Asia currencies: Stronger after four years of decline

ANALISYS - Khoon Goh
December 12, 2017

Bank of Korea and Bank Negara Malaysia have turned hawkish in recent statements, laying the groundwork for interest rate increases . . .

AFTER FOUR YEARS of depreciation, Asian currencies put in a much stronger performance in 2017. Our Asian currency index shows a gain of 4.6% year-to-date against the U.S. dollar. 

How Asian currencies fare in 2018 will depend on which of two contrasting forces dominates: (i) the effect of policy normalisation in the major advanced economies on capital flows to emerging markets; or (ii) a strengthening and broadening of Asian economic growth with export recovery spilling over into domestic demand.

China traders offer 5% discount for RMB settlements

August 22, 2013

HONG KONG – A new HSBC survey has found that 54 per cent of Chinese businesses will offer discounts of up to five per cent for transactions settled in RMB.
“There are very real monetary benefits for businesses using the RMB – a five per cent saving across a buyer’s total China spend could be quite significant,” says Simon Constantinides, HSBC’s Regional Head of Global Trade and Receivables Finance.

Will poor schooling hold Thailand in the middle- income trap?

July 30, 2013

POLITICS, says Narongchai Akrasanee, is holding the Thailand economy back, but a more deep-seated, underlying problem is the nation’s education system. Narongchai, a former Thai Commerce Minister and well-known economist on the international stage, says that between 10 million and 15 million Thais are not fully employed because Thailand’s education system is not able to produce the workers required by industry. And stop-gap solutions, such as companies filling staff needs by establishing their own education centres, will not solve the long-term problems of the country. He also worries that political fighting will break out again . . . 

First listings for APX likely later this year

July 30, 2013

DUE DILIGENCE and regulatory compliance work is being undertaken on the first batch of some 10 Chinese companies — ranging from high-tech to manufacturing and logistics — to list on Australia’s newest exchange, the Asia Pacific Exchange (APX).

Documentation for the first company to be listed is well advanced and expected to be completed within the next few months for listing before the end of the year. Australian’s Federal Government announced new Market Integrity Rules for the Exchange recently, paving the way for to become operational.

What investors want to see in infrastructure financing

July 9, 2013

AN equitable investment environment, supported by rule of law, will be crucial to attract international investment to large infrastructure projects in Asia, says Julian Vella. Head of KPMG’s Asia Pacific Infrastructure practice.
“The big challenge is to create an environment where the private sector is comfortable,” says Vella, giving as examples same high-profile instances of investors being exposed to significant risks in China and Mongolia.
Mongolia is attractive to international mining companies because of its rich reserves of coal, copper and other resources. But the risks are high. It took Rio Tinto six years to conclude negotiations on a mining agreement.