Photo Credit: The Star Online
Economy, Investment and Trade
Malaysian steel companies benefit from China’s clampdown
(15 September 2017) Steel companies listed on Bursa Malaysia continue to be on the uptrend as China looks to reduce its steel output and clamps down on illegal steel mills. Malaysian Iron and Steel Industry Federation president Datuk Soh Thian Lai stated that China has already cut down its steel production by 100 million tonnes in the past two years. UOB KayHian Research steel analyst Abdul Hadi Manaf said that oversupply in steel from China is no longer an issue as the Chinese government has stricter supply and environmental controls.
Singapore has potential to boost yuan internationalisation
(16 September 2017) Dr. Raymond Yeung, chief economist of Greater China at the Australia and New Zealand Banking Group, says the usage of China’s currency, the yuan as a trade currency between China and Singapore could improve the internationalisation of the yuan. Dr Yeung also noted that usage of the yuan can eliminate the risk of losses stemming from the shift in exchange rate between the US dollar and the yuan. Dr Yeung said Singapore is well-placed to boost the use of the yuan, given that it has competitiveness in currency trading, and a low tax rate for financial and treasury centres of global corporations.
Cambodia, China to agree on nuclear energy cooperation
(13 September 2017) Cambodia signed a memorandum of understanding with China National Nuclear Corporation (CNNC) on cooperation in the peaceful use of nuclear energy during the 14th China-ASEAN Expo and China-ASEAN Business and Investment Summit held in Nanning, China. According to CNNC, Cambodia’s current power supply cannot meet its basic electricity needs, and will require a comprehensive upgrade in order to meet expanding industries. In mid-2016, Cambodia’s Ministry of Industry, Mines and Energy held discussions with CNNC on building a nuclear power plant and establishing corresponding regulatory and legal infrastructure, in collaboration with the International Atomic Energy Agency.
Singapore, China to agree on dispute mediation
(19 September 2017) The Singapore International Mediation Centre and the Mediation Center of the China Council for the Promotion of International Trade / China Chamber of International Commerce signed a Memorandum of Understanding to work together to help businesses resolve disputes that may arise under China’s Belt and Road Initiative. Deputy Secretary of Singapore’s Ministry of Law Han Kok Juan commended the agreement, stating that it will create a framework that resolves any disputes that may arise under the Belt and Road Initiative based on rule of law.
Malaysian sales at 14th China-ASEAN Expo exceeds target
(15 September 2017) Malaysian entrepreneurs succeeded in making US$96.8 million worth of sales at the 14th China-ASEAN Expo (CAEXPO), exceeding the initial target of US$83.5 million by 16 per cent. Malaysia External Trade Development Corporation (Matrade) director (China unit) Ong Yew Chee said that the food and beverage cluster was the top performer at CAEXPO with approximately US$64.1 million in sales, compared to last year’s US$40.5 million. The four-day expo, which has been organised annually in Nanning since 2004, is a platform to promote cooperation between China and Asean in the fields of trade, investment and tourism.