CARI Captures Issue 552: Three global summits to be held in ASEAN in November
ASEAN
Three global summits to be held in ASEAN in November
(4 May 2022) Southeast Asia is set to host three major global meetings back-to-back in November: Cambodia will host the ASEAN and Related Summits on November 11-13 under the theme “ASEAN ACT: Addressing Challenges Together”, Indonesia will host the G20 Summit on November 15-16 under the theme “Recover Together, Recover Stronger”, and Thailand will host the APEC Economic Leaders’ Meeting on November 18-19 under the theme “Open. Connect. Balance”. The three hosts issued a joint statement this week highlighting their “shared commonalities” and reaffirming their “spirit of cooperation”. Indonesia confirmed last week that it has invited the leaders of both Russia and Ukraine to attend the G20 Summit.
VIETNAM, JAPAN
Japan and Vietnam agree to boost trade and security ties
(1 May 2022) Vietnam and Japan agreed to enhance cooperation in areas of mutual interests during Japanese Prime Minister Fumio Kishida’s official visit to the country, which saw Vietnam pledging to donate US$500,000 in humanitarian aid to Ukraine. Japan agreed to help elevate Vietnam’s maritime and cyber security, establish a website for Vietnamese citizens to obtain technical training and employment in Japan, as well as improve Vietnam’s disaster management capabilities. Vietnam was the second stop on Prime Minister Kishida’s five-country trip following Indonesia and before Thailand, Italy and Britain.
THAILAND, JAPAN
Japan and Thailand announce enhanced cooperation agreements
(2 May 2022) Thailand and Japan signed several agreements during the Japanese premier’s official visit to the country. This included a new defence deal, a US$384 million (50 billion yen) loan to help with the country’s pandemic recovery, as well as pledges to establish more Japanese technical colleges in Thailand and invest up to US$728 million in Thailand’s Eastern Economic Corridor this year. The countries also announced that they are working on a new five-year economic cooperation plan that will be launched at another meeting in Japan later in the year.
THAILAND, JAPAN
Toyota’s Thai unit agrees to boost EV incentives
(29 April 2022) Toyota Motor Thailand has signed on to the Thai government’s electric vehicle (EV) support scheme, availing itself of tax breaks, subsidies and other incentives aimed at making EVs cheaper in the country. Toyota is the third automaker to sign on to the scheme after China’s Great Wall Motor and SAIC-CP Motor, with at least five more automakers expected to sign on this year. Thailand is currently the largest automobile manufacturer in ASEAN and the 11th largest worldwide, and the Thai government hopes to produce 725,000 EV units per year—or 30% of global output—by 2030.
MYANMAR
Malaysia, Thailand, Japan withdraw from Myanmar gas project
(2 May 2022) Malaysia’s Petronas, Thailand’s PTTEP and Japan’s ENEOS announced that they are pulling out from Myanmar’s Yetagun natural gas project. While Petronas cited techno-commercial reasons and PTTEP said that it hopes to refocus on projects to ensure Thailand’s domestic energy security, ENEOS went a step further by citing “social issues” in addition to commercial reasons. The future of the nearly-depleted field remains unknown. Other international companies who have withdrawn from Myanmar include US’ Chevron, France’s Total Energies and Voltalia, Norway’s Telenor, Britain’s British American Tobacco, and Japan’s Kirin.
MALAYSIA
Malaysia awards digital bank licences to five groups
(29 April 2022) Malaysia’s central bank awarded digital banking licences to five groups of companies after reviewing the 29 applications it received for the licences. The awardees were Axiata’s fintech arm Boost and RHB Bank, Sea and YTL Digital Capital, Grab and Singtel’s GXS Bank, as well as two consortia led by Aeon Financial Service and KAF Investment Bank which will be licensed under Malaysia’s Islamic Financial Services Act. The five groups will be required to go through a 12 to 24-month period of operational readiness audited by the central bank before operating commercially.
THAILAND, SINGAPORE
ThaiBev renews plan for IPO of regional beer assets in Singapore
(5 May 2022) Thai Beverage Plc announced that it is looking to sell up to a 20% stake in its regional beer business BeerCo through a Singapore initial public offering (IPO). While ThaiBev declined to comment on the amount it wishes to raise, the Bangkok Post’s source says that the company is looking to raise around US$2 billion, while sources quoted by The Straits Times said that the amount would be closer to US$800 million or US$1 billion. ThaiBev is one of the largest drinks producers in Southeast Asia with a market valuation of around US$12.76 billion.
RCEP Monitor
SOUTH KOREA, INDONESIA
Hyundai expands its market share in Indonesia with EVs
(5 May 2022) Hyundai Motor sold 605 Ioniq 5s and Kona SUVs in Indonesia in 2021, accounting for 87% of the country’s all-electric vehicle market which accounts for less than 0.1% of the country’s total car sales. Nevertheless, the South Korean carmaker is optimistic about the headway it has made in this segment, especially with a new EV battery factory in Indonesia set to commence operations in 2024. Japanese carmakers have traditionally dominated Southeast Asian markets, with Toyota, Mitsubishi, Suzuki, Isuzu and Honda accounting for 94% of Indonesia’s car market share in 2021.
SOUTH KOREA, LAOS
More Lao nationals find employment in South Korea
(5 May 2022) An increasing number of Lao citizens are finding employment in South Korea’s industries sector and small and medium enterprises (SMEs) with workers earning a minimum of US$1,600 to US$2,000 a month plus social welfare benefits. Some 500 Lao citizens are selected for employment each year after they pass competency and Korean language tests, though those who wish to work in the country’s agriculture sector need not undergo such tests. Korea mostly hires workers from Vietnam, the Philippines and Indonesia, while Lao citizens mostly find work in Thailand.
CHINA
China factory activity falls to lowest in two years
(30 April 2022) Factory activity in China reached its lowest in two years in April 2022 due to COVID-19 outbreaks and the country’s zero-COVID policy. The Chinese government’s manufacturing purchasing managers’ index declined to 47.4 points from the previous month’s 49.5 points, while its non-manufacturing index plunged to 41.9 points from the previous month’s 48.4. The sharp decline in activity was attributed to the lockdowns affecting large swaths of the population which led to a drop in consumer spending, logistics bottlenecks and mobility curbs, and outbreaks that have forced companies to reduce or stop production.