festivals-driven 6.6 per cent in November.

    The main drivers of change in monthly data was a 20.7 per cent slump in motor vehicle sales, and a 16.8 per cent fall in sales of computer and telecommunications equipment, largely down to  new product releases in December 2017.

    Singapore retail sales in December of recreational goods, watches and jewellery and furniture and household equipment decreased between 3.9 per cent and 5.8 per cent. Statistics Singapore attributed that to lower demand for sporting goods, jewellery and furniture. Conversely, sales of medical goods and toiletries increased 1.8 per cent.

    Sales of food and beverage services increased 4.5 per cent in December, compared to the same month last year.

    Sales by food caterers, fast-food outlets, restaurants and other eating places (such as cafes) all increased, by between 2.5 per cent and 6.6 per cent year on year.

  • Malaysia to post 4.4% GDP growth for Q4 2018: StanChart

    Malaysia to post 4.4% GDP growth for Q4 2018: StanChart

    Standard Chartered has projected Malaysia’s gross domestic product (GDP) to remain at 4.4% in the fourth quarter (Q4) of 2018. However, full-year GDP is expected to come in lower at 4.6% compared with 5.9% in 2017. Bank Negara Malaysia will release Q4 GDP data on Thursday.

    “We estimate GDP growth of 4.4% y/y, similar to Q3. Private consumption may have eased from the 9% y/y growth in Q3 as the boost from the tax holiday in June-August 2018 likely faded. Nevertheless, a rebound in mining and agriculture activity may have supported growth,“ Standard Chartered said in a research note.

    It added that private consumption was the main growth driver in 2018, accounting for 92% of GDP growth in the nine months (9M) of 2018 versus 64% for the same period of 2017, benefiting from the “tax-holiday” boost and strong labour market conditions.

    Meanwhile, private investment eased (primarily on lower investment in residential and commercial properties in the first quarter) and public investment extended its decline in 9M 2018.

    “Our GDP growth tracker suggests downside risk to our Q4 GDP growth forecast, with our tracker being reliant on more readily available externally driven activity data, such as IP, and less reflective of strong domestic consumption,” it said.

    Standard Chartered forecast 4.9% GDP growth for 2019, saying that private consumption is likely to remain the main growth pillar.

    “Beyond the consumer sector, we are slightly cautious on growth, especially given weak external demand. However, we see two one-off supportive factors. First, goods and services tax (GST) and income tax refunds amounting to RM37 billion (2.5% of GDP) may support spending (but these refunds have not been disbursed yet, posing downside risk to our growth forecast). Second, resumption of production capacity in the mining sector may also help.”

    On monetary policy, Standard Chartered said the latest meeting of Bank Negara Malaysia’s Monetary Policy Committee in January suggested that it is more dovish on the global outlook but still comfortable on domestic growth, underpinned by private consumption and private investment.

    “We maintain our call for Bank Negara Malaysia to keep rates on hold in 2019, with risks skewed towards a cut, especially if external demand worsens further and affects domestic activity.”

    Lees ook:

  • Malaysia to double palm oil used in transport biodiesel to 20%: Minister

    Malaysia to double palm oil used in transport biodiesel to 20%: Minister

    Malaysia aims to double the palm oil content in biodiesel used for the transport sector to 20% next year, as Southeast Asia’s third-largest economy looks to cut record stockpiles and boost prices, a government minister said. The government will also raise the palm oil content in biofuel for the industrial sector to 10% next year from a 7% quota being rolled out this July, Primary Industries Minister Teresa Kok said, speaking at a conference.

    Malaysia’s palm oil inventories fell to 3.001 million tonnes in January on increasing demand and falling production, but that was still near the two-decade high of 3.22 million tonnes recorded a month earlier.

    The increases in the amount of palm oil mandated for biodiesel – known as B20 for transport and B10 for industrial use – should lift use of the vegetable oil in biofuels to 1.3 million tonnes annually, the minister said.

    Kok said her ministry has submitted a proposal to the cabinet to set up a biofuel stabilisation fund to manage the price of biofuels, a similar mechanism to the export levy fund imposed by fellow palm oil producer Indonesia.

    “What if the palm oil price is high and the diesel price has gone up a lot? That would be costly for the public to use biodiesel, so we need to stabilise the price so biofuel will be more attractive to consumers,“ Kok said.

    “I have suggested (a stabilisation fund) in cabinet meeting before but we still need to have deeper discussion with other ministries.”

    Top palm producer and exporter Indonesia began collecting levies from palm exporters in 2015 to help finance the development of its palm-based biodiesel programme, as well as funding other palm oil agenda, such as replanting.

    However, Indonesia’s government temporarily removed the levy in November after a sharp drop in prices hit farmers.

  • Vietnamese firm seeks main investor status in Long Thanh airport

    Vietnamese firm seeks main investor status in Long Thanh airport

    The Airports Corporation of Vietnam (ACV) desires to be the main investor in the Long Thanh International Airport. ACV, which operates 21 airports in the country, has proposed that it contributes more than a quarter of the $5.4 billion needed to build the new Long Thanh International Airport. Lai Xuan Thanh, chairman of ACV, said that the corporation is ready to contribute $1-1.5 billion needed for the first phase of the mega airport to be built in Dong Nai Province, neighboring HCMC.

    In a proposal to the Ministry of Transport, ACV has said that its initial contribution will be used for major components of the airport including the terminal, runways, parking lots and cargo areas, worth a total of $3.77 billion, according to the Vietnamese government’s website.

    The airport operator is currently working with the Ministry of Transport and Dong Nai authorities on acquiring about 1,800 hectares for the first phase of the airport.

    Most of the targeted area is now covered by plantations belonging to the Dong Nai Rubber Corporation where 200 families reside.

    The Ministry of Transport has asked the consultancy consortium of the airport, JFV, to finish an environmental impact report next month.

    The consortium, comprising of three Japanese, one French and two Vietnamese companies, will also need to submit the feasibility report for the airport by June.

    In turn, the ministry “will submit the feasibility report to the National Assembly in October. If it is approved, bidding will start in 2020 and construction in 2021,” Transport Minister Nguyen Van The told local media recently.

    The Long Thanh International Airport, to be built in three phases over three decades, is set to become Vietnam’s largest airport.

    The first part is scheduled for completion in 2025, when the new airport will be able to handle 25 million passengers a year. The next two phases will run from 2030 to 2035 and from 2040 to 2050.

    Experts have previously warned that the construction cost of the airport could double every five years.

    Lying 40 kilometers east of HCMC, the airport is expected to take up the overflow from the largest existing airport in the country, Tan Son Nhat International Airport.

    Once completed, Long Thanh International Airport will have an annual capacity of 100 million passengers and five million tons of cargo.

    The tourism surge of recent years in Vietnam has resulted in demands for an upgrade of existing airports and construction of new ones.

    The country welcomed 12.5 million air passengers last year, up 14.4 percent from 2017, according to the General Statistics Office.

    Lees ook:

    Lees ook:

    Lees ook:

  • India central bank makes surprise interest rate cut

    India central bank makes surprise interest rate cut

    India’s central bank unexpectedly lowered interest rates and, as anticipated, shifted its stance to “neutral” from “calibrated tightening” to boost a slowing economy after a sharp fall in the inflation rate. The monetary policy committee (MPC) of the Reserve Bank of India cut the repo rate by 25 basis points to 6.25%, as predicted by only 21 of 65 analysts polled by Reuters. Most polled respondents expected the central bank to only change the stance, to neutral.

    Four of six members of the MPC voted to cut the rates, while all six voted for a change in the stance.

    “Investment activity is recovering but supported mainly by public spending on infrastructure,” the MPC said in a statement. “The need is to strengthen private investment activity and buttress private consumption.”

    Rupa Rege Nitsure, chief economist at L&T Financial Services, called the central bank moves “the perfect policy response in the current circumstances.”

    Indian shares pared gains while 10-year bond yields slid 5 basis points after the surprise rate cut.

    The Indian rupee weakened to 71.69 to the dollar immediately after the announced but strengthened soon after to 71.42.

    The NSE index was up 0.04% at 11068.05 while the 10-year benchmark government bond yield fell to 7.51% from Wednesday’s close of 7.56%.

    India’s last rate cut, to 6.00%, was in August 2017.

    Also, in Manila, the Philippine central bank kept its benchmark interest rate steady for a second straight meeting , saying inflation risk had fallen on lower crude oil and food prices.

    The Bangko Sentral ng Pilipinas kept the rate on its overnight reverse repurchase facility The central bank paused its tightening cycle in December to allow its five straight previous rate increases, totalling 175 basis points, to work their way into the economy.

    The rate increases appear to be having their desired effect as inflation has started to cool since it hit a near-decade peak of 6.7% in September and October last year.

    The decision to stay on hold was based on the central bank’s view that lower oil costs and stabilisation in food prices would bring inflation under control and could see it back on target as early as March, when it could fall to below 4%.

    Lees ook:

  • Oil price drops as global economic concerns grip market

    Oil price drops as global economic concerns grip market

    Oil price fell about 2 percent on Thursday as the market was weighed down by concerns that global demand growth would lag in the coming year. A rebound from late December lows seemed to stall amid worries that a trade war between the U.S. and China would continue, weighing on demand. The market also contended with the possibility that oil producers would not adhere strictly to cuts agreed to last year.

    Brent crude futures fell $1.06 a barrel, or 1.7 percent, to settle at $61.63. U.S. crude futures fell $1.37 a barrel, or 2.5 percent, to settle at $52.64.

    “The correction is stalled, mainly on concerns about demand growth,” said Gene McGillian, director of Market Research at Tradition Energy in Stamford, Connecticut. “There seems to be uncertainty about what is going to happen with the trade talks, with global economic growth and demand in the coming year,” he said.

    In particular, he said, the market is worried about whether demand is sufficient to absorb growing crude production from the U.S.

    “Supply fundamentals have increasingly been turning supportive in recent weeks, but against this the market still worries about the yet-to-be-realised – if at all – impact on demand from weaker macroeconomic fundamentals,” said Ole Hansen, head of commodity strategy at Saxo Bank.

    Though the United States published robust jobs data last week, global markets remain nervous after China reported the lowest annual economic growth in nearly 30 years in January. That focuses yet more attention on the outcome of U.S.-China talks to end the trade war between the world’s top two economies.

    The oil price also came under pressure as weekly data published by the U.S. Energy Information Administration on Wednesday showed an unwelcome increase in stocks of crude oil.

    A decline in OPEC production and a squeeze on supply from Iran and Venezuela because of U.S. sanctions have led many analysts to forecast that the market will be balanced in 2019.

    The oil price is showing a 20 percent gain so far this year.

    Price support is provided by supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) to tighten the market.

    Saudi Arabia, the world’s top oil exporter, told OPEC it had pumped 10.24 million barrels per day (bpd) in January, two OPEC sources said, a deeper cut than targeted in the supply pact. The kingdom pumped 10.643 million bpd in December.

    “We believe that financial markets may be overestimating the risks of a global recession,” said Jean-Pierre Durante, Head of Applied Research at Pictet Wealth Management.

    “Moreover, lower oil prices – prices were between 14 percent and 18 percent lower in January than their 2018 average – are likely to stimulate economic activity and oil demand, particularly in emerging markets.”

    U.S. sanctions against Venezuela’s oil industry are expected to freeze sales proceeds of Venezuelan crude exports to the United States.

     

    Lees ook:

  • Chinese tourists prefer Australia, Japan and Singapore: Survey

    Chinese tourists prefer Australia, Japan and Singapore: Survey

    Mainland Chinese tourists prefer visiting Australia, Japan and Singapore over Hong Kong, a survey has found, citing a preference for outdoor and nature activities in these places. Consultancy firm Kantar, which polled 300 people from Beijing, Shanghai, Guangzhou and Shenzhen, found that 52 per cent of respondents were interested in Australia as a holiday destination, followed by 40 per cent for Japan, 38 per cent for Singapore, and 35 per cent for Hong Kong.

    Some 22 per cent said they were keen to visit Taiwan, compared to 21 per cent who favoured South Korea, 15 per cent for Indonesia and 9 per cent for India.

    “Urban Chinese holidaymakers are looking for a diversity of experiences – nearly nine in 10 say that having lots to do is either important or very important to them,” stated the report, released last month.

    “The dominance of nature in the minds of urban Chinese leisure travellers may, at face value, present a challenge for retailers, malls, theme parks and other places.”

    The report stated that the trend could be an indication for businesses on potential growth directions.

    Despite Hong Kong not being the top destination for Chinese tourists in the poll, official figures showed visitor arrivals in the city – driven mainly by mainlanders – soared to a record high of 65.1 million last year, up 11.4 per cent from 2017.

    About 51 million tourists from across the border visited the city in 2018, a rise of 14.8 per cent from the previous year.

    But the Tourism Board has admitted that 2019 could be a “bumpy and unpredictable” year. Chinese tourists now see the city as a short-term destination, and they prefer Southeast Asia or Europe for long holidays.

    The board said Chinese tourists also craved “in-depth” travel in Hong Kong rather than the usual hotspots. One of the board’s strategies this year will be to attract mainland and overseas visitors to places such as the Geopark, the Ha Pak Nai mudflat in Yuen Long and Lau Fau Shan.

    The Kantar report also stated: “Hong Kong outperforms Singapore on most factors, but when it comes to perceptions of safety and cleanliness, Singapore dominates all [Asia-Pacific] markets, though it is held back by its lack of nature and outdoor [activities].”

    It acknowledged that Hong Kong had a “relative abundance of natural attractions” compared to the Lion City.

    On preferences for nature and outdoor activities in the eight destinations listed in the survey however, only 22 per cent of respondents indicated an interest in what Hong Kong had to offer, compared to 62 per cent for Australia, 42 per cent for Japan, 32 per cent for Indonesia, 31 per cent for Taiwan and 29 per cent for Singapore.

    In the category of sporting events, only 27 per cent said they were interested in those held in Hong Kong, with 47 per cent for Japan, 43 per cent for Australia, 30 per cent for Singapore, and 28 per cent for South Korea.

    Kantar’s group director, Mike Underhill, suggested that to boost Hong Kong’s attractiveness as a tourism haven, unique sporting events could be held, such as a mountain marathon.

    “I’m not saying it’s an easy thing to do, but if such an event is created, it will [capitalise on] an emerging trend among Chinese tourists to help grow a niche sector, thereby raising the perceived uniqueness of Hong Kong.”

    Jenny Zhang, 29, an accountant from Beijing, is among those for whom Hong Kong does not rate highly as a destination.

    “I would choose other places because I have visited Hong Kong several times already. But if I am in transit here to somewhere else, I would visit the city,” she said. “The world is huge and there are many places I have not been to. I love to see natural attractions and take in the culture of other places.”

    Asked to rank the eight destinations in the survey, Zhang placed Hong Kong in last place. Her top choices were Australia, Japan and Indonesia.

    But Chen Peng, 36, from Tianjin is among those who still enjoy coming to Hong Kong after visiting the city six times. This month, he took his daughter to Disneyland for the first time.

    “My wife loves Japan and so I would choose Japan as my top choice. For me though, Hong Kong is my No 1 choice,” he said.

    “When I come, I mostly go shopping with my wife and meet friends. I would go to Harbour City and Central.”

    Lees ook:

    Lees ook:

  • Korea’s industrial output growth slowest in near 20 years

    Korea’s industrial output growth slowest in near 20 years

    Industrial output is growing at the slowest rate in nearly 20 years, while facility investment dropped the most in a decade.  Other signs that the economy is in trouble include seven straight month of declines in the coincident and leading indexes. According to Statistics Korea and the Ministry of Strategy and Finance Thursday, last year industrial output grew 1 percent compared to 2017. This is the slowest annual growth rate since 2000.

    Manufacturing industry output was only able to rise 0.3 percent, while the construction industry, which is an important contributor to the domestic economy, fell 5.1 percent, with a particularly weak second half.

    Facility investment was down 4.2 percent, the sharpest drop since 2009, when the number declined 9.6 percent. The government said the decline in facility investment was largely due to weakening in the semiconductor sector.

    Consumption statistics were relatively strong, on the rising sales of both durable and nondurable goods. When compared to the previous year, consumption rose 4.2 percent, the sharpest increase in seven years. In 2011 consumption went up 4.6 percent.

    Strength was noted at duty-free shops and online.

    While traditional retail store sales were down, including those of discount marts like Emart and Lotte Mart, falling 2.8 percent, as well as those at smaller supermarkets and miscellaneous stores, falling 0.7 percent, sales of online stores were up 14.2 percent and duty-free sales surged 31.5 percent. Chinese tourists returned to the country in great numbers as a result of easing tensions over the introduction of a U.S. missile defense system.

    Convenience store sales were up 8.5 percent, a trend that has been seen in recent years as the number of people living alone has been rising.

    December figures weren’t comforting.

    When compared to the previous year, overall output grew 0.3 percent, which is half of the 0.6 percent reported in November. When compared to the previous month, December output fell for the second consecutive month at 0.6 percent.

    Manufacturing and mining output improved compared to the previous month. It also rose 1.6 percent compared to the same month the previous year, compared to November’s 1.1 percent.

    December output fell 1.4 percent month-on-month, the second consecutive month of decline.

    While the fall in output of automobiles was one of the major factors, down 5.9 percent compared to November, semiconductor output was also another contributing factor, as it fell 4.5 percent.

    The ministry said automobile production continued to fall as exports have shrunk. Overseas and domestic demands have been weak.

    Semiconductors, which have long been a positive force, started to become a drag, with production at some companies falling on weak demand.

    Investment in December alone fell sharply, declining 14.5 percent year-on-year, the sharpest fall since September 2018, when it tumbled 19.2 percent. Even when compared to the previous month, it dipped 0.4 percent.

    The coincident index, which shows the current economic situation when compared to the previous month, fell 0.2 points, down for nine consecutive months.

    It is the longest losing streak since falling for 11 months starting September 1997, when Korea was hit by the first financial crisis.

    The leading economic index fell 0.2 points compared to November, declining for seven consecutive months.

    In a statement, the ministry said it will swiftly move on “big projects” so investment sentiment will improve.

    “The government, if possible, is trying spend a quarter of the budget as early as possible,” Finance Minister Hong Nam-ki said Thursday.

    He denied he is looking into the possibility of a supplementary budget to boost the economy.

    “We’re only in January,” Hong said. “A supplementary budget is not under consideration.”

    The minister said the government will be announcing export measures, mostly focusing on financial aid to SMEs.

    “While finding new markets [for exports] is important, currently the most difficult issue is [SME] exporters struggling to get financial aid,” Hong said.

    Lees ook:

    Lees ook:

  • Korean export decline picks up speed in January

    Korean export decline picks up speed in January

    Exports have continued to fall for a second month, but at a steeper rate, confirming concerns raised by Finance Minister Hong Nam-ki earlier this week. Although Korea succeeded in posting a trade surplus for the 84th consecutive month, a new record, exports in January fell 5.8 percent, sharper than the 1.2 percent drop recorded in December.

    This is the first time since September and October 2016, when exports fell for two consecutive months.

    According to the Ministry of Trade, Industry and Energy on Friday, Korea’s exports in January amounted to $46.4 billion.

    Imports also retreated, losing 1.7 percent to $45 billion. As a result, Korea’s trade surplus in January was $1.3 billion, which is one-third of the $3.4 billion surplus reported a year ago.

    The ministry, however, said the decline of Korea’s exports wasn’t exclusive to Korea as other countries have also been falling as well.

    In December, China’s exports retreated 4.5 percent while Japan was down 3.2 percent, Taiwan lost 3 percent and Singapore fell 4.1 percent.

    The ministry said the decline was largely the result of external factors including the trade dispute between the United States and China, uncertainties resulting from Brexit, falling prices of semiconductors and crude and the slowing growth of the Chinese economy.

    Semiconductors, which were the largest contributor to last year’s thriving exports, played the biggest role in pulling down the number in January and December. Exports fell 23 percent compared to a year ago to $7.42 billion. Semiconductors account for roughly 20 percent of all Korean exports. Semiconductor exports have been shrinking after reaching a high of $12.4 billion in September 2018. The figure fell below $10 billion in December for the first time since April last year.

    The ministry blamed the falling price of semiconductors as global IT companies have been delaying additional purchases since the second half of last year. The price of an 8 gigabyte DRAM chip nosedived 36.5 percent from $9.60 a year ago to $6.10. The price of a 128 gigabyte NAND memory has fallen 22.4 percent from $6.7 to $5.2.

    Falling crude prices was another factor that drove down exports. Petroleum product exports fell 4.8 percent to $3.47 billion, while petrochemical goods slipped 5.3 percent to $3.98 billion. International oil prices have been falling since October last year. Last month, the price of a barrel of oil was down 10.7 percent on year.

    But these weren’t the only export items that struggled.

    Mobile telecommunication goods exports, including smartphones, have fallen 29.9 percent while computers exports are down 28.2 percent. Exports of ships fell 17.8 percent and displays were down 7.5 percent.

    Mobile telecommunication exports to the United States fell 9.7 percent, while the figure for member countries of the Association of Southeast Asian Nations (Asean) saw a steeper drop of 21.9 percent.

    On the contrary, automotive exports, which struggled throughout 2018, appeared to recover, growing almost at the same rate as a year ago.

    Automobile exports in January were up 13.4 percent to $3.67 billion, largely thanks to growing demand in the United States, Europe and the Commonwealth of Independent States (CIS). Exports to the United States in the first 20 days of January were up 43.4 percent to $820 million, Europe grew 20.7 percent to $350 million and the CIS surged 104.1 percent to $150 million.

    Thanks to positive growth in automotive exports, automobile parts exports grew as well, increasing 12.8 percent.

    Steel was another export good that saw an increase thanks to rising prices. When compared to a year ago, it grew 3.3 percent to $2.8 billion.

    By country, China, which is Korea’s No. 1 export market, tumbled 19.1 percent. China, as of last year, accounts for 26.8 percent of Korea’s exports.

    While the majority of the goods exported to China all fell last month, semiconductors, petroleum and petrochemical goods were hit especially hard. Semiconductor exports plummeted 40 percent in the first 20 days of last month to $1.61 billion, while petroleum exports fell 36.4 percent. Petrochemical exports lost 13.7 percent. The three products account for 44 percent of exports to China.

    Exports to the United States rose 20.4 percent to $6.21 billion, largely thanks to import of Korean automobiles, particularly SUVs, which saw an uptick of 43.4 percent.

    EU exports also grew in the double digits at 11.9 percent to $5 billion.

    The ministry said the situation will likely turn around in the second half when semiconductors and crude prices go up. The ministry said that when excluding semiconductors, petroleum and petrochemical goods, Korea’s exports in January only dipped 0.7 percent to $31.5 billion.

    The ministry also noted that new growth engine products like rechargeable batteries are doing well.

    It said that rechargeable battery exports have been rising over the last three years and are now expected to surpass exports of electronic consumer goods, which amount to $7.22 billion.

    Last year, secondary battery exports amounted to $7.23 billion, up 21.5 percent.

    Last month, it grew 14.5 percent year on year to $660 million.

    Biohealth exports have been growing in double-digits for four consecutive years. Last year, they reached a record of $8.15 billion, up 13 percent. Last month, however, biohealth exports fell 1.6 percent to $560 million. The ministry said that it still expects exports of biohealth goods to rise over the course of the year.

    OLED panels and electric vehicles are also seeing an increase in exports. OLED panels last month grew 12.8 percent to $800 million, while electric cars saw a surge of 184.7 percent to $280 million.

    The finance minister said the government will be coming up with measures to help small- and medium-sized exporters that may struggle from the recent turnaround, while Trade, Industry and Energy Minister Sung Yun-mo on Friday emphasized that the government will do its best to revitalize all exports.

    “Our plan will not be concentrated on short-term measures, but committed to all 365 days so that we can achieve $600 billion of exports by the end of this year,” Sung said.

    Korea, last year, reached a new milestone with exports exceeding $600 billion. However, with the global economy expected to shrink, there have been concerns that, this year, Korea’s exports may fall back below that threshold.

    “In a Jan. 21 export strategy meeting, we initiated a pan-government and a private-government joint support system, and since Jan. 30, we started a program of consulting on export difficulties in 15 cities starting with Changwon in South Gyeongsang,” the minister added.

    Lees ook:

    Lees ook:

  • RM25b export target for wood-based products achievable: Malaysian Council

    RM25b export target for wood-based products achievable: Malaysian Council

    The Malaysian Timber Council (MTC) remains optimistic that Malaysia will achieve its RM25 billion export target for wood-based products by 2020 despite a fragile global trade and economy caused by the US-China trade war. “We believe that the RM25 billion target is still achievable notwithstanding the potential headwinds that may come along the way, for instance Brexit, US-China trade war and other regional conflicts,” MTC CEO Richard said.

    “The good part about the timber and wood industry is that a lot of Malaysian businesses are very innovative, and they respond to changes quite quickly, in terms of adjusting to the changing needs and demands and also the challenges of the industry as well as economy,” he added.

    To recap, the Ministry of Plantation Industries and Commodities (MPIC) had in 2017 reduced the wood-based exports target from RM53 billion to RM25 billion due to shortage of raw materials.

    Yu said the RM25 billion target is more “realistic”, noting that the previous RM53 billion target was first formulated prior to the 2008 global financial crisis.

    “The planning and the formulation of the strategy was before that (the financial crisis). At that point of time, even in terms of the exchange rate was pretty favourable to us from ringgit terms perspective.

    “And looking at last year’s numbers, I think to get another incremental of about RM1 billion-RM2 billion for another three years should be quite realistic,” he added.

    The timber industry’s contributed RM23.2 billion to the government coffers in 2017, up 4.8% compared to last year’s figures.

    As at August 2018, the export figures had reached RM14.57 billion, in which the wooden furniture, plywood, sawn timber, fibreboard and builders’ joinery and carpentry are the main revenue generators for the sector.

    However, Yu noted that there is concern raised by the industry players on the potential Chinese products dumping.

    “That will obviously have an effect on our exports. But I believe the Ministry of International Trade and Industry is monitoring this issue closely,” he said.

    At present, Malaysia exports timber and timber-based products in over 160 countries.

    Moving forward, Yu said the country’s commitment in maintaining its forest cover at above 50% will ensure that the timber industry remains sustainable in the long-term.

    The MTC was established in January 1992 to facilitate the local industry players and promote the development and growth of the timber industry.

    Lees ook:

    Lees ook:

  • Australia’s December sales slump below expectations

    Australia’s December sales slump below expectations

    Monthly retail figures from the Australian Bureau of Statistics have shown a somewhat dismal December trading period performance, having fallen 0.4 per cent to $27 billion, compared to the 0.5 per cent increase seen in November. While online retail turnover made up 5.6 per cent of the total figure, this figure fell from 6.6 per cent enjoyed in November, indicating the increasing importance of the pre-Christmas sales events such as Black Friday and Cyber Monday.

    The results show that, over the course of the holiday period Australians spent $48.7 billion on retail sales, below the $51 billion projected by the Australian Retailers Association (ARA) and Roy Morgan, though above the corresponding turnover of $47.5 billion from 2017.

    National Retail Association chief executive Dominique Lamb pointed out that these figures should serve as a warning, to both sides of the political landscape, that sectors of the retail industry are struggling.

    “Retail is the second biggest sector in the Australian economy, so when it goes through a challenging period there is a knock-on effect throughout the economy,” Lamb said.

    “While the retail community certainly doesn’t look to government for all the answers, it is during slow periods such as these that measures are required that assist small business.”

    Household goods fell 2.8 per cent, and clothing and footwear saw a 2.4 per cent decline in spending over the month, while department store turnover decreased 1.1 per cent. However, cafes, restaurants and takeaway food services rose by 1.1 per cent over the month.

    ARA executive director Russell Zimmerman pointed out that, while the monthly figures were depressed, annually the industry achieved a 3 per cent growth in sales, compared to the 2.76 per cent seen the previous year.

    “Although these figures are disappointing, it is important to note that there are a variety of factors that have contributed to these soft figures, including the decrease in consumer sentiment caused by rising household costs and low wage growth, which continues to plague the industry and overall economy,” Zimmerman said.

    These sentiments were echoed earlier in the month by NAB chief economist Alan Oster, who noted that these factors had led to consumers becoming reluctant to spend on non-essentials, having observed a 1.4 per cent decrease in online spending over the December period.

    Lees ook:

  • Petrovietnam reports 26 percent hike in revenues last year

    Petrovietnam reports 26 percent hike in revenues last year

    Vietnam National Oil and Gas Group has announced its 2018 results, which show it exceeded its revenue and state budget contribution targets. The state-run giant (Petrovietnam or PVN) reported revenues of VND626.8 trillion ($26.92 billion), 18 percent higher than the target and a year-on-year rise of 26 percent. As of December 10 it had achieved its domestic crude oil production target of 11.31 million tons. Total oil and gas output reached 23.98 million tons (gas converted into oil equivalent).

    The group contributed VND121.3 trillion ($5.22 billion) to the state coffers, exceeding the target by 64.3 percent and 24.3 percent more than the previous year.

    “These achievements came at a time when global oil price movements were difficult to predict, production in mature fields were in rapid decline while new fields brought on stream were small and marginal and there was pressure to minimize costs per barrel,” CEO Nguyen Vu Truong Son said in the company’s 2018 business performance report.

    These are large enterprises with the state equity estimated at VND89 trillion ($3.83 billion), according to auditors’ conclusion.Last year the group wrapped up equitization of three of its subsidiaries: PetroVietnam Power Corporation (PV Power), Vietnam Oil Corporation (PVOIL) and Binh Son Refinery and Petrochemical Joint Stock Company (BSR).

    The proceeds from their IPOs reached VND16.5 trillion ($710 million). Petrovietnam managed to raise VND18.6 trillion ($801 million) from the three firms’ equitization and state divestments.

    With a capacity to process 200,000 barrels of crude a day, it, along with Dung Quat, can meet more than 80 percent of the country’s petroleum demand, reducing dependence on imports.In late last year, the $9 billion Nghi Son Refinery and Petrochemical Complex, one of the key national oil and gas projects, began commercial operation.

    Situated in the Nghi Son Economic Zone, 200 km south of Hanoi in the central province of Thanh Hoa, Nghi Son is invested by Idemitsu Kosan Co, Kuwait Petroleum, Petrovietnam and Mitsui Chemicals Inc.