Markets – Sure A Not

No limit to how low the yen will go – Asia Times

On: April 26, 2024

In: Asia

Who needs Las Vegas or Macau when betting on the yen’s potential lower is the best match anywhere in Tokyo?

It’s not where the&nbsp, Bank of Japan&nbsp, wanted to find itself this month as it mulled interest rate plan. That Governor Kazuo Ueda’s team did nothing on Friday ( April 26 ) was hardly surprising.

What was sudden, although, is Tokyo’s absence of urgency to end yen declines that danger upending economic interactions from Beijing to Washington.

In neighboring China, the dollar’s 10.6 % fall so far this year has Xi Jinping’s group mulling its individual choices.

Despite 5.3 % rise in the first quarter year on year, financial selling remain sweet, “pointing to weaker need”, says Carlos Casanova, scholar at Union Bancaire Privée. This suggests that regional consumption decreased in March in line with broad-based consumer price index drops.

China’s industrial output even continues to offend. This may suggest that production is not gaining as much from the continuous recovery in global trade as we had anticipated, according to Casanova, because of overcapacity constraints in key sectors, she says.

These overcapacity changes could exacerbate recession. No policy change did cause client costs to maintain more quickly than a weaker yuan. Does Xi and People’s Bank of China Governor&nbsp, Pan Gongsheng&nbsp, tilt toward a weaker rmb?

Xi’s inner sphere might interpret the dollar’s sharp decline as political include to create a more effective exchange rate that would increase exports and calm upward price pressures.

There would be just as some drawbacks as pros, though. As house developers struggle to pay off offshore loan, a weaker yuan could increase the risk of failures. It may hinder efforts to boost chinese confidence. Additionally, it might make fun of the US social creation as the November 5 election draws near.

This final risk is a huge one for Japan, also. An also weaker renminbi is sure to irritate politicians across the board despite Japanese Prime Minister Fumio Kishida’s close ties to US President Joe Biden. Republicans devoted to Donald Trump are likely to find a common ground with Binden’s Democrats over the fall in Asian exchange rates.

Biden recently announced plans to impose new tariffs on imported Taiwanese steel and aluminum. Trump, of course, is previewing 60 % fees on all mainland products. He’s even talking about a 100 % tax on specific car imports, a&nbsp, gambit&nbsp, that Chinese CEOs fear had simply come for their vehicles, to.

Chinese officials are trying to pull off a challenging balancing act as these threats grow. Finance Minister Shunichi Suzuki claims to be “watching business movements with a great sense of urgency,” but his group also is monitoring the raise Japan is receiving from a poor yen.

Japan’s imports rose 7.3 % yr- on- season in March. Additionally, the country is experiencing an unheard-of increase in hospitality driven by international visitors who are yen-stripped.

However, Tokyo’s leaders are aware that the effects of a falling exchange rate could have a negative impact on the country. The hour news channels feature the receding yen. For homeowners, it’s smacking more of Chinese weakness in world lines than financial recovery.

World investors&nbsp, are grappling with a tantalizing dilemma. If” Japan is back”, as a Nikkei 225 Stock Index at 34- time highs suggests, why is the renminbi in freefall piping a 34- time low? And why has the BOJ lacked the will to restore near-zero costs since 1999?

On Friday, the BOJ doubled down on its do- little plan. Ueda &amp, Co held its benchmark policy rate at 0 %- 0.1 %. &nbsp, Merchants, in other words, have much reason to fear the BOJ, at least for now. And it seems a safe bet that the yen’s decline to 160 to the dollars will result in.

Despite the fact that the renminbi is at its lowest point in 34 years, global investors have every reason to believe the yen has overheated.

For one thing, it’s fueling inflation that’s affecting customer and business trust. For one thing, it’s a growing breeze for businesses that rely on the local market for their profits. Despite the hospitality wave, retailers and travel companies are struggling.

All this is breaking investment methods. As 2024 began, gamblers figured the biggest Japanese&nbsp, wage increases &nbsp, among union employees in more than 30 years would make a virtuous cycle of spending and business income.

They also affirmed their belief that the Federal Reserve in Washington did cut interest rates by at least five times this month, boosting the renminbi.

With each fresh batch of regular data, these expectations are waning. Rie Nishihara, a JPMorgan researcher, warns that gains in inflation-adjusted wages will essentially be a clean if the renminbi falls to 157 per buck.

The vast majority of work are provided by little and mid-sized businesses, but they are already hampered by rising import fees. The same goes for large corporations.

” The situation]with the yen ] has reached a level that needs to be corrected”, says Takeshi Niinami, head of the Japan Association of Corporate Executives.

Strategist Shusuke Yamada at BofA Securities Japan notes that the eerie silence from&nbsp, Tokyo policymakers&nbsp, is n’t going unnoticed in trading pits around the globe.

The BOJ should recognize that policy has been too indulgent, that the upcoming rate hike is immediate as it is in June, and that the terminal rate may be higher than the market had predicted, according to Yamada.

Some, though, doubt the Ministry of Finance is on the point of acting.

” The Bank tail will not be allowed to tickle the dog”, said Vishnu Varathan, planner at Mizuho Bank. The BOJ even is likely to adhere to its plan of “dovish restriction” when it comes to tweaking brief- term rates, he said.

Yet the danger is that “if the BOJ abstains from intermediate, the yen may experience more upward pressure”, says Eman AlAyyaf, CEO of EA Trading.

She adds that the BOJ wants to prevent a” sustained pressure from higher US interest rates” from causing a sharp upward trend in the yen at the same time.

Arguably, Ueda’s BOJ brought today’s dilemma on itself by&nbsp, slow- walking steps&nbsp, to exit quantitative easing ( QE ). Since April 2023, when Ueda took command, international markets have been primed for a tilt apart from QE, or zero costs.

Month after month, Ueda’s staff demurred. Then, as China’s market slows, the BOJ’s glass to restore scheme is narrowing. Japan’s prices changes are showing symptoms of restraint, too.

Tokyo’s core inflation rate, which excludes fresh food and energy, slowed to 1.8 % year on year in April from 2.9 % in March. Since September 2022, the raise was the smallest.

” The schedule of the next BOJ interest rate hike does get a little complicated as the latest&nbsp, Tokyo inflation&nbsp, data for April slowed down from the previous quarter and came in below anticipation”, says Kelvin Wong, scientist at OANDA.

It’s hardly helpful to hear on Thursday that the US’s economy may be slowing more than initially anticipated. US gross domestic product grew just 1.6 % year on year in the first quarter, well below all economists ‘ projections.

” This report was the worst of both worlds: economic growth is slowing and inflationary pressures are persisting”, says Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.

Most economists still give the US the benefit of the doubt right now. The downshift may have masked otherwise solid&nbsp, economic momentum.

” The economy is at full employment, with unemployment steadfastly below 4 %, and growth remains close to the economy’s potential, with real GDP tracking close to 2 %”, says Dante DeAntonio, economist at Moody’s Analytics.

DeAntonio adds that “growth continues to surprise, and consumers are growing their spending. Businesses are also playing their part. Inflation remains the sole blemish. Although economic growth will not reach its full potential for a season, recession risks have decreased as the economy continues to be resilient.

The end result is that Asian central banks are now more perplexed than ever about the Fed’s policy outlook. The BOJ is Exhibit A, especially considering domestic economic conditions also refute the need for tighter credit controls.

Takeshi Yamaguchi, chief Japan economist at Morgan Stanley MUFG, states that” consumer sentiment is generally weak as individuals cope with higher costs and do not anticipate wages to keep up with inflation.”

Here, &nbsp, Ueda may be worried&nbsp, the BOJ will be blamed for pushing Japan into a recession. That’s what happened in 2006, the last time the BOJ tried — and failed — to normalize rates.

Governor Toshihiko Fukui then put an end to QE, and his team at the time were able to raise the official rates twice. The recession that followed enraged the political establishment. By 2008, Fukui’s successor was resurrecting QE and pushing rates back to zero.

In 2013, Ueda’s predecessor Haruhiko Kuroda supersized the BOJ’s balance sheet, growing it to a size bigger than Japan’s US$ 4.7 trillion GDP.

Since then, as the BOJ hoarded bonds and stocks, it’s become harder to discern where the BOJ’s portfolio ends and the private sector begins. In consequence, withdrawing liquidity is much more difficult than it was in 2006.

The yen’s spectacular drop might force Ueda’s hand, though. The advantages of a weak yen are quickly being overshadowed by the negative effects of a currency in relative free fall. Not least of which is insulting Beijing and Washington policymakers who already have enough on their plates.

Follow William Pesek on X at @WilliamPesek

TTM Technologies celebrates grand opening of its first manufacturing facility in Penang

By: Mary Blight

On: April 26, 2024

In: Technology

Aims to create 1, 000 work for local skills by 2025
New flower expected to generate around US$ 180 million by 2025.

TTM Technologies, Inc., a leading global manufacturer of technology solutions including mission systems, radio frequency ( RF ) components and RF microwave/microelectronic assemblies, and quick- turn and technologically advanced printed circuit boards (PCBs ), has officially opened its first manufacturing plant in Penang, Malaysia with an investment of US$ 200 million ( RM958 million ).

Built on 27 acres in Penang Science Park, the firm’s condition- of- the- art facility boasts extremely impressive and integrated PCB manufacturing capabilities. The near collaboration between TTM and its customers has led to this job, which seeks to address the growing need for Circuit supply chain resilience and physical producing diversity. &nbsp,

TTM added that the herb is customised to help large production requirements in various business finish markets, including network, data centre computing, medical, professional, and instrumentation.

The chief minister of Penang, Chow Kon Yeow, stated,” Penang is proud to be the place where TTM’s first large-scale, highly automated, and modern Board manufacturing plant is set up in Southeast Asia. This also indicates the assurance that foreign traders have placed in the state.”

He continued,” Penang has the abilities and capabilities to meet the needs of professional players in next-generation technologies and development strategies. It is frequently praised for its well-developed technological ecosystem. I’m confident that TTM’s activity in Penang, the Silicon Valley of the East, may have a number of advantages.

Chow Kon Yeow, Pn., presided over the standard opening ceremony for TTM’s Penang flower. Najihah Abas, executive director, Investment Promotion of Malaysian Investment Development Authority ( MIDA ), Loo Lee Lian, CEO, InvestPenang, Thomas Edman, president, and CEO, TTM Technologies, Inc., Philip Titterton, executive vice president and chief operating officer, TTM Technologies, Inc., senior government officials, and TTM’s senior management.

By 2025, TTM’s Penang plant will enable the creation of about 1, 000 job opportunities for local talent in a variety of industries. The expansion will support cultivate the skills of native professional talent in cutting-edge PCB technology solutions and may lead to significant opportunities for TTM’s local suppliers.

TTM anticipates that the fresh plant may produce full move level income of about US$ 180 million ( RM855 million ) by 2025. However, the plant is built to help a Step two rise that could result in a 25 cent increase. &nbsp, &nbsp,

Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO, MIDA emphasised,” It brings me great pleasure to underscore the significant benefits TTM Technologies ‘ investment brings to Malaysia’s electrical and electronics ( E&amp, E) industry, especially within the semiconductor sector. Malaysia is now a significant player in the global semiconductor supply ring thanks to TTM’s skills in high-tech options and advanced printed circuit boards.

He added that TTM’s center in Penang improves Malaysia’s E& E industry’s capacity for growth and endurance as well as its ability to compete with other countries for the next generation of Circuit manufacturing.

This growth, which focuses on strengthening the silicon habitat, perfectly corresponds with the strategic priorities outlined in the New Industrial Master Plan 2030. It opens avenues for skill enhancement and information sharing among native talents, reinforcing Malaysia’s stature on the world stage as a dynamic, technologically advanced nation”, Sikh Shamsul said. TTM Technologies celebrates grand opening of its first manufacturing facility in Penang

Meanwhile, Thomas Edman ( pic ) commented,” The opening of our flagship plant in Penang marks a significant milestone for TTM. With a state-of-the-art facility that underscores our commitment to providing our customers with specialized advanced technology PCB solutions on a global scale, we are thrilled to begin this expansion plan.

He added,” As we step into this new era of innovation and expansion, we are committed to elevating industry standards, meeting customer needs, and propelling TTM’s growth as a new contributor to the Malaysian economy”.

” Penang’s strong industrial eco-system, position as the hub for electrical and electronic equipment, strong talent pool, and conducive business environment have made it a preferred location for TTM,” said Penang. Only two years after our initial ground-breaking, TTM is now entering our production ramp due to the outstanding support of the government and the efforts of our employees. As TTM builds our presence in Penang, we eagerly anticipate a longstanding relationship and mutually rewarding partnership with the Malaysian government, our customers, and our critical vendors”, Edman said.

Besides contributing to the industry’s needs, TTM is strongly committed to protecting its staff, community, customers, and the environment. The new facility’s goal is to advance its sustainability efforts by reducing the amount of energy and water used while still adhering to stringent environmental operational requirements. It will also reduce the carbon footprint by 60 % when compared to a traditional PCB plant.

Changi Airport’s passenger traffic in Q1 2024 surpasses pre-pandemic levels

By: Marcus Ching

On: April 25, 2024

In: South-East Asia

SINGAPORE: About 16.5 million people passed through Singapore’s Changi Airport in the first third of this year, surpassing post- epidemic levels. The aircraft handled 5.43 million, 5.35 million and 5.73 million customer actions in January, February and March both. These figures were 96 per cent, 104.3 per cent and 101.7Continue Reading

New EU trade rules ‘green squeeze’ the Global South – Asia Times

By: Bolen C

On: April 25, 2024

In: Asia

The EU legislature recently passed sweeping new regulations that may require businesses to protect against and stop human rights violations and protect the environment in their supply stores.

These are commendable goals. They have been a long time coming. However, there are real dangers of well-intentioned policies putting the poorest nations in a “green press” without cautious style and more strategic support for businesses and providers in the developing world.

The new EU green trade measures, which are penalizing poorer producers exporting into the bloc, are all intended to address a climate crisis that they did n’t cause, are raising the current concerns of many different types of developing nations.

Without a more concentrated support, the EU runs the risk of undermining its existing collaborations with developing countries to advance global growth and trade objectives.

The world’s 45 least developed countries may only account for 1 % of global merchandise trade but they are home to a quarter of the world’s population, some of them the world’s poorest people.

They have limited domestic markets and, because of historical trade ( including colonial ) relations, typically rely on EU markets and supply chains for around 15 %- 20 % of their exports.

Without additional support, the new alternative trade measures’ combined effects could cause more business obstacles that may reduce extreme poverty. The resultant revenue declines limit attempts by the poorest nations to adapt to climate change as well as development goals.

Coffee is one of Ethiopia’s main exports, but EU forest laws had cost the country US$ 1 billion a month. Yaroslav Astakhov / Shutterstock via The Talk

Ironic because these nations now foot the bill for the climate crisis and have the lowest pollution.

A’ natural squash’ for the poorest nations

My research suggests that the combined effects of the current and anticipated measures could result in a “green press,” leading to hundreds of millions of dollars in additional compliance costs. For instance, the new EU deforestation regulations alone could reduce some of the poorest nations ‘ exports by 10 % and lower an individual nation’s GDP by 1 %.

In Ethiopia, where coworkers and I have modelled the financial data for upcoming research, there could be up to a US$ 1.13 billion decline in GDP periodically. This is because producers who are unable to support them are excluded, and exports will be lowered as a result of rising compliance costs.

And this figure does n’t factor in all the likely knock on effects on consumption, investment, tax revenues, wages, employment and government expenditure. A similar position is occurring in other less developed nations that export products into the EU.

A few adjustments have been made to the European Green Deal, a set of laws intended to make the Union carbon neutral by 2050.

For instance, the forest regulation had intended to first categorize nations as having a large, reduced, or standard risk of their exports being connected to deforestation. However, the regulation will use a normal risk to all nations starting in December 2024, which is good news for exporters who originate from nations like Brazil that could have been high risk.

Deforested land — Brazil remains a forest hub. Photo: Tarcisio Schnaider / Shutterstock via The Talk

Perhaps a standard risk classification also calls for the complete traceability of items and their supply chains. Additionally, 3 % of operators and traders will still be subject to checks ( compared to 9 % if the nations were given a high risk ) level. Companies does require longer to adjust.

According to reports, EU coffee importers are already cutting back on their production because they fear growers wo n’t be able to comply. Business is now reversing its focus to less developed and less expensive nations where deforestation is viewed as less risky and have existing systems in place to monitor the effects of products on the environment.

The European Parliament will vote on the due diligence order for business sustainability, which may become effective starting in 2025. The order imposes a variety of compliance costs, which are more readily absorbed by larger businesses from a developing country standpoint.

As one major African fruit products exporter, Blue Skies, told me, the barrage of new audit and compliance measures will mean duplicated paperwork, travel and consultancy fees, adding £1 million ( US$ 1.25 million ) in annual costs, just to maintain access to its existing markets.

From 2026, the EU’s coal border adjustment mechanism may involve importers of specific emissions- intense goods like cement, iron and steel, aluminium, and fertilisers, to pay for the carbon embodied in these goods.

The EU has responded to questions about how complicated the investigating needs are. Once companies are required to report the pollutants embodied in imported goods, we can anticipate raising more problems.

Of course, rich countries had immediately electrify trade and production. This is not a defense for addressing climate change. Instead, it is a call for politicians to really consider how to ensure that new clean business opportunities arise in accordance with the UN’s global commitment to double the poorest nations ‘ share of global exports ( a goal that has not been met since its target season of 2020 ).

What could this glance like? For a start, the EU may develop more coordinated aid packages that take into account country-specific circumstances and manufacturing systems. Listening to places that have asked for more time to react, like Ethiopia, would be a good place to start. In addition, revision needs to be increased support for business support.

New alternative trade initiatives may support development objectives. In this way, we can prevent the natural squash and prevent harming the poorest nations.

Jodie Keane is Senior Research Fellow, International Economic Development Group, ODI

This content was republished from The Conversation under a Creative Commons license. Read the original content.

She Loves Tech, Digital Penang lead Malaysia’s Entry into the tech competition for women founders

By: Mary Blight

On: April 25, 2024

In: Technology

Aims to foster Malaysia as a gateway for startups&nbsp,
Opposition promotes necessity of sex inclusivity

She Loves Tech, Digital Penang lead Malaysia’s Entry into the tech competition for women founders

Digital Penang, a Penang State GLC, has announced its association with She Loves Tech, recognised as the country’s largest acceleration program for people in systems. Additionally, it asserts to be the biggest software on the planet dedicated to closing the gender funding gap.

Digital Penang invites people technology members from all industry sectors to take part in the 2024 She Loves Tech Startup worldwide competition, which has been officially appointed as Malaysia-level Key Selection Partner for its eighth celebration.

This collaboration and competition coincide with Malaysia’s imperative to develop the nation as a hub for startups, as just lauded by the Ministry of Economy and Ministry of Science, Technology, and Innovation. Additionally, the celebration emphasizes the importance of gender equality, especially with the participation of Malaysian women tech founders.

Digital Penang and She Loves Tech so welcome all state and national government organizations and private organizations involved in promoting people in technology to meet these collective efforts to promote and support women-led Indonesian companies in this global rivals.

The contest will not only draw attention to Malaysia’s vibrant tech sector, but it will also encourage economic growth and encourage the creation of novel alternatives that have the ability to have an impact on both domestic and international markets.

The partnership between She Loves Tech and Digital Penang, which serves as Malaysia’s standard key collection partner for the worldwide competition, is a testament to the state government’s commitment to raising awareness and promoting the inclusion of women in technology. This endeavor should not only be limited to Penang but also be extended to the entire country to give opportunities for all women there to share their ideas and solutions that are affecting the country’s economy, according to Zairil Khir Johari, the Penang State EXCO for Infrastructure, Transport, and Digital.

Participants in She Loves Tech must be women-led tech startups with a gender perspective, have received seed funding under US$ 5 million ( RM24 million ), and have a minimum viable product that has not been developed beyond the conceptual stage.

Additionally, they must meet at least one of the following gender lens criteria:

Founded by a woman
Majority female users
Majority female consumers
Technology having a positive effect on women

Participants at the regional level will gain a wide range of opportunities to connect with an international network of mentors, partners, and investors as well as extensive exposure to a global audience. All women who are eligible for this are invited to use this opportunity to create innovative solutions that positively affect Malaysian women.

For more details on the application process and to register for the competition, please visit https ://www .shelovestech .org/competition. The deadline for applications is April 22 through May 30th, 2024.

Firm offices raided, China calls EU ‘protectionist’ – Asia Times

By: Bolen C

On: April 24, 2024

In: Asia

After the Union searched the offices of a Chinese surveillance equipment supplier in Europe and looked into China’s medical device procurement market, Beijing has referred to the EU as “protectionist.” &nbsp,

The German Commission, the body of the EU’s executive branch, conducted its first-ever inspection of a Chinese company’s branches in Poland and the Netherlands on Tuesday night without giving any notice. &nbsp,

According to a statement released by the China Chamber of Commerce to the EU, police authorities authorized by the EC seized the Taiwanese company’s IT equipment and personnel ‘ mobile phones, inspected business records, and demanded admittance to relevant information. &nbsp,

The CCCEU stated that the EU’s deeds have shocked and dissatisfied it and its people. It claimed that the EU’s attacks had a negative impact on all non-EU companies in the region as well as Foreign businesses. &nbsp,

According to the report, the immediate, unanticipated inspection, disguised as foreign subsidies, undermined the EU’s business environment. &nbsp,

” The EU has been often using its economic and trade’ kit’ and trade ‘ solutions ‘”, Wang Wenbin, a director of the Chinese Foreign Ministry, said in a regular press briefing on Wednesday. ” The EU says it is the most open market in the world, but as the world you see, the EU is obviously inching toward protectionism”.

He urged the EU to uphold its dedication to an open market and good competition, abide by the rules of the World Trade Organization, and prevent pursuing and restraining Taiwanese companies under different pretenses.

According to the EC, the inspected Chinese organization may have been given international subsidies that may stifle the inner market in accordance with the Foreign Subsidies Regulation.

Medical device businesses

The EU’s second investigation into Chinese businesses in recent months was the most recent raids of the unknown Chinese surveillance equipment provider’s offices in Poland and the Netherlands. &nbsp, &nbsp,

Prior to this, the EU launched inquiries into Chinese manufacturers of solar panels, wind turbines, and electric trains. It claimed that China had won green project contracts in Europe by using its socialist economic system to groom its state-owned enterprises.

Last October, the EU launched an anti- subsidy investigation into Chinese electric vehicles. &nbsp,

In addition to these, the EU announced on Wednesday that it had launched an investigation against Chinese medical device suppliers for the first time under the International Procurement Instrument.

Evidence from the study revealed that China’s procurement market for medical devices has gradually become more opaque for both EU-based and foreign companies, as well as EU-made products.

It criticized China for unfairly distinguishing between local and foreign businesses, as well as between locally produced and imported medical devices. &nbsp,

The EU claimed to have already communicated its concerns to Chinese authorities in person and in person, but had not yet received satisfactory responses or actions.

With the intention to end the discriminatory measures, it will now invite the Chinese authorities to submit their opinions, provide pertinent information, and launch a consultation.

Within a nine-month window, which can be extended by five months, the EU’s investigation and consultations will be finished.

According to an unnamed representative from the Chinese Commerce Ministry’s Trade Remedy and Investigation Bureau, “in recent investigations, the EU has set clear targets, abused its procedures, and weaponized its investigation tools.” In the name of” fair competition,” these protectionist acts “have distorted the fair competition environment.”

China will closely monitor the EU’s subsequent actions, according to that spokesperson, and will take all necessary steps to vehemently protect the company’s legitimate rights and interests.

According to an industry report published by AskCI Consulting Co Ltd, China’s medical device market grew 10.2 % to 1.04 trillion yuan ( US$ 143.5 billion ) in 2023 from 940 billion yuan in 2022. The figure is expected to surge 9.1 % year- on- year to 1.13 trillion yuan this year.

Europe’s medical device market is set to grow 4.1 % to US$ 151.7 billion this year from US$ 145.79 billion in 2023, according to Eurostat. &nbsp,

Some researchers believe that China may have already surpassed Europe to become the second-largest market for medical devices in the world after the United States did last year. Even if it has n’t, China is likely to be able to do so in 2024. &nbsp, &nbsp,

Xi’s visit to Europe

The EU has repeatedly urged China to put an end to the Russian-Ukraine war over the past two years. However, it has been disappointed by Beijing’s response so far. &nbsp,

In a meeting with Chinese President Xi Jinping in Beijing in December, European Council Chairman Charles Michel demanded that China immediately resolve its dispute with 13 businesses that supply Russia with dual-use goods. Ursula von der Leyen, president of the European Commission, advised China to stop Russia from attempting to stifle the impact of sanctions.

The EU announced in February of this year that it was adding nearly 200 people and organizations, primarily from Russia, to its blacklist as a result of their efforts to provide Russia with advanced technology and military products produced in Europe. Some of these businesses have locations in Serbia and Turkey. &nbsp,

Xi Jinping, the president of China, is scheduled to visit France, Serbia, and Hungary in early May, according to media reports. In Paris, Xi will meet with French President Emmanuel Macron as this year marks the 60th anniversary of China-France diplomatic relations. &nbsp,

China’s industrial overcapacity and support for Russia will be on top of the agenda in the Xi- Macron meeting, said some commentators.

In an interview in February, Serbian President Aleksandar Vucic claimed Taiwan is a part of China. He stated that Xi will travel to Serbia this year. &nbsp,

Read: Chinese firms to assemble EVs in Europe, duck tariffs

Follow Jeff Pao on Twitter: &nbsp, @jeffpao3

Activpayroll strengthens presence in APAC with Kuala Lumpur Office to meet rising industry demands

By: Mary Blight

On: April 24, 2024

In: Technology

The growth addresses APAC’s need for HR and payroll services.
Aims to quadruple its workforce by 2028, with a 37 % increase in opex and capex&nbsp,

(L-R): Mahadhir Aziz, CEO of Malaysia Digital Economy Corporation (MDEC), Manish Mehta, regional director Activpayroll, David Deacon, chief people officer Activpayroll, Wilson Ugak Kumbong, deputy minister of Digital Malaysia, Ailsa Terry CMG, British high commissioner to Malaysia and Andrew Philp, executive director APAC Activpayroll during the Malaysia Digital Certificate Presentation

Activpayroll, a leading integrated global HR and payroll platform, has strengthened its&nbsp, position in Malaysia and is poised to tap into the growing Asia Pacific ( APAC ) payroll and HR outsourcing market with the opening of its new office in Bukit Damansara, officiated by Malaysia’s Deputy Minister of Digital, Wilson Ugak Kumbong. Also in attendance were Ailsa Terry, British High Commissioner to Malaysia, and Mahadhir Aziz, CEO of Malaysia Digital Economy Corporation ( MDEC ).

The market for HR and payroll outsourcing in APAC is projected to reach US$ 37.9 billion ( RM181 billion ) by 2027, growing at a compound annual growth rate ( CAGR ) of 8.2 % from 2022 to 2027. In APAC, where 57 % of businesses outsource their HR functions, a trend expected to grow, there is an increase in demand for professional service covering cross-border regional and global-scale HR and pay.

Andrew Philp, Activpayroll’s executive producer for APAC, stated,” As the business experiences extraordinary development, our growth in Kuala Lumpur is fast. This action strengthens our existence in this country and establishes the foundation for Activpayroll to take the lead in shaping the region’s future of global pay and HR companies.

” We see how important our continued expense in our operating teams, who are based in Malaysia, is to the development and growth of the Activpayroll services in the area. We are convinced that we will be able to provide the close help our customers need to excel in APAC because of the availability of skilled resources in Kuala Lumpur,” he added.

Activpayroll’s new Kuala Lumpur office will serve as its primary Global Support Service Centre ( GSS) for both global and Asia Pacific operations. By establishing a whole suite of teams, including those in tech and global payments, the company aims to optimize service delivery and enhance the customer experience. In terms of staff, the new business is anticipated to be the largest for Activpayroll, with hopes for a robust top-line income increase of over 40 %.

Additionally, the business intends to increase its workforce by quadrupedping its workforce by 2028, supported by an average 37 % increase in operating and capital expenditures. In less than a month, the company has previously doubled its workforce. &nbsp,

In response to the need for dynamic and skilled workers, Activpayroll has made significant investments in training and development initiatives to advance Malaysia’s efforts to have a strong talent pool.

Activpayroll received a document from MDEC for Malaysia Digital Status during the occasion. The increased investment in Malaysia and the company’s choice to place Kuala Lumpur as a local hub serving its APAC clients, according to Mahadhir Aziz, CEO of MDEC, are both clearly indications of the country’s commitment to creating a suitable business environment and solid infrastructure. Today, with the MD documentation, we anticipate their accelerated trip, further enhancing Malaysia’s fame within the powerful electric market ecosystem”.

This strategic shift by Activpayroll is both a testament to its commitment to the Indonesian market and a major contribution to Malaysia’s effort to lead the region in terms of innovation and modern transformation.

The business is dedicated to assisting businesses in navigating global challenges in their markets by providing customized solutions to address issues like tax compliance, world mobility, international payroll, and global HR. With existing customers within Asia such as Kellogg’s, BMW, AXA, British Council, and many more, Activpayroll is convinced that with Malaysia serving as the focal point in the region, it may force important development for the business.

Manish Mehta, regional director of Payroll Operations and nose of Global Support Services, Activpayroll, said,” As we embark on the early days of our annual GSS heart, we are proud to host important functions such as engineering and software management, management accounting, credit control, global payroll and payments, business and contracts, business development, and HR. Our unwavering commitment is to make sure the GSS center is a smashing success and that our global business expansion is seamless.

The establishment of the Kuala Lumpur hub demonstrates Activpayroll’s commitment to the rapidly expanding APAC region and the Malaysian market. An over 60 % increase in investment outlays has been caused by a significant investment drive launched in December 2022. &nbsp,

The Malaysian market will benefit from Malaysian businesses’ sustained growth and industry leadership, as well as meaningfully influencing the growth of the professional services sector, enabling Malaysian businesses and their workforces to prosper in the dynamic APAC landscape.

Long Songkran generated B140bn in tourism income

By: Barkar Nash

On: April 24, 2024

In: South-East Asia

According to the Hospitality and Sports Ministry, 1.9 million international tourists visited the nation during the three weeks of the Songkran festival this year, generating about 140 billion baht in tourism revenue.

The 21- time much festivity from April 1- 21 generated 140.335 billion ringgit in revenue, above the projected figure of 132 billion baht, Tourism and Sports Minister Sudawan Wangsupakitkosol said on Wednesday. The characters were compiled by the agency’s finance commerce and sports section. T

The hospitality business benefitted from 42.06 billion ringgit, food and beverage 33.06 billion ringgit, items and souvenirs 26.83 billion baht, travel 15.50 billion baht, entertainment 14.75 billion baht, tourism services 5.86 billion baht and another outlays 2.23 billion, Ms Sudawan said.

The event had a lively atmosphere, with both international travelers and the numerous Thai people who had traveled and celebrated Songkran.

During the 21 weeks, a total of 1, 926, 443 international tourists visited the country, an increase of 37.54 % on the same period last year, the minister said.

Ms. Sudawan attributed the administration’s efforts to facilitate travel, including the removal of Tor Mor 6 multiculturalism forms and the organization of significant events to mark the event. &nbsp, &nbsp,

According to the minister, the minister reported that there were more foreigners traveling both from local and distant markets.

The 10 countries providing the most tourists were China with 395, 830 ( an increase of 89.16 % from last year ), Malaysia 298, 263 (up 41.62 % ), India 114, 330 (up&nbsp, 27.53 % ), Russia 104, 538 (up 19.61 % ), South Korea 84, 539 (up 36.02 % ), Laos 66, 396 (up 43.59 % ), &nbsp, the United Kingdom 60, 495 (up 11.31 % ), Taiwan 60, 153 (up 58.74 % ), the United States 56, 068 (up 10.43 % ) and Indonesia 55, 969 (up 64.52 % ).

Ms Sudawan said a total of 13, 897, 988 Thais travelled, generating 50.12 billion ringgit. From&nbsp, April 12- 16&nbsp, only, &nbsp, the big time of the event, 461, 509 international tourists visited the country, generating 21.54 billion baht, while 4, 337, 848 Thai tourists generated 16.48 billion baht- about 38 billion baht in total.

” The Maha Songkran World Water Festival 2024, held at Sanam Luang, was a grand success, drawing huge crowds of people. This event was showcased worldwide and featured the stunning backdrop of the majestic Grand Palace. This was a magnet for foreign tourists” ,&nbsp, the tourism minister said.

Yuan internationalization drive hits a local speed bump – Asia Times

By: Bolen C

On: April 23, 2024

In: Asia

As Taiwanese leader Xi Jinping works to increase the yuan’s role in global business and finance, he’s encountering an unforeseen rate knock: island companies.

Corporate executives are putting their feet down when it comes to converting foreign exchange earnings into local currency, according to new data from the People’s Bank of China ( PBOC).

In March, FX deposits rose to US$ 833 billion from$ 779 billion a month earlier, signaling that businesses are slow-walking moves to swap earnings into their home currency.

The most obvious explanation: higher offshore interest rates that are contributing to a weaker-than-expected yuan.

This enormously positive yield spread is not going to vanish anytime soon, according to Alvin Tan, a currency strategist at RBC Capital Markets.

The US and China rate differential is the most significant since 2007. This important fundamental fact, according to Tan, suffices to explain why Chinese exporters are reluctant to exchange dollars for yuan. ”

Another reason for Beijing’s currency managers to resist the urge to chase a falling yen downward in the months to come. It might have negative effects because it contradicts Xi’s grand plan for “yuanization.” ”

Granted, Xi and Premier Li Qiang have so far resisted the urge to devalue. A weaker exchange rate may be just the thing to boost exports and keep the country’s largest economy from experiencing deflationary strains, but it could also be the thing to keep exports at 5 % and keep deflationary pressures at bay.

There are a variety of reasons why Pan Gongsheng, the governor of the PBOC, and Team Xi have not followed the yen lower.

People’s Bank of China Governor Pan Gongsheng faces a currency dilemma. Image: Twitter Screengrab

For one thing, it would make it more difficult for property development companies to pay offshore bonds, increasing the likelihood of more defaults involving China Evergrande Group. For another, it could make China an even bigger flashpoint ahead of the November 5 US election.

The biggest worry, though, is damaging Xi’s long-term priority to internationalize China ’s currency as an alternative to the US dollar.

According to Dmitry Dolgin, economist at ING Bank, “it appears that China’s expanding trade ties and financial infrastructure suggest that the potential for further yuanization has not been exhausted.”

As the yen drops to 34-year lows, Yoet Xi’s balancing act becomes more challenging. The yen ’s 9. 7 % drop this year alone is n’t making Beijing’s life easier as it struggles to stabilize consumer prices.

A stronger GDP may also give Xi’s reform team more latitude to deal with China’s property crisis, lessen the rate of rising youth unemployment, and lessen runaway local government borrowing.

When Fitch Ratings downgraded China ’s sovereign credit rating to “negative” from “stable ” earlier this month, it listed local and regional governments ’ financial strains among its biggest worries.

Municipalities, Fitch said, “have been affected by the property slowdown and some local government financing vehicles ( LGFVs ) are facing refinancing pressures. ”

According to Fitch, in the past year,” some highly indebted regions were permitted to issue about CNY1.” 4 trillion ($ 193. 5 billion ) in refinancing bonds to bring LGFV debt directly onto their balance sheets. In 2024, we anticipate that this issuance will continue. ”

So far, banks have been requested to support LGFV debt structures through restructurings, while local asset management companies have also stepped in with support, Fitch notes.

China’s Ministry of Finance responded by claiming that Fitch ratings do n’t effectively account for the potential benefits of fiscal policy in terms of fostering economic growth and stabilizing macro leverage. ”

The team led by Finance Minister Lan Fo’an asserts that China’s GDP is increasing by about 5 %. 3 %, contributing more than 30 % to world output.

As such, Beijing claims, “the long-term positive trend of China ’s economy has not changed, nor has the Chinese government’s ability and determination to maintain good sovereign credit. ”

Even so, central banks and international investors are n’t buying yuan assets as much as Xi’s government had hoped.

One reason is the US dollar’s stubborn strength. In February, foreign holdings of US Treasury securities surged to a record — and a fifth straight monthly rise — despite Washington ’s national debt hitting$ 35 trillion.

Photo: Reuters/Jason Lee — As a global reserve currency, the dollar is still in favor. Photo: Agencies

US government debt purchases increased by 8 % on average. 7 % in February alone to$ 7. 965 trillion, up from$ 7. 945 trillion in January as Belgium, Japan, the UK and other top economies loaded up on dollars.

This dollar-hoarding is more than offsetting Beijing’s efforts to reduce US holdings. In February, China ’s stockpile of Treasuries dropped$ 22. 7 billion to$ 775 billion.

The BRICS economies ‘ wider efforts to marginalize the world’s reserve currency are also spooked by dollar purchases.

The governments of Brazil, Russia, India, China and South Africa have n’t been quiet about “de-dollarization ” efforts, with an important assist from Saudi Arabia and other OPEC members.

Given China ’s scale and role as the top trading nation, a pivot from dollars to yuan seems like the most obvious changing-of-the-guard option.

Defined by the BRICS alliance’s desire to dethrone the dollar by persuading developing nations to use local currencies for trade and finance instead.

This determination has only grown more powerful as a result of US President Joe Biden’s administration’s efforts to undermine China’s tech sector and “weaponize” the dollar as part of policies to punish Russia for its invasion of Ukraine.

Christian Lindner, the minister of finance in Germany, warns that the thawing of Russian assets in the wake of Ukraine’s tensions could threaten sovereign immunity and financial stability.

International financial stability may be endangered, according to Lindner. We would lose more in the long run than we would gain. ”

Yet the ditch-the-dollar enterprise seems to have lost momentum, at least for now, as the dollar continues to advance. This month, the DXY index, a key measure of dollar strength, is up nearly 5 % so far this year.

One reason the dollar is confounding the BRICS is the durability of the “higher-for-longer ” era for US yields. Interest rates were expected to be cut by the Federal Reserve between five and seven times this year. Markets now wonder if the Fed will ease at all as inflation proves to be less transient than expected.

Lawrence Summers, the former US Treasury secretary, even wonders if the next move by Chairman Jerome Powell’s Fed might be to hike rates instead. This reversal is causing the yen to fall and keep the yen in decline.

The yuan is n’t alone. India’s rupee recently dropped to an all-time low versus the US dollar. Malaysia’s ringgit is trading near its lowest levels since the 1997-98 Asian financial crisis. The central bank has delayed rate cuts due to concerns about further declines in the Philippine peso.

IMF Managing Director Kristalina Georgieva warned this month that emerging economies are struggling to stem large capital outflows as the International Monetary Fund and World Bank hosted their spring meeting.

The rest of the world’s interest rates are not encouraging, Georgieva asserts. Higher interest rates increase the US’s appeal, making financial flows flow here, which causes the rest of the world to struggle a little bit. ”

Georgieva comes to the conclusion that, if it persists for a long time, it might turn out to be a little uneasy in terms of financial stability. ”

In March, IMF data showed the US dollar accounted for almost 60 % of all global foreign reserves. The share of global foreign reserves in the currency increased by 0 percent. 2 percentage points in 2023.

Despite this, Xi seems as determined as ever to raise the yuan’s reputation worldwide.

In 2016, Xi’s efforts to strengthen the financial system and increase transparency paid off when the yuan was welcomed into the International Monetary Fund ’s “special-drawing rights ” program.

The yuan’s trust increased as a result of joining the most exclusive currency basket with the dollar, yen, euro, and pound.

Since then, its use in finance and trade has increased steadily. In FTSE-Russell’s and MSCI’s stocks indexes and others, Chinese government bonds held a prominent position in that growing role.

However, Chinese assets may lose value because of the yuan’s softness. So do perceptions that In Xi’s next five years, his goals for greater control may outweigh growing Chinese influence. competitiveness and transparency.

The yuan’s potential impact on the world as China modernizes its economy is still a good one. In terms of trade and official aid, there are indications that China Inc. is having doubts about the yuan’s trajectory, which suggests that Xi’s de-dollarization strategy is working better abroad than among Chinese businesses.

One solution is for Xi and Li to intensify reforms in the sectors of the property sector, local government finances, capital markets, and shifting the focus from exports to services and innovation. To increase global trust, Beijing also needs to fully convert the yuan.

China ’s yuan still has a trust problem. Photo: Facebook Screengrab

According to Alexandra Prokopenko, a senior fellow at the Carnegie Russia Eurasia Center, the issue is that “it is believed that the yuan ca n’t become a full-fledged reserve currency because of the current restrictions on capital transactions in China. ” ”

Although Russia and other sizable economies are using the Yuan to boost its status as an international reserve currency, Prokopenko notes that due to structural constraints, it is still a difficult currency to substitute for the dollar.

According to Rodrigo Zeidan, a professor of finance at New York University Shanghai, China cannot permit the flow of capital freely into its economy without running into a second domestic currency crisis. ”

According to him, it is important to see whether China will try to de-dollarize the world economy or to merely hedge against potential US sanctions. China’s access to the latter will remain limited for the foreseeable future. China would have to maintain free capital markets in an effort to de-dollarize. ”

Follow William Pesek on X at @WilliamPesek

Visa-free scheme for Russian visitors extended

By: Barkar Nash

On: April 23, 2024

In: South-East Asia

The 90-day visa-free program that ends at the end of April may be replaced by a 60-day deduction.

PUBLISHED: 23 Apr 2024 at 16 :42

The government approved a 60-day card provision for Russian visitors that will start from May 1 through July 31.

According to government official Chai Wacharonke, the deduction is intended to boost tourism-related profits and boost the economy.

Prior to this, the government had approved a utmost visa-free be for ;;. Russian visitors are expected to visit during the high time for 90 days. That program was scheduled to end this month’s close.

In contrast, the government on Tuesday approved a 30-day card provision for Bangladeshi customers with standard documents, Mr Chai said.

The nation received 9 from January 1 through April 7. 98 million foreign visitors reportedly spent 484 billion ringgit, according to the Ministry of Tourism and Sports.

China had the leading source markets followed by China with 1. 88 million customers, Malaysia ( 1. 24 million ), Russia ( 660,953 ), South Korea ( 588,759 ) and India ( 510,879 ).

Thailand introduced a continuous visa-free travel program in March for Chinese customers. The government approved this month the everlasting erasure of permits for visitors from Kazakhstan.