Public investment should play a “central role” in the recovery of both emerging and advanced economies from the coronavirus downturn, the IMF said today ahead of its fall meetings.

Stepping up such spending with interest rates low globally could “create millions of jobs directly in the short term and millions more indirectly over a longer period,” officials with the International Monetary Fund wrote in a blog post.

Assuming investments are of “high quality,” the Washington-based crisis lender said increasing public investment by one per cent of GDP could raise private investment by 10 per cent, employment by 1.2 per cent, GDP by 2.7 per cent along with overall confidence in the recovery.

The coronavirus pandemic has caused a sharp economic downturn globally, but even before the pandemic the IMF said public investment “had been weak for over a decade, despite crumbling roads and bridges in some advanced economies and massive infrastructure needs for transportation, clean water, sanitation” in poorer nations.

The time to invest is now, officials said, with many countries still fighting off Covid-19 and people who lost their job amid the downturn looking for work.

The IMF estimates two to eight jobs are created for every US$1 million (RM4.2 million) spent on traditional infrastructure, and five to 14 for every US$1 million spent on research, development and green technology.

While encouraging countries to maintain existing infrastructure, the IMF encouraged governments to take a second look at projects that had been delayed in the past and plan new ones focused on their needs after the pandemic is over.

Source: AFP 

IMF: Public investment key to Covid-19 recovery

Amid challenges brought by the epidemic, the Association of Southeast Asian Nations for the first time has become China’s top trading partner, opening up bright prospects as China and ASEAN are now each other’s largest trading partners, the Ministry of Commerce said on Sunday.

Li Chenggang, assistant minister of commerce, said at a news conference economies around the world are grappling with growing downward pressure and shrinking international trade due to the outbreak of COVID-19. Against this backdrop, China and ASEAN strived to minimize the influence of the epidemic and bucked global trends with good trade and economic cooperation.

Data from the Ministry of Commerce showed in the first eight months of this year, China-ASEAN trade volume reached 2.93 trillion yuan ($429.5 billion), up 7 percent on a year-on-year basis and accounting for 14.6 percent of China’s foreign trade.

In the first half of this year, China’s investment in ASEAN amounted to $6.23 billion, growing 53.1 percent on a yearly basis and taking up 76.7 percent of China’s investment in economies related to the Belt and Road Initiative. ASEAN’s paid-in investment in China surged by 5.9 percent year-on-year, according to the ministry.

“In addition to growing bilateral trade volume and dynamic investment cooperation, China and ASEAN had closer cooperation in digital economy, and made steady progress in regional economic cooperation,” Li said.

He noted China and ASEAN had delivered remarkable results in trade and economic cooperation, in which the China-ASEAN Expo has played a vital role. Since it was first held 16 years ago, the expo has built a significant platform for bilateral trade and economic cooperation, ensured unimpeded access to trade and investment, boosted international cooperation in production capacity and encouraged Chinese companies to go to Southeast Asia.

The 17th China-ASEAN Expo, which is to be held from Nov 27 to Nov 30 in Nanning, Guangxi Zhuang autonomous region, will feature both physical exhibitions and “Cloud CAEXPO”. The 17th China-ASEAN Business and Investment Summit will be held at the same time.

Zhou Hongbo, vice-governor of Guangxi Zhuang autonomous region, said: “This year marks the 10th anniversary of the establishment of the China ASEAN Free Trade Zone. The CAEXPO, over the past 16 years, has drawn together 832,000 exhibitors and trade visitors and concluded a lot of cooperation projects related to trade in goods and services, investment, international production capacity and cross-border industrial parks.”

According to Zhou, to mitigate the influence of COVID-19 this year’s expo and summit will be offered with an online version, so those who are outside the Chinese mainland are able to join.

In addition, in partnership with Alibaba Group an online CAEXPO will be launched to provide a variety of services such as showrooms, business talks via video link and livestreaming, among others, to exhibitors and trade visitors all year round.

Zhang Shaogang, deputy director of the China Council for the Promotion of International Trade, said in the future CCPIT will continue to build more effective platforms for the industrial and commercial circles of China and ASEAN and explore more fields for cooperation, especially in the fields of new energy, new infrastructure, digital economy and intelligent manufacturing.

Source: China Daily 

China-ASEAN trade remains strong despite global slowdown

Asia-Pacific Economic Cooperation (APEC) finance ministers have stressed the need for coordinated multilateral cooperation to ensure a strong and sustainable economic recovery from the impact of the COVID-19 pandemic among member economies.

In a joint statement, the ministers said member economies also need to continuously exchange experiences and good practices.

“In light of the severe regional economic downturn and the challenge that COVID-19 is posing to fiscal sustainability, we strongly reaffirm our commitment to promoting tax certainty and tackling tax avoidance and evasion in the APEC region,” said the APEC Virtual Finance Ministerial Statement on Mitigation and Recovery of COVID-19 Pandemic on Friday.

The statement was issued following a discussion at the APEC Virtual Finance Ministers’ Meeting chaired by Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.

In the statement, the ministers also emphasised the importance of the Group of 20/Organisation for Economic Cooperation and Development Inclusive Framework on Base Erosion and Profit Shifting (BEPS) to continue advancing the work on the tax challenges arising from digitalisation with a view of reaching a global and consensus-based solution.

They also recognised that the COVID-19 outbreak would have major ramifications on the growth of world gross domestic product (GDP).

“With contracting GDP growth estimates and government spending on response and recovery measures, the fiscal position of economies is under pressure.

“We acknowledge the ongoing need to advance stimulus measures to help with recovery, while underscoring the importance of improving fiscal sustainability and transparency to support long-term resilient development and future financing needs,” they said.

The ministers expressed determination to continue to use all available policy tools to support the immediate response to the COVID-19 pandemic and move towards a strong, sustainable, balanced and inclusive recovery.

“This includes supporting the most exposed sectors and workers as well as addressing the disproportionate economic and social impact of the crisis on the more vulnerable segments of society.”

The ministers also recognised the importance of international financial institutions’ work to facilitate public finance management in this regard.

Furthermore, they pledged their support for the development of safe and effective COVID-19 diagnostics, therapeutics, and vaccines, with the aim of supporting equitable and affordable access for all.

The ministers of member economies said APEC would consider the possibility of integrating future pandemics in the disaster risk financing and insurance (DRFI) agenda.

“We will continue the existing work on DRFI solutions to explore practical sources and schemes to mitigate and respond to present and future disasters or shocks, and will also consider the possibility of integrating future pandemics in the DRFI agenda,” they added.

The ministers expressed appreciation for Malaysia’s endeavour in seeking viable and tangible solutions from APEC member economies to improve the financial health of gig economy workers through the APEC Gig Economy Challenge, launched on March 18, 2020.

The ideas presented at the APEC Gig Economy Challenge showcase the many roles of digitalisation in helping financial inclusion including gig economy workers who have been hard hit by the pandemic.

“We welcome Malaysia’s initiative in promoting digital economy, which could further boost and sustain member economies’ economic recovery from the COVID-19 pandemic,” the joint statement said.

Source: Bernama 

APEC: Multilateral cooperation key to economic recovery, tackling tax issues

The global economic outlook is not quite as dark as expected even just three months ago, a top International Monetary Fund official said on Thursday, citing better-than-anticipated economic data from China and other advanced economies.

However, IMF spokesman Gerry Rice told reporters the overall global outlook remained challenging as a result of the coronavirus pandemic and its impact on many economic sectors.

The situation remained “precarious” in many developing countries and emerging markets other than China, he said, noting that the IMF was also concerned about rising debt levels.

The IMF is due to release its latest World Economic Outlook on Oct 13. In June, it slashed its 2020 global output forecasts further, forecasting the global economy would shrink by 4.9%, compared with a 3% contraction predicted in April.

Rice gave no fresh numbers, but said recent data from China and other advanced economies was better than expected.

“Recent incoming data suggests that the outlook may be somewhat less dire than at the time of the WEO update on June 24, with parts of the global economy beginning to turn the corner,” he told a regular briefing.

There were also signs that global trade was slowly beginning to recover after widespread lockdowns aimed at containing the spread of the virus, Rice said.

“But I would emphasize that we are not out of the woods, and the outlook remains very challenging, especially for many emerging markets and developing countries, other than China,” he said, noting that many of those countries faced continued weakness in domestic demand, lower export demand, shrinking remittances and declines in tourism.

“Taken together, we are very concerned that this crisis will reverse the gains in poverty reduction that have been made in recent years, and roll back progress that has been made toward the Sustainable Development Goals,” he said, referring to ambitious goals set out by the United Nations five years ago to end poverty and inequality.

Source: Reuters 

Global economic outlook ‘somewhat less dire’ than expected — IMF

Zhejiang Geely Holding Group launched its first electric vehicle-focused platform on Wednesday, aimed at rolling out a variety of models more efficiently for both the Chinese automaker and its partners.

As the global auto industry ramps up investment in electric and high-tech vehicles, manufacturers from Volkswagen AG to General Motors Co have introduced platforms for electric vehicles (EVs).

Geely’s Sustainable Experience Architecture (SEA) will be able to support small as well as large vehicles, including sedans, SUVs, vans and pickup trucks, Geely’s president An Conghui said at an event in Beijing.

An said Geely, which has a 9.7% stake in Daimler AG, spent 18 billion yuan (RM11 billion) on research and development for SEA. SEA uses more aluminium to make vehicles lighter and a front steering system for steady driving.

An said the platform also enabled Geely to develop more intelligent vehicle technologies, including autonomous driving and connectivity.

SEA will use a battery system with a lifespan of two million kilometres made by Contemporary Amperex Technology Co Ltd, An said.

Geely, which sold more than two million vehicles last year, will develop vehicles based on the SEA architecture under nine brands including Geely, Volvo, Smart and Lynk & Co.

Hangzhou-based Geely said in a statement it was also in talks with other automakers about sharing the platform. It is already building a car plant of its own using the EV architecture, construction documents on Geely’s website showed.

Geely and Volvo Cars, which it acquired from Ford Motor Co ten years ago, have jointly developed the Compact Modular Architecture and B-segment Modular Architecture to allow them to develop, design and build different types of compact or smaller cars with similar mechanical layouts faster than before – and at lower cost.

An said Geely would also develop conventional hybrid vehicles to improve the fuel efficiency of petrol cars.

Source: Reuters

Geely launches electric vehicle manufacturing platform

Singapore will pilot a new travel pass for senior executives in the city-state who need to travel regularly for business, authorities said Wednesday, as they further eased some coronavirus-related restrictions.

The number of passes will be limited initially, and travellers must stick to their declared itinerary, the government said. Upon return, pass holders must self-isolate while awaiting results of a swab test, instead of undergoing the mandatory 14-day quarantine at home or at a hotel.

The country has recorded over 57,000 coronavirus cases overall, mostly among workers living in dormitories. The vast majority of those infected have since recovered.

Singapore, a regional travel hub, is home to the Asian headquarters of many global companies whose executives have long relied on the city-state’s connectivity. It has reciprocal business travel arrangements with a handful of countries, including China, Japan and neighbouring Malaysia.

“The idea is to be able to allow senior executives who are based in Singapore with extensive regional or international responsibilities to have a bit more flexibility to travel for their work reasons,” Lawrence Wong, co-head of Singapore’s virus taskforce, told a media briefing.

However, those travellers must comply with the policies of the countries they are visiting, he added.

Authorities also said that while working from home remained the default for Singapore, more employees will be allowed to return to workplaces with some precautions.

Among other easing measures, Singapore will from next month increase the limits on attendance numbers at weddings and in cinemas.

Over the next few weeks, the government will look at how to further ease restrictions, including permitting travel with countries it deems safe and allowing more people to meet socially, Wong said.

Source: Reuters 

Singapore to trial business traveller pass as virus curbs ease

China is embracing new growth momentum in the industrial internet, as the country strives to gain a beachhead in the next generation of industrial development globally, the top industry regulator, government officials and experts said on Sunday.

“China’s industrial internet sector is entering the fast lane. A slew of new breakthroughs, new models and new applications have emerged,” Sui Jing, deputy head of information and telecommunications at the Ministry of Industry and Information Technology, said at the 2020 World Industrial Internet Conference which opened on Sunday in Qingdao, Shandong province.

Sui said that China has already nurtured over 70 industrial internet platforms that have regional influence with related applications covering over 30 key industries across the country. More than 350,000 industrial enterprises are connected to cloud platforms, she added.

Such breakthroughs are in line with President Xi Jinping’s call to enhance the innovative capability of the industrial internet, and push forward integration between industrialization and informatization, she said.

The industrial internet, also known as the industrial internet of things, is a key sector for the country’s new infrastructure construction. It refers to the broader adoption of advanced technologies such as next-generation wireless networks, big data, artificial intelligence and the internet of things.

“China’s industrial internet is ushering in new growth opportunities amid the industrial revolution globally. It has a potential that goes beyond the imagination, which not only promotes the upgrading of manufacturing industry but also determines whether China can lead the next round of the technological and industrial revolution worldwide,” said Wang Qingxian, Party secretary of Qingdao.

At the two-day conference, Wang shared his understanding of the industrial internet, saying that “the industrial internet is not just an instrument, but also an ecosystem that connects all elements of the industrial economy, including the industry chain, the value chain, research and development, procurement, production and consumption”.

“While the industrial internet has just kicked off on the global stage, China’s industrial internet platforms, represented by Qingdao’s COSMOPlat, are coming to the forefront of the industrial internet and have led the world in terms of applications,” he said.

COSMOPlat, an industrial internet platform developed by home appliance giant Haier Group, is a large-scale customization platform that allows users to engage in many stages of the industrial process from design to sales.

With 340 million users and 3.9 million ecosystem partners, the platform has emerged as one of the top industrial internet platforms in the world.

Wang noted that during the COVID-19 pandemic, Haier leveraged the COSMOPlat platform to help Shanxi province build a production line of disposable surgical masks within only four days and was able to manufacture 100,000 masks each day on average.

“China is betting big on the industrial IoT to increase productivity and drive efficiencies by streamlining and automating manufacturing processes via internet connectivity. Backed by positive government support, China is set to become the world’s leader,” said Alex Sinclair, chief technology officer of the Global System for Mobile Communications Association.

China has called for new infrastructure development, including 5G, artificial intelligence and the industrial internet to offset the economic impact of the pandemic and boost sustainable growth.

According to the GSMA, China is poised to lead the global industrial IoT market. There will be 13.8 billion such connections globally by 2025 and China will account for approximately 4.1 billion of them, accounting for a third of the global market.

Source: China Daily 

China’s industrial internet enters fast lane, official says

The global economic recovery from the crisis originated by the coronavirus pandemic may take as much as five years, the World Bank’s chief economist Carmen Reinhart said on Thursday.

“There will probably be a quick rebound as all the restriction measures linked to lockdowns are lifted, but a full recovery will take as much as five years,” Reinhart said in a remote intervention during a conference held in Madrid.

Reinhart said the pandemic-caused recession will last longer in some countries than in others and will exacerbate inequalities as the poorest will be harder hit by the crisis in rich countries and the poorest countries will be harder hit than richer countries.

For the first time in twenty years, global poverty rates will rise following the crisis, she added.

Source: Reuters 

Global economic recovery may take five years, World Bank chief economist says

The coronavirus pandemic has the potential to permanently replace some humans with machines, according to a new study on Monday from the Federal Reserve Bank of Philadelphia.

Layoffs have been higher among workers in industries that can be automated, which increases the risk those jobs will become permanently obsolete, according to the study by economists Lei Ding and Julieth Saenz Molina. At the same time, the spread of Covid-19 has accelerated automation in industries that have been hit hard by the virus or that don’t permit remote work.

The longer the recession lasts, the deeper the impact of automation will be.

“In case the COVID-19 crisis evolves into a prolonged economic crisis, many job losses in automatable occupations could become permanent in the post-pandemic economy, similar to what happened during the recovery from the Great Recession,” Ding and Saenz Molina wrote.

Industries that were already facing a high risk of automation lost 4.2 more jobs per 100 than jobs in sector facing fewer threats by technology, the study shows, which analyzes data through August. Jobs most at risk of being replaced by machines include hotel desk clerks, shuttle drivers, retail salespersons, parking attendants, slaughterhouse workers and toll collectors, according to the study.

The effect was more pronounced for minority workers. Automatable jobs held by minority workers experienced 5.1 more job losses per 100 jobs than those held by non-Hispanic Whites, the study found.

Source: Bloomberg 

Pandemic May Permanently Replace Some Human Jobs With Machines

Alibaba Group Holding Ltd. is in talks to invest $3 billion into Southeast Asian ride-hailing giant Grab Holdings Inc., according to people familiar with the matter.

The Chinese e-commerce giant, a sole investor in the round, will spend a portion of the funds to acquire some of the Grab stock held by Uber Technologies Inc., one of the people said, asking not to be named as the discussions are private. The deal may represent one of Alibaba’s biggest bets on Southeast Asia since its first investment in Lazada in 2016. China’s largest corporation has previously had limited forays in ride-hailing but a potential tie-up with Grab gives it access to data on millions of users in eight countries, a growing delivery fleet as well as a stake in digital wallet and financial services.

The funding — about a fifth of Grab’s last known valuation of $14 billion — comes amid growing questions over the company’s ability to live up to its lofty price tag as it grapples with the impact of the coronavirus pandemic. Chief Executive Officer Anthony Tan said the company is facing its “single biggest crisis,” while co-founder Tan Hooi Ling warned in May of a “long winter.” Existing investors have also been frustrated by what they see as value-destroying competition with Grab’s regional arch-rival Gojek.

The world’s biggest ride-hailing companies have waged years of costly battles in each others’ territories before they agreed to stay out of each others’ core markets. The truce left Uber with considerable stakes in its rivals worth more than $9 billion, including a 23.2% stake in Grab at the end of 2018. Under the terms of a deal that Uber struck to exit Southeast Asia, Grab is on the hook for more than $2 billion to the San Francisco-based company if it doesn’t go public by mid-2023.

Masayoshi Son’s SoftBank Group Corp., an investor in all of the world’s biggest ride-hailing companies, is at the center of the discussions. The Japanese company has used its position as a major shareholder to push Uber to unload stakes in Grab, Didi Chuxing of China and Russia’s Yandex, the person said. Uber said in April it would write down about $2 billion in those investments after the coronavirus pandemic upended the ride-hailing business. Representatives of Grab declined to comment, while Uber and Softbank didn’t immediately reply to queries. Alibaba offered no immediate comment.

SoftBank has also pushed Grab to make peace with Gojek. Even as speculations about a possible merger have re-surfaced, the two are far from reaching a deal, according to people familiar with the matter. The negotiations are hampered by a hostile relationship between the two companies and the complexity of coordinating between so many investors, they said.

JPMorgan Chase & Co. is advising Grab and Goldman Sachs Group Inc. is advising Gojek, other people familiar with the matter said. One scenario discussed in the past is potentially combining only the companies’ transportation business in Indonesia, one of them said. Grab and Gojek, valued at $10 billion, are fierce rivals with an ambition to create an all-in-one “super app.” They also compete in food delivery and financial services.

Indonesia, by far the largest and the most promising market in Southeast Asia, remains the key sticking point in any potential merger, with both companies wanting a majority stake in the merged business there, according to the people. Gojek, seen as Indonesia’s national champion whose app has been downloaded most in the country, won’t be squeezed into a deal, according to another person familiar with the discussions. It has in the past denied merger speculation.

Any deal would also likely face regulatory hurdles because it would combine the top two players in the region, reducing competition in ride-hailing and newer fields like food delivery and finance.

The pandemic and lockdown measures have battered both companies, forcing them to cut jobs and streamline their businesses. Still, Gojek pulled in new capital from Facebook Inc. and PayPal Holdings Inc., a show of confidence in its efforts to create a digital payments platform in the region.

Source: Bloomberg 

Alibaba in talks to invest US$3b in Grab ⁠— sources

The Covid-19 pandemic has become a catalyst for the ASEAN market to adopt e-commerce earlier than forecasted, according to the Malaysia Digital Economy Corporation (MDEC).

Chief operating officer Datuk Ng Wan Peng said prior to the pandemic, MDEC forecasted ASEAN e-commerce users to reach 310 million by 2025.

“Covid-19 has prompted more people to go online and now the number has reached 340 million,” she said in her speech at the signing of a memorandum of understanding (MoU) between the Malay Traders and Entrepreneurs Association of Malaysia (Perdasama) and Jocom MShopping Sdn Bhd here today.

The MoU will enable Perdasama entrepreneurs nationwide to market their products to China, Australia and ASEAN markets using various e-commerce platforms through Jocom.

Ng said the number of e-commerce users in ASEAN which had surpassed the 2023 target showed there was a lot of potential in the market.

“When more go online that means businesses can sustain as well as keep jobs for those in the logistics and delivery industry,” she said.

She added that MDEC would continue to assess the market in ensuring that micro, small and medium enterprises (MSME) in the country could keep going and sustain in the new digital economy.

Perdasama’s Putrajaya Women chief Rohana Maamur said the MoU would help 15,000 association members nationwide to market their product globally, amidst the Covid-19 economic challenges.

Jocom MShopping chief executive officer Joshua Sew said such collaboration would assist and grow Malaysia’s small and medium enterprises, as well as contribute to the country’s gross domestic product.

Source: Bernama 

E-commerce users in ASEAN surpasses 2025 forecast

Nestle will do more acquisitions, also big ones, the food giant’s chief financial officer (CFO) said on Wednesday.

“We have been very disciplined, but that has not prevented us from doing sizeable acquisitions – Starbucks, Atrium, now Aimmune – and there will be probably more in the future as well because we really want to go there,” Francois-Xavier Roger said in a webcast.

Roger said Nestle did not want to deleverage the company or reduce its scale so acquisitions were clearly on the agenda if they were a strategic and cultural fit and offered a proper financial return.

“That is essentially around nutrition, health and wellness or high-growth categories, but not on an exclusive basis, we can also invest outside of these high-growth categories if we find the right opportunities,” Roger said in the webcast of a Barclays conference in Boston.

Roger said Nestle would continue to generate efficiencies, but would not let all of them flow to the bottom line.

“In the future, there will be some margin improvement, but not to the same extent because we’ll use part of the savings to support our growth, that is essentially marketing spend and to finance the sustainability cost that will rise,” he said.

Nestle said in July it was aiming for 2-3% organic sales growth this year as demand for high-end pet food and health products held up during the second quarter.

Nestle shares were up 1.5% at 1318 GMT.

Source: Reuters 

Nestle likely to do more big acquisitions, says CFO

US Secretary of State Mike Pompeo has underscored the US commitment to partnering with ASEAN countries in economic recovery efforts, Vietnam News Agency (VNA) reported Thursday.

It said Pompeo made the statement when attending the 10th East Asia Summit Virtual Foreign Ministers’ Meeting between 10 ASEAN countries and their partners of China, India, Japan, South Korea, Australia, New Zealand, Russia and the US, and the annual ASEAN-US Foreign Ministers’ Meeting held online within the framework of the 53rd ASEAN Foreign Ministers’ Meeting and related meetings from Sept 9 to 12.

VNA reported that at the meetings, Pompeo lauded ASEAN countries for their transparent responses to the COVID-19 pandemic, and praised Vietnam – ASEAN Chair – for its work convening ASEAN Foreign Ministers during these unprecedented times.

He also reiterated US support for the ASEAN Outlook on the Indo-Pacific and its role in guiding US engagement with ASEAN, and further emphasised the bloc’s important role at the centre of the US vision for the Indo-Pacific.

Pompeo also highlighted US support for principles of openness, inclusiveness, transparency, and respect for international law, which are shared across the US’s Indo-Pacific vision, ASEAN’s Outlook on the Indo Pacific, and the visions of many other EAS member states.

On the tensions in the East Sea, Pompeo raised concerns over the China’s aggressive actions in the sea. He reiterated that the US, in line with the 2016 Arbitral Tribunal Award, regards Beijing’s expansive maritime claims in the East Sea as unlawful, VNA reported.

He also called for a cessation of violence and a negotiated solution to escalating violence in Rakhine State of Myanmar, and for the Democratic People’s Republic of Korea to abandon its weapon of mass destruction (WMD) and ballistic missile programmes, as required by UN Security Council resolutions.

Source: Bernama 

US pledges to cooperate with ASEAN in fostering economic recovery

Thailand has proposed to set up ASEAN Small and Medium Enterprises (SMEs) Recovery Facility for post-COVID-19 recovery in the region.

In a statement, the Ministry of Foreign Affairs (MFA) said Deputy Prime Minister and Foreign Minister Don Pramudwinai has put forward the proposal when joining the 53rd ASEAN Foreign Ministers’ Meeting (AMM-53) via video conference from Bangkok on Wednesday.

“The Deputy Prime Minister proposed setting up an ASEAN SMEs Recovery Facility as a new financing facility for the post-COVID-19 recovery and revival of SMEs in the region,” it said.

The AMM-53 and related meetings kicked-off yesterday until Saturday, with discussions on COVID-19 set to be one of the main agenda together with the preparation for the 37th ASEAN Summit and Related Summits in November.

The meeting was chaired by Vietnam’s Deputy Prime Minister and Foreign Affairs Minister, Pham Binh Minh, and attended by Secretary-General of ASEAN Datuk Lim Jock Hoi and all ASEAN Foreign Ministers.

Vietnam is the Chair of ASEAN 2020.

The statement said AMM-53 discussed ways to effectively contain the spread of COVID-19 and to maintain the continuity of the global supply chain, especially in medical supplies and equipment.

“The ASEAN Foreign Ministers underscored the urgent need for ASEAN to collectively address economic recovery post-COVID-19,” it said.

The statement said ASEAN Foreign Ministers discussed regional situations of common concern such as the South China Sea, irregular migration in the Indian Ocean, and the situation in the Korean Peninsula, and also received updates regarding the situation in Rakhine State in the context of developmental impacts from COVID-19.

The MFA said Don also joined the 27th ASEAN Coordinating Council and discussed the progress and ongoing efforts of ASEAN in combating the COVID-19 pandemic and reiterated the commitment to further expedite the implementation of the ASEAN Leaders’ decision on the matter including enhancing cooperation on vaccine development and research as well as encouraging the effective operationalisation of the COVID-19 Response Fund.

Thailand underscored the importance of human security, utilisation of digital technology, and enhancing sustainable development to support post-COVID-19 recovery, it said.

During the Special Session of the ASEAN Coordinating Council Meeting on Sub-Regional Development, initiated by Vietnam to discuss ASEAN’s role on sub-regional development, Don highlighted the core objective of ASEAN integration, including narrowing development gaps, sustainable development, and human capital development, which would help drive forward development in the sub-regions.

“He (Don) further emphasised the importance of enhanced regional connectivity, particularly among various economic corridors within sub-regional frameworks, which would leverage ASEAN position in a global value and supply chain,” it said.

Source: Bernama 

Post Covid-19: Thailand proposes setting up Asean SMEs Recovery Facility

Vietnamese Deputy Prime Minister and Foreign Minister Pham Binh Minh attended the ASEAN-China Ministerial Meeting held online within the framework of the 53rd ASEAN Foreign Ministers’ Meeting (AMM 53) and related meetings on September 9.

He also co-chaired the 21st ASEAN+3 Foreign Ministers’ Meeting and the ASEAN-Japan Ministerial Meeting, and attended the ASEAN-South Korea Ministerial Meeting, Vietnam news agency (VNA) reported.

At the ASEAN-China Ministerial Meeting, the ministers shared the view that the strategic partnership between ASEAN and China has brought about practical interests to both sides.

ASEAN applauded China’s cooperation and support in the fight against COVID-19, and suggested the country actively participate in the grouping’s initiatives like the COVID-19 response fund, regional reserves of medical supplies and recovery framework.

The two sides agreed to step up cooperation in such priority areas as digital economic development, cyber security, natural disaster response, people-to-people exchange and maritime collaboration, while pushing ahead with the building of the ASEAN-China action plan for 2021-2025.

At the 21st ASEAN+3 Foreign Ministers’ Meeting, Minh said this is time for the ASEAN+3 mechanism to prove its value and capacity in the pandemic combat, and suggested China, Japan and the South Korea continue their coordination with ASEAN in this regard, towards sustainable regional recovery.

The ministers consented to continue implementing the resolutions adopted by leaders at the Special ASEAN+3 Summit on COVID-19, and committed to enhancing cooperation in food security via the ASEAN+3 Emergency Rice Reserve (APTERR), digital transformation, regional financial and economic stability through the Chiang Mai Initiative Multilateralisation (CMIM) Agreement, and health care.

They were also resolved to soon conclude the Regional Comprehensive Economic Partnership (RCEP) agreement.

At the ASEAN-Japan Ministerial Meeting, Minh called on Japan to continue its support to and engagement in ASEAN’s initiatives relating to COVID-19 and soon help with the establishment of the ASEAN centre for public health emergencies and emerging diseases in 2020.

He also suggested the two sides make the best use of the ASEAN-Japan Agreement on Comprehensive Economic Partnership.

Meanwhile, during the ASEAN-South Korea Ministerial Meeting, the two sides affirmed their resolve to enhance cooperation to consolidate the strategic partnership.

ASEAN lauded the South Korea for its support in the pandemic combat and called on the country to assist the grouping in digital transformation, the application of new technologies and optimising opportunities of the Fourth Industrial Revolution.

The ministers approved the action plan between ASEAN and the South Korea for 2021-2025.

In the discussions, the ministers of China, Japan and South Korea expressed their desire for strengthening the cooperation among the sides, their high valuation of the ASEAN’s effective response to the COVID-19, and readiness to support ASEAN’s initiatives in the pandemic fight.

On regional and international situation, the Foreign Ministers of ASEAN and partner countries exchanged ideas on issue of common concern like the situation on the Korean Peninsula, Rakhine state and the East Sea. They stressed the need for close coordination, strengthened dialogues and cooperation on the basis of upholding the rule of the law and common standards.

They shared a joint viewpoint on maintaining peace, stability, safety and security, freedom of navigation and aviation in the region, including the East Sea; and stressed the importance of settling the disputes by peaceful measures on the basis of international law.

Speaking at the meetings, Minh affirmed that as the Chair of the ASEAN 2020, Vietnam will, together with other ASEAN members, actively work out measures and policies to further deepen the relations of strategic cooperation with the partners. He asked the partner countries to continue supporting ASEAN in the building of the Community, and proposed to intensify the cooperation among the sides in the research and production of vaccines and medicines against COVID-19.

On international and regional situation, Minh expressed his concerns on the complicated development in the East Sea while states are focusing their efforts against the pandemic. Legitimate rights and interests of the sides must be ensured, and differences and disputes settled on the basis of international law, including the 1982 UNCLOS, he stressed.

The official asked the sides to fully and effectively implement the Declaration on the Conduct of the Sides in the East Sea (DOC) and to soon resume the negotiations on the Code of Conduct in the East Sea (COC)

Repeating ASEAN’s stance on the East Sea at the 36th ASEAN Summit in June 2020, Minh called on the sides to intensify the building of trust and mutual trust, and to prevent the acts that complicate the situation and affect peace and stability.

There must be no militarisation while the disputes must be settled through peaceful measures with respect to international law, he stressed.

Source: Bernama 

Asean steps up cooperation with China, Japan, South Korea

The global economy is likely to recover to pre-pandemic levels by early next quarter, about three months earlier than previously expected, economists at Morgan Stanley said.

“The evidence indicates that the virus/economy equation has shifted decisively from the early days of the outbreak,” they said in a note to clients, saying that the recovery has continued to gather momentum as countries get better at managing the virus.

The US economy could reach its pre-Covid 19 levels by the second quarter of next year, while the entire developed markets could reach that level by the third quarter of next year, they said.

Coupled with unprecedented levels of fiscal and monetary support and possible disruptions to trade, the prospective recovery is likely to be accompanied by stronger inflation, they said.

Source: Reuters 

Global economy seeing sharper V recovery, raising case for inflation — Morgan Stanley

Asia Pacific (APAC) business leaders’ confidence on growth prospects of the global economy over the next three years has dropped, according to the 2020 KPMG Global Chief Executive Officers (CEOs) Outlook report.

The report revealed that only 22 per cent of the CEOs remained confident about the growth prospects of the global economy, a significant drop from 67 per cent in January 2020.

However, the report said the CEOs are much more assured in the resilience of their own business with 63 per cent expressing confidence in their company’s growth for the same period.

KPMG conducted two surveys – one at the onset of the pandemic in January and a second survey in July/August, the first study of its kind, which measures how CEOs’ priorities and concerns have changed during the global pandemic.

The report revealed that business leaders have radically shifted their perspectives by prioritising digital transformation, talent, and environmental, social and governance (ESG) factors as their top agendas while assessing the long-term impact of COVID-19.

KPMG Malaysia managing partner Datuk Johan Idris said a majority of the CEOs have undertaken critical measures to bolster their companies’s medium-term resilience.

“This is particularly evident at the height of the crisis when business leaders worldwide took steps to maintain business-as-usual activities in answer to restricted movements.

“With the extension of the Recovery Movement Control Order (RMCO) until December 31 this year, business leaders are now forced to relook their operational strategies and the key to this is the ability to move away from short-term measures and prepare for mid- and long-term growth,” he commented.

The report revealed that one way CEOs are collectively doing to secure long-term growth is by channelling resources towards digital transformation initiatives.

It said before the pandemic, 64 per cent of the CEOs felt overwhelmed by the lead times required to achieve significant progress on digital transformation.

However, following worldwide lockdowns and the need for physical distancing, 46 per cent of them reported that progress for their digitisation has sharply accelerated, putting them years in advance, with 61 per cent planning to prioritise more capital investment in buying new technology.

“Clearly, there has been a momentous change in mindset in that the CEOs are now more confident and willing to invest in technology to make their companies more operationally resilient, agile and customer-focused to achieve growth during this tumultuous time.

“We expect digital acceleration to increase in speed and scope even after the pandemic subsides,” said Johan.

The report also revealed that among the threats to long-term growth due to the pandemic are talent risk, supply chain risk and return to territorialism and cyber security risks.

The CEOs have identified that talent risk has now risen to be the highest perceived threat to long-term growth which encompasses recruitment/retention, overall wellbeing and health of staff, which were the least concerned about at the beginning of the year.

This reflects the challenges faced with recruiting and retaining personnel while motivating the workforce despite disruption to the usual ways of working, it said.

In addition, the report said the rise in supply chain concerns compared to earlier in the year could be attributed to the fact that over two-thirds of organisations have had to rethink their global supply chain approach given the disruptive impact of the pandemic.

This could potentially lead to a redesign of global supply chains to become more agile in response to changing customer needs, and more robust to reduce risks and disruptions over the long term, it said.

The report also highlighted that the recent developments have also driven 78 per cent of the CEOs in Asia Pacific to develop a stronger emotional connection to their organisation’s purpose, by shifting focus on the ‘social’ component of their ESG programme.

“Recovery from the pandemic does not mean a return to normal, but instead an opportunity to define our post-pandemic reality.

“As the crisis continues to change what good corporate leadership looks like, the role of the CEO is more important than ever in steering the business towards growth in the new reality and beyond,” Johan added.

Source: Bernama 

APAC CEOs’ confidence on global economy growth prospect shaken — KPMG

Roberto Azevedo stepped down as director-general of the World Trade Organization on Monday, becoming the first WTO chief to leave office ahead of time.

Azevedo’s surprise announcement in May that he would end his second term 12 months ahead of schedule has forced the organization to speed up its usually lengthy process of selecting a new head. Now eight candidates from Africa, Asia, Europe and Latin America are vying for the post. There is no candidate from the United States.

A new WTO leader will be appointed on Nov 7, but with the US holding presidential elections on Nov 3, the outcome becomes hard to predict. If Donald Trump wins a second term, he might create obstacles, and if Joe Biden wins, one will have to wait and watch to see whether he will continue Trump’s WTO policies.

Founded in 1995, the WTO was born out of the General Agreement on Tariffs and Trade to resolve trade disputes and disagreements between countries. It was originally a temporary and non-permanent agency. However, the mechanism to settle trade disputes between the US and major European countries was found inadequate as globalization led to the participation of an increasing number of emerging economies.

Thus globalization helped upgrade and create a powerful WTO, but it has also created problems for it. Since 2018, the US administration has become a major cause of the WTO’s decline. The US government keeps saying “no” to the WTO’s structure, the way it operates, and its rules and fees-sharing system.

Since 1995, the WTO has devised three mechanisms－for multilateral trade negotiations, disputes settlement and trade policy supervision. The multilateral negotiations mechanism has now reached a dead end. The disputes settlement mechanism, which originally consisted of seven judges, is now left with just one, bringing its functioning to a halt. And since there are no multilateral negotiations, the policy supervision body exists only in name.

Thanks to the US’ unilateralism, the WTO’s multilateral efforts have been in vain. To some extent, the WTO is facing the same problems that globalization is.

The world may have to face the fact that multilateral cooperation is being replaced by geostrategic competition, which may cause different countries to form “cliques” and then establish new dispute settlement mechanisms. Compared with a globally recognized dispute settlement body like the WTO, such “cliques” will undoubtedly continue to be bogged down by frictions.

We expect the new WTO leader to reverse the organization’s downslide and save globalization, but we must be fully prepared to embrace the new geostrategic competitions. The post-pandemic world needs a robust global industrial chain and high-speed market operation to offset losses. Only a fairer and more efficient globalization can help the world economy’s recovery.

Source: China Daily 

Efficient globalization to save world’s economy

Global sales of semiconductors rose 4.9% year-on-year in July to US$35.2 billion from US$33.5 billion a year earlier, said the US-based Semiconductor Industry Association (SIA).

In a statement on its website Sept 3, SIA said that on a month-on-month basis, the figure was 2.1% higher than the June 2020 total of US$34.5 billion.

Monthly sales are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average.

SIA president and CEO John Neuffer said the global semiconductor market has remained largely resistant to global macroeconomic headwinds through the first seven months of the year, with sales in July increasing on both a year-to-year and month-to-month basis, but substantial market uncertainty remains for the rest of the year.

“Sales into the Americas remained strong in July, increasing 26 percent year-to-year, and year-to-year sales were up globally among both memory and non-memory products,” he said.

SIA said that regionally, sales increased on a year-to-year basis in the Americas (26.3%), China (3.5%), and Asia Pacific/All Other (1.4%), but decreased in Japan (-0.4%) and Europe (-14.7%).

It said that on a month-to-month basis, sales increased across all regions: Asia Pacific/All Other (4.5%), Japan (3.4%), Europe (3.2%), the Americas (0.9%), and China (0.5%).

Source: The Edge Markets 

Global semiconductor sales up 4.9% y-o-y in July to US$35.2b, says SIA

The UK government and businesses already were focused on deepening partnerships in the Asia-Pacific region before the coronavirus pandemic, and now are doubling down on promoting free trade and digital partnerships there, the country’s trade commissioner for Asia-Pacific said in a Bloomberg Television interview.

• UK trade with Southeast Asia is up 70% over the past decade to 42 billion pounds (US$56 billion), and “we could do more,” Natalie Black told Bloomberg Television’s Haslinda Amin and Rishaad Salamat
• UK businesses have a “huge amount of interest” in developing digital trade partnerships in Asia-Pacific. The item is a real focus for the UK, including in trade talks with Singapore and Vietnam, she said
• “We collectively need to put free trade at the center of everything that we’re trying to achieve” amid the Covid recovery in preserving jobs, supply chains, and keeping affordable goods and services flowing: Black
• Asked about US-China tensions, Black said the UK is “defending the multilateral, rule-based system” and there are “no winners in a trade war”
• UK focus is “very much on bilateral agreements” in Asia-Pacific, especially with Japan, Australia, and New Zealand; “all are progressing very well”
• Asked whether Brexit remains a worry among partners in Asia-Pacific trade talks, Black said the issue used to be more prominent but lately “has gone down in the agenda.” Black said she does expect the next round of formal Brexit talks, starting next week, to be “challenging”
• UK remains “very interested” in how to contribute to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and is closely following negotiations on the Regional Comprehensive Economic Partnership
• NOTE: Vietnam hosted virtual meetings of Asean economic ministers in late August, which included the UK’s first formal economic engagement with Asean

Source: Bloomberg 

UK has ‘huge’ interest in Southeast Asia, trade official says

Only 22% of chief executive officers (CEOs) in Asia Pacific remain confident on the global economy’s growth prospects over the next three years, a significant drop from 67% reported in January, according to the 2020 KPMG Global CEO Outlook report.

At the same time, the CEOs surveyed are more assured of the resilience of their own business, as 63% expressed confidence in their company’s growth for the same time period.

The report aims to measure how CEOs’ priorities and concerns have changed during the global pandemic by conducting two surveys, at the onset of the pandemic in January and a second survey in July/August.

The study found business leaders have shifted their perspectives as businesses and governments around the world continue assessing the long-term impact of Covid-19, which translates to a shift in prioritising digital transformation, talent and environmental, social and governance (ESG) factors at the top of their agendas during this period of uncertainty.

KPMG Malaysia’s managing partner, Datuk Johan Idris, commented that a majority of CEOs have undertaken critical measures to bolster their company’s medium-term resilience.

He pointed out that this is evident by the decision to maintain business-as-usual activities by business leaders worldwide in response to the movement restrictions at the height of the crisis.

“With the extension of the recovery movement control order (RMCO) until Dec 31, 2020, business leaders are forced to relook at their operational strategies and key to this is the ability to move away from short-term measures and prepare for mid and long-term growth,” Johan said in a press release.

One of the efforts towards long-term growth has been the allocation of resources towards digital transformation initiatives, with 46% of CEOs reporting that progress for their digitisation of operations has sharply accelerated, putting them years in advance of where they expected to be.

In addition, 61% stated they plan to prioritise more capital investment in buying new technology and digitisation.

CEOs have identified talent risk, which encompasses recruitment/retention, overall wellbeing and health of staff, as the highest perceived threat to long-term growth. This could reflect the challenges faced with recruiting and retaining personnel while motivating the workforce despite disruption to the usual ways of working.

According to the report, 72% of CEOs said remote working caused them to make significant changes to their policies to nurture culture, while 69% reported how remote working has widened their potential talent pool for future hires.

There has also been a rise in supply chain concerns, as 72% surveyed have had to rethink their global supply chain approach given the disruptive impact of the pandemic.

In addition, the report saw 78% of CEOs in Asia Pacific to develop a stronger emotional connection to their organisation’s purpose, with 66% stating how they responded to the pandemic by shifting focus towards the ‘Social’ component of their Environmental, Social, and Governance programme.

There has been a rise in supply chain concerns, as 72% of the CEOs surveyed have had to rethink their global supply chain approach given the disruptive impact of the pandemic.

Source: The Sun Daily 

CEOs in Asia Pacific turn more pessimistic on global economic growth prospects: KPMG survey

At a factory south of Toyota City in Aichi Prefecture, robots have started sharing the work of quality-control inspectors, as the pandemic accelerates a shift from Toyota’s vaunted “go and see” system which helped revolutionize mass production in the 20th century.

Inside the auto-parts plant of Musashi Seimitsu Industry Co Ltd, a robotic arm picks up and spins a bevel gear, scanning its teeth against a light in search of surface flaws. The inspection takes about two seconds – similar to that of highly trained employees who check around 1,000 units per shift.

“Inspecting 1,000 of the exact same thing day-in day-out requires a lot of skill and expertise, but it’s not very creative,” Chief Executive Hiroshi Otsuka told Reuters. “We’d like to release workers from those tasks.”

Global manufacturers have long used robots in production while leaving the knotty work of spotting flaws mainly to humans. But social distancing measures to prevent the spread of COVID-19 have prompted a rethink of the factory floor.

That has spurred the increased use of robots and other technology for quality control, including remote monitoring which was already being adopted before the pandemic.

For a chart on global installations of manufacturing robots, click here.

In Japan, such approaches represent an acute departure from the genchi genbutsu, go-and-see methodology developed as part of the Toyota Production System and embraced by Japanese manufacturers for decades with almost religious zeal.

That process tasks workers with constantly monitoring all aspects of the production line to spot irregularities, and has made quality control one of the last human hold-outs in otherwise automated factories.

Yet even at Toyota Motor Corp itself, when asked about automating more genchi genbutsu procedures, a spokesman said: “We are always looking at ways to improve our manufacturing processes, including automating processes where it makes sense to do so.”

QUALITY DEMANDS

Improvements in artificial intelligence (AI) have come in tandem with increasingly affordable equipment but also stricter quality requirements from customers. However, automating inspections is challenging, given the need to teach robots to identify tens of thousands of possible defects for a specific product and apply that learning instantly.

Musashi Seimitsu’s low defect rate of one per 50,000 units left the firm without enough defective examples to develop an efficient AI algorithm.

But a solution came from Israeli entrepreneur Ran Poliakine, who applied AI and optics technology he had used in medical diagnostics to the production line.

His idea was to teach the machine to spot the good, rather than the bad, by basing the algorithm on up to 100 perfect or near-perfect units – a modification of the so-called golden sample.

“If you look at human tissue, you are teaching an algorithm what is good and what is not good, and you only have one second to perform the diagnostic,” he said.

Since the breakthrough, Poliakine’s startup SixAI and Musashi Seimitsu have established MusashiAI, a joint venture which develops and hires out quality control robots – a first in the field.

Enquiries from automakers, parts suppliers and other firms in Japan, India, the United States and Europe have quadrupled since March when the novel coronavirus went global, Poliakine said.

“COVID-19 has accelerated the move. Everything is on steroids now, because working from home is showing that remote work can work,” he said.

For a chart on the five biggest users of manufacturing robots, click here.

Earlier this year auto parts maker Marelli, which has operational headquarters in Japan and Italy, also began using AI quality inspection robots at a plant in Japan, and told Reuters last month that it wanted AI to play a bigger role in quality inspections in the coming years.

Printer maker Ricoh Co Ltd, plans to automate all of the production processes for drum units and toner cartridges at one of its Japan plants by March 2023. Robots perform most of the processes already, and since April, technicians have been monitoring equipment on the factory floor from home.

“Of course, you need to be on site to assess and execute solutions when issues come up, but identifying and confirming are tasks we can now do from home,” said Kazuhiro Kanno, general manager at Ricoh’s printer manufacturing unit.

Musashi Seimitsu will not say when it envisions its factory floors to be fully automated, but Otsuka said AI stands to complement, not threaten, the go-and-see system.

“AI doesn’t ask ‘Why? Why?’ but humans do. We’re hoping to free them up to ask why and how defects occur,” he said. “This will enable more people to look for ways to constantly improve production, which is the purpose of genchi genbutsu.”

Source: Reuters 

AI quality inspection robots playing bigger role at factories in Japan

Global trade is on course to recover more quickly from the coronavirus pandemic than after the 2008 financial crisis, according to Germany’s Kiel Institute for the World Economy.

Shipping volumes are already back at levels that took more than a year to reach following the collapse of Lehman Brothers Holdings Inc, hinting at a V-shaped recovery, the institution’s president Gabriel Felbermayr said.

Trade has seen a “deep slump and a quick rebound”, he said. “The current situation is significantly better” than a decade ago.

The pandemic has pushed the global economy into what may be its deepest slump since the Great Depression. The initial rebound reflects the lifting of severe restrictions to contain the virus, and policymakers have warned against premature optimism that the worst has passed.

The World Trade Organization said earlier this month that projections for a strong, V-shaped trade rebound in 2021 might be “overly optimistic”.

Yet others — including the Kiel Institute — are taking a more confident stance. Yesterday, International Monetary Fund managing director Kristalina Georgieva pointed to a “revival of trade”.

The government of export-heavyweight Germany expects the economic fallout from the coronavirus to be smaller than expected this year, according to a person familiar with updated forecasts to be published later today.

The Kiel Institute argued container-shipping activity in key areas supported its conclusion, with ship movements in the Americas, Asia, and Europe normalising. Freight capacity was back at levels that would be expected in late August — even without a crisis.

Source: Bloomberg 

Global trade seen rebounding faster now than post-Lehman

ASEAN member states must invest in the next generation as the potential of the region has always been limited by the disparity in digital skills among the countries, prominent Malaysian entrepreneur Datuk Seri Vijay Eswaran said.

He said the COVID-19 environment has fostered this tremendous growth in terms of digital skills, particularly across the youth in ASEAN.

“The future depends on how these digital skills will bring us together,” Vijay, who is also executive chairman of the QI Group of Companies, said when addressing the 2020 ASEAN Leadership and Partnership Forum and Virtual Conference recently.

His call comes as ASEAN Economic Ministers wrapped up their 52nd meeting via a digital platform and reaffirmed their resolve to ensure macroeconomic and financial stability and continuous supply chain connectivity, particularly for the flow of essential goods and services within the region that are necessary to address COVID-19.

Vijay said that it was the digital frontier that represents a new area where entrepreneurship could grow.

Governments should work together to increase digital adoption, learning new skills, thinking creatively and developing new business models.

“If we think as a region, then there is a real hope for the future moving ahead. If we start saying ASEAN first, then ASEAN will have a viable future for us all,” he said.

He also said ASEAN members should unite as a formidable adversary and trading bloc, using their economic clout to compete with superpowers like China and the US.

Otherwise, if they remain divided and act unilaterally, member states run the risk of becoming irrelevant,

Individually, not any of the 10 ASEAN economies were capable of taking on the trading blocs across the world, which was why it was imperative for them to put their differences aside in pursuing collective goals and if they want to emerge as an economic powerhouse.

Vijay also pointed out that Malaysia and Thailand are the two unique forces that can bridge the divide to work together, especially in efforts to bring down barriers such as tariffs and border controls and recognising each other’s skill sets, and encouraging free movement of labour.

He said Malaysia and Thailand represent the real hope of this happening and that both countries should take lead roles as bridging agents to integrate the rest of ASEAN, specifically connecting the North and South which will open up the region significantly.

Source: Bernama 

ASEAN states must invest in next generation to overcome disparity in digital skills

Malaysia, together with ASEAN member countries, will collaborate and support ASEAN’s external partners’ COVID-19 vaccine development through sharing of key clinical data and reports, said the Ministry of International Trade and Industry (MITI).

ASEAN’s external partners are China, Japan, the United States, Russia, United Kingdom and Hong Kong.

In a statement today, MITI said the COVID-19 pandemic had brought about unprecedented challenges, resulting in the loss of lives and livelihoods, as well as contributing to the global economic slowdown.

“All ministers reaffirmed their commitment to take collective actions to mitigate the economic impact of this pandemic.

“Ministers also restated their resolution to ensure macroeconomic and financial stability and continuous supply chain connectivity, particularly for the flow of essential goods and services within the region,” it said.

The statement was released after the 52nd ASEAN Economic Ministers’ (AEM) Meeting and related meetings were held virtually from Aug 24 – 29, 2020.

Hosted by Vietnam as the chair of ASEAN 2020, it was the first time in ASEAN’s history that the full-fledge AEM Meetings were conducted entirely virtual.

Touching on the meetings, MITI said all ASEAN member states pledged to work closely for recovery by developing regional resiliency and responses in facing the COVID-19 pandemic to ensure regional stability and continued prosperity.

Meanwhile, MITI also said Malaysia is pleased that the Regional Comprehensive Economic Partnership (RCEP) participating countries made significant progress towards finalising the RCEP Agreement for signing at the 4th RCEP Summit in November 2020, in a bid to keep markets open for trade and investment, as well as strengthening the sustainability and resiliency of regional and global supply chains.

Source: Bernama 

ASEAN to share data to support COVID-19 vaccine development – MITI