The economy in the Asia-Pacific (APAC) region is in a better position, with many countries still in expansion or recovery mode from the pandemic.

In a research note today, Moody’s Analytics said, however, if conditions outside of the APAC region continue to deteriorate, recession risks will increase, particularly as exports are a critical growth driver, with the United States and Europe important sources of demand.

“Moreover, central banks in Asia are stepping up monetary policy tightening, which will increasingly pressure improved domestic demand,” it said.

It said that given the heightened risk of recession, it is not surprising that global businesses have become more anxious. The weekly Moody’s Analytics business survey confirmed that sentiment has been deteriorating since early 2022.

“There is not always a strong causal link between sentiment and the real economy. With so much thrown at households and businesses over the past two years, there is heightened risk that this ongoing anxiety will contribute to a deterioration in hiring, investment and spending.

“This concern has increased weight — business expectations for economic conditions six months ahead are expected to deteriorate markedly and are at the lowest level since the global financial crisis in 2009,” it added.

Meanwhile, in the separate note, Moody’s Analytics said total debt-to-gross domestic product (GDP) ratios across the APAC region have remained well above pre-pandemic levels, although some countries such as Singapore, Malaysia and Indonesia record lower debt ratios in 2021 compared with 2020.

It said this was due partly to the success of containing domestic COVID-19 cases while keeping production lines open.

On the household debt, it said the government fiscal policies across Southeast Asia have offered support to stabilise household debt in 2021.

“However, the household debt-to-GDP ratios in Malaysia and Thailand remain among the highest in Southeast Asia and are at risk of non-performance as interest rates normalise.

“Elevated household debt remains a major problem despite a recent slowdown in the pace of household debt growth and many Southeast Asian countries are also facing skyrocketing housing prices as hot money and speculation continue to push up prices,” it said.

Source: Bernama

Asia-Pacific economy in better position, still in recovery mode — Moody’s Analytics

Global information technology (IT) spending is projected to rise 3% year-on-year in 2022 to US$4.5 trillion (about RM20.02 trillion), according to Gartner Inc.

In a statement on Thursday (July 14), the firm said while IT spending is expected to grow in 2022, it will be at a much slower pace than in 2021 due to spending cutbacks on PCs, tablets and printers by consumers, causing spending on devices to shrink 5%.

Gartner distinguished research vice president John-David Lovelock said inflation is top of mind for everyone.

“Central banks around the world are focusing on fighting inflation, with overall inflation rates expected to be reduced through the end of 2023.

“However, current levels of volatility being seen in both inflation and currency exchange rates are not expected to deter chief information officers’ (CIOs) investment plans for 2022.

“Organisations that do not invest in the short term will likely fall behind in the medium term and risk not being around in the long term,” he said.

Gartner said price increases and delivery uncertainty, exacerbated by the Russian invasion of Ukraine, had accelerated the transition in purchasing preference among CIOs, and enterprises in general, from ownership to service — pushing cloud spending to an 18.4% growth in 2021 and an expected growth of 22.1% in 2022.

It said not only is cloud service demand reshaping the IT services industry, but it is also driving spending on servers to a 16.6% growth in 2022, as hyperscalers build out their data centres.

Gartner said spending on data centre systems is forecast to experience the strongest growth of all segments in 2022 at 11.1%.

Cloud consulting and implementation and cloud managed services are expected to grow 17.2% in 2022, from US$217 billion in 2021 to US$255 billion in 2022, helping to drive the overall IT services segment to a 6.2% growth in 2022.

Worldwide IT spending forecasts (millions of US dollars)

Source: Gartner (July 2022)

IT talent crunch

Gartner said the critical IT skills shortage being felt across the globe is expected to abate by the end of 2023, when the corporate drive to complete digital transformations slows down and there is time for upskilling and reskilling of existing staff.

However, it said that in the near term, CIOs will be forced to take action to balance increased IT demand and dwindling IT staffing levels.

The Gartner Global Labor Market Survey of nearly 18,000 employees in the first quarter of 2022 showed compensation is the No. 1 driver of IT talent attraction and retention.

Technology service providers are increasing prices for IT to allow for competitive salaries.

This is driving an increase in spending on software and services through 2022 and 2023.

Worldwide software spending is expected to grow 9.6% to US$806.8 billion in 2022, while global spending on IT services is forecast to reach US$1.3 trillion.

Lovelock said that additionally, CIOs are using more IT services to assist in the lack of skilled IT staff. Tasks that require lower skill sets tend to be outsourced to managed service firms to alleviate staff time, while critical strategy work, which requires high-end skills unobtainable by many enterprises, will increasingly be fulfilled by external consultants.

Source: The Edge Markets

Global IT spending to rise to US$4.5 trillion in 2022, says Gartner

KUALA LUMPUR (July 13): Global sales of total semiconductor manufacturing equipment by original equipment manufacturers are forecast to reach a record US$117.5 billion (about RM520.88 billion) in 2022, up 14.7% from the previous industry high of US$102.5 billion in 2021, and increase to US$120.8 billion in 2023.

In the mid-year total semiconductor equipment forecast — OEM perspective released on Tuesday (July 12) by US-based Semiconductor Equipment and Materials International (SEMI), both the front-end and back-end semiconductor equipment segments are said to be contributing to the market expansion.

SEMI said the wafer fab equipment segment, which includes wafer processing, fab facilities, and mask/reticle equipment, is projected to expand 15.4% to a new industry record of US$101 billion in 2022, followed by a 3.2% increase to US$104.3 billion in 2023.

SEMI president and chief executive officer Ajit Manocha said in line with the semiconductor industry’s determined push to increase and upgrade capacity, the wafer fab equipment segment is poised to reach the US$100 billion milestone for the first time in 2022.

“Secular trends across a diverse range of markets, coupled with strong investments in digital infrastructure, are powering another record year,” he said.

SEMI said that driven by demand for both leading-edge and mature process nodes, the foundry and logic segments are expected to increase 20.6% year-on-year to US$55.2 billion in 2022, and another 7.9% to US$59.5 billion in 2023.

It said the two segments account for more than half of total wafer fab equipment sales.

The association said strong demand for memory and storage continues to contribute to DRAM and NAND equipment spending this year.

The DRAM equipment segment is leading the expansion in 2022, with expected growth of 8% to US$17.1 billion.

The NAND equipment market is projected to grow 6.8% to US$21.1 billion this year. DRAM and NAND equipment expenditures are expected to slip 7.7% and 2.4% respectively in 2023.

After surging 86.5% in 2021, the assembly and packaging equipment segment is expected to grow 8.2% to US$7.8 billion in 2022 and edge down 0.5% to US$7.7 billion in 2023.

The semiconductor test equipment market is forecast to grow 12.1% to US$8.8 billion in 2022, and another 0.4% in 2023, on demand for high-performance computing applications.

SEMI said that regionally, Taiwan, China, and South Korea are projected to remain the top three equipment buyers in 2022.

It said Taiwan is expected to regain the top position in 2022 and 2023, followed by China and South Korea.

Equipment spending for other regions tracked, except for the rest of the world, which is expected to grow in 2022 and 2023.

Source: The Edge Markets

Global semiconductor equipment sales on track to hit US$118b in 2022, says SEMI

A green recovery from the Covid-19 pandemic in Southeast Asia has the potential to create US$172 billion (RM760.2 billion) in investment opportunities annually and generate more than 30 million jobs by 2030, according to the Asian Development Bank (ADB).

A new report by the bank identifies five areas that support a post-Covid-19 recovery through greener development, namely productive and regenerative agriculture, healthy and productive oceans, sustainable urban development and transport models, circular economy models, and renewable and efficient energy.

In a statement today, director general for Southeast Asia Ramesh Subramaniam said this report highlights key policy priorities for economies in the region that can help ensure that both socioeconomic and environmental aspirations are served in their pursuit of economic recovery.

“While several countries in the region have begun to support a green recovery, more needs to be done.

“We must encourage additional green stimulus, design carbon pricing schemes, reduce dependence on fossil-fuel intensive power, and attract private sector investors to large-scale renewable energy, sustainable transport, and clean urban projects,” he said.

A green recovery from Covid-19 is crucial to ensure an economically and environmentally resilient future, ADB said, noting that without concerted actions to address the environmental crises of climate change and biodiversity loss, the region’s long-term growth prospects could be constrained.

Other policy options identified in the report, the bank said, include intensifying research on green technologies, encouraging women entrepreneurs to participate in green business opportunities, and managing biodiversity better through open and integrated data systems.

“To implement a green recovery, Southeast Asian governments also need to identify sustainable sources of financing that will fund climate-friendly infrastructure investments and leverage green growth opportunities,” ADB said.

According to the report, financing approaches should include mobilising domestic resources through environmental and carbon taxes, reducing subsidies for fossil fuels, mobilising private investors by addressing risks related to green investments, and leveraging public and private finance through green funds such as the  Asean Catalytic Green Finance Facility.

It also called for a strong collaboration among neighboring economies and new partnerships with various stakeholders to ensure benefits accrue throughout the region.

ADB expressed its commitment to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.

Source: Bernama

ADB: Southeast Asia’s green recovery can create RM760 bln investment opportunities yearly

ASEAN is reopening its borders to tourism, which will be a strong boost to Asean GDP and employment. This in turn should support equity prices.

Asean equities earnings should be supported by multiple factors, such as Asean equities’ pro-cyclical tilt, an improving situation in China, and a sustainable earnings rebound from historical lows.

While Asean central banks are expected to normalise policy quicker than expected due to rising inflation, we believe the pace of tightening in Asean will unlikely be as urgent as the US.

As a whole, we remain cautiously optimistic on Asean equities. Valuations are marginally expensive at the moment, but multiples should look more palatable over time if our earnings forecasts materialise. Using our target P/E ratio of 16.0X, we forecast an attractive upside potential of 21 per cent by end-2024.

Investors looking to gain exposure to Asean equities can consider our two recommended products: Premia Dow Jones EM Asean Titans 100 ETF and Principal Asean Dynamic Fund – MYR.

Asean equities (gauged by the MSCI AC Asean Index) broadly comprise equities from Asean-5, namely Singapore, Indonesia, Thailand, Malaysia, and Philippines. While equities have generally done poorly in 2022, Asean equities have managed to remain relatively resilient, falling by just nine per cent year-to-date, compared to its global equity peers which have fallen almost 20 per cent year-to-date (in US dollar terms).

In this article, we reiterate our cautiously optimistic view on Asean equities as a whole, particularly as Asean reopens itself to the world.

MSCI AC Asean Index contains equities from Asean-5 countries.

Reopening will be shot in the arm for Asean

While Asean had an initially slow vaccination rollout, many key Asean countries now have vaccination rates above the global average, with Singapore leading the pack. As a result, Asean is now on the cusp of a full reopening, and the number of hotel searches already far surpasses pre-pandemic levels. Even though a complete tourism rebound is unlikely due to China’s strict border controls, the low pandemic-era base should still contribute to strong growth in tourism revenues.

The improvement in tourism outlook will be a significant boost to the region’s growth momentum in 2H22. Based on World Travel & Tourism Council data, in 2019 (pre-pandemic), the travel and tourism industry contributed a notable 12 per cent of Asean’s GDP and hired 42.6 million workers which represented 13 per cent of total employment.

In other words, the expected rebound in tourism should not only have a direct effect on GDP but also an indirect effect through higher employment rates within Asean.

Thus, we expect the region’s growth to see a steady rebound from 2H22 onwards, which is in line with Asian Development Bank estimates of around five per cent GDP growth in 2022 and 2023. Historically, Asean equity prices have generally tracked the region’s economic momentum, and we expect the improving macro backdrop in 2H22 should support equity prices.

Asean equities have held up relatively well compared to peers.

Asean equities likely to see solid earnings rebound

We expect Asean equities to see a solid earnings rebound of six per cent in 2022 and 13 per cent in 2023, buoyed by the improving macro outlook. Across its 10-year history, this is relatively high as positive year-on-year EPS growth averages around 10 per cent.

On a relative basis, Asean equities are also expected to generate stronger earnings growth than most global and EM peers. Even though global earnings are starting to see profit headwinds due to rising input costs and moderating global growth, we see sufficient support for Asean equity earnings arising from factors like Asean equities’ pro-cyclical tilt; improving situation in China; and for a sustainable earnings rebound from historical lows.

First, Asean equities have heavy allocations into traditionally cyclical sectors like financials (37 per cent), which are highly levered to economic growth. When growth momentum in the region improves, earnings tend to pick up as well.

Thus, with our view of an improving macro backdrop, we expect greater earnings upside given Asean equities’ pro-cyclical tilt. From the bottom up, we expect the Asean Financials sector to form the backbone of the region’s EPS strength.

The major banks are expected to generate above long-term average EPS growth, supporting earnings for the broader index.

In addition, a positive turn in China on lockdowns and government policy could become a big upside to the Asean equities, especially as many negative factors have already been priced in through lower equity prices and reflected in weaker economic data.

This should then lead to positive spillover effects on the Asean economy and equities in a variety of ways, such as greater tourism revenue from Chinese tourists (which make up 20 per cent of Asean tourist arrivals); stronger demand for Asean exports (China is the largest single-country trading partner of Asean); and easing of supply-chain bottlenecks and shipping delays.

While the Chinese pandemic situation remains very fluid, we reiterate that the risk-reward remains very much tilted towards a positive outcome for China. With these earnings tailwinds in mind, we believe it may finally be time for Asean equity earnings to see a stronger recovery. In 2020, we saw their largest YoY EPS decline in history (minus 34 per cent), resulting in an unprecedented EPS collapse to 10-year lows across many Asean equity indices.

The subsequent EPS rebound in 2021 was relatively lacklustre on an absolute and relative basis, and Asean continues to be one of the few exceptions where EPS has not fully recovered from 2019 to 2021.

The slow recovery in Asean equity earnings was due to the severity of Covid-19, which led to significant earnings uncertainties in the region. However, as we have highlighted above, pandemic uncertainties are easing while earnings tailwinds are present. Thus, we no longer expect earnings to lag behind and see a sustainable rebound over the next two years.

Most Asean countries have above-average full-vaccination rates.

Key risk – inflation and monetary policy

Despite our optimism over the growth recovery, we note that soaring inflation and tighter monetary policy within Asean will pose as key equity risks. Inflation amongst several Asean-5 countries has picked up significantly this year and is on track to exceed medium-term inflation targets set by their respective central banks.

Central banks have already begun to tighten policy (e.g. BNM’s [Malaysia] surprise rate hike in May), while others are feeling the increased pressure to hike rates, including Philippines which has signalled two rate hikes of 25bps each by Aug 2022.

However, while we expect Asean central banks to normalise policy quicker than expected, we believe the pace of tightening will unlikely be as urgent as the US. The Asean economic recovery remains fragile, unlike the US, and that means that Asean policymakers will likely be more mindful to not derail the positive growth momentum. Furthermore, Asean-5 CPI inflation remains far from record highs unlike in the US (Chart 10), and this is partially helped by a large number of price controls on food and energy prices as well as lower services inflation within Asean-5.

Cautiously optimistic on Asean equities especially as a reopening play

To summarise, we remain cautiously optimistic on Asean equities, especially as a play on the reopening theme observed across the region. We believe the reopening will have a notable effect on Asean equities due to the latter’s pro-cyclical tilt, while our expectation of the China situation improving should also have positive spillover effects on the Asean economy and equities.

Coupled with the fact that earnings have thus far only seen a lacklustre rebound from historical lows, we believe there is further room for a stronger and more sustainable rebound over the next two years.

With that in mind, investors should note that valuations for Asean equities are marginally expensive at the moment, trading at about a three per cent premium to its 10-year historical average.

These elevated valuations were the result of the historic earnings collapse described previously, but we expect multiples to look more palatable over time if our earnings forecasts materialise. Using our target PE ratio of 16 times, we forecast an upside potential of 21 per cent by end-2024.

Source: The Borneo Post

Asean: A region of reopenings and recovery

The global 5G network automation market is gathering momentum and expected to reach US$5 billion (about RM22.04 billion) by 2026 from approximately US$3.5 billion in 2021.

In a statement on Wednesday (June 22), Frost & Sullivan said with the 5G network moving to the cloud, the network is now software-based and requires automation to succeed operationally and financially.

Frost & Sullivan ICT industry principal Troy Morley said network automation is an essential part of 5G because it enables efficiency and cost savings for communications service providers (CSPs).

“While the entire 5G network will benefit from network automation, the most significant growth opportunity lies within the 5G RAN, where CSPs invest the largest portion of their capital expenditures and operating expenditures (opex),” he said.

Morley said with nearly 70% of infrastructure spend, slight improvements in the RAN due to network automation would lead to significant payback for CSPs, particularly concerning opex.

“Further, the new architecture of the 5G RAN has opened the market to many new suppliers bringing in specialists in machine learning and artificial intelligence,” he said.

Source: The Edge Markets

Global 5G network automation market expected to hit US$5 billion by 2026

The rise of e-commerce and the logistical nightmare created by the Covid-19 pandemic have caused a surge in demand for warehouse space in the United States, and big investment funds have taken note.

“It’s been a tremendous struggle to find the appropriate location for clients,“ said Michael Schipper of Blau & Berg, a commercial real estate specialist in New Jersey and New York.

Available space has been dwindling steadily for a year and a half, and the vacancy rate is now 3.4 percent, although developers delivered 90 million square feet of new warehouse space in the first three months of the year, according to commercial real estate firm Jones Lang LaSalle.

Demand is so strong that purchase prices have tripled or quadrupled in just six years in northern New Jersey.

Nationally, average rental costs have jumped 22 percent in two years, according to analytics firm Beroe.

“Demand for space from logistics and distribution activities driven by e-commerce industry” is the major factor in the US market, according to Beroe, which notes that demand has exceeded supply for 18 months.

In addition, unlike traditional storage sites, fulfilling online orders requires technologically advanced warehouses, said Mark Manduca, chief investment officer at GXO, a supply chain management company.

Beroe said this equipment, which requires massive investments, allows firms “to improve warehouse efficiency and to speed up warehouse activities to meet the same-day delivery demands.”

Pioneered by Amazon, other retailers were obliged to scramble to catch up to the new standard of immediate delivery set by the Seattle-based online sales giant.

In recent years, a lot of those companies have been rapidly ramping up their own e-commerce efforts, Manduca said.

“Those are the people that are really driving that demand for last mile warehousing,“ he said.

The demands of instant delivery have forced many sellers to acquire multiple storage locations to get closer to customers, especially in urban areas where real estate was already expensive.

The coronavirus pandemic accelerated that trend, as e-commerce sales surged by 56 percent between early 2020 and early 2022.

A correction coming?

Another pandemic effect was the logistical mess caused by Covid-lockdowns and health restrictions.

That revealed storage capacity “in the wrong place, supply chain issues, and more recently, inventory rebuilds that have kind of almost overshot to a certain degree,“ Manduca said.

To address those issues, he says, many companies are “now looking at facilities closer to home, which is naturally increasing the demand for warehousing,“ he said.

Amid the rise in demand, private equity firm Blackstone has invested heavily in the sector, and currently owns $170 billion worth of warehouses. It now rivals Prologis, the world’s number one.

“We’re also now seeing a surge in corporations increasing inventory holdings to mitigate supply chain issues” and are therefore looking for additional storage space, Blackstone President Jon Gray said in April.

Other private equity giants, such as KKR, Carlyle, Apollo or Sweden’s EQT have all bought sites to ride the wave.

But Schipper cautions that while the warehousing industry “has a long term positive trajectory, … I think that there needs to be a pause.”

“You cannot run up in parabolic fashion forever,“ he said, noting that the current tightening of credit conditions also could play a role.

One sign of a possible correction coming: Amazon’s decision to sublet or renegotiate the rent for 30 million square feet of warehouse space.

“You’re going to see demand for space go down and rental rates will stop going up at the pace that they’re going up. There’s just not any way around it,“ Ward Fitzgerald, chief executive of EQT Exeter Property Group, warned in the Wall Street Journal.

“They’ll continue their trajectory maybe 12 months from now, but … there’s going to be a correction.”

While demand could keep rising for some time, Schipper said, “The question really is how much? And for how long?

“I don’t think anybody knows the answer.”

Source: AFP

Warehouse business catches fire, boosted by pandemic, e-commerce

Source: The Edge Markets

SEA needs more incentives, financing plans for green investment

Global government IT spending is forecast to increase 5% year-on-year to US$565.7 billion in 2022.

In a statement on Monday (June 13), technology and consulting firm Gartner Inc director analyst Daniel Snyder said the last few years of enduring pandemic challenges have mobilised a wave of digital transformation activities in government organisations across the world.

Gartner said that in 2022, government IT spending is forecast to increase across all segments except internal services and telecom services.

It said continuing the trend from 2021, software is forecast to record the strongest growth across all segments in 2022.

It said as legacy modernisation continues to be a priority in government organisations, growth in the data center systems segment will continue to slow through the forecast period.

Gartner said governments continue to invest in critical application software that directly support end-user interfaces driving strong growth in this segment.

It said spending on telecom services is set to decrease in 2022 as governments reduce spending on expensive legacy systems in favour of digital service delivery models.

The firm said anything-as-a-service (XaaS) is gaining popularity across government organisations as it provides better return on investment, normalising IT spend over time, making budgeting for IT more predictable while avoiding the accrual of technical debt.

Gartner predicts that by 2026, most government agencies’ new IT investments will be made in XaaS solutions.

Snyder said the pandemic sped up public-sector adoption of cloud solutions and the XaaS model for accelerated legacy modernisation and new service implementations.

“Fifty-four percent of government CIOs responding to the 2022 Gartner CIO Survey indicated that they expect to allocate additional funding to cloud platforms in 2022, while 35% will decrease investments in legacy infrastructure and data center technologies,” he said.

Worldwide Government IT Spending, 2021-2022 (Millions of US Dollars)

Source: Gartner (June 2022)

Source: The Edge Markets

Global government IT spending to grow 5% to US$565.7b in 2022, says Gartner

Global fab equipment spending for front-end facilities is expected to increase 20% year-on-year (y-o-y) to an all-time high of US$109 billion in 2022.

In a statement on Monday (June 13), the US-based Semiconductor Equipment Materials International (SEMI) said this marked a third consecutive year of growth following a 42% surge in 2021.

SEMI in its latest quarterly World Fab Forecast report said fab equipment investment in 2023 is expected to remain strong.

SEMI president and CEO Ajit Manocha said the global semiconductor equipment industry remains on track to cross the US$100 billion threshold for the first time.

“This historic milestone puts an exclamation point on the current run of unprecedented industry growth,” he said.

By region

SEMI said Taiwan is expected to lead fab equipment spending in 2022, increasing investments 52% y-o-y to US$34 billion, followed by South Korea at US$25.5 billion, a 7% rise, and China at US$17 billion, a 14% drop from its peak last year.

It said Europe/Mideast is forecast to log record high spending of US$9.3 billion this year and, while comparatively smaller than outlays in other regions, its investments would represent a staggering growth of 176% y-o-y.

Taiwan, South Korea and Southeast Asia are also expected to register record-high investments in 2023.

In the Americas, the report shows fab equipment spending reaching US$9.3 billion in 2023, a 13% y-o-y rise following a 19% y-o-y increase in 2022, with the region retaining its fourth-place ranking both years in worldwide fab equipment spending.

Semicon

The SEMI World Fab Forecast report shows the global industry increasing capacity by 8% this year after a 7% rise in 2021.

Capacity growth is expected to continue in 2023, rising 6%.

The fab equipment industry last saw a y-o-y growth rate of 8% in 2010, when it topped 16 million wafers per month (200mm equivalents) — nearly half of the 29 million wafers per month (200mm equivalents) projected for 2023.

Over 85% of equipment spending in 2022 will stem from capacity increases at 158 fabs and production lines, a proportion expected to edge down to 83% next year as 129 known fabs and lines add capacity. 

SEMI said that as expected, the foundry sector, with a share of about 53%, will account for the bulk of equipment spending in 2022 and 2023, followed by memory at 33% in 2022 and 34% in 2023.

It said the two sectors also account for the largest capacity increases.

Source: The Edge Markets

Global fab equipment spending to hit record US$109 bil in 2022, says SEMI

Digitisation will be the main driver of economic recovery in Asean following the devasting Covid-19 pandemic, said World Economic Forum (WEF) panellist and QI Group executive chairman Datuk Seri Vijay Eswaran on June 13.

He noted that in 2021, the number of internet users in Asean grew by over 10% to 400 million people, and almost 70% of Asean’s population is now online — well above the global rate of 60%.

“The region’s digital economy is now valued at over US$100 billion (RM439 billion).

“However, for many Asean residents, expensive or poor internet quality or digital devices, lack of digital skills, as well as trust and security concerns prevent them from fully reaping their fair share of benefits from an inclusive digital economy,” he said in a statement.

As such, Vijay opined that Asean needs to upskill its workforce quickly to tackle barriers to digital adoption, and noted the urgent need for further upskilling and reskilling initiatives to ensure that the digital generation is equipped for a post-pandemic world and beyond.

“To drive digital transformation and to accommodate the new normal, businesses must quickly work with forward-thinking vendors or businesses that can successfully and securely facilitate digital transformation today and prevent obstacles tomorrow,” he added. 

Source: Bernama

Asean must upskill, reskill for digitalisation

The ASEAN region will continue to be a supportive and attractive investment destination in the long term as its young population promises a vibrant economy, backed by primary economic sectors that include commodities, plantations as well as oil and gas. 

UOB Asset Management Malaysia chief executive officer Lim Suet Ling said that being the fourth largest economy with over 600 million people, ASEAN has grown to be more educated and has an advantage as one of the biggest manufacturers in the global supply chain.

“And with the COVID-19 lockdowns in China, there is diversification (in supply chain) and I think Malaysia is benefitting from it especially on the electronic and electrical (E&E) side.

“On foreign direct investments (FDIs), we are relatively cheaper than China, thus we believe the FDIs will continue to come in for diversification,” she said in a panel session at the Invest ASEAN 2022 titled ‘Markets and Smart Money: Fight or Flight’ today. 

However, to enhance Malaysia’s position as a preferred investment destination, Lim hopes to see more Internet unicorns appearing or being listed.

She stressed that trade agreements among ASEAN countries could also be strengthened by forging deeper collaboration to create better investment opportunities. 

On investing, Lim advised investors be more defensive while staying cautious in their holdings for the time being amid a slowing down on interest rates hike expectation by the US Federal Reserve (Fed).

Lim also noted that they could move more towards utilities or assets that has regular income. 

“Other growth sectors include tourism and medical related stocks. But we are not only looking at bigger caps, but also the smaller and undervalued ones as we believe there are opportunities that are yet to be discovered,” said Lim. 

Maybank Islamic Asset Management chief investment officer Muhammad Riduan Jasni said in the same panel session that the performance of sukuk issuance is more resilient from bond as the growth for the shariah industry is overwhelming following the higher awareness among the Muslim countries.

“The sukuk performance is decent with the Islamic benchmark to outperform the conventional benchmark as the investment becomes more attractive.

“You can see a lot of demand coming from corporates, the pension funds, and this will definitely help drive growth for the industry,” he said.

Therefore, he said, the action will encourage the stability and growth of the Islamic investment industry in Malaysia.

Source: Bernama

ASEAN continues to be attractive for long-term investment

Global semiconductor industry sales were rose 21.1% year-on-year in April 2022 to US$50.9 billion from US$42 billion a year earlier, said the US-based Semiconductor Industry Association (SIA).

In a statement on its website on Monday (June 6), SIA said the figure was 0.7% higher than the March 2022 total of US$50.6 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 global semiconductor sales have increased by more than 20% on a year-to-year basis for 13 consecutive months, indicating consistently high and growing demand for semiconductors across a range of critical sectors.

“High global chip demand will necessitate more semiconductor research, design, and manufacturing in the years ahead, and we urge leaders in Washington to enact innovation and competitiveness legislation that ensures more of this chip production and innovation occurs on U.S. shores,” he said.

SIA said sales were up compared to April 2021 in the Americas (40.9%), Europe (19.2%), Japan (18.5%), Asia-Pacific/all others (18.1%), and China (13.3%).

It said month-to-month sales increased in the Americas (3.1%), Japan (1.6%), and Asia-Pacific/all others (1.2%), but fell slightly in China (-0.6%), and Europe (-3.3%).

Source: The Edge Markets

Global semiconductor sales rose 21.1% y-o-y in April to US$50.9 billion, says SIA

Members of the Asia-Pacific Economic Cooperation (APEC) are intensifying coordination to develop measures that promote the uptake of new-technology vehicles in a bid to meet climate commitments and to realise the APEC Putrajaya Vision 2040.

In his remarks at the APEC Automotive Dialogue, deputy director-general of Thailand’s Office of Industrial Economics Krit Chansuwan said in line with the bio-circular-green (BCG) economy model as part of APEC 2022 priorities, the region’s auto industry should seize the momentum and push ahead with its net zero and low emission commitment to contribute to economic recovery and address global environmental concerns.

“While electric vehicles have been the go-to solution for the auto industry to achieve a net zero or low-carbon future, we need to remember that each APEC economy is unique, therefore, we need multiple approaches to achieve our climate commitments.

“Both policymakers and industry players recognise the critical role of policy because without it, the industry will not be able to fast-track technology deployment and make the necessary transition,” he said.

He said APEC member economies have made notable progress in the past years in transitioning to electric vehicles through the redevelopment of regulatory regimes, common standards and targets to encourage the shift to a low-carbon-vehicles option.

“More needs to be done as member economies race to achieve their commitment of reducing global carbon dioxide emissions by 45 per cent, from 2010 levels, by 2030.

“Officials and industry experts deliberated policies to reduce the price of new-technology vehicles, looking at tax credits, subsidies and rebates, among others,” he said.

He added that officials and experts recognised the urgent need to incentivise innovation, research and development, manufacturing and recycling the components of new-technology vehicles such as batteries and semiconductors.

APEC officials and senior auto industry representatives convened in Bangkok last week for the APEC Automotive Dialogue to deliberate on the benefits of environmental and vehicle safety regulatory cooperation, convergence and harmonisation in advancing trade facilitation as well as promote connectivity in the region.

The APEC Automotive Dialogue is a forum for industry and government to discuss a broad range of issues that affect auto trade.

The dialogue will continue collaborating with other APEC groups such as the Energy Working Group and Transportation Working Group to identify and integrate new and emerging sustainable transportation and mobility technology and services.

Source: Bernama

APEC auto industry accelerates update of new technology vehicles

Leveraging advances in electronics and digital trade could support Southeast Asia’s recovery from the Covid-19 pandemic, according to Asian Development Bank (ADB).

In the report entitled “Post Covid-19 Economic Recovery in Southeast Asia”, ADB highlighted that the regional economy rebounded to 5.9% from a flat growth in 2020 and it projected an expansion of 4.7% this year.

“Recovery prospects in Southeast Asia are encouraging, but not without persistent risks, including heightened uncertainty from the Russian invasion of Ukraine and the evolving conflict, the emergence of coronavirus variants and the scarring effects of the pandemic through large employment and education losses, production disruptions and fragile business confidence, and declining productivity growth.

“Supporting industries with the competitive advantage to propel a green, resilient, and inclusive recovery will not only require sector-specific interventions by governments, but cross-cutting measures that encourage an enabling business environment, improved infrastructure, and stronger intra-regional linkages,” said ADB director general for Southeast Asia Ramesh Subramaniam.

Meanwhile, the report also highlighted that the outbreak has posed new challenges for the tourism industry and it constitutes approximately 20% of Southeast Asia’s gross domestic product.

ADB suggested restoring tourism demand through strong marketing campaigns, safer travel standards, more diversified tourism offerings, better paid and more skilled workers, and stronger crisis management response to build industry resilience.

On digital trade, ADB foresaw a strong growth potential in the region post pandemic.

“Much of the region’s digital trade now concentrates on digital marketplaces and information technology and business process outsourcing (IT-BPO), while software development is picking up in some countries.

“As demand for digital products and services grows, it is important to enhance digital connectivity, invest in logistics and distribution facilities, develop an IT–BPO road map, support skills development and training, and rethink digital regulations to protect consumers,” it said.

Source: The Edge Markets

Digital trade, technology could aid Southeast Asia’s recovery from the pandemic, says ADB

The United States’ (US) investments and trade in Southeast Asian (SEA) countries would be a boon for economic interaction, said Singapore Institute of International Affairs senior fellow Dr Oh Ei Sun. 

He said many SEA countries are looking to secure US investments during the two-day ASEAN-US Special Summit, especially after battling the aftermath of the COVID-19 pandemic in the past two years. 

“If the US is trying to make us (SEA countries) to be more pro-US, then I think more investments with the region will be a good move,” he said during Bernama TV’s ‘The Brief’ news programme today. 

Oh also said that the summit, slated to start on Friday (Malaysian time), will likely discuss China-US relations and the geopolitical tension between Russia and Ukraine. 

He opined that the US is likely to push the region to adopt a more stringent stand against Russia with regard to the war in Ukraine. 

ASEAN leaders, with the exception of the Philippines and Myanmar, are scheduled to participate in the special summit.

Subsequently, a Joint Vision Statement — which would underscore the commitments and aspirations to enhance ASEAN-US partnership in the interest of peace, stability, security and shared prosperity for all — can be expected following the conclusion of the high-level meeting.

The special summit marks the 45th anniversary of the ASEAN-US dialogue and the second special summit hosted by a US president in the US after then-president Barack Obama welcomed ASEAN leaders in California back in Feb 2016.

Prime Minister Datuk Seri Ismail Sabri Yaakob will lead the Malaysian delegation to the ASEAN-US Special Summit in Washington D.C. from May 12 to 13.

Malaysia is expected to garner RM14.62 billion in new investments from the US following the Trade and Investment Mission led by Senior Minister and International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali.

Source: Bernama

US investments in SEA countries creates better economic interaction – analyst

Global semiconductor revenue is projected to total US$676 billion in 2022, an increase of 13.6% from 2021.

Technology and consulting firm Gartner Inc research vice president Alan Priestley in a statement on Tuesday (April 26) said the semiconductor average selling price (ASP) hike from the chip shortage continues to be a key driver for growth in the global semiconductor market in 2022, but overall semiconductor component supply constraints are expected to gradually ease through 2022 and prices will stabilise with the improving inventory situation.

He said that overall, the outlook for global semiconductor revenue has been increased from the previous quarter’s forecast by US$37 billion to US$676 billion.

He said automotive applications will continue to experience component supply constraints — particularly in microcontrollers, power management integrated circuits and voltage regulators — extending into 2023.

Slowing growth in PCs, smartphones and server end markets is expected to gradually slow down the growth of semiconductor revenue as semiconductor supply and demand gradually comes into balance during 2022, he said.

Semiconductor revenue forecast, worldwide, 2021-2023 (billions of US dollars)

Source: Gartner (April 2022)

Chip shortage

Gartner said the chip shortage will continue to be a concern for the supply chain of electronics equipment in 2022 and will have different effects in major electronic equipment markets depending on different semiconductor device types.

It said most semiconductor shortages eased in PCs and smartphones as production moved into the off season combined with increased semiconductor supply into the market. However, some semiconductor device types will continue to be in shortage in the automotive supply chain through late 2022.

Priestley said although unit production of automotive vehicles will grow below expectation at 12.5% in 2022, semiconductor device ASPs are expected to remain high due to continued tight supply driving the automotive semiconductor market to double-digit growth (19%) in 2022.

“Automotive HPC, EV/HEV and advanced driver assistance systems will lead the growth in automotive electronics sectors through the forecast period,” he said.

Memory market

Gartner said the memory market will remain the largest semiconductor device market through the forecast period and is projected to account for 31.4% of the overall semiconductor market in 2022.

It said DRAM and NAND are expected to be in undersupply in the second quarter of 2022.

Gartner said the NAND market will enter oversupply in the fourth quarter of 2022, while DRAM is expected to move into oversupply in the second half of 2023.

The combination of megabyte shipments and higher annual ASPs this year will sustain revenue growth for both markets in 2022, with projected growth of 22.8% for DRAM and 38.1% for NAND.

Migration to 5G

Semiconductor revenue for smartphones is forecast to increase 15.2% in 2022, as 5G smartphone unit production is expected to grow by 45.3% in 2022, reaching 808 million units and representing 55% of all smartphones produced.

Aggressive migration from 4G to 5G from major smartphone chipset vendors has temporarily led to a shortage in 4G system-on-chip integrated baseband ICs which began in the second half of 2021.

Rising 5G-integrated baseband IC inventory will result in declining prices for 5G smartphones and accelerate the penetration of 5G further through the forecast period.

Source: The Edge Markets

Global semiconductor revenue to grow 13.6% to US$676b in 2022, says Gartner

Asian countries are moving in a swift and responsible manner in response to the call for a green transition arising from the steady stream of extreme climate events, according to a report released by the Boao Forum for Asia (BFA) on Wednesday (April 20).

By the end of 2021, 25 Asian countries had made net-zero pledges, said the BFA’s Sustainable Development: Asia and the World Annual Report 2022, reported Xinhua.

Aiming to enhance green governance, governments in Asian countries have taken measures including setting up high-level leading groups and committees overseeing the formulation and implementation of national net-zero strategies, defining decarbonisation goals and drawing up roadmaps to meet these targets, as well as establishing carbon emission trading systems, according to the report.

Asian countries sustained global mobilisation for green and sustainable finance despite the Covid-19 pandemic, as climate finance for Asia in 2020 accounted for around 50% of the global total, compared to 17% for Western Europe and 13% for the United States and Canada, the report said, citing the latest estimates from the Climate Policy Initiative.

The Asia-Pacific region ranked second in green bond issuance, accounting for 22.6% of the global total in 2021, while out of those bonds issued in Asia, 39% were denominated in the Chinese currency renminbi, according to the report.

Capital market solutions for green finance have also been developed in Asia, it said, highlighting the tightened regulatory requirements and standard-setting and the role of multilateral development banks in promoting green finance.

In terms of green technology, Asia-Pacific is a mature region in the global wind power market and Asia continued to drive new solar photovoltaic installations in 2020, the report said.

Asian companies are ambitious in the fight against climate change, with 440 of them signing up to the Science-Based Targets initiative, it said. These businesses have utilised multiple means of green transition including switching to renewable energy and setting sustainability governance structures.

Source: Bernama

Asia in action toward green transition, says report

Global sales of semiconductor manufacturing equipment in 2021 surged 44% year-on-year to an all-time record of US$102.6 billion from US$71.2 billion, said Semiconductor Equipment & Materials International (SEMI).

In a statement on its website on Tuesday (April 12), the association said the data is now available in the Worldwide Semiconductor Equipment Market Statistics (WWSEMS) Report.

SEMI said China claimed the largest market for semiconductor equipment for the second time with sales expanding 58% to US$29.6 billion to mark the fourth consecutive year of growth.

It said South Korea, the second-largest equipment market, registered a sales increase of 55% to US$25.0 billion, after showing strong growth in 2020.

It said Taiwan logged 45% growth to US$24.9 billion to claim the third position.

It said annual semiconductor equipment spending increased 23% in Europe and 17% in North America, which continues to recover from a contraction in 2020. Sales in the rest of the world jumped 79% in 2021.

SEMI president and CEO Ajit Manocha said the 44% increase in manufacturing equipment spending in 2021 highlights the global semiconductor industry’s aggressive push to add capacity.

“This drive to expand production capabilities extends beyond the current supply imbalance, as the industry continues to ramp up to address a wide range of emerging high-tech applications that will enable a smarter digital world with countless social benefits,” he said.

SEMI said global sales of wafer processing equipment rose 44% in 2021, while other front-end segment sales grew 22%.

It said assembly and packaging showed exceptional growth across all regions, resulting in an 87% market increase in 2021, while total test equipment sales rose 30%.

Annual billings by region in billions of US dollars with year-on-year change rates

Sources: SEMI and SEAJ, April 2022

Source: The Edge Markets

Global semiconductor equipment sales jumped 44% to record US$102.6b in 2021, says SEMI

Investment in artificial intelligence start-ups hit a record high of US$59 billion (about RM249.84 billion) in 2021, up from US$28 billion in 2020.

In a report on Monday (April 11), Crunchbase — which tracks trends, investments and news of global companies from start-ups to the Fortune 1000 — said venture investment in AI start-ups will only continue to rise in the next five years.

It said that is because AI has finally reached a tipping point where it is powerful and affordable enough to make a real economic impact on diverse industries.

Crunchbase said AI is a broad category, but generally encompasses all “intelligent” software that can learn from itself in some capacity.

It said this can include machine-learning platforms and the software used by robots, and self-driving vehicles to interpret the environments around them.

It said that for decades, AI had been developed and used by computer scientists to train all kinds of autonomous systems.

But it said what had changed today is that AI is no longer stuck in the lab as it is the backbone of fast-growing start-ups with the potential to become multibillion-dollar businesses.

Crunchbase said companies in industries as diverse as finance, retail, healthcare, food production, manufacturing, logistics and transportation are deploying AI to improve everyday business processes, automate their workflows and, sometimes, to introduce autonomous robots.

Source: The Edge Markets

Investment in AI start-ups hit record high of US$59b in 2021 — data

The International Data Corp (IDC) expects businesses in Asia Pacific (excluding Japan) to collectively spend US$32 billion (S$43.6 billion) on artificial intelligence (AI) in 2025, up from US$17.6 billion (S$24 billion) this year.

The banking industry is expected to drive the bulk of the AI spending as banks in the region increasingly leverage the technology for augmented threat intelligence and fraud analysis applications.

State/local governments will be the second-highest spender, focusing on public safety and emergency response, augmented threat intelligence, and prevention systems.

Professional services firms will also be investing heavily in AI in the next few years. The key focus area is augmented customer service agents, which help resolve customer issues. Smart business innovation and automation will optimise and streamline complex and repetitive business tasks to support organisational decision-making.

Chart: IDC

“Many of the changes caused by the pandemic will stay, and we expect the adoption momentum of practical AI use cases such as remote or contactless engagement to continue. In the long term, clear guidance on managing the associated risk factors of AI solutions will further boost the confidence level of buying organisations,” says Jessie Danqing Cai, associate research director for Cognitive Computing/Artificial Intelligence at IDC Asia/Pacific.

Vinayaka Venkatesh, senior market analyst at IDC IT Spending Guides for Customer Insights & Analysis, adds: “Increasing government regulations and mandates of AI’s trust, robustness, and its ethical use will need to be addressed by organisations. Customer-facing industries such as financial services, hospitality and tourism will take the lead in addressing these government mandates.”

Source: The Edge Singapore

AI spending in Asia Pacific to reach US$32 bil in 2025 — IDC

Surging oil, gas and power prices together with the European Union’s (EU) goals of becoming less dependent on Russian supplies and post-Covid-19 pandemic inflation will catapult global energy spending this year to US$2.1 trillion.

According to Norway-based independent energy research and business intelligence company Rystad Energy, a concern in energy markets was that the ongoing war in Ukraine will derail the energy transition, but the latest data suggests that spending in green energies will grow faster than in the fossil fuel sector.

In a statement on Thursday (April 7), the firm said that without the invasion, however, there would have been less growth in investments in oil and gas and the share of green energies in global energy spending would be slightly more than today’s 31%.

Rystad said upstream oil and gas spending was now projected to grow 16% — or US$142 billion — compared with last year as oil and gas producers around the world up their investment budgets to increase output.

It said for green energy in 2022, based on the current pipeline of projects, global capacity would grow at 250 gigawatts (GWac) within wind and solar, and lead green energy spending to grow by 24%, or US$125 billion.

The firm said another important factor pushing energy spending to new highs was the global inflation of material prices, labour costs and shipping rates caused by the pandemic and the sanctions imposed on Russia.

It said compared with 2020 levels, project costs in oil and gas had increased by between 10% and 20%, due largely to steel price rises and a tighter market among suppliers.

It said within renewables, lithium, nickel, copper and polysilicon — which are all important materials in battery and solar PV manufacture — had sent renewable project costs up by between 10% and 35% within the same time frame.

Rystad head of energy service Research Audun Martinsen said the world was now spending more on energy than ever before.

“The year 2014 was the last time we saw similar numbers. One can see a major shift in the amount of spending on green energy, which has increased, with a drop in expenditure on oil and gas.

“However, expenditure on other fossil fuels, such as coal, has remained constant,” said Martinsen.

Europe’s energy mix

Rystad said that sourcing fossil fuels from alternative providers to Russia was just a temporary solution as the EU harboured a clear goal of reducing the bloc’s dependence on fossil fuel energy in general.

It said green energy — through solar and wind power, coupled with hydrogen and CCS initiatives — would be key to improving energy security but also delivering on member countries’ energy transition goals.

Rystad said the European Commission in March unveiled a plan to make Europe independent of Russian gas and the Commission’s REPowerEU body had set out a framework to target a 45% share of renewables in primary energy by 2030.

It said the framework demanded an overall 1,600 GWac of installed capacity in Europe by 2030.

In 2022, based on the current pipeline of projects, global capacity would grow at 250 GWac, and lead to green energy spending to grow by 24%, or US$125 billion.

Source: The Edge Markets

Oil and gas to lead global energy spend to a record US$2 trillion in 2022, says Rystad

Global IT spending is projected to rise 4% year-on-year in 2022 to US$4.4 trillion (about RM18.56 trillion), according to technology and consulting firm Gartner Inc.

In a statement on Wednesday (April 6), Gartner distinguished research vice-president John-David Lovelock said this year is proving to be one of the noisiest years on record for chief investment officers (CIOs).

“Geopolitical disruption, inflation, currency fluctuations and supply chain challenges are among the many factors vying for their time and attention, yet contrary to what we saw at the start of 2020, CIOs are accelerating IT investments as they recognise the importance of flexibility and agility in responding to disruption.

“As a result, purchasing and investing preference will be focused in areas including analytics, cloud computing, seamless customer experiences and security,” he said.

Gartner said inflation impacts on IT hardware (e.g. mobile devices and PCs) from the past two years are finally dissipating and starting to spill over into software and services.

It said with the current dearth of IT talent prompting more competitive salaries, technology service providers are increasing their prices, which is helping to increased spending growth in these segments through 2022 and 2023.

The firm said software spending is expected to grow 9.8% to US$674.9 billion in 2022, while IT services are forecast to grow 6.8% to reach US$1.3 trillion.

Gartner said the rise of enterprise application software, infrastructure software and managed services in the near and long term demonstrates that the trend towards digital transformation is not a one- or two-year trend as it is systemic and long-term.

It said that for example, infrastructure as a service (IaaS) underpins every major consumer-focused online offering and mobile application, accounting for a significant portion of the almost 10% growth in software spending estimated for 2022.

Gartner expects digital business initiatives such as experiential end-consumer experience and optimisation of the supply chain to push spending on enterprise applications and infrastructure software into a double-digit growth in 2023.

The firm said the Russian invasion of Ukraine is not expected to have a direct impact on global IT spending.

It said price and wage inflation compounded with talent shortages and other delivery uncertainties are expected to be greater impingements on CIOs’ plans in 2022 but will not slow down technology investments.

Lovelock said CIOs anticipate having the financial and organisational ability to invest in key technologies throughout this year and next.

“Some IT spending was on hold in early 2022 due to the Omicron variant [of Covid-19] and subsequent waves but is expected to be cleared in the near term.

“CIOs who keep their eye focused on key market signals, such as the shift from analog to digital business and buying IT to building it, as well as negotiate with their vendor partners to assume ongoing risks, will fare better in the long term.

“At this point, only the most fragile companies will be forced to pivot to a cost-cutting approach in 2022 and beyond,” he said.

Worldwide IT spending forecasts (millions of US dollars)

Source: Gartner (April 2022)

Source: The Edge Markets

Global IT spending to reach US$4.4 trillion in 2022, says Gartner

Policy reforms that improve tax collection and increase revenue can help Asian economies to achieve sustainable and inclusive economic growth.

Asian Development Bank (ADB) director of Macroeconomics Research, Abdul Abiad said such reforms must be carried out on a case-by-case basis, and in ways that do not stifle growth or create undue burdens on taxpayers.

“Developing Asia’s ageing population will require higher spending on pensions and healthcare while rising affluence will boost expectations for more and better public goods and services.

“Vast investments in clean energy are needed to tackle the threat of climate change; to meet these demands and others, countries will need to draw on the full range of private and public financial resources,” he said during the Asian Impact Webinar on Asian Development Outlook 2022, today.

He said solutions for governments to consider include a more efficient collection of value-added taxes, reforming tax incentives and bringing more businesses into the formal economy, as well as optimising personal income and property taxes.

According to ADB, with the reforms, developing Asia’s economies could increase tax revenue by an average of three to four percentage points.

For example, making it easier to register a business and lowering transaction costs could bring more small businesses into the formal economy, thus enhancing tax collection.

Abdul noted that in Southeast Asia, micro, small, and medium-sized businesses account for 98 per cent of all enterprises and 41 per cent of gross domestic product (GDP) as of 2020.

“Governments can also improve the collection of taxes from Asia’s burgeoning trade in digital services, which have more than tripled since 2005 to US$1.4 trillion (US$1=RM4.22) in 2020,” he said.

He also added that carbon pricing instruments and fossil fuel taxes have been proven to reduce pollution, and taxes on alcohol, tobacco and unhealthy food and drinks can raise revenue by up to 0.6 per cent of the GDP while leading to better health outcomes and reducing medical costs.

Source: Bernama

Policy reforms enable Asia to achieve sustainable, inclusive economic growth

Global semiconductor industry sales rose 32.4% year-on-year (y-o-y) in February to $52.5 billion from US$39.6 billion a year earlier, said the US-based Semiconductor Industry Association (SIA).

In a statement on its website on Tuesday (April 5), SIA said the figure was 3.4% more than the January 2022 total of US$50.7 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 global semiconductor sales remained strong in February, increasing by more than 20% for the eleventh consecutive month on a y-o-y basis.

“Sales into the Americas continued to outpace other regional markets, increasing by 43.2% y-o-y in February,” he said.

SIA said that in addition to the year-to-year sales increase in the Americas, sales were up compared to February 2021 in Asia-Pacific/all others (41.4%), Europe (29.3%), China (21.8%), and Japan (21.6%).

Month-on-month sales increased in Asia-Pacific/all others (18.6%) and Europe (1.4%), but fell slightly in Japan (-1.3%), China (-2.3%), and the Americas (-3.0%).

Source: The Edge Markets

Global semiconductor sales rose 32.4% y-o-y in February to US52.5 billion, says SIA