Mekong Monitor: Investors concerned over Thai economy due to political instability and COVID-19

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Mekong Monitor: Investors concerned over Thai economy due to political instability and COVID-19

Photo Credit: Reuters

TRADE, ECONOMY, AND INVESTMENT

THAILAND

Investors concerned over Thai economy due to political instability and COVID-19
(3 September 2020) Global investors are increasingly worried over the future prospects of the Thai economy due to both the economic impact of COVID-19 (with Thailand suffering its worst contraction in the last two decades in the second quarter of 2020) and political instability related to student protests. There have also been disruptions to the Thai government’s policy agenda by the recent resignation of Finance Minister Predee Daochai. The Thai baht dropped about 0.6% on the dollar between 1 and 2 September 2020, its steepest two-day slide in about two weeks, while its stock market is down 17% for 2020, having suffered foreign outflows every month until August 2020. Long-dated government bonds in Thailand have also seen a global sell-off.
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THAILAND

Thai government announces US$2.2 billion worth of fiscal stimulus in light of COVID-19
(2 September 2020) The Thai government announced on 2 September a US$2.2 billion worth of fiscal stimulus in cash handouts and job measures to support the Thai economy, which has been severely affected by the COVID-19 pandemic. The government plans to spend US$1.4 billion on 3,000 cash handouts for 15 million people to boost domestic consumption, as well as US$750.4 million to help fund the private sector’s hiring of 260,000 new graduates for a year. The government intends to continue introducing additional measures to help domestic activity and investments. These measures are part of the US$60.7 billion COVID-19 response package to help the economy.
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MYANMAR, INDIA

India-Myanmar Chamber of Commerce claims Indian investors interested in tapping into Myanmar
(2 September 2020) Investors from India are interested in investing in Myanmar, despite travel restrictions and other restrictions, according to the India-Myanmar Chamber of Commerce (IMCC). The IMCC has conducted several virtual fairs with both the Confederation of Indian Industry and the Federation of Indian Chambers of Commerce and Industry to highlight growth opportunities in Myanmar. The majority of Indian businesses are reportedly interested in growing beans and pulses in Upper Myanmar. As of now, most Indian investments into Myanmar have been in the oil and gas sector. The IMCC has urged the Myanmar government to level the playing field for Indian investors, including in terms of greater transparency and clarity with regards to big projects in the country.
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CAMBODIA

Cambodian rice exports rise 31.0% year-on-year in first eight months of 2020
(1 September 2020) Cambodia’s rice exports rose 31.05% year-on-year in the first eight months of 2020, reaching 448,203 tonnes, according to the country’s National Phytosanitary database of the Ministry of Agriculture, Forestry and Fisheries. However, in August 2020, rice exports only reached 22,130 tonnes, as compared to 34,032 tonnes in August 2019. Cambodia’s total rice export consisted of fragrant rice (352,802 tonnes), white rice (89,699 tonnes), parboiled rice (5,679 tonnes) and others (23 tonnes). China was Cambodia’s top rice export market, with 159,253 tonnes exported in the first eight months of 2020. Among ASEAN countries, Malaysia imported about 23,201 tonnes of rice from Cambodia; Vietnam, 12,836 tonnes; and Brunei, 10,500 tonnes.
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VIETNAM

E-payment solutions provider aims to raise US$60-100 million in pre-IPO placement
(31 August 2020) Vietnamese e-payment solutions provider NextPay Holdings is considering a pre-IPO placement to raise around US$60-100 million in the first quarter of 2021, ahead of a planned stock market listing in 2022. The company is in talks with five investors from the US, Japan and South Korea for the private placement, and will offer them a 20% stake in the company. Proceeds from the private placement will be used to broaden NextPay’s merchant network in Vietnam and expand in overseas markets including Indonesia and Myanmar. The company plans to raise US$100 million when it debuts on the Vietnamese stock exchange in 2022. NextPay was formed in June 2019 and has 1.5 million e-wallet users and more than 35,000 acceptance points across 45 cities.
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About Greater Mekong Subregion (GMS)

The Greater Mekong Subregion (GMS) Economic Programme was launched by the Asian Development Bank in 1992 connecting five developing ASEAN countries, namely Cambodia, Laos, Myanmar, Vietnam and Thailand, and Chinese provinces of Yunnan and Guangxi Zhuang Autonomous region. The region has some of the most robust economies sharing the Mekong River Basin thanks to its reform and liberalisation. The subregion is growing at a faster pace than the whole of East Asia and the Asia Pacific as the GDP growth rate for 2017 was at 6.4 percent, according to the World Bank. The population at the subregion as of 2016 is at 340 million while the GDP at PPP is at US$3.1 trillion in 2016. In 2015, trading within the region was at US$444 billion.

China-ASEAN Monitor: Myanmar wholesalers on China border face new restrictions

Photo Credit: Shan News

TRADE, ECONOMY, AND INVESTMENT

Myanmar wholesalers on China border face new restrictions
(1 September 2020) The Chinese government has imposed new restrictions on Myanmar wholesale distributors on the China border, in a move that Myanmar nationals say makes it difficult for them to continue their work. The new law was introduced on 25 August in Jiegao, a free-trade zone just under four miles south of Ruili in Yunnan Province, allowing only Chinese nationals to run wholesale stores there. Jiegao is located across the border from Muse in Shan state. While Chinese nationals can have a Burmese counterpart in their wholesale operations, the registration fee for the Burmese national is more than US$73,000 (nearly 100 million kyat). Wholesalers from Myanmar are urging the respective authorities to build a venue for them to sell their goods in Muse, on the Shan side of the border.
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China’s top foreign policy official to visit Myanmar
(31 August 2020) China’s top diplomat is planning to visit Myanmar this week, according to the Chinese Embassy in Yangon. Yang Jiechi of the Political Bureau of the Communist Party’s Central Committee and the director of the Office of the Central Commission for Foreign Affairs is expected to visit Myanmar, Spain and Greece from 1-4 September. Yang previously accompanied President Xi Jinping on his trip to Naypyitaw in January 2020. According to a political analyst quoted by a local news outlet, Yang is the third most important person in the Foreign Affairs Commission after Xi and Li Keqiang, premier of the State Council of China. His visit would aim to enhance cooperation on the China-Myanmar Economic Corridor (CMEC), which is a part of China’s ambitious Belt and Road Initiative.
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The Philippines to join China’s international services trade fair online in September 2020
(28 August 2020) The Philippines will participate via online in the China International Fair for Trade in Services (CIFTIS) scheduled to be held in early September in Beijing, the Philippine’ Department of Trade and Industry (DTI) said in a statement on 28 August. According to DTI, the Philippine exhibitors will include 18 companies, five private sector associations, and three government agencies from the following sectors: construction and engineering outsourcing; IT-enabled services such as Business Process Outsourcing (BPO); Customer Relationship Management; animation and game development; e-learning and training; film production and visual effects; and higher education services.
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Indonesian president expresses hope for stronger, mutually beneficial ties with China
(1 September 2020) Indonesian President Joko “Jokowi” Widodo has expressed his hope for a stronger relationship with China during a phone call with Chinese President Xi Jinping on 31 August. Jokowi made the phone call after Xi sent a letter to mark the two countries 70 years of bilateral relations. During the call, Jokowi also expressed his appreciation to the Chinese government for recently welcoming high-level Indonesian government officials to discuss several cooperation deals in healthcare and the economy. Jokowi further asserted that economic cooperation should not stop despite the current COVID-19 pandemic, as seen in the arrangement of a travel corridor between the two countries on 21 August in order to facilitate essential and urgent business trips.
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ASEAN and China enhance trade links
(27 August 2020) Delegates at the 19th consultations within the framework of the 52nd Meeting of ASEAN Economic Ministers (AEM-52) shared the view that China has been ASEAN’s largest trade partner since 2009, with preliminary data showing total merchandise trade amounting to US$507.9 billion in 2019, or 18% of the bloc’s total trade. FDI inflows to ASEAN reached US$9.1 trillion in 2019, accounting for 5.7% of ASEAN’s total FDI. At the virtual meeting held on 27 August, ASEAN economic ministers met with representatives from China’s Ministry of Commerce. The year 2020 marks the 10th anniversary of ASEAN-China comprehensive economic ties, with the ASEAN-China Free Trade Area put into operation comprehensively. Delegates reached consensus on the next steps to deal with shortcomings in the cooperative programme in the time ahead. The ministers also said the Regional Comprehensive Economic Partnership (RCEP) agreement remained a top priority of ASEAN.
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CARI Captures 468: Thailand and Malaysia ranked as the top two best countries to start a business

ASEAN

Thailand and Malaysia ranked as the top two best countries to start a business
(25 August 2020) Thailand topped the list of US News & World Report’s Best Countries to Start a Business ranking for the second consecutive year while Malaysia moved up three spots to second place. Countries were ranked based on scores from nearly 6,000 business decision-makers in a compilation of five attributes: affordability, bureaucracy, low manufacturing costs, connecting with the rest of the world, and easy access to capital. Singapore remained in fourth place while the Philippines, Indonesia and Vietnam improved in rankings. Only Myanmar fell in the rankings, from 41st in 2019 to 46th place this year. According to the report, starting a business in Thailand took six days and required five procedures, namely, reserving a company name, putting capital in a bank, registration of a new company, registration for value added tax, and submitting employee registration.

ASEAN

ASEAN ministers review region’s economic plans
(27 August 2020) Economic ministers at the 52nd ASEAN Economic Ministers’ Meeting (AEM-52) chaired by Vietnamese Minister of Industry and Trade Tran Tuan Anh reviewed the implementation of economic initiatives in 2020. The ministers looked at the region’s response to COVID-19, including its ability to roll out a comprehensive recovery plan, and exchanged views on recommendations submitted by the special group in charge of ASEAN’s economic integration. Other matters debated included the upcoming negotiations over the Regional Comprehensive Economic Partnership (RCEP) agreement and the implementation of the ASEAN Economic Community Blueprint 2025. At the 8th Regional Comprehensive Economic Partnership (RCEP) Ministerial Meeting held virtually on 27 August, economic ministers of 15 member countries, aimed to promote talks on the RCEP towards the signing of the agreement in late 2020 and re-affirmed that the RCEP negotiations remain open to India.

ASEAN, MYANMAR

ASEAN-Myanmar trade reaches US$9.9 billion in first nine months of FY 2019/2020
(19 August 2020) Trade between Myanmar and other ASEAN countries reached US$9.9 billion in the first nine months of Myanmar’s fiscal year 2019/2020, according to data released by the Myanmar Ministry of Commerce on 19 August. Between 1 October 2019 and 30 June 2020, Myanmar exported more than US$3.6 billion worth of goods to ASEAN countries and imported over US$6.3 billion. During the period, Myanmar’s top three trading partners among ASEAN countries based on trade values were Thailand (US$3.9 billion), Singapore (US$3.3 billion) and Malaysia (US$1 billion). Among the remaining ASEAN countries, Myanmar’s trade was estimated as follows: Indonesia (US$936.5 million), Vietnam (US$609.47 million), the Philippines (US$122.74 million), Cambodia (US$25.7 million), Laos (US$1.3 million) and Brunei (US$0.31 million). Myanmar’s main exports consist of agricultural, fishery products, minerals, and manufacturing goods, while the country’s main imports comprised capital goods, intermediate goods and consumer goods.

INDONESIA

Indonesia receives assistance from Green Climate Fund to fight climate change
(27 August 2020) Indonesia has received an injection of cash from the United Nation’s Green Climate Fund to help reduce carbon emissions and tackle forest fires at a time when the country has had to scale back spending in the area due to COVID-19. According to Environment and Forestry Minister Siti Nurbaya Bakar, the US$103.8 million fund was granted under the REDD+ programme, a U.N.-backed forestry conservation scheme to tackle climate change, based on progress the country has made between 2014 and 2016. Nurbaya said in a virtual briefing on 27 August that controlling fires was an important part in reducing deforestation. Data from the environment and forestry ministry showed that between January and July 2020, around 64,000 hectares have been burned, compared with 137,000 hectares over the same period in 2019. Indonesia aims to slash carbon emissions by 29% by 2030 on its own, or by 41%, with international assistance.

INDONESIA

Government hopes development of new capital will restart in 2021
(27 August 2020) Indonesia’s National Development Planning Minister Suharso Monoarfa said that development of Indonesia’s new capital, which was meant to begin this year but was stopped by COVID-19, is expected to begin in 2021. According to Suharso, investors are still interested in the project, and invited other ASEAN countries to invest into the new capital as well. Even though there is currently no construction work in progress, he explained that the master plan is still being worked on. “The detailed plan will follow, then we will include basic infrastructure works in cities that will support the future capital of the country, for example, Balikpapan, Samarinda,” he said. The project to construct Indonesia’s new capital in the districts of Penajam Paser Utara and Kutai Kartanegara in East Kalimantan province will cost around US$32 billion. The central administration is expected to be transferred from Jakarta to the new capital by 2024.

SINGAPORE

New ruling on foreign workers to focus on quality instead of quantity
(28 August 2020) New rules to limit foreign workers will focus on quality instead of quantity, while Singapore will remain “open and connected” as a financial hub, said Trade & Industry Minister Chan Chun Sing. On 27 August, Singapore announced increases in the minimum salaries for employment and S-pass holders, which would make it harder for firms to hire foreigners over locals. Employment pass holders must now earn US$3,293 (S$4,500) a month, up from US$2,860 (S$3,900), and S-pass holders must meet a US$1,800 (S$2,500) threshold instead of US$1,760 (S$2,400). Singapore’s private sector has been under pressure to balance its local and foreign workforce. The Monetary Authority of Singapore stated last week that it would intensify its engagement with the financial firms on their hiring practices to expand the Singaporean workforce.

MALAYSIA

Malaysia may keep its borders closed to international tourists until 2Q2021
(26 August 2020) Malaysia’s Minister of Tourism, Arts, and Culture Nancy Shukri stated recently that Malaysia may keep its borders closed to international travel until the second quarter of 2020. This follows a call made by the director-general of Malaysia’s health ministry Noor Hisham Abdullah on 25 August for a halt to further reopening of Malaysia’s borders in favour of a renewed clampdown to safeguard Malaysians. The remarks were made in view of COVID-19 infection spikes in countries that initially had it under control. For the first six months of 2020, Malaysia recorded a 68% drop in international tourist arrivals from the same period last year while inbound tourist receipts fell by 71% year-on-year. For the full year, Malaysia is projecting a more than 75% reduction in international visitors and expenditures, while domestic trips and expenditure will see a nearly 30% reduction.

THAILAND

Thai PM in talks with state agencies on how to reopen tourism sector after COVID-19
(27 August 2020) Thai Prime Minister Prayut Chan-O-Cha announced that he is in talks with state agencies on how to open the country to foreign tourists after the COVID-19 situation improves. Matters discussed included the timings for reopenings and which provinces will be the first to open for foreign tourists. The first phase may see a limited number of tourists allowed into the country and their areas of travel restricted. The Thai Hotel Association (THA) urged the government to reopen the country to foreigners, as hotels struggle with near-zero occupancy rates. Thai Airways International Plc (THAI) announced that it is ready to arrange special direct charter flights from six countries to Phuket. The airline can make two flights per month to Denmark, Germany, the UK, South Korea, Japan and Hong Kong.

VIETNAM

Volume of goods through Vietnam’s seaports increases
(27 August 2020) The total output of goods that went through Vietnamese seaports in the first eight months of 2020 increased 6% year-on-year despite the impact of the COVID-19 pandemic, according to statistics from the Vietnam Maritime Administration. The volume of container cargo reached nearly 14 million twenty-foot equivalent units (TEUs), an increase of 8% over the same period in 2019 while container cargo reached more than 1.7 million TEUs in August, equivalent to a 7% year-on-year increase. Some seaport areas saw a rapid growth in volume growth, such as Quang Trị Port with more than 73% increase, and Quang Ngai with over 43% increase. Other seaport areas in Nam Dịnh, Can Tho, Thanh Hoa, and Thai Bình also saw increases of between 20% and 32% over the same period last year.

VIETNAM

US Treasury Department claims Vietnam deliberately devalued currency in 2019
(26 August 2020) An investigation by the US Treasury Department argued that Vietnam had deliberately devalued its currency by about 4.7% against the dollar in 2019. The State Bank of Vietnam was believed to have facilitated net purchases of about US$22 billion worth of foreign exchange in 2019, which undervalued the dong in the range of 4.2% to 5.2%. Vietnam’s real effective exchange rate was also estimated to have been pushed down by 3.5% to 4.8%. A new federal rule in the US allows the Commerce Department to treat currency devaluation as a factor in determining countervailing duties on a trading partner. Vietnam could be cited by the US for a second violation in their semi-annual reports on foreign exchange policies of trading partners. Countries with two violations are added to a monitoring list.

Mekong Monitor: CLMV ministers endorse action plan on economic cooperation for 2020/2021

Photo Credit: VNA

TRADE, ECONOMY, AND INVESTMENT

CAMBODIA, LAOS, MYANMAR, VIETNAM

CLMV ministers endorse action plan on economic cooperation for 2020/2021
(25 August 2020) The economic ministers of Cambodia, Laos, Myanmar and Vietnam endorsed an action plan on economic cooperation for 2020/2021 at the 12th Cambodia, Laos, Myanmar and Vietnam (CLMV) Economic Ministers’ Meeting held via videoconferencing on 24 August. The meeting was part of the 52nd ASEAN Economic Ministers’ Meeting. The action plan on economic co-operation for 2020/2021 will focus on five key areas: trade and investment cooperation, implementation of regional commitments, post-pandemic recovery plan, CLMV development framework, and human resources development. At the meeting, CLMV ministers also reviewed and assessed the implementation of the CLMV Action Plan on Economic Cooperation during the 2019/2020 period.
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VIETNAM, CAMBODIA

Vietnam and Cambodia to develop border trade infrastructure
(24 August 2020) Vietnamese Prime Minister Nguyen Xuan Phuc issued a plan to implement a Memorandum of Understanding (MoU) on the development and connection of border trade infrastructure with Cambodia according to a local media report dated 21 August. The implementation started on 19 August and is expected to last until October 2022. Between 2021 and 2022, surveys will be conducted for the construction of at least a border market, related trade and investment promotion events will be carried out, and support will be provided to firms introducing and distributing goods at border markets, trade centres and trade fairs.
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THAILAND

Tourist arrivals and spending decline around 70% in the first seven months of 2020
(25 August 2020) Thailand’s tourist arrivals and spending declined around 70% year-on-year in the first seven months of 2020, according to data released on 24 August, as a fourth month of border closures aimed at keeping out COVID-19 continued to affect its struggling economy. In the January-July period, foreign tourist numbers totalled 6.69 million, down 71% year-on-year, while spending fell 70.4% from a year earlier to US$10.6 billion (332 billion baht). From October 2020 onwards, Thailand will allow foreign tourists to visit the resort island of Phuket for long stays that must include a quarantine period, which replaces plans for “travel bubbles” between certain countries amid a resurgence of the virus in parts of Asia.
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LAOS, JAPAN

Laos and Japan agree to relax COVID-19 travel restrictions
(23 August 2020) Laos and Japan agreed on 23 August to allow expatriates to resume travelling as early as September 2020, provided they stay home for 14 days after entering their respective countries as part of measures to prevent the spread of COVID-19. According to the Japanese government, the plan was agreed by Foreign Minister Toshimitsu Motegi and his Laotian counterpart Saleumxay Kommasith during talks in Vientiane. In addition to the reopening of borders for long-term residents, they agreed to speed up coordination through diplomatic channels toward resuming business trips.
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MYANMAR

AGD Bank to provide foreign funds to local farmers in rural areas
(23 August 2020) One of Myanmar’s largest banks, Asia Green Development Bank (AGD Bank) has signed a US$25 million (35 billion kyat) financing agreement with Pact Global Microfinance Fund to provide funding to farmers and agricultural businesses in Myanmar. Through the agreement, the two parties will channel the equivalent of US-denominated funds from foreign investors in local currency to 68,000 households in Myanmar via microfinancing. According to AGD Bank, the hybrid loan signed between both parties is the first of its kind in the country.
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About Greater Mekong Subregion (GMS)

China-ASEAN Monitor: Chinese 5G chips manufacturer Zodiac to invest US$360 million in Malaysia

Photo Credit: zodiachip.com

TRADE, ECONOMY, AND INVESTMENT

Chinese 5G chips manufacturer Zodiac to invest US$360 million in Malaysia
(24 August 2020) Chinese tech company Zodiac (China) Applied Science and Technology Research Centre Ltd is looking at an initial investment of US$360 million (RM1.5 billion) as part of a larger plan to set up a manufacturing base for developing 5G chips and encapsulation technology in Malaysia. The company is looking to build its second production facility on a 500-acre parcel of land in Malaysia. Its first facility, located in Quanzhou, Fujian, China has been operational since 2018. Malaysia was chosen for its strategic location, well-developed infrastructure, and sound financial ecosystem. The investment into the country is expected to enhance the company’s international competitiveness, production costs, and overall efficiency.
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State-owned Bio Farma collaborating on COVID-19 vaccine with China’s Sinovac
(24 August 2020) Indonesian state-owned pharmaceutical company Bio Farma is collaborating on a vaccine with China’s Sinovac Biotech and a company from the UAE. Bio Farma announced on 21 August that it had signed an agreement with Sinovac. Under the agreement, the Indonesian government will import 50 million doses of vaccine from Sinovac from November 2020 to March 2021. Priority will also be given to Bio Farma for further supply until the end of 2021. In July 2020, Bio Farma started Indonesian trials for Sinovac’s vaccines, seeking 1,600 participants. If successful, Bio Farma will start manufacturing the vaccine locally under a license provided by Sinovac. Indonesia’s pharmaceutical market grew to US$6 billion (88.4 trillion rupiah) in 2019, up from US$4.5 billion (65.9 trillion rupiah) in 2016.
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Singaporean travellers to China required to take COVID-19 test five days prior to flight
(25 August 2020) Singaporean travellers to China will be required to take a COVID-19 test within five days of their flight, from 28 August onwards. They will also be required to declare that they have not had a fever at or above 37.3 degrees Celsius, or respiratory symptoms, and have not been in contact with patients with fever or respiratory symptoms, within the last 14 days. These details were announced by the Chinese Embassy in Singapore on its website on 21 August. In June 2020, both Singapore and China announced a green lane agreement that would allow travel between both countries without passengers having to be quarantined. The travellers must instead take a COVID-19 swab test 48 hours before departure and after they land.
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Myanmar officials see good potential for export of packaged goods to China
(25 August 2020) Officials from Myanmar’s embassy in China said that there is good potential for the export of packaged goods from Myanmar to sell in the Chinese market. Market research conducted by various chambers of commerce, companies, and businesses in China found that billions of dollars worth of packaged goods from ASEAN countries such as Vietnam, Malaysia, and the Philippines have already entered the Chinese market. According to the officials, some of Myanmar’s food products already have high quality standards and good packaging and therefore, could do well in China. The officials stated that packaged goods from Myanmar will be promoted online, in trade events, and during meetings between Chinese and Myanmar entrepreneurs.
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Thai-China joint venture CP Foton hope to gain third place in Thai auto market share in three to five years
(21 August 2020) Thai-China joint venture CP Foton recently unveiled a new lineup of commercial vehicles for sale, and hope to attain third place in market share in the next three to five years. CP Foton is a joint venture between Thailand’s conglomerate CP Group and China’s Beiqi Foton Motor, and aims to sell 450 vehicles before the end of 2020. Toyota Motor holds the top share in commercial vehicles sold in Thailand with a 35% market share. The joint venture also plans to build an assembly plant in Thailand in the next two to three years, whereby vehicles manufactured by the assembly plant will be exported throughout the region.
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CARI Captures 467: Singapore ranks highest in ASEAN in digital quality of life study

ASEAN

Singapore ranks highest in ASEAN in digital quality of life study
(19 August) Singapore leads ASEAN countries with a 12th place global ranking in the Digital Quality of Life Index 2020 conducted by privacy protection firm Surfshark. The city-state is followed by Malaysia (41st), Vietnam (54th), Thailand (63rd), the Philippines (66th) and Indonesia (71st). The index assesses 85 countries based on five pillars: internet affordability, internet quality, e-infrastructure, e-security and e-government. Singapore topped the internet quality pillar, with the fastest broadband and the eighth fastest mobile internet globally while Malaysia was among 13 countries that outperformed others in providing higher levels of e-security and more affordable internet connectivity. The study also found that governments in Southeastern Asia, Europe and North America are the most prepared to counter cyber threats. Globally, Denmark, Sweden and Canada topped the digital quality of life ranking.

ASEAN

RCEP to be signed without India, says Indonesia’s Trade Ministry
(18 August 2020) The Regional Comprehensive Economic Partnership (RCEP) has entered the legal scrubbing phase and is expected to be signed soon without India, according to the Indonesian Trade Ministry. Current participating countries comprising ASEAN member states, China, Japan, South Korea, Australia and New Zealand will keep the door open for India in case the country decides to rejoin the trade deal in the future, Deputy Trade Minister Jerry Sambuaga said in a statement on 13 August. India withdrew from RCEP negotiations in November 2019 due to concerns of its growing trade deficit with China. The situation worsened after the Indian army said at least 20 of its soldiers had been killed in clashes with Chinese troops at a disputed border site between the two countries in June 2020.

INDONESIA

A total of 31 funding agreements for start-ups announced in second quarter of 2020
(20 August 2020) Indonesia’s start-ups can expect more funding in the future, with the country already enjoying the highest flow of capital in Southeast Asia after Singapore, said Sequoia Capital India. Digitalisation remains one of the growth areas for start-ups in the country, which has one of the more mature investing ecosystems in the region, the investment firm said during a webinar on 19 August. At least 31 funding agreements for Indonesian start-ups were announced in the second quarter of 2020, an increase from the 24 deals in the same period in 2019. Thirteen of the 31 funding agreements were made for seed-stage companies, such as the US$10 million in funds secured by supply chain start-up Ula and the seed funding for big data analytics firm Bonza in May 2020. Sequoia Capital India added that opportunities can also be found in “old-school” digital economy sectors such as e-commerce, cashless payments, mom-and-pop shops, and financial services.

THE PHILIPPINES

The Philippines central bank keeps interest rates unchanged
(20 August 2020) The central bank of the Philippines, Bangko Sentral ng Pilipinas, kept its key interest rates unchanged as it takes a “prudent pause” to let previous rate cuts take effect within the economy. The benchmark interest rate remains unchanged at 2.25% on 20 August. The Philippines’ economy fell into recession in the previous quarter, as COVID-19 dampened consumption and drove job losses to a record high. The Philippine government is loosening restrictions to help spur growth with the economy expected to shrink by as much as 6.6% in 2020. Bangko Sentral ng Pilipinas has been among the most aggressive in Asia in terms of easing policy, cutting its key rate by 175 basis points so far this year. The central bank is next scheduled to set the key rate on 1 October 2020.

THE PHILIPPINES

Australian poultry products temporarily banned due to bird flu outbreak
(19 August 2020) The Philippines temporarily banned poultry products from Australia in a 14 August order made public on 19 August after the highly pathogenic H7N7 avian flu virus was detected at an egg farm in Victoria. Australia accounts for less than 1% of the Philippines poultry imports. All incoming shipments from Australia with import clearances issued on or before 6 August 2020 will be allowed entry provided the poultry was slaughtered or processed on or before 3 July 2020. The Philippines has already experienced its own outbreaks of aviation flu, with the latest outbreak of the H5N6 subtype of the virus at an egg farm in Pampanga province in July 2020.

THAILAND

Thailand’s second quarter of 2020 GDP shrinks to its weakest in 22 years
(17 August 2020) Thailand’s GDP shrank 12.2% from a year ago, marking its largest decline since the Asian Financial Crisis in 1998, the National Economic and Social Development Council said on 17 August. The country’s economy has been deeply affected by the impact of COVID-19 on its two key drivers of the economy: trade and tourism. The pain has been compounded by the strong baht, which gained more than 6% in the April-June quarter. According to National Economic and Social Development Council secretary-general Thosaporn Sirisumphand, the council is particularly concerned about employment, bad debts and small and medium enterprises and will strive to take care of the country’s 16 million workers in the informal sector. The council cut its full-year GDP forecast for Thailand to a 7.3%-7.8% contraction, from an earlier estimate of a 5.0%-6.0% decline.

MALAYSIA

Malaysia’s recent quarterly GDP records worst decline since fourth quarter of 1998
(14 August 2020) Malaysia’s GDP contracted by 17.1% in the second quarter of 2020 (2Q2020) primarily due to the movement control order enforced to curb the spread of COVID-19, Bank Negara Malaysia (BNM) said during its virtual 2Q2020 briefing held on 14 August. According to Malaysia’s chief statistician Dr Mohd Uzir Mahidin, the quarterly contraction was the lowest growth ever recorded by the country since the Asian Financial Crisis when its GDP fell 11.2% in the fourth quarter of 1998. In the first quarter of 2020, Malaysia’s GDP grew 4.5%. All sectors recorded negative growth during 2Q2020, except for the agriculture sector, which grew 7.2%. Growth in the services sector fell 17.4%, while manufacturing declined 17.9%. However, BNM governor Nor Shamsiah Yunus said the gradual reopening of the economy from 4 May onwards has provided some relief to the economy and some signs of recovery have been observed.

VIETNAM

E-commerce becomes more popular in Vietnam due in part to COVID-19 pandemic
(21 August 2020) E-commerce has become more popular in Vietnam in the past five years, particularly due to the COVID-19 pandemic, according to a forum held by the Institute for Brand and Competitiveness Strategy on 20 August. Vietnam’s internet users are projected to account for 60% of the population in 2020, while a further 33% of Vietnamese consumers will make direct money transfers online while shopping. However, a survey by the Vietnam Software and IT Services Association (VINASA) showed that although 95% of Vietnamese enterprises are aware of the importance of digital transformation, 84% of said businesses also failed to transform digitally and apply new technologies. During the forum, banks, payment gateways and telecommunication carriers were encouraged to create favourable conditions and have supporting policies for people to pay online and at the same time, create a shared database to minimise risks for customers.

SINGAPORE

Zoom opens new data centre in Singapore
(18 August 2020) Zoom Video Communications Inc., has opened a data centre in Singapore, diversifying its network and expanding into Southeast Asia for the first time. The popular conferencing app has seen a surge in global usage of its services during COVID-19 related lockdowns, but the increasing popularity of the app has also shone a spotlight on the vulnerabilities in its software encryption. The US-based company worked with Singapore’s Economic Development Board in setting up the new data centre, bringing the total of its global sites to 18. Zoom plans to hire an unspecified number of engineers and sales staff and offer new services such as Zoom Phone to scale the business in the region, Zoom’s head of international Abe Smith said during a virtual briefing on 18 August.

SINGAPORE

Collective wealth of tycoons on the 2020 Forbes Singapore Rich List rises 28%
(20 August 2020) Tycoons on the 2020 Forbes Singapore Rich List saw their collective wealth rise by 28% year-on-year from US$37 billion to US$167 billion. This is despite a declining economy which saw a 13.2% year-on-year drop in GDP in the quarter ending June 2020. The benchmark STI stock index also fell by 21% year-on-year. The minimum amount of wealth required to make the list increased to US$610 million this year from US$560 million in 2019. The list was compiled using shareholding and financial information obtained from the families and individuals, stock exchanges, analysts and other sources. Unlike the billionaire rankings, this list includes family fortunes. Singapore has become a magnet for tycoons from around the world and has benefited by providing a home for these wealthy expats with some taking citizenship.

China-ASEAN Monitor: China-ASEAN trade totalled US$362 billion in the first seven months of 2020

Photo Credit: Asia First

TRADE, ECONOMY, AND INVESTMENT

China-ASEAN trade totalled US$362 billion in the first seven months of 2020
(18 August 2020) China’s trade with ASEAN stood at US$362 billion in the first seven months of 2020, up 6.6% year-on-year, according to data from the General Administration of Customs. ASEAN remained China’s largest trading partner during the same period, accounting for 14.6% of China’s total foreign trade volume. This was attributed to upgraded free trade area protocols and supply chain cooperation. Since the establishment of the China-ASEAN Free Trade Area (CAFTA) in 2010, tariffs on 7,000 products have been cancelled. The trade volume between China and ASEAN countries grew from only US$54.8 billion in 2002 to more than US$600 billion in 2019.
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Construction of China-Laos railway progresses with 14.5-km tunnel drilled
(17 August 2020) China State Railway Group Co., Ltd. announced that a 14.5-km tunnel has been drilled for the China-Laos railway. Also known as Kunming-Vientiane railway, the 1,000 km railway that connects Laos and China is scheduled to be operational by end-2021. The Duoji Tunnel was drilled in Mojiang County in Pu’er City, in southwest Yunnan province. The railway is a major project under the Belt and Road Initiative. By end-July 2020, over 90% of bridges and over 95% of the tunnels on the domestic section of the railway have been completed. According to Chen Yumou, deputy head of the Nanjing branch of China Railway Shanghai Group Co., the COVID-19 pandemic has reportedly boosted trade and railway transportation volume between China and ASEAN in 2020.
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Temasek subsidiary and Bank of China establish community bank in China
(18 August 2020) Fullerton Financial Holdings (FFH), a subsidiary of Temasek Holdings, and the Bank of China announced the establishment of the Bank of China-Fullerton Community Bank (BOC-Fullerton) in Xiong’An New District in China. Both companies will inject their existing equity interest in the community banks into BOC-Fullerton. The community bank is committed to supporting China’s “three rural” policy and small micro-enterprises through its financial products and business model. The bank will also aid the acceleration of the economic development of counties and villages through the adoption of advanced technologies such as artificial intelligence. FFH had previously jointly invested in the building of community banks in China with the Bank of China, with the first community bank launched in 2011.
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Chinese wealth management firm to set up online platform with Thailand’s Kasikornbank
(18 August 2020) Chinese wealth management firm Lu International will jointly operate and manage an online wealth management platform with Thailand’s commercial banking firm Kasikornbank. Lu International is a subsidiary of Chinese retail fintech firm Lufax Holding and will utilise Lufax Holding’s “cloud-exporting” model for the platform. Lufax Holding chief executive Greg Gibb said that the firm and Lu International have the technological capabilities and global experience to help address a gap in the Thai market. The announcement of the deal follows Lu International’s launch of a mobile app in Hong Kong, which provides a selection of Hong Kong dollar-based mutual fund products.
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Joint petrochemical venture between China and Brunei awards scholarships to 23 students
(18 August 2020) Hengyi Industries Sdn Bhd, a joint petrochemical venture between China and Brunei, awarded scholarships to 23 students from Universiti Brunei Darussalam during a ceremony held on 18 August. The students will continue their studies at Zhejiang University in China where they would complete a year and half of academic studies and industrial training. Hengyi Industries is a joint venture between China’s Zhejiang Hengyi Group and Damai Holdings, a wholly-owned subsidiary under the Brunei government’s Strategic Development Capital Fund. The Chinese Ambassador to Brunei Yu Hong said that education cooperation is an important area of exchange between both countries under the Belt and Road Initiative.
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CARI Captures 466: ASEAN+3 region forecasted to grow 6.0% in 2021

ASEAN

ASEAN+3 region forecasted to grow 6.0% in 2021
(6 August 2020) Economies in the ASEAN+3 region are expected to rebound in 2021, according to a report released by the ASEAN+3 Macroeconomic Research Office (AMRO) on 6 August. The ASEAN+3 region comprises the 10 member states of the Association of Southeast Asian Nations (ASEAN), and Hong Kong, China, Japan, and South Korea. All ASEAN+3 economies are projected to return to positive growth averaging 6.0% in 2021 with ASEAN forecasted to grow 5.7%. The recovery in ASEAN+3 region is anticipated to be led by China, which is projected to grow by 2.3% in 2020 compared to 6.1% in 2019. Nine of the 14 ASEAN+3 members are expected to contract in 2020, with Thailand having the deepest contraction of 7.8%. In 2020, the ASEAN region is forecasted to contract by 2.6%, from a positive growth of 4.6% in 2019. The smaller economies of Brunei, Laos, Myanmar, and Cambodia, are expected to weather the COVID-19 pandemic better than their larger peers.

ASEAN

Garment workers including those in Southeast Asia lose close to US$6 billion in wages due to COVID-19 pandemic
(11 August) Garment workers supplying global fashion brands have either been underpaid or not paid at all during the COVID-19 crisis, researchers said on 11 August. Garment workers worldwide are estimated to have lost US$3.19 billion to US$5.79 billion in the first three months of the pandemic. In Bangladesh, around US$500 million in wages is estimated to have been withheld while in Indonesia, the withheld amount is estimated at around US$400 million. Pressure group Clean Clothes Campaign said a lack of data limited the research to seven countries, Bangladesh, Cambodia, India, Indonesia, Myanmar, Pakistan and Sri Lanka, but said the situation was probably similar in other low-wage regions. The group added that garment workers in South and Southeast Asia, had only received three fifths of their regular income on average from March to May 2020.

CAMBODIA

Cambodia’s PPE exports jump 130% in the first half of 2020
(9 August 2020) Cambodia exported just over US$191.3 million worth of personal protective equipment (PPE) in the first half of 2020, a 130% rise from the US$83.3 million recorded in 2019. The exports were mainly driven by COVID-19 fears and a shortage of such equipment, according to the General Department of Customs and Excise. Face mask exports for the six months ended June 2020 were valued at US$2.5 million. However, no figure exists for the same period in 2019. Data from the Ministry of Industry, Science, Technology and Innovation show that there are seven factories and seven handicraft workshops that are either in the application process or are currently producing face masks and other PPE. Together, the factories are able to manufacture 138 million face masks, around 20.7 million medical gowns and approximately 9.6 million medical caps on a monthly basis. Government data show their export destinations include China, Japan, the US and Europe.

THAILAND

Thailand’s investment board to hold events aimed at achieving 4,000 pairings
(12 August 2020) Thailand’s Board of Investment (BoI) expects to help 4,000 Thai and foreign companies form business partnerships in 2020 through two international events, though the number is half of 2019’s tally due to the impact of COVID-19. The business matching is projected to create economic value worth US$226 million (7 billion baht) from the events, which have been delayed from early 2020 when the country dealt with the virus outbreak. Together with the Thai Subcon Association and event organiser Informa Markets, BoI will co-organise Subcon Thailand, ASEAN’s largest international industrial subcontracting, in conjunction with Intermach, a showcase of innovative machinery scheduled to be held in September. According to the Industrial Linkage Development Division, it helped facilitate 8,029 business matches, creating more than US$451 million (14 billion baht) in business value in 2019.

THE PHILIPPINES

Central bank purchases US$16.4 billion of government debt
(12 August 2020) The Philippines central bank, Bangko Sentral ng Pilipinas (BSP), has purchased around US$16.4 billion worth of government debt through the end of July 2020, in order to finance the country’s record stimulus measures. This was equivalent to 45% of the Philippines domestic borrowings. Around US$10.2 billion of the total purchases were in the secondary market, while the remainder was directly from the government. An economist stated that the debt-purchase programme by BSP will most likely continue beyond 2020 given the economic conditions. Filipino bonds are the top performers in Asia as of now, with 18% returns. Yields on 10-year bonds have fallen to 2.78% from more than 5% in March 2020.

INDONESIA

Indonesia raises US$1.48 billion from government bonds to fund fiscal deficit
(12 August 2020) The Indonesian government raised US$1.48 billion on 11 August 2020, from government bonds to fund the country’s fiscal deficit and COVID-19 measures. The Finance Ministry received bids for US$7.2 billion from both domestic and foreign investors as well as Indonesia’s central bank, Bank Indonesia. The bids received was the second-highest volume of bids so far in 2020, with foreign investors making up 33% of the incoming bids. The maturity periods of the bond series varies from three months to 28 years, with yields ranging from 3.25% to 7.40%, respectively. The government plans to raise US$66.7 billion in the second half of 2020 to cover a fiscal deficit of 6.34% of GDP. The government has allocated US$47 billion for the country’s COVID-19 response, which includes strengthening the healthcare system and reviving the economy. This is the first time the central bank has bought sovereign debt papers to support the financing of non-public goods.

INDONESIA

Government to ratify bill to boost job creation by end-August 2020
(11 August 2020) The Indonesian government is hopeful a job creation bill will be ratified by parliament by the end of August 2020, amidst worries of a recession due to the COVID-19 pandemic. The Job Creation Bill will allow employers to hire and fire workers with lower severance pay and benefits compared to current labour laws, as well as allow employers to hire workers on flexible work hours (thereby avoiding paying full-time wages). COVID-19 has caused some 3.7 million people to lose their jobs, raising the estimated total number of unemployed Indonesians to 10.6 million, equivalent to almost 8.0% of its working population. Indonesia’s economy shrank by 5.32% year-on-year between April and June 2020, its first negative quarterly performance in 21 years. Six out of the country’s eight major labour unions have agreed to support the bill. However, labour union KSPI said the bill does not recognise minimum wage and makes it easier for companies to retrench their staff.

SINGAPORE

The Philippines cancels Myanmar rice consignments due to local protests
(12 August 2020) Singapore’s central bank warned that the country’s financial services sector may see more retrenchments in the second half of 2020, as the economy faces a contraction of between 5.0%-7.0% in 2020. The Monetary Authority of Singapore stated that financial institutions in Singapore “held up well” in the first half of 2020; with 1,500 jobs created while retrenchment levels staying “subdued.” The financial sector employs more than 170,000 people and contributes 13.0% to the GDP. The central bank has prioritised supporting the local workforce in the financial sector, as the sector undergoes a shift towards new models including digital banking.

LAOS

Laos sees rising public debt following economic impact of COVID-19
(10 August 2020) Laos is seeing a rise in public debt after a drop in revenue collection and an increase in loans amid the COVID-19 pandemic. According to a government official quoted by a Chinese daily, Laos’ public debt could rise to as much as 65% to 68% of GDP in 2020. At the recent ninth ordinary session of the National Assembly’s eighth legislature, Minister of Finance Deputy Prime Minister Somdy Douangdy said Laos’ revenue collection is expected to fall by around US$696 million (LAK 6.322 billion). The value of exports during the first six months of 2020 was at a reduced level of around US$2.6 billion, down by 5.1% compared to the same period in 2019 based on an assessment done by an agency under the Ministry of Industry and Commerce. The tourism sector is also expected to be affected in the second half of 2020 after recording a 60% decline in tourist arrivals in the first six months of 2020.

BRUNEI, MALAYSIA

Brunei and Malaysia added to the UK’s travel corridor list of nations
(12 August 2020) Malaysia and Brunei were added on 11 August 2020 to the UK’s travel corridor list of nations, meaning arrivals from both countries will not be required to self-isolate upon arrival in the UK. Travellers from both countries who arrive in the UK before 4:00 AM (GMT) on 11 August 2020 will still be required to self-isolate. Malaysia’s borders remain closed, however, with locals still barred from travelling abroad. Other Asian countries on the exempt list included Japan, South Korea, Taiwan and Vietnam, as well as the special administrative regions of Hong Kong and Macau.

Mekong Monitor: German firms in Myanmar plan on reducing investments compared to pre-COVID-19 period

Photo Credit:The Myanmar Times

TRADE, ECONOMY, AND INVESTMENT

MYANMAR, GERMANY

German firms in Myanmar plan on reducing investments
(12 August 2020) A business outlook survey report recently released by the Delegation of German Industry and Commerce in Myanmar found that about two thirds of the companies surveyed plan to reduce investments compared to before COVID-19. The majority of companies also expect the economy to recover by 2021 at the earliest, while 46.7% expect an economic recovery to take longer. More than two thirds of the companies see the lack of business support measures as the current main challenge. Nevertheless, more than 86.0% of the companies surveyed said they remain committed to Myanmar as a permanent location for business. Total trade volumes between Myanmar and Germany surpassed US$820 million in fiscal year 2018/2019. Myanmar exported US$190 million worth of goods, mainly machinery and pharmaceutical products from Germany so far this year.
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MYANMAR, INDIA

Trade association to start brokering trade between India and Myanmar after COVID-19
(12 August 2020) The Upper Myanmar India Association plans on starting its own trade brokering business to facilitate trade between India and Myanmar after the COVID-19 pandemic is over. The association’s chair, U Ba Yan, stated that they intend to help Indian traders connect with their counterparts in Myanmar. There are about 150 members in the association. Trade between both countries have come to a halt since COVID-19, with trade only conducted through maritime routes due to the closure of land borders. In the fiscal year 2018/2019, total trade between Myanmar and India reached US$201 million, with exports accounting for US$177.5 million. Total border trade as of 31 December 2019, amounted to US$34 million.
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VIETNAM

Dung Quat oil refinery processes its first batch of Russian Sokol crude oil
(10 August 2020) Vietnam’s Dung Quat oil refinery processed its first batch of Russian Sokol crude oil on a trial basis, as the owner of the facility, state-run PetroVietnam, seeks to diversify its crude oil sources. Dung Quat’s traditional crude oil source, the Bach Ho field, has seen shrinking output in recent years. The refinery imported more than 710,000 barrels of Sokol crude oil in July 2020 to mix with other types of crude oil for a test run. In 2019, Dung Quat processed its first batch of West Texas Intermediate (WTI) and Bonny Light crude oil, and the refinery plans to import 8 million to 10 million barrels of these two types of crude in 2020.
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CAMBODIA

Cambodia expected to sign bilateral FTA with China as the EU enforces sanctions on exports
(12 August 2020) Cambodia is expected to sign a bilateral FTA with China in the near term as the EU enforces trade sanctions against the country for alleged human rights violations. On 12 August 2020, the EU enforced tariffs on about 20% of Cambodia’s exports to the bloc. The sanctions came after a year-long review by the EU (concluded in February 2020), which recommended partially suspending Cambodia’s privileges under the Everything But Arms (EBA) scheme. The privileges are vital for Cambodia’s US$10 billion garment and footwear sector; Cambodia sent about 25% of its exports to the EU in 2019. Cambodia now faces tariffs of up to 12% on 40 items it exports to the EU, including travel goods, sugar, and some garment and footwear products. According to analysts, Cambodia’s FTA with China, which focuses on agricultural exports, will do little to help the country’s apparel sector, which employs more than 900,000 workers.
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THAILAND

Former banker Predee Daochai appointed as new finance minister in revamped cabinet
(12 August 2020) The former co-president of Thailand’s second-largest lender Kasikornbank Pcl, Predee Daochai was appointed as Thailand’s new finance minister in Prime Minister Prayuth Chan-Ocha’s revamped Cabinet on 12 August 2020. A former senior executive of PTT Pcl, Supattanapong Punmeechaow, was named as deputy prime minister and put in charge of the Energy Ministry. This comes as Thailand’s economy is forecasted by the finance ministry to contract by 8.5% in 2020. The country’s economy is facing its worst performance due to both COVID-19 and student protests. According to a finance ministry source, Predee is expected to call for a meeting with top executives at the ministry for an update on economic conditions and forthcoming prospects to prepare measures to manage the economy.
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About Greater Mekong Subregion (GMS)

China-ASEAN Monitor: Myanmar approves joint venture for China’s strategic port project

Photo Credit: International Adviser

TRADE, ECONOMY, AND INVESTMENT

Myanmar approves joint venture for China’s strategic port project
(10 August 2020) Myanmar’s Directorate of Investment and Company Administration (DICA), approved the registration of Kyaukphyu Special Economic Zone Deep Seaport Co. Ltd, a joint venture between Chinese consortium CITIC Myanmar Port Investment Limited and the Myanmar government-backed Kyauk Phyu Special Economic Zone Management Committee on 6 August. The China-backed project ran into delays shortly before Myanmar’s 2015 general election after critics raised concerns that the deal could land Myanmar in a “debt trap” with China. The initial agreement called for a project worth US$9-10 billion and gave the Chinese developer an 85% stake. The current National League for Democracy (NLD) government successfully renegotiated the share ratio with China, along with an agreement that the project would be based on demand.
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Trade volume between ASEAN and China’s Shaanxi rises to US$2.8 billion in first six months of 2020
(10 August 2020) Trade volume between ASEAN and China’s northwest Shaanxi province reached US$2.8 billion (19.3 billion yuan) in the first half of 2020, recording a 66.3% year-on-year increase, according to data from the Shaanxi provincial Department of Commerce. The department said that ASEAN countries have become vital markets for the province’s companies in terms of project contracting and foreign investment. The province has also become a foreign investment destination, with 266 ASEAN firms having been set up in the provincial capital Xi’an with total investment of nearly US$5.76 billion.
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Thailand and China to work towards US$140 billion trade goal
(10 August 2020) Thailand and China are working towards increasing their bilateral trade value to US$140 billion in 2021. The goal was discussed during a teleconversation between Auramon Supthaweethum, director-general of Thailand’s Department of Trade Negotiations and Peng Gang, director-general of the Department of Asian Affairs of China’s Ministry of Commerce. Other matters discussed included the connection between Thailand’s Eastern Economic Corridor project and China’s Belt and Road Initiative and Greater Bay Area project, and implementation of the Sino-Thai memorandum of understanding on trade in farm products, particularly the government-to-government agreement to import 1 million tonnes of Thai rice. According to Auromon, both countries will promote bilateral trade through online and offline channels despite the COVID-19 pandemic.
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China’s Sinovac begins late-stage human trial for potential COVID-19 vaccine in Indonesia
(11 August 2020) China’s Sinovac Biotech Ltd has launched a late-stage human trial on 11 August involving as many as 1,620 patients in Indonesia for a COVID-19 vaccine candidate that it is developing with Indonesian state-owned peer Bio Farma. The vaccine candidate, known as CoronaVac (previously PiCoVacc), is among a few potential vaccines that have entered late-stage trials for a large-scale study to gather proof of efficacy for regulatory approval. The vaccine candidate is already undergoing a late-stage trial in Brazil for as many as 9,000 people. The late-stage human trial in Indonesia comes as the country grapples with spiking infection numbers, with over 127,000 cases recorded as of 11 August. The trial has so far recruited 1,215 people and will last for a duration of six months. Sinovac expects to also test the vaccine candidate in Bangladesh.
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Potential longan shipments from Cambodia to China by 2022
(6 August 2020) Cambodia hopes to be able to ship Pailin longan to China by the end of 2021 or in early 2022, according to the Ministry of Agriculture, Forestry and Fisheries senior official Ngin Chhay. On 9 June, Cambodia and China officially agreed to export 500,000 tonnes of fresh mangoes a year, which Cambodia expects to pave the way to boost its agricultural crop exports to the Chinese market. However, the quota is out of Cambodia’s reach at the moment due to its limited capacity to sterilise, process and package the fruit in an export-ready manner. Chhay expects the first mango shipment to go out in early 2021, after which they hope to get clearance to export Pailin longan to China by the end of 2021 or early 2022.
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