CARI Captures Issue 637: Lao PDR frames its 2024 ASEAN Chairmanship as ‘Enhancing Connectivity and Resilience’

LAO PDR, ASEAN
Lao PDR frames the theme of its 2024 ASEAN Chairmanship as ‘Enhancing Connectivity and Resilience’
(21 December 2023) Lao PDR has framed the theme of its 2024 ASEAN Chairmanship as ‘Enhancing Connectivity and Resilience’. At the Chairmanship handover ceremony in September 2023, Lao PDR’s Prime Minister Sonexay Siphandone highlighted that Vientiene would focus on further consolidating the ASEAN Community including enhancing connectivity and economic integration, narrowing the development gap, advancing digital transformation, promoting people-to-people-exchanges, as well as promoting climate resilience and health development. In preparation for its Chairmanship, Laotian authorities have started work on the necessary infrastructure including improving roads and airports, meeting venues, communication and internet facilities, tourism destinations, and accommodation. ASEAN Dialogue Partners have also offered their support, such as through the provision of vehicles and IT systems, capacity building, and English language training.

MALAYSIA
28,310 people evacuated due to flooding in six states
(27 December 2023) According to Malaysia’s National Disaster Management Agency (Nadma), flooding has hit a total of six states in Malaysia, with the number of evacuees as of 6 AM on 27 December, 2023 rising to 28,310 people compared to 25,938 on the evening of 26 December. Kelantan remains the state with the highest number of evacuees at 17,466, who have been placed in 89 temporary relief centres. This is an increase from the 15,145 evacuees housed in 92 centres at 4 PM the day prior. In neighboring Terengganu, the number of flood victims was recorded at 10,103. Johor and Sabah state were the latest states to be impacted by flooding.

SINGAPORE
Annual vessel arrival tonnage at Port of Singapore in 2023 hits over 3 billion gross tonnage
(26 December 2023) According to the Maritime and Port Authority of Singapore (MPA), the annual vessel arrival tonnage – a measure of the traffic of vessels – at the Port of Singapore for 2023 hit just over 3 billion gross tonnage in 2023. This is compared to the 2.83 billion gross tonnage recorded in 2022. The Port of Singapore had previously reached 1 billion gross tonnage in 2004 and 2 billion gross tonnage in 2011. Singapore’s Acting Minister for Transport noted that the 3 billion gross tonnage breakthrough was significant given the maritime industry’s downturn in 2016 and supply chain disruptions resulting from the COVID-19 pandemic.

SINGAPORE
Core inflation eases slightly to 3.2% year-on-year in November 2023
(26 December 2023) According to a joint statement by the Monetary Authority of Singapore (MAS) and the ministry of trade and industry, Singapore’s core inflation eased slightly to 3.2% year-on-year in November 2023, compared to the 3.3% growth recorded in October 2023. This slowdown was attributed to lower inflation for retail and other goods, food, as well as electricity and gas. Core inflation excludes private road transport and accommodation. This slowdown will provide the MAS room to extend its monetary-policy pause during its next monetary decision due in late January 2024. The MAS has kept its policy stance unchanged at its two scheduled reviews in 2023 after tightening settings five times between October 2021 and 2022.

THAILAND
Thailand to increase its minimum wage in January 2023, to raise it further in March
(26 December 2023) Thailand’s government has confirmed it will raise its minimum wage in January 2023 while also planning to raise it further in March 2023. While a wage committee had previously agreed to increase the daily minimum wage by 2.37%, effective in January 2024, Prime Minister Srettha Thavisin had deemed the hike too low. While the government will now commit to the previous deal, the committee will meet in January to seek a further wage hike. Thailand’s ruling Pheu Thai party campaigned on a populist platform with a key plank of raising the daily minimum wage to US$11.61, despite concerns by business groups over competitiveness.

VIET NAM
Vietnamese gaming company VNG seeks listing in New York City
(24 December 2023) Vietnamese gaming company VNG is seeking a listing on the Nasdaq in New York City as it seeks to become a global gaming company. The company, based in Ho Chi Minh City, was founded in 2004 as Vinagame and has grown to become Viet Nam’s leading game publisher. The company has expanded to other areas as well, running a digital wallet, cloud services, and Viet Nam’s most popular messaging platform. Gaming remains a big part of the company’s operations, with 80% of revenue still earned in that division. The company publishes some 10 games a year in Viet Nam and other parts of Southeast Asia, and is seeking to expand into other markets such as Latin America and the Middle East.

SINGAPORE
Nightclub operator Zouk eyeing opening new clubs in New York, Miami and Dubai
(25 December 2023) Singapore-based nightclub and entertainment operator Zouk is eyeing new markets to open clubs, including New York, Miami, and Dubai. The nightlife brand had recently secured deals for venues in Tokyo and Los Angeles. Zouk opened its first nightclub in Singapore in 1991, before proceeding to open Zouk Genting nightclub in the Malaysian resort town of Genting Highlands in 2019. Zouk was previously owned by Malaysian gaming and resorts conglomerate Genting Hong Kong, before being sold to Tulipa, another Malaysian company. The CEO of Zouk noted that spending is currently down 20% to 30% from the previous year.

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JAPAN
Japan preparing regulations to require tech giants to allow third-party app platforms and billing
(27 December 2023) Japan is currently preparing regulations that will require tech giants like Google and Apple to allow outside app stores and payments on their mobile operating systems. These antitrust laws are aimed at tackling the abuse of these tech giant’s dominant position within the Japanese market. The proposed legislation is slated to be sent to parliament in 2024 and would focus on restricting moves by platform operators to keep users in the operators’ own ecosystems while shutting out rivals, focusing mainly on the four areas of app stores and payments, search engines, browsers, and operating systems. The plan will allow the Japan Fair Trade Commission to impose fines for violations.

CHINA
China approves 105 domestic games in sign of softening stance towards gaming industry
(25 December 2023) On 25 December, 2023, China approved 105 domestic games in the latest sign of Chinese authorities softening its stance towards the gaming industry after its move to tighten industry restrictions led to a US$80 billion rout last week. On 22 December, 2023, the top gaming regulator National Press and Publication Administration announced new rules to limit the development of online games, including an unspecified cap on spending by adult players. This announcement rekindled fears of a new tech crackdown by the Chinese state. China’s leading game publishers Tencent Holdings Ltd. and NetEase Inc. saw their market value plunge after the announcement was made.

CHINA
Earthquake causes US$74.6 million worth of damage in northwestern province of Gansu
(24 December 2023) A 6.2 magnitude earthquake has caused US$74.6 million worth of direct economic losses in the northwestern province of Gansu, which hosted the epicenter. Officials estimated that the earthquake inflicted losses that included US$48.27 million on animal husbandry and US$14.28 million on crop production. As of 22 December, 2023, the earthquake has reportedly killed 148 people and injured 781. The earthquake is set to further burden the finances of Gansu, an underdeveloped province whose economic output ranked 27th out of 31 Chinese provinces and municipalities as of 2022.