Sunday, December 3 2023 | ASIA TODAY INTERNATIONAL - Reporting the Business that Matters in Asia
HONG KONG -- Northern Hong Kong will be built into a 300-square-kilometre metropolis positioned as an international innovation and technology (I&T) hub. The Northern Metropolis will involve development of the San Tin Technopole.
SINGAPORE -- Thailand's prolonged battle with COVID-19 will cause permanent losses for the economy, putting strain on banks, says ratings agency Standard and Poors. But policy flexibility and fiscal support is helping mitigate the fallout.
TAIPEI - ANZ Bank has revised upwards its GDP growth forecasts for Taiwan to 6.0% in 2021 and 3.8% in 2022, thanks to strong investment (27.97% y/y) during the third quarter.
NEW DELHI -- Following an interim agreement which will be signed prior to Christmas 2021, India and Australia will sign a Comprehensive Economic Cooperation Agreement (CECA) by the end of 2022. Covering trade in goods and services, the comprehensive agreement will also include a pact on investments.
HONG KONG - Going beyond 2021, there are three main factors challenging the strength of the Hong Kong economy, says the global financial group Natixis, which expects a steep fall in Hong Kong's GDP in 2022.
HANOI - Vietnam's Prime Minister, Pham Minh Chinh, has signed off amendments to the Investment Law which provide Special Investment Incentives for a number of new and expanded projects. These include innovation centres and research and development (R&D) centres with total investment capital of VND 3,000 billion (US$130 billion)1 or more, of which at least VND 1,000 billion (US$43 billion) is disbursed within three years from the date of the investment registration certificate (IRC) or approval of investment policy.
SEOUL -- South Korea's recovery slowed in the third quarter after an impressive surge in Q2. Sequentially, headline GDP growth came in at 0.3% q/q,translating into an annual rise of 4%. In a briefing note, ANZ Bank says the slowdown arose mainly from a quarterly dip in private consumption and investment. Exports, meanwhile, strengthened, allaying some concerns over supply side shortages in key industries such as electronics and autos.
TAIPEI -- President Tsai Ing-wen has reaffirmed the Government's commitment to developing Taiwan's semiconductor industry as it builds the country into an advanced manufacturing hub -- while safeguarding its position in global supply chains.
BEIJING - The Chinese Government has released a draft of far-reaching changes to Antimonopoly Law, signalling tougher enforcement. In Client Alert, lawyers Baker McKenzie say the proposed reforms follow earlier draft changes published in January 2020.
HONG KONG -- China's GDP grew a weaker-than-expected 4.9% y/y in Q3, a figure which is not consistent with the economy's sequential growth and the dip in the jobless rate during the quarter, according to ANZ Bank.
HONG KONG - China's Q3 GDP figures together with September real economic indicators have further confirmed a continuing moderation of year-on-year growth momentum, and Chinese authorities will need to strike a balance between stimulating growth and pressing ahead with structural reforms, says BBVA Bank.
MELBOURNE -- S&P Global Ratings believes the troubles of Evergrande hint at credit strains simmering among Chinese corporates, and a strong resolve by the Government to tackle this issue. S&P says a survey involving 25,000-plus global entities reveals that the leverage levels of China's corporate sector are significantly above the global average. "It is a US$27 trillion problem that is increasingly getting the attention of Beijing," says S&P.
LONDON -- The 24th annual trade talks between Taiwan and the U.K. were held this week via videoconference. The U.K. is Taiwan's third largest trading partner in Europe, and a leading source of foreign investment, which stood at an accumulated US$10.7 billion as of August 31.
HONG KONG - ANZ Bank is forecasting China's Producer Price Index (PPI), the average increase in selling prices received by Chinese domestic producers of goods and services, to peak at a level of 12% in the fourth quarter of 2021, lifting China's annual PPI for 2021 to 7.5%. Prices are being driven by higher energy prices.
HO CHI MINH CITY -- Tough restrictions to curb COVID-19 infections in Vietnam resulted in Q3 GDP growth contracting sharply by 6.17% y/y, affecting all aspects of the economy.
As a result, ANZ Bank has revised downwards its ful- year 2021 GDP growth forecast to 1.4%, from 3.6% previously.
JAKARTA - Indonesia's Parliament has approved a new tax law, which, according to ANZ Bank researchers, signals Indonesia's commitment to fiscal discipline -- and paves the way towards a more credible consolidation path.