ASEAN - Indian Chamber of Commerce

ASEAN                                                     09 MAY, 2021

                                               WEEKLY UPDATE

•   India and ASEAN to help each other to cope with devastating COVID-19 surge
    Government of Vietnam, with the help of ASEAN, announced that it is prepared to help India.
    Vietnamese Deputy Foreign Minister NguyènQuècDèng made the pledge to Indian Ambassador
    Pranay Kumar Verma during a meeting in the Vietnamese capital recently.
    Despite its health emergency, India pledged again a million dollars for the ASEAN fund to fight
    the COVID-19 pandemic. At the same time, ASEAN member states pledged to work closely with
    India to promote a global and sustainable recovery for the region and Asia as a whole.
    As part of the 2021-2025 five-year action plan, the parties plan to promote trade and
    investments worth US$ 200 billion next year as well as connectivity, marine cooperation, science
    and technology exchange, innovation and creativity to prevent and counter natural disasters and
    meet the challenge of climate change.

    Source: AsiaNews.It; April, 30, 2021

•   ASEAN+3 reaffirms cooperation on finance
    ASEAN finance lawmakers, regulators and counterparts from Japan, China and South Korea re-
    affirmed their commitments on regional collaboration in the 24th ASEAN+3 Finance Ministers’
    and Central Bank Governors’ (AFMGM+3) meeting held virtually on 3rd May, 2021. During
    discussions on the ASEAN+3 financial cooperation, the ministers and governors welcomed on-
    going collaboration, including through the Chiang Mai Initiative Multi-lateralisation (CMIM),
    AMRO, Asian Bond Markets Initiative (ABMI) and Strategic Directions of the ASEAN+3 Finance
    Process. They also committed to enhancing collaboration among regional initiatives and
    welcomed the establishment of four Working Groups on ‘Infrastructure Financing’ ‘Macro
    structural Instruments’, ‘Strengthening Financial Resilience against Natural Disasters’, and
    ‘Enhancing Policy Coordination for Technological Advancement’ under the strategic directions of
    the ASEAN+3 Finance Process.

    Source: Borneo Bulletin; (Brunei), May 04, 2021

•   Sultan of Brunei chairs special Asean Leaders’ Meeting
    A special Asean Leaders' Meeting on the crisis in Myanmar, chaired by Brunei's Sultan
    HassanalBolkiah, was held at the Asean Secretariat in Malaysia. Among those present in the
    meeting, were Malaysian Prime Minister Tan Sri MuhyiddinYassin, Singapore Prime Minister Lee
    HsienLoong, Vietnamese Prime Minister Pham Minh Chinh, Cambodian Prime Minister
    SamdechTecho Hun Sen and Indonesian President JokoWidodo. The special meeting has taken
    centre stage with the international community waiting to see if the 10-member regional
    grouping can emerge with a tangible solution for the crisis in Myanmar.

    Source: Malay Mail (Malaysia), April 24, 2021

•   Brunei GDP to grow 2.5pc this year, 3pc in 2022
    Brunei Darussalam’s economy is expected to strengthen in 2021 and 2022 on an improving
    external environment with a gross domestic product (GDP) growth of 2.5 per cent this year and
    three per cent next year, according to the Asia Development Bank (ADB) flagship economic
    publication, Asian Development Outlook (ADO) 2021, released recently. Growth in 2021 will be
    supported by a recovery in global demand and higher oil and gas prices, which will boost
    government revenue and support government consumption. Private consumption is expected to
    grow as the economy continues to strengthen. The GDP is forecast to rise in 2021 and 2022,
    supported by robust export growth from the Hengyi plant and higher oil and gas prices.

    Source: The Jakarta Post, (Indonesia), May 05, 2021

•   Indonesia posts record manufacturing PMI for 2nd month in row
    Factory activity hit another record high in April, with Indonesian businesses benefiting from
    easing supply chain disruptions and an uptick in global trade. The Indonesia manufacturing
    Purchasing Managers’ Index (PMI), which gauges factory activity based on a monthly survey of
    400 local manufacturers, increased to 54.6 in April from 53.2 in March, information provider IHS
    Markit said in a press release on Monday. A PMI above 50 indicates expansion, while a PMI
    below 50 indicates contraction.

    Source: The Jakarta Post, (Indonesia), May 04, 2021

•   COVID-19: Commercial bank offers to suspend repayments
    Customers of some commercial banks in Laos are hopeful that they will be able to postpone their
    repayments to banks. They are unable to make a regular income due to the lockdown in the
    country. Currently, Vientiane and other provinces are encountering difficulties after a daily surge
    in COVID-19 cases. This has led to a number of bank customers worried about repayments of
    capital, interest and other associated monetary activities.

    Source: Vientiane Times (Laos), May 05, 2021

•   Vietnam’s invaluable assistance spurs Laos’ Covid-19 containment effort
    Invaluable assistance provided by the government of Vietnam has significantly boosted the
    Lao government’s effort to battle the Covid-19 outbreak, officials say.
    The Vietnamese government has provided medical specialists and staff, funds and medical
    equipment worth billions of kip to help Laos contain the outbreak.

    Source: Vientiane Times (Laos), May 05, 2021

•   Malaysian Government approves applications worth RM12.88 bln under Wage Subsidy
    Programme 1.0 as of April 23
    The government of Malaysist has approved wage subsidy applications worth RM12.86
    billion under the Wage Subsidy Programme 1.0 (PSU1.0) as of April 23, which has benefited
    a total of 322,177 employers and 2.64 million workers. As for PSU 2.0, Finance Minister
    TengkuDatuk Seri Zafrul Abdul Aziz said the government had approved wage subsidy
    applications worth RM1.17 billion as of April 23, which had benefited 73,567 employers and

maintained employment for 635,748 workers. Under the MY30 Public Transport Subsidy
    program, as of April 23, TengkuZafrul said a total of RM127.74 million had been channelled
    for the subscription of 751,414 unlimited monthly public transport passes provided
    specifically for Malaysian citizens. “As announced under Budget 2021, this initiative is
    extended to 2021 to further promote mobility and reduce the cost burden of public
    transport for the people,” he said in the 52nd Implementation and Coordination Unit
    between National Agencies (Laksana) report on 6th May, 2021

    Source: Borneo Post Online (Malaysia), May 02, 2021

•   Economist calls for windfall tax on industries that benefit from Covid-19
    The government of Malaysia should consider implementing a windfall tax on industries that
    benefit greatly from the Covid-19 crisis, according to Khazanah Research Institute senior
    advisor Professor Dr Jomo Kwame Sundaram. “This is precisely the time when you must
    reform taxes, as you have it (windfall tax) all the time amid extraordinarily high petroleum
    prices or palm oil prices.

    Source: Borneo Post Online (Malaysia), May 04, 2021

•   Philippines eyes $400-million loan from World Bank
    The Government of Philippines is seeking a $400-million (P19.22-billion) loan from the World
    Bank to support financial sector reforms and boost the economy’s recovery from the
    pandemic.In a World Bank document published on its website on 5 th May, 2021, the World
    Bank’s board directors are likely to act on the proposed “Philippines First Financial Sector Reform
    Development Policy Financing” by June 24.“The proposed development policy loan supports the
    government of the Philippines in achieving a resilient, inclusive, and sustainable financial sector
    to enable a more inclusive green recovery from the coronavirus disease 2019 (COVID-19)
    pandemic,” the World Bank said.
    Source: BusinessWorld, (Philippines), May 05, 2021

•   Meat importers want lower tariffs until 2025
    Local meat importers of Philippines want the government to extend the implementation of lower
    tariffs on imported pork until 2025, in order to provide a steady supply for consumers and give
    time for the hog industry to recover.In a letter to Senate President Vicente C. Sotto III dated May
    3, Meat Importers and Traders Association (MITA) President Jesus C. Cham said the decision to
    reduce tariffs on imported pork for one year was a “bold and courageous move,” but should be
    effective for the next five years.

    Source: BusinessWorld, (Philippines), May 05, 2021

•   Singapore retail sales up 6.2% in March
    Singapore retail sales rose 6.2 per cent year on year in March, with a low base effect likely to
    boost April's figures as well, said economists.But the trajectory from there depends on whether
    tighter Covid-19 measures in May persist beyond their intended duration

    Source: The Business Times, (Singapore), May 06, 2021

•   Short-term profit-taking likely on latest round of Covid curbs
    Analysts are foreseeing a trend of profit-taking on the Singapore bourse as the Republic
    reinstates pre-emptive safety measures from May 8 to 30.This comes amid a rise in Covid-19
    community cases, including a cluster at Tan TockSeng Hospital detected the past week.The sell-
    off has already started, with Singapore shares swimming in a sea of red during the early morning
    trading session on Wednesday. As at the midday trading break, all index counters except Jardine
    Matheson Holdings were down.When the market opened on Wednesday, decliners
    outnumbered gainers 98 to 30, or three down for every one up, a ratio not seen the past five
    days of trading - which has been largely even, according to a tally by The Business Times.

    Source: The Business Times, (Singapore), May 06, 2021

•   Government of Thailand unveils B225bn relief plan
    The government of Thailand will hand out 7,000 baht each for four million people with high
    purchasing power and launch a new phase of "Khon La Khrueng" co-payment scheme as part of
    a new relief package worth 225 billion baht.The total sum is aimed, through various schemes, to
    help 51 million people affected by the latest wave of Covid-19 which had claimed 318 lives with
    cumulative infections of 74,900 as of Wednesday.Under the new package which will go before
    cabinet next week, the government will launch a "Ying Chai Ying Dai" (the more you spend, the
    more you get) scheme to give away e-vouchers to people from July to September to encourage
    them to buy food, products and services through the government's e-wallet.Each person
    participating in the scheme can spend up to 5,000 baht per day.
    Source: Bangkok Post (Thailand), May 06, 2021

•   Saksayam pushes for megaproject
    Transport Minister of Thailand, Mr.SaksayamChidchob has urged agencies to expedite the
    southern land bridge megaproject, which will connect the Gulf of Thailand with the Andaman
    Sea. After participating in a video conference on the project, Mr Saksayam said 16-metre-deep
    ports will be constructed at both ends, with direct connections to the nation's rail and highway
    networks. The ports will accommodate both goods and passenger transport, with the potential
    for pipeline transport, he said. "The shortest and most direct routes between the ports will be
    chosen for the land bridge project. Transport infrastructure in areas surrounding the land bridge
    will be improved to spur development and improve income distribution," he said.
    Source: Bangkok Post (Thailand), May 06, 2021

•   Confidence in Việt Nam’s business environment continues to rebound
    European business leaders began the year positive and optimistic about Việt Nam’s trade and
    investment environment, according to new data from the European Chamber of Commerce in
    Việt Nam (EuroCham). EuroCham’s Business Climate Index (BCI) hit 73.9 points in the first
    quarter of 2021. This is the highest score recorded since the third quarter of 2019, before the
    COVID-19 pandemic hit global trade and investment.
    Source: Viet Nam News (Vietnam), May 06, 2021

•   Austrian firms expect opportunities from Việt Nam
    The portal of the Austrian Federal Economic Chamber has run an article hailing Việt Nam’s
    consistent, drastic and effective measures against the COVID-19 pandemic, adding that the
    Vietnamese market remains attractive to Austrian firms. The article said it is not without reason
    that the Austria’s IC- Steiermark Centre (ICS) has brought Việt Nam into a focus programme this
    year, on the back of its 2.9 percent economic growth, which could reach 5-7 per cent this year.It
    quoted Austrian Commercial Counsellor in HCM City DietmarSchwank as saying that Việt Nam
    has insisted on virus containment and wide quarantine for immigrants. Such policy has proven
    successful in both health and economic terms. Border closure, a 14-day quarantine without
    exceptions and a consistent anti-pandemic plan have helped Việt Nam curb the virus spread.
    Source: Viet Nam News (Vietnam), May 06, 2021